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Pinnacle Homeowners Association

Financial Statements

December 31, 2015

Table of Contents

Page # Independent Auditors' Report 1 - 2 Financial Statements Balance Sheet 3 Statement of Revenues and Expenses 4 Statement of Changes in Fund Balances 5 Statement of Cash Flows 6 Notes to Financial Statements 7 - 10 Supplementary Information 11 - 16

Elevated Leadership (801) 224-1900 mycpa.com

INDEPENDENT AUDITORS’ REPORT

To the Board of Directors of The Pinnacle Homeowners Association We have audited the accompanying balance sheet of The Pinnacle Homeowners Association (the Association) as of December 31, 2015, and the related statements of revenues, expenses, and changes in fund balances and cash flows for the year then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audit. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

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Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of The Pinnacle Homeowners Association as of December 31, 2015 and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

Supplementary Information The supplementary information about future repairs and replacements on page 14 is not a required part of the financial statements but is supplementary information required by accounting principles generally accepted in the United States of America. The supplementary information comparing the budget to actual income and expenses, target reserve fund balances on pages 11 – 13 and statement of definition for selected expense accounts on pages 15 – 16 and are not a required part of the financial statements. We have applied certain limited procedures, which consisted principally of inquiries of management regarding the methods of measurement and presentation of the supplementary information. However, we did not audit the information and express no opinion on it.

Information for the year ended December 31, 2014, is presented for comparative purposes only and was extracted from the financial statements presented by fund for that year, on which we expressed an unqualified opinion in our report dated March 9, 2015.

HAWK INS Hawkins is a division of Hawkins Advisors, LC, a Utah Limited Liability Company. Orem, UT March 14, 2016

Total (For Comparative Purposes Only)

Operating Replacement Operating ReplacementFund Fund Fund Fund

Current Assets

Cash, including interest-bearing deposits 513,740$ 724,615$ 348,815$ 723,877$ Assessments receivable, net 8,173 7,813Due from operating fund 481,922 239,652 Prepaid insurance and other assets 545 545Income taxes receivable 700 700

Total current assets 523,158 1,206,537 357,873 963,529

Other Assets

Security boxes 5,000 5,000Accumulated depreciation (5,000) (5,000)

Total other assets

Total assets 523,158$ 1,206,537$ 357,873$ 963,529$

Liabilities

Accounts payable and accrued expenses 38,956$ 44,755$ Assessments received in advance 2,280 73,466Due to replacement fund 481,922 239,652

Total current liabilities 523,158 - 357,873 -

Fund Balances

Undesignated fund balance 168,946$ 60,296$ Designated fund balance - roof 107,500 71,667Designated fund balance - doors 20,640 17,200Designated fund balance - lighting 12,384 10,320Designated fund balance - decks 120,400 100,333Designated fund balance - painting 71,667 35,833Designated fund balance - wood siding 593,400 563,730Designated fund balance - irrigation 28,600 27,300Designated fund balance - landscaping 43,000 40,850Designated fund balance - paving 40,000 36,000

Total fund balances 1,206,537 963,529 Total liabilities and fund balances 523,158$ 1,206,537$ 357,873$ 963,529$


Assets

Liabilities and Fund Balances

2015 2014

December 31, 2015

Balance Sheet

The accompanying notes are an integral part of the financial statements

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2014Replacement & Total (For

Operating Restoration ComparativeFund Fund Total Purposes Only)

RevenuesRegular assessments 738,640$ 738,640$ 732,468$ Interest 737 737 1,006Recovery of bad debt 4,391 4,391 6,658Other late fees, lien fees, transfer fees 2,287 2,287 6,185

Total revenues 746,055 - 746,055 746,317

ExpensesBank charges 16 16 37Cable television 31,294 31,294 32,161Chimney sweeping 2,718 2,718 2,975Christmas decorations 8,680 8,680 9,945Common area cleaning 12,996 12,996 12,996Freeze protection 2,206 2,206 2,003Insurance 48,118 48,118 52,176Landscaping 146,039 146,039 143,254Legal 3,896 3,896 1,610Audit and accounting 7,745 7,745 7,995Property management fee 37,978 37,978 37,232Meetings 530 530 277Office supplies 885 885 1,173Pest control 390 390 542Repairs and maintenance 59,561 59,561 57,600Security 34,412 34,412 34,319Snow removal 62,568 62,568 61,432Shuttle service 13,008 13,008 12,900Trash removal 15,360 15,360 15,359Utilities 8,487 8,487 7,959Window cleaning 6,160 6,160 6,160

