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from the treasurer Operations Summary: The plan assumed an excess of income over expenses for the month of $11,764. Expenses actually exceeded income in May by $117,312. The combination resulted in a negative $129,076 for the month. The HOA is now short of the plan for the first five months by $24,265. As explained below, this is not as serious as it might otherwise seem. Non-Operations: Eight homes closed escrow bringing the total for the year to 80 staying ahead of last year's pace. Interest income also continues slightly ahead of last year's monthly average. The month: The large amount of expense recorded in May is attributable to the following: Expense associated with the water feature in front of the Main Clubhouse and the landscaping for the front and the veranda were booked in May. It is a budgeted item but the budget (which includes other items) is being added incrementally, month by month over the twelve months. There were three pay periods in May. Three pay period months will be over budget while two pay period months will be less than budget. It averages out over the course of the year. Irrigation expense for the golf courses and adjacent common areas was $55,200 over budget. Golf Operations: Revenue was $29,826 less than projected. Lower homeowner daily green fees was the main reason affected by unusually hot weather and a heavy tournament schedule. Expense was over budget by $45,116 as irrigation water and power was over by $55,200. Revenue for the five months is 5.1 percent ($26,401) short of plan. Shortfalls in merchandise sales and driving range income account for $23,200 of this amount. Expense for the five months is now $106,710 over budget with the Greenbelt allocation the largest item at $63,500 (this is an improvement of $10,600 from last month). In total, the operation is now $133,111 over budget. Food and Beverage: The operation missed its total budget for the month by $1,572. For the five months, revenue is $21,255 (3.2 percent) better than plan. Expenses are also better than plan (by $3,776). The two combine for a total of $25,031 better than plan. Reasons for this performance include increased revenue and lower food costs (principally vegetables using a new supplier with improved quality and lower pricing), different methods in food preparation (doing more in-house), menu changes emphasizing popular items, and some minor price increases. Funds: The total of the funds decreased by $272,100. Major Reserve expenditures were $51,000 for painting golf course perimeter walls; $22,000 for bridge repair on the Executive course; $29,000 for replacement golf course equipment; By John Clark, Master Board Treasurer $136,200 for part of the Main Clubhouse Phase III remodel and $18,800 to replace the restaurant dishwasher. Another $19,200 of Capital Improvement funds was expended on the Phase III remodel. Miscellaneous: As of the end of May, there are 135 homeowners (down 28) more than 30 days delinquent on their accounts owing $143,400 (down $4,300). Of these, 76 (up six) owing $107,800 (up $6,300) are more than 120 days delinquent. There are, currently, 314 homes rented within the complex, an increase of seven since March. Does the HOA get reimbursed for the water used by the fire fighting helicopters? No — the fire departments are entitled to use it and the Board made a decision some years back to not charge for the use. The cost to the HOA is approximately $3.50 per load for the smaller helicopters and $5 for the larger helicopters. Last month's report stated the Association's lawsuit against the developer for the drainage problems above Breckenridge had been settled. A hitch developed at the last minute delaying the settlement. The HOA expects the settlement (still at $600,000) to be settled shortly, possibly before this article is published. Finally: Something to think about — We are here on earth to do good unto others. What the others are here for, I have no idea. (W.H. Auden). Enuf: Comments, etc., to jdclark@dc.rr.com community news | sun lakes lifestyles | july 2013 | 5

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