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| OHCC LIVING | JUNE 2021 | 5 Solar – SOLAR! The correct solution for OHCC will be the construction of shade structures over most of the RV parking facility, energy from which will be purchased by SDG&E to offset the cost of energy at the Clubhouse, HOA office, maintenance building, and streetlights. I expect cost of the system to be in the million dollar range, with payback in less than 10 years if SDG&E rates do not go up. Solar systems typically have 25 year warranties on functionality and performance, so OHCC should see a very substantial net financial advantage from the installation. I expect my replacement to review the feasibility study I gave to the Master Board long before I was elected, to consider correspondence since then, and to solidly support solar for our community. It's cost-effective for government, church, educational, and commercial energy-users, and will save OHCC a lot of money in the future. Lanai. We've been playing with this for years, and finally settled upon a tent to be rented at about $25k for five months. I proposed a beautiful and effective 3,000 sq ft tension fabric system at $42k delivered, plus installation, for under $60k complete, and still recommend it instead of that tent. Hopefully my replacement will review the numbers and help the Master Board get this done. Of course, there are proposed variations of a Taj Mahal building, but our sad history shows that it's in the indefinite future and will require funding that is unlikely to be approved. Emergency Messaging System. The EMS in your OHCC home (those panels on the wall with the mysterious buttons) is expensive to maintain, works only with a costly landline, and is almost 100 percent obsolete. We've set up a committee to evaluate a replacement, and it's a pleasure to tell you that we're making progress toward a doubly cost-effective (hence it's in this Treasurer's Report) solution – the HOA can terminate its support of the archaic system in place, and the homeowner can get better service without a landline. If the EMS issue resolves as I expect, homes will convert to Amazon's GUARD PLUS system at $50 per year, which provides a voice connection to Amazon's emergency response service. Emergency preparedness. COVID-19 was good training for COVID-20 and -21, and other emergencies are inevitable. I've repeatedly recommended that the HOA accept its obligation to protect OHCC residents, and strongly support the good work by SERT. I'm therefore an advocate of funding SERT financial requirements as our emergency response capabilities grow, and hope that my successor has a similar viewpoint. OHCC Financial Performance A simple summary – we're doing fine. We're using some of our dedicated Reserves to get the golf course refurbished, and hope you'll approve spending some of our accumulated Capital Improvement money to finish the well, but when all is said and done: your HOA is in very healthy financial condition. One aspect of HOA's "financial performance" deserves special mention here: home values. It appears that real estate has skyrocketed by about 18 percent in the past year. That valuation is due partly to the amazing amenities of this community, partly to unexpected inflation, and partly (I will unashamedly aver) to the competence of the Master Board and Village Boards – the guardians of your money, and protectors of OHCC's value. It's true that this appreciation generally benefits our heirs, but it also creates a value against which homeowners can borrow – at today's astonishingly low interest rates. You are living in one of California's most desirable retirement developments – with good reasons! OHCC NUMBERS As usual, I'll provide only a compression of OHCC's financial data – the details of which can be found on the OHCC website. What's less usual is that suggestions for change, expansion, further compression, etc. must be sent to my successor. Below are figures from April 30, which define performance that month and also year-to-date: Budget Actual Assets Liabilities Income $645,301 647,455 Total equity $1,064,547 Current $452,596 Expenses 654,628 578,167 Operating cash 1,258,114 Reserves 4,353,949 Surplus (deficit) (9,328) 69,288 Receivables 90,726 Cap imp res 972,868 Other assets 268,303 Retained earnings 995,259 Cash reserves 4,353,948 Current surplus 69,288 Capital improvement 972,868 Total assets 6,843,960 Liabilities+equity 6,843,960 Continued from previous page

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