SKY LEGEND AT COTTON RANCH ASSOCIATION, NOTICE OF MEETING OF MEMBERS TO BE HELD JANUARY 31, 2019

Transcription

1 SKY LEGEND AT COTTON RANCH ASSOCIATION NOTICE OF MEETING OF MEMBERS TO BE HELD JANUARY 31, 2019 Notice is hereby given that a meeting of the Members of Sky Legend at Cotton Ranch Association (the Association ) has been called by the Executive Board of the Association pursuant to Section 3.4 of the Bylaws of the Association. It will be held at the at the Creekside Grill, 530 Cotton Ranch Drive, Gypsum, Eagle County, Colorado, on January 31, 2019, at 6:00 P.M., local time, for the following purposes: AGENDA 1. Call to Order; Declaration of Quorum, & Member Education 2. Member Education & Association Overview 3. Approval of Annual Meeting Minutes a. January 24, Election of Board Member- 2 Positions for 3 Year Terms 5. Financial Report and Community Update a. Community Update b. November 30, 2018 Financial Statements c Budget 6. Homeowner Input/Other Business 7. Adjournment Executed this 11th day of January 2019 by the President of the Association. SKY LEGEND AT COTTON RANCH ASSOCIATION, a Colorado nonprofit Corporation By: /s/ Lisa Bystrom Lisa Bystrom, President Administrative & Financial Management Provided By Marchetti & Weaver, LLC Mountain Office Website & Front Range Office 28 Second Street, Suite Century Circle, Suite 103 Edwards, CO Admin@mwcpaa.com Louisville, CO (970) (720)

2 R E C O R D O F P R O C E E D I N G S Minutes of the Annual Meeting Sky Legend at Cotton Ranch Homeowners Association January 24, 2018 A Meeting of the Members of Sky Legend Homeowners Association, Eagle County, Colorado, was held January 24, 2018 at 6:00 p.m., at the Gypsum Creek Grill, Gypsum, Eagle County, Colorado, in accordance with the bylaws of the Association and applicable statutes of the State of Colorado. Attendance The following Directors were present and acting: Lisa Bystrom George Sheram Harry Taylor Mark Lehman The following Members were in attendance: Lindsey Antill Eric Bankert James & Marion Brieger Tim Cashin Lyn Anne Fitzpatrick Jonathan & April Holdredge Melinda Johnson Brian & Kelly Jones Lindsey Kraft Jolene Lehman Katie Paxson Phillip & Michelle Pfister Christopher & Kathleen Pittman Nancy Resnick Julie Shahan Nancy & Stephen Shane Stan & Helena Slodyczka Edith Taylor Michelle & Jon Lovins The following Members were present by proxy: Karen Archey Michael Brown Tom Pohl Paul St. Ruth Rhonda Erickson Scott Russell, RGE Group Page 1

3 R E C O R D O F P R O C E E D I N G S SKY LEGEND HOMEOWNERS ASSOCIATION January 24, 2018 Annual Member Meeting Minutes Also in attendance were: Wendy Miller, Covenant Enforcement Officer Eric Weaver, Marchetti & Weaver, LLC Cheri Curtis, Marchetti & Weaver, LLC Call to Order Member Education Minutes The Meeting of the Members of Sky Legend Homeowners Association was called to order by Mr. Weaver at 6:00 p.m. It was noted a quorum of the members was present either in person or via proxy. Mr. Weaver briefly reviewed the responsibilities of the Sky Legend at Cotton Ranch Association. The Association is responsible for the maintenance of the private roads, street lights, common area, road plowing and landscaping. The Association also is responsible for the front yard maintenance of the Cottage and Traditional homes, which pay an additional quarterly fee for such service. All properties built in Sky Legend are automatically in the Association and are required to pay dues and abide by the rules and regulations. Mr. Weaver briefly reviewed that Sky Legend is subject to the rules of the Colorado Common Interest Ownership Act (CCIOA). Mr. Weaver also noted that more information about the Association is available at Upon motion duly made and seconded it was unanimously RESOLVED to approve the January 31, 2017 Annual Member meeting minutes, as presented. Covenant Enforcement Election of Directors Wendy Miller introduced herself to the members as the Community Liaison. Ms. Miller explained her position and presented the known covenant enforcement violations that are currently being addressed. The terms of Lisa Bystrom and Paul St. Ruth are up for election. Ms. Bystrom expressed interest in continuing to serve on the Board. Mr. St. Ruth is not running. There were a total of four candidates interested in running for the Board for the two Page 2

