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| SUN LAKES LIFESTYLES | JULY 2023 | 7 The operating activities of Sun Lakes Country Club (SLCC) are separated by business segments: HOA, Golf, Restaurant & Lounge. In April there was a surplus of $26,632 and year-to-date of $370,295. The primary drivers of the year-to-date surplus are underbudget labor costs, underbudget golf course maintenance (primarily cost of water) and effective management of other general expenses. At the end of April, the balance in the Operating Fund checking account was $835,182. On that same date, the Association had outstanding bills of $909,501 (see the graphic below). As I have written in previous reports, the Association's Operating Fund cash balance is less than it should be, based on SLCC historical and HOA standards. An appropriate balance would be a minimum of $2,000,000. For example, SLCC Operating Fund cash and cash equivalent investments at Dec. 31, 2015 were $2,507,021. For the period 2017 through 2022 the Operating Fund has had net losses of $1,997,627. These losses have caused a significant reduction in the Operating Fund cash balance. The Reserve & Replacement (R & R) Fund had a balance at the end of April of $11,405,680. Changes in the R & R Fund through the end of April were: January 1, 2023 $ 11,340,055 YTD expenditures $ (664,413) Monthly HOA contribution $ 700,000 Investment income $ 30,038 Balance April 30, 2023 $ 11,405,680 The Associations 2023 budget includes an allocation of $2,100,000 to the R & R Fund. The estimated 2023 expenditures from the R & R fund are approximately $3,200,000. Major expenditures this year have been: $311,857 for golf course bunker repair; $92,856 for roof repair and other improvements to the Sandwedge; $34,561 for the Pickleball conversion at the North Clubhouse; Main Clubhouse carpet and painting $43,944 and other smaller expenditures of $181,195. ~ Gary Burkel Treasurer's Report: April 2023 Financial Statements The Operating Fund is used to manage daily operations of the HOA. It does not include restricted cash held in the Reserve and Replacement Fund or the Capital Fund. SUN LAKES COUNTRY CLUB HOA OPERATING FUND Available cash (blue) compared to outstanding bills (orange) APRIL 2023 FINANCIAL SUMMARY

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