The March financial results show that the overall revenue was 0.5% unfavorable to budget. Food & Beverage and Arts & Crafts departments fell short of the planned revenue targets for the month. New home closings were positive with 16 including 8 villas for the month of March and a year to date total of 42 with 15 villas. Resale home closings finished at 36 for the month with a year-to-date total of 69. Both new and resale home closings have exceeded the budget forecast and continued the positive trend from last year.
The March expenses were favorable to budget at 13.9% under budget. Project timing and lagging invoices for Tuscany Falls wall painting, Eagle’s Nest roof repairs and road projects contributed to the under run. The capital expenditures were also under budget because of several large capital projects having been delayed. 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 (revenue less expenses) of $1,239k. This was before adjusting for the amortized Reserve contribution from HOA dues and Golf fees surcharge totaling $673k and capital expenditures of $290k. These adjustments totaling $960k reduced the operating surplus to $276k. However, the budget expenditures were offset by the planned use of funding from the Reserve and Previous Year’s Surplus. There were $420k of project expenditures funded from the Reserve and $41k of projects expenditures funded from the Previous Years’ Surplus. These additional funds had a $461k positive contribution resulting in an YTD net operating surplus of $737k with $323k having been generated by Golf Operations.
The current balance as of March 31, 2017 in the Reserve accounts total $7,894k which includes the first half contribution from the 2017 HOA dues and the golf surcharge contribution from the 2016 greens fees. The Reserve funded project expenditures, identified above, will be funded from the Reserve with a withdrawal next month and is not reflected March Reserve account balance.
The budget performance for the major departments was as follows:
Activities YTD performance was a net deficit of $16,559, which was short of plan by $9,959, due to shortfall in the planned revenues. Food & Beverage YTD performance was a net deficit of $50,131 against a planned deficit of $96,156. This was $46,025 better than plan. Finally Golf Operations YTD performance resulted in a net budget surplus of $323,259. 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.