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| SUN LAKES LIFESTYLES | NOVEMBER 2015 | 7 From the Treasurer By John Clark, Master Board Treasurer OPERATIONS Summary: September was another good month for the Association. After nine months, income exceeds expense by $514,031. The plan for 2015 projected a negative variance at this point. When the actual results are compared to plan projections, the HOA currently has a $587,475 positive variance. NON-OPERATIONS Summary: The pace of residences being resold slowed in September (eight cleared escrow) with the nine month total now 174. That is 18 more than the plan projected for the entire year. Interest income continues to run less than plan due to investment funds being parked in money market funds in anticipation of the Feds increasing interest rates. With a current excess of income over expense of $514,031, saying 2015 is an unusual year is a bit of an understatement. It might be helpful to review the major elements of how the Association got to this point. Income is currently $317,012 positive to the plan. The largest element is the sale of the Association owned home on Wailea Beach Drive which increased income by $306,239. An additional $45,660 was received as the insurance settlement for the Clubhouse fire. Neither of these items were anticipated and there are offsetting expenses included in 2015 expenses. The Food and Beverage operation continues to exceed its projected revenue (by $43,527). Another $55,000 more than planned comes from the heightened home resale activity. Below expectations golf revenue is the primary offset. Expenses are down significantly ($265,409) and the golf operation has led the way in several areas. Irrigation water expense is down by $164,730 (including the common areas, irrigation is down $209,433). There are several reasons. There is the impact of the Association's investment (approaching $2 million) in water saving methods over the past few years (drip systems, controlling valves and sprinkler heads via weather station and satellite, replacing lake liners, installing a new pumping station for the Champion golf course with another to be installed on the Executive course, and more. Then there is the added pressure to reduce because of the drought which is reflected in the condition of the Sun Lakes Boulevard median, the Championship golf course and elsewhere. As a side note, golfers have been very complimentary about the results of the maintenance crew's efforts to maintain the playability of the course despite the watering reduction. Additionally Golf Course Maintenance Supplies (sand, fertilizers, trees and plants, etc.) currently has a positive variance to the plan of $50,158. The Food and Beverage operation deserves plaudits also. While the operation's expense is only $929 less than planned, this has been achieved despite increased patronage and despite rising food costs. Finally, there are the saving from reduced salary and related expenses. Through September, this expense category is $181,105 less than anticipated in the plan. The monthly differential has decreased as open positions have been filled and this should accelerate during the last few months of the year. In addition to unfilled positions, a number of benefit expenses are coming in less than anticipated, even considering the unfilled positions. FUNDS: The total of all funds increased by $178,326 month to month. As there was no Reserve or Capital Improvement activity during the month, the increase is due to the monthly funding flowing into the accounts. FINALLY, a couple of Halloween questions: What do you call a ghost with a broken leg? A hoblin goblin; What did the skeleton say to the bartender? I'll have two beers and a mop. Enuf: Comments, etc., to jdclark@dc.rr.com

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