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| SUN LAKES LIFESTYLES | DECEMBER 2015 | 7 From the Treasurer By John Clark, Master Board Treasurer OPERATIONS: As was September, October expenses were expected to exceed income. Instead, with higher income and lower expense the month ended with a positive variance of $27,398. Year to date income now exceeds expenses by $540,741 and, when compared to what the plan anticipated for the ten months (a negative $123,988) the surplus is now $664,729. The plan assumes November and December will have positive variances which will erase the negative $123,988. Plan ends the year with income equaling expense (i.e. no surplus or loss) due to the Association's non-profit status. NON-OPERATIONS Summary: Home resales rebounded in October with 23 clearing escrow. Total for the year is now 198 or almost 20 per month, a rate not reached in recent memory. The plan anticipated 156 for the entire year. Last month's article outlined the significant reasons generating this year's sizeable surplus – sale of Wailea Beach home, insurance settlements, major reductions in expense particularly in golf (beyond irrigation), home resale fees and salary expense. The following addresses the month of October which is a five week month and that does impact both revenue and expense. Income showed a positive variance to the plan of $27,486. The Golf revenue was 5.7 percent ($6,647) better than plan primarily due to higher guest revenue. The Restaurant and Lounge operation was 12.3 percent ($19,344) better than the plan led by heavy breakfast, lunch and banquet activity; the Lounge patrons also contributed mightily. Fees from the additional home resales added another $9,600. Expenses were $50,456 positive to plan. Irrigation water savings of $70,800 was the most significant (a concern is developing that perhaps reduced watering on the golf courses may need to be adjusted back somewhat). Golf maintenance supplies were positive to the plan by $32,500, as a major seed purchase did not occur. These saving were partially offset by negative variances in electricity for the common areas, salary and related expenses and cost of food for the restaurant (combined total $33,200) and a number of other expense accounts with smaller negative variances. FUNDS: October was as slow month for Capital Improvement and Reserve activity with only $25,032 expended. Remodeling work at the South Clubhouse for $15,000 and the final payment on the speed monitor of $6,071 were the major items. Solar Farm: The ballots have been sent out, with the election result to be announced in the South Clubhouse Dec. 18. From the Board's perspective this project (cost estimated at approximately $1.6 million) presents an opportunity to significantly reduce the Association's electricity expense. The project will be financed without any special assessment on homeowners. Savings, estimated at $200,000 per year, would begin in the latter part of 2016 (assuming timely approval by the city) and would, at least partially, offset future monthly assessment increases. Finally, from Winston Churchill, "Don't worry about avoiding temptation. As you grow older, it will avoid you." Happy Holidays! On behalf of the Associa-PCM family, we would like to thank you for the opportunity we have to serve you. We wish you and yours a joy filled holiday season! BOARD MEETING CANCELED The open session board meeting scheduled for Thurs., Dec. 17, at 6:30 pm in the Main Clubhouse Ballroom has been canceled. The next open session meeting is scheduled for Thurs., Jan. 21

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