As we approach another season at SGV, we are reminded that the Seaglass Village has made great strides as a community to strengthen our financial position and operations. We continue to take the steps necessary to meet these and other important goals this season.
It has been a busy winter here in Wells and while it has been awhile since our last update, Donnie and the BOD have continued to work behind the scenes to prepare for what we know will be another great season at SGV.
Here at SGV, we wanted to share with you the following updates:
With the help of our association attorney we executed the contract with Great North to provide management services for the next 2-years. The contract started March 1st and Great North has already begun helping us on vendor selection, setting financial controls, and general management issues.
Our Great North community liaison name is Kara Ann Gilroy. Donnie and Larry met her last week to discuss crucial transitional issues and shared goals for 2018. Kara will join the board at our first open meeting in May to introduce herself and answer any questions you may have.
The final contract price was $22.50/month/cottage for the next 12 months. The board needed to increase the original contract price by $2.50/month/cottage to cover the additional costs reporting financials transactions related to the Sandbar and Rental Program. The good news is that we are still under budget and this was a necessary and positive step to assist us in executing better financial controls on two very important profit centers here at SGV.
Again we are excited to meet our goals and deliver on the promises we made at the end of last season:
Improve the management structure for long-term sustainability and efficiency.
Create stability and improve communications across all functional areas of the association.
Maintain high retention of qualified staff and improve our staff utilization across all functional areas, while maintaining efficient and effective community harmony.
Improve our financial system and structure to minimize outside risks and profit leaks.
We continue to ask for your patience as we move through this transition.
You will be receiving a welcome letter from Great North very soon.
We had some water damage this year in the main conference room at the Clubhouse. The stage, stage walls, and ceiling sustained minor damage and the water repair has been completed. One of the sprinkler system heads froze and exploded. We will need to make improvements to the stage floor once we are open in May. We have contacted the vendors who work with our Fire Suppression System to research the cause and make the necessary improvements.
We have executed a five year bulk service agreement with Spectrum Cable for cable and internet. Some of the highlights:
$16.00 per unit / month excluding taxes and fees (this cost is very close to our current rate and at par with our current budget for 2018)
Speeds will increase to 60Mb x 5 Mb (almost double, but may vary)
Spectrum will provide one Set-top box / outlet and one Modem for each cottage unit. All additional channels and outlets will be the responsibility of the cottage unit owner.
The Clubhouse and Rental office are under a separate agreement.
There will be no seasonal turn-on/off options for the association as a condition of our lock-in rate.
Enclosed are the year-end financials along with January, 2018.
We are happy to report that SGV is in strong financial shape. We again came in under budget for 2017, while continuing to strengthen our reserve fund. We are well positioned to meet the challenges of future expenditures. Some of the highlights from our Treasurer and Finance Chair include:
Budget to Actual – As of 12/31/2017, we ended the year $8,930.72 in the black. (after subtracting out the developer debt forgiveness)
Sandbar Revenue: We had budgeted to profit $22,986.30. We were in the black but significantly lower with a profit of $16,307.83.
Rental: Our rental program exceeded expectations with a Net in the black of $64,872.66 compared to the budgeted net profit of $45,702.66.
Entertainment: The committee entertained us throughout the season while staying within budget. Expected a cost of -$1774.99 and came in lower with a -$17236.61.
Developer: The debt forgiveness from the developer was $564,685.72. This is a savings of $2,500 per unit.
Repairs: The Board made necessary repairs of the HOA assets costing $33,200.
We ended the year with a Capital Reserve of $300,697 which meets our budgeted forecast in our current Capital Reserve study.
Donnie has accepted the position of Association Manager effective March 1st. Donnie has done a fantastic job helping us thru the transition with Great North, executing the winter rental program, and keeping SGV safe and secure during the winter months.
Donnie has placed ads for seasonal help and is currently reviewing applications for the Sandbar Manager, Rental Manager, Maintenance, Security, and an additional bartender as well front desk personnel. Donnie will send an update to the community on his staff and their roles moving forward prior our opening in May.
We continue to thank our committees for all their unrelenting hard work even through the winter months. A special shout out to EMOC who are constantly refining our operations and providing critical data to the association on all types of infrastructure improvements.
In summary, we have had a very busy year. We look forward to the challenges facing SGV in the New Year with renewed confidence. Thank you for your continued support of SGV!
SGV Board of Directors,