CASTLE PINES HOMES ASSOCIATION, INC.

NOTICE OF ANNUAL MEETING OF THE MEMBERS

We are pleased to provide you with this copy of the Castle Pines Homes Association 2015 Annual Report and to advise you that the Association’s Annual Meeting of the Members will be held on:

Monday March 14, 2016

7:00 PM - 9:00 PM Cielo at Castle Pines

485 W Happy Canyon Road, Castle Rock, Colorado 80108

This will be a great time to meet new neighbors, visit with old acquaintances, become more informed about community development and events, provide input to the Board of Directors regarding community decisions, and elect one Director to the Board. We are enclosing for your information:

Notice of Meeting

Meeting Agenda

Minutes of the 2015 Annual Meeting of the Members

2014 Audited Financial Report

2015 Un-audited Financial Report, 2015 Balance Sheet Summary, and 2016 Budget

Candidate Biography

Committee Reports

Proxy Form (Insert)

2015 Board Resolutions

If you are unable to attend the Annual Meeting, please return your proxy by either mailing it in the provided envelope or delivering it to the secured proxy box in the Castle Pines Homes Association office at 688 W Happy Canyon Road, Castle Rock, CO 80108. Proxies may not be dropped off at the gates. We must have a quorum of one-tenth (1/10) of Homes Association members (approximately 180 Homes Association members) to elect a board member, so it is very important that you return your proxy if you cannot be present on March 14, 2016. The name of the nominee submitted by the Nominating Committee is printed on the enclosed proxy form. The Declaration allows additional nominations from the floor on the night of the meeting by any Member. NOTICE IS HEREBY GIVEN THAT THE MEETING OF THE MEMBERS OF THE CASTLE PINES HOMES ASSOCIATION, INC. (THE "ASSOCIATION") WILL BE HELD ON MONDAY, MARCH 14, 2016 AT 7:00 PM MST, AT CIELO AT CASTLE PINES, 485 W HAPPY CANYON ROAD, CASTLE ROCK, COLORADO, FOR THE PURPOSE OF ELECTING ONE (1) MEMBER OF THE BOARD OF DIRECTORS OF THE ASSOCIATION AND CONDUCTING SUCH OTHER BUSINESS AS MAY PROPERLY COME BEFORE THE MEETING. DATED: JANUARY 31, 2016 Mark G. Larson ASSISTANT SECRETARY

CASTLE PINES HOMES ASSOCIATION, INC.

2016 ANNUAL MEETING OF THE MEMBERS

Monday, March 14, 2016 Cielo at Castle Pines

485 W Happy Canyon Road, Castle Rock, Colorado 7:00-9:00 pm

AGENDA

I. CALL TO ORDER/DECLARATION OF QUORUM II. INTRODUCTIONS III. MINUTES: Consideration and Approval of 2015 Annual Meeting Minutes IV. ELECTION OF DIRECTORS V. COMMITTEE RECOGNITION

VI. FINANCIAL REPORT

• 2015 Un-audited Results • 2016 Budget Summary

VII. COMCAST STATUS

VIII. UPDATE ON VILLAGE ISSUES

• Village Activity a. Construction/Development Activity b. New Capital Projects c. Village Enhancements

• North Meadows Extension Project • Lagae Development • Promenade at Castle Rock

IX. CASTLE PINES METROPOLITAN DISTRICT X. ELECTION RESULTS ANNOUNCEMENT

XI. QUESTIONS AND ANSWERS XII. ADJOURNMENT

Minutes of the Castle Pines Homes Association ANNUAL MEETING OF THE MEMBERS

March 16, 2015

The Annual Meeting of the Members of the Castle Pines Homes Association, Inc. was held on Monday, March 16, 2015 at 7:00 pm at Cielo at Castle Pines, 485 W Happy Canyon Road, Castle Rock, CO 80108. Call to Order Linda Battin, President of the Castle Pines Homes Association called the meeting to order at approximately 7:00 pm. Welcome President Battin welcomed the Homes Association Members in attendance, and consulted with the meeting registration staff, declared that there was a quorum present, in person or by proxy, for the conduct of business. Introduction President Battin introduced the Directors in attendance: Terry O’Connor, Al Dugan and Chuck Skinner. Minutes On a motion duly made and seconded, a reading of the minutes was waived and the minutes of the 2014 Annual Meeting of the Members were approved by acclamation. Election-CPHA Board of Directors Director Dugan, Chairperson of the Nominating Committee, called for nominations from the floor. There were no nominations from the floor. Director Dugan introduced Chuck Skinner and Terry O’Connor who were the candidates for the two open seats on the Board of Directors. Each candidate was given five minutes to address the Members of the Homes Association in attendance. Director Dugan then opened the election for the two open seats on the Castle Pines Homes Association Board of Directors. After the ballots were collected Director Dugan declared the election closed. Committee Recognition Director Skinner recognized the Homes Association Committee members for their hard work and dedication to the community. Financial Report Frank Jacobsen, member of the Long Range Planning and Finance Committee, presented the un-audited 2014 financials and the approved 2015 Operating and Capital Budgets. (Note: 2013 audited financials were included in the Annual Meeting Packet mailed to all Homes Association Members.)

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Comcast Status Director Dugan presented an update to the members on renewed contract with Comcast to provide basic digital television service to the community. Update of Village Issues President Battin presented information relating to the following topics:

• Train Whistle Quiet Zone • North Meadows Extension • Development/Local Area Issues Update

o City of Castle Pines o The Promenade of Castle Rock o Village Activity

Announcement of Election Results Director Dugan announced that Computershare had completed the election tabulation and Chuck Skinner and Terry O’Connor were elected to the Castle Pines Homes Association Board of Directors. Questions and Answers President Battin opened the floor for questions. Adjournment President Battin thanked the Members for their attendance. There being no further business to come before the meeting, on a motion duly made and seconded, the meeting was adjourned at approximately 9:00 pm. Respectfully submitted, /S/ Mark G. Larson Secretary to the Meeting Attached: 2015 Annual Meeting of the Members Presentation Slides

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Annual Meeting of the Members

