2 0 0 6 - 2 0 0 7 I N A U G U R A L R E P O R T S A L T R I V E R F I N A N C I A L S E R V I C E S I N S T I T U T I O N

1 MISSION STATEMENT

Empowering

All Generations

of the Salt River

Pima-Maricopa

Indian Community

through Financial

and Educational

Services Delivered

with Integrity

and Excellence.

MESSAGE FROM THE SRPMIC PRESIDENT

Welcome to the Inaugural Annual Report for Salt River Financial Services Institution (SRFSI).

When SRFSI was funded by the Salt River Council, our goal was to bring financial education and funding

to our Community. We knew that we needed both elements so more of our members could own their own

homes and start and be successful with their own businesses. We also wanted to stop predatory lending

and give people the knowledge to make the best financial decisions for themselves and their families. In

short, we hoped that SRFSI would change lives.

As the following pages show, SRFSI is well on its way to exceeding our goals. Much of this success is due to the excellent Board of

Directors that oversees the institution, and the professional staff that supports SRFSI. Since its inception, this institution has attracted

outstanding individuals who have a vision for service.

It is exciting that so many Community members have sought out SRFSI, taking classes at SRU and applying for and receiving both

home and business loans. In the future, we hope that many more Community members will turn to SRSFI and its resources, both

to buy homes and to start and expand businesses. One of our long-range goals is to encourage and support Salt River community

members to grow our own businesses so that, together, we can create a stronger and more diversified economy that serves our

individual members and our larger Community.

Congratulations to SRFSI!

Diane Enos

President, Salt River Pima-Maricopa Indian Community

MESSAGE FROM THE SRFSI B O A R D C H A I R 2

It is an honor to share the Inaugural Annual Report for Salt River Financial Services Institution (SRSFI),

a non-profit lending enterprise of Salt River Pima-Maricopa Indian Community (SRPMIC). This

organization was formally organized in 2006 but the idea had been a dream for many years and the

culmination of various pilot programs. SRFSI serves the enrolled Members of the Salt River Pima-

Maricopa Indian Community to build, maintain and prosper financial self-sufficiency through mortgage

and business lending with a firm foundation forged in financial education. These critical services and

lending capital for the membership of the SRPMIC bring forward new opportunities for entrepreneurship

and building homes for families. Since SRFSI’s inception on April 5, 2006, 16 families have built new homes

or remodeled current homes, 2 business owners have secured lending capital and 438 Community Members have engaged in financial

education efforts.

The accomplishments and organizational development for SRFSI would not be possible without the consistent and constant support of

the Salt River Pima-Maricopa Indian Community Council, the SRFSI Board and the dedicated staff of the organization. Additionally,

there are many partners throughout the Valley of the Sun and across the country, both in the lending community and non-profit sector.

These partners have given their time, treasures and talents to the development of SRFSI.

Looking toward the future, SRFSI is committed to adding new lending products and financial education programs to serve the enrolled

members of SRPMIC as well as attracting new and needed sources of funding. This is an ambitious agenda, but through the long history

of people-focused services, we have already accomplished so much.

The Board and staff of SRFSI wish to share our first formal efforts to create and develop an organization that brings lending resources

and financial education to the people of the Salt River Pima-Maricopa Indian Community.

Respectfully,

Patricia Tate

Chairman of the Board, SRFSI

Vice President and CFO, Casino Arizona

F I N A N C I A L E D U C AT I O N3

Our program: Financial Education – Salt River University ... the key to your financial future.

* BNC = Building Native Communities

S A LT R I V E R U N I V E R S I T Y ( S R U )

Partners and Departments

Money Management

Money Management

University Express

Financial Analyst Services

Personal Financial Review

Budget & Bill paying

Review

Credit Review

Train the Trainer – services for the

facilitators of SRU

Topics range from all areas within the university

Lunch and Learn

Workshops

Informational Workshops

KidsK - 6

Teens7-12

Boys & Girls ClubMoney Management

Workshop

Beginning – Money Matters

(3 weeks)

Intermediate – BNC - Financial

Skills for Families

(6 weeks)

Home Ownership

Welcome Home

Workshop

Home Ownership Academy

(6-8 weeks)

