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14 | SUN LAKES LIFESTYLES | FEBRUARY 2025 | Sun Lakes Committee Reports The Finance Advisory Committee is responsible for reviewing the monthly financials and providing recommendations to the Master Board for their consideration. We are a group of experienced former professionals in the management and financial field that are working to see that our Master Board has the financial information they need to make the best decisions for our community. NOVEMBER 2024 FINANCIAL HIGHLIGHTS HOA Operations Net Income YTD $1,575,137 Golf Course Operations Loss YTD ($1,288,220) Restaurant Operations Loss YTD ( $ 844,520) Lounge Operations Income YTD $ 8,947 ALL HOA ACTIVITY NET Loss YTD ($ 548,657) RESERVE BALANCE: $12,278,887 YTD EXPENSE:$2,671,590 CAPITAL BALANCE: $ 1,329,196 YTD EXPENSE $ 653,038 (For reference, our HOA operations ref lects our monthly dues and other sources of revenue less common area expenses. The Golf and Food & Beverage losses ref lect the net cost of their sales and expenses. The HOA NET activity is a ref lection of how our revenues cover the amenities of our community and should be zero or close to zero.) By the time you receive this article, the committee will have received and reviewed the December reports and will provide year- end analysis for the Board. In addition, we will be requesting of the Management Team an in-depth analysis of some of the following accounts: Prepaid Storage Dues, Vacation Accrual, Refundable Clubhouse Deposit, Special Events Deposit, Refundable Deposits, Bad Debts, Foreclosure Expense, Collection Expense, and Legal Collections. We are still recruiting members for our committee. We need you if you have knowledge of accounting methods and procedures, investments and or cash f low. Join us for our next meeting on Wed., Feb. 19 at 2pm, in the Main Clubhouse Multipurpose Room. You are welcome to ask questions or comment at the end of the meeting. ~ Mary Jo McElwain, FAC Chair Financial Advisory WHAT WILL IT TAKE FOR SUN LAKES' FOOD & BEVERAGE OPERATIONS TO SUCCEED IN 2025? Prices are up, demand is down, and it's hurting us. You're not the only one who has noticed alarming increases in restaurant prices here in Southern California. Here we are, four years removed from the pandemic, and the price of the meal you had in 2019 has gone up between 30 percent and 90 percent. Even fast-food prices have risen. Subway is up 86 percent according to a CBS report; Popeye's, 62 percent; Jimmy John's, 39 percent. Has your income increased accordingly? Likely, not. Here at Sun Lakes, rising costs of food, beverages and labor have pushed our once affordable pricing policies to the brink. With best intentions, our management has been forced to implement a higher pricing formula to offset losses. There is a huge downside: 1) less demand and, 2) higher expectations. Last year showed an uncomfortable increase in complaints about pricing, food quality, consistency, and staff effectiveness. How do we turn this around? • A few hundred loyal residents can never sustain our F&B operations. Everyone physically able must do their best to patronize our F&B venues. • According to recent surveys of new residents, 75 percent stated that having a Restaurant in Sun Lakes is important to them. If you think it's important, are you showing your support? We all know this about life: "if we don't use it, we ultimately lose it." • As residents, we are all part owners of our entire Sun Lakes infrastructure — golf courses, common areas, clubhouses, sports facilities … and yes, restaurants. Put on your owner hat for a moment. Does it make sense to avoid our F&B amenities despite the fact that they need us? • Stop complaining on social media. Yes, we've all been frustrated by inconsistencies in our F&B operations. Even the most beautiful diamonds have imperfections, right? Would you throw a diamond away? Voice complaints through appropriate channels. • People blame the Master Board and Management over our Food & Beverage costs exceeding revenues. When pointing fingers, remember: three fingers point back. If each resident patronized the F&B operations just once a month, we would have a better chance to be financially successful. • Our dining and beverage choices usually involve fun times with friends. If cost is a factor with you, why not choose lower cost menu items and reduce the number of drinks consumed, but don't stop coming to our Fine Dining Restaurant, Lounge, and Sandwedge Bar & Grill. Your community needs you. We must absorb price increases or risk losing our favorite dining out options. Article by Jerre Blodgett and Chairperson Michele Walter, (951) 202-8009. ~ Submitted by Jerre Blodgett. jb@jbblodgett.com Marketing Advisory

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