Dear River Valley Ranch Homeowners,

As we enter another beautiful fall season in River Valley Ranch, it’s time to turn our attention to the proposed budget for 2026. Your management team has been diligently analyzing this year’s financial performance and preparing next year’s plan with a continued focus on maintaining fiscal responsibility, preserving our community assets, and managing costs in a challenging economic environment.

Economic Context
The broader economy continues to feel the effects of inflationary pressure. The Consumer Price Index (CPI) for the twelve months ending August 2025 rose 2.9%, a modest uptick from last year’s level. While inflation has stabilized compared to recent years, several other factors are influencing next year’s proposed dues:

- A slowing real estate market, resulting in fewer Design Review Committee (DRC) applications and real estate transaction-related fees.

- Declining ancillary revenues in general.

- Ancillary revenues are diverse but they consist of all items outside of monthly dues such as DRC revenue (noted above which is a large share), Thompson Corner/ADU membership fees/concession sales, etc.

- Rising insurance premiums, projected to increase by 18% in 2026, consistent with nationwide trends.

Despite these challenges, we continue to prioritize responsible financial management, with the 2025 budget on track to end the year at or near break-even, within 0.5% of budgeted targets.

Proposed 2026 Budget Highlights
The 2026 proposed operational dues increase is 4.9%, reflecting both inflationary pressures and these external cost drivers. Our goal remains to balance affordability with the need to sustain long-term community health.

Key considerations:

1. Operational Dues:  +4.9% overall or $17.00.

 - Driven primarily by insurance, tree canopy maintenance, and declining ancillary revenue.
- Ongoing attention to common area upkeep to prevent deferred maintenance costs.

- An example of this would be Emerald Ash Borer, which is explained more in the Documents linked below.

2. Reserve Fund: +11.8% overall or $10.00

- Current reserve balance (as of Sept. 30, 2025): $5.76 million
- Expected year-end balance: approximately $4.7 million

3. Ranch House Renovation Project:

- The renovation project remains within scope, supported by a $500,000 contingency fund to cover unforeseen costs.

Community Engagement and Next Steps
We encourage all homeowners to review the proposed 2026 budget materials and participate in the upcoming Budget Q&A Sessions:

Following these sessions, the Board will review homeowner feedback at the October 22 Board Meeting, make any necessary adjustments, and then present the final 2026 budget for approval at the November 19 meeting. If approved, the budget will move to a homeowner vote in early December.

Additional Resources
For a detailed look at the proposed 2026 financials and budget timeline see the links below.

- 2026 RVRMA Budget 
- 2026 Old Town Budget 
- 2026 Settlement Budget 
- 2026 Budget Formulation Timeline

We remain grateful for your continued engagement and partnership in shaping the future of River Valley Ranch. Together, we can ensure that our community remains both financially strong and a place we love to live.

Sincerely,

The River Valley Ranch HOA Board Members