College of Business

So...You Want to Start a Business

Workshop

Business Certification

Program (11 weeks)

Vehicle Ownership

Thinking of Buying a Vehicle

Workshop

Vehicle Ownership Academy

(3-4 weeks)

Advanced –BNC - Investing for the Future

(6 weeks)

W h a t p a r t n e r s a r e s a y i n g a b o u t S R U : 4

Vickie K. Oldman-John

SRFSI is a premiere example for other national groups who are trying to

start their own financial education programs. What I love about SRFSI is

that they offer training sessions for all levels – from orientation where you

can test the waters to more advanced sessions, like “Investing 101”.

SRFSI has learned that having resources and an excellent curriculum can

only get you so far, but a key element to having successful trainings is having

the right trainers for the classes. I share with various native groups that,

at one point, SRFSI was a vision. It started out as a one-man team from a

housing organization. They hired more people; their vision grew, and created

the Salt River University model that works for their community. This is also

another best practice that SRFSI did; see what is working with other groups

and at the national scale, then bring it home and tailor for the community.

SRFSI is live testimony of a vision come true. Starting, nurturing and sus-

taining a financial education program take passion, patience and commit-

ment. It is possible; it can happen.

SRFSI is one of a handful of Native CDFI’s that has financial education in

place and is operational. Fortunately, SRFSI is always willing to share its best

practices, which is what we should all be doing – sharing what we’ve learned,

what worked and didn’t work, so others can get their programs going.

Vickie K. Oldman-John, Principal Kitseallyboy Consulting

Kitseallyboy Consulting is a 100% native-owned business that provides strategic planning, technical assistance, training and facilitation services for tribes and tribal organizations, community action groups, and non-profit organizations.

Elsie Meeks

SRFSI has institutionalized financial education

better than almost any CDFI we have worked with.

It’s important that people understand how to man-

age their budget and SRFSI has really taken this

to heart. It created the whole Salt River University

(SRU) with that in mind. While there are plenty of

tribes that have provided per capita to their mem-

bers, few have put tools in place to help individual

tribal members build assets, along with their in-

come. SRU does education in such a thoughtful way

that it really is the model for other tribes.

The Salt River Council was very wise in capital-

izing SRFSI, and SRFSI has been equally wise in

taking the strategies and lessons from other CDFI’s

seriously and creating its comprehensive program.

SRFSI understands that having income doesn’t nec-

essarily create assets. But creating assets and wealth

is the way we can take care of our communities.

Elsie Meeks President and CEO of First Nations Oweesta Corporation

Oweesta provides technical assistance to create Native community development financial institutions (CDFIs) which, in turn, assist individuals, businesses and organizations with financing and technical assistance for business, homeownership, financial education and other programs.

Sarah Dewees

We approached SRFSI several years ago because

of their solid reputation and good work and then

we worked collaboratively to create our program.

The project we wanted to develop is to help people

learn about investing and managing their money,

especially when people have per capita payments or

large windfalls. We gave SRFSI a grant to pilot an

investor education program for two years. We knew

SRFSI had a strong financial education program in

place and we really liked the Salt River University

model, where people can come into the university

at their level and choose the classes they need, from

beginner to advanced curriculum. I am not aware

of another financial education program that is

this extensive. The SRU model really pulls it all

together. We are hoping to be able to replicate this

model for other Native American communities.

I think the world of these guys; they really are

leaders in the field.

Sarah Dewees, Director of Research First Nations Development Institute

For more than 27 years, First Nations Development Institute has worked to empower Native people to make informed choices and direct their own economic future.

F I N A N C I A L E D U C AT I O N W h a t C o m m u n i t y m e m b e r s a r e s a y i n g a b o u t S R U :5

Salt River University (SRU)

• Founded June 2007.

• Curriculum created to meet the specific needs of SRPMIC and SRFSI lending products.

• Course design– basic, intermediate and advanced.

• Resource and partner with other SRPMIC departments and divisions.

Statistics:

• 11 course facilitators.

• 29 courses including Money Management Academy, Home Ownership Academy, Business

Academy, Vehicle Ownership.

• 500 participants.

