2005 February newsletter

Fellow homeowners, I thank you for your support in our recent election and want to let each of you know I will do my best to positively impact our Association in the coming year. Starting with this message, I will work to improve our communications by writing articles in our monthly newsletter that will address major issues of our Association for that month. This will hopefully keep you, as homeowners, informed on a timely basis of major activities being discussed and planned. Many of you have volunteered for committees that are now assisting the board in many areas. Please be sure and check our new website for activity being addressed by these new committees.

This first article is an update on our annual Budget preparation process. We are fortunate this year to have a Budget Committee made up of five homeowners that have spent the last several months studying our annual budget and reserves. They will present their findings and make recommendations to our Board of Directors at the December 28^th meeting of the Board of Directors.

This committee completed a Consumer Price Index (CPI) analysis of our dues covering the past twelve (12) years. It is noteworthy that if we had increased the dues for this twelve (12) year period at the CPI rate; our current dues would be $331 a month compared to the $330 per month we are actually paying. Additionally, we would not have had to incur the 20% one-year increase that we had for the 2004/2005-budget year. If we had been facing our increased expenses on an ongoing basis, we would also have an additional $400,000 in our reserves. The average annual increase in dues would have been approximately $250 per home per year or about $3,000 per home over the entire twelve (12) year period.

This committee is also studying our reserves and will most likely have recommendations regarding them in coming years. We are currently projecting to finish this fiscal year at over 80% of our 2004/2005 recommended funding level. The 2005/2006 Reserve Study has increased the recommended funding level to $1.175 million. As we enter the new fiscal year on March 1, 2005 we estimate that the beginning reserve balance will be at 70% of the 2005/2006 recommended funding level.

While at this writing, I do not know what the committee's recommendation to the Board of Directors will be, I anticipate that the 2005/2006 dues increase for our ongoing expenses including reserve funding requirements will be substantially less than the prior year increase.

The Garden Homes Board of Directors established goals they were focusing on for 2004, which are listed as follows:

1) Complete four of the remaining ten sections of the Landscape Rejuvenation under budget by the end of the year.

2) Develop a comprehensive strategic plan for cost effective maintenance of the wood structures including alternate material to replace cedar siding.

4) Build reserve accounts to achieve at least 80% of recommended funding as measured by the Reserve Study prepared for 2004/2005 fiscal years by Advanced Reserved Solutions.

COMMITTEES

We currently have activity going on with a number of community committees. These include Budget, Maintenance, Landscape, Communications, Architectural, and Welcome Committees. These committees assist the Board with the running of our Association. Please review our new Website at www.turtlerockglen.com to learn more about what is going on with each of these groups. We are in the process of updating the site and it will be the place to see what is going on with each committee. Should you be interested in joining a committee, please contact the chairperson or Yvonne Avila at Optimum Property Management for details.

WEBSITE

The Communications Committee has been working with our volunteer webmasters, Kelly McClellan, Brad Denny and Abby Don, to create our new website: www.turtlerockglen.com

We are happy to say the site is well on its way to completion. Thank you Kelly, Brad and Abby, for making this site user friendly and easy to navigate.

The final phase of this year's landscape renovation project, the 5^th phase located at Deep Creek and Canyon Ridge has been rescheduled to be completed in early January, 2005. Next year's landscape renovation phases will be reviewed and decided upon in the early summer timeframe.

This is a reminder that all homeowners must maintain and trim trees so they do not extend above the roofline. Trees and plants have grown quickly during the summer months, and it is time again for all homeowners to trim trees below the roofline of their homes.

Orange Coast Building Services inspection commenced September 13, 2004. The purpose of this general exterior inspection is to determine the extent of wood repairs that may be required of each home prior to painting the structures. We are expecting this report to be reviewed by the Maintenance Committee and presented to the Board of Directors at the December Board meeting. This report is expected to determine the basis of the actual condition of our homes and should help us determine what approach we should consider taking with them in the future.

The repair and maintenance of the floor surface of the balcony of our homes is the obligation of each homeowner. Now is the time to inspect and repair surfaces that require repairs. This could prevent serious water damage to the structure and future cost to you.

You may recall that some months ago, we had a vendor volunteer to inspect our decks. Unfortunately, that vendor is no longer servicing our association. We did learn however, that approximately 70% of the homes that were inspected were in need of deck repair. Chances are your deck is included in this category.

Please do your part to help our association. High assessment fees are a direct result of costs incurred. This is an area that each of us can contribute. By acting responsibly for our individual repair and maintenance obligations, we can help keep our home value up and our costs down.

The Board of Directors meets every month on the 4th Tuesday at 7:00 p.m. at the Turtle Rock Community Center. Homeowners are welcome and encouraged to attend the general session. The homeowner forum portion, which is when the homeowner may address the board with questions or concerns, is held right at the start of the meeting at 7:00, so be prompt if you wish to speak.

If you are unable to attend a board meeting, you may also submit your requests or concerns in writing to the Board of Directors, c/o Optimum Property Management. Your written request will be included with the Directors Report and reviewed by the board at their upcoming meeting.

2004 GOALS

ORANGE COAST BUILDING SERVICES

BALCONY MAINTENANCE

MANAGEMENT COMPANY

BOARD MEETINGS