2016 EASTMARK COMMUNITY

LIFE

When we are passionate about something, we become energized and motivated. It’s our passion that propels us forward; it’s the reason behind what we do.

The passion Eastmark residents have for this community is palpable. My evidence: the incredible levels of participation we saw across our community this past year. It came in all shapes and sizes, from new and established neighbors, all with a ton of enthusiasm.

From the moment we opened our newest amenities, the Bus Stop at The ‘Mark and our Community Pool, the place has been buzzing. And that’s just the way we like it.

Our community calendar of events grew in 2016 too. We saw more and more neighbors sharing experiences and making memories together. Take our First Friday Concerts in The Eastmark Great Park® – more than 9,000 residents and guests attended one or more of the seven concerts.

We also expanded our founding traditions, providing more opportunities for residents to celebrate together. Our Independence Day celebration now includes a community parade,

concert, and fireworks show in addition to our annual pancake breakfast and practice of lining all our community parks with American flags.

No doubt about it, Eastmark is pretty special. It’s a beautiful place filled with lots of passionate people. Our neighbors are energized and motivated and we’re so glad for that. In the pages that follow, we have highlighted just some of the moments and milestones that propelled our passion in 2016.

Sincerely,

Suzanne Walden-WellsPresident, Board of DirectorsDirector of Community Life

WELCOME TO EASTMARK There’s no doubt about it, Eastmark is the place to be. We’re proud to say for the second year in a row, Eastmark was ranked the No. 1 top selling, master-planned community in Arizona, and No. 11 in the nation.*

With this continued momentum and growth, many families chose to make Eastmark their new home in 2016. To officially welcome our newest residents, the Community Life Team hosted receptions in February and September where 110 homeowners had the chance to meet and mingle with new neighbors and get an overview of Eastmark governance entities, community standards, communications, and community life.

CRUISER CULTURE Let’s ride – to the park, to the pool, to the neighborhood potluck. Hopping on a signature Eastmark Cruiser for a ride through the ‘hood is a way of life here. And as new residents moved in, the cruiser culture continued to grow. This year 414 cruisers were added to the resident fleet. Our newest edition is bright white with orange trim. Thanks again to our partnership with Jim Decker and Soul Cruisers in Tempe.

2013

: 78

2014

: 224

2015

: 317

2016

: 561

COMMUNITY GROWTHYear-over-year Home Closing Data (Inclusive of Encore)

LETS RIDE!

*Source: Robert Charles Lesser & Company

GRAND OPENING – MAKE A SPLASHThe month of March brought with it the unveiling of two new super cool spots for Eastmark residents to gather and play.

During a special VIP Preview event on March 17, Eastmark partners, stakeholders and members of the resident Leadership program were invited to take a first look at the new Community Pool and the Bus Stop at The ‘Mark. The Eastmark team rolled out the red carpet for attendees who also enjoyed food and drinks, and special event mementos.

The two new gathering spaces officially opened for residents on March 19. About 600 residents stopped by the festive grand opening which included a DJ, an on-site soda truck creating sweet concoctions, and commemorative giveaways like insulated Eastmark-branded bags and cups for pool visits.

THE COMMUNITY POOL This 4,000-square foot private, resort-style amenity also offers a smaller 560-square foot toddler pool, grills, shade sails, and plenty of chairs for lounging.

BUS STOP AT THE ‘MARK™ This one-of-a-kind, resident-only community center features a retrofitted bus for seating, a variety of family-friendly games like shuffle board, skee ball, foos ball, pool tables, a giant Scrabble wall, plus a toddler play area.

MONTH TOTAL GUESTS DAILY AVERAGE

April 2,940 98

May 3,252 105

June 3,922 131

July 3,523 117

August 1,927 62

September 1,560 52

October 1,086 35

November 694 23

December 658 21

AMENITY USAGE/VISITOR TRAFFICThe following stats are estimates of the monthly use trends.

COOL NEW AMENITIES

SUMMER AT THE ‘MARK From tots, to teenagers, to kids at heart, The ‘Mark was the spot to be for some seriously cool fun during June and July. The Community Life Team hosted a variety of activities like Tuesday Night Bingo, Best of 21 Free-Throw Challenge, Movies at The ‘Mark, Story Time, Swim Lessons, and Sangria Saturday.

