PCHOA Budget Summary July 2017 YTD

The July financial results show that the overall revenue was 0.5% unfavorable to budget. New home closings were positive with eight including three Villas for the month of July and a year to date total of 81 with 27 Villas. Resale home closings finished at 19 for the month with a year to date total of 169. Both new and resale home closings have exceeded the budget forecast and continued the positive trend.

The July YTD expenses were favorable to budget at 4.3% under budget. Project timing and lagging invoices for Tuscany Falls/Eagle’s Nest building painting, Common Area landscaping, reduced Tuscany Falls exterior community wall painting cost and wages under-run contributed to the expense under-run. The capital expenditures were also under budget because of delays in Eagle’s Nest carpet replacement, Eagle’s Nest Golf course pump replacement, Eagle’s Nest bathroom remodel and Eagle’s Nest kitchen dishwasher replacement projects. These delays and timing have contributed to the budget surplus identified in the following performance summary. As the year progresses the actual expenditures will match up with the budgeted dollars and the year-to-date results will finish more aligned with the planned budget.

The budget performance resulted in a YTD surplus from Operations of $333k (revenue less expenses) after Reserve Fund contributions of $1,565k (HOA Dues Reserve contribution plus Golf fee surcharge). Adjusting for capital expenditures of $606k generates an operating deficit of $273k; however, the budget expenditures were offset by the planned use of funding from the Reserve and Previous Years Surplus. There were $855k of project expenditures funded from the Reserve and $45k of projects expenditures funded from the Previous Years’ Surplus. These additional funds had a $900k positive contribution resulting in an YTD net operating surplus of $627k with $441k having been generated by Golf Operations.

The current balance in the Reserve accounts total $8,709k as of July 31, 2017. This balance does not reflect the second quarter transfer of $309k from the Reserve which is planned to be settled next month. Future Reserve withdrawals will be based on actual expenditures incurred for each quarter.

The July YTD budget performance for the major departments was as follows:

Activities YTD performance was a net deficit of $81,683, which was better than plan by $5,671. Food & Beverage YTD performance was a net deficit of $399,572 against a planned deficit of $342,981 as we approach the slow season. This deficit was $56,591 greater than plan. Finally Golf Operations YTD performance resulted in a net budget surplus of $440,837. This was net of capital expenditures and contribution to GIF from the golf green fees revenue.

The monthly budget performance summary reports will be posted on the PebbleCreek HOA Website at www.pebblecreekhoa.org. The HOA financials can be accessed by going to the HOA website Home page, select Governance on the menu bar then scroll down and click on Budget & Financials. The 2017 budget with detailed standard set of accounting financials is also available to view at the Resident & Guest Services at the Eagle’s Nest Clubhouse desk.