Total expenses 503,047 - 503,047 500,105

Excess of revenues over expenses 243,008$ -$ 243,008$ 246,212$


2015

Statement of Revenues and Expenses

Year Ended December 31, 2015


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2014

Roof Doors Lighting Decks Paving Wood Siding Painting Landscaping Irrigation Total (ForOperating Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Reserve Undesignated Comparative

Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Total Purposes Only)

Balance, at January 1 -$ 71,667$ 17,200$ 10,320$ 100,333$ 36,000$ 563,730$ 35,833$ 40,850$ 27,300$ 60,296$ 963,529$ 717,317$ .

Excess of revenues over expenses 243,008$ - - 243,008 246,212

- Use of reserve funds -

- Fund transfers (243,008) 35,833 3,440 2,064 20,067 4,000 29,670 35,834 2,150 1,300 108,650 -$

Balance, at December 31 $ 107,500$ 20,640$ 12,384$ 120,400$ 40,000$ 593,400$ 71,667$ 43,000$ 28,600$ 168,946$ 1,206,537$ 963,529$

2015



Statement of Changes in Fund Balances


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Total (ForComparative

Purposes Only)2015 2014

Cash flows from operating activitiesExcess of revenues over expenses 243,008$ 246,212$

Interest income (737) (1,006)

Changes in assets and liabilitiesDecrease (increase) in receivables (359) 11,065 Decrease in prepaid and other assets - 4,623 Increase (decrease) in payables (5,800) 3,441 Increase (decrease) in assessments received in advance (71,186) 71,382

Net cash provided byoperating activities 164,926 335,717

Cash flows from investing activitiesInterest income 737 1,006

Net cash provided byinvesting activities 737 1,006

Net increase in cash and cash equivalents 165,663 336,723

Cash, at January 1 1,072,692 735,969

Cash, at December 31 1,238,355$ 1,072,692$ -$

Supplemental DisclosuresCash payments for income taxes during 2015 totaled $0.Cash payments for finance and interest expense during 2015 totaled $0.


Statement of Cash Flows



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Notes to Financial Statements

December 31, 2015

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Note 1 - Nature of Organization

The Pinnacle Homeowners Association ("Association") is a statutory condominium association incorporated in the State of Utah on December 6, 1982. The Association is responsible for the operation and maintenance of the common property of the Association. The Association consists of 86 residential units located on approximately 39 acres in Park City, Utah. Note 2 - Summary of Significant Accounting Policies

Fund Accounting

The Association's governing documents provide certain guidelines for governing its financial activities. To ensure observance of limitations and restrictions on the use of financial resources, the Association maintains its accounts using fund accounting. Financial resources are classified for accounting and reporting purposes in the following funds established according to their nature and purpose:

Operating Fund - This fund is used to account for financial resources available for the general operations of the Association.

Replacement and Restoration Funds - These funds are used to accumulate financial resources designated for future major repairs, replacements and exterior restoration projects. Ten such funds are currently established: Undesignated, Painting, Paving, Wood Siding, Landscaping, Irrigation, Roof, Doors, Lighting, and Decks (See Note 4).

Comparative Totals

Comparative total information for the prior year has been provided in the financial statements to provide an understanding of changes in financial position and operations of the Association. Member Assessments

Association members are subject to quarterly assessments, at the beginning of each quarter, to provide funds for the Association's operating expenses, future capital acquisitions, and major repairs and replacements. Assessments receivable at the balance sheet date represent assessments due from unit owners. The Association's policy is to retain legal counsel and place liens on the properties of homeowners whose assessments are delinquent, which minimizes doubtful accounts. Assessments are considered delinquent after 60 days of nonpayment. The allowance is based on a review of individual account balances. Uncollectible accounts are charged to the allowance account when collection appears doubtful. Financing charges are applied to the homeowner’s account if dues are thirty days past due. Any excess assessments at year end are retained by the Association for use in future years. Pursuant to the Condominium Declaration and Bylaws of the Association, dues are allocated to the unit owners on the basis of their relative ownership interests in the condominium property.