4 R E C O R D O F P R O C E E D I N G S SKY LEGEND HOMEOWNERS ASSOCIATION January 24, 2018 Annual Member Meeting Minutes positions; Lisa Bystrom, Katie Paxson, Alan Pfister and Julie Shanan. Ballots were distributed to the members and counted while the meeting continued. Community Update The snowplowing and landscaping contracts were approved by the Board with Gerber Landscaping providing the landscaping at the same cost in Morgan Mountain Maintenance will provide the snow plowing of the roads for 2017/2018 at an increased cost, which was still lower than the previously received bids. Several property owners expressed dissatisfaction with Gerber Landscaping and the quality of work provided in prior years. Problems noted include mowing in only one direction, no edging, weed problems, trimming and flower colors. The Board agreed to address the problems presented with Shawn Gerber. It was noted Gerber Landscaping needs to fertilize and deep root feed the trees annually. Members also stated the snowplowing in previous years was unsatisfactory and that contract also needs to be reviewed. RGE Group has purchased the undeveloped property from the prior developer and is in the process of completing construction on the final three lots in Phase II on Legend Drive. No updates were available on plans for future development. Financial Statements Mr. Weaver presented the Association November 30, 2017 financials and approved 2018 budget. Cash balances have increased, accounts receivable has improved but remains high. Mr. Weaver reported the Association is considering hiring a firm for collections of outstanding balances. Mr. Weaver noted accounts with outstanding balances are accruing interest at 18% per annum. Currently the outstanding balances including interest are collected at closing or when the property is refinanced or sold. Mr. Weaver reviewed the funds being held by the District for future projects and operations. The profit and loss statement was reviewed, noting expenses came in overall under budget. Page 3

5 R E C O R D O F P R O C E E D I N G S SKY LEGEND HOMEOWNERS ASSOCIATION January 24, 2018 Annual Member Meeting Minutes Both the general and landscaping dues will remain at the same rate of $95 and $185 per quarter in Hearing no public comment, the 2018 budget will remain as presented. Results of Elections Homeowner Input Adjournment The ballots were counted and Lisa Bystrom was re-elected and Katie Paxson was elected. Both will serve three-year terms that will expire in A homeowner questioned replacing the mulch with rock and the process for fence installations. All changes need to be submitted to the DRC for approval. Upon motion duly made and seconded, it was unanimously RESOLVED to adjourn the meeting of the Sky Legend Homeowners Association Members this 24th day of January Respectfully submitted, Cheri Curtis Secretary for the meeting Page 4

6 Sky Legend at Cotton Ranch Association Balance Sheet 12/31/17 11/30/18 Assets Cash in Bank 64, ,428 CitiWide CD- 0.75% 2/9/19 Maturity 50,520 50,899 Assessments Receivable - Homeowners 29,539 15,285 Account Receivable - CR-HOA 4,000 9,524 Prepaid Expenses 3, Total Assets 151, ,251 Liabilities & Equity Liabilities Accounts Payable 2, Prepaid Assessments 1, Total Liabilities 4, Equity Working Capital 23,475 24,075 Accounts Receivable 29,539 15,285 General Operations 22,149 19,431 Landscape Operations 1,224 4,728 Lighting Reserves 5,128 7,828 Road Reserves 53,666 79,045 Irrigation System Replacement Reserves 11,267 17,862 Landscape Replacement Reserves 1,092 11,092 Total Equity 147, ,347 Total Liabilities & Equity 151, ,251 = = - - No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. Page 1

