SOMERSETT OWNERS ASSOCIATION2014 Operating and Reserve

Fund Budgets

Presentation to HomeownersOct. 10, 2013

2013: A Year of Transition

• Developer turns over Somersett Owners Association control to homeowners on Jan. 1, 2013

• 5 homeowner board members elected

• Strategic Planning committee formed

• Existing Finance and Communications committees re-staffed with homeowner volunteers

• Homeowner survey conducted

Somersett Owners Association

Our Vision

It's Great to be Home defines Somersett. We care for one another and respect the diversity of all our residents

and their recreational interests, their safety, and the property values of their neighborhoods. We are the

premier planned residential community in Reno.

Our Mission

To preserve and enhance the quality of life of our community through the prudent stewardship of our

shared amenities and common areas.

Somersett Owners Association Board of Directors

Tony Fakonas – President; Curtis Chan – Secretary; Ray Lee –Treasurer; David Hughes – VP; Danielle Kirby - VP

Strategic PlanningChuck Walker; Rob

Morrison; Ed Williams; Beverly McDowell;

John Hetz

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Aesthetic GuidelinesSeth Padovan; George

Trowbridge; Steve Thomsen; Rachel Hart;

GK Rep

Community StandardsTony Fakonas; David

Hughes; Glenda Powell; Tiffany Roland

CommunicationsRob Duca; Jim Haar; Dave

Nisenfeld; Shannon Dressel; Bill Pollard; Julie Stoik;

Bryan Walker

Finance & BudgetRon Sobrero; Steve

Spear; Mike Slattery; Joe Fadrowsky;

Dan Kanyr

Election OversightLinda James; Glenda

Powell; Terry Retter; Jim Haar

COMMITTEES

Committee Actions• Strategic Planning Committee –

– Vision & Mission statements created and adapted by Board– Other area planned communities visited– Homeowner survey development

• Communications Committee –– Homeowner survey development & vetting– New resident orientation process developed

• Finance Committee –– Monthly review of SOA financial condition– Recommendations to Board on exercise equipment purchase vs. lease

and reserve funding– Major service contract review and accountability process developed– Creation of 2014 operating and reserve fund budgets

• Election Oversight Committee –– SOA Board candidate night ground rules, questions and moderator– Vote count process and verification

First Service Residential Nevada –Somersett Site Management Team

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Melissa RamseyAMS®, CMCA®, CPO®

Community Manager

Sean Stapleton

Assistant Community

Manager - Compliance

Lauren Stemmler

Assistant Community

Manager – Lifestyle

Jeanette Metz

Private Events Director

Your Private Event Planner

Melissa Hook

Program Director

Your Activities Planner

Blake Lederman

Sports Director

Your Sports & Fitness Planner

Ron Eckhardt

Maintenance Supervisor

2014 Assessments will remain the same

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Monthly Assessments: 2014 2013 2012 2011

Common / Canyon 9 $82.00 $82.00 $84.00 $84.00

The Club at Town Ctr. $74.00 $74.00 $75.00 $75.00

Active Gate areas $64.00 $64.00 $72.00 $77.00

Inactive Gate areas $52.00 $54.00 $58.00 $55.00

Somersett master association assessments:

Sierra Canyon * $82.00 $82.00 $84.00 $84.00

other Somersett * $156.00 $156.00 $159.00 $159.00

Active Gate areas $220.00 $220.00 $231.00 $236.00

Inactive Gate areas $208.00 $210.00 $217.00 $214.00

* Owners in Sierra Canyon, The Vue and Village at Town Center pay additional assessments to their respective sub-associations.

Washoe County Foreclosures

-

1,000

2,000

3,000

4,000

5,000

6,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

# of Foreclosures

Somersett home construction starts

Source: http://www.co.washoe.nv.us/repository/files/9/CountyStats.pdf; 2013 data is through 9/11/13.

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Washoe County Median Single Family Sales Price by Year

-

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Source: http://www.co.washoe.nv.us/repository/files/9/CountyStats.pdf; 2013 data is through 9/11/13.

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SOA Delinquent Assessment Receivables$ - thousands

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Gross – Net = Bad Debt Allowance

0

100

200

300

400

500

600

700

800

Dec.'10 Dec.'11 Dec.'12 Aug.'13

Gross Net

107

288

797

402

SOA Cash BalancesOperating Fund Cash - $ thousand Reserve Fund Cash - $ thousand

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0

100

200

300

400

500

600

700

800

900

1000

Dec.'10 Dec.'11 Dec.'12 Aug.'13

It is likely that $200k will be transferred to reserves at next SOA board meeting.

0

500

1000

1500

2000

2500

3000

3500

4000

Dec.'10 Dec.'11 Dec.'12 Aug.'13

94

468

883

127

1,519

3,460

3,067

2,538

2013 SOA Accomplishments to date

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• 39 Vue lots and 1 custom lot foreclosed and sold – over $370k collected

• Mow Strip litigation ruled in SOA’s favor; $20k in legal expenses recovered from complainants

• Transition issues with Developer pending –Construction Defect claims; Reserve Funding deficiency claim

• SGCC Access & Amenities Agreement restructuring in progress

• Added TCTC reserve funding contribution?

