DESERT HORIZONS OWNERS ASSOCIATION BOARD OF DIRECTORS 2025 ANNUAL MEETING TABLE OF CONTENTS
Annual Meeting Agenda .................................................................................................................................. 3 Finance Committee Report .............................................................................................................................. 5 Architectural Committee Report ..................................................................................................................... 6 Landscape Committee Report ......................................................................................................................... 7 Maintenance Committee Report ..................................................................................................................... 8 Golf Committee Report .................................................................................................................................... 9 Fitness, Wellness, and Courts Committee Report .................................................................................. 10-11 Emergency Preparedness Committee Report ............................................................................................... 12 Club/Social Advisory Group Update ........................................................................................................ 13-14 Strategy Committee Report ........................................................................................................................... 15 Audited Financial Statement – September 30, 2024 .............................................................................. 17-19 Operational Budget – Fiscal Year 2025 .......................................................................................................... 20 Financial Statement – January 31, 2025 .................................................................................................. 21-24 Financial Update ...................................................................................................................................... 25-28 Desert Horizons Comparative Club Data ................................................................................................. 29-31 2024 Annual Meeting Minutes ................................................................................................................ 33-37
DESERT HORIZONS OWNERS ASSOCIATION ANNUAL MEETING Sunday, March 9 th , 2025 at 3:00pm Pacific ***AGENDA***
I.
CALL TO ORDER
3:00 pm
II.
PROOF OF NOTICE OF ANNUAL MEETING
III.
PROOF OF QUORUM
(3:00pm Pacific) – Time Certain
IV.
VOTING
A. Introduce Inspectors of Election B. Begin Tabulation
V.
PRESIDENT’S WELCOME AND INTRODUCTIONS (3:00pm Pacific) – Time Certain
VI.
PRESIDENT/ INTERIM GENERAL MANAGER, COMMITTEE, AND ADVISORY GROUP REPORTS A. Financial B. Architectural C. Landscape D. Maintenance E. Golf F. Courts/Fitness G. Emergency Preparedness H. Club/Social I. Strategic Planning
VII.
FINANCIAL UPDATE
VIII.
REAL ESTATE PRESENTATION – Rob Zwemmer
IX.
OPEN FORUM
X.
ANNOUNCEMENT OF ELECTION RESULTS A. Board Members B. 2024 Annual Meeting Minutes Approval C. IRS Revenue Ruling 70-604 Approval
XI.
ADJOURN
5:30 PM*
*Adjournment will occur following the agenda items by 5:30 PM or sooner if agenda is complete. Page 3
COMMITTEE REPORTS
DESERT HORIZONS OWNERS ASSOCIATION BOARD OF DIRECTORS COMMITTEE REPORT ANNUAL MEETING 2025
Committee Name: Finance Committee Committee Members: Dave Taylor, Dale Hurd, Don Costa, Bob Lemon Submitted by: Tom Robinson (Chair)
I would like to thank the members of the Finance Committee (FC) for their insight, financial acumen and support in providing oversight to the financial affairs of Desert Horizons Owners Association (DHOA). Thank you to Dave Taylor, Dale Hurd, Don Costa and Bob Lemon. In addition thanks to Al Castro, John Sotomonte, Crysten Hanson and their finance team for providing timely accurate monthly financial information to the FC, the Board and to Homeowners. Draft preliminary monthly financials are prepared usually two weeks after month end. These draft preliminary monthly financials for the Year Ended September 30, 2024 were reviewed and approved by the FC and the Board. The Audited September 30, 2024 Year End Financial Statements were completed in December 2024 and were reviewed and approved by the FC and the Board. All monthly and Year End Audited Financial Statements are posted on the Homeowners website under My Home, Financial Documents. Management started the process of preparing operating and capital budgets in May 2024 for fiscal year ending September 30, 2025. This is an iterative process where draft budgets are provided by Management to the FC who performed detailed reviews before recommending that a budget be approved by the Board. After numerous discussions and further budget iterations the Board approved the final Fiscal 2025 Operating and Capital Budgets in August 2024. The Board engaged an outside consultant to update the previous year’s reserve study. This updated reserve study was completed in August 2024 to estimate the remaining useful lives and the replacement costs of the components of common property of the DHOA. Management, the FC and the Board reviewed and approved this reserve study in August 2024. The Annual Budget Report, Annual Policy Statement and Other Disclosures for the Fiscal Year October 1, 2024 through September 30, 2025 was reviewed and approved by the FC and the Board in August 2024 and sent to the Homeowners on August 28, 2024. This document is also posted on the Homeowners website. Copies of the Desert Horizons Owners Association Audited Financial Statements for the Year Ended September 30, 2024 as well as the Management prepared Unaudited Financial Statements for the Four Month Period Ended January 31, 2025 (approved by the Board and posted to the website) will be available at the March 9, 2025 Annual Meeting of Members.
