Finance

April 2010 Money Matters by Lou van Wunnik, Treasurer

Preston Highlands' HOA's peak income period is December and January with annual dues the primary source of HOA funding. For month-end February 2010, total assets were nearly $185,000 due largely to the bank balances which have the gross amount of dues collected. These balances will allow us to fund recurring monthly expenses for 2010 and contribute to the reserve fund for special projects and neighborhood improvements.the neighborhood.

Income for the February year to date was well above budget and continues to show our strengthening reserve for projects and maintenance in the coming months. Homeowners who have yet to pay their 2010 dues are reminded January 31 was the deadline and fees and late interest accrues until full payment is made. If you have not paid your 2010 dues, please contact Cyndy Long, property manager at SBB Management, at c.long@sbbmanagement.com or 972-960-2800, ext. 358.

February 2010 Money Matters by Lou van Wunnik, Treasurer

At the Annual Meeting, the Preston Highlands Homeowners Association reported total assets at year-end 2009 of $151,556 and total cash and investments (includes bank balances) of $131,937, as well as net income for the year of $17,843.These balances include reserve accounts for future expenses and 2010 association dues paid by homeowners in December. The 2010 budget presented at the meeting was approved. To view it, click here.

October 2009 Money Matters by Lou van Wunnik, Treasurer

The association’s income and expenses are better than budgeted for August and 2009 year to date. This allows some flexibility to budget for improvements and other unexpected expenses.

We still have delinquent accounts with minor past due balances resulting from late payment of 2009 dues. Homeowners who paid 2009 dues after Jan. 1, 2009 should contact Cyndy Long, property manager, with SBB management company at to determine their outstanding past due balance.

The Board is still awaiting response from the IRS in our campaign to become exempt from State sales taxes.

August 2009 Money Matters by Lou van Wunnik, Treasurer

It was reported at the general meeting of homeowners on July 14 that all financial indications are in a positive status, including net income vs. budget for the year to date period ending in June. June year-to-date is above budget on net income and barring any unexpected expense should carry us well into the second half of the year. Our cash operating bank balance totaled $88,000 and the legal reserve account had $ 51,000. We are in a good position for the remainder of the year to take of any normal operating expenses, and also will have good balances to provide for any special projects or unexpected maintenance costs in the second half of 2009.

June 2009 Money Matters by Lou van Wunnik, Treasurer

Annual homeowner dues have been collected at the rate nearing 85 percent through April 2009. This is encouraging but the goal is to raise closer to 90 percent overall, as in prior years, before the year is out. Please contact Select Management if you have not paid your 2009 dues. Homeowners also are reminded that if dues were paid for 2009 after Jan. 1, 2009, there are additional late fees that are owed. If you paid your dues after this date, please contact the Select Management also. You can also email Lou van Wunnik at treasurer@phhaonline.org if you paid 2009 after Jan. 1, 2009 to inquire about your balance. On the financial side, Preston Highlands HOA is well within budget through April 2009, but, as always, we anticipate required outlays as we go forward.

April 2009 Money Matters by Lou van Wunnik, Treasurer

As of February 28, dues collections for 2009 better than expected, and overall, we were positive to the approved budget by approximately $4,300. If you have not paid your 2009 dues of $175, please contact Kitty Elder, at Select Management (kelder@selectmgco.com or 972.755.1063) immediately to get the matter cleared up and avoid further penalties. Currently, there is about $92,000 in unrestricted funds, but there will be several projects and maintenance requirements to deal with in the coming months.

For your information, here is a recap of income and expenditures for the year-ending December 31, 2008.

INCOME

Regular Assessment $92,250 95.44%

Phase IV Asmt Adjustment -$4,050 -4.19%

Miscellaneous Income $183 8.75%

Subtotal Income $96,653 100.00%

EXPENSES

ADMINISTRATIVE EXPENSES $12,041 13.17%

PROFESSIONAL SERVICES $40,456 44.25%

TAXES AND INSURANCE $6,582 7.20%

UTILITIES $8,912 9.75%

CONTRACTS $9,989 21.86%

REPAIRS & MAINTENANCE $2,756 3.01%

RESERVE CONTRIBUTIONS $696 0.76%
TOTAL EXPENSES $91,436 100.00%

December 2008 Money Matters by Lou van Wunnik, Treasurer

The October financial reports showed expenditures are under projections for the year thus far and income exceeds the projected budget through October. Our year-to-date net income totals to $ 4,787, which is also $ 2,453 over budget. Barring any unforeseen repairs/maintenance this will result in a positive 2008 year-end results versus the budget. But we must caution about these expectations since any emergency outlay is possible.

The Association applied to the Secretary of State for a sales tax exemption, but we have been advised such exemption only is granted with an IRS letter of section 501 (C) designation for the association. Such application to the IRS is likely to take 100 days. We have started the application process.

Financial accomplishments this year, in addition to the solid budget results so far, include a full audit of our books by an independent accounting firm, and lower contract costs for association property management, as well as general landscaping maintenance. Along with contract negotiation process, we also reviewed and considered alternative service providers to compare relative costs. The Association will continue to review all providers of services as an ongoing process. A full “Reserve Study” was also completed and the association will be implementing the study’s recommendations before year-end and through next year’s budget process.

