Finance Committee: An Outstanding Month

Fred Raach, Chair

In May, the operating departments generated $37,000 more gross revenue than expected, increasing the yearto-date amount to $120,000 over planned. Also, this month’s expenditures were $42,000 less than budgeted, raising the savings for the year to $135,000. The combined effect, then, is net revenue of $255,000, better than what was forecast in the budget.

Major contributors to the increased gross revenue were the Administration, Spa at Kilaga Springs, and the WellFit Department. Escrow transfer fees from more than expected home sales and higher interest earnings on invested funds raised the Administration’s revenue. The Spa at Kilaga Springs had the highest monthly revenue in its history, 119% higher than this month last year. WellFit continues to attract more residents to its class offerings and shows consistent revenue growth.

The expense savings were largely driven by the Administration Department, which benefits from lower than budgeted costs for the security contract and the storage space rental and budgeted election expenses that had been paid in a prior month. The Facilities and Landscaping Department also contributed with lower than budgeted utilities costs and a favorable month in maintenance, supplies, and repair expenses.

The chart below shows how each department’s actual net revenue relates to its budget through the first five months of this year.

The Association’s bottom line continues to benefit from the high short-term interest rates currently available. The Community Enhancement Fund, the Reserve Fund, and operations are earning attractive rates on their cash balances while having rapid access if funds are needed.

Reserve spending in May was $54,000, bringing the total so far this year to $515,000, a 4% increase over the total through May of 2023. The data for the reserve study update have been developed by the department heads and the Executive Director and reviewed by the Properties Committee before being submitted to the Browning Organization to ensure the most accurate picture of what will need replacement in the next few years.

Spending of Community Enhancement funds also continues to be closely monitored. Through May, $54,000 has been spent, and the fund has earned $8,200 in interest. An incorrect FMA payment was refunded, reducing the unallocated balance of the fund to $376,000 at the end of May.

Detailed financial information is available as part of the agenda each month in the eNews announcement of the Finance Committee meeting and from the Resident Website.