Memo. Hot Springs Village Property Owners Association Board of Directors Report

Size: px

Start display at page:

Download "Memo. Hot Springs Village Property Owners Association Board of Directors Report"

Herbert Lee
6 years ago
Views:

1 Hot Springs Village Property Owners Association Board of Directors Report Memo To: David Twiggs, COO, and HSV Board of Directors From: Lesley Nalley, CFO LAN Date: November 16, 2016 Re: October 2016 Financial Report Attached please find the following financial package documents: Executive Summary Financial Dashboard Property Dashboard Golf Rounds and Revenue Analysis Statement of Financial Position Statement of Revenue and Expenses Statement of Capital Additions

2 Hot Springs Village POA Executive Summary % Operating Expense Budget Spent YTD 82% % Capital Budget Spent YTD 54% % Net Revenue Earned vs. Budgeted YTD 84% Properties/Units in Good Standing 24,223; 70%; 26 > Sept FINANCIAL DASHBOARD Year to date, $3.1mil more in assessments have been received over last year. $2.5mil more has been billed, with the additional improved amounts collected through September being held in escrow. As discussed, certain rolling stock purchases and non-emergency spending is on hold, pending the Supreme Court decision. The restricted escrow account has a current balance of $2.27mil and should not be misinterpreted as available for reserves or other future purposes, unless decisions are made to defer maintenance and rolling stock already approved in the 2016 budget. Total operational revenue is 6.79% higher than Administration, Public Safety, and Food & Beverage are tracking above budget. Administration, Public Safety, Public Utilities, Golf, Recreation and Food & Beverage are tracking ahead of last year. Total operating expense is currently 5.16% higher than 2015, as budgeted. The $22.3mil in year to date operating expense is split as follows: Administration 16.6%, Public Safety 16.6%, Public Works 11.7%, Public Utilities 13.7%, P&I 1.0%, Food & Beverage 1.8%, Golf 29.3%, and Recreation 9.3%. Expenses in all departments besides Public Safety, and Golf are tracking at or below budget. 53% of the Association s year to date revenue came from billed assessments. The service and amenity usage of those assessment dollars is as follows: Administration 34.6%, Public Safety 30.8%, Public Works 7.5%, Planning & Inspection 1.2%, Food & Beverage < 1%, Golf 13.9%, and Recreation 11.4%. PROPERTY DASHBOARD New home permits total 33 year-to-date. This metric and YTD results suggest P&I will miss revenue by approximately $52k. There are 8,739 improved lots and 25,409 unimproved lots in the Village. Additionally, there are 99 time share units and 199 assisted living units. The POA owns 2,619 lots. 99% of improved lots, 67% of unimproved lots not owned by the POA, and 100% of the timeshare and assisted living units are currently in good standing. Currently, there are 7,486 unimproved lots and 118 improved lots with assessment balances greater than 60 days outstanding. 732 more properties are in good standing between December 2015 and this month. In the most recent bi-monthly utility billing, there were 9,091 water meters and 7,981 sanitation customers billed. GOLF ROUNDS & REVENUE ANALYSIS YTD, there have been 169 more playable days (across 8 courses) than the same period of The average consolidated revenue per playable day so far this year is $2,376 vs. $2,531 for the same period last year.

