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| LIFE IN SOLERA | JUNE 2022 | 3 FROM THE BOARD By Pat King Our Board of Directors take seriously their duty to preserve, maintain and enhance the Common Areas of our Association. We all enjoy living in a gated community with beautiful landscaping, a community pool, three sports courts and the best fitness center in the Pass Area. We share a Clubhouse that allows us to have special community activities, explore new hobbies, and meet with our friends to enjoy good times together. These shared benefits would be too expensive for a single homeowner to own and maintain, but with the expenses divided among 1,290 homeowners, the benefits far outweigh the cost that an individual owner pays on a monthly basis. Our Association has three active 'money' accounts that Keystone Pacific manages for us to ensure that Solera continues to be an inviting place to live. These include our Operating Account (funds used to pay for day-to-day expenses), our Capital Project Account (funds used to pay for new projects) and our Reserve Account (funds set aside for the replacement of major components that our Association is responsible to maintain). Expenses for our Common Areas are shared among all homeowners (past, present and future) to ensure that everyone pays their fair share along the way. These funds go into our Reserve Account which allows our Association to save money over a long period of time to replace these items. Our Reserve Account is treated differently than our Operating funds because these expenses do not occur on a regular basis. Our Operating budget would not be able to absorb a $100,000 expense that pops up. Therefore, saving money over time is the ideal method for funding infrequent reserve expenses and it is the most equitable approach for our community. Over time, homeowners will come and go but the Common Area components will be there indefinitely. Without adequately funded reserves and advance planning, only the owners living in our community at the time a component fails would be responsible for the total cost. If the item was supposed to last 15 years, each owner who benefited from that item over those 15 years should be responsible to pay their fair share. A Reserve Specialist comes to our site every three years to do a Reserve Study and then follows up for the next two years through communication with Management. This study identifies large infrequent projects such as painting our Clubhouse, block walls, perimeter fencing, heaters, HVAC, Roads, etc., and assigns a useful life for the item and a cost for replacement. They put together a responsible funding plan so that all homeowners pay their fair share - no more, no less. Our 2022-2023 budget (Where your monthly assessment goes) includes a monthly contribution of $50,000 to our Reserve account. Our Reserve Account as of June 1 has $3,553,852 in it and, as was reported in our yearly report, the Reserves is currently funded at 59.7 percent. A fully-funded account would be $5,949,488. Most Associations are not fully funded.

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