March 16, 2015

TM

Agenda

• Call to Order

• Introduction of Board of Directors

• Approval of 2014 Meeting Minutes

• Election of Directors

• Committee Recognition

• Financial Report

• Comcast Status

• Village Issues Update

• Announcement of Election Results

• Questions and Answers

March 11, 2013March 11, 2013

Castle Pines Homes AssociationBoard of Directors

2014 Annual Meeting Minutes

Election

Al DuganNominating Committee

Board of Directors Election

• Candidates

– Terry O’Connor– Chuck Skinner– Nomination from the Floor

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Village Committees/Groups

Over 90 Village Resident VolunteersCommittees and Groups

– Communications Committee– Design Review Committee– Emergency Services Committee– Enforcement Committee– Events Coordinators– Forest Stewardship Committee– Long Range Planning and Finance Committee– Parks and Recreation Committee– Technology Committee– Tennis Activities Group– Village Reporter Staff– Wildlife Committee – Welcome Group

Village Committees/Groups

Over 90 Village Resident VolunteersCommittees and Groups

–972,000–16,200–$930,000–$50

Design Review Committee

Jim Walker - ChairJack Vickers III

Greg CookAllan Brandt

Alan Forker

Dave Cooper‐Landscape Technician

Bill Holwell‐Landscape TechnicianLinda Matthews‐ Office/DRC Administrator

Communications Committee

Craig Sundquist - ChairLinda Battin

Gina GerkenTracey McCarthy

Juli Mead

Carolyn Frainier – Metro DistrictLisa Goodwin - CPHA

Village ReporterStaff

Tracey McCarthy–EditorJoyce Paloma

Penny SpencerLisa Goodwin

Linda MatthewsGina Gerken

Carolyn FrainierRosemary Nigh

Larry BundyLinda Battin

Aimee GoodrichSuzy Beck

Rick Plotke

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Emergency Services Committee

Brian Hebbard– ChairJackie Sundquist

Jim Florey

Rick Plotke, Chief of Emergency Services

Enforcement Committee

Enforcement Committee

Rusty Mitzner – ChairCharles Malone

Susie WindersPhil Adamson

Parks and Recreation Committee

Vic Pluto– Chair Larry Bundy

Ned SundermannBeverly Carr

Lisa VossWendy Ingraham

Dan Barry

Wildlife Committee

Gina Gerken – Chair Lilli Almon

Bob JondleDave Butz

Ron WestLisa Marquardt

Ilene O’MearaPauline Carabelli

Linda DempsterArlene Raskin

Forest Stewardship Committee

Stephen Cain– Chair Guy Casey

Jim HuffmanAlan Forker

Suzy BeckJack Hummel

Dave Cooper – CPHA Mike Bahm – Forestry Consultant

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Long Range Planning and Finance Committee

Len Jacob – ChairJim Lovell

Bill SmithDon Watson

Frank JacobsenBruce Campbell

Carol Tilton ‐ CPHA

Technology Committee

Mark Jost - ChairBenjamin Chao

John HemmerTim Ostrowski

Events Coordinators

Vic Pluto - Chair

Jill SkinnerElizabeth HansenJim DodsonLisa VossCarolyn FrainierSylvia Bolanos-RogersAmy ShanahanSusan Clifford

Karl KruegerJerry EddyTracey McCarthyTim McCarthyRich KlineBev CarrWendy Ingraham

Welcome Group

Susan Clifford - ChairCarol Kingery

Dale SattlerMichelle Volkl

Terri SundermannJean Hornor

Jan Jacob

Tennis Activities Group

Jerry Eddy - ChairMark Rousseau

Chuck SkinnerLarry Bundy

Linda HansonLou Webb

Julie BerrisElizabeth Hansen

Carol LailEd Hines

Steve Marx

Thank YouFor 

Your Time, Dedication, and EffortsFor The 

Castle Pines Village Community

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Financial Overview

Frank JacobsenLong Range Planning and Finance Committee

Financial Status of the Village

• The Village is Financially Sound

• Our Reserves Are Adequate to Maintain and Replace Assets as Needed

• Delinquent Assessment Accounts Continue to Decline

2014 Actual vs. Budget Summary

Budget          Actual*Revenue $ 5,148          $ 5,287

Expenses                        4,602             4,505

Net 546                         782

Reserve Funding              535                         535

Operating Profit/Loss       11 247

($000’s)

*Unaudited‐ Excludes Pass Thru Revenue and Expense of $104

2015 Budget Summary

Revenue $ 5,283.7 (1%)

Expenses     4,622.5 3%       

Net 661.2 (16%)             

Reserve Funding              494.8      (8%)

Operating Profit               166.4          (30%)

($000’s)

% Increase/Decrease from 2014

Where Are My Assessment Dollars Spent?

10%9%

3%

($000’s)

4%

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2015 Outlook

• The Year Starts in a Sound Financial Position

• The Monies are Available to Fund our Capital Projects

• We Start the Year with 1781 Dues Paying Lots

Comcast Agreement

Al DuganBoard of Directors

Comcast Bulk Rate Agreement

• Homes Association pays $25/Month for each house in Village

• 140+ “TV” channels

• Internet, Phone are not included

• Current 5 Year Agreement ends April 30, 2015

Board Considerations

• Technology Rapidly Driving Changes

• 25% of Village Residents use ‘Other’ Providers

• Is it Time for Board to STOP Deciding How to Spend Your Money for “TV” Programming?

Comcast Status

•The Board has extended the current agreement until April 30, 2016.

– No Increase in Bulk Rate

– Agreement to Jointly Resolve Current Issues our Residents Experience with Comcast

– Allows Residents to be “Alerted” to Possible Future Scenarios

Board Options

• Continue with Comcast

• Consider Dish, Direct TV, Others

• Discontinue providing TV Programing– Lower HA Budget and Hence Dues by the Appropriate

Amount– Residents choose How and What Programming they want.

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What Should You Do?

• Start Becoming Familiar with the Array of Product Offering From Comcast, Dish, Direct TV,

• Think About how you Would Like to Receive “Programming” in the Future, Cable, Satellite, Internet (streaming), Antenna.

• Be Prepared for Possible Elimination of the Bulk Rate Agreement in May 2016.

• PROVIDE FEEDBACK TO BOARD.