Watch for:

• Stepping Stones Academy, a training

program for renting to home ownership,

is coming soon at SRU.

Leland Fulwilder

I’ve worked with tribes around the entire country and this is the first time I have

seen a tribe take the initiative on financial education and have a dedicated staff

committed to providing this for tribal members. All tribes say they want to educate

their members on finances, but no one else has implemented it to this extent.

In my class, we talk investing 101. The key is for Community members to learn the

basics of investing. I talk in the long-term, reminding them that we have been in

gaming less than 10 years, but have been a tribe for thousands of years. I try to

show them what the impact is if they put away even $1,000 a quarter. The biggest

misunderstanding I see is that people think if they start investing now they will

make the ‘big bucks’, so I try to give them realistic expectations. I hope that they

come out of my class knowing what is a good investment and what is a bad one, and

are familiar with some of the financial jargon.

I am impressed how SRU is creating the opportunity to build a strong foundation

for future generations to have financial freedom. I’m already teaching my daughter,

who is one year old, about finances. I would hope that, in the future, with more

financial education we could have an entire community that puts pressure on inspir-

ing people to save money and invest it rather than on spending it.

Leland Fulwilder SRPMIC Community Member Financial Manager

6

Glenda Frederick

I took my mom to the SRFSI grand opening and I knew we were going to win! Her

name was the third draw – the other two people were not there – but she won the big

TV and she loves it.

Since the program started, I

took several classes, one was on

how to buy a car, another was

on personal finances, and the

third was about investments.

I have some investments and

I wanted to know that I am

doing it right. I tell other people

that they should find out about

financial education and they

say they know about finances and investments. But I tell them that they may think

they know, but they don’t.

I tell other people in the Community that they really should take these classes. The

programs I took were held during my lunch hour and were so convenient to my work.

And the handouts were excellent. All the classes were very informative, especially the

one that told us about how to buy a car. Being a single person, this was especially use-

ful. Next time I go to buy a car, I will have my financing set and have a budget. I will

tell them that this is what I have to spend. When I think about how I bought cars in

the past, they sure saw me coming. Now I know how to beat them at their game.

Glenda Frederick, SRU student Buyer, Casino Arizona

H O M E O W N E R S H I P7

Our Program: Helping Community members realize their dreams of owning a home of their own.

• 2006 SRPMIC Housing Division, Homeownership Staff joined SRFSI.

• Tenured lending services of SRSFI are individual and personal.

• SRSFI is committed to the “Forever Home”. SRPMIC homes must withstand the test

of time because they are built for generations to enjoy.

• SRSFI homes are encouraged to be built with environmental sustainability in mind.

• Each SRSFI home loan experience is unique to each family’s individual needs.

• SRSFI supports local native contractors that support native preference in their hiring

practice.

• Promotes home loan products that meet specific needs of the Community including

affordable housing, custom built homes and sustainable living.

Sustainable Living – Where Red & Green Meet at SRFSI

The Concept – Healthy Forever Homes

Indigenous people have lived in harmony with the environment from time

immemorial. There was a relationship and the connection to the earth that was

respected. It has only been recently that this is no longer so. Because local natural

resources were used in traditional housing, structures were healthy for the inhabitants

and had a minor impact on the environment. Today, many of our building materials

contain chemicals, have been treated with chemicals, have been harvested improperly

and contain large quantities of embodied energy. These practices do not complement

the philosophy of native peoples. Yet it is possible to take care of the earth, meet our

needs for housing, and ensure that our grandchildren’s children will inherit a healthy

environment. The answer? Build a sustainable, forever home.

This is the goal of the SRSFI Green Building program. Through it, Community

members are given options so they can make a decision to have a healthy home. To

help them make their decisions, SRFSI continually researches new methods to help

8

attain sustainability. From wall systems to non-toxic paint to permeable driveways,

SRSFI evaluates vendors and products and fosters partnerships with the forever healthy

home in mind.

The Process - SRSFI believes that educating the client, contractor and other vendors is critical in fostering Healthy Forever Homes.

• Begins with SRSFI approving a client for a new home or remodel project.

• Continues with giving the client information about current construction practices,

products and alternatives for their home so they can begin to make choices that are

right for them.

