Financial: We continue to stay within and below our budget, although we have found it necessary for cash flow purposes to utilize some contingency funds. Failure of the recently proposed amended TRMA and the attendant assessment increase will create additional financial instability that will require continued close monitoring and managing to get us through the end of the fiscal year.

Road Maintenance: Major repair projects are ongoing as budget permits; regular maintenance rotation maintained to cover all areas of the Ranch; recent rains have caused damage in the Solitario and Gates areas which have demanded repetitive attention. Damage to the Cedar Springs area has been cleaned up after those same rains.

Resort: Occupancy rates are maintaining steady despite the increase in fuel prices.

Significant personnel issues: We are sad to have to say goodbye to Doug Fagg, our road supervisor for the last three years. Doug’s contribution to Terlingua Ranch can only be appreciated by those of us who have used and driven these roads for many years and there are no thanks enough possible to expressed in the time available here. We all wish him well in his new “occupation” of full time grandpa.