THE EASTMARK AWESOMEFEST | APRIL 9We turned up the notch on the awesome meter this year, as 400 residents and 12,000 community members converged on The Eastmark Great Park for the 2nd annual AwesomeFest. The spectacular night was filled with interactive exhibits, games and activities, aerial and circus acts, live music, colorful performers, a zip line, inflatable water slide, trapeze, glow face painting and even a full-size Ferris wheel. To top it all off, there was a gourmet food tent and beer garden with proceeds benefitting The Care Fund charity, plus a full line-up of local food trucks. Now that’s pretty awesome. Eastmark residents could also opt-in to an AwesomeFest VIP experience at the Eastmark Community Pool and the Bus Stop at The ‘Mark. The ticketed event included food and drinks and special entertainment by costumed mermaids and pirates.

HAPPY BIRTHDAY, USA! | JULY 4Community traditions are a big deal at Eastmark. That’s why each year residents don their red, white and blue, and gather together for a hometown celebration of America’s birthday.

Inaugural Spirit of Community Parade Residents joined the inaugural patriotic procession to The Eastmark Great Park and gathered at the Event Pavilion for a flag ceremony, Pledge of Allegiance, and national anthem. Celebrity judges — Mesa City Councilmember Kevin Thompson and Assistant Chief of Police Mike Soelberg — were tasked with selecting the winning parade entries. The Spirit of Community award was presented to the Lincoln Square neighborhood. The Most Creative entry was awarded to The Radiant Grove Firecrackers. More than 60 patriotic residents participated in the fun.

SIGNATURE EVENTS

All-American Pancake Breakfast Following the parade was the All-American Pancake Breakfast at The ‘Mark where residents lined up for some tasty apple pie hot cakes complete with a scoop of ice cream on top! The Sonoran Brass Quintet added a touch of nostalgia to the festivities with traditional John Philip Sousa marches, patriotic tunes, and summertime classics.

Country Rock Concert and Fireworks Show Later in the evening, after enjoying barbecues and potlucks with family and friends, residents and community members gathered again at The Eastmark Great Park for a country rock concert featuring Chad Freeman and Redline. After sundown, a fireworks show filled the night sky.

A VERY SCARY EASTMARK | OCTOBER 29 As darkness fell the Saturday before Halloween, neighbors donned their spookiest attire and headed to The Eastmark Great Park for a haunting good time, complete with carnival games, a ghostly maze presented by Gothic Landscape, and bouncing pony races. Everyone enjoyed

carnival-style treats while The Eldorado Saloon served up devilish brews for the 21+ ghouls. A costume parade for the youngins’ and a costume contest for teens and adults guaranteed a frightfully good time for goblins of all ages. More than 40 residents and BASIS Mesa volunteers helped bring the event to life.

A VERY MERRY EASTMARK | DECEMBER 2 AND 3 Five performance troops from around the East Valley helped Eastmark usher in the holiday season on December 2 with music, dance, and storytelling. Resident comedian Garrett Van Rooy served as the MC for the holiday variety show. On December 3, neighbors gathered on Palm Plaza for a night of holiday merriment with a big city vibe. Festive store-front windows lined the Street of Treats where vendors offered samples of cookies, cupcakes, and a make-your-own coffee and hot chocolate bar. Songs sung by urban carolers filled the air while families posed for portraits in front of a theatre marquee. Face painting and a train ride around the park delighted the little ones. Residents continued the tradition of adding an annual ornament to the majestic15-foot Christmas tree.

350All-American Pancake Breakfast

2,500Country Rock Concert and Fireworks

1,040A Very Scary Eastmark

830A Very Merry Eastmark

ATTENDANCE

First Friday Concert SeriesThe popular Eastmark First Friday Concert Series is known throughout the Valley for its rockin’ line-up of live music and tasty food truck fare. In the spring and fall, event-goers were invited to bring along lawn chairs and coolers for the free, public concerts. More than 9,000 residents and guests from surrounding communities attended one or more of the seven concerts held at The Eastmark Great Park.

Bike Safety Rodeo and BMX Impact Show | January 23Along with a great cruiser culture comes a commitment to bicycle safety. That’s why the Community Life Team, in partnership with the City of Mesa Bicycle and Pedestrian Program, District 6 Mesa City Councilmember Kevin Thompson, Valley Metro, and Banner Children’s presented an interactive bike rodeo and high energy BMX Impact Show to raise awareness about bike and helmet safety. Residents rode their favorite set of wheels over to The Eastmark Great Park for helmet fittings, giveaways, food trucks, inflatables, and visits by the Mesa Police, Fire and Medical Departments, and Mesa Environmental Management and Sustainability.

