To: Victory Heights Property Owners

From: xxx

Victory Heights Residents

Date: January 20, 2006

Subject: Victory Heights County Road Maintenance District Survey Update

The purpose of this memo is to update the Victory Heights property owners on the current status of the survey that we initiated on December 12. As you may recall, the deadline for submitting survey responses was January 15.

Survey Results to Date

As of today, we have received responses from 50% of the property owners. Two of the survey responses indicated that they were included in the proposed Maintenance District (MD) in error, in that they have access to Highway 260 without using the Victory Heights roads. They have been removed from the proposed MD.

Of the remaining 70 property owners, we have received responses from 35 of them, representing 318 acres of property (there are 550 acres in the proposed MD). Of these 35 responses, 23 indicated an interest in pursuing the formation of the MD. These 23 owners represent 232 acres of property.

These responses provide us with an interesting dilemma. If we consider only those owners who have responded, we have a positive response of 66% of the owners, representing 73% of the property covered by the responses. This is an overwhelmingly positive response, indicating that we should definitely proceed with the MD formation process.

On the other hand, if we take the view that a non-response is a negative response, then we have only 33% of all owners in favor of proceeding with the MD, representing 42% of the property. Under this interpretation, we will obviously proceed no further with the formation of the MD.

Action Required

For those of you who have responded to the survey, we thank you for your interest and help, and no further action is required from you.

For those of you who have not yet responded to the survey, we would very much appreciate it if you would either call in or send your response no later than January 30. If you would prefer to call in your response, or if you have any questions, please contact Sam xxx or Jim xxx. You can also send email to Jim at xxx. Of course, you can still send in your response on the Owner Survey Form (included with the survey) if that would be more convenient. Please note that we will consider any owner who has not responded by January 30 to be opposed to the formation of the MD.

As an appendix to this memo, we are providing some additional “Frequently Asked Questions” to address some of the questions and concerns noted in the responses we have already received.

Thank you for your thoughtful consideration of this matter.

Sincerely,

xxx xxx

Additional Frequently Asked Questions

1. Timberland Acres has recently experienced a major theft of funds collected by their Special Road District, which were designated for maintenance of their roads. How can we be sure that a Victory Heights Maintenance District would not encounter the same problem?
We certainly chose a bad time to use Timberland Acres as an example for Victory Heights! As we noted in our survey letter, Special Road Districts (such as that used by Timberland Acres) can no longer be formed. The Maintenance District (MD) that we are proposing for Victory Heights is managed by the Navajo County Supervisors, who manage and disburse all funds collected for the MD. Although selected Victory Heights property owners may be appointed to advise the County Supervisors on matters pertaining to the Victory Heights MD, they will have no access to the MD funds.

2. I have a corner property, which borders two roads. Does this have any affect on my MD assessment?
No. Based on inputs from Navajo County, your assessment is determined solely by the Assessed Full Cash Value for your property.