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DESERT HORIZONS OWNERS ASSOCIATION BOARD OF DIRECTORS COMMITTEE REPORT ANNUAL MEETING 2025
Committee Name: Architectural Committee Members : Bob Nassaney, Patty Kunsemiller, Ed Meserve, Rob Zwemmer, and Nancy Crosby Submitted by: Paula Manoski (Chair) The hardworking members of the Architectural Review Committee reviewed 165 applications this year up from 120 last year. Members are investing in improving their homes. A big thanks to the members of the committee, Bob Nassaney, Patty Kunsemiller, Ed Meserve, Rob Zwemmer, and Nancy Crosby who take this role seriously and aim for quick turnaround to applications. The team is committed to working with homeowners to improve properties while striving to keep a quality and consistency in the community. A big thank you also to Victor Santos and Clarissa Villarino who are true partners and professionals working with homeowners and the committee to get the job done. The following list identifies the number and type of improvements approved by the committee:
Improvement
No.
Improvement
No.
Gates
7
Solar
12
Windows/replacement
10 12
Fence/walls
3 3 3
Awning/shades Outside BBQ
Smooth stucco
3 8
Home expansions
Pavers
Garage replacements/paintings
10
Mini-split/ HVAC
21 16
Misting Painting Lighting
4 4 6
Patio/ courtyard upgrades
ADU
2
Pool upgrades
16
Driveways
Trellis/ Alumawood 6 Any change or modification to the exterior of any property requires an application for approval to the ARC. While interior modifications do not require approval from the committee, an application is requested so that the HOA and security are aware of venders accessing the property, and so that the “quiet time” around the December holidays is observed
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DESERT HORIZONS OWNERS’ ASSOCIATION BOARD OF DIRECTORS COMMITTEE REPORT ANNUAL MEETING 2025
Committee Name: Landscape Committee Members: Jon Rombough, Jennifer Stranik, Christie Thoene, Rob Zwemmer Submitted by: Carol Schneider (Chair) Thank you to the members of the Landscape Committee for their active participation in the work of the committee this year. There have been many achievements made possible by the many hours of volunteer time provided by the talented Committee members. The Committee set some aggressive goals to achieve this year and has successfully achieved them. The Committee modified the Landscaping application process to include completed paperwork, detailed drawings, before and after photos; and clarity around future accountability for landscaping maintenance and irrigation for each property. These steps of the process are now documented and entered into our HOA data software for each member address. The Committee developed a comprehensive Scope of Work to be used in the Request for Proposal (RFP) to competitively bid out the landscaping agreement later this summer. Members of the Committee met twice with the Vintage CEO to discuss areas for improvement. The Committee researched options and formulated a recommendation for a hybrid desert scape model for Desert Horizons in the future. A request for reserve funds for 2026 will be made to identify a consultant to begin the long-range landscape plan. Homeowners submitted for approval 52 applications, with all but one proceeding and we can note some beautiful improvements to our community as a result of these investments. In collaboration with the HOA team, the Landscape Committee is already beginning to identify tree replacements and other planting needs for the 2026 budget and reserves to submit to the Board to be incorporated into the budget. The Committee experimented with different seasonal plantings for shady and sunny areas in the Common area spaces this year. We appreciated all the feedback and look forward to selecting another WoW for 2026!
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DESERT HORIZONS OWNERS ASSOCIATION BOARD OF DIRECTORS COMMITTEE REPORT ANNUAL MEETING 2025
Committee Name: Maintenance Committee Members: Mark Bonebrake, Jon Rombough, Bob Theel Submitted By: Mark Bonebrake (Chair) Streets
Street paving and maintenance have been completed for this year. Over 115,000 square feet of streets were paved. Streets paved included parts of Inverness and Lakeside, Muirfield Ct. and Olympic Court. In addition, 186,000 square feet of streets and the Club parking lot were seal-coated. Streets seal coated include St. Andrews, Riviera, Valle Vista, and Lakeside Dr. from the Cook St. gate to the far end of Spyglass. Roofs Roof maintenance has been completed by our new roofing vendor BRS. This yearly program resulted in replacing over 1,600 broken tiles, repairing flashings, sealing pipes where necessary and cleaning debris from all roofs and drains. Additionally, over 40 flat roofs were reconditioned at 1/6 the cost of the previous replacement method. Importantly, these reconditioned roofs come with a full 10-year materials and service warranty. House Painting Forty-five buildings were painted in 2024 with at least another 46 buildings will be painted in 2025.
