Hot Springs Village POA Controller Frank Hubbard shared a positive report at the November 16, 2022, Board Meeting.
We had a pretty good month financially. The statement shows we made $1.3 M. October showed the largest monthly income so far this year. $1.4 million was predicted. Apparently, October is a strong financial month. There were no unusual expenses and it was a good month for golf, and public utility revenue. One month is not a trend. But let’s enjoy it.– Frank Hubbard, HSVPOA Controller
Hubbard continued, “we reduced our cash position this month. We are still doing well. We have $9 M more in terms of short-term investments than we have liabilities. If you listen to Ken [Unger, Director of Public Services], we are doing many expensive things…We paid for a lot of infrastructures. Our cash position is down nearly $800,000. Again, month-to-month is not a trend.”
We are spending money in the right places, on culverts and bunkers.
“Last month, we earned a $10,000 bonus from E-trade and $50,000 in interest income. Our interest-bearing debt continues to go down slowly but surely as we pay the principal each month. Our interest income last month was enough to make all the payments on our outstanding equipment loans with Regions Bank. They are now down to $1.6M and change,” said Hubbard.
Overall our interest-bearing debt is below $3 M and falling, and we should be able to increase our interest-earning income a bit more.
Sweep accounts are overnight investments that the bank manages for us. In the morning, the money is once again available. While this money is liquid, it also doesn’t yield as much as T bills.
Hubbard said we are pulling in an assessment accrual of $1.7 M per month, but as you know, we have many non-performing assets in there, so what we can realize is a little over $1.4 M each month.
Buy-in fees continue to be strong. We also have revenue from lots sold, transfer fees, and debt collection on delinquent accounts.
About 100 improved lots are delinquent on assessments.
We made a profit on golf this month. “This is the best number in the brief period I have been looking at rounds,” stated Hubbard. The number of rounds played was slightly less than last year, possibly due to two fewer playable days.
We are subsidizing the recreational facilities, which is expected. Hubbard said, “it would be nice to reduce the subsidy amount, but let’s be realistic and just try to minimize it.”
In regards to infrastructure, Hubbard exclaimed, “we have been busy! A lot of good stuff has been happening,” The total spent or contractually committed to is nearly $9 M. $9.466 M was budgeted.
“We will probably spend everything we budgeted, give or take, but not exactly where it was budgeted,” shared Hubbard.
Report by Cheryl Dowden