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| SUN LAKES LIFESTYLES | APRIL 2016 | 7 From the Treasurer By John Clark, Master Board Treasurer SUMMARY: February was a good month for the Association. The month ended with a positive variance to the Association's plan of $26,726. This is substantially less than January's variance but does bring the Association to a total positive variance for the two months of $145,596. Eleven homes closed escrow in February bringing the total for the year to 40. The plan for the year assumes an average of 15 per month or a total of 30 through the end of February. Interest income is down $6,774 for the two months. As mentioned in last month's article, the Association is in the process of moving a major portion of the funds that had been held in the money market (pending an anticipated rise in interest rates) back into certificates of deposit which will have a higher interest rate. INCOME: February income came up short of the plan by $9,741. Reasons include reduced interest income, fewer than anticipated home sales and lower golf revenue (which is anticipated to pick up later in the year). The Food and Beverage operation had a good month, approximately $6,922 (5 percent) better than plan. Breakfast and dinner are positive to the plan with lunch coming up short. The lounge had a particularly good month coming in at 10 percent better than projected. Increased consumption of wine is the leading reason for the increase. EXPENSES: February expenses were positive to the plan by $37,090 which is good news but caution is advised. It is too easy for relatively small anomalies or changed timing of planned events to unduly influence the total numbers early in the year. By way of example, common area water expense was positive to plan by almost $8,500 because of an accounting adjustment booked in February. Tree maintenance was $13,344 less than plan in February because the work started later than originally planned. Golf course irrigation was unusually low in February but is forecast to be much heavier in March. HOMEOWNER EQUITY: As explained below, $1,016,350 was transferred out of 'Prior Years' Surplus.' Major reserve activity included continuing work on golf course bunkers ($58,351) and the on- going remodeling of the North Clubhouse kitchen and showers ($44,375). OTHER: The Board decided, at the February open session, to reduce the amount of 'Prior Years' Surplus' by $1,016,350 and reallocate the funds as follows: $500,000 to Capital Reserves; $350,000 to a newly established legal account to provide funds should the Association not prevail in a dispute with the city; $166,350 to be distributed to homeowners at the rate of $50 per homeowner. It will come in the form of a $50 credit on the April billing statement. FINALLY, it's baseball season and a quote from Tommy LaSorda, former LA Dodgers' manager seems appropriate: "I found out that it's not good to talk about my troubles. Eighty percent of the people who hear them don't care and the other twenty percent are glad you're having them." Comments, etc., to John Clark - jdclark@dc.rr.com "The Board decided… $166,350 to be distributed to homeowners at the rate of $50 per homeowner."

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