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DESERT HORIZONS OWNERS’ ASSOCIATION BOARD OF DIRECTORS COMMITTEE REPORT ANNUAL MEETING 2025
Committee Name: Golf Committee Members: Dana Berkett Overstreet, Dave Hickey, Mary Jacobs, Mike Snyder Submitted by: Bob Lemon (Chair) I am very grateful to the hard working and talented members of the Golf Committee for their outstanding dedication and hard work during the past year. Thank you Dana, Dave, Mary and Mike for the hundreds of hours of effort in assuring a premier/private golf experience for our members and their families and guests. Special recognition to Nick Hanson and his golf course maintenance team for their superb conditioning of the golf course and practice areas throughout the year but especially during the high season months. Very special thanks to Donnel Holyk and her golf shop and outside services team for their outstanding work in supporting our membership with consistently smooth operations in a friendly, attentive and professional manner. Desert Horizons Golf is having a great year: • Through the first four months of the fiscal year (1/31/25) we have a healthy bottom line surplus of $95,000 which is $112,000 better than budget. • Currently at 185 full golf memberships with a projection to be at or near that number at fiscal year-end. Total golf members currently at 210 including all categories of membership. • We have welcomed many new golf members so far this year including 15 who joined under our new Invitational membership category. • Total rounds played season to date through 2/28/25 are up 4% year over year and golf shop sales of soft and hard goods are up 37% for the same period. • A lot of work went into planning and conducting this season’s very busy schedule of tournaments and events which have all gone very smoothly with a few more to come during the next two months. Congratulations to all the winners and thanks to all the volunteers and staff members who work behind the scenes to make it happen. • The first phase of work on a Master Plan for the golf course and related facilities will begin later this month.
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DESERT HORIZONS OWNERS ASSOCIATION BOARD OF DIRECTORS COMMITTEE REPORT ANNUAL MEETING 2025
Committee Name: Fitness, Wellness and Courts Committee Members: Andy Banachowski, Bryon Graves, Sherrill Sutherland, Heather Tucker, Dave White, Ed Gould, Barb Meserve, Sophia Ermoian, Jon Rombaugh (ex officio member and board member) Staff: Grant Bolin, Director of Fitness and Wellness, Cary Collins, Director of The Courts, Valerie Moreno, Assistant Submitted by: Don Costa (Chair and Board Representative) The FW&C Committee is an advisory committee that makes recommendations on the program offerings, operations and capital improvements of the fitness and wellness center and the tennis, pickleball and bocce courts programs. Committee members were selected as leads with Andy for Pickleball, Sherrill for Tennis, Heather for Wellness & Fitness and Dave for Bocce. Other members were assigned so that each “subcommittee” could focus on each program with leads bringing recommendations to the entire committee. This has been an exciting year as it was the first full year of program offerings. Bocce Many thanks to Dave, Barb and Ed for a phenomenal first season at the new clubhouse. A Breve tournament was held in the fall followed by the Prime tournament that included 18 teams and 18 captains for a total of over 160 players. To accommodate the number of teams play was held on both Sundays and Tuesdays. The future plans include a spring Breve Tournament, boot camps and socials, and we are working on the possibility of having inter club play starting with Toscana. Recommendations will be made for the coming year to improve the Bocce facility for a safer and larger standing area around the courts. Pickleball and Tennis Many thanks to Cary Colins, our new Courts Director who has brought structure to the Tuesday-Thursday-Saturday member open play and has regularly scheduled practice sessions for both new and experienced players. The number of members new to pickleball has grown substantially and we now have many days on which all courts are full. Private and group lessons have been extremely popular, which contributes to the growth of the sports at Desert Horizons. The Pickleball championships will be held Friday March 21st and Saturday March 22 nd . Cary has implemented an honor system for certain snacks and drinks, and we have also had Dink and Drink functions held at the Pavilion as we look for more ways to use the Pavilion. This year’s improvements included fence protectors, shade umbrellas and benches for the courts. Tennis lessons are available, and development of a tennis program is continuing. Page 10
Wellness and Fitness Grant Bolin and Valerie have done exceptional work as this year we transitioned from having Arche Amenities managing the Wellness and Fitness Center to bringing it in-house under the direction of Grant. The Fitness Center programs have continued to grow, and additional classes have been added for both the free and fee-based classes. A key card system has been implemented for the Fitness Center as it is being well used throughout early morning to late evening. The Wellness (spa) has been very well received and for the fiscal period through January 31 st revenue has been above budget. Refer to the bi-weekly. This report cannot capture the extensive improvements and offerings of the Wellness & Fitness center, so I ask that you visit the Desert Horizons Website to view all that is offered. General: Heather led a group in reviewing the guest policy for the Courts as included in our CC&R’s. Many changes have been recommended to simplify the policies and procedures. These will be finalized during the budget process at the same time we discuss whether to implement a guest fee for the courts and fitness center for fiscal 2026.