3 Month over month improvements in revenue per round were seen at Cortez, Granada, and Isabelle. Year over year improvements in revenue per round were posted by Coronado, Granada, Isabella, Ponce de Leon. While rounds are up at all courses besides Coronado, Granada, & Ponce, golf is projected to miss revenue budget by $327k+. In November & December of 2015, golf earned $662k mil in revenue. Unless we have unseasonably nice winter weather and an increase in outside/visitor revenue, golf will not earn the $1.36mil in budgeted revenue remaining. However, October was a solid month in golf. Consequently, $91k more in revenue has been earned over 2015 YTD results. STATEMENT OF FINANCIAL POSITION CASH: HSVPOA ended the month with $6.5mil of cash/cash equivalents, a $3.9mil increase from This increase should not be misinterpreted, since $4.6mil is currently restricted. $2.2mil of the restricted balance relates the sewer bond ($1.7mil available for improvements and the rest in required reserves). $2.27mil is held in escrow, pending the Supreme Court decision. Other restricted funds include workers comp and employee insurance. ASSESSMENTS RECEIVABLE: $19.62mil of assessments are currently outstanding, with $17.89mil accrued for bad debt, pending resolution of the NRPI successor entity collection efforts. No bad debt allowance entry was made this month, as collection activities are reducing the allowance needed. 10,223 properties are considered unproductive or not in good standing. LONG TERM DEBT: $4.7mil of long term debt is currently outstanding. The current debt ratios, cash balance, and projected operating results demonstrate HSV s ability to meet the related debt service obligations for No new long term debt should be considered, unless operating results exceed budgeted expectations and such activities are balanced with restoring reserves. SHORT TERM DEBT: As of November 10 th, $775k has been drawn on the line of credit. NET WORTH: HSV s current net worth is $71mil. STATEMENT OF REVENUE AND EXPENSE NET REVENUE: Total net revenue (1) is 84% of budget and $4.56mil higher than Late fees for delinquent assessments are outpacing last year by $47k, while bad debt expense is behind last year from consistent application of delinquency policies. Administration revenue is $68k more than last year and $86k more than budget, as a result of the $107k in auction proceeds, offset by a reduction in interest income and insurance proceeds. EXPENSE: Total operational expense (2) is 82% of budget and $1.15mil more than Spending Public Utilities, Planning & Inspection, and Golf are currently outpacing their YTD revenue earnings to budget. These divisions should adjust spending accordingly. Golf spending is 3% above last year and outpacing budget, due to workers compensation, insurance, token theft, and unexpected course maintenance are the main contributors. While Public Safety appears to be outpacing budget, the LOPFI turn back funds have not yet been yet accrued, which will reduce retirement expense in this division. NET OPERATING RESULTS: Net excess before depreciation and capital was $4.8mil (3), as compared to a $1.4mil for the same period last year, reflecting the new two tier assessment rates, improved collection practices, and revised Public Utilities rate structure. CAPITAL: Capital spending totals $1.45mil of the $4.67mil budgeted for 2016 plus $2.1mil in carried over DeSoto Club spending, for total spending of $3.57mil.

4 Hot Springs Village POA Financial Dashboard At a Glance Comparison of Select Financial Data 2016 YTD 2015 YTD Inc/(Decr) %Change $ 11,918,716 $ 8,800,591 Assessments Received $ 3,118, % $ 14,527,605 $ 12,009,177 Assessments Billed $ 2,518, % $ 13,654,526 $ 12,726,873 Operational Revenue $ 927, % $ 22,313,423 $ 21,161,587 Operating Expenses $ 1,151, % $ 8,658,897 $ 8,434,714 Subsidy Before Capital $ 224, % $ 3,576,313 $ 1,852,350 Capital Spending $ 1,723, % $ 1,682,745 $ 2,108,226 Cash Available for Operations $ (425,481) % $ 1,762,891 $ - Remaining Sewer Bond Funds $ 1,762, % $ 256,496 $ 256,496 Capital Reserves $ % Viability Ratio Debt Service Coverage Ratio % Expense to Total 32.00% 28.00% 29.29% 24.00% 20.00% 16.00% 16.55% 16.64% 13.73% 11.72% 12.00% 8.00% 4.00% 1.04% 1.75% 9.27% 0.00% Budgeted % 2016 YTD Actual 2015 YTD Actual Golf, 18% Recreation, 3% Actual YTD Revenue % to Total Food & Bev, 1% Assessment, 53% P&I, 0% Public Utilities, 14% Public Safety, 3% Public Works, 7% Administration, 1%

5 ,486 8,090 7,604 8,336 Hot Springs Village POA Property Dashboard SALES & CONSTRUCTION ACTIVITY YTD YTD YTD YTD YTD Home Sales New Home Permits Homes Listed PROPERTIES OUTSTANDING MORE THAN 60 DAYS YR END 2015 YTD 2016 UNIMPROVED IMPROVED TOTAL Improved Lots % GOOD STANDING 99% Water Meters Billed: Sanitation Billed: Residential 8,773 Res-House 483 Commercial 209 Res-Curb 7,377 Sprinkler 78 Commercial 121 Construction 31 No Sanitation 1,067 Unimproved Lots - Non POA 67% Total 9,091 Total 9,048 0% 20% 40% 60% 80% 100% 120% Population Estimate: 14,037

