As in the past, this report begins with the latest information regarding the past month followed by an update on year to date financial information.

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Marjory Constance Shelton
6 years ago
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1 This April 2009 Variance Report is intended to provide property owners a snapshot of where the Association stands financially four months into the 2009 budget year. So far in 2009, the POA revenue is down ($57,799) as compared to budget. However, expenses are down $889,821 as compared to budget. This is a rather large positive expense variance for this early in the year. There were a number of maintenance projects planned for the early part of A substantial portion of the lower than planned total expense is the result of several maintenance projects that, due to weather and other considerations have not happened. The TVPOA plans to complete many of these projects in the next few months. These and other details contributing to the variances are contained in this report. As in the past, this report begins with the latest information regarding the past month followed by an update on year to date financial information. April 2009 financials Total revenue in April was $1,153,044 versus a budget projection of $1,199,084. This is a budget variance of ($46,040). The major revenue variances included: 1. Water and sewer service for April was lower than budgeted resulting in a revenue shortfall of ($22,167). 2. Interest earned on deposits in reserve accounts is greater than planned by $19, Golf rounds played are 911 lower than budget, creating a shortfall of ($23,325) in revenue. 4. Sale of fuel at the boat docks was ($12,333) lower than projected. Total expenses in the month of April were $1,032,589 versus a budget projection of $1,306,992. This is a positive variance to budget of $274,403. While the majority of the positive expense variance is temporary, resulting from delays in planned maintenance to buildings, equipment and docks, the savings in wages and benefits should carry through to the end of the year. As stated earlier, the maintenance projects are still planned to happen. The major variances in April include: 1. Savings in wages and benefits of $56,000. Leaving open positions unfilled and eliminating promotions and other wage adjustments that had been planned along with cuts in golf pro shop staff hours and golf maintenance hours achieved the savings in this category. This savings should carry through to the end of the year. 2. Maintenance expense on the main sewer lift station is over budget by ($25,000) in April. The failure of both pumps required additional expense of using a service to

2 dispose of the waste. The pumps are being repaired but will be out of service for a period of time and we anticipate additional costs to continue disposal of the waste. 3. Accounting services expense is over budget in April by ($10,800). This should be a temporary variance, a result of timing for payment of the 2008 audit. The final payment was budgeted for May. 4. Painting at the Yacht Club was budgeted for April but occurred in March, creating a temporary overage in March and a savings in April. 5. Temporary savings from delayed maintenance includes: HVAC work at Toqua and Tanasi, $41,000; painting and new carpet for Kahite, $44,000; painting for Chota recreation center, $27,000; combine for a total savings to budget of $112,000. It is assumed that this work will occur later in the year. 6. New pool controls were installed for the Wellness Center pool in April, budgeted for January, creating a negative variance in April of ($20,000). 7. The Kahite First Responder budget has $4,000 for small tools. This money was not spent in April but may be spent later this year, so this will be classified as a temporary savings. 8. Repairs to both main Tellico Village entrance signs were completed in April at a cost of $15,000. The signs were vandalized earlier this year, but the signs ages and deterioration over their lives were more significant than the vandalism. The temporary savings portion of the total April expense variance is approximately $112,000. The temporary overage in expenses for items either planned for earlier or later in the year but incurred in April is approximately ($60,000). There are a number of other areas that had variances to budget in expenses and these combine to create the remainder of the total expense variance. The resulting net income for April is $120,455 versus a budget loss of ($107,908). This is a positive variance as compared to budget of $228, year to date Year to date total revenue is $4,060,643 versus a budget of $4,118,442. This creates a shortfall as compared to budget of ($57,799). The major variances are listed below. Revenue is lower than planned in: 1. Golf, ($84,374), total rounds played are (3,158) lower than projected. 2. Water & sewer service, ($54,152), consumption has been lower than planned. 3. Gas sales for boats at the docks, ($9,862). 4. Lot transfer fee, ($10,000), lot turnover is lower than projected.