Craft Brew Night | October 1 The Community Life Team hosted an Oktoberfest event crafted especially for Eastmark’s 21 and older crowd. More than 140 guests at the ticketed event indulged in a selection of locally brewed beers from the Beer Research Institute in Mesa, savory provisions from Postino in Gilbert, a live acoustic guitarist, and spirited conversation with neighbors.

Veterans Day Breakfast | November 11 Each year on Veterans Day morning, Eastmark residents spend time honoring the brave men and women who have served our country. This year was extra special with a dedication ceremony of the newly-completed Honors Park at Anitole Square Park. East Valley Young Marines performed the flag ceremony, BASIS Mesa Strings Ensemble played the national anthem, and members from Eastmark Leadership Class 1 dedicated the park with a proclamation from Mesa Mayor John Giles. Following the ceremony, nearly 130 residents enjoyed a selection of breakfast treats.

COMMUNITY EVENTS

2016 FIRST FRIDAY CONCERT LINE-UPThe Sugar Thieves

Rock Lobster

Wild Child

Saints of Eirinn

Chuck E. Baby and The All Stars

Georgia Chrome

Apple: A Tribute to the Beatles

EASTMARK LEADERSHIPIn February, a group of Eastmark residents started on a 10-month journey together to enhance their own leadership potential and to deepen their knowledge of Eastmark and the greater East Valley region.

Class 2 participants attended monthly sessions themed around topics like environmental mindfulness and stewardship, regional assets and economic development, personal and community values, and creating a sense of place. There were also opportunities to tour local sites like the Superstition Police Division and points of interest in downtown Mesa.

For their culminating project, Class 2 led a benefit drive to support Sunshine Acres, a local organization that provides children in foster care with a safe and stable environment, therapy, support, and love. Class 2 members were out at the Eastmark First Friday Concerts and the

Getting Arizona Involved in Neighborhoods (G.A.I.N.) event selling water bottles and glow sticks to raise money for food and entertainment gift cards that Sunshine Acres uses for outings with the children and as birthday treats.

Sixteen residents completed the program in November and celebrated with a cocktail reception and ceremony at the Bus Stop at The ‘Mark. Representatives from Sunshine Acres were on hand as Class 2 graduates presented $1,000 in gift card donations collected thanks to the generosity of our community members.

PROGRAMS, CLUBS & ACTIVITIES

2016 EASTMARK LEADERSHIP CLASS 2Bethsy AmadorBen BaldwinLaurie BurlesonWhitney Clayton

Linda DrakePatrick KeeSusan LandesMatthew Law

Allison McDowellTiffany McKelveyTricia MooreCarl Ong

Mike SchantelLuAnn SchmidtSteve VentreAdam Wollman

CLUBS AND ACTIVITIES

Wine Club Vino connoisseurs gather monthly to share their favorite wines and appetizers. This Eastmark social group has been around for two years, and residents rotate hosting duties in their homes.

Entrepreneurs Club With many business owners living in the community, there is now an opportunity for Eastmark’s resident entrepreneurs to meet and network the second Tuesday of each month at The ‘Mark.

Book Club Launched in February, neighborhood book lovers unite the second Wednesday of each month for a discussion of fictional books chosen at random.

Eastmark Orange MonstersEastmark’s first co-ed recreational softball team formed in October, and you can cheer on your neighbors during the team’s seasonal weekly games.

PLAY ME, I’M YOURSIn early February, residents were invited to participate in the hands-on opportunity to turn a piano into a work of art for the Play Me, I’m Yours city-wide street piano project through the Mesa Arts Center (MAC). Eastmark was one of two dozen sites selected for the project.

Local artist Rosalie Vaccaro led a group of resident volunteers – Steve Ventre, Donna Dupont, and Loretta Cuoco – through the artistic process of bringing the Eastmark piano to life. The design took the form of a classic car riding on the GM test track with a view of the Superstition Mountains – a nod to Eastmark’s heritage. The back side of the piano depicted a concert at The Eastmark Great Park symbolizing the vibrant community taking root.