6 Hot Springs Village POA Golf Rounds and Revenue Analysis YTD PLAYABLE DAYS & REVENUE/DAY Variance YTD Playable Days 2,180 2, Revenue/Day $ 2,376 $ 2,531 $ (154.35) 2016 GOLF RESULTS 2016 Actual Revenue/Round 2016 Budgeted Revenue/Round 2016 Rounds 2016 Revenue Balboa 24, , Coronado 15, , Cortez 28, , DeSoto 28, , Granada 27, , Isabella 37, , Magellan 26, , Ponce de Leon 25, , ,194 5,137,651 Admin & Miscellaneous 42,626 Total 5,180,277 $ GOLF RESULTS 2015 Rounds 2015 Revenue 2015 Revenue/Round Balboa 23, , Coronado 15, , Cortez 28, , DeSoto 24, , Granada 29, , Isabella 36, , Magellan 24, , Ponce de Leon 26, , ,248 4,930,997 Admin & Miscellaneous 158,087 Total 5,089,084 $ ,000 35,000 30,000 25,000 20,000 15,000 10, Budget vs Actual Revenue/Round Balboa Coronado Cortez DeSoto Granada Isabella Magellan Ponce de Leon 2016 Actual Revenue/Round 2016 Budgeted Revenue/Round 2016 vs 2015 YTD Rounds Comparison Balboa Coronado Cortez DeSoto Granada Isabella Magellan Ponce de Leon 2016 Rounds 2015 Rounds VARIANCE 4,946 $ 91, $ (0.14)

7 HOT SPRINGS VILLAGE POA Comparative Statement of Financial Position ASSETS OPERATING CASH $ 141,745 $ 319,226 RESTRICTED CASH 4,657, ,556 INVESTMENTS 1,541,000 1,789,000 CAPITAL RESERVES 256, ,496 TOTAL CASH AND CASH EQUIVALENTS 6,596,581 2,683,278 MEMBERSHIP ASSESSMENT RECEIVABLE GROSS ASSESSMENTS BILLED 19,620,022 16,350,985 LESS ALLOWANCE FOR DOUBTFUL ACCOUNTS (17,899,874) (15,827,968) NET MEMBERSHIP ASSESSMENT RECEIVABLE 1,720, ,017 OTHER MEMBERSHIP RECEIVABLES 1,415,847 1,352,039 OTHER RECEIVABLES 36,866 5,948 INVENTORIES 402, ,715 PREPAID EXPENSES 316, ,674 REAL ESTATE HELD FOR SALE, NET REALIZABLE VALUE 1,964,250 1,861,500 RECOVERABLE ELECTRIC COSTS 3,977,320 4,000,000 PROPERTY AND EQUIPMENT, Net of Accumulated Depr. 65,523,326 65,146,705 TOTAL ASSETS 81,953,023 76,197,876 LIABILITIES AND MEMBERSHIP EQUITY LIABILITIES ACCOUNTS PAYABLE $ 756,466 $ 1,105,975 ACCRUED EXPENSES 2,940,256 1,200,630 PREPAID ASSESSMENTS AND FEES 1,397,281 1,222,010 SECURITY DEPOSITS & OTHER DEPOSITS 589, ,871 ARVEST LOAN - DESOTO 1,291,970 - LINE OF CREDIT 500,000 - BONDS PAYABLE 3,429,398 1,535,000 TOTAL LIABILITIES 10,905,116 5,757,486 MEMBERSHIP EQUITY UNDESIGNATED 70,791,411 70,183,894 DESIGNATED FOR FUTURE REPAIRS & REPLACEMENT 256, ,496 TOTAL MEMBERSHIP EQUITY 71,047,907 70,440,390 TOTAL LIABILITIES AND MEMBERSHIP EQUITY $ 81,953,023 $ 76,197,876

