Tahoe Donner reports stronger early 2025 revenues and adopts new financial policies to shore up reserves

Tahoe Donner Association leaders told members at the annual meeting that the community’s finances are recovering from last year’s shortfall and that the board has approved a comprehensive update to capital and financial policies to strengthen long-term reserves.

At the meeting July 12, Don Kunis, Tahoe Donner board treasurer, said audited 2024 results left the association $556,000 short of budget, a deficit absorbed from operating fund balance. Through May 2025, Kunis said, revenues were 8% favorable to budget, expenses on budget and net operating revenue about 7% favorable to budget — roughly a $250,000 improvement that recouped nearly half of 2024’s shortfall.

The association’s balance sheet and cash positions were described as substantial: Kunis said the association held about $105 million in assets and just over $90 million in member equity in the 2024 audited financials, and about $46 million in total cash across funds as of May 2025. He listed fund balances including roughly $22 million in the operating fund, nearly $18 million in replacement reserves and over $6 million in a development fund.

The board last week approved a multi-year, comprehensive update to Tahoe Donner’s capital and financial policies, Kunis said. The update — developed over roughly two years with staff, finance committee volunteers and industry guidance — will shift some items currently budgeted in operating expenses into the replacement reserve fund to better fund long-term building replacement and reduce the need for reactive, large assessments in the future. Kunis said the changes follow new industry guidance for association reserves and will be implemented with a transition period to manage assessment impacts.

Kunis characterized the changes as intended to normalize assessments over time and “protect and enhance your investment in Tahoe Donner.” He said the policy work balanced industry standards, generally accepted accounting principles and applicable state and federal law, while considering staff practicality and member affordability.

Board President Benjamin Levine and Kunis also noted the association’s asset base and membership size in framing the policy changes. Kunis outlined that Tahoe Donner comprises roughly 6,500 properties and nearly 7,000 acres of common and open space, and reported an estimated collective real estate value cited verbally during the meeting.

During the public Q&A, a member asked how many lots remain vacant; the board answered the association is approximately 92% built out (about 550 vacant, unimproved lots) and explained that adding new properties to the association (annexation) would require a member vote under the association’s covenants and restrictions (C&Rs) and a majority of total voting power.

The board did not present a line-by-line vote tally for the policy approvals at the annual meeting. The treasurer and president said the board approved the policies on the prior Friday following the multi-year process.

Members will be able to review more details of the audited financials and the updated policies when the association posts them online and publishes the annual report following the audit, Kunis said.

Election and administrative note: the association’s 2025 board election was concluded by acclamation for the two open seats; members were told that Jay Wertheim and Benjamin Levine were the candidates for two seats and that the election ended by acclamation because the number of candidates equaled the number of openings.

Looking ahead, Kunis said the policy changes are intended to provide more predictable funding for capital replacement and to preserve member value over time. The board and staff said they will publish budget materials and continue quarterly and annual reporting.