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| SUN LAKES LIFESTYLES | AUGUST 2017 | 7 Treasurer's Report By John Clark BOTTOM LINE: Hard to believe that we are half way through 2017 however, more to the point, it has been a financially successful six months, despite June's budget busting maintenance and landscape activity (more below). Revenue has exceeded expense by $232,487 for the six months against a projection of an excess in revenue of $117,280. The result is the Association will enter the second half of the year with a positive variance to the plan of $115,207, a healthy beginning. NON-OPERATIONS: The plan anticipated 112 home resales for the six months; only 81 transferred which is a revenue loss of $28,975. Interest income on Association investments is running ahead of what was projected by $6,899 (14 percent). Unfortunately, we all still have to deal with the low interest rates. The Association's plan to add another $1.2 million to its investment portfolio is moving ahead, but slowly due to newly introduced security procedures to enhance the safety of investment transactions. REVENUE: Total revenue for the six months is essentially on plan. Revenue lost due to fewer home resales was partially offset by sales of retired golf carts and several lesser amounts. Golf revenue is down due to fewer annual members but has been partially offset by significantly higher guest green fees. The Food and Beverage operation is ahead due to increased restaurant sales partially offset by lower volume in the lounge. EXPENSE: HOA expense for the month of June was over plan by $108,560. Major causes were the drought landscaping installed in several large easement areas, and the upgrading of outdoor lighting, for safety reasons, in the front and rear of the main clubhouse. Despite this, total Association expense for the six months is $108,945 less than projected. The major contributors here are golf course irrigation expense ($68,770 less than projected) and golf course maintenance supplies ($38,971 less than projected). This expense reduction is largely attributable to the heavy rain experienced early in the year and it is reasonable to assume that some portion of the saving will be expended in the second half of the year. Finally, salary and related expense are $79,804 less than projected due to several personnel vacancies combined with less than expected medical expenses and payroll taxes. FUNDS: The total of all funds has increased by $401,549 since Jan. 1, 2017. As can be seen from the table, nothing has been spent, to date, in the way of Capital Improvement funds. Reserve fund expenditures total $590,815. Major expenditures have been for the South Clubhouse (kitchen remodel and patio cover), golf course grooming machinery (mowers, etc.), and refurbishing the lakes on the Executive golf course. DELINQUENCIES: There are 75 delinquent homeowners (2.2 percent of all homeowners) with past due amounts totaling $134,512. Of these, 59 are more than 30 days delinquent and account for $123,277 of the total. FINALLY: Experience is that marvelous thing that enables you to recognize a mistake when you make it again. (Franklin P. Jones) Comments to jdclark@dc.rr.com.

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