December 31, 2015

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Note 2 - Summary of Significant Accounting Policies (Continued)

Income Taxes

In 2015, the Association filed as a Homeowners Association in accordance with Internal Revenue Service Code section 528. Under that section, the Association excludes from taxation exempt function income, which generally consists of revenue from uniform assessments to owners. The Association's investment interest and dividends were subject to tax. The Association is generally subject to income tax examinations by U.S. federal, state, or local tax authorities for up to three years.

Property and Common Areas

Real property and common areas acquired from the developer and related improvements to such property are not recorded in the Association's financial statement because those properties are owned by the individual unit owners in common and not by the Association (See Note 8). Depreciation

Equipment is depreciated using the straight-line method, over the estimated useful lives of the assets. Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Fair Value of Financial Instruments

The carrying amounts reported in the accompanying balance sheet for cash, assessments receivable and accounts payable approximate fair values because of the immediate or short-term maturities of these financial instruments.

Note 3 - Cash

The Association considers all short-term investments purchased with a maturity of three months or less to be cash equivalents. The Association maintains bank accounts which, at times, may exceed federally insured limits. The Association has not experienced any losses in such accounts.



December 31, 2015

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Note 4 - Future Major Repairs and Replacements

The Association’s governing documents require funds to be accumulated for future major repairs and replacements. Funds are being accumulated based on estimated future costs and actual costs may vary from those estimates and the variations may be material. Accumulated funds were $1,206,537 at December 31, 2015. The board has conducted their own study to estimate the remaining useful lives and the replacement costs of the common property components. A majority of the unit owners voted not to fund the Association’s future needs for major repairs and replacements through increased systematic assessments. Therefore, amounts are being accumulated in the replacement fund based on reserve guidelines established by the board (See Note 9). Should these funds not be adequate to meet future needs, the Association has the right to increase regular annual dues, pass special assessments, or delay major repairs and replacements until funds are available.

Note 5 - Managing Agent

Burnside Property Maintenance Company was retained as managing agent for 2015. The management company was paid a fee of $36.80 per unit, per month, as management fees through January 2015. Burnside Property Maintenance Company also provided repairs and maintenance and supervisory of subcontractor services to the Association during the year. Note 6 - Special Assessment

No special assessments were made during the year to the homeowners. Note 7 - Revenue Concentration

Annual dues and assessments charged to the homeowners of the Pinnacle Homeowners Association comprise 99% of the total revenues for 2015. The remainder of the income is attributable to interest income, finance charges, and bad debt recovery. Note 8 - Common Property

Common property to which the Association holds title, but are not recognized as assets on the balance sheet include the gatehouse (996 sq. ft), the gatehouse furnishings, landscaped areas (including irrigation systems), and roads. The Association has no existing land or recreation leases. The Association is responsible for normal maintenance, repair, or replacement of common areas and facilities (including limited common areas). Major repairs to limited common areas are the responsibility of the unit owners.



December 31, 2015

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Note 8 - Common Property (Continued)

The Board of Directors may dispose of items of personal property for cash or claims to cash with the Association retaining the proceeds; however, to dispose of real property the directors must obtain the approval of the owners in accordance with the Declaration of Condominium, Covenants, Conditions, and Restrictions and a percentage of the mortgagees. The Association property, real, personal, or mixed, may not be used by the Association to generate significant cash flows from members on the basis of usage or from homeowners. The property is for the use and benefit of the owners (members of the Association). Note 9 - Reserve Funds

Per Utah law requirements, the Association has conducted a reserve analysis determining the needs of the association to accumulate money to cover the cost of repairing, replacing, and restoring common areas and facilities that have a useful life of three years or more. Costs that can be reasonably funded from the association’s general budget or from other association funds were excluded. The study includes the appropriate amount of reserve funds including target levels of reserves versus actual levels of reserves.

The Association appropriately maintains reserve funds separate from other funds of the association. Moneys in this fund are not used for daily maintenance expenses or for any purpose other than the purpose for which the reserve fund was established, unless a majority of the members of the association of unit owners vote to approve the use of reserve fund money for that purpose. Note 10 - Subsequent Events

Subsequent events were evaluated by management through March 14, 2016, which is the date the financial statements were available to be issued. However, there are no subsequent events to disclose.

