October, 2009

To All Ptarmigan Owners:

Budget Meeting
The Ptarmigan Property Owners Association Board held their annual budget planning meeting on October 17, 2009. This year’s budget planning exercise once again provided challenges toward balancing the cost of maintenance fees against value of your vacation ownership interest. The marginally improving economic climate weighed heavily in our decision to allow for a 5% increase in fees for the coming year. Highlights of the 2010 budget are summarized below:

• Recreation fees continue to rise at an anticipated rate of 12%. The various associations continue to investigate the financial viability of constructing a resort-only recreation center. More on that initiative later in this message.
• Maintenance activities, housekeeping, taxes, and general services (utilities, trash removal, etc.) have collectively remained fairly constant over last year.
• Interest income generated from our reserve accounts has continued to fall by 27% over last year due to ever declining interest rates.
• We will realize an almost $23,000 increase in management fees due to a newly structured agreement with the property management company.
• Increasing by $2,200 are legal fees resulting from foreclosure activities that will be more than offset by resale of recovered intervals that are returned via deed back or foreclosure. The association continues to operate at an approximate 7% delinquency rate for maintenance fee payments.
• Reserve revenues will increase 17% in order to bring that account up to levels that will allow for a 6 year coordinated refurbishment schedule of interior amenities and bring some much needed freshness to the units. Look for that activity to occur during shoulder seasons in 2011.
• Annual maintenance fees have been approved at $624 per interval, representing a 5% increase over last year. For those on monthly payment schedules, this represents a $2.42 monthly increase.

Projects Update
A handful of projects have been worked throughout the year as we strive to address the critical near term needs of the units while preserving the reserve fund balance for a comprehensive update beginning in 2011. Rear decks are being power-washed and given a fresh coat of solid-body stain and the unit numbers on the front porches will soon be replaced with material that will be more visible in the dark. The resurfacing of the main parking lot was delayed in 2009 but will be receiving new bids to have that work accomplished in the coming year.

Still under investigation is the viability of jointly owning a Recreation Center with all the associations that would include pool, spa, locker room, and other facilities. The planned structure would be located adjacent to the recently completed All Purpose Building near the tennis courts. The Ptarmigan Board as well as the 7 other Pagosa Resort Associations are in the process of establishing a Limited Liability Corporation to further investigate the financial and legal ramifications of co-owning a facility such as this. Preliminary financial analysis shows an annual cost savings to the Association when compared to fees collected by PLPOA for our use of the current Recreation Center. You can be assured the association would only pursue this activity if were absolutely in the best interests of the Ptarmigan owners to do so.

Closing
Your Board continues in their attempt to balance cost of upkeep against quality of your Ptarmigan Townhouses vacation ownership. Input and feedback from Ptarmigan owners is greatly appreciated and your attendance at any and all of the quarterly meetings is always welcome. To view the current meeting schedule, please visit this page. We would very much like to hear your suggestions and concerns regarding the Association and have established an email account at PtarmiganPOA@comcast.net to facilitate those communications.

Respectfully,

James P. Fernandez
President, Ptarmigan Property Owners Association
PtarmiganPOA@comcast.net