Jack Gregory, President, PCHOA Board of Directors
Ever wonder how the PebbleCreek HOA’s finances are structured? Yeah … probably not. But if you have or want to dazzle your friends with your knowledge of HOA operations, here is a brief primer.
Operating Fund
Think of this fund as the Association’s checking account that supports the daily operation of all elements within PebbleCreek: payroll, utilities, the restaurants’ physical stock inventory, services contracts such as landscaping maintenance, fertilizer for the golf courses, and the list goes on. The Operating Fund’s sources of funding are the annual assessment and revenue generated throughout the year from golf, fitness, food and beverage, activities, etc.
Reserve Fund
A savings account best describes this fund. This fund is used for the lifecycle replacement or maintenance of assets valued at or over $5,000. As things (roads, roof, pool heaters, AC units, etc.) wear out, the Association turns to the Reserve Fund as the source for these repairs or replacements. The general manager and his staff maintain a comprehensive list, referred to as the long-range plan, of all Association assets and their respective projected replacement date and cost. Approximately 27% of each homeowner’s annual assessment funds the Reserve Fund. Since the Reserve Fund does not face the same short-term spending demands as the Operating Fund, a significant percentage of the Reserve Fund can be made available for investment, and as of the end of July, approximately 80% of its available dollars were invested.
Community Enhancement Fund (CEF)
The CEF was established by an amendment to the Association’s Covenants, Conditions and Restrictions (CC&Rs) in 2019 by a vote of the homeowners. Over 82% of households voted on the ballot issue with 75% of those voting in favor. As its name says, the fund is used to support planning, development, design, and implementation of new projects or purchases of new assets that are enhancements to the community. Since its first use in 2020, the fund has contributed toward many such enhancements, including, among others, the new pickleball courts, the Westwind Tavern, and a projection system for the Renaissance Theater. The CEF receives funding from a fee paid by the purchaser of any resale home within PebbleCreek. The CEF fee is equivalent to one year’s annual assessment or presently $3,268. From 2020 through 2024, PebbleCreek has seen resales average a little over 300 per year with annual contributions to the fund averaging approximately $880,000. Since CEF expenditures are generally few in any budget year and well planned, a significant percentage of the CEF can be made available for investment to further grow this fund. As of the end of July, 96% of this fund’s dollars were invested.