We forwarded along a copy of the financials to one of our favorite “past” directors to get his take on the current state of the financials here at Treasure Lake. As always, there was some interesting commentary and we should all take notice of and question the board with some of his observations.
Wayne: First off, it’s really nice to see that the new board has the common sense to show prior year as well. Of course, if it wasn’t for a few of the past board members screwing around with the old cost centers in order to give an appearance of better performance, that shouldn’t have been an issue last year. But hey, thank Flanders for that.
I didn’t spend a lot of time on the detail financial report, so I stuck to those items that have always been problematic in the past. A couple of things that jump out on the “Month and Year-To-Date Prior Year Comparison Report”:
One of the biggest drains on the community is, and continues to be the LVL as a whole. Sadly, they have been trying to separate it into little pieces to try and portray a more favorable picture of it. It’s exactly like taking a big pill and breaking it into smaller pieces so it’s easier to swallow. It may be easier to swallow, but it still tastes like crap.
Looking at it as a whole, which it really needs to be, it has lost $119,660.35 of the property owner’s money through August. For anyone, board member or otherwise, that wants to argue that the restaurant operation/s and community should be separated consider this:
- The LVL restaurant pays ZERO utilities. So does it not need water/sewer, electricity, natural gas? That’s unheard of with a restaurant.
- The LVL restaurant pays ZERO rent. If it truly is a cost center, why aren’t costs properly allocated?
- The Community Center has had ZERO landscaping costs? So no one has mowed or done any landscaping around this area? That’s really hard to believe.
- Building maintenance has only amounted to $754 for the 4-month period? Seems a little light when one considers all the issues have been discussed with upkeep on the building.
One thing that really jumped out at me is the year-over-year performance for the LVL Restaurant, and this should really concern everyone. For the month of the July, the improvement over last year was only $473 in revenue. The year to date performance over the prior year is only $3,781. After a year of the restaurant/s being under the professional group Skyline Ventures, they were only able to increase income by less than $4,000? Someone please explain what exactly is the value that Skyline Ventures is bringing to the table? The revenue increased less than $4,000 but the expenses went up by $50,000 for the same period. Of course, Skyline Ventures still gets their cut of the operation. Also keep in mind, that this time period included what is considered to be the “busy” season. It sure doesn’t seem like the LVL got any busier.
Golf earnings are down YTD which doesn’t bode well for the remainder of the year. Until one of the courses is closed, this will continue to be a drain on the association. My opinion, but one also validated by Chris Corcoran’s own numbers.
Just my opinion, but there is still quite a bit of money being left on the table that could be used for other initiatives. The board is just going to have to saddle up and finally make some hard decisions. I would think that the way this last election turned out, all sorts of things should be getting turned upside down by the board.
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Thanks again Wayne for your assistance.