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The financials for January 2022 have not been reviewed by the Executive Finance Committee as of this writing and the following analysis is based upon my own review. January's revenue was above projections by $830 mainly due to additional revenue for clubhouse services and fees which were offset by less interest income from our investments. Expenses for the month were under projections by approximately $1,500, mainly due to savings from water and contracted staffing costs. Surplus for the month is $14, 700. Year-to-date income is below budget by $11,000 while expenses are below budget by $350,000 resulting in a net surplus of $149,250 versus a budgeted loss of <$189,500> for a net difference from budget of $339,000. The Executive Finance Committee did meet on January 19, 2022 and reviewed the financials for the month of December 2021. The specific information detailed in last months' article was sustained by the committee during the EFC meeting. There were no changes or revisions to note. The Master Board reviewed the recommendations of the Budget and Financial Advisory Committee in a special open session on Feb. 3. The committee, 11 strong, consisted of me as Treasurer and Chair, Paul Bellomo and Greg Kusiak, as Directors, and the following eight volunteer members: Michael Urban, Dick Green, Jeff Mowers, Dolores Dowdle, Ann Collins, Jim Quinn, Sandra Reinhardt and David Toppen. The committee tackled some challenging issues regarding the budget for FYE 2022-2023, which starts April 1. Inflation, adequate reserve allocations, increased labor and material costs, wage increases, and use of existing equity were a few of the items of concern and much discussion. Also, they recommended studying the possibility of shifting certain village specific costs, currently handled by the HOA, to the village budgets. The BFAC will continue to look at this issue and make further recommendations for the FYE 2023-2024, over a year from now. The Board agreed with the committee's recommendation for a 10 percent increase to the annual assessments per lot to $434 per month. Although this increase is for the Master Association only, it is anticipated that most villages will increase their assessments as well. Major future expenditures were a focus of the committee as well. The lanai structure needs replacement as well as the associated casa building which is literally rotting away. Also, based upon the recent irrigation facilities study performed, all of the existing controllers will need replacement in the very near future. The system is antiquated and failing repeatedly. These failures have contributed to some waste in water used for landscaping in our common areas as well as our front yards. Reserves and capital improvement budgets are being funded in anticipation of these near future expenditures. The state of the Association's finances is sound and stable. Although costs for most items have increased over the year to date, the Association has realized significant savings in water use on the golf course, and in contracted staffing costs due to many vacancies. | OHCC LIVING | MARCH 2022 | 5 Treasurer's Report By Bob Fisher, OHCC Treasurer

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