Following an official unveiling at the annual MAC Gala on February 26, the pianos were placed in public areas around Mesa, so passersby could play a tune anytime they were

inspired throughout the month of March. The Eastmark piano was placed in Palm Plaza for six weeks and then loaned to Sequoia Pathfinder Academy at Eastmark for their use.

HONORS PARK AT ANITOLE SQUAREEastmark Leadership Class 1 led a fundraising campaign in 2016 to help pay for the installation of a flag pole and American flag in the newly-named Honors Park at Anitole Square, a special place in the community to honor all veterans. Legacy pavers were sold to residents, who could inscribe up to three lines of text in commemoration of a loved one or a milestone event. The pavers were placed at the base of the flag pole and an official dedication ceremony was held on Veterans Day.

COMMUNITY PROJECTSEASTMARK HONORS OUR

MILITARY, PAST AND PRESENT

EASTMARK PARKWAY SCHOOLS COLOR RUN The Community Life team assisted with planning and implementation of a 5K and Fun Run organized by community volunteers to benefit neighborhood schools BASIS Mesa and Sequoia Pathfinder Academy. More than 1,200 participants registered for the event, which was staged on Eastmark Parkway. Along the route runners were sprayed with bright colors as a festive element to the run.

ADOPT-A-STREETA group of Eastmark residents meets twice a year to pick up trash items along Ellsworth Road between Elliot and Ray roads. On February 27, eight Eastmark volunteers collected 20 bags of litter, and on December 10, twelve residents collected 12 bags of litter.

MESA HYDRATION DONATION CAMPAIGN AND UNITED FOOD BANK CHRISTMAS IN JULYThe Community Life Team partnered with United Food Bank on a three-pronged campaign to ensure the most vulnerable in our community have access to water and food during the hottest

months. Residents were invited to participate in a single effort or take part in all three. Each represented easy and immediate ways to make an impact.

Donation Drive | June and July Water for the 10th Annual Donation Hydration Drive and food for Christmas in July were collected at The ‘Mark. More than 8,500 water bottles and two full donation boxes of food were donated by residents and community partners, surpassing Eastmark’s campaign goal.

Community Conversation on Hunger | June 28 United Food Bank representative Melissa Forrester led a discussion on the reality of hunger in our community and how the organization quickly and effectively distributes hundreds of tons of food in Arizona every week.

Community Service Project | July 9 Residents and Community Life Staff volunteered at the United Food Bank distribution warehouse to help sort and label food.

PHILANTHROPY, CIVIC ENGAGEMENT, COMMUNITY SERVICE AND RESIDENT-LED INITIATIVES

ARIZONA HUMANE SOCIETY Eastmark was proud to donate $615 to the Arizona Humane Society from proceeds from beer and wine sales at the First Friday Concert Spring Series.

SANTA’S SLEIGH DONATION DRIVE FOR HOUSE OF REFUGE Residents generously donated a sleigh full (or two SUVs!) of gift items to House of Refuge during A Very Merry Eastmark.

EASTER EGG HUNT | MARCH 27Amanda Holmes helped coordinate the annual neighborhood Easter Egg Hunt. This year the festive hunt for treat-filled eggs took place at Lumiere Garden Park. The Easter Bunny himself was even on hand, and Megan Ortiz with Serendipity Photography snapped photos of the event.

NEIGHBORHOOD WATCH AND G.A.I.N. NIGHT | NOVEMBER 5Caitlin Watson and other Neighborhood Watch leaders planned and participated in the

statewide initiative that encourages neighbors to get out and about in their neighborhoods. Residents met at The Eastmark Great Park for a neighborly night of life-sized Jenga, cornhole, lawn Yahtzee, face painting, balloon art, and fabulous food trucks.

ADOPT-A-PRECINCT In an effort spearheaded by Eastmark resident Kristen Self, neighbors regularly donated snacks, drinks, and letters of thanks to the Mesa Police Department precinct located just down the road from Eastmark. Through donations, residents were able to purchase a Keurig beverage brewer for the precinct, and deliver a Thanksgiving dinner with all the fixings.

SPRING AND HOLIDAY BOUTIQUES Coordinated by a committee of Eastmark residents, this twice annual event held April 23 and November 12 included a variety of local vendors selling brand-name and homemade items.

