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CoMMunIty news | sun lakes lIfestyles | deCeMBeR 2014 | 5 From the Treasurer By John Clark, Master Board Treasurer Operations Summary: The plan for October had Expenses exceeding Income by $24,330; the actual difference was $76,424. As a result the Association has a negative variance to plan at the end of October of $3,089 – not too bad considering we are 10 months into the plan with income and expenditures totaling in excess of $10 million. The challenge will be to have November and December come in on plan (the plan anticipates positive variances). Non-Operations: Ten homes closed escrow in October bringing the total for the year to 140. This is slightly less than anticipated. Interest income continues essentially on plan. Significant items include: Salary and related expenses for all operations ended up approximately $31,200 over plan for the month. Reasons include the implementation of the minimum wage increase (an unknown at the time the plan was prepared) and extra labor in the Restaurant operation mostly relating to the additional revenue and to the level of staffing required for the veranda. The total of all salary and benefits is approximately $59,000 less than the plan for the ten months. The golf operation continues to lag in revenue. Expenses for the month were 10 percent less the plan but this was not sufficient to offset the loss in revenue. Irrigation water and power were $4,200 less than plan for the month. Food and Beverage revenue continues better than plan with October approximately $7,000 better. Breakfast and lunch, along with banquet sales are well above expectations. On the negative side, the cost of food was over the plan's 44 percent of revenue for the first time this year. Funds: The total of all funds declined $113,106. In addition to expense exceeding income for the month, there were major reserve expenditures during the month including $58,767 in partial payments of the gate system upgrade; a $38,880 partial (50 percent) payment for the headlamp tags for the gate system and $11,678 to complete the new Main Clubhouse entry doors and add additional fans to the Veranda. Capital improvement expenditures included $37,402 to replace the administration building phone system (long overdue). Delinquencies: Monthly activity consisted of four homeowners receiving a monthly reminder letter and five owners receiving pre- lien/intent to lien letters. Last month it was two and 11. Cumulative activity totals are: Nine owners have a lien placed against their Sun Lakes property totaling $17,373 in assessments, fees and penalties versus seven and $14,405 last month; 15 owners are at the Association's collection attorneys ($83,950 in assessments versus 15 and $83,950 last month). There are now 33 delinquent properties (0.99 percent of all properties) totaling $112,304 versus 35, 1.05 percent and $108,141. Finally, something from Albert Einstein, "The difference between genius and stupidity is that genius has its limits." Enuf: Comments, etc., to jdclark@dc.rr.com

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