Our annual summer party will take place on Sunday, August 29 from 4 to 7 p.m. at the Meadows Pool. The theme this year is "It's a Small World" and a Celebration of the 10 Year Anniversary of our Sorrento Community.

The Hospitality Committee will provide pizza, dessert and beverages along with some other food items. We are asking residents to bring a favorite main or side dish. We would welcome food that celebrates the many cultural backgrounds of our neighbors and friends in the community.

There will be music and games, bounce houses and pinatas for the children and a great opportunity for everyone to socialize with friends and neighbors.

Look for the article on our summer party in your mail box this week and the flyer on the flag of your mail box. AGAIN, THE ARTICLE IN THE NEWSLETTER IS INCORRECT. THE LOCATION WILL BE THE MEADOWS POOL.

If you already know you will be there, you can RSVP to hospitalitycommittee@sorrentohoa.org with the number of guests in your family who will attend.

You can also e-mail the Hospitality Committee if you would like to donate supplies, prizes or services to this event.

We look forward to seeing you on August 29 at the Meadows pool.

Money Matters
by Christina Raskin - SPRCA Treasurer and Board Liaison to Finance Committee

The Sorrento at Porter Ranch Community Association (“SPRCA”) has a lot to do to get its financial house in order and has hit the ground running.

Investment Of Reserve Funds
A reserve fund is maintained—essentially savings—for major maintenance and other expenses beyond normal monthly bills. By failing to maintain adequate reserves, the SPRCA risks imposing special assessments, possibly thousands of dollars to each homeowner. This has happened in other Porter Ranch communities.

Wise investment of reserve funds is a top priority of the Finance Committee— focusing on maximum return, while ensuring there is sufficient liquid assets to cover unplanned expenses.

As of June 30, 2010, there was approximately $809,407 in reserves, $562,407 of which is liquid. The plan is to use a CD-ladder to invest liquid assets. Funds would be deposited into CDs with different maturities, the longest being 24 months and the shortest being 3 months–each 3-month period equals a rung on the ladder.

Every 3 months a different CD matures, and the matured funds could be withdrawn or reinvested at a 24-month term (typically, the longer the CD term, the higher the interest rate). As a result, at the end of 2 years, all CDs would earn 24-month CD rates and funds would become liquid every 3 months providing a better return on investment while maintaining flexibility to reinvest as better opportunities arise or withdraw funds to pay community needs. It is the best of both worlds.

Collections
As of mid-July, 116 homes in our community (over 18%) owed $134,900 in de¬linquent dues, late fees, collection costs, and fines. The SPRCA is sensitive to the impact of the economy; however, this is not sustainable—80% of the homeowners cannot pay the bills for the other 20%.

Based on the Finance Committee’s recommendation, the Board is moving to adopt new procedures to address delinquencies. Ross Morgan will be more proactive in following up with delinquent homeowners, a new law firm has been retained to handle pre-lien and lien proceedings, and the Board is investigating its collection procedures to work with homeowners struggling with payments and to protect the entire community.

Power Up or Power Down in Porter Ranch?

At the September 7, 2010 Porter Ranch Neighborhood Council meeting we will have a presentation by the DWP about the Sylmar Ground Return Replacement Project, which is intended to increase the reliability of the existing electric grid. This project includes replacement of overhead lines and underground electric cables that run from the Sylmar Converter Station in Sylmar to the Pacific Ocean. The lines run parallel to and just south of the 118 freeway and then head south across the valley at about Chimineas. They run along the east side of the Northridge Park and Recreation Center.

Because the project is replacing existing lines, the visual impact should be minimal. There could be some lane closures as work is done where the lines cross streets. Juan Diaz-Carreras, the Lead Environmental Scientist and consultant to the DWP for this project, will present the details on the project purpose, timing and impacts to Porter Ranch. The project is in the planning stages and at the beginning of the Environmental Review process, so public comments and suggestions made at the meeting would be in time to have an impact on the project.

Come and learn how you can Help Make Porter Ranch a Better Place to Live, Work and Grow. Join us for our next meetings which are scheduled for September 7, October 5, and November 9, 6pm at Shepherd of the Hills Church. Find out more at www.PRNC.org.