COMMUNITYOUTREACH

BE DEBT-FREE WORKSHOP Dale and LeeAnn Samsel led a nine-week workshop on Friday evenings in September and October based on Dave Ramsey’s Financial Peace University program to help residents become debt free.

JAVA WITH GILES | OCTOBER 10In partnership with the Mesa Chamber of Commerce, Eastmark hosted a morning with Mesa Mayor John Giles and District 6 Councilmember Kevin Thompson. The two shared updates with about 30 residents on proposed plans, growth, and development in the City of Mesa.

THE BIG DIG | NOVEMBER 5 The Eastmark Great Park was the site of the American Cancer Society’s fundraising event The Big Dig, where kids and those young at heart explored a collection of construction and utility trucks and equipment. More than 1,000 people enjoyed the day-long festival.

MAILCHIMP AND EVENTBRITEWith so many exciting goings on in and around the neighborhood, it is important for residents to stay “in the know.” So in February, the Community Life Team upgraded to more user-friendly email communications and event registration systems – hello MailChimp and Eventbrite! More than 1,200 residents are currently subscribed in MailChimp. The Community Life Team, on average, sent seven communications to residents each month, including the weekly “This Week at Eastmark” e-newsletter, containing updates on events, activities, and announcements. With an average open rate around 60 percent, we know it is a highly engaged group of residents living in Eastmark.

EASTMARK.COM The Eastmark online hub got a fresh new look this year. In an ongoing effort to improve the resident experience, the revamped site launched in September with an even more robust resident-only section full of special content just for Eastmark homeowners. Whether on a phone, tablet, or desktop, residents can login and access everything Eastmark on any device.

COMMUNICATIONS

DESIGN REVIEW APPLICATIONS

COMMUNITY STANDARD COMPLIANCE CASES

COMMUNITY CONCERN FORMS

COMMUNITY STEWARDSHIP

$75Swing located at Talameer Glen Neighborhood Park

$1,375.00Replacement of shade sail at Palladium Point

Neighborhood Park

REPAIRS

Planted throughout parcels as part of the residential landscape package

Planted along Inspirian Parkway

Community Pool and Bus Stop at The ‘Mark turned over to the AssociationTURNOVERS

Inspirian Parkway turned over to the Alliance

WORKSHOPS AND GARAGE SALES

Spring Landscape Seminar | April 20The Community Life Team hosted a landscape workshop for residents at The ‘Mark. DLC Resources, Inc., Eastmark’s landscape partner, answered questions about landscape maintenance, water conservation, weed control, and more, for the 27 residents in attendance.

Community Garage Sales Residents did their spring and fall cleaning in time for the twice-yearly Eastmark Community Garage Sale held on March 5 and November 5. The Community Life Team promoted the events and any unsold goods could be donated to Sunshine Acres. 117 resident households participated in one or both garage sales.

COMMUNICATIONS

$2,244.01Replacement of two panels of fencing at

Eastmark Parkway and Starion Avenue

TREES

$938.57Replacement of Splash Pad activator at Benton Neighborhood Park

OVERSEEDING23 acres of neighborhood parks

TREES

EASTMARK COMMUNITY LIFEBOARD OF DIRECTORS

Suzanne Walden-WellsPresidentDirector of Community Life DMB Community Life, Inc.

Todd HornbackVice President Director of Community LifeDMB Community Life, Inc.

Darrell MeadSecretary and TreasurerAccounting and Finance ManagerDMB Community Life, Inc.

TEAM

Amy AlbrechtAccounts Payable AssociateJennifer A. BarefootDirector of CommunicationsLori ChaplinCommunity RepresentativeKimberly Crowther MillerCommunity Engagement ManagerAna FeyereisenLead AmbassadorTim FitzpatrickCommunity Representative

John GoenLandscape and Facilities SuperintendentLindsay HerringAssistant Community Operations ManagerTabatha LongCommunity Operations ManagerJack De La MaterAmbassadorDarrell MeadAccounting and Finance ManagerCatherine PimsnerTransfer and Disclosure AssociateChadwick ReedDirector of Community Operations

Scott RowanDirector of Community Asset Management Al SemmlerSenior AccountantMatt TotaanAmbassadorEsther TuneCommunity RepresentativeSteve VentreCommunity RepresentativeSuzanne Walden-WellsDirector of Community Life Cassandra WoolumsAmbassador

COMMUNITY GOVERNANCECommunity Life at Eastmark is comprised of three distinct, yet complementary organizations, each dedicated to keeping the lifestyle experience in our community at its best.

