OUTDOOR RESORTS/PALM SPRINGS OWNERS ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2020 AND 2019
NOTE 1: OWNERS' ASSESSMENTS
Monthly assessments to owners were $394 for the year ended June 30 , 2020 and $383 for the year ended June 30, 2019. Of those amounts, $89 in 2020 and 2019 were designated to the replacement fund , and $6 in 2020 and $3 in 2019 were designated to the capital improvement fund . The annual budget and owner's assessments are determined by the Board of Directors. The Association retains excess operating funds at the end of the operating year, if any, for use in future operating periods.
NOTE 2: COMMON AREA PROPERTY
On June 30 , 2020 and 2019 the Association held title to common real property consisting of 137 acres of land , roads, clubhouses, golf course, tennis courts, maintenance bu ilding , pools, spas, and lakes. The Association is responsib le for preserving and maintaining the properties and may not dispose of them. In conformity with industry practice , the Association's common property is not recognized as assets.
NOTE 3: PROPERTY AND EQUIPMENT
Property and equipment consist of the following at June 30 , 2020 and 2019:
2020
2019
La Palma equipment and fixtures El Saguaro equipment and fixtures Pool , tennis and golf course equipment
$ 190,884
$ 190,884
154,920 131 ,690 140,372 97,766 729,613 464 858
156,389 131 ,690 140,372 97,766 565,080 480 757
Cafe improvements Security improvements Vehicles and golf carts
Other equipment and fixtures
1,910,103 (1 ,562,868)
1,762 ,938 (1 ,525 ,598)
Less: Accumulated depreciation
34Z235
23Z 340
$
$
NOTE 4: FUTURE MAJOR REPAIRS AND REPLACEMENTS
The Association's governing documents require that funds be accumulated for future major repairs and replacements . Accumulated funds are held in separate savings accounts and are generally not available for expenditures for norma l operations. The Board of Directors engaged an outside consultant to conduct a study in May 2020 to estimate the remain ing useful lives and the rep lacement costs of the components of common property . The study is based on current estimated rep lacement costs . Funding requirements consider an annual inflation rate of 3.0 percent and interest of 1.0 percent, before taxes , on amounts funded for future major repairs and replacements . The tab le included on page 12 in the unaudited supplementary information on future major repairs and rep lacements is based on the study .
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