Village Issues

Linda BattinPresident

Castle Pines Homes Association

Topics

• Village Activities–Construction Activity–Train Whistles–Capital Projects–2015 Trail Plan–Gate 2 Guard House

• North Meadows Extension

• City of Castle Pines/Lagae Development

• Promenade at Castle Rock\

Village Activity

Village Build Out

• 2,800 Acres

• Currently ~1,556 Completed Homes

• Projected Build Out ~1,900 Homes

Village Building Activity

Year COs Issued Closings–2007 98 213–2008 63 105–2009 11 77–2010 9 102–2011 2 112–2012 10 120–2013 16 146–2014 38 158–2015 5* 33*

• Currently 52 New Homes in DRC/Construction Process

*Year to Date

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Gate 2

Gate 4Gate 3

Gate 5

Gate 1

MajorDevelopment

Areas

Taylor Morrison52 Alternative Lots

“The Settlement”12 Custom Lots

8 CustomLots

35 Alternative Lots

2015 Capital Improvements

• Planned Village Facilities Maintenance– Fitness Center Pool Surface Maintenance– Canyon Club Pocket Park Play Structure– Trail Maintenance

• Planned New Capital– Extension of Trail System– Asphalt Paving of Trail Inside Gate 3– Additional Tennis Court– Gate 2 Gate House

Cliff Gate to Summit Club

Change from CrushedAsphalt to Hard Surface

Along CastlePines Drive South

2015 Trail Projects

Railroad Quiet Zone

Castle PinesVillage

Summit Club

PrivateCrossing

Wayside Horn

Apartments/Condos

AtriumDrive

Railroad Quiet Zone• Effective November 25, 2014

• One-Year Probation Ends November 25, 2015

• Ongoing Efforts by County and FRA to Enforce Quiet Zone

• North Meadows Extension Construction–Causing Whistle Activity During Construction Hours

• Train Engineers can Blow Horns for Safety Concerns

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Thank You • Don Somsky

• Ron Page

• Steve Marx

• Dave and Terri Butz

• Karl Davis

• Jim Walker

• Sean Owens - Douglas County

North Meadows Extension

Castle Pines Village

Gate 4

Factory OutletMall

North Meadows Extension

Promenade

Happy Canyon

Raised Intersection atCorner of Santa Fe and

Castlegate Drive

13+ Acre ParcelPurchased by Castle Rock

Under PassIntersection at

I-25

North Meadows Extension

• North Meadows Roadway–Initially Two Lane Roadway

• Asphalt Construction• Expanded to Four Lanes in Future (Date Unknown)• Raised Intersection at Santa Fe• Underpass at I-25• Speed Limit of 35 MPH

– Initially 10,000 Vehicle Trips per Day

• Anticipated Completion Summer 2016

North Meadows Extension

•CPHA Goals:

–Minimize Impacts of Roadway on Castle Pines Village

–Pursue Funding Opportunities to Mitigate Impacts

– Influence Future Development of 13-Acre Parcel (Zoned Multi-Family w/Supporting Commercial)

North Meadows Extension

• Where are We Now?

– $589,800 Contribution from Douglas County to Fund Visual Screening

– Engineering Firm has Created Landscape Plans

– 13-Acre Parcel• Purchased by Town of Castle Rock• Letter of Intent from Castle Rock for Conservation Easement to Protect

Against Future Development– Between Douglas County and Town of Castle Rock

• Property Rezoned to Open Space on March 3, 2015

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City of Castle PinesDevelopment The Canyons

Lagae Ranch

Town Center

Castle Pines Village

City of Castle PinesThe Canyons Development

• The Canyons• 3,343 Acres• 20 Acres for Civic Uses• 4 Acres for a Transit Station• 1.5 Acres for a Fire Station• 2,500 Dwelling/Residential Units• 2.1 Million Square Feet of Mixed Use/Non-Residential• 113 Acres of Public Parks• 50 Acres of Public Schools• 1,400 Acres of Open Space

• Status• 800 Single-Family Units to be Platted this Year

The Canyons

Lagae Ranch

Town Center

Castle Pines Village

City of Castle PinesLagae Ranch Planned Development

• Lagae Ranch• 231 Single-Family Units• 400 Multi-Family Units• 400,000 Sq. Ft. Civic/Commercial• 76 Acres Open Space

• Status• 231 SF Units Owned by Lennar Builders• Delayed Due to Corp of Engineer Drainage Improvements

The Canyons

Lagae Ranch

Town Center

Castle Pines Village

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City of Castle PinesCastle Pines Town Center

• Castle Pines Town Center• 475 Single-Family Units• 200 Multi-Family Units• 500,000 Mixed-Use/Non-Residential• 92 Acres Open Space

• Status• 164 Single-Family Units Owned by Taylor Morrison• 156 Single-Family Units Potential Buyer

Gate 5

Lagae Development

• Infrastructure Requirements•Construct Sewer Line Under Happy Canyon Road

•Rerouting of Lagae Road

•City of Castle Pines Prefers New Road Over Phasing

•Local Road Construction

• Village Issues •Continuous Gate 5 Access

•Buffer for Summit Residents

•Impact of Happy Canyon Road Traffic

Promenade atCastle Rock

Promenade at Castle Rock

Castle Pines Village 13 Acres

Outlet Mall

Lowe’s

RoundaboutPromenade at Castle Rock

• Alberta Development Partners– Developers of Streets at Southglen Mall in

Centennial• 166.57 Acre Parcel Between I-25 and U.S.

Highway 85 • 1M+ Square Feet of Commercial Space• 360 Multi-Family Units• Castle Rock Town Council Approval March

2015

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Promenade at Castle Rock

Outlet Mall

Lowe’s

Metro District

• Paul Dannels District Manager

Castle Pines Metropolitan District Board• Karl Krueger President• Dick Munday Secretary• Craig Sundquist Vice-President• Bob Tomz Treasurer• Ralph Yarusso Director

Election Results

Chuck Skinner

Terry O’Connor

Questions?