Supplementary Information

VarianceFavorable

Budget Actual (Unfavorable)Revenues

3020 Association dues 740,708$ 738,640$ (2,068)$ 3029 Finance charges 3,000 2,267 (733) 3030 Interest income 800 737 (63) 3045 Recovery of bad debt - 4,391 4,391 5029 Returned check charges - 20 20

Total revenues 744,508 746,055 (2,864)

Expenses4000 Management fees 37,975 37,978 (3) 4001 Legal expenses-misc 3,000 3,896 (896) 4003 Bad debt expense 2,000 - 2,000 4005 Audit expense 8,500 7,745 755 4006 Long distance phone chgs 2,400 2,400 - 4008 Postage expense 600 498 102 4009 Bank charges 150 16 134 4010 Office supplies / xerox 200 387 (187) 4012 Insurance expense-coverage 48,117 48,118 (1) 4014 Insurance expense - deductible 2,500 - 2,500 4018 Meeting expense 600 530 70 4020 Water-sprinklers (1) 65,000 57,384 7,616 4021 Sprinkler repairs 10,000 12,016 (2,016) 4022 Utah power-electricity 5,000 4,811 189 4024 Trash removal 15,360 15,360 - 4025 Cable television 33,912 31,294 2,618 4026 Gatehouse utilities 800 1,276 (476) 4028 Pest control 5,000 390 4,610 4031 Landscaping maintenance 67,500 69,436 (1,936) 4032 Landscaping repairs 10,000 7,203 2,797 4033 Landscaping improvements (2) 5,000 - 5,000 4034 Common area cleaning 13,000 12,996 4 4035 Ext. paint touch-up (3) 7,500 1,885 5,615 4039 Shuttle bus 15,588 13,008 2,580 4040 Security patrol 35,000 34,412 588 4041 Fire sprinkler inspection (4) 10,000 2,201 7,799 4042 Fire sprinkler repairs (5) 5,000 12,622 (7,622) 4052 R&M plumbing repairs 3,000 557 2,443 4053 Water damage repairs (6) 6,000 1,485 4,515 4054 R&M sewer & drain maintenance 1,000 364 636 4055 Window/screen replacement 1,000 - 1,000 4056 R&M siding & bldg repair (7) 10,000 5,037 4,963 4057 R&M roof repairs (7) 15,000 7,364 7,636 4059 R&M electrical repairs (7) 6,000 578 5,422 4060 Light bulb replacement 3,500 1,975 1,525 4061 Sidewalk & driveway repair (8) 10,000 16,672 (6,672) 4062 Exterior garage & door repair 1,000 481 519 4067 Christmas decorations 10,000 8,680 1,320 4068 Chimney sweeping 3,000 2,718 282 4069 Window washing 6,500 6,160 340 4070 Driveway snow removal (9) 55,000 46,403 8,597

Pinnacle Homeowners AssociationBudget to Actual (Unaudited)


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VarianceFavorable

Budget Actual (Unfavorable)

Pinnacle Homeowners AssociationBudget to Actual (Unaudited)


4071 Snow removal-pathways (9) 25,000 16,165 8,835 4075 Freeze protection (9) 8,500 2,206 6,294 4085 Miscellaneous expenses 4,240 265 3,975 4093 Nitrogen bottles 7,000 7,980 (980) 4095 Dryer vent repair 500 45 455 4096 Front door repair 2,000 50 1,950

Total expenses 587,942 503,047 84,895

Excess of revenues over expenses 156,566$ 243,008$ 86,442$

Budgeted revenues transferred to(from): (10)Roof reserves 37,983$ 35,833$ Doors reserves 3,853 3,440 Lighting reserves 2,312 2,064 Streets reserves 4,800 4,000 Wood siding reserves 41,538 29,670 Decks - sealing and maintenance reserves 22,475 20,067 Painting reserves 37,998 35,834 Landscaping reserves 3,010 2,150 Irrigation reserves 1,872 1,300 Undesignated 725 108,650

156,566$ 243,008$

(1)

(2)

(3)

(4)

(5)

(6)

(7) The lighter snow in winter resulted in less repairs to properties than were originally anticipated.

(8) In 2015, several garage floors unexpectedly needed to be repaired or replaced.

(9) The lighter snow in winter resulted in lower snow removal and associated costs.

