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Exhibit E2000-12
REV 03-01-00
New 02-18-00
Who Am I?
My name is Jim Yourkowski. I am a director on the Silver Firs Phase II
Homeowners Association Executive Board. My wife Jan and I bought a previously
owned home in Sherwood 4 years ago. In SEP-99, I joined the HOA board.
Purpose of this Exhibit
The purpose of this exhibit is to explain the 2000 Budget to help you cast your
vote.
Preamble
The end goal of the budget (and all activities of the HOA) is to preserve the
value of the neighborhood. This is the same value that caused you to buy your
home in the first place. But remember that the budget is only one component of
this preservation. It supplies the money. But just as importantly, we must spend
the money wisely, and we must validate that the services that it buys are
actually performed and finally we must decide whether the services actually do
increase value or whether it was just a waste of money. Further, the value of
the neighborhood is measured by its willingness to enforce the rules (Covenants,
Conditions and Restrictions or "CCR's"). This is primarily a question
of action and good citizenship, but I'll explain how the budget will help with
this as well.
On FEB-07-00, we mailed out the budget and invitation to the annual meeting.
I've been going door to door in the last week to talk to as many people as I can
about the budget. Once they understand what its about, most homeowners (60%-90%)
support it. But I may not get to everyone. That's why I decided to write this. I
put in writing what I've been trying to explain to everyone.
If you have any questions, please call or write.
Jim Yourkowski
425-338-4289
Specifics
This budget is a significant increase- more than 5%. So the CCR's say it must be
voted in by 2/3 the homeowner's. Since we currently have about 750 homes
occupied (people move in every week), so this budget must get 500 yes votes in
order to pass. We couldn't possibly do this at a meeting with a show of hands so
we will mail you a ballot which you mark your vote and return by a due date to
be determined.
The Annual Meeting
Silver Firs Elementary School
5909 146th PL SE
MON, FEB-28-00
7 PM
The budget is so important and has so many aspects that we encourage debate to
explore the many ways in which the goals of preserving the neighborhood may be
met. That is why the budget is connected to the annual meeting. There are many
alternatives. We need to explore the many ways to reduce costs such as
volunteerism, better and cheaper ways of communicating such as using the web
communication, defining expectations, learning about infrastructure and land we
collectively own. Its really quite involved and fascinating, in my opinion. The
annual meeting is a chance to learn as much as possible. We'd like to hear your
thoughts.
The annual meeting was well attended and everyone was really excited about the
new budget. Its was a very good meeting.
The Significance of Timing
There are 882 homes in our neighborhood. Its huge! Centex has only 130 homes
left to build in Pembridge and then they will be moving on to "greener
pastures" which of course, will be developed too. That's the line of work
they are in. Centex can build about 50 homes a year, so they will be moving on
in mid-2001. We must consider "life after Centex". That's what this
2000 budget is about- being on our own for the first time.
Recommendation of the Board
We urge you vote YES on the budget. We believe it supports the values of the
homeowners. We believe it will be effective in preserving the value of the
neighborhood. If you don't choose to vote, it’s the same as if you had voted
NO. Therefore, please vote.
The Budget
The budget we have prepared is for your vote is based on "life after
Centex". It has the following main elements:
INCOME
1. Centex has been subsidizing us ($27,000 last year). This is because our
existing dues are not sufficient to pay for what we expend right now. We will no
longer have that subsidy after they leave.
2. We budget for a 4% delinquency rate. That doesn't mean delinquents are not liable. It just means that we may collect the money later in a later year (thru liens) rather than in the current year.
EXPENSE
1. $10,000 Office Expenses: Centex has paid these costs in the past. For example, it costs $4800 per year to mail the monthly board meeting minutes. We are working on a web site the will cut this cost significantly, but that is still in work. Even so, we will still have document reproduction costs, some postage, room rentals, etc.
2. $18,000 Management Fees. Regarding labor and skills, Centex has
provided the management functions of collecting dues, keeping the books,
administering the CCR's (Covenants, Conditions and Restrictions) and drafting
Scope of Services, hiring contractors, etc. We must hire a company to do this as
Silver Firs Phase 1 has already done.
3. $7, 00 Insurance. As the size of the neighborhood increased, we needed to increase our liability insurance. This protects the association if someone gets hurt on our 100 acres of commonly owned property (the parks, etc.).
4. $100,000 Landscape Maintenance. Last year we spent $55,000 on this. Why the big change? In the past, we allowed the contractor to define the scope of service. This year, we defined a scope of service that reflects the values of our homeowners. We sent this out for 3 bids. The difference between the highest and lowest bid was enough to buy a small house! We decided to obtain more bids. But we also needed to prepare a budget so we averaged the 3 bids and put it in the budget. This area will require more analysis before we actually sign a contract. Please see the Landscape Scope of Service for areas by type and areas by Tract Number (requires Microsoft Excel).
5. $14,166.90 Capital Reserves. This something new. It is our savings account to be used for fixing the things that break. For example, all of our trailhead fences need painting. But we've never budgeted for it. This item will provide the money. Please see the analysis behind this item. (link to new exhibit from Tammy).
6. $7, 000 Capital Expenses. These are things we'd like to buy
in 2000 such as rules signs at the play areas, info signs to tell people when
the next meeting is, brochure boxes on all of the mail stations so people don't
continue to staple advertisements on the wood, safety vests for volunteers, etc.
7. Other Items. The other items in the budget are routine so I don't discuss
them here. It is a surprise for some that we pay for the street lights out of
the HOA dues, however.
Remember, don't hesitate to contact me. I
appreciate any input you may have that will help us determine our future.
Last Updated: 02/22/03