Operating

Fund

Reserve

Fund Total

2013 Total

(comparative

purposes only)

Assets

Cash 918,197$ 325,229$ 1,243,426$ 765,197$

Certificates of deposit 100,000 1,673,172 1,773,172 1,420,465

Accounts receivable - members, net of

allowance for doubtful accounts of $406,841

and $404,739 in 2014 and 2013, respectively 206,037 206,037 409,763

Other accounts receivable 20,493 20,493 5,267

Prepaid insurance 32,544 32,544 30,987

Prepaid expenses and other 16,776 16,776 13,314

Transponder inventory 22,892 22,892 25,688

1,316,939 1,998,401 3,315,340 2,670,681

Property and equipment:

Buildings and building improvements 6,612,937 6,612,937 6,577,379

Office building 2,108,728 2,108,728 2,100,228

Furniture and equipment 1,366,754 1,366,754 1,158,626

Land and land improvements 957,268 957,268 925,868

Vehicles 177,294 177,294 170,572

Accumulated depreciation (5,152,139) (5,152,139) (4,782,168)

Property and equipment, net 6,070,842 6,070,842 6,150,505

Total Assets 7,387,781$ 1,998,401$ 9,386,182$ 8,821,186$

Liabilities

Accounts payable and accrued liabilities 174,831$ -$ 174,831$ 89,808$

Assessments received in advance 237,455 237,455 132,338

Total Liabilities 412,286 - 412,286 222,146

Contingencies (Note 9)

Fund Balances

Fund balances 6,975,495 1,998,401 8,973,896 8,599,040

Total Liabilities and Fund Balances 7,387,781$ 1,998,401$ 9,386,182$ 8,821,186$

Castle Pines Homes Association, Inc.

Balance Sheet

As of December 31, 2014

See Notes to Financial Statements 3

CASTLE PINES HA - BALANCE SHEET @ YEAR END 2015

ASSETS:

CASH: Operating Cash 830.2$ Reserve Cash 2,190.7$

Total Cash 3,020.9$ RECEIVABLES:Accounts Receivable 372.8$ Less: Allowance for Bad Debt (98.4)$

Total Receivables 274.4$

ASSETS:Other Assets 101.9$ Fixed Assets 12,105.5$ Less: Accumulated Depreciation (5,559.9)$

Total Assets 6,647.5$

TOTAL ASSETS 9,942.8$

LIABILITIES & EQUITY:

Total Payables 537.0$ Owner's Equity 9,473.5$ Current Year Net Income (Loss) (67.7)$

9,942.8$ TOTAL LIABILITIES & EQUITY

CASTLE PINES HA - 2015/2016 BUDGET SUMMARY ($000'S)

2015 BUDGET

2015 ACTUAL

2016 BUDGET

REVENUE:Assessment Revenue:Assessments - Custom Lots 3,481.5$ 3,481.2$ 3,485.3$ Assessments - Cluster Lots 1,457.3$ 1,481.9$ 1,482.6$

Total Assessments 4,938.8$ 4,963.1$ 4,967.9$ Other Revenue:DRC Revenue 57.0$ 62.3$ 60.0$ Emergency Services Revenue 85.8$ 82.5$ 85.8$ Other Revenue 202.1$ 218.9$ 174.5$

Total Other Revenues 344.9$ 363.7$ 320.3$

TOTAL REVENUE 5,283.7$ 5,326.8$ 5,288.2$

LABOR EXPENSE:Administrative Labor 438.9$ 427.0$ 436.9$ Emergency Services Labor 1,673.7$ 1,851.6$ 1,983.9$ VLFC Labor 20.7$ 13.3$ 20.3$

Total Labor Expense 2,133.3$ 2,291.9$ 2,441.1$

OPERATING EXPENSE:Administrative Operating Expense 232.4$ 242.5$ 222.7$ Emergency Services Operating 528.1$ 448.8$ 482.5$ DRC Operating 2.2$ 2.0$ 2.4$ Village Lake Operating 82.9$ 89.7$ 86.5$ Community Operations 872.8$ 856.5$ 737.9$ Canyon Club Operating 129.8$ 118.9$ 125.4$ Parks & Recreation - Events 42.8$ 41.6$ 50.0$ Communications Committee 35.7$ 35.0$ 31.6$ Contingency 50.0$ 3.0$ 40.0$ Forest Management 5.2$ 1.5$ 2.0$ CPHA Building 55.2$ 60.9$ 57.4$ Village Landscape & Maintenance 198.5$ 165.1$ 265.3$ Wildlife 4.0$ 3.2$ 3.2$ Meadows Interchange Mitigation 150.0$ 0.7$ 150.0$ Summit Club 99.6$ 97.4$ 106.1$

Total Operating Expense 2,489.2$ 2,166.8$ 2,363.0$

TOTAL LABOR & OPERATIONS 4,622.5$ 4,458.7$ 4,804.1$

OPERATIONS PROFIT/LOSS 661.2$ 868.1$ 484.1$ RESERVE FUNDING FROM OPS (494.8)$ (494.8)$ (400.0)$ PROFIT/LOSS 166.4$ 373.3$ 84.1$ DEPRECIATION (465.0)$ (441.0)$ (420.0)$

NET PROFIT/LOSS (298.6)$ (67.7)$ (335.9)$

LEONARD JACOB 5288 RED PASS WAY, CASTLE ROCK, COLORADO My wife Jan and I moved to Castle Pines Village over 15 years ago and we absolutely love it here. Formerly, I was an executive with Kraft Foods and Miller Brewing Company, and managed a staff of over 200 professionals. I am currently retired. Twelve years ago I joined the Emergency Services Committee and 2010 ended my final term. Eleven years ago, I co-founded the very first Village Finance Committee, have been a member ever since, and for the last five years served as Chairman. In 2010, I was elected to the HA Board of Directors and will finish my second two-year term. I believe that with my background and Village experiences, I can continue to add value as a Board member. I have visibility into the issues facing us as we move forward, and I understand how our Homes Association operates. I have always maintained a good working relationship with the Homes Association staff which, by the way, does a great job serving the community. The major issues facing the Village over the next several years are: 1. The biggest set of issues facing the Village center around the continued growth and

development at our borders. We have been very successful in partnering with Douglas County for financial and other assistance in mitigating the impact of the new roadway along our Southern border. In addition, we have negotiated with the Town of Castle Rock to designate 13 acres as open space adjacent to the Village. Until the roadway and the Promenade commercial development project are completed, however, we will not know the full impact on our residents. The future development of the Lagae property outside Gate 5, the inevitable widening of Santa Fe in the future, and the construction of a pipeline along Happy Canyon Road will also present issues affecting our residents.

2. We are anticipating one or more areas in the Village will be developed with multiple homes sites. We must continue to insure that these projects meet the quality standards of Castle Pines Village and minimize the disruption during the development stages.

3. The Board of Directors must continue the vigorous planning process to insure we have the right amenities in the future to support the continued growth of the Village, and to anticipate future impacts on costs and cash flows.