(10) The Association had budgeted to add $156,566 to replacement and operating funds during 2015. Actual excess of revenues over expenses available to build the reserve funds were $243,008. The increased amount available to add to the replacement and operating funds was primarily due to actual expenses not being as high as they were budgeted for. No replacement funds were used for major projects during 2015.

There was significant painting performed in 2014 resulting in less touch-ups being needed in 2015.

Management switched inspection companies in 2015 resulting in a lower inspection cost.

There were unanticipated repairs performed on the fire sprinklers in 2015 including the draining and replacement of several systems.

The lighter snow in winter resulted in less water damage to properties.

The typical landscaping repairs coordinated with a third party were not performed in 2015.

In 2015, a wetter spring and summer resulted in less wear on the sprinklers.

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Components

Estimated Remaining

Useful Lives

Estimated Current

Replacement Costs

Target Fund Balance at 12/31/15

2016 Target Build

Amount in Fund

Balances (7)

2016 Proposed

(Decrease) in Fund

Balances

Target Fund Balance at 12/31/16

Designated Funds:Streets Reserves (1) 5 120,000$ 80,000$ 9,760$ 89,760$ Wood Siding Reserves (2) 10 1,780,200 1,186,800 84,263 1,271,063 Decks/railings- sealing and 24 1,204,000 240,800 45,752 286,552 maintenance Reserves (3) - Painting Reserves (4) 4 430,000 143,333 77,429 220,762 Roof (5) 27 2,150,000 215,000 77,400 292,400 Garage Doors, Front Doors 19 172,000 41,280 7,843 49,123 Building Lights, Luminaries 19 103,200 24,768 4,706 29,474 Landscaping - Trees, bushes, etc (6) 8 43,000 29,240 2,339 31,579 Landscaping - Hardscape (6) 3 64,500 56,760 3,767 60,527 Irrigation 3 65,000 57,200 3,796 60,996 Gatehouse 52 200,000 26,667 3,933 30,600

6,331,900$ 2,101,848$ 320,988$ -$ 2,422,836$

The Pinnacle Homeowners Association's board of directors has reviewed and revised the reserve analysis which estimates the remaining useful lives and the replacement costs of the components of common property. These estimates were based on current estimated replacement costs as of December 31, 2015.

The following table is based on the board members' estimates and presents significant information about the components of common property. The schedule illustratestargeted fund balances based on estimated useful life and replacement cost, actual amounts may vary.

(2) $1.5 million was spent on siding and painting during the restoration project which ended in 2002. We expect the remaining life of the wood siding to be 10 years.

Target Reserve (Reserve Study)

(4) $389,229 was spent on painting in the fall of 2013 and is expected to have a remaining useful life of 4 years.

(3) The decks and railings were replaced as part of the exterior upgrade project in 2007 and 2008.

(6) $40,253 was spent in 2011 to improve the landscaping. The useful life is expected to be 8 years for the foliage and 3 years for the hardscape. Expenses relating to these items are incurred throughout the useful life.

(5) Roof replacement is being funded over 30 years.

(7) It is the Board's objective, adopted in 2011, for the operating surplus and the reserve funding to equal 50% of their respective targets. The 50% target represents a balance between funding capital expenditures from dues, based on larger annual increases, versus major assessments at the time of the project. Dues are expected to rise commensurate with the rate of inflation.

Pinnacle Homeowners AssociationSupplementary Information on Future

Major Repairs and Replacements (Unaudited)

December 31, 2015

(1) $19,208 was spent in 2010 to repave and reseal the roads.

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Components

Estimated Remaining

Useful Lives

Estimated Current

Replacement Costs

Fund Balance at

12/31/15

2016 Budget Build

Amount in Fund

Balances (7)

2016 Proposed (Decrease)

in Fund Balances

Budgeted Fund

Balance at 12/31/16

Designated Funds:Streets Reserves (1) 5 120,000$ 40,000$ 4,880$ 44,880$ Wood Siding Reserves (2) 10 1,780,200 593,400 42,131 635,531 Decks/railings- sealing and 24 1,204,000 120,400 22,876 143,276 maintenance Reserves (3) - - - Painting Reserves (4) 4 430,000 71,667 38,714 110,381 Roof (5) 27 2,150,000 107,500 38,700 146,200 Garage Doors, Front Doors 19 172,000 20,640 3,922 24,562 Building Lights, Luminaries 19 103,200 12,384 2,353 14,737 Landscaping - Trees, bushes, etc (6) 8 43,000 14,620 1,170 15,790 Landscaping - Hardscape (6) 3 64,500 28,380 1,883 30,263 Irrigation 3 65,000 28,600 1,898 30,498 Gatehouse 52 200,000 Undesignated Funds - 168,946 (1,422) 167,524

6,331,900$ 1,206,537$ 157,105$ -$ 1,363,642$

(3) The decks and railings were replaced as part of the exterior upgrade project in 2007 and 2008.

