May 2017

June marks not just the start of summer in our community, but also our board of directors election season, which concludes at our annual membership meeting. As you consider this year’s election, I thought it would be useful to review some aspects of our association.

Tahoe Donner Association (TDA) is a recreational homeowner community located within Truckee, California, established in 1971 with the construction of private homes and multiple family units beginning in the spring of that year. Today, TDA consists of approximately 25,000 individual members dispersed within approximately 6,500 lots (single family homes and mixed multi-unit zoned). TDA encompass approximately 7,678 acres of land in both the Town of Truckee and the County of Nevada. Approximately 84 percent of these residences are second homes, with the remaining approximately 16 percent living at Tahoe Donner full time. There is a rising population of younger and more affluent second homeowners who, on new member surveys, indicate a strong desire for recreational amenities and outdoor experiences. Since 2010, TDA has made several open space purchases, including the 240-acre Bucknam Tract; the 20-acre Forestry facility, the 482-acre Euer Valley, and the 161-acre McGlashan Springs parcels; as well the 640-acre Crabtree Canyon. The association has also invested millions in the redevelopment of existing older and under-capacity facilities and amenities using the association strategic plan, reserve replacement plan, and general plan as tools to prioritize reinvestment priorities. The 10-year compounded annual growth rate of the annual assessment (2006-2016) is 6.2 percent, including a focused effort to improve the percentage-funded level of the replacement reserve fund. The 10-year compounded growth rate of the operating portion of the annual assessment for the same period is 4.4 percent.

Overall, the association manages approximately 500,000 visits across the range of activities and amenities annually. The governance structure of the association is outlined in the governing documents, and mirrors our public sector local governments as a representative democracy. The elected board is bound not only by the governing documents, but the California Davis-Stirling Act, California Corporations Code, and fiduciary duty to the entire association.

The association operates under an annual budget approved by the board of directors. The budget includes an operating fund, a reserve replacement fund, new machinery and equipment fund, and a development fund for the modernization of amenities/facilities outlined in the general plan (association master plan), and their associated programs and support departments. The operating budget funds the day to day operations and their maintenance. The reserve replacement budget replaces large component items that have reached the end of their useful life. The development budget funds facilities and infrastructure. Each membership parcel has an annual assessment that funds a portion of the association’s annual budget. The association undergoes a financial audit each year, which is published in the May issue of the Tahoe Donner News as well as online on our website.

The amenity package creates a substantial portion of the attraction power of the Tahoe Donner community, and as such, contributes significantly to the value of the real estate developed. The 2017 annual budget report provides greater detail of the overall complexity of the various operating departments, the replacement reserve funding plan, and the development fund plan for future capital infrastructure reinvestment. Overall, the 2017 operating fund revenue requirement is $17.3 million, with budgeted operating revenues funding 64 percent of this requirement and the annual assessment revenue funding the remaining 36 percent.

Under the TDA business model, all the amenities are available to members of the homeowners association, and some are open exclusively to members. Other homeowner amenities are also open to the public on a fee-for-service basis. The association is unique in that it owns and operates a vast array of amenities, in addition to providing the core typical HOA services and functions, all under a federal Internal Revenue Service 501(C)(4) Social Welfare Organization framework. The association’s capital expenditure investment for 2017 is estimated to be $4.4 million. The current draft association master plan before the board of directors and membership outlines the process and priorities to for future infrastructure reinvestment decisions.

The association economic impact on the regional economy is significant. The association issues over 800 W-2s each year with over $8.8 million in gross wages, generating over $1.6 million in payroll taxes. The association’s sales generate on average $350,000 each year in state and local sales tax funds. The association is on the top 10 list of Nevada County business property tax entities.

Aside from the updated association master plan draft (updated general plan), developed by the General Plan Committee with extensive membership feedback that is now before the board of directors, the board and management are reviewing the extensive winter damage to the association’s common property. Staff is assessing downed trees, fence damage, and other heavy winter weather impacts in order to develop short- and long-term plans to address the damage on association property as well as private homeowner lots. A new association website has been launched, which includes a new online portal for
owners to apply for architectural standards permits, report violations, and register for curbside chipping.

The board is also seeking membership feedback on an update to our 45-year-old governing documents. A draft is currently available for membership review with forthcoming community meetings and communication on that overall process. As we continue our focus on the board’s strategic plan goals and association vision, we are also quickly preparing for summer operations.

While this is a short overview of the association, and a few current topics, I hope all our members take the opportunity participate in the annual board election and get out and utilize the great amenities in your personal resort community of Tahoe Donner!

Robb Etnyre | General Manager