Leonard Jacob

2015 COMMITTEE ANNUAL REPORTS (In alphabetical order)

DESIGN REVIEW COMMITTEE

The Design Review Committee (DRC) is a five-member Committee created by the Declaration of Covenants of the Village and is responsible for the review and approval of all proposed improvements within the Village. The committee members in 2015 include three members appointed by the Homes Association; Designer Greg Cook, and Village residents Jim Walker and Allan Brandt. The Committee also consists of two members appointed by Aslan Development; Village residents Jack Vickers III and Alan Forker. The primary purpose of the DRC is the protection of the property values and the preservation of the quality of life in the Village by controlling the appearance, condition, and use of the land, buildings, landscapes, and other improvements. The Homes Association wishes to thank the Committee members for their many valuable volunteer hours of service to the DRC and the Community over the past year. Respectfully submitted, //S// Jim Walker, Chairman Design Review Committee

EMERGENCY SERVICES COMMITTEE

The Emergency Services Committee members Brian Hebbard (Chairman), Dale Zeh, Jim Florey, Doug Cooper and Jackie Sundquist met monthly throughout 2015 with Chief Rick Plotke. The Emergency Services Committee meets the second Monday of each month at 9:00 am in the Homes Association conference room. All meetings are open to Village residents with input welcomed. Detailed activity reports, operational issues and a detailed financial review of operating expenses are presented and discussed. The Committee worked extensively revising the Village evacuation plan in conjunction with South Metro Fire Rescue and updating the Policies and Procedures Manual for Emergency Services. The Committee also addressed trespassing issues and recommended additional fencing and longer access control arms at Gates 1, 3, and 5. These improvements were made in the summer of 2015. The areas of greatest concern to Emergency Services remain traffic issues, access control and various forms of trespassing in the Village. Emergency Services continues to respond to greater numbers of calls for service in the Village. This year we responded to 9,120 total calls for service (an increase of 4.6% over last year). Among the highlights were: 83 medical assistance calls (an increase of 18.1% from 2014), 942 homeowner assist calls, 2,761 responses to alarms and 1,684 requests for vacation checks. Between the amount of construction taking place in the Village and the

number of new residents, our gate traffic was 1.68 million transactions. It is the goal of Emergency Services to continue to enhance the quality of life in our Village. Respectfully submitted, //S// Brian Hebbard, Chairman Emergency Services Committee

ENFORCEMENT COMMITTEE

The Enforcement Committee (EC) is appointed by the Board of Directors of the Association, pursuant to the Rules and Regulations and By-Laws of the Association. The Committee had four owner/resident members in 2015 – Rusty Mitzner, Charles Malone, Susie Winders and Phil Adamson. The Enforcement Committee meets monthly to conduct its administrative business and to conduct hearings to determine whether alleged violations of the Covenants in the Castle Pines Declaration and/or the Association Rules and Regulations have occurred and, if so, to impose sanctions including fines or other penalties. The cases include traffic violations, contractor and vendor violations of construction rules such as construction site maintenance and work procedures, violations of requirements for architectural design and landscaping review and approval, and failure to prevent dogs barking or dogs running loose. The Committee imposes fines and other penalties to rectify non-compliance and discourage further non-compliance. The Homes Association General Manager, the Administrator, and the Director of Emergency Services all provide support and administrative services to the Committee including issuance of Notices of Violations, Notices of Non-Compliance with Design Guidelines, and other administrative notices.

For most matters that come before the Enforcement Committee, the Homes Association General Manager and Emergency Services prepare and assist in the presentation of the cases. Individual owners/residents may also submit complaints of non-compliance to the Homes Association General Manager. Respectfully submitted, //S// Susie Winders, Chairman Enforcement Committee

FOREST STEWARDSHIP COMMITTEE

MOUNTAIN PINE BEETLE The Forest Stewardship Committee (FSC) is pleased to report there were no new Mountain Pine Beetle attacks of Village trees in 2015. It has been two years since the last attack was found. While always present in our eco-system, the Ips and Red Turpentine Beetles caused very little damage this year. These beetles primarily attack trees under stress caused by such things as drought, construction related damage and transplantation. Compared to years past, we have had above normal precipitation, little construction and few trees brought into the community. TUSSOCK MOTH The Tussock Moth has attacked several stands of Douglas Fir south of us near Perry Park. The FSC is tracking the movement of this moth as there are many Douglas Fir in the Village. This pest denudes the tops of the Fir, and in many cases, kills them. We are developing a plan, with the assistance of the State Forest Service, to minimize the damage caused by this pest if it comes into the Village. SAW FLY WASP The larvae of the Saw Fly Wasp has denuded Ponderosa Pine in Elbert and El Paso counties over the past several years. Thus far, they have not entered Douglas County. As with the Tussock Moth, we are tracking the movement of this pest and determining how to control it if it comes our way.

NOXIOUS WEED ERADICATION PROGRAM Above normal rainfall over the past three years has contributed to the growth of noxious weeds in the Village. Beginning in April, the FSC will initiate a program that maps noxious weed infestations, controls/eradicates noxious weeds, and educates residents on how to identify and eliminate noxious weeds. The weeds to be targeted include Canada Thistle, Knapweed, Leafy Spurge and Toad Flax. The Forest Stewardship Committee members for 2015 include Jack Hummel, Guy Casey, Jim Huffman, Suzy Beck, Steve Cain and John Paul. Dave Cooper, CPHA Landscape Technician. Unfortunately, Mike Bahm, the longtime forestry consultant to the Committee, passed away this year. Respectfully submitted, //S// Dave Cooper, Chairman Forest Stewardship Committee

