The February financial results show that the overall revenue was 0.9% 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 11 including three villas for the month of February and a year to date total of 26 with seven villas. Resale home closings finished at 10 for the month with a year-to-date total of 33. Both new and resale home closings have exceeded the budget forecast and continued the positive trend from last year.
The February expenses were favorable to budget at 11.1% under budget. Project timing and lagging invoices for large road projects contributed to the under run. The capital expenditures were also under budget primarily due to the Eagle’s Nest Pump replacement project 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 YTD performance from operations resulted in a surplus (revenue less expenses) of $800,076. This was before adjustments for a Reserve contribution from HOA dues of $415,516, the Golf Infrastructure Fund (GIF) contribution from golf green fees of $28,960 and capital expenditures of $197,831. These adjustments totaled $642,307and reduced the operating surplus to $157,769. In addition there were $192,854 of project expenditures funded from the Reserve and $40,786 of projects expenditures funded from the Previous Years’ Surplus. These additional funds had a $240,512 positive contribution to the overall surplus from operations. After these adjustments the YTD budget performance was a net operating surplus of $398,291 with $172,571 having been generated by Golf Operations.
The Reserve funded project expenditures, identified above, are reported monthly; however, the actual Reserve withdrawals will be made quarterly. The current balance as of 2/28/17 in the Reserve account totals $6,712,119. This total does not reflect the above mentioned Reserve funded project expenditures or the first half contribution from the HOA dues. These will be reflected in the March Reserve account balance.
Also, there were several projects that were carried over from 2016 and generated a surplus at the end of the 2016 budget year. This Previous Years Surplus will be used to fund the 2017 expenditures from these 2016 carry over projects. The monthly budget performance summary will show the actual use of these Other Planned Funding Sources, both Previous Years Surplus and the Reserve.
The budget performance for the major departments was as follows:
Activities YTD performance was a net deficit of $1,965, which was short of plan by $4,192, due to shortfall in the budgeted revenues. Food and Beverage YTD performance was a net deficit of $60,736 against a planned deficit of $94,462. This was $33,726 better than plan. Finally Golf Operations YTD performance resulted in a net budget surplus of $172, 571. 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.