October 2016 YTD Budget Summary

The October budget financials reflect the strong revenue performance to start the last quarter of the year. The October YTD revenue is 3.8% favorable to budget with all departments continuing to exceed their revenue targets for the year. Continued homeowner support of the PebbleCreek amenities has been a significant factor to the positive financial results.

October had 10 new home closings for a year to date total of 109 including 17 Villas which has already exceeded the year end budget of 108. Resale home closings finished at 19 for the month and a total of 228 YTD also exceeding the year end budget of 168. Both new and resale home closings have contributed to the favorable revenue results.

The October YTD expenses were unfavorable to budget at 3.0 % over budget due to increase G & A services expense driven by the favorable revenues and the increased cost of sales offset by positive revenue. The capital YTD expenditures were $1.682M running 5% over budget due to completion of the Tuscany Falls Theater Expansion/Renovation projects and associated invoices being processed. These costs will be offset once the anticipated funding from RCI and the PAC is recognized.

The October year to date amortized contribution to the Reserve from HOA dues was $1,487,612. The current total balance in the Reserve account is $6.9 M which includes the $222K of Golf Infrastructure Funds (GIF) being tracked separately in the GIF Reserve. The third quarter Reserve withdrawal of $218,198 was made in October for a total YTD withdrawal of $1.256M for planned reserve funded projects. The $1 per round golf fee being collected for the GIF totaled $94,464 through October and will be transferred to the GIF Reserve at year end. The October net budget results show an overall budget deficit of $163,577 of which $153,165 was due to Golf Operations pending transfer of Previous Years Surplus funds to offset approved project expenditures.

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 2016 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.