LONG RANGE PLANNING AND FINANCE

COMMITTEE

OVERVIEW The Long Range Planning and Finance Committee (LRP&FC) is charged with the recommendation and oversight of both current and long term budgeting and spending in the Village. The Board makes the final decisions on the budget and actual spending. 2014 AUDIT The 2014 outside audit was completed and resulted in another Grade A audit report for the Village. CPHA accountant Carol Tilton maintains the Village records consistent with acceptable HOA accounting practices, and supported with all appropriate documentation. 2015 CAPITAL PROJECTS In 2015, $910,000 was spent on capital projects, of which $285,000 was for replacing or maintaining existing assets (which is funded by the Reserve Fund) and $625,000 was for

new capital expenditures. The new capital expenditures primarily were to extend our trail system ($310,000) and for the construction of a new gate house at Gate 2 ($224,000). 2015 BUDGET 2015 revenue was on budget for the year. Overall, expenses were under budget by $157,000 (excluding depreciation expense). Budgeted mitigation costs of $150,000 for the Meadows Extension project will not be required until 2016. Our operating cash position at the end of 2015 was $830,000 2016 BUDGET Dues for 2016 will continue at the 2015 level. Overall expenses will increase by $390,000 or 8.8%. The increases include $175,000 for the full year operation of the new gate house, $150,000 for the North Meadows Extension project mitigation expenses deferred from 2015, $85,000 for increases for Waste Management due to their no longer providing free pickup for recycling and for the additional new homes, and $99,000 for additional Village landscape projects. The Board approved the elimination of the Village’s Bulk Service agreement with Comcast in midyear 2016 which will result in a reduction in 2016 Comcast expenses of $200,000, and a savings of approximately $450,000 on a full year basis. The 2016 Capital Plan is $841,000, of which $347,000 is for replacing or maintaining existing assets, and $494,000 is for new capital expenditures. New capital projects include expanding our trail system, adding a fifth tennis court, constructing a picnic pavilion, and upgrading one of our gate houses (as part of a multi-year plan to upgrade all gate houses). Each project is approved by the Board when detailed plans are submitted. The strong operating cash position at the end of 2015 and our cash projections are adequate to fund our budgeted operating expenses and new capital projects in 2016.

VILLAGE GROWTH Castle Pines Village ended 2015 with 1610 constructed homes, which represents an increase of 41 homes during the year. Adding 8 platted lots in 2015, which are also responsible for monthly dues, brings the total dues-paying lots in the Village to 1789.

Although in preliminary planning stages, there are two major land tracts in the Village being considered for development in the foreseeable future. The first is inside Gate 3, where approximately 50 new homes are being planned. The second is north and west of our Metro facilities, where approximately 90 new homes are being considered. These tracts have not been platted as of this report.

The final build-out total including additional platted lots is currently estimated at approximately 1950.

RESERVE FUND The 2015 year-end balance of the Village Reserve Fund was $2,188,000. Consistent with the Reserve Study completed in late 2013, this amount is adequate to meet future needs for replacement and/or maintenance of the Village assets. An updated Reserve Study will be completed in 2016.

SUMMARY Castle Pines Village continues to be financially sound with a solid balance sheet, cash flow, and the ability to meet our capital needs in the future.

With the majority of the Village’s infrastructure in place, major future financial expenditures will be focused on maintaining/improving the Village’s existing assets and operations, as well as mitigating, wherever possible, the impact of development surrounding the Village. Although not identified at this time, it is anticipated that this may require expenditures to cover the costs of enhanced security. The one major financial expenditure identified in our Long Range Financial Plan is the expansion of the Canyon Club sometime in the future to accommodate the growth in the Village.

Due to the elimination of the Comcast bulk service agreement, our current long-range financial plan anticipates that our dues will remain constant for the next several years.

Long Range Planning and Finance Committee Members for 2014 include: Len Jacob (Chairman), Bruce Campbell, Frank Jacobsen, Jim Lovell, Bill Smith and Don Watson. Respectfully Submitted, //S// Len Jacob (Chairman)

PARKS AND RECREATION COMMITTEE

Mission Statement The Committee’s mission is to guide the future recreational development of Castle Pines Village through the maintenance of facilities and prudent additions to them, for both the current and projected use by its homeowners. This will be accomplished through recommendations to the Homes Association Board. The Committee provides oversight of existing facilities and new quality construction that: 1) complements the natural environment and beauty of the community, 2) creates minimal disruption of the natural setting, 3) is easy to maintain, 4) receives maximum use by the community, and 5) is fiscally responsible and within budget limitations. Additional oversight responsibilities include maintenance of trails, pocket parks and open space, and the planning and hosting of community events.

In short, we are committed to upholding the “Exceptional Living, Exclusively Colorado” mission of Castle Pines Village.

Canyon Club Pool – 2015 was another successful and safe year for one of our most popular venues, the Canyon Club pool. Going into our eighth year with a new building and pool equipment, the season went by smoothly. We continued to refine the contract and quality of engagement with our lifeguards and lifeguard company. We maintained a reduced

schedule for the guards when school was back in session, which resulted in measurable savings for the community. We’ll continue to consider similar measures for the upcoming summer. The CPV Stingrays swim team had another enjoyable and competitive season. Registration for this summer’s program will start in early April. Summit Club Pool and Pavilion – The Summit Club has a full-sized family pool with a zero-depth entry children’s pool and a slide. In addition to the pool facility, other amenities include a covered picnic area, observation deck with a fire pit and grill, full restroom and changing facilities, and a playing field with soccer and lacrosse nets. The pavilion area at the Summit Club can be reserved by residents after hours, and the key to the fire pit may be obtained from the Homes Association Office. Village Lake Fitness Center and Pool – This facility provides an exercise venue for the Village. It is located at 4300 Prospect Drive, which is on the south side of the Village just east of the Canyon Club. It is an adult only facility. Children ages 16 and 17 may use the facility if accompanied by an adult, however children under 16 are not permitted. Included are an exercise/yoga room, free weights, various exercise and cardio machines, a TRX suspension trainer, and a summer lap pool and hot tub. A variety of fitness classes are offered including Body Sculpting, Bollywood Burn with Zumba, Hatha Yoga, Strength Training, Therapeutic Yoga, and the “Liquid Gym”, which takes place in the pool during the summer. The Fitness Center opens daily at 4:30 AM and closes at 10:00 PM, and a resident access card is required for entry. Community feedback following the 2014 re-launch has been extremely positive, and usage of the facility continues to be very strong, averaging just under 2,200 resident visits per month during 2015. Pocket Parks and Playing Fields – There are three small playgrounds, also known as pocket