2013 Projects

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• Common– Rockfall area landscaping;

– Canyon 9 ADA compliance trail work

• TCTC– Canyon View room window treatment;

– new exercise equipment purchase

• Gates – video surveillance / Wi-Fi installed at new gates

2014 SOA Goals / Objectives

• Improve and build a sense of community

• Improve common area landscaping response and accountability

• Improve evening community patrol services

• Continue further improvements in operations and amenities without assessment changes

• Improve overall communications

• Plan for the future with our strategic plan and explore funding options to continue to enhance our community

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Homeowner Survey Result Highlights

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• More than 500 responses received from throughout the communities

• Responses consistent whether you live in Sierra Canyon, the Village, gated Somersett or the rest of Somersett

• We want to live in Somersett because of its overall environment; lifestyle and the amenities offered

• We want to see improvements in aquatics; cardio equipment; trail systems and security

Assessment Paying Unit Countsat end of each year

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Assessment paying units include builder lots/ units and some vacant lots that have been triggered by city approved development maps.

2012 2013 2014

Public Streets 614 610 610

Vue & Village 332 371 371

Gated Communities 578 612 662

Sierra Canyon 852 852 902

Total Units 2,376 2,445 2,545

2014 Projects under Consideration

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• Common – Strategic plan consulting; Walking trail path signs and added benches; crosswalk safety and Somersett access point security; Canyon 9 motorized golf carts

• TCTC – Strategic plan consulting; more shading in pool area; expand seating in deck area; fitness room expansion including possible expansion into media room, extending room towards pool or lease of space in Town Square

• Gates – Strategic plan consulting; upgrades to gate keypads for additional lighting

Some items identified on the list may cost more than the allocated funding in the 2014 budget. Utilization of a capital contributions fund identified in Article 3,

Section 15 Association’s CC&R may be possible for some of the projects.

Consolidated SOA Operating Expenses

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($-thousand) 2013 Budget 2013 Est. 2014 Budget

Owner Assessments 4,217 4,223 4,380

Other Revenues 440 511 446

Total Revenues 4,657 4,734 4,826

Transfer to Reserves 758 758 766

Payroll / SOA Mgt. 780 791 806

Landscaping 750 717 784

Canyon 9 Mgt. / SGCC access 749 633 750

Canyon 9, TCTC loan 336 336 336

Utilities 423 391 435

Bad Debt Expense 42 42 44

Legal Fees / Expenses 42 136 196

Special Project 75 6 95

Other Misc. Expenses 806 737 806

Total Expenses 4,761 4,547 5,018

Carry over Applied (104) 157 (192)

Net Operating Expenses 4,657 4,735 4,826

Operating Surplus / Loss - - -

2014 Budget by Activity Center

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($-thousand) Common TCTC Gates Total Owner Assessments 2,466 1,437 477 4,380 Other Revenues 183 261 2 446 Total Revenues 2,649 1,698 479 4,826

Transfer to Reserves 280 156 330 766 Payroll / SOA Mgt 152 619 35 806 Landscaping 766 18 - 784 Canyon 9 Mgt / SGCC access 750 - - 750

Canyon 9, TCTC loan 59 277 - 336 Utilities 344 77 14 435

Bad Debt Expense 25 14 5 44

Legal Fees / Expenses 96 100 - 196

Special Project 10 75 10 95 Other Misc. Expenses 200 489 117 806Total Expenses 2,682 1,825 511 5,018 Carry over Applied (33) (127) (32) (192)Net Operating Expenses 2,649 1,698 479 4,826 Operating Surplus / Loss - - - -

Reserves by Activity Center

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($000) Common TCTC Gates Total

Replaceable Assets $3,176 $2,518 $3,955 $9,649

Beg. Bal. – Jan. 1, 2014 $1,087 $771 $1,891 $3,749

Transfer to Reserves 280 156 330 766

2014 Expenditures (109) (108) (134) (351)

End. Bal. – Dec. 31, 2014 $1,258 $819 $2,087 $4,164

According to the Browning Reserve Group, the SOA’s reserves are approximately 88% and 85% funded at the end of 2013 and 2014 respectively.

Remaining 2013 SOA Meetings

• OCTOBER15th - 3:30 pm Strategic Planning (TCTC)22nd - 5:30 pm Board Meeting (LOFT)28th - 5:30 pm Finance Mtg. (TCTC)

• Candidate Nights20th - 3:30 pm Canyon View Room at TCTC21st - 5:30 pm Aspen Lodge at Sierra Canyon

• NOVEMBER5th & 19th - 3:30 pm Strategic Planning (TCTC)20th - 4 pm ANNUAL MEETING (TCTC)25th - 5:30 pm Finance Mtg. (TCTC)

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There are gems to be found all over Somersett!

EGGstravaganza – March 30, 2013

89523 Demographics

89523 Housing Data:Mean Detached House Value $292,592Mean Townhouse Value $218,488Single Family 70 %2-4 Units 4%5+ Units 25%Average Age 9.1Owner - Occupied 65%Median Rent $935

Population: 25,503

Ages:0-18 26%; 18-64 66%; 65+ 8%Median Age 33.1

Educ. Attainment (Age 25+):

High School 19%

Some College 35%

Bachelors 27%

Graduate / Professional 13%

Income:Median Household Income $65,291Married with One Wage-Earner 19%

Sources: 2010 US Census; www.city-data.com /zips/89523; and http://www.clrsearch.chttp://www.clrsearch.com/Reno_Demographics/NV/89523

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What’s happening closer to home?

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