• Client is invited to think beyond present needs, e.g. how to design a home now to meet

future needs such as handicap accessibility.

• Client is encouraged to consider energy needs/bills of a Forever Home and how to

address future bills in present-time.

Example:

Typical structural wall system: wood frame construction.

Forever healthy home option: Insulated Concrete Form (ICF) wall system that is

polystyrene block, stacked and filled with rebar and concrete.

Benefits of ICF vs. wood frame construction:

• Superior insulation/energy efficiency.

• Approximately 9 times more structurally durable.

• Far more resistant to fire.

• Noise-resistant (great sound barrier).

• Greatly reduces chances of termite infestation.

• Product is available in local markets which expedites delivery of finished product. Therefore, the product contains less embodied energy and has a smaller carbon foot-print, since less fossil fuels are used and less carbon is emitted into the atmosphere.

• Partners support Healthy Forever Home concept.

• SRSFI maintains a list of interested contractors. The Homeownership Services Department offers informative/educational sessions for contractors on new products

and eco-friendly building materials.

• On-going technical support provided to contractors as needed during construction.

Statistics:• 25 mortgages approved FY 06 - 07.

Watch for:• “Green” mortgages – a loan product to support our sustainability program. Coming

soon at SRSFI Home Loans.

W h a t h o m e o w n e r s a r e s a y i n g a b o u t S R S F I H o m e O w n e r s h i p P r o g r a m :9

Bobbie Carlos

In 1979, we moved into the HUD house that we had qualified for. Though it was a Housing Project house, I always wanted it

to reflect me and my family and, years before, had sketched out on graph paper what I wanted to do. So, in 2006, with a home

that had long been paid for and our own lending institution available, I filled out an application for a loan to remodel our

home. I went through the process and was approved. I tell people if I can do it, you can do it. I could not have gotten this kind

of deal from an outside lender. The staff really helps you through this.

Most Community members wouldn’t dream that we could actually qualify for a loan to do something like this! I can relate to

the old experience, when we only could qualify for a HUD house. That process was so regulated. You had only two floor plans,

at most, to choose from, and then maybe one or two choices for everything else. This time, when I was told to pick my colors,

I was given a three- inch thick book of color sticks. I picked everything – interior and exterior colors, plumbing fixtures, tiles,

flooring and carpet. I was like a kid in a candy store. The contractor did a color board of what I had selected so I could be

sure these are the colors I want. I could not believe they were asking me what I wanted, not telling me. My remodel doubled

the floor space to a little over 2,000 square feet and adding a double carport, den and master suite. I achieved the openness I

wanted and, after twenty-eight years, a driveway from the carport all the way to the street! I wanted to incorporate something

about us into our home. Something that identified where we are from, so the contractor helped me bring in something reflec-

tive of the lands in which we live. All my cabinetry is saguaro rib-faced. The common living area also has the rib trim above

the fireplace and as screening down a hallway. The area seems to say, “Yes, there are a bunch of O’odham that live here.”

My whole focus was to create space for everybody in my family to be comfortable together. In my old house, when we got

together, we took shifts at dining table. With the help of SRSFI, I created our own dream home – not just for me – but for my

whole family. It reflects who we are, what we like to do.

Bobbie Carlos, Assistant Community Manager & Community Member

W h a t h o m e o w n e r s a r e s a y i n g a b o u t S R S F I H o m e O w n e r s h i p P r o g r a m : 10

Ray Martinez

I had a house in Mesa and I sold it to build one on the Community. I took the SRFSI homeowner’s course in 2005 and

it helped me to know what I would be dealing with and working with, that I would have the benefit of the Public Works

Department, for example. From when I first went to the course to be qualified to get the key to my house took only six to

nine months. The process was easy and fast, especially when compared to my other experience with my house in Mesa. With

my new house, we doubled our square footage. We went from 1,400 square feet to about 2,800 square feet. We have four bed-

rooms and a separate game room and we have an attached mother-in-law quarters. Part of the nice thing is that the people

we worked with took us through different model homes and helped us piece together what we wanted. We were introduced

to contractors and we decided who we wanted to use. We chose Villapondo Custom Home Builders and found them great

to work with right from the start. One of the good things he did was bring his architect with him to our meetings. He was

open to our ideas, and because of him, we were able to squeeze in extras ... like central vacuum, water softening system and

security cameras.

