The August financial results show that the overall revenue was 0.6% unfavorable to budget. New home closings were positive with 13 including 6 Villas for the month of August and a year-to-date total of 94 with 33 Villas. Resale home closings finished at 18 for the month with a year-to-date total of 187. Both new and resale home closings have exceeded the budget forecast and continued the positive trend.
The August YTD expenses were favorable to budget at 1.7% under budget. Project timing and lagging invoices for Eagle’s Nest building painting, reduced Tuscany Falls exterior community wall painting cost and lower wage expense 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 net 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 an YTD deficit from Operations of $129k (revenue less expenses) after Reserve fund contributions of $1,786k (HOA Dues Reserve contribution plus Golf Fee surcharge). Adjusting for capital expenditures of $815k resulted in an operating deficit of $944k; however, the budget expenditures were offset by the planned use of funding from the Reserve and Previous Years Surplus. There were $1,266k of project expenditures funded from the Reserve and $58k of projects expenditures funded from the Previous Years’ Surplus. These additional funds had a $1,324k positive contribution resulting in an YTD net operating surplus of $380k with $334k having been generated by Golf Operations.
The current balance in the Reserve accounts total $8,717k as of August 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 August YTD budget performance for the major departments was as follows:
Activities YTD performance was a net deficit of $113,914, which was $4,067 greater than plan. Food & Beverage YTD performance was a net deficit of $524,382 against a planned deficit of $457,871 as we are in the slow season. This deficit was $66,511 greater than plan. Finally Golf Operations YTD performance resulted in a net budget surplus of $333,619. 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 HOA Board 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.