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DESERT HORIZONS OWNERS ASSOCIATION BOARD OF DIRECTORS COMMITTEE REPORT ANNUAL MEETING 2025
Committee Name: Emergency Preparedness Committee Members: Chris Clark, Byron Graves, Kristina Hoffman, Karen Lempert, Ron Lempert, Jon Rombough, Donna Okrusko, Sherrell Sutherland, Shelly Soorholtz, David Soorholtz Submitted by: Sandra Rogers During this past year the Committee has gained recognition by the Board of Directors and drafted, and the Board approved, a Committee Charter. The Committee has recruited and trained almost 20 new block captains and Emergency Operations Center personnel and will hold a drill at 2:00 PM on March 17, 2025 to afford an opportunity for all these people to apply these skills in a real life situation. The Committee has held regular block captain/first aid team meetings, virtually all of which have featured presenters with outside expertise to train us in such important skills as how to stop bleeding in a severely injured person (Stop the Bleed), when and how to assess whether it is necessary to turn off a gas meter to prevent fire, and what to do if faced with an active shooter situation. Many of these sessions have been open to all DH residents. Moreover, the Committee has kept DH residents informed of training opportunities outside our community in which they can obtain invaluable information as to how to prepare themselves to better survive a disaster. The Committee has continued to carry out monthly radio drills with the City of Indian Wells to test and maintain continuing ability to communicate in a disaster. Throughout this year, continuous updates have been deployed to the DH Emergency Preparedness Database to facilitate ease of use and to increase the types of reports which can be elicited from that database. Further, a total inventory of the Committee’s first aid supplies was completed, and new supplies ordered to replace those which had expired. Thereafter, all of the first aid supplies were moved into the Committee’s newly designed storage room in the clubhouse. The Committee has maintained fiscal responsibility and completed all necessary tasks within the budget requested by from and approved by the Board of Directors.
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DESERT HORIZONS OWNERS ASSOCIATION BOARD OF DIRECTORS ADVISORY GROUP REPORT ANNUAL MEETING 2025
Advisory Group Name: Club/Social Advisory Group Members: Joanne Pastula, Barbara Cooper, Nancy Crosby, Marilyn Davidson, Peggy Eaton, Arlene Hamacher, Georgia Hosac, Barbara Meserve, Susan Rombough, Judy Sloan, Carol Pavlick. Submitted by: Cyndie Shepard (Chair) I would like to thank the members of the Club/Social advisory group for the support and dedication to make every single occasion a very special one. In addition thanks To Rodrigo Gutierrez for his leadership and guidance working with us. Fall 2024: A Warm Welcome Back The season started with our highly anticipated Welcome Home Event, which was a resounding success, drawing nearly 300 enthusiastic attendees. The atmosphere was electric, filled with laughter, camaraderie, and the joy of reconnecting with friends and neighbors after the summer break. Attendees enjoyed live music from a talented local band that got everyone on their feet, dancing and celebrating the beginning of the season. The event successfully raised funds designated for seasonal décor and entertainment, ensuring our upcoming events will be as vibrant and engaging. Winter 2024-25: A Season of Celebration and Community • Merry Mailboxes and Cart Décor Tour : This event attracted over 100 participants, who showcased their creativity with more than 140 beautifully decorated mailboxes. The tour highlighted our members’ artistic talents and fostered a sense of community as neighbors admired each other’s festive displays, and we added a karaoke afterward. • Christmas Eve Dinner : Our annual Christmas Eve Dinner was a season highlight, selling out completely. Attendees were treated to a beautifully decorated dining space and a gourmet meal that received rave reviews. The warm ambiance and joyful camaraderie captured the holiday spirit's essence. • New Year’s Eve Gala: The New Year’s Eve Gala was another sold-out affair. It featured an elegant evening with a live band that kept the dance floor lively. Guests enjoyed a sumptuous dinner, and the stunning décor created a magical atmosphere, leaving attendees eager for continued celebrations. • Scholarship Event: Our Scholarship Event was a tremendous success, selling out and generating a remarkable $95,000 for scholarships, with an additional $5,000 anticipated from the March Home Tour. The overwhelming support from our members underscores the community’s commitment to fostering education and opportunity for deserving students. • Valentine’s Dinner Show : This delightful evening filled with love and laughter drew 140 attendees. The event's popularity led us to add 28 additional seats to accommodate demand. Guests were mesmerized by the magician’s performance, and the combination of an exquisite dinner followed by dancing created a memorable night for all.
