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FOUR SEASONS AT TERRA LAGO ROADRUNNER | OCTOBER 2026 3 By Dave Adler, FSTL Board Treasurer As we continue preparing the Four Seasons at Terra Lago HOA's 2027 budget, one of the most important challenges we face is understanding the rising cost of providing services to our community. Homeowners oen focus on whether the Association's assessments will increase from one year to the next. at is certainly an important question. However, it is equally important to understand why costs may increase — even when the Association continues providing essentially the same services and level of maintenance. e simple answer is that the cost of doing business continues to change. Many of the services provided to our community are labor- intensive. Landscaping crews, maintenance personnel, security services, janitorial sta, pool and equipment technicians, and other service providers all depend heavily on employees to perform their work. When wages, benets, insurance, training, equipment, and other employment-related costs increase, those increases eventually aect the prices vendors charge the Association. For example, a landscaping contractor may be providing the same number of workers, performing the same services, and visiting the community on the same schedule as the previous year. However, if the contractor's labor costs, fuel costs, equipment expenses, or insurance premiums increase, the cost of that contract may also increase. e same principle applies to many other Association expenses. During the budget process, we review our existing contracts and projected costs rather than simply assuming that last year's budget will be sucient for next year. We evaluate historical expenses, current contracts, anticipated vendor increases, and other factors that may aect the cost of operating the community. is is an important distinction: a higher budget does not necessarily mean the Association is providing more services. Sometimes it simply means that it costs more to provide the same level of service. Of course, that does not mean the Association should automatically accept every proposed increase. Responsible budgeting also requires asking important questions. Can a contract be competitively bid? Are we receiving the level of service we are paying for? Has the scope of work changed? Are there opportunities to improve eciency without reducing the quality of services homeowners expect? e Board and First Service Residential Management Team must balance several important considerations: controlling costs, maintaining the quality and appearance of our community, meeting our contractual and nancial obligations, and planning responsibly for the future. Choosing the lowest-priced service provider is not always the best long-term nancial decision. A lower bid may involve fewer workers, reduced service frequency, or a more limited scope of work. In some cases, reducing costs in the short term can result in deferred maintenance, declining service quality, or higher expenses later. As we develop the 2027 budget, our goal is to carefully evaluate each major expense and understand the factors driving any increases. We will continue to look for opportunities to manage costs responsibly while maintaining the services and amenities that contribute to the quality of life at Four Seasons at Terra Lago. e annual budget is ultimately a balance between the services we expect today and the nancial resources required to provide them. As your Treasurer, I believe transparency is especially important during this process. Homeowners deserve to understand that Association budget increases are not simply numbers on a spreadsheet. Behind each budget line item are the real-world costs of maintaining, servicing, operating, and protecting our community. In the coming month, we will continue working toward a 2027 budget that reects careful nancial planning, responsible cost management, and the long-term interests of Four Seasons at Terra Lago. Treasurer's Message Understanding Rising Service and Labor Costs: An Important Part of Planning Our 2027 Budget

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