EASTMARK COMMUNITY ALLIANCE, INC.The Alliance preserves Eastmark’s special commercial landscapes and public settings, ensuring high-quality standards are maintained.

EASTMARK RESIDENTIAL ASSOCIATION, INC.The Residential Association preserves Eastmark’s special community landscapes and neighborhood settings, ensuring high-quality standards are maintained.

EASTMARK COMMUNITY ASSEMBLY, INC.The Assembly fosters unique and outstanding opportunities for social and civic engagement. It works to create shared experiences and lasting traditions among Eastmark residents.

EASTMARK COMMUNITY ALLIANCE, INC. Balance Sheet at December 31, 2016

Income Statement for Year Ending December 31, 2016 Expenses 2016

Landscaping$349,466

Utilities$79,107

Communications$5,583

Administrative$394,976

Repairs and Maintenance$4,105

Community Engagement$62,498

ACTUAL

$ 926,951 1,484

59,759 15,886

443 $ 1,004,523

$ 394,976 5,583

62,498 349,466

4,105 79,107

895,735 108,788

– $ 108,788

REVENUECommunity Alliance AssessmentLegal, Collection & Compliance FeesCommon Area LandscapeEncore Great Park MaintenanceAllowance for Doubtful Accounts

Net Revenue

OPERATING EXPENSEAdministrativeCommunicationsCommunity EngagementLandscapingRepairs & MaintenanceUtilities

Total Operating ExpenseSurplus (De�cit) Before Subsidies

Developer SubsidyCurrent Year Surplus (De�cit)

BUDGET

$ 891,262 7,485

69,058 24,264 (4,762)

$ 987,307

$ 426,355 16,298 50,400

417,505 2,700

95,338 1,008,596

(21,289) 25,757

$ 4,468

VARIANCE

$ 35,689 (6,001) (9,299) (8,378) 5,205

$ 17,216

$ 31,379 10,715

(12,098) 68,039 (1,405) 16,231

112,861 130,077 25,757

$ 104,320

ASSETSOperating AccountsTotal Cash

Net Accounts ReceivableOther AssetsTotal Assets

LIABILITIES & MEMBERS' EQUITYAccrued ExpensesPrepaid AssessmentsTotal Liabilities

Prior Year Surplus (de�cit)Current Year Surplus (de�cit)Total Equity

Total Liabilities & Equity

2016

$ 118,465 118,465

253,754 35,850

$ 408,069

$ 119,977 51,520

171,497

127,784 108,788 236,572

$ 408,069

2015

$ 4,240 4,240

324,366 38,206

$ 366,812

$ 206,564 32,464

239,028

18,518 109,266 127,784

$ 366,812

CHANGE

$ 114,225 114,225

(70,612) (2,356)

$ 41,257

$ (86,587) 19,056

(67,531)

109,266 (478)

108,788

$ 41,257

Revenue 2016

Community AllianceAssessment$926,951

Encore Great Park Maintenance$15,886Common Area

Landscape$59,759 Allowance for

Doubtful Accounts$443

Legal, Collection& Compliance Fees$1,484

Revenue 2016

Expenses 2016Income Statement for Year Ending December 31, 2016

Residential AssociationAssessment$568,843

CommunityBene�t Fees*

$91,113

Legal, Collection and Compliance Fees$10,079

Utilities$243,622

Administrative$300,961

Repairs and Maintenance $11,538

Landscaping$318,666

Communications$7,326

Facilities/CommunityEngagement$111,884

Allowance for Doubtful Accounts$(2,129)

EASTMARK RESIDENTIAL ASSOCIATION, INC. Balance Sheet at December 31, 2016

ASSETSOperating AccountsReserve Accounts Total Cash

Net Accounts ReceivableFixed AssetsOther AssetsTotal Assets

LIABILITIES & MEMBERS’ EQUITYAccrued ExpensesPrepaid AssessmentsOther LiabilitiesTotal Liabilities

Prior Year Surplus (de�cit)Current Year Surplus (de�cit)Total EquityTotal Liabilities & Equity

2016

$ 34,682 5,889

40,571

87,549 711

87,925 $ 216,756

$ 23,215 30,912

228,299 282,426

(59,579)(6,091)

