GENERAL MANAGER’S REPORT/ACTIVITY UPDATE 03/21/2024
Account Statements:
All bank accounts have been reconciled from December 2023 to February 2024 without discrepancy.
Assessments:
2024 Assessment Status: As of March 15th we have collected 1321 lots with 695 remaining or at 65.53% collected.
Business Activities:
The Administrative Office has adopted a working budget for the remainder of 2024. A formula error was found in the 2024 Operating Budget. Areas affected are the departments of Admin, Pro Shop and Greens as it relates to the separated payroll taxes. This formula has since been corrected and internal procedures have been firmly put in place with the Operating Budget Calendar to ensure a triple verification method will occur prior to the Board vote on November 21, 2024 for the 2025 calendar year.
The Working Budget has taken into consideration the formula correction, restructuring within the Golf Course Maintenance Department, refactoring our 3% uncollectable assessments to include the potential offsetting income of previously marked delinquent accounts, decreased Q1 anticipated expenditures on equipment along with the decision to postpone the planned Capex item of the concrete wash pad under the Barn. The postponement will allow us to have a full season with our new Cedar Creek Center/Barn water meter. Our water usage is reported on an annual basis to the Department of Environment Quality as it relates to our potential septic usage at the Cedar Creek Center. We are monitoring our water usage monthly and will be able to better determine if we will have the ability to utilize the Barn for golf cart washing in the future.
The year to date financials finds that at the close of February:
- Gross Profits are hovering at 2.66% better than budget.
- Expenses for daily operations are trending at our budgetary forecast.
- Net Operating Income is 3.48% better than budget with a closing number of $816,075.54.
- The YTD cash assets as of the 2/29/2024 Balance Sheet total $1,431,045.41.
- The summary of the financials are as always, available on the SVRA website. Should any member wish to have further details or have an area extrapolated, I’d be more than happy to assist in their greater understanding of our financials.
Our CD’s are working for us! At the beginning of 2024, I approached the Board with regards to non-callable or protected CD’s with monthly interest payments verses at maturity as we had two coming to maturity. With another CD slated to mature in April, we will be looking to capitalize once again utilizing the same parameters. At this time, we have 4 separate CD’s totaling $400,000 and averaging 4.77%.
In keeping with the capitalization of interest, our Operating Checking Account will be reduced by $250,000 so that we may open a second interest baring Money Market for the months of April-October. When analyzing past financial data, our trends show that throughout the income driven months and to offset expenditures, we only need approximately $250K. Where the funds will be held in a Money Market account, we will always have access to funds immediately without the potential loss of interest or penalties from a CD. My goal is to make your money work for you!
With March 1st now considered our delinquency date for assessments via our Operating Policy, myself and our Bookkeeper, Heather will be initiating our second round of collections. At this time, we have another 33 accounts which will undergo the process. In terms of round 1, which began last July, we have to date collected $13,941.35 or 26.86%. With one property slated for sale we anticipate to collect another $2,146.57 via our lien. This would bring us to 31% collectability.
I am pleased to report that all of the Association’s files are now successfully stored and backed up on the cloud. Michelle, our Member Services Coordinator just completed the manual transfer of all previously scanned files and saved the members a whopping $7,000 conversion fee.
Capital Campaign
Currently our Capital Campaign savings account rests at $23,602.22
Facilities:
Grab a slice of Heaven! The Grill will be transformed for the 2024 season to sell pizza. As the time approaches, we will be connecting with Katie to help announce this exciting new venture.
A big thank you to Ernie for spearheading the bathroom remodel within the Golf Course Maintenance Shop! The facilities department has also been working diligently on the recent projects of revamping their second story shop within the pool house, electrical needs within the Cedar Creek Center, and of course, snow removal. As the melting begins, so too does the flurry of needs to reopen all winterized buildings and facilities for the upcoming season. Please say hello to the guys and thank them for all they do!
Golf Course Maintenance:
The course has lay sleeping for a few months and the guys are itching to spread the black sand to bolster the sun’s efforts in the melting process. As the days and weeks progress, you will see this dedicated crew, led by Kurt, out on the snowmobile spreading black sand, plowing the cart paths, and cleaning debris from the course.
With the departure of our mechanic-in-training, Ethan, our men, led by Kurt, have stepped up to the plate and offered their experience, banding together this season to tackle most, if not all of the maintenance. This will be out Beta Test year to fully determine if we indeed have the need for a full-time year-round mechanic and working closely with Kurt, we will establish a plan for 2025.
Due to the prices of concrete, Kurt is looking in to an alternative of crushed granite for the #11 cart path. When more information is available we will circle back with the membership.
Everyone, think spring and let’s get out there early this year!