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We are organizing several cocktail parties for new members to enhance our community spirit further. These gatherings aim to warmly welcome newcomers into our vibrant community, fostering connections and friendships among members. Looking Ahead: Exciting Upcoming Events As we move into the next phase of our season, we are thrilled to announce an array of exciting events that promise to engage and entertain our members: • St. Patrick’s Day Dinner: Celebrate the luck of the Irish with a festive dinner featuring traditional cuisine. • Easter Weekend Festivities: Join us for a weekend filled with family-friendly activities, including an Easter egg hunt and a special brunch. • Bon Voyage Event : This unique gathering will celebrate travel and adventure, featuring themed décor and activities that inspire wanderlust. • Mother’s Day Brunch: A special day to honor mothers and caregivers, complete with a delicious brunch and heartfelt tributes. We look forward to another successful season filled with laughter, connection, and unforgettable memories. Thank you for being an integral part of the Desert Horizons community!
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DESERT HORIZONS OWNERS ASSOCIATION BOARD OF DIRECTORS COMMITTEE REPORT ANNUAL MEETING
Committee Name: Strategy Committee Members: Peter DeMaris, Mark Seuss, Scott Thomason, Harry Aldrich Submitted by: Paula Manoski (Chair) The committee provides support in the development and implementation of Desert Horizons strategic goals. The long-standing issues of pools was highlighted as the first initiative to be addressed by this group. The team is building a business case for 3 different scenarios 1) removal of 10 pools, 2) keeping these 10 pools and 3) midpoint scenario where less than 10 are removed/kept. Evaluation includes capital estimates, operating cost and permitting challenges. The team reviewed existing information compiled over the years and developed summaries to share with the community in a town hall. The goal is to gather enough information so the community can vote on what scenario to move advance. A big thanks to Peter DeMaris, Mark Suess, Harry Aldrich and Scott Tomason who provided great insights and structure to define the problem and put numbers behind the different scenarios. Looking forward to sharing this with the community before season’s end.
Respectfully submitted, Paula Manoski, Chair
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FINANCIALS
DESERT HORIZONS OWNERS ASSOCIATION BALANCE SHEET SEPTEMBER 30, 2024 (Summarized Totals For September 30, 2023)
ASSETS
Operating Replacement Fund Fund
Totals
2024
2023
ASSETS Cash and cash equivalents
$
460,359 4,542,118 $
$ 5,002,477 17,950,503 $
Certificates of deposit
- -
2,368,313
2,368,313
3,278,150 2,000,000
Investments
-
-
Assessments and dues receivable, net allowance for bad debts of $2,000 for 2024 and $18,000 for 2023
81,492 130,754
- - - - - - - -
81,492 130,754
463,239 125,254
Receivable from the City of Indian Wells
Special assessment receivable
-
-
1,980,004
Other receivables
77,775 296,209 34,417
77,775 296,209 34,417
126,318 220,460 15,664
Inventories
Prepaid expenses
Property and equipment, net of accumulated depreciation
40,817,930
40,817,930 24,260,936
Right-of-use operating lease asset
235,329 (600,000)
235,329
218,751
Interfund loan
600,000
-
-
Other assets - Liquor License
20,000
-
20,000
20,000
$ 41,554,265 7,510,431 $
$ 49,064,696 50,659,279 $
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable Accrued expenses
$
241,048 405,158 428,411 235,329 734,419
$
6,300
$
247,348 405,158 428,411 235,329 734,419
$ 1,113,715
- - - - -
3,724,944
29,500 218,751 49,750
Prepaid dues and assessments
Operating lease liability
Financing leases Notes payable
23,188,067
23,188,067 23,954,491
25,232,432
6,300 25,238,732
29,091,151
FUND BALANCES Operating Undesignated
(926,330)
-
(926,330)
(1,123,132)
Property and equipment, net of notes payable and financing leases
16,895,444
- -
16,895,444
306,445
Designated - Clubhouse Renovation
352,719
352,719 16,245,277
Replacement fund
-
7,504,131
7,504,131
6,139,538
16,321,833 7,504,131
23,825,964 21,568,128
$ 41,554,265 7,510,431 $
$ 49,064,696 50,659,279 $
The accompanying notes are an integral part of these financial statements.