(4) $389,229 was spent on painting in the fall of 2013 and is expected to have a remaining useful life of 4 years.

(5) Roof replacement is being funded over 30 years.

(6) $40,253 was spent in 2011 to improve the landscaping. The useful life is expected to be 8 years for the foliage and 3 years for the hardscape. Expenses relating to these items are incurred throughout the useful life.

(7) It is the Board's objective, adopted in 2011, for the operating surplus and the reserve funding to equal 50% of their respective targets. The 50% target represents a balance between funding capital expenditures from dues, based on larger annual increases, versus major assessments at the time of the project. Dues are expected to rise commensurate with the rate of inflation.

(1) $19,208 was spent in 2010 to repave and reseal the roads.

(2) $1.5 million was spent on siding and painting during the restoration project which ended in 2002. We expect the remaining life of the wood siding to be 10 years.


Supplementary Information on Future

Major Repairs and Replacements (Unaudited)

December 31, 2015

The Pinnacle Homeowners Association's board of directors has reviewed and revised the reserve analysis which estimates the remaining useful lives and the replacement costs of the components of common property. These estimates were based on current estimated replacement costs as of December 31, 2014.

The following table is based on the board members' estimates and presents significant information about the components of common property. The schedule illustrates budgeted fund balances based on projected net cash flows for 2015. Actual amounts may vary. Any items with expenditures expected within 5 years should be funded or partially funded.

Budgeted Reserve Fund Balances

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Statement of Definition for Selected Expense Accounts

December 31, 2015

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4000 Management Fees Management fee paid for accounting and administrative services such as processing vendor payments, depositing cash receipts, preparing quarterly invoices for homeowners dues and assessments, provide collection services on delinquent accounts, provide monthly financial information to the board members, act as agent on behalf of Pinnacle for various utility companies, respond to title and mortgage companies and other office support to homeowners.

4006 Long Distance Phone Charges

Flat fee of $200 per month is charged to this account for all long distance calls. 4020 Water-Sprinklers

Water usage for the sprinklers paid to Park City Municipal Corporation. 4031 Landscaping Maintenance

Regular mowing, weeding, fertilizing and other day-to-day maintenance of the landscape.

4032 Landscaping Repairs

Replacement of plants, trees, shrubs, borders and other winter damage to landscape. 4034 Common Area Cleaning

Flat fee paid for cleaning 37 acres of common area. 4041 Fire Sprinkler Inspection

Fire sprinkler fee paid for required annual inspection. 4042 Fire Sprinkler Repairs

Repairs and upgrades (compressors) to the fire sprinkler system. 4052 Plumbing Repairs

Repairs to outside plumbing systems and other plumbing within exterior walls. 4053 Water Damage Repairs

Covers repairs from association-responsible water damage. If damage exceeds insurance deductible, then insurance claim will be submitted.

4055 Window Screen Replacement Repairs to outside window screens caused by snow and ice.


Statement of Definition for Selected Expense Accounts

December 31, 2015

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4056 Siding & Building Repairs

Repairs to all outside structure such as siding, handrails, decks or other. 4057 Roof Repairs

Any maintenance to copper roofing (sealing and flashings). 4059 Electrical Repairs

Common area electrical repairs such as street lights and sprinkler system. 4061 Sidewalk & Driveway Repair

Asphalt, curb and gutter repairs. 4068 Chimney Sweeping

Annual cleaning of chimneys. 4075 Freeze Protection

Preventative maintenance for possible frozen pipes or other damage that could be caused by freezing temperatures. Includes temperature checks inside every unit.

4093 Nitrogen Bottles

Cost of nitrogen tanks for fire sprinkler system and the time to install them.

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