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2026 Budget Finalization and Inuencing Factors Happy Holidays! As I write this article, the Board of Directors has just finalized and voted on the budget for 2026. Each year, several important considerations shape the budget planning process. The Budget Committee closely examines the Consumer Price Index (CPI), negotiates vendor contracts, and manages the association's reserves to ensure fiscal responsibility and community upkeep. Insurance costs also play a significant role in determining monthly dues, and, like residents, the Association continues to navigate rate changes. Understanding the CPI The CPI serves as a key measure of the average change over time in the prices paid by urban consumers for a standard basket of consumer goods and services. Governments, businesses, and individuals frequently rely on this well-known inf lation indicator to guide their economic choices. The annual percentage change in CPI determines the inf lation rate. In preparing the budget, the Budget Committee utilizes the CPI statistics specifically for the County of Riverside. Inf lation, in basic terms, represents a general increase in prices and a reduction in the purchasing value of money. Vendor Contracts and Budget Impact Vendor contracts make up 88 percent of the overall budget. Per California Civil Code, the Board may only approve contracts up to one year, except for cable or TV deals. As a result, contracts must be renegotiated annually. Key vendors include FirstService, Park West, Pacific Pool Service, and All About Cleaning. The Board has established a policy that contract increases should not exceed three percent. Periodically, the association issues Requests for Proposal to evaluate market rates and ensure competitive pricing for services rendered. Reserves and Community Maintenance Residents visiting our facilities can observe our reserves at work. Over the past year, the pool and decking at The Summit were renovated, a new shower was installed, and the building received a fresh coat of paint inside and out. Similarly, the pool and concrete areas at The Lodge, including the Loggia area and the compass, underwent updates. After the pool heating at The Courts was turned off Oct. 31, the decking around that pool is undergoing renovation. Reserves function much like a savings account. Every association asset is inventoried and assigned a projected lifespan. Annually, the association collaborates with a Reserve Study group to ensure a 30-year funding plan aiming for 100 percent coverage of future expenses. This year, the reserve level stands at 97 percent. As reserves are utilized to maintain the resort-like quality of the community, each asset's lifespan is recalibrated accordingly. New Budget Code: Wildre Legislation Compliance This year, a new budget code was introduced to address emerging wildfire legislation from Sacramento. The allocated funds will be used to remove trees and shrubs at association facilities, in compliance with the zero- to-five-foot clearance rule. The newly-formed Ad Hoc Wildfire Mitigation Committee will be sharing further updates with the community in the coming months. 2026 Dues Overview The question on everyone's mind concerns the new dues for 2026. The Primary assessment, which applies to all 1,853 homes, will increase from $298 to $321, an increase of $23. The Front Yard Cost Center will see an increase from $92 to $101, in addition to the primary rate, amounting to a $9 difference. Springdale homes have a different fee structure, as they pay for their insurance separately, and rates vary by Springdale plan. These increases are also in addition to the primary rate: • Plan One: $172.89, an increase of $26.56 • Plan Two: $189.17, an increase of $29.76 • Plan Three: $217.73, an increase of $35.37 Upcoming Meetings & Community Engagement The Board extends warm holiday wishes to everyone and looks forward to the year ahead. Board meetings occur every second Thursday at 1 pm in the Ballroom; all are welcome to observe. Per civil code, Board members cannot engage in conversation during homeowner input at these meetings. For those who prefer a more informal setting, "Meet with the Board" sessions are held on the third Wednesday of each month at 2 pm in the Ballroom. These gatherings offer an opportunity for open discussion with Board members on most topics, except for those currently under litigation. If you have any questions or concerns, please feel free to contact Kathy Craven at kathycravenbod@yahoo.com or (714) 722-1301. FOUR SEASONS BREEZE | DECEMBER 2025 5 Message from the Board By Kathy Craven, Board Vice President

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