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CoMMunIty news | sun lakes lIfestyles | May 2015 | 5 From the Treasurer By John Clark, Master Board Treasurer OPERATIONS SUMMARY: Income exceeded expense for March but not to the extent anticipated in the year's plan with the result that the Association's favorable relation to the plan was reduced by $19,411 for the month and the Association is now only $6,687 better than plan after three months. NON-OPERATIONS SUMMARY: The pace of houses going through escrow picked up with 11 for the month and now 24 for the year. The plan projected 39. Interest income is very close to plan. INCOME: Lower golf revenue was the significant contributor to March's negative performance. Creating additional golf revenue is a challenge and options continue to be reviewed. Investigation into the impact of 50 play cards on daily green fee revenue resulted in the conclusion that it will take more time for the specific impact to become identifiable. Restaurant revenue picked up in March and is essentially on plan for the year. EXPENSE: Salary and related benefits expense continues at less than plan ($26,345 in March, $45,371 for the three months). Primary reason is the loss of four employees (who will be replaced). Dry weather continues to impact irrigation requirements with the plan exceeded by $19,128 in March and $48,880 for the three months. A bulk purchase of fertilizer for the golf courses was made in March at a cost of $26,500. The plan anticipated this purchase in April so the account for March has a negative variance to plan of $24,200 which should be rectified in April. The cost of food is rising driven in part by the drought. This problem could become more serious as the year progresses. For example, egg prices have tripled in last 12 months. FUNDS: Total funds increased by $88,092 for the month. Activities during the month include renovating bathrooms on the north side golf course, bunker renovation on the Championship course, partial payment to the golf course architect doing the conceptual work for a more drought resistant course, replacement of the gas convection steamer oven in the restaurant, pool table replacements and a partial payment relating to the water damage to the Main Clubhouse. DELINQUENCIES: This month 10 owners have received pre lien / intent to lien letters totaling $8,098 in assessments (as compared to last month's total of 10 owners and $12,788). Combined delinquencies now total $74,955 through March 31, 2015 (as compared to $75,832 reported last month). Total delinquent properties total 30, or 0.90 percent of 3,327 properties (as compared to 31 last month or 0.93 percent). FINALLY, a question periodically comes from homeowners as to why the homeowners' equity (i.e. the difference between the Association's assets and liabilities) shown on the table (this month - $1,186,850) seems low when you consider the monetary value of the golf courses, buildings and other common areas. The answer relates to the fact that the Association was created as a vehicle to maintain the community areas and facilities that the developer contributed to the community (as a whole). The monetary value of the common areas and facilities is included in the property tax base of each property owner. So while the common areas (streets, golf courses, buildings, etc.) do have a monetary value, the ownership is not with the Association, it is with the individual owners (so let's keep it looking good). It would, therefore, be incorrect to reflect the monetary value of the property on the Association's books. Correction: Last month's report referenced 'flood damage above Breckenridge.' It should have read 'water damage to the Main Clubhouse.' Enuf: Comments, etc., to jdclark@dc.rr.com

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