We are really happy. The whole education process was huge for us. Without it, I wouldn’t have known how to get started.

My other house was a model house. Here we started from scratch. The course showed us how to budget until the last penny

was gone. We learned about options and upgrades, and we have a lot of upgrades. We insulated the whole house not just for

heating and cooling but also to soundproof it so we don’t hear any outside noise. We looked at many environmental options

and we have bamboo flooring upstairs. My wife works for a graphic design firm and wants to add solar. We could not get

this in the budget but hope to add solar panels later. We got good ideas from our contractor how to design the house so it

can be handicapped accessible for us down the road when we get older. I’m 28 now but we are thinking ahead. We plan to be

here forever and pass this house on to our children. Right now, we have one child. Our baby is 7 months old. So far, she has

dibs on the house!

Ray Martinez, SRPMIC firefighter

B U S I N E S S S E R V I C E S & L O A N S11

Our program: Providing SRPMIC with loans and education to help Community members start, grow and expand their businesses by providing a program of education, loans and support.

• Original 5 week Business Certification Program expanded to 11 weeks. This

educational program is designed to help business owners succeed, knowing that

60-65% of new businesses fail within the first two years.

• Attracted more than 20 new and aspiring businesses owners to the educational

program. Businesses represented include sports bars, landscaping, native magazine,

child development center, concierge service for home-bounds, catering, mobile/

private bartending, filmmaker, locksmith, nail technician, Mary Kay Cosmetics/

Tupperware manager, and competitive cheerleading training gym.

• Created flexible and creative loan products with guidelines that allow graduates of

the business certification program to qualify for flexible guideline micro loans from

$500 to $2500 to jump start business, with low monthly pay backs.

• Provides on-going support to ensure and monitor success. SRSFI makes the

resources and referrals of the Community available to its clients for a variety of

services.

Statistics:

• 3 loans approved.

• 11 week Business Certification Program.

• 17 Community members currently enrolled and working on business plans.

Watch for:

• Mentoring program – Working closely with Salt River Business Owners Associa-

tion, this program will provide additional support for new and expanding business

owners.

• Entrepreneurial camp for kids – Partnering with ASU American Indian Policy

Institute and ASU School of Business, this camp will bring the world of business to

SRPMIC high school students.

W h a t b u s i n e s s o w n e r s a r e s a y i n g a b o u t S R S F I B u s i n e s s L o a n P r o g r a m :

Kathy Kline

My business is an errand/concierge service which is in the planning stage.

I hope to get it up and running next year. I have gone to Community

College where I took marketing and business classes which prepared me

for the working world. But I had never gone through an intensified small

business course. Salt River University attracted me because it is focused

on Community-owned businesses. It is different to own a business on the

Community; there are different things you need to think about, based upon

what your business involves. For example, you may need to think of what

opportunities there are to lease space on the Community.

W h a t b u s i n e s s o w n e r s a r e s a y i n g a b o u t S R S F I B u s i n e s s L o a n P r o g r a m : 12

The first time I went through a busi-

ness course at SRU, they helped us with

the business plan and I do have my

plan pulled together. I took the certifi-

cation program because there are more

speakers and it’s more specific. Just to

be given the opportunity to have these

business classes free of charge is great.

It was a good surprise to find they

brought in people from the Community

to talk to us. We had a representative

from the legal department who talked

to us about what you need to know

to have a business on the Community

from a legal perspective. I’ve heard

others in the classes say that they have

been equally impressed.

I have already recommended the

business certification program to my

sister who wants to start a child care

business for Community members and

employees. She hopes to have a place

on the Community where parents can

have lunch with their children.

Kathy Kline Community Member

Julia Kohl

I opened Endurance Training Center, which coaches children for the competitive sport of cheerlead-

ing, a year ago July. At our gym, first, children learn the basics and tumbling. Then we move into

choreography to compete for titles. I gave myself three years to meet my goal of coaching 25 kids

and I’m halfway there. I want people to know that competitive cheerleading is a year round sport.

Education is key for me. Scholarships are offered for this sport.

