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Year-End 2017 Treasurer’s Report, By Tammy Eversole
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Operating Accounts
Operating expenses for 2017 were $256,561.00, $18,839.00 or 6.84% under the 2017 budgeted amount of $275,400.00. With the slight uptick in interest rates and an increase in other income, revenues for 2017 came in over budget with a resulting operating net income of $187,118.00, $20,668.00 or 12.62% over the 2017 budgeted amount of $166,150.00. Operating expenses came in under budget largely due to less than expected utility costs for operating the pools, a reduction in security expenses and less than expected total administrative costs. In addition, north pool furniture repair was well under budget, as the re-strapping of the furniture was considered a reserve expense as it added considerable life to the furniture.
Some major nonrecurring operating expenses that took place in 2017 included cleaning and sealing of the north pool tile, replacing the north pool water heater, repainting the south pool fencing, and replacement of 16 sidewalk sections.
The year-end balances in our operating bank accounts total $194,605.00.
Reserve Accounts
Reserve expenditures for 2017 were $244,250.00. This was well over budget due to the acceleration of paving on Via Sempreverde. The roads committee and board felt it was more cost effective and less disruptive to accelerate the additional paving of Via Sempreverde. Reserve expenses for the year included the paving of Paseo Otono, and approximately 33% of Via Sempreverde. Seal coating was done to all the roads that were not repaved. In addition the north tennis court was resurfaced, the north pool heater was replaced and the north pool patio chars were re-strapped.
Reserve contributions from operating funds for 2017 were $214,000. This exceeded budget by $43,000. Interest earnings of $4919 on reserve fund bank balances provided additional funds.
The reserve study was updated in 2017 to better reflect the actual timing of the repaving of the remaining roads and to adjust the cost estimates to better reflect our cost experience and industry trends. The updated reserve study is available for viewing on the SMVE website under the Finance tab.
The year-end balances in our reserve fund are $426,327.00. This puts us at 43.4% of our fully funded balance per the revised 2018 reserve study.
Budgets
The board has approved the operating budget for 2018. Revenues will be up slightly to $443,045.00 to reflect a slight increase in interest income. Operating expenses are budgeted at $274,150.00 resulting in an operating surplus of $168,895.00. Surplus funds are transferred into our reserve fund accounts.