3 Revenue is higher than planned in: 1. Recreation, $7,650, total memberships are 86 greater than planned. 2. Sewer tank installation, $34,150, completing a higher number of tank installs than anticipated. 3. Other general revenue, $20,000, Charter Cable franchise fee, timing. 4. Interest earned on reserve deposits, $12,430. There are smaller variances, some positive and some negative, in other year to date revenues that make up the rest of the variance. Year to date total expenses are $3,842,807 versus a budget of $4,732,628. This creates a positive variance as compared to budget of $889,821. As stated earlier, a significant portion of the expense variance is due to planned maintenance projects that have not occurred to date. These projects total approximately $310,000 of the total variance. Many of these projects are expected to be completed at some time this year. The list of temporary expense variances includes: 1. Maintenance and repairs to existing docks, $50, There is a temporary savings associated with planned repairs to sewer pump substations and replacement of older water meters, $40,000. However, as noted earlier, both of the main lift station pumps are under repair and the repair cost is expected between ($20,000) and ($30,000). The cost in April of the disposal of the waste was ($25,000). Therefore, we anticipate no savings in this area. 3. Public Works has a contingency built into the budget of $50,000 through April. This contingency has not been used as of the end of April. 4. Sequoyah and Toqua sewer lift station fencing, $20, Toqua Clubhouse carpet replacement, $20, Repairs to the walls of the Chota pool, $10, HVAC replacement for Toqua and Tanasi Clubhouses, $41, Painting and carpet for the Kahite Clubhouse, $44, Painting the interior of the Chota Recreation Center, $27, Equipment and other repair projects, approximately, $50,000.

4 There are a number of smaller variances that are temporary in nature. Other expense savings include: 1. Savings in wages, benefits and contract labor, year to date, total $174,000 and should carry through to the end of the year. 2. Savings in training and other personnel expenses, $13, The replacement of golf cart batteries at Tanasi, budgeted to cost $50,000, was completed in April. Jim West was successful in having these batteries replaced at zero cost to the TVPOA. This creates a firm saving of $50,000 from the golf department. 4. Additional savings in the golf area are in scorecard purchases and practice range supplies, approx. $24,000. As these will most likely be needed soon, this should be considered a temporary savings. 5. Fuel and diesel costs are $36,000 lower than planned and we should carry this savings to year end. 6. A temporary overage related to the 2008 audit should be offset in May, ($10,000). 7. Savings from lower use of credit cards by members purchasing annual amenity packages (golf and fitness) total $25,000 and this should carry through to the end of the year. 8. Savings in the general property and liability insurance is $17,000 and will carry to the end of the year. 9. Savings in interest expense related to the $2 million dollar debt, $24, Total operating supplies for the POA are $98,000 lower than planned. This includes small tools, facility supplies and maintenance supplies of $59,000. At this time, it is difficult to quantify the amount of firm savings expected in this area. 11. Savings related to the contract with Patterson Restaurant Services to provide food service at the Yacht Club are $34,000. This is a temporary savings, as the contract provides for Patterson to receive this money. However, we are attempting to match the payments to Patterson in a manner that provides the support needed when it is needed. 12. Management is evaluating all areas of the budget for opportunities in expense reductions and plans to scale back future purchases in areas that can be reduced. The recent freeze in wages will be a large savings versus the budget in Total net income through the end of April is $217,836 versus a budget of a net loss of ($614,186). This is a positive variance of $832,021.

5 The total cash balance at the end of March was $4,767,028. This is higher than projected in the budget by $722,834. Some of the reasons for the positive cash variance are: 1. Delayed maintenance projects year to date $310, Net increase in suspended members, delinquent assessments ($213,000). 3. Prepaid assessments from property owners $362, Lower sales of annual golf packages than planned ($212,000). 5. Higher membership sales in fitness $25, Savings in wages, benefits & contract labor, $174, Capital projects budgeted but not paid and or requested $250,000. Results for the Four Months Ended April 2009 Fav (Unfav) Actual Budget Variance Revenue 4,060,643 4,118,442 (57,799) Cost of Sales 264, ,431 10,816 Gross Profit 3,796,028 3,843,011 (46,983) Operating Expenses 3,182,841 4,064, ,320 Depreciation 395, ,035 (2,316) Net Income (Loss) 217,836 (614,185) 832,021 A copy of the April Balance Sheet and Income Statement is available to all property owners upon request at the Tellico Village POA main office.

December 2015 December 2015 YTD YTD YTD 12 Month PREVIOUS YR. DESCRIPTION ACTUAL BUDGET Actual Budget Variance Total Budget ACTUAL

December 2015 December 2015 YTD YTD YTD 12 Month PREVIOUS YR. DESCRIPTION ACTUAL BUDGET Actual Budget Variance Total Budget ACTUAL Bella Vista Village POA Consolidated Assessments 640,497 719,263 8,333,689 8,631,200 (297,511) 8,631,200 8,637,206 City of Bella Vista 9,387 9,629 112,711 112,732 (21) 112,732 112,176 Food and Beverage