The June financial results show that the overall revenue was 0.4% unfavorable to budget. New home closings were positive with 11 including three Villas for the month of June and a year-to-date total of 73 with 24 Villas. Resale home closings finished at 15 for the month with a year-to-date total of 141. Both new and resale home closings have exceeded the budget forecast and continued the positive trend.
The June YTD expenses were favorable to budget at 5.4% under budget. Project timing and lagging invoices for Tuscany Falls/Eagle’s Nest building painting, Eagle’s Nest carpet replacements, Eagle’s Nest bathroom remodel 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 $534k (revenue less expenses) after Reserve fund contributions of $1,340k (HOA Dues Reserve contribution plus Golf fee surcharge). Adjusting for capital expenditures of $524k the operating surplus was reduced to $9.5k; however, the budget expenditures were offset by the planned use of funding from the Reserve and Previous Years Surplus. There were $729k of project expenditures funded from the Reserve and $45k of projects expenditures funded from the Previous Years’ Surplus. These additional funds had a $774k positive contribution resulting in an YTD net operating surplus of $783k with $484k having been generated by Golf Operations.
The current balance in the Reserve accounts total $8,700k as of June 30, 2017. This balance reflects the 1st quarter transfer of $420k from the Reserve and a deposit of $1,204k from the second half HOA dues. Future Reserve withdrawals will be based on actual expenditures incurred for each quarter.
The June YTD budget performance for the major departments was as follows:
Activities YTD performance was a net deficit of $42,393, which was better than plan by $24,119. Food & Beverage YTD performance was a net deficit of $282,549 against a planned deficit of $258,074 as we approach the slow season. This deficit was $24,475 greater than plan. Finally Golf Operations YTD performance resulted in a net budget surplus of $483,909. 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.