GENERAL MANAGER’S REPORT/ACTIVITY UPDATE 08/15/2024
Account Statements: All bank accounts have been reconciled for July without discrepancy.
As relayed previously, the Board of Directors voted to move $250K of our Operating Account to a Fidelity Money Market this past March. With the transfer, you will now note on the Balance Sheet, that we have delineated the Operating Account into the two current accounts at the BOSV and Fidelity. The total of the two, just over $1M, is the entire Operational Account. There is however one caveat; currently still held within the BOSV Operational Checking Account is the $340,692.18 of the Major Maintenance Account which was transferred on May 9th. For those who may not have been able to join us over the course of the last few months, the transfer of the Major Maintenance Account was approved for the purpose of covering the construction costs of the Green Canyon Water Project. Whereas the Association has yet to receive our first invoice for materials, the money will remain until such time, within our Operational Checking Account.
With regards to earned interest income, I am pleased to report that through the end of July, the members have earned over $17K in passive savings income. This is $9K beyond the annual projection of 2024 and over $12K more than this time last year.
Business Activities:
The year-to-date financials finds that at the close of July:
- Gross Profits remain consistent at 1.21% better than budget, closing at approximately $1.7M.
- Expenses for daily operations are trending roughly 10% lower than budgetary forecasts to the tune of $89K.
- Net Operating Income, prior to depreciation, is 13.99% better than budget with a closing number of $900,653.07.
- The Daily Operational Budget for the Golf aspect of our Association shows that that departments net income, prior to depreciation is in the black by $211,406.33 as of July 31st which is a 45% increase over 2023. This is due to $63K increased income over 2023.
- The YTD cash assets as of the 7/31/2024 Balance Sheet total $1,976,425.95. Whereas part of our Association business is seasonal, we are now reaching the peak of our income season. As the months transition towards fall and inevitability winter, we will see the amount in our Operational Checking Account reduced to cover ongoing expenses.
- The summary of the financials are available on the SVRA website and detailed copies are always available by request at the Association Office.
Assessments:
2024 Assessment Status: As of August 8th, we have collected 1879 lots or 93.20% collected with a remainder of 56 lots to reach our goal of 97% collectability. The 5 year average is 93.40% collectability for this date, thus we are trending well. We have continued our collections efforts and have recouped over $24K for the July 2023 grouping of accounts, which is just over a 46% collectability rate. In terms of the 2024 grouping of accounts we remain at roughly 15% collected at this time.
With the Consumer Pricing Index for the month of July released yesterday, we now know that our 2025 assessment ‘base maximums’ will be based upon a 3.2219% inflation rate. This is approximately 4/10th of an increase over 2024. As the budget season is set to begin in September, the Board of Directors will be analyzing potential equitability strategies within our 7 plat groupings, in an effort to reduce the disparity felt by our members while balancing the need for immediate and future financial stability. To honor our employees’ privacy, the Association will not be releasing positional salaries, with the exception of the General Manager, whose salary is part of the annual tax return. In keeping with the prior year’s budget, the four departments will be itemized individually to include all employment related expenses.
Similarly to the previous year, our first draft of the 2025 budget will be available for the membership by way of our website on Friday, October 4th. As we consider this a living document until its inception in November, we will once again provide all alterations publically to our membership along with open discussion at our October meetings. Areas of note for the upcoming season will include the following: property taxes and insurances will be subdivided via correlating department, a further extrapolation of golf tournament income coupled with public purchase of punch cards and passes, along with the cessation of the golf course income subsidizing Association wide fuel costs, additional winter plowing and all winter recreation.
Volunteer appreciation:
This past season has been hot and dry, and the Cedar Creek course has felt summer’s sting. We want to acknowledge and thank the following gentlemen who have volunteered their time to hand water sections of our course. Tim Thompson hole #2, Fred Lamming #3, Butch Terry #4, Richard Endres #4 & 5, Tom Martin #6, Rick Roundy #7, Vaughn Clarke #10, Ken Ballard #11, Steve Gieck #13.
With the concrete pouring of the driving range pad taking place next Thursday, we also need to recognize Jeff Earl for his expertise and continual assistance in seeing this and past projects come to fruition.
And of course, our own Mike Perretta for selflessly giving his weekend hours to volunteer and man our beverage cart this season.
For the Volunteers out there, new and old: The Administrative Office will be launching a digital Volunteer Project Request form on our website where the department managers along with the Board of Directors will review your proposals and when accepted, will provide in turn, their written consent. This new format will in essence curb all misrepresentations of volunteer service projects but will also provide those serving a sense of security by way of ensuring you are covered via our Volunteer Accident Policy. If you are looking for a way to meet your neighbors, while offering your assistance to the community, we’d love to help you get plugged in, for many hands make light work.