8 HOT SPRINGS VILLAGE POA Comparative Statements of Revenue and Expenses Months ended October 31, 2016 and October 31, 2015 Actual YTD 2016 Over/(Under) Budget % Budget Budget Oct-16 Oct-15 Prior Year Remaining Earned/Spent Membership Assessment Revenue 17,375,000 14,527,605 12,009,177 2,518,428 2,847,395 84% Assessment Penalties & Other 443, , ,084 47,826 (238,910) 154% Provision for future Bad Debt (2,482,104) (1,721,916) (2,797,905) 1,075,990 (760,188) 69% Net Assessment Revenue 15,335,896 13,487,599 9,845,355 3,642,244 1,848,297 Administration REVENUE 226, , ,275 68,463 (86,478) 138% EXPENSE (4,875,116) (3,693,846) (3,275,914) 417,932 1,181,270 76% Net Administration (4,648,856) (3,381,108) (3,031,639) Public Safety REVENUE 755, , ,560 1,861 53,198 93% EXPENSE (4,239,572) (3,712,403) (3,485,351) 227, ,169 88% Net Public Safety (3,483,952) (3,009,981) (2,784,791) Public Works REVENUE 2,504,023 1,885,631 2,004,971 (119,339) 618,392 75% EXPENSE (3,121,685) (2,615,744) (2,292,669) 323, ,941 84% Net Public Works (617,662) (730,113) (287,699) Public Utilities REVENUE 5,246,493 4,169,556 3,518, ,288 1,076,937 79% EXPENSE (3,654,137) (3,063,859) (3,181,725) (117,866) 590,278 84% Net Public Utilities 1,592,356 1,105, ,543 Planning & Inspection REVENUE 195, , ,264 (3,167) 75,903 61% EXPENSE (314,810) (231,545) (269,914) (38,369) 83,265 74% Net Planning & Inspection (119,810) (112,449) (147,650) Food & Beverage REVENUE 248, , , ,554 (80,574) 132% EXPENSE (543,448) (390,784) (304,607) 86, ,664 72% Net Food & Beverage (294,778) (61,540) (90,918) Golf REVENUE 6,544,247 5,180,277 5,089,084 91,192 1,363,970 79% EXPENSE (7,711,221) (6,536,146) (6,290,083) 246,063 1,175,075 85% Net Golf (1,166,974) (1,355,870) (1,200,999) Recreation REVENUE 1,199, , , , ,138 80% EXPENSE (2,734,587) (2,069,096) (2,061,324) 7, ,491 76% Net Recreation (1,534,887) (1,113,535) (1,227,562) Over/(Under) Prior Year Budget Remaining 16 Budget 16 Actual 15 Actual Gross Revenue $ 34,738,013 $ 28,864,041 $ 25,370,133 Bad Debt Expense (2,482,104) (1,721,916) (2,797,905) Net Revenue (1) 32,255,909 27,142,125 22,572,228 4,569,897 5,113,784 84% Operational Expense (2) (27,194,576) (22,313,423) (21,161,587) 1,151,836 4,881,153 82% Excess (Deficit) Before Depr.(3) $ 5,061,333 $ 4,828,702 $ 1,410,641 Depreciation $ (3,162,687) $ (3,000,249)

9 HOT SPRINGS VILLAGE POA Statement of Capital Additions 2016 Annual Budget Spending Budget Remaining Administration $ 602,767 $ 1,400,000 $ 797,233 Public Safety 209, ,000 8,358 Public Works 101,012 97,500 (3,512) Public Utilities 296,236 2,136,884 1,840,648 Club Services and Facilities 47,871 84,000 36,129 Golf 125, , ,736 Parks and Recreation 77, , ,675 Current Yr Capital Additions $ 1,459,973 $ 4,679,240 $ 3,219,267 DeSoto Project Carryforward from 2015 $ 2,116,340 $ 1,932,673 $ (183,667) Total Year to Date Capital Additions $ 3,576,313 $ 6,611,913 $ 3,035,600

Memo. Hot Springs Village Property Owners Association Board of Directors Report

Memo. Hot Springs Village Property Owners Association Board of Directors Report Hot Springs Village Property Owners Association Board of Directors Report Memo To: Lesley Nalley, CEO From: Liz Mathis, Controller LM Date: April 19, 2017 Re: March 2017 Financial Reports Attached please