October, 2008

To All Ptarmigan Owners:

Budget Meeting
The Ptarmigan Property Owners Association Board held their annual budget planning meeting on October 18, 2008. Your board continues in their quest to balance revenues against expenses while keeping a careful eye on maintaining, with the intent of increasing, value for each and every owner’s vacation experience. You may recall that last year the board rejected an increase in annual fees and held the line on the previous year’s $550 payment. This year’s budget planning exercise provided challenges toward achieving that end as the current economic climate weighed heavily in our decisions. Highlights of the 2009 budget are summarized below:

• Recreation fees have risen over 21% primarily due to increases levied by the Pagosa Lakes Property Owners Association (PLPOA), including increases for use of the Recreation Center.
• Maintenance activities, housekeeping, and general services (utilities, trash removal, etc.) have increased between 5% and 36% over last year’s budget, due in large part to increases in operating costs, benefits, and energy rates.
• Interest income generated from our reserve accounts has dropped more than 45% over last year due to falling rates.
• The property tax budget has decreased by 32% over last year due to previously anticipated increases that did not materialize.
• Reserve revenues will increase 19% in order to bring that account up to levels that will allow for adequate refurbishment activities and mitigate the need for future special assessment.
• Annual maintenance fees have been approved at $595 per interval, representing an 8.2% increase over last year. For those on monthly payment schedules, this represents a $3.75 monthly increase.

Projects Update
Several improvement and refurbishment projects are being worked over the course of 2008. Higher than normal occupancy levels have pushed completion of some projects later into the year than initially anticipated, but we are assured by resort management that they will be finalized by year end. Included in those activities are:

• Wall control switches for fireplaces
• Air conditioner installation (complete)
• Removal of wallpaper, paint kitchen/bath/spa in A units
• A-Side bedroom dressers
  
• Installation and stain of rear deck steps (complete)

One significant project planned for 2009 is the resurfacing of the parking area where the majority of Ptarmigan units are located. Resort personnel are in process of obtaining bids for the resurfacing which, if approved, would likely be planned for work during the lower occupancy Spring timeframe.

Also on the horizon is the possibility of jointly owning a Recreation Center 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. 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. Stay tuned for future updates on this project.

Financials Summary
The POA balance sheet for month-ending August, 2008:

• Surplus funds are $106,635.90 which is $46,149.10 short of budget.
• Seven (7) weeks have been resold YTD for a net profit of $2,570, which has been added to the reserve account.
• 162 accounts are past due for a total of $262,175.60 in unpaid maintenance and late fees. Approximately 7% of all accounts are in a delinquent state. We are aggressively pursuing deed back and foreclosure proceedings on these accounts.
• Reserve balance is currently $270,163.06

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. We would very much like to hear your suggestions and concerns regarding the Association and have established an email account at PtarmiganPOA@comast.net to facilitate those communications.

Respectfully,

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