4
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DESERT HORIZONS OWNERS ASSOCIATION STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCES
(Summarized Totals For The Year Ended September 30, 2023) YEAR ENDED SEPTEMBER 30, 2024
Operating Replacement Fund Fund
Totals
2024
2023
OPERATING REVENUES Residential assessments Social membership dues
$ 5,105,280 2,288,336 4,008,953 1,456,087
$ 1,836,000
$ 6,941,280 2,288,336 4,008,953 1,456,087
$ 6,022,656 1,980,018 3,876,448
- - - - - - - -
Golf income
Food and Beverage income Fitness and spa income
774,305
100,480 527,046 87,171 1,490 13,744 154,632
100,480 527,046 87,171 146,831 13,744 154,632
-
LLMD income Sales office rent Interest income
551,312 69,812 26,411
145,341
Gain on disposal of assets Miscellaneous income
-
115,101
13,743,219
1,981,341 15,724,560
13,416,063
OPERATING EXPENSES Golf
4,099,727 2,498,883 958,604 6,355,992 501,091 78,857
- - - - - -
4,099,727 2,498,883 958,604 6,355,992 501,091 78,857 1,374,483
3,969,632 1,540,330 647,376 6,002,209
Food and beverage Clubhouse expenses Community expenses Fitness and spa expenses Income tax expense Replacement fund expenditures
-
18,203 530,199
1,374,483
-
14,493,154
1,374,483 15,867,637
12,707,949
Excess (deficiency) of operating expenses over revenues
(749,935)
606,858
(143,077)
708,114
NON-OPERATING INCOME / (EXPENSES) Capital assessments
1,903,267 612,000 325,425
- - -
1,903,267 612,000 325,425 510,000 427,050 145,145 (517,720) (1,004,254) - 2,400,913 $ 2,257,836
1,872,750 6,181,400
Special assessments Additional golf dues
-
Social initiation assessment Golf initiation assessment Golf course capital expenses
- - -
510,000 427,050
405,000 385,400 (68,753)
- - - -
Interest income Interest expense
145,145 (517,720) (1,004,254) 1,463,863
- -
Depreciation expense
(1,665,955) 7,109,842
937,050
Excess of revenues over expenses
$
713,928
$ 1,543,908
$ 7,817,956
FUND BALANCES, beginning of the year
$ 15,428,590
$ 6,139,538 21,568,128 $
$ 13,750,172
Excess of revenues over expenses
713,928 179,315
1,543,908
2,257,836
7,817,956
Interfund transfers
(179,315)
-
-
FUND BALANCES, end of the year
$ 16,321,833
$ 7,504,131 23,825,964 $
$ 21,568,128
The accompanying notes are an integral part of these financial statements.
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DESERT HORIZONS OWNERS ASSOCIATION STATEMENTS OF CASH FLOWS
YEAR ENDED SEPTEMBER 30, 2024 (Summarized Totals For The Year Ended September 30, 2023)
Operating Replacement Fund Fund
Totals
2024
2023
NET CASH FLOWS FROM OPERATING ACTIVITIES Excess of revenues over expenses Adjustments to reconcile net revenues over expenses to net cash flow from operating activities: Depreciation
$
713,928
$ 1,543,908
$ 2,257,836
$ 7,817,956
1,004,254
- -
1,004,254
1,665,955
Gain on sale of equipment
(13,744)
(13,744)
-
(Increase) Decrease in:
Assessments receivable
381,747
- - - - - -
381,747
(407,656) (49,995) (1,980,004) (110,057) (101,173)
Receivable from City of Indian Wells Special assessment receivable
(5,500)
(5,500)
1,980,004
1,980,004
Other receivables
48,543
48,543
Inventories
(75,749) (18,753)
(75,749) (18,753)
Prepaid expenses
9,009
Interfund receivable/payable
600,000
(600,000)
-
-
Increase (Decrease) in: Accounts payable Accrued expenses Prepaid assessments
(860,766) (3,308,763)
(5,601) (11,023)
(866,367) (3,319,786)
270,422
3,284,173 (105,324)
398,911 844,112
-
398,911
Net cash provided by operating activities
927,284
1,771,396 10,293,306
CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment
(16,799,784)
- -
(16,799,784)
(17,600,381)
Proceeds from sale of equipment
13,744
13,744 909,837
-
Net (purchase)/sale of certificates of deposit
1,002,535 2,000,000
(92,698)
(527,095) (2,000,000) (20,127,476)
Net (purchase)/sale of investments Net cash used by investing activities
-
2,000,000
(13,783,505)
(92,698)
