Dear Friends and Neighbors,

Your Board has been busy implementing your wishes expressed at our annual meeting in July.
We have established a proposed budget for your review at our Budget Meeting which is
scheduled Saturday, September 29, 2018 at 580 Pine River Ranch Circle at
10:00AM. The primary goal of this meeting is to conclude the meeting with an established
budget for 2019 that your Board can use to direct our activities for the upcoming year. We will
also have an update on the grant process for our Bridge Replacement. You will have an
opportunity to ask questions and express your thoughts. Finally, it will be a great time to meet
and greet our new neighbors. We have had nine (9) new neighbors move into our subdivision
this past year and in addition some new neighbors bought lots in our subdivision. Please come
for our meeting express your opinions, have questions answered and enjoy great fellowship. If
you cannot come, please give your proxy to someone who will be there.

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The following are some of the Highlights of what has happened since our Annual meeting:

• Safer Shoulder: 13 truckloads of fill were brought in to build up at least a little bit of a
  shoulder along the south side of the paved portion of Ludwig Drive. This will reduce the
  risk of roll overs if drivers mistakenly let a tire get off the road.
• Chip and Seal: After several delays Four Corners Materials was able to do a Chip and Seal
  treatment on Ludwig to the bridge. Your patience in dealing with the necessary traffic
  delays and driving slowly while the gravel (chips) became imbedded in the tar is much
  appreciated. The expected life of this treatment is 5-7 years depending upon traffic and
  weather. We filled the cracks last year which will help extend the life of the treatment.
• Road grading and dust abatement: Roads were graded, additional road base was brought
  in, pot holes worked on and roads rolled before the dust abatement was put down. Again,
  the dates for road work and application got changed on us at the last minute. Your
  willingness to minimize traffic during this time helped us have a better and more enduring
  treatment. THANKS TO EVERYONE!

CC&R’s: Most voted on our new CC&R’s at the Annual Meeting. Since then votes have
continued to come in. We have now received enough votes to ratify our new revised CC&R’s
(94 percent of all votes cast to date are in the affirmative, _47_ Yes, __3__ No, __0__ Abstain).
The official documents have now been signed and filed with the La Plata County Clerk and
Recorder.

• All relevant documents are or soon will be up on our website: Pineriversranchesloa.com
• Weeds: We have approved having the weeds around the pond and along some of our
  PRRC right of way sprayed to kill the weeds. There will be a follow up spraying in late
  spring or early summer.
• Design Committee: Susan Wells has been appointed to a three-year term on the Design
  Committee. Terri Bonham, Chair, has two years left on her term. Granville Conway has
  one year left on his term. Thanks to these three for their willingness to serve. We expect
  several more construction projects in the coming year.

Proposed Budget
The proposed budget is attached for your review. According to our newly revised CC&R’s, this
budget will become effective unless it is vetoed by the membership at the Budget Meeting
September 29, 2018. I would like to draw your attention to several items concerning the budget.

• This proposed budged is based upon keeping the annual assessment the same as in 2018
  and 2017.
• The total funds available are based upon collections from Subdivision I, II and the other
  (alpha) lots that use our bridge and roads. Expected carry over funds from 2018 are added
  to this balance while projected delinquent (non)payments lower the balance. Those
  delinquent (non)payments, along with interest and penalty charges, will become liens
  against said properties and subject to collection at a later time. We expect that some of
  the past liens will be collected in 2019 as they have been this year. But those amounts are
  uncertain until they are collected and can not be used to develop a projected budget.
• Many expenses are expected to remain the same as last year: Administrative Expenses,
  Annual and Budget meeting expenses, Insurance, and Contingency Fund.
• We expect Legal Fees to drop as we have now completed the revision of our CC&R’s and
  By Laws to be consistent with state law.
• As we have a large carry over in our Winter Account, we are reducing the amount we plan
  to transfer into that account this year. The $2500 budgeted will bring our Winter Account
  up to about $8200, so we should have enough to cover snow plowing for even a heavy
  year.
• We have consolidated mowing and weed mitigation into a single category which gives the
  Board more flexibility to meet the maintenance needs of our common areas.
• Dust abatement, road work/grading, and gravel are based upon 2018 expenditures. We
  have included some additional funds to do some remedial work on Richards Drive and
  Duck Springs Lane.
• We have budgeted for $5000 for Bridge Expenses. We have been advised not to spend
  money on bridge repairs while the Bridge Grant process is underway as it could reduce
  our chances of receiving the grant. We do want funds set aside for an emergency and to
  make any critical repairs after the grant process is complete but before a new bridge can
  be installed.
• We have established a category for paying a grant writer to help us secure a grant to
  defray a portion of the cost of building a new bridge. We have a grant writer now, but the
  work may continue into 2019.
• The Board is proposing establishing an escrow account to budget for the next time we
  need to do a Chip and Seal. This is a large expense ($28-30,000) that needs to be done
  ever 5-7 years. We feel it is best to set aside funds each year to meet these large irregular
  expenses we can foresee coming. We have proposed setting aside $4000 this coming year
  into this account and hope future Boards will set aside additional funds so that in six years
  we have the funds to meet the next Chip and Seal expense.

Please plan to come to the Budget Meeting September 29th at 10 am. If you can not come, please
give your proxy to someone who will be there. We will still need a quorum to conduct business.

Sincerely,
Jim Clay
President Board of PRRLOA