7 Sky Legend at Cotton Ranch Association Statement of Revenues, Expenses and Changes in Fund Balance Actual, Budget and Forecast for the Periods Indicated 11 Months 11 Months Variance Ended Ended Variance 2019 Unaudited Adopted Favorable /30/18 11/30/18 Favorable Adopted Actual Budget (Unfavor) Forecast Actual Budget (Unfavor) Budget Budget Assumptions Traditional & Cottage Landscaping Beginning of Year Landscaping Installed During Year End of Year All Association Members Beginning of Year Brought into Association End of Year Quarterly Dues Per Unit $95.00 $95.00 $ Landscape Quarterly Charge $ $ $ Combined Funds Income Base Assessments 40,353 41, ,325 41,203 41, ,960 Units * Dues * 4 Qtrs Landscaping Assessments 42,920 44, ,955 44,722 44, ,360 Units * Dues * 4 Qtrs Finance Charges 2,127 2, ,100 2,907 2, ,000 Delinquent Accounts Interest Income Based off of 2018 Fcst Lien Filing / Collection Charges 0 3,000 1,000 4,000 2,500 2, ,000 Collections Work Statement Prep Fees at $50 Each Total Income 86,535 92,195 2,710 94,905 92,561 90,549 2,012 99,495 Expenses General & Admin Expenses Accounting & Administration 14,411 20,000 2,000 18,000 12,889 16,200 3,311 20,000 Based off of 2018 Fcst Billing Expense 1,783 1,900 (100) 2,000 1,905 1,900 (5) 2,000 Based off of 2018 Fcst Bad Debts 0 3,000 3, ,625 2,625 0 None Expected Office Expenses & Misc. 1,051 1, ,250 1,069 1, ,250 Based off of 2018 Fcst Insurance 2,836 3, ,863 2,863 3, ,000 Based off of 2018 Fcst Legal Expense 0 4,000 (1,000) 5,000 3,783 3,667 (116) 4,000 Based off of 2018 Fcst Tax Return Based off of 2018 Fcst Misc Other Total G&A Expenses 20,380 33,450 4,037 29,413 22,809 28,817 6,008 30,550 Operating Expenses Landscape Maint. - Front Yards 22,188 23, ,570 22,188 23,348 1,160 22,866 Add 3 homes Common Area Maintenance 2,000 2, ,000 2,000 2, ,000 Cost, less CRHOA reimb Irrigation Maintenance 3,102 2, , ,250 1,650 2,250 Normal repairs Road Maintenance No anticipated needs Entry Monument No anticipated needs Stormwater Drainage Maint Cleanout Snow Plowing 4,722 3, ,660 2,928 2, ,660 Based off of normal yr Street Light Maintenance (500) 1, (25) 600 Based off of normal yr Utilities Based off of 2018 Fcst Water (pay to CRMD) 5,742 5,891 (332) 6,222 6,222 5,891 (332) 6,405 Based off of 2018 Fcst Reserve Study One-time Study Reserve Fund Capital 0 2,500 (904) 3,404 3,404 2,500 (904) 20,447 Per Reserve Fund Other Misc Total Operating Expenses 38,457 41,249 (607) 41,856 38,546 40,446 1,900 59,328 Total Expenses 58,838 74,699 3,430 71,269 61,355 69,263 7,908 89,878 Net Income 27,697 17,496 6,140 23,636 31,206 21,287 9,920 9,617 Beginning Fund Balance 96, , , , , ,701 Ending Fund Balance 124, ,161 6, , , ,952 10, ,318 Less Receivables (29,539) (40,430) 24,953 (15,477) (23,696) (25,477) Assuming 5 Not Paying Net Available Fund Balance 94, ,731 31, , , ,841 = = = = = = = = Breakdown of Fund Balance Accounts Receivable 29,539 40,430 (24,953) 15,477 15,285 25,477 General Operations 22,149 14,341 (1,171) 13,170 19,431 6,820 Landscape Operations 1, ,013 2,929 4,728 2,968 Irrigation System Replacement 11,267 18,492 (629) 17,863 17,862 22,863 $85K needed in 2031 Landscape Replacement 1,092 2,017 9,075 11,092 11,092 5,092 Slowly rebuild Road Replacement 53,666 58,136 21,205 79,341 79,045 83,569 $137K needed in 2024 Lighting Replacement 5,128 6,828 1,000 7,828 7,828 10,528 $47K needed in 2032 Total Fund Balances 124, ,161 6, , , ,318 = = = = = No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. Page 2