parks, inside the Village. Equinox Park is located on the north side of the Village on Country Club Parkway between Anaconda and Equinox. Summit Park is located on Country Club Drive north of the Summit Club pool. The largest pocket park is located at the Canyon Club on the south side of the Village. In 2015 the playground equipment was replaced at the Canyon Club, providing expanded play structures, new swings and the very popular Apollo Spinner! In addition, the old mulch was replaced with a variety that is specifically designed for play areas, and with a greater depth, which adds to the safety of the park. Multi-use playing fields are located at the Summit and Canyon Clubs and may be reserved for team practices. The Parks and Recreation Committee purchases new soccer and lacrosse goals for the fields as needed. The focus for 2016 will be on the continued maintenance and upkeep of the playground equipment, as well as the planning and construction of a Pavilion near the Canyon Club pocket park. It is envisioned that this facility will incorporate a number of the features found at the Summit Club Pavilion, and will become a focal point for resident gatherings on a year ‘round basis. Tennis Complex – 2015 saw a continuing increase in the tennis activity within the Village. The list of residents who have expressed an interest in tennis has grown to 280. A Spring-Fling Kickoff took place in March and was followed by five weekend mixed doubles socials throughout the season. Participation was excellent and the activities were thoroughly enjoyed by all. A resident tournament took place in June with good participation. Women’s and men’s groups reserved courts for practices and open tennis activities throughout the spring, summer and fall. There were also a variety of tennis clinics and private lessons for children, teens, and adults. A similar slate of activities is planned for 2016. During 2015 the Village fielded 38 USTA/Colorado competitive tennis teams. 14 of these teams qualified for the Colorado

District Championships by winning their league. Three of these teams became Colorado State Champions and one team went to Sectionals and competed against the best teams from five other states. The breakdown of the 38 Village teams is: 21 Women’s teams, 11 Men’s teams and six Mixed Doubles teams. 2015 also introduced Junior Team Tennis to the Village for the first time. Teams are formed by age groups and experience levels. This year we had six teams and 24 players between seven and 18 years old. One 11-12 age team won their league and played in the Junior Championships. Construction is under way for an additional tennis court, and repairs to the two sport courts will take place in conjunction with this work. Repairs will include resurfacing the courts, painting the practice backboard, and incorporating a pickle-ball court into the basketball court for multi-use. In sum, between league activity, tennis socials, lessons and clinics, and casual resident play, the Village has become a very active tennis community! Village Trails and Common Space – There are approximately 11 miles of trails within the Village. The majority of the trails are paved with either asphalt or concrete, some are composed of loose recycled asphalt or gravel, and the rest are rustic, natural trails. The routine maintenance of the asphalt trail system in the Village began in 2009 and is based on the Castle Pines Homes Association Reserve Study recommendations. The P&R long range plan approved by the CPHA Board will complete the trail system on the south side of the Village with approximately two miles of new trails. Any new trails are expected to be hard surface solid asphalt. In 2015 the trail inside of Gate 3 was resurfaced and paved with asphalt. New paved trails consistent with the long range plan were installed on the south side of the Village as well as the installation of a new paved asphalt trail connecting the Cliffgate crushed asphalt trail to the Summit Club. In

addition, there were repairs to certain sections of the trail system throughout CPV where large cracks had appeared. For residents’ (and their furry companion’s) convenience, there are 10 “Mutt Mitt” stations along the trails and within the pocket parks. The focus for 2016 will be to complete the trail system on the south side of the Village, as well as the ongoing resurfacing and repaving of those sections requiring maintenance. Village Events - Events are planned for the enjoyment of all Village residents to foster a sense of community and spirit throughout the neighborhood. Events in 2015 included the 3nd annual Winterfest and Chili Cook-Off, the annual Easter Egg Hunt, a Father’s Day BBQ and games at the Canyon Club, a resident reception hosted by and funded in part by the Country Club, the Fourth of July Fun Run, parade and BBQ, two Adult Socials at the Fitness Center, a Kids Triathlon, a Back to School Party at the Summit Club, the Metro District Picnic (which is generously sponsored by the Castle Pines Metropolitan District), and Oktoberfest. We plan to offer similar events in 2016, and are always anxious to have volunteers to assist with running these events. For feedback, suggestions and volunteer interest, please contact the Homes Association office, or use the following e-mail address: parksandrec@castlepinesvillage.org Respectfully submitted, //S// Victor Pluto, Chairman Parks & Recreation Committee

TECHNOLOGY COMMITTEE

Overview The Castle Pines Village Technology Committee (TC) meets monthly on the first Wednesday of the month at 3:30 pm at the CPHA offices. When needed, the Committee also meets at other times to have meetings with vendors regarding technology issues in the Village.

Committee Members Mark Jost, Chairman John Hemmer Benjamin Chao Tim Ostrowski Seshu Velpuri 2015 Committee Member Changes • Seshu Velupri joined the committee in

September. 2015 Accomplishments • In April the TC facilitated the transition from

the on premise Reverse 911 system to a web based service, and at a significant cost savings. A spreadsheet of phone numbers may be uploaded to the service, and in the event of an emergency, the entire community can be contacted within 15 minutes. Use of the service has been expanded to call residents within certain targeted areas of the community in order to communicate special notifications that apply only to that area.

• Reviewed the request to upgrade the ShoreTel phone server. The server upgrade is planned for early 2016.

• Reviewed Building Permitting and Code Inspection software from American Data Group Inc. Recommended installation in first quarter of 2016.

• Provided assistance to the Emergency Services Committee to review other vendor

products to replace the QuickPass application.

• Did research on developing a Wifi system for the Village.

2016 Tasks Include

• Completing replacement of the Reverse 911 system. A new process will be put into place to phone residents yearly to test the system.

• Return to the implementation of the document management application for Design Review since the new servers are now in place.

• Look into options to improve and/or simplify guest access. The goal is to reduce the number of times dispatchers need to add guests to Quick Pass. A possible solution would be an IVR (Integrated Voice Recognition) system which can take verbal responses to create the data to push to Quick Pass.

• Update the Committee handbook to detail all technology items used by the HOA including phone system and lines, computer hardware, application software, alarm system information, and copier information. There is a great wealth of information to absorb for new members of the committee.

Respectfully submitted, //S// Mark Jost, Chairman Technology Committee

VILLAGE COMMUNICATIONS COMMITTEE

The Village Communications Committee (VCC) includes six owner/residents and two administrative employees. The Committee members in 2015 were Craig Sundquist (Chairman), Linda Battin, Susan Clifford, Juli Mead, Gina Gerken, Tracey McCarthy, Lisa Goodwin (Homes Association), and Carolyn Frainier (Metro District).

