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| OHCC LIVING | MARCH 2021 | 5 Treasurer's Report for the period ending December 31, 2020 If there were bad news, it would be on the first line of this brief report. There isn't, so it's not. From a financial perspective, your HOA continues to perform well – at least as an accumulator and manager of funds. All significant recommendations and decisions are made by groups of volunteers and executed by our management team, and the overwhelming limitation is the avoidance of liability and risk, so it's tough to actually get things done. Many changes (that have direct financial implications) have been offered to the Board since last August's election – here are a few of them: Implementation of a purchase order system, in which procurement above some dollar amount will require pre-approval — this should help control spending. Elimination of the ARC deposit system, in which typically more than $35k of homeowner money is comingled with HOA operating funds (should be in a trust account, of course) — hopefully that financial process will soon be terminated, and replaced with an after-the-fact fine system. The minor fee for inspection will remain. Modification of the way we've been storing old (mostly financial) paperwork — OHCC currently pays more than $5,000/ year to store more than 800 document boxes. It's been 36 years – with no index, no way of finding documents except by physical search. We've asked our attorney for help in deciding how to handle that; maybe a bonfire? Sale or development of that triangular piece of OHCC land across Shadowridge — For decades it's been sitting there as a liability, not an asset. An ad hoc committee has just been formed to find use for it, or to work with someone able to exploit it – to the financial benefit of our community. If you have ideas regarding that project, let me know. Changes to, or replacement of, our shopping bus system, which is $405 per trip for (typically) four people — perhaps subsidizing LYFT or UBER rides? What do you think would be a reasonable solution? Golf course and lanai – we're beginning to contemplate processes that will result in plans to actually take steps that will get something done. A fabric shade structure will be a useful interim lanai solution, as it will provide shade over game/ snack tables (to replace those lost in the Clubhouse renovation). Well, well, well – that $123k hole in the ground is a monument to our lack of management foresight, but there's a possibility that in 2021 we'll begin developing the electrical power and water distribution system that puts the well to work. Long term, it should save us a lot of the money that we now spend for city water. Funds have NOT been reserved to make the well operational, so nothing can happen until we homeowners agree to spend new money. OHCC uses a professional reserves analyst (Advanced Reserve Solutions, in Laguna Hills, CA) to predict future repairs and replacements and to assess our ability to finance them as they are needed. That analysis was just done, and it's clear that OHCC has ample reserves. If you've lived in another HOA, you know how comforting this is. Your Budget and Finance Advisory Committee has generated an estimated budget for the coming year. You will be delighted to learn that 2021-22 will be our fourth year without an increase in HOA monthly fees! There's a good chance that in 2022 we will need an increase to cover inflation and rising labor costs - but we said exactly that in years past, so stay optimistic. The Board has set its next open/regular meeting for March 18. That schedule change means we should have preceding month financials prior to that discussion, and it also may mean that you receive more timely data on our money matters. Based on chats with homeowners regarding monthly reporting of financial data, I've further modified the format since my last report. If you have ideas regarding content/format of this compressed report, they'll be welcome. More? Less? Different? January's numbers arrived today (18FEB21), just in time for a summary to reach this edition of OHCC Living. As always, our financial details are available on the website: Treasurer's Report By Henry Eisenson, OHCC Treasurer-in-training As of… 12/31/20 1/31/21 Assets (cash, receivables, reserves fund, capital improvement, etc.) .................... 7.8M .....................7.7M Current liabilities (bills to be paid, similar immediate invoiced obligations) .............. 444k .................... 450k Total reserve liabilities (for predicted replacement or repairs) ................................ 5.6M .................... 5.4M Total equity (just like a piggy bank, except it doesn't jingle) .................................... 958k .................... 979k Year to date cumulative surplus ............................................................................... 255k .................... 309k As of this writing on Feb. 18, 2021: OHCC is in excellent financial condition!

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