8 Sky Legend at Cotton Ranch Association Statement of Revenues, Expenses and Changes in Fund Balance Actual, Budget and Forecast for the Periods Indicated General Fund 11 Months 11 Months Variance Ended Ended Variance 2019 Unaudited Adopted Favorable /30/18 11/30/18 Favorable Adopted Actual Budget (Unfavor) Forecast Actual Budget (Unfavor) Budget Budget Assumptions All Association Members Beginning of Year Brought into Association End of Year Quarterly Dues $95.00 $95.00 $95.00 $ Increase to fund reserves Income Base Assessments 40,353 41, ,325 41,203 41, ,960 Units * Dues * 4 Qtrs Finance Charges 2,127 2, ,100 2,907 2, ,000 Fewer late accounts Lien Filing & Collection Charges 0 3,000 1,000 4,000 2,500 2, ,000 Collections work Statement Prep Fees at $50 Each Total Income 43,030 46,935 2,340 49,275 47,461 45,964 1,497 52,460 Expenses General & Admin Expenses Accounting & Admin 14,411 20,000 2,000 18,000 12,889 16,200 3,311 20,000 Based off of 2018 Fcst Billing Services 1,783 1,900 (100) 2,000 1,905 1,900 (5) 2,000 Based off of 2018 Fcst Bad Debts 0 1,100 1, None expected Office Expenses & Misc. 1,051 1, ,250 1,069 1, ,250 Based off of 2018 Fcst Insurance 2,836 3, ,863 2,863 3, ,000 Based off of 2018 Fcst Legal Expense 0 4,000 (1,000) 5,000 3,783 3,667 (116) 4,000 Additional for collections Social Events & Meetings Based off of 2018 Fcst Tax Return Based off of 2018 Fcst Total G&A Expenses 20,380 31,550 2,137 29,413 22,809 27,154 4,345 30,550 Operating Expenses Common Area Maintenance 2,000 2, ,000 2,000 2, ,000 Cost, less CRHOA reimb Road Maintenance Now in Replcmnt Fund Entry Monument Median in Reserve Fund Snow Plowing 4,722 3, ,660 2,928 2, ,660 $305 per plow, 12 minimum Stormwater Drainage Maintenance Minimal needs Street Light Maintenance (500) 1, (25) 600 Based off of normal yr Utilities Based off of 2018 Fcst Other Misc Total Landscape Expenses 7,426 7,260 (150) 7,410 6,132 6, ,360 Total Expenses 27,806 38,810 1,987 36,823 28,941 33,611 4,671 37,910 Net Income Before Transfers 15,224 8,125 4,327 12,452 18,520 12,353 6,167 14,550 Replacement Reserve Transfers Lighting Reserve 1,650 1,700 (1,000) 2,700 2,700 1,700 (1,000) 2,700 Annual amount Road Replacement Reserve 6,025 6,205 (18,795) 25,000 25,000 6,205 (18,795) 12,000 Annual amount Total Replacement Reserves 7,675 7,905 (19,795) 27,700 27,700 7,905 (19,795) 14,700 Beginning Fund Balance 27,239 33,446 1,342 34,788 34,788 33,446 1,342 19,540 Ending Fund Balance 34,788 33,666 (14,126) 19,540 25,608 37,894 (12,286) 19,390 Less Accounts Receivable (12,639) (19,325) 12,955 (6,370) (6,177) (12,570) Assuming 5 Not Paying Net Funds Currently Available 22,149 14,341 (1,171) 13,170 19,431 6,820 Drop for collections work = = = = = No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. Page 3