(13,876,203)
CASH FLOWS FROM FINANCING ACTIVITIES Payments on financing leases
(76,795)
- - -
(76,795)
(42,152)
Proceeds from notes payable Payments on notes payable
-
-
24,000,000
(766,424) 179,315 (663,904)
(766,424)
(45,509)
Interfund transfer
(179,315) (179,315)
-
-
Net cash used by financing activities
(843,219)
23,912,339
Net increase (decrease) in cash
(13,603,297)
655,271 (12,948,026)
14,078,169
CASH AND CASH EQUIVALENTS, beginning of the year
14,063,656
3,886,847 17,950,503
3,872,334
CASH AND CASH EQUIVALENTS, end of the year
$
460,359
$ 4,542,118
$ 5,002,477 17,950,503 $
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION Cash paid during the year for interest
$ 1,069,091
$
227,703
Cash paid during the year for income taxes
$
28,740
$
7,700
The accompanying notes are an integral part of these financial statements. 6
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DESERT HORIZONS OWNERS ASSOCIATION MONTHLY OPERATIONAL INCOME STATEMENT BUDGET - FISCAL YEAR 2025
5th Draft CORRECTED
OCT
NOV
DEC
JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
TOTAL
REVENUES Community Assessment
667,270 385,080 59,175 41,290 46,974 138,800
667,270 667,270 667,270 667,270 278,938 280,449 292,521 309,057
667,270 309,057 62,175 265,786 113,179 78,100 81,750 28,500
667,270 283,521 62,175 255,705 102,947 48,700 70,900 24,500
667,270 667,270 281,985 278,913
667,270 667,270 667,270 275,841 272,769 271,233
8,007,240 3,519,364
Golf Dues
HOA Income Food Income
61,175
61,175
62,175
62,175
63,175 159,364 55,620 28,500 23,400 17,350
61,175 56,366 15,741
61,175 13,200
59,175
59,175 34,950
734,100
227,302 181,271 205,033 274,539
7,800 2,429
1,722,606
Beverage Income
131,582 53,800 46,100 10,200
68,152 44,000 48,120 14,750
84,809 39,250 30,050 17,350
95,131 75,350 65,050 22,900
3,984
970 350 250
721,518 511,000 376,270 154,650
Golf Operations Income Golf Shop Sales Income
3,200 4,650 8,200
600 750
350 250
5,000
Locker, Tennis & Fitness income
0
7,100
2,000
1,800
Total Revenues
1,343,589 1,476,367 1,365,187 1,398,458 1,571,472 1,605,817 1,515,718 1,296,663 1,095,515 1,029,920 1,012,043 1,035,998 15,746,748
COGS Food and Beverage
18,256
143,174 32,900
83,135 34,100
97,735 124,104
128,391 57,050 185,441 32,896 229,213 21,320 115,460 78,647 59,824 153,169 24,639 715,167
125,469 49,200 174,669 35,125 226,677 20,880 116,879 77,184 57,905 145,401 24,002 704,053
70,231 16,275 86,506 34,957 197,160 21,300
23,345
5,243
2,971
516 163 678
822,570 266,970
COGS Pro Shop
5,250
22,100
45,950
3,333
488
163
Total COGS
23,506
176,074 117,235 119,835 170,054
26,678
5,731
3,133
1,089,540
PAYROL & RELATED HOA Administration and Maintenance
43,304 113,813
33,976
35,406
38,546
33,524
31,824 92,164
35,073 65,291
31,824 40,430
34,038 40,430
420,491
Food Department Bar Department
232,435 230,702 257,705 231,880
1,957,901
1,895
22,013
21,650
24,365
21,214
3,553
1,662
0
0
159,852
General and Administration Golf Operation/Pro shop Lockers, Tennis and Fitness Golf Course Maintenance Clubhouse/Housekeeping
116,993 44,257 23,437 161,680 21,106 526,485
116,203 119,695 125,425 116,202
119,178 115,979
122,417 119,156 120,787
1,424,375
78,223 47,068
78,612 51,776
85,641 55,043
78,120 56,543
59,571 52,328
38,532 28,312
40,086 20,088
39,679 16,458
38,276 16,401
736,827 485,184
158,902 147,562 164,876 145,774
146,069 129,609
155,440 141,056 150,825
1,800,363
24,924
25,998
28,149
24,694
23,775
13,622
14,932
12,573
14,358
252,772
Total Payroll & Related
713,745 711,402 779,750 707,951
654,338 453,593
454,990 401,176 415,115
7,237,766
OPERATIONAL EXPENSES HOA Administration and Maintenance
433,566 21,145
398,006 379,166 360,786 354,286
359,476 13,045
367,166 19,745
380,936 348,646
352,146 347,646 348,356
4,430,182
Food Department Bar Department
26,445
21,745
13,045
15,445
8,645 1,200
3,345
3,645
1,545
10,345
