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from the treasurer Operations Summary: Income for the seven months exceeds expenses by $10,923; however, with July falling short of the plan by $56,963, the Association is now $146,066 behind where the plan had anticipated it would be at this point. The Board is of the opinion that the Association will be back on plan by year end. Non-Operations: Property transactions dropped sharply in July (a total of six) bringing the total for the year to 108. The average number of transfers per month is still ahead of last year's pace. A factor in the slowdown is that the inventory of houses on the market has dropped significantly. Separately, interest income continues slightly ahead of last year's monthly average. As the Association's CD's mature ($1.1 million in the next five months) they will be reinvested in lower interest rate bearing CDs (one year term in anticipation of rates rising in the future). HOA: The HOA currently carries $55,300 of unbudgeted expense on the books for expenses related to the pursuit of the lawsuit against the developer for drainage problems above Breckenridge. The HOA has received $600,000 in settlement and gone out for bids for the work necessary to correct the problem. To the extent the winning bid is less than $600,000, the balance will be applied toward reducing or eliminating this expense. Golf Operations: The Operation continues to exceed its expense budget. Irrigation costs are a significant reason, at $103,400 over budget for the seven months. The lake liner project and the installation of state of the art irrigation controls for the Championship golf course have used more water than anticipated. When the installation is completed the new controls will make the irrigation system more efficient saving water and power. Irrigation expense is averaging $77,700 per month. The remaining budget averages $98,200 per month so there is the By John Clark, Master Board Treasurer possibility that the over budget can at least be reduced. Other expense categories exceeding budget include Salaries and Related Benefits, Repairs and Maintenance and Supplies. Currently the Operation is $237,681 negative to plan. Food & Beverage: The Operation had a good month ending with a positive variance to budget of $6,091 and, for the year, a positive variance of $38,979. The new MexItalian night (every Wednesday for $8) has proven popular and more residents are enjoying the covered Veranda. Income for the month was ahead of July 2012 and is now 3.8 percent ($35,624) better for the seven months than projected (and this is with the Sandwedge closed for renovation). Expense for the seven months has a positive variance to the budget of $3,355. Funds: The total of the funds decreased by $391,621 in July. Coming from Reserves were $179,500 for the golf courses including $147,500 for the new irrigation controllers; expenditures on the Main Clubhouse complex included $191,300 for the veranda and $24,100 for the Sandwedge renovation. Homeowner delinquencies: As of the end of July, there are 149 homeowners (down eight) more than 30 days delinquent on their accounts owing $136,077 (up $268). Of these, 123 (down 19) owing $124,575 (down $9,076) are more than 120 days delinquent. Finally: There are hundreds of 'Murphy's Laws'. For example, 'It is impossible to make anything foolproof because fools are so ingenious.' One little known fact about Murphy's Law was that it was not actually coined by Murphy, but by another man with the same name. Enuf: Comments, etc., to jdclark@dc.rr.com. community news | sun lakes lifestyles | september 2013 | 5

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