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| SUN LAKES LIFESTYLES | JANUARY 2018 | 9 Treasurer's Report By John Clark BOTTOM LINE: We took a double hit in November as revenue came up short of plan (by $14,203) and expenses exceeded the plan (by $15,441). The net effect was to reduce (by $29,644) the accumulated surplus to $163,016. That is a 1.3 percent variance from plan after eleven months. NON-OPERATIONS: After last month's 21 homes closing escrow, it could be expected that November would come up short, and it did - only eight homes closed. Interest income continued to exceed plan and is now $14,627 (16 percent) better than had been projected.A higher target for interest income has been established for 2018. As a reminder, the priorities for the Association's investment policy are first - safety of principal ; second - liquidity; third - return on investment. REVENUE: Revenue for the HOA cost center was impacted by fewer home resales. Golf operations were ahead due to higher than anticipated revenue for daily green fees, both homeowners and guests. The Food and Beverage operation came up short due to reduced banquet activity and lower Lounge revenue, perhaps in anticipation of December festivities. EXPENSE: Lower labor expense (by $28,331) was the main driver for expenses coming in under plan. The Food and Beverage operation accounted for $25,749 of that total due, primarily, to efficiencies introduced by management and the on-going effort to offset the high costs of food the operation is experiencing. Golf operations were well over budget due to high irrigation costs ($17,772 over budget) and repair work on concrete cart paths on the golf courses ($46,892 over budget). FUNDS: No significant change in November in the total of all funds however, the Reserve established to provide funds for a potentially adverse decision in the ongoing dispute with the Bureau of Equalization was reduced by $85,600, because of a partial payment to the BoE, on the taxes claimed to be owing. DELINQUENCIES: November saw the total number of homeowners delinquent on their assessment accounts increase from 71 to 104, however there was very little change in the balance owed the Association. The reason is that the increase in delinquent homeowners was in the 30 days or less category which went from 23 to 58 delinquencies. FINALLY: From Oprah Winfrey: "Cheers to a new year and another chance for us to get it right." Comments: jdclark@dc.rr.com.

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