The Village Communications Committee accomplishments in 2015 include the 13th year of publication of the bi-monthly newsletter, The Village Reporter. The Village Reporter is a high quality newsletter providing relevant and interesting information to CPV residents. Staff members included Editor Tracey McCarthy, Linda Battin, Jim Walker, Suzy Beck, Larry Bundy, Carolyn Frainier, Gina Gerken, Joyce Paloma, Lisa Goodwin, Linda Matthews, Rosemary Nigh, Rick Plotke and Penny Spencer. The Homes Association and the Metro District jointly fund The Village Reporter. In 2015 the VCC also achieved the successful rollout of the newly designed Castle Pines Village website. The website was crafted to include a fresh new look and interface, improved navigations for ease of use, a more robust meeting and events calendar, a secure resident’s page featuring resident-only information, improved graphics and photo slideshows, and a complete listing of the most commonly requested forms and documents. Plans for the website in 2016 include web-enabled documents and easy to use online booking calendars for the playing fields, the Community Room and the tennis courts. In 2015 the VCC in partnership with a third party apparel vendor worked to design an exclusive Castle Pines Village apparel web page that can only be accessed through the resident’s page of the CPV website. A variety of top quality, name brand apparel options were selected including golf polo shirts, golf hats, pullovers and duffel bags. The Homes Association does not receive any remuneration from this site, instead all sales are channeled to the 3rd party vendor who handles order placement, payment and order fulfillment. In 2015 the VCC continued to produce and provide the CPHA community brochures. This brochure is available to potential homebuyers that are denied access at gate entrances. The brochure is also available on the CPHA website for printing. The VCC continued to provide timely communications through the use of e-blast, website, Channel 22 and gate signs.

Plans for 2016 include adding two new committee members to replace two members leaving the committee, the update of all of the gate house gate signs, and consideration of a replacement for Channel 22. The Welcome Group members include Susan Clifford, Jan Jacob, Carol Kingery, Dale Sattler, Michelle Volkl, Jean Hornor and Terri Sundermann. New resident welcome receptions were held at the Country Club at Castle Pines (CCCP) on February 4th, May 7th, August 14th and November 4th; 123 new residents attended, many welcome bags were delivered to homes, and almost all of the attendees stayed for a buffet dinner after the event. A big thank you to all of the Board members that attended and helped to greet our new neighbors. In June the Welcome Group and CCCP hosted 200 Village residents at their annual summer celebration for all residents in the community. The Country Club at Castle Pines has agreed to host our welcome reception again in 2016. The new resident events will be held on February 3rd, May 11th, August 2nd, and November 5th in 2016. The group continues to add new merchants with gifts and coupons, as well as community information to their “welcome bags”. The Volunteer Recognition Dinner is orchestrated each year by the VCC. The 2016 event is scheduled for fall, date to be determined. This event recognizes all of the CPHA’s dedicated and hard-working volunteers who provide countless hours of their time to maintain the high quality of our Homes Association services and facilities. The Mission of the Village Communications Committee is to determine the best way to provide information to residents and other interested parties in a timely, cost effective and compelling manner. We work to fulfill that mission through:

• Improving the overall communication of news, events and life within the Village.

• Developing an on-going communication strategy for the newsletter, Channel 22, e-blast, website and community brochure linking the sources of communication within the Village – CPHA, Metro District, Sub-associations, and others as appropriate.

• Creating a greater sense of community.

Respectfully submitted, //S// Craig Sundquist, Chairman Village Communications Committee

WILDLIFE COMMITTEE

Committee Members in 2105: Chairman, Gina Gerken; Dave Butz; Pauline Carabelli; Linda Dempster; Doug Drbal; Sue Kiernan; Lisa Marquardt; Ilene O’Meara; Arlene Raskin and Ron West It is the mission of the Castle Pines Village Wildlife Committee (WC) to encourage residents to appreciate the value of and learn to co-exist with local wildlife by providing opportunities for education and community involvement. We worked to accomplish this in 2015 with the following projects, events and activities: • 2015 was the third year of the continuing

series of Sunday afternoon educational wildlife programs, "Coffee, Tea and Wildlife", held in the CPHA Community room. Two programs were offered, “Scamper, Slither and Fly: Wildlife of Castle Pines Village” and “Rocky Mountain National Park: The First 100 Years,” both offered by local award winning nature writer Mary Taylor Young. The second program was cancelled due to snow.

• From March through July, during the seventh season of the CPV Bluebird Trail, boxes were monitored by 14 volunteers. After seven seasons, almost 2000 birds have fledged from the trail and data was

once again collected and submitted to the Cornell Laboratory of Ornithology for research. Six new boxes were added this fall to make the total number of boxes on the trail 69.

• Continued the naturalist guided Nature Walk Program, sponsoring four walks between June and September, offering residents the opportunity to observe birds and other wildlife on trails in Village Open Space and this year, for the first time, outside the Village in Castlewood Canyon.

• Continued updating wildlife slideshow as a permanent feature of the Village website.

• In October, brought back the ever-popular Cherokee Ranch Elk Rut BBQ. 112 people attended Cherokee Ranch for a complimentary BBQ and elk presentation, combined with an elk viewing and castle tour.

• Also in October, back by demand came Creatures of the Night. Well over 100 people attended the Summit Club on a night with a full moon to enjoy snacks, hot chocolate and a warm fire, combined with a live animal presentation by Nature’s Educators.

• Continuance of resident contacts, bi-monthly newsletter articles and frequent eblasts to answer questions, update residents on possible wildlife encounters, and to remind them of proper behavior regarding wildlife.

Respectfully submitted, //S// Gina Gerken, Chairman Wildlife Committee

RESOLUTION TO APPROVE ESTABLISHMENT

OF A BANKING RELATIONSHIP

WHEREAS, the Castle Rock Homes Association, Inc Reserve Fund Investment Policy adopted on January 20, 2006 states in paragraph 4, “…Banks and savings institutions shall be approved by written resolution by the Board of Directors to provide depository and other banking services for the Association…”

RESOLVED, that the Castle Pines Homes Association Board of Directors authorizes the establishment of a banking relationship with:

Liberty Savings Bank 6460 E. Yale Denver

All reserve fund investments made with this banking institution will be in accordance with requirements contained in the Castle Pines Homes Association, Inc Reserve Fund Investment Policy adopted on January 20, 2006.

Castle Pines Homes Association, Inc.

//S//

Linda Battin, President

This resolution was adopted by the Board of Directors on the 26th day of February, 2015, and is attested to by the Secretary of the Castle Pines Homes Association, Inc.

//S//

Chuck Skinner, Secretary

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