The accompanying financial report is using a new format that should make it easier to understand the monthly Operations budget performance. This format separates the funds collected for the Reserve (HOA dues and Golf surcharge) from the Operating budget revenue in order to provide a more transparent understanding of the Operating budget performance.
The April financial results show that the overall revenue was 0.7% unfavorable to budget. Food and Beverage and Arts and Crafts departments fell short of the planned revenue targets for the month. New home closings were positive with 13 including six Villas for the month of April and a year-to-date total of 55 with 21 Villas. Resale home closings finished at 29 for the month with a year-to-date total of 98. Both new and resale home closings have exceeded the budget forecast and continued the positive trend.
The April expenses were favorable to budget at 10.1% under budget. Project timing and lagging invoices for Tuscany Falls’ wall painting, Eagle’s Nest/Tuscany Falls roof repairs, road projects and wages under run contributed to the expense under run. The capital expenditures were also under budget because of delays in Eagle’s Nest street sign replacement, Eagle’s Nest Golf Course pump replacement and Eagle’s Nest kitchen dishwasher replacement projects having been delayed. 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 $749k (revenue less expenses) after Reserve fund contributions of $898k (HOA Dues Reserve contribution plus Golf fee surcharge). Adjusting for capital expenditures of $346k the operating surplus was reduced to $403k; however, the budget expenditures were offset by the planned use of funding from the Reserve and Previous Years Surplus. There were $454k of project expenditures funded from the Reserve and $41k of projects expenditures funded from the Previous Years’ Surplus. These additional funds had a $495k positive contribution resulting in an YTD net operating surplus of $898k with $458k having been generated by Golf Operations.
The current balance as of April 30, 2017 in the Reserve accounts total $7,901k. This balance does not reflect the first quarter transfer of $420k from the Reserve which will settle in May. Future Reserve withdrawals will be based on actual expenditures incurred for each quarter.
The budget performance for the major departments was as follows:
Activities YTD performance was a net deficit of $32,833, which was short of plan by $3,715, due to shortfall in the planned revenues. Food and Beverage YTD performance was a net deficit of $44,362 against a planned deficit of $82,234. This was $37,872 better than plan. Finally Golf Operations YTD performance resulted in a net budget surplus of $458,476. 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 and Financials. The 2017 budget with detailed standard set of accounting financials is also available to view at the Resident and Guest Services at the Eagle’s Nest Clubhouse desk.