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| SUN LAKES LIFESTYLES | JUNE 2017 | 9 Treasurer's Report By John Clark BOTTOM LINE: April ended with a positive variance of $57,794 in Net Income and the Association is now ahead by $201,415. HOA and Golf improved their performance relative to plan for the four months, Food and Beverage gave back the relatively small amount of $3,417. On a different note, the Association has been alerted by the city to expect a 'significant' increase in water rates applying to both the Association and residents (irrigation expense for the Association is more than $1 million annually). The actual amount of the increase is supposed to be available by June with an effective date as early as October 1 of this year. State imposed water standards (which are being challenged in court) have generated a requirement for the city to build new water treatment facilities. NON-OPERATIONS: Home transfers of ownership continue short of expectations with April recording 14 against a plan of 19. Projecting the current rate of transfers to year's end, would mean a total for the year of 153 compared to the 223 in the plan. At $950 per transfer, this would result in a revenue shortfall of $66,500. Separately, the Association has approximately $1.2 million in funds available for investing. Details are being worked out with the Association's investment banker and the funds should become part of the Association's investment portfolio within the next 30 days. INCOME: The negative variance to the plan for the HOA of $18,241 is due to the reversal of an overstatement of income in the March financial data. Golf and the Food & Beverage operations continue better than projected. The Association earned approximately $14,000 from the recent sale of used golf carts, an item that was not included in the original plan. EXPENSE: Salary and related payroll expenses were under plan by roughly $40,000 for the month. Three departments were largely responsible: Restaurant, Golf course maintenance (rain) and Facility maintenance (several vacancies). While Restaurant labor expense decreased to a normal range for April, a good sign, it will continue to be a challenge to maintain plan goals, while meeting the membership's service expectations. Expenses for the four months are $168,597 less than planned. Major contributors are: labor down $49,300, landscape expense (excluding irrigation) down $38,000 and irrigation water down $69,700. Cost of Food for the restaurant, although improved for April, is $44,500 over plan for the year. FUNDS: The total of all funds remains essentially unchanged from last month. DELINQUENCIES: Total delinquent properties increased by five in the month (to 77) and total delinquent dollars rose by $3,624 (to $127,177). The law allows the Association to place a lien on a property that is 90 days delinquent but must wait to pursue foreclosure until the delinquency exceeds $1,800 or is twelve months overdue. The Association is now taking a more proactive role in addressing delinquencies including contacting delinquent owners early to discuss options. Overall, the Association still has a very low delinquency rate compared to similar associations. Finally, a thought for the day: "Abstinence is a good thing if practiced in moderation". Comments to John Clark at jdclark@dc.rr. com