9 Sky Legend at Cotton Ranch Association Statement of Revenues, Expenses and Changes in Fund Balance Actual, Budget and Forecast for the Periods Indicated Landscaping Fund 11 Months 11 Months Variance Ended Ended Variance 2019 Unaudited Adopted Favorable /30/18 11/30/18 Favorable Adopted Actual Budget (Unfavor) Forecast Actual Budget (Unfavor) Budget Budget Assumptions Traditional & Cottage Units Beginning of Year Landscaping Installed During Year 2 3 (2) End of Year (2) Quarterly Landscape Charges $ $ $ $ $ Income Landscaping Assessments 42,920 44, ,955 44,722 44, ,360 Units * Dues * 4 Qtrs Total Income 42,920 44, ,955 44,722 44, ,360 Expenses Operating Expenses Landscape Maint. - Front Yard 22,188 23, ,570 22,188 23,348 1,160 22,866 Based off Contract Additional Plantings In Replacement Fund Water (Paid to CRMD) 5,742 5,891 (332) 6,222 6,222 5,891 (332) 6, Homes/$17.50/mo/ 6 mo Irrigation System Maintenance 3,102 2, , ,250 1,650 2,250 Based off of 2018 Fcst Bad Debts 0 1,900 1, ,663 1,663 0 None expected Total Landscape Expenses 31,032 33,389 2,347 31,042 29,010 33,151 4,141 31,521 Total Expenses 31,032 33,389 2,347 31,042 29,010 33,151 4,141 31,521 Net Income Before Transfers 11,888 11,196 2,347 13,913 15,712 11,434 4,278 14,839 Replacement Reserve Transfers Irrigation System Replacement xfer 0 7,225 (2,775) 10,000 10,000 7,225 (2,775) 5,000 Catch up on reserves Landscape Replacement xfer 10,000 2,000 (8,000) 10,000 10,000 2,000 (8,000) 6,000 Catch up on reserves Total Replacement Reserves 10,000 9,225 (10,775) 20,000 20,000 9,225 (10,775) 11,000 Beginning Fund Balance 16,235 20,050 (1,926) 18,124 18,124 20,050 (1,926) 12,037 Ending Fund Balance 18,124 22,021 (9,985) 12,037 13,835 22,259 (8,424) 15,876 Less Accounts Receivable (16,900) (21,105) 11,998 (9,107) (9,107) (12,907) Assuming 5 Not Paying Net Funds Available 1, ,013 2,929 4,728 2,968 Breakeven for cash flow = = = = = Reserve Fund 11 Months 11 Months Variance Ended Ended Variance 2019 Unaudited Adopted Favorable /30/18 11/30/18 Favorable Adopted Actual Budget (Unfavor) Forecast Actual Budget (Unfavor) Budget Budget Assumptions Income Irrigation System Transfer In 0 7,225 2,775 10,000 10,000 7,225 2,775 5,000 All put to landscaping Landscape Replacement Trfr In 10,000 2,000 8,000 10,000 10,000 2,000 8,000 6,000 All that is available Road Replacement Transfer In 6,025 6,205 18,795 25,000 25,000 6,205 18,795 12,000 Estimated Need Lighting Reserve Transfer In 1,650 1,700 1,000 2,700 2,700 1,700 1,000 2,700 Estimated Need Interest Income Reserve CD set up Total Income 18,260 17,805 30,570 48,375 48,079 17,130 30,949 26,375 Expenses Irrigation System Replacement 0 0 (3,404) 3,404 3,404 0 (3,404) 0 No anticipated needs Landscape Replacement ,000 Complete Rockwork Road Overlay No anticipated needs Crackfill Roads ,947 Every 3 Years Curb & Gutter / Medians 0 2,500 2, ,500 2,500 2,500 Median work Street Light Replacement Convert to LED in 2016 Total Reserve Fund Expenses 0 2,500 (904) 3,404 3,404 2,500 (904) 20,447 Net Income 18,260 15,305 31,474 44,971 44,675 14,630 31,853 5,928 Beginning Fund Balance 52,894 70, ,154 71,154 70, ,125 Ending Fund Balance 71,154 85,474 30, , ,828 84,799 31, ,053 = = = = = Breakdown of Fund Balance Irrigation System Replacement 11,267 18,492 (629) 17,863 17,862 22,863 $85K needed in 2031 Landscape Replacement 1,092 2,017 9,075 11,092 11,092 5,092 Slowly rebuild Road Replacement 53,666 58,136 21,205 79,341 79,045 83,569 $137K needed in 2024 Lighting Replacement 5,128 6,828 1,000 7,828 7,828 10,528 $47K needed in ,154 85,474 30, , , ,053 = = = = = = No assurance is provided on these financial statements; substantially all disclosures required by GAAP omitted. Page 4

10 SKY LEGEND AT COTTON RANCH ASSOCIATION MEETING OF MEMBERS January 31, 2019 PROXY The undersigned hereby appoints (Please print name of proxy holder) as the undersigned s proxy, with full power of substitution, to attend the meeting of the members of the Sky Legend at Cotton Ranch Association (the Association ) to be held at the Creekside Grill, 530 Cotton Ranch Drive, Gypsum, Eagle County, Colorado, on January 31, 2019, at 6:00 p.m., local time and any adjournment or adjournments thereof, and to vote thereat the number of votes which the undersigned would be entitled to vote, with all the power the undersigned would possess if present in person, as follows: 1. On such business as may properly come before the meeting. Receipt of the Notice of Meeting of Members dated January 11, 2019, is hereby acknowledged. THIS PROXY IS SOLICITED BY THE BOARD OF DIRECTORS OF THE ASSOCIATION. THE ASSOCIATION MUST BE IN RECEIPT OF AN ORIGINALLY EXECUTED PROXY PRIOR TO THE TIME OF THE MEETING FOR YOUR VOTE TO BE COUNTED. Dated: (Please date your Proxy) Signature of Member as such Member s name appears on deed (Note one Vote per Property) Print Name Lot Number, Filing or Street Address Please return Proxy via , mail or fax to: Sky Legend at Cotton Ranch Association c/o Marchetti & Weaver, LLC 28 Second Street, Suite 213 Edwards, CO Fax Cheri@mwcpaa.com