The Association has also invested in a higher earning interest account for the legal reserve fund to earn more interest. The account will be earning at a rate yielding 2.22% on the balance of $ 50,478.28 as of October 31.

There are still a number of delinquent accounts that have yet to bring their dues, fines, and penalties current. Please note: Preston Highlands strictly follows collections policy and, through its legal counsel, will pursue liens and other legal avenues as needed. If you have an unpaid balance due to the Association, please call Kitty Elder, Property Manager, at 972.755.1063 to clear this matter right away.

Savings Realized From New Landscaping Contract
This summer, the Board reviewed its contract with PLM for landscaping and maintenance services. After collecting four bids, three from other contractors and one from PLM, the Board voted to renew Preston Highlands’ contract with PLM. Before finalizing the contract, Board Members met with the owner of PLM to fine tune a new contract. With his advice, some programs were modified to mirror standard commercial property models without putting any area of investment at risk. This renegotiation yielded an annual savings of $4,600 for Preston Highlands.

October 2008 Money Matters by Lou van Wunnik, Treasurer

The August financial reports indicated results showed expenditures are under projections for the year so far and income was less than projected. It is expected that the Preston Highlands Homeowners Association budget will be at or near the budgeted targets by the end of 2008.

There are still a number of delinquent accounts that have yet to bring dues, fines, and penalties current. Please note: Preston Highlands strictly follows collections policy and, through its legal counsel, will pursue liens and possible foreclosures. To avoid this situation, if you have an unpaid balance due to the Association, please contact Kitty Elder at Select Management at kelder@selectmgco.com or 972.755.1063 to clear this matter up right away

The Board has approved shifting funds in the legal/restricted reserve account to a new savings account in the near future to earn more interest.

June 2008 Money Matters by Lou van Wunnik, Treasurer
The recent financial results for April were distributed by Select. The Board will review the results at their next scheduled meeting and summarize results for you in the next newsletter. PLEASE NOTE: The aged past due balances are still larger than desirable. If you owe the Association money due to compliance fines or delinquent dues, please contact Select Management at 972.755.1063 to get this matter resolved quickly. The Association aggressively pursues these accounts through our management company and law firm and something that starts as a small amount can add up very quickly due to the cost of notifications and legal fees for which you are responsible.

April 2008 Money Matters by Lou van Wunnik, Treasurer

The Board presented the proposed 2008 budget to homeowners for their concurrence at the Quarterly Homeowners meeting on Tuesday, April 8. In February, the budget ran over due to some unanticipated expenses and late 2007 expenses paid in 2008.

PLEASE NOTE: The aged past due balances are still larger than desirable. If you owe the Association money due to compliance fines or delinquent dues, please contact Select Management at 972.755.1063 to get this matter resolved quickly. The Association aggressively pursues these accounts through our management company and law firm and something that starts as a small amount can add up very quickly due to the cost of notifications and legal fees for which you are responsible.

The Board also approved the engagement of accountants to perform the 2007 audit and prepare 2007 tax returns.

February 2008 Money Matters by Lou van Wunnik, Treasurer
As of December 2007, PHHA has $146,380 in total assets. For year-end 2007, a loss of $18,500 was projected, but as of December, it was reported at $10,372 … about $8,000 less than projections. This loss was due to amounts for improvements previously authorized. The 2008 budget is being finalized, with the Board’s expectations that the 2008 budget will be in balance or better. There are 615 homes in PHHA, with 550 (89.43%) of accounts current. Sixty-five (10.57%) are delinquent and 32 (5.20%) are under current legal process to collect monies owed in back dues, fines and penalties. These figures always seem to increase in January, because homeowners have not paid their dues on time. Make sure to check your records and ensure you are up to date for 2008 dues of $150, which were due to Select Management by January 31, 2008.

Statement of Receipts and Disbursements

Coming Soon.

Statement of Financial Condition

Projected Reserve Fund Requirements

What is a reserve fund? Suppose that you expected to live in your home for 25 years. During that time you would expect to replace most, if not all of the following: roof, fence, HVAC system, carpeting, and appliances as well as foundation repair and exterior and interior painting. You could handle this understanding the potential costs and setting aside money each year to cover the inevitable.

A reserve study prepares Preston Highlands Homeowners Association in the same way. The community has been around for more than 25 years and we expect it to continue indefinitely. Our assets are (1) the walls along Preston and Hillcrest, (2) the sprinkler systems and (3) landscaping. The total estimated replacement cost for these assets are over $530,000. This is about six years’ collection of dues. The two walls make up $473,000 or 89% of the total asset value. Replacing them would be, at best, difficult. We believe it to be prudent to prepare for these eventualities.

The annual reserve requirement is $9,130 to be escalated by 3% compounded to allow for inflation. The cost estimates were based on historical costs and published authorities. The Board will execute actions against these requirements going forward into 2009.

Operating Budget

Click here to view the Preston Highlands 2009 operating budget.

To view Preston Highlands operating budget for 2008, please click here.