Long Range Finance and Planning Committee Members

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Long Range Finance and Planning members: Len Jacob, Kim Higgins, Mary Lou Laubach, and Al Dugan.

The Long Range Planning & Finance Committee, as the name implies, has two major objectives. The first focus is on shorter-term issues such as assisting in the development of the annual Village budget, the sources and uses of funds, the investment strategy for excess funds, and cash flow planning.

The longer-term objectives focus on integrating, under the guidance of the HOA Board, the long term plans of each of the CPV committees and developing an overall 5 – 10 year financial plan.

The Long Range Planning & Finance Committee, like all CPV committees, acts in an advisory capacity to the CPV Board. Castle Pines Village is entering a period of transition from the developers and builders having the burden of planning and overseeing our Village’s operations to the residents accepting that role.

As our Village is “built out,” the next five years are critical in planning the ultimate infrastructure that will enhance the quality of life for all our residents. The Village Board & the Long Range Planning & Finance Committee are committed to developing a finance plan that will balance the needs of our community in a sound fiscal manner.

Meeting Dates:  Second Thursday of each month

LONG RANGE PLANNING AND FINANCE COMMITTEE ANNUAL REPORT 2006

OVERVIEW Established in June 2004, the Long Range Planning and Finance Committee (LRP&F) was charged with oversight of both current and long-term spending in the Village. LRP&F members have consulted with committees on annual budgets, both for operations and for Capital and Reserve Replacement Funds. Due to careful planning, investing and monitoring of CPHA funds and the cooperation of the committees, there is no need to raise the dues for the third year. Increases in the village population and amenities to be maintained and rising service costs will undoubtedly require a dues increase in the near future. The goal is to limit future increases to about the annual inflation rate.

To insure that Reserve Replacement Funds are adequate, the previous study was updated. Currently, reserves required to support the Village asset base are 100% adequate, a significant improvement over past years. When capital projects are complete in 2007-08, a new comprehensive study will be done. Although the committee name includes long-range planning, and significant work on this has been accomplished, the committee has deferred publishing a long-range plan until after these capital projects are finished and an accurate evaluation of the reserves required to operate and maintain the infrastructure and recreation facilities is made.

2005 AUDIT The 2005 outside audit was completed and resulted in another grade A on our report card. The HA accountant, Carol Tilton, deserves the credit for this. Carol keeps our records up-to-date, accurate and backed up with appropriate documentation for payments. Kim Higgins, a committee member and CPA, has worked with the auditor to get more helpful information and has, to the extent possible, educated the rest of the board in the process and use of audit information.

CAPITAL PROJECTS During 2006, approximately $900,000 was generated to fund capital projects that are either underway or are under contract to begin as soon as the weather permits.  Castle Pines Homes Association Administrative and Emergency Services Building, is scheduled for occupancy in early April, 2007. The Reserve Fund has been adequate to make the payments during construction, making an expensive construction loan unnecessary. A mortgage of about 70% of the appraised value of the facility, to replace the reserve capital used, will be obtained on occupancy. As promised, this facility will be funded by future revenues so that all future residents will participate in the cost of the building.  Canyon Club: A building in the pool area to house the pool equipment, poolside furniture, swim team equipment and a break room for the lifeguards is expected to be finished by mid May 2007. The pool equipment will not be relocated until after Labor Day to insure the pool opening on Memorial Day. The equipment will be moved immediately after Labor Day so that the water in the pool can be used for testing. Two new tennis courts that will allow residents to participate in tournament play and to have adequate space to hold youth lessons are expected to be ready for play in mid April. A restroom facility to serve the playing field and tennis courts will be available about the same time.

RESERVE REPLACEMENT FUNDING In 2006, this fund has been used for: two new computers for the administration office, the reserve study update, two new vehicles and radios for Emergency Services, a new Knox Box system, three new exercise bikes for the Fitness Center, a new life guard stand, a pool vacuum, gas grills inside an attractive stone enclosure and pool furniture for the Canyon Club, trail maintenance and a tennis backboard.

YEAR-END ASSESSMENT 2006, the first year of a CPHA Board of all residents, ended with approximately 1,300 homes in the Village. The current expected “Build Out” number is approximately 1,865, which could change when the remaining areas are platted. When developers of the Aslan/Riiverdell and Toll Bros. properties fulfill their commitment to the community to build a Summit Club, the infrastructure will be 98% complete, leaving mainly completion of trails for the future. This combination of a 100% CPHA resident board, an effective Homes Association Manager and staff, and residents actively participating on committees bodes well for a bright financial future for the Village.

2007 BUDGET The 2007 budget includes allocations for the operation and maintenance of the Summit Club when construction is complete, the pool is tested and the area is landscaped. It also provides for debt service and operating expenses for the new HA/ES building. A new Forest Management Committee has been formed to advise the HA Board on the best ways to insure the continued beauty of the environment while protecting the Village from the threat of fire from excessive undergrowth. The budget will continue to provide funding to CPVHA efforts to negotiate an effective solution to the impact of the proposed Meadows Parkway extension South of the Village.

COMMITTEE Al Dugan, Chairman and liaison to the CPHA Board Kim Higgins, Accounting and Audit Oversight Len Jacob, Investments, cash flow and Emergency Oversight Mary Lou Laubach, records, research and Parks & Recreation Oversight Carol Tilton, staff accountant Mark Larson, General Manager of CPHA

Respectfully submitted by Mary Lou Laubachs