(65,670)$ 216,756

2015

$ 206,721 -

206,721

30,169 1,422

90,284 $ 328,596

$ 55,658 16,232

316,284 388,174

88,957 (148,535)

(59,578)$ 328,596

Change

$ (172,039)5,889

(166,150)

57,380 (711)

(2,359)$ (111,840)

$ (32,443) 14,680

(87,985) (105,748)

(148,536) 142,444

(6,092)$ (111,840)

REVENUEResidential Association AssessmentLegal, Collection & Compliance FeesCommunity Bene�t Fees*Allowance for Doubtful AccountsNet Revenue

OPERATING EXPENSEAdministrativeCommunicationsFacilities / Community EngagementLandscapingRepairs & MaintenanceUtilitiesTotal Operating ExpenseSurplus (De�cit) Before SubsidiesDeveloper SubsidyCurrent Year Surplus (De�cit)

Actual

$ 568,843 10,079 91,113 (2,129)

$ 667,906

$ 300,961 7,326

111,884 318,666

11,538 243,622 993,997

(326,091)320,000

$ (6,091)

Budget

$ 534,657 24,747 69,593 (2,857)

$ 626,140

$ 293,794 10,481

109,456 368,807

9,200 231,296

1,023,034 (396,894)378,885

$ (18,009)

Variance

$ 34,186 (14,668) 21,520

728 $ 41,766

$ (7,167) 3,155 (2,428)50,141 (2,338)

(12,326)29,037 70,803 58,885

$ 11,918 *Includes: Builder Transfer, Resale Transfer, Capital Startup and Resale Disclosure fees.

Community Assembly Assessment$184,922

CommunityBene�t Fees*

$142,350

Administrative$184,560

CommunityEngagement$124,809

Communications$10,719

Legal Collection andCompliance Fees$1,484Events and

Amenity Revenue$10,928

Allowance for Doubtful Accounts$426

ASSETSOperating AccountsRestricted Cash (Honors Park)Total Cash

Net Accounts ReceivableOther AssetsTotal Assets

LIABILITIES AND MEMBERS' EQUITYAccrued ExpensesPrepaid AssessmentsOther LiabilitiesTotal Liabilities

Prior Year Surplus (de�cit)Current Year Surplus (de�cit)Total Equity

Total Liabilities & Equity

2016

$ 10,890 940

11,830

46,848 –

$ 58,678

$ 867 10,304

940 12,111

(5,455)52,022 46,567

$ 58,678

2015

$ 6,614 –

6,614

27,575 1,762

$ 35,951

$ 34,913 6,493

– 41,406

20,267 (25,722)

(5,455)

$ 35,951

Change

$ 4,276 940

5,216

19,273 (1,762)

$ 22,727

$ (34,046)3,811

940 (29,295)

(25,722)77,744 52,022

$ 22,727

EASTMARK COMMUNITY ASSEMBLY, INC. Balance Sheet at December 31, 2016

REVENUECommunity Assembly AssessmentEvents & Amenity RevenueLegal, Collection & Compliance FeesCommunity Bene�t Fees*Allowance for Doubtful AccountsNet Revenue

OPERATING EXPENSEAdministrativeCommunicationsCommunity EngagementTotal Operating ExpenseSurplus (De�cit) Before SubsidiesDeveloper SubsidyCurrent Year Surplus (De�cit)

Actual

$ 184,922 10,928

1,484 142,350

426 $ 340,110

$ 184,560 10,719

124,809 320,088 20,022 32,000

$` 52,022

Budget

$ 178,252 -

9,145 97,276

(952)$ 283,721

$ 187,302

15,894 139,720 342,916 (59,195)53,550

$ (5,645)

Variance

$ 6,670 10,928 (7,661)45,074 1,378

$ 56,389

$ 2,742 5,175

14,911 22,828 79,217 21,550

$ 57,667

Income Statement for Year Ending December 31, 2016 (Unaudited)

Expenses 2016

Revenue 2016

*Includes: Builder Transfer, Resale Transfer, Capital Startup and Resale Disclosure fees.

EASTMARK COMMUNITY LIFE INCLUDES THE FOLLOWING ENTITIES:Eastmark Community Alliance, Inc. • Eastmark Residential Association, Inc. • Eastmark Community Assembly, Inc.

10100 E. Ray RoadMesa, AZ 85212480.625.4900Eastmark.com