A lot of our business is word-of-mouth and we are starting to see kids returning and referrals. We

work with children from ages three up, learning tumbling and advanced tumbling and then going

into choreographed routines. But we also help our children set personal and team goals. We make

sure that they have their homework with them so they can work on it while they wait for their class.

They also learn time management and how to be uniformed. They wear a certain pair of socks

and wear their hair a certain way. They learn to follow rules. I have strict standards and keep our

routines age-appropriate. My kids do not wear makeup or half-tops.

Cheerleading is in our family’s blood. All of us in my family are involved in this. I have been

performing since I was five years old – tap, ballet, African, Mexican folk – and am a credentialed,

certified Level Five cheerleading coach by the USASF . I’m one of the first coaches to get this

certification in Arizona. While there are over 25 gyms that offer training in the Valley, we’re the

only one that is centrally located.

I was the second person to receive a business loan from SRFSI. I called the day after they opened. SRFSI has been very understanding;

they want to make every business successful. I took a business course and wrote a business plan. I also took an SRU marketing class. I

appreciate the new ideas I have gotten and also the opportunity to network with other Community-owned businesses. I hope to be able

to take more SRU classes. But for now, I am working at my ‘day job’ from 5:30 a.m. to 3 p.m. and then come to the gym from 4:30 p.m.

to 8:30 p.m. every day. I’m fortunate that my two coaches are volunteering. Once we reach our enrollment goal, I do plan to pay them.

I really appreciate the good terms of this SRFSI loan so I can realize my dream.

Julia Kohl, Community Member

Endurance Training Center

14

Partners: Financial Assistance (FA) / Technical Assistance (TA) support: Salt River Pima-Maricopa Indian Community (SRPMIC)

Tribal Council and Community Support

Treasurer’s Office

Housing Division

Community Development/Economic Development Department (CDD/EDD)

Engineering Construction Services Department (ECS)

CDFI Fund

Miracle House Foundation

FINRA

Tides Foundation

ANAC Arizona Native Asset Coalition

First Nations

Oweesta

National Bank of Arizona

TruWest Credit Union

Community Housing Resources of Arizona (CHRA)

Opportunity Finance Network

BIA – Bureau of Indian Affairs

Indian Health Services

Building / Contracting Partners:Salt River Materials Group

Caroma

Border Construction Specialties (ICF building product)

Scottsdale Green Building Program

Salt River Project

Contractors

Villalpando Custom Home Builders

AD Procoat

Geronimo and Sons

AP Builder

AuAuthm Ki, Inc.

Board of Directors Patricia Tate • Board Chair

Ed Celaya • Board Vice-Chair

Frances Kauakahi • Treasurer

Rosa Cruz • Secretary

Margaret Rodriguez • Member

Anna Lee • Member

Deanna Scabby • Council Liaison

Cheryl Scott • OGC Liaison (non-voting)

Stacey Gubser • Board Liaison (non-voting) SRPMIC Community Development

Mark Belanger • Board Liaison (non-voting) SRPMIC Housing Division

Tony Farese • Board Liaison (non-voting) SRPMIC Office of the Treasurer

Dawn Yazzie-Howard • Board Liaison (non-voting) as Treasury Representative for Mr. Farese

Loan Review CommitteeBarbara Boone • Alliance Bank

Margie Wilson • Choice Mortgage Solutions, Inc.

Frances Kauakahi • Board Liaison

StaffBillie N. Spurlin, II • Executive Director

Cortasha Begaye • Executive Secretary

Lisa Deer • Homeownership Services Manager

Donna Cordova • Finance Manager

Shelley Mowry • Business Services Manager

Mikaela Jones • Home Construction Coordinator

Jenny Yazzie • Financial Education Coordinator

Tina Wood • Senior Loan Specialist

Elena Tarango • Records Specialist

8800 East Chaparral

Suite 240

Scottsdale, Arizona 85250

480.850.5460 (phone)

480.850.4320 (fax)

10,177 East Osborn Road

Building #10

Scottsdale, AZ 85256

www.srfsi.com

Salt River Pima-MaricopaIndian Community

E Printed on Evergreen 100% recycled paper with soy inks.