1. I have reviewed the July and August 2026 Financial Statements provided by Cohere.

2. Some observations as of 8/31/26:
-Cash in the Operating Account, including $50K Working Capital loan from Developer-$125,338
-Cash in the Reserve Accounts- $251,014
-Homeowner Assessments Receivable: $313 (Primarily 1 homeowner past due)
-Due from VMCA (Vista) for their share of Montaine Circle upkeep: $4251

3. # Closed homes as of 9/1/26: 375 (56% of 664 total planned)
2026 closings from Toll: 38

4. Operating Surplus for 2026 thru 8/31/26/26: $29,342 (prior to any Reserve Contributions or Declarant Subsidy).
Any deficit is part of the anticipated deficit funding that the developer has provided and continues to fund
monthly, although not legally obligated to do so. The amount budgeted to have been contributed at this date but
not included in the financials is $183,359

5. Attached is an Executive Financial Summary for the first 8 months of 2026. Note that there has been no obligation
for the funding of Reserves recorded in the books of RMCA in 2026. See also Note 8 below.

6. As of 9/1/26 our sister community Vista is 42 closed homes away from reaching Transition when the homeowners
will elect a majority of the Board, and the Developer will end their deficit funding. Since we share Maleah’s time
and related compensation with Vista, their Transition to a homeowner-controlled Board and elimination of deficit
funding by the Developer may have an impact on Regency.

7. An audit of the financial records from the inception of the community through December 31, 2024 was
completed and an “unqualified opinion” aka “clean opinion” was issued by the auditor. A copy of the audit is
available to be reviewed in the Financials section of the website. Bids are currently being solicited by
management for an audit for the year ended December 31, 2025.

8. The Board at its January 29 meeting unanimously approved a Motion to instruct Cohere to invoice the Declarant
for the 2025 Reserve contribution and the 2026 Reserves prorated monthly, based on the 2023 Reserve Study.
Those invoices were prepared and sent by Cohere and are being billed and to be accrued monthly as a Receivable
due Regency in the 2026 financials. No payment for Reserve funding has been received from the Declarant as of
this date, and the Declarant sent a letter to the Board stating that they don’t plan to fund Reserves until
Transition. The Board met with the HOA’s attorney and learned that the Declarant is not obligated to actually ever
fund Reserves under current Colorado law or our governing documents. After meeting with Toll’s Division
President, my request for further guarantees of that funding prior to Transition were rejected, however he did
reiterate their commitment to continue to fund Operating Deficits and fund Reserves at Transition, although no
specific dollar amounts were provided. Since the dollar amount of Reserves to be funded at Transition was not
committed to by the Declarant, and there is no legal obligation for the Declarant to ever fund Reserves, our
financial statements will not reflect any such obligation. We as homeowners are left with Toll’s request to trust
them to do the right thing. Unfortunately it appears we have no other options at this time.

9. As previously reported, the approved 2026 HOA budget called for dues to increase 5% to $221 per month. This is
consistent with the multi-year Build Out Budget previously approved, which also incorporates a 5% increases
each subsequent year through Transition, currently projected sometime in 2029. We should anticipate a 5%
increase in dues again for 2027.

10. We have been receiving homeowner applications online for inclusion in a Financial Discussion Group for our
community, and the response has been good. We currently have 12 interested participants from a variety of
relevant backgrounds. The discussions will include the Operating results for our community with the Executive
Financial Summary, budgets, Reserve investments, insurance and Reserves. This will be a discussion group only
and have no input to the Board other than through me. It will start the process of preparing homeowners for the
understanding of the RMCA finances so that when we are in a position at Transition to elect a majority of the
Board, we will hopefully have a number of homeowners with the potential to step up at least on the financial
side.

Click here to to view the Executive Financial Summary.

Submitted by Bill Cirkus September 22, 2026