Assessments and revenue remain up, chief executive officer Lesley Nalley told the Hot Springs Village Property Owners’ Association board of directors last Wednesday.
Through June 30, $151,000 more in assessments has been received over last year. Year-to-date total operational revenue is 13.97 percent higher than 2017.
Administration, sales, public safety, public utilities, lakes, planning and inspection, food and beverage and golf all show an increase in revenue from the prior year.
Total operating expense on June 30 was 10.37 percent higher than 2017, as budgeted, Nalley said.
Expenses in all departments, except golf, are at or below budget year-to- date. “Golf is just slightly over budget year-to-date, related to season personnel expenses,” she said. Half of the POA’s year-to-date revenue came from billed assessments.
The POA’s current net worth is $72.2 million, an increase of $181,000 from the prior year.
She said higher fees for some amenities follow the POA’s goal of reducing subsidies.
The POA ended June with $8.7 million of cash/cash equivalents, a $1.05 million increase from 2017. “This increase is attributed to the remaining deferred capital from 2017 not yet spent and increases to reserves; $1.2 million is currently restricted; $845,000 of the restricted balance relates to the sewer bond; $306,000 is available for improvements and the rest in required reserves. Other restricted funds include workers comp and employee insurance,” Nalley told the board.
On assessments, $18.1 million of assessments were outstanding on June 30, with $15.3 million accrued for bad debt, pending resolution of the National Recreational Properties Inc.-successor-entity collection efforts.
Some 10,900 properties are considered unproductive or not in good standing; $1.6 million of other membership receivables were outstanding.
Nalley noted that utilities are billed bi-monthly, so that on June 30, it appeared that the revenue/expense ratio was higher for expenses. “This fluctuates from month to month due to the bi-monthly utility billing. As of the end of June, five months of utilities have been billed,” she said.
Approved new home permits totaled 36 on June 30, versus 18 at the point in 2017. There are 9,174 active water meters and 8,043 sanitation customers. There are 8,811 improved lots, representing 28 more than at December 2017, and 25,345 unimproved lots in the Village. There are 99 timeshare units and 199 assisted-living units. The POA owns 3,195 lots; 99 percent of improved lots, 66 percent of unimproved lots not owned by the POA, and all timeshare and assisted-living units were in good standing.
“Currently, there are 7,615 unimproved lots and 90 improved lots with assessment balances greater than 60 days outstanding. Six fewer properties are considered delinquent between December 2017 and this month,” she said.
The POA hosted 13 Discovery packages since March.
For golf, there were 78 less playable days (across 8 courses) than 2017. The average consolidated revenue per playable day is $2,356, vs. $2,155 for the same period last year, an increase of $200.89 more revenue per playable day year-to-date.
Year over year improvements in revenue per round were posted by all courses except Granada, and total revenue per round is up $5.18 per round. Overall rounds were down 5,359 because of wet weather earlier in the year.
Now that the peak golfing season has arrived, Nalley foresees much improvement. “This variance from prior year has improved by over 3,000 rounds since February when rounds were down close to 8,500 rounds from the prior year,” she said.
Public works revenue is down because sales of vehicle decals were postponed this year, pending completion of the gates project.
Recreation revenue is also down. She cited delay of pickleball annual memberships.
“Additionally, timing changes for the receipt of Silver & Fit and Silver Sneakers daily fitness fees is causing a $30,000 discrepancy from the prior year,” she said.
Golf revenue is up $76,000 from the prior year. The remaining $365,000 is related to the golf cart trade- in and leasing program, which came later in 2017.
The board will meet at 9 a.m. Wednesday, Aug. 15 in the Ouachita Activities Building, Ponce de Leon Center.