Treasurer’s Review of August 2024 financial report reflects the following as of 8/31/24:
- Cash Operating: $62,696
- Cash Reserves: $224,515
- Operating Deficit for 2024: $127,827 (anticipated subsidy from Toll Brothers)
- # Closed Homes: 231 (35% of 661 planned)
- Transition to Homeowner Board After 496 closings (75%)
- 2024 New Home Closings: 47
A calculation was done by myself and Denise Hogenes from Toll Brothers, and an invoice has been submitted to Toll Brothers for deficit funding thru August 31, which would provide the funding for the New Member Fee refunds incorrectly charged at initial new home closings. We anticipate those refunds in November, but until we get a response from Toll Brothers, that cannot be confirmed.
The funding proposal called for all available existing Operating cash to be utilized to help pay the refunds, with the exception of $50,000 left for working capital. Every month, the deficit will be invoiced and paid by Toll to maintain that working capital amount. Since Toll is funding deficits, cash built up and the working capital in our Operating account doesn’t belong to the Association, which is the reason why it is being used to partially cover deficits. The funds currently in Reserves will remain and pending budget approval, contributions to reserves will continue in 2025 as per the 2025 Reserve Study.
Denise and I met with the Reserve Specialist who prepared the Reserve Study and have asked him for an alternate method of funding for the Board to consider. We are awaiting that update, which will then need to be incorporated into the Build Out Budget (BOB). I met with Cohere’s VP who has been preparing the BOB and went thru the first draft. In addition to the Reserves needing to be incorporated, I asked for Cohere to obtain an insurance quote to use in the BOB, rather than the allocation provided by Toll Brothers, which is what will be covered until the Board of Directors is majority Homeowners.
In terms of the 2nd homeowner to be elected to the Board, progress has been made but we’re not done yet. Both Toll Brothers and the homeowners, represented by me, are in favor of this, but it requires an amendment to the Bylaws. We’re expecting to have two homeowners elected to the Board at the upcoming annual meeting, with the Board voting to amend the Bylaws in advance and homeowners ratifying through the election of 2 Homeowner Board members. To accommodate the timing required for Bylaw amendment, an extension of time to apply for the position will be given, which will then delay the Meet the Candidates night, and the Annual Meeting date. The new schedule will be included in the newsletter.
– Bill Cirkus