158,140 18,400 308,010 156,630 105,255
5,700
1,800
1,000
1,550
1,900
1,900
1,100
700
550
500
500
General and Administration Golf Operation/Pro shop Lockers, Tennis and Fitness Golf Course Maintenance Clubhouse/Housekeeping
61,290 51,730 14,405 353,740 63,711
26,070 11,930 19,572 65,600 56,661
28,420
22,820 15,040
24,120 11,180
19,720 11,040
35,820 10,380
22,220
20,720
17,920
14,570
14,320
7,230 7,655
7,880 7,205
8,130 6,283
8,980 6,355
6,930 6,105
6,180 6,105
7,655
7,905
7,605
8,405
78,000 61,881
52,600 63,311
84,600 62,061
96,200 58,911 567,897
93,800 62,411 598,827
97,800 153,450
181,200 82,961
90,400 77,711
97,400 76,711
1,444,790
58,011
71,761
796,102
Total Operational Expenses
1,005,287
606,084 585,097 536,807 561,497
583,897 613,035
653,757 545,407 559,917
7,417,509
Other Operational Expenses Interest Expense
0 0
Total Other Operational Expenses
0
0
0
0
0
0
0
0
0
0
0
0
TOTAL ALL EXPENSES Net Operating Profit (Loss)
1,555,279 1,495,903 1,413,734 1,436,391 1,439,502 1,468,506 1,477,549 1,324,741 1,093,306 1,114,478 949,716 975,711 15,744,815
(211,689) (211,689)
(19,536) (19,536)
(48,547) (48,547)
(37,933) (37,933)
131,970 131,970
137,311 137,311
38,169 38,169
(28,077) (28,077)
2,209 2,209
(84,558) (84,558)
62,327 62,327
60,287 60,287
1,933 1,933
Net Income (Loss) before Depreciation
Depreciation Expense
0
Net Profit ( Loss) after Depreciation
(211,689)
(19,536)
(48,547)
(37,933)
131,970
137,311
38,169
(28,077)
2,209
(84,558)
62,327
60,287
1,933
RESERVES HOA and GOLF Community Reserves
165,750 25,000
165,750 165,750 165,750 165,750
165,750 100,000
165,750 100,000
165,750 165,750
165,750 165,750 165,750
1,989,000
Social Initiation Fees
50,000
50,000
75,000
75,000
75,000
50,000
50,000
50,000
50,000
750,000 102,350 522,000
Golf Reserves
8,500
8,550
8,550
8,650
8,700
8,700
8,650
8,600
8,500
8,400
8,300
8,250
Golf Initiation Fees Capital Assessment
0
43,500
43,500
87,000
87,000
43,500 153,000 470,950
43,500 153,000 470,900
43,500
87,000
43,500
0
0
153,000 352,250
153,000 153,000 153,000 153,000 420,800 420,800 489,400 489,450
153,000 153,000 445,850 464,250
153,000 153,000 153,000 420,650 377,050 377,000
1,836,000 5,199,350
Community Assessment, HOA assessment and Social Dues combined.
Page 20
DESERT HORIZONS OWNERS ASSOCIATION BALANCE SHEET
ASSETS
Replacement January 31, 2025
September 30, 2024
Operating
Total
Operating
Replacement
Total
Fund
Fund
Fund
Fund
ASSETS Cash and cash equivalents Certificates of Deposit
741,276 4,718,545
5,459,821 2,104,432 240,804 309,074
460,359
4,542,118 2,368,313
5,002,477 2,368,313 81,492 130,754 77,775 296,209 34,417 235,329 20,000 40,817,930 49,064,696 -
-
-
2,104,432
- - - - - - - -
Assessments and dues receivable Receivable from the City of Indian Wells
240,804 309,074 47,157 435,137 160,300 - 235,329 20,000
- - - - - - - - -
81,492 130,754 77,775 (600,000) 296,209 34,417 235,329 20,000 40,817,930 41,554,265
Other Receivables Interfund Loan
47,157
-
600,000.00
Inventory
435,137 160,300 235,329 20,000 40,378,026 49,390,080
Prepaid Expenses
Property and Equipment, net accumulated Depreciation
40,378,026
Right-of-use operating lease asset Other Assets - Liquor License
7,510,431
42,567,103 6,822,978
LIABILITIES AND FUND BALANCES
LIABILITIES Accounts Payable Accrued Expenses
6,300
247,348 405,158 428,411 235,329 734,419
366,676 486,692 248,886 235,329 686,459
- - - - - - -
366,676 486,692 248,886 235,329 686,459
241,048 405,158 428,411 235,329 734,419
- - - - -
Prepaid Dues and Assessments Operating Lease Liability
Financing Leases
Notes Payable (Clubhouse Loan)
22,925,170 24,949,212
22,925,170 24,949,212
23,188,067 25,232,432
23,188,067 25,238,732
6,300
FUND BALANCES
Undesignated
617,528
- - -
617,528
(926,330) 16,895,444
- - -
(926,330) 16,895,444 352,719 7,504,131 23,825,964
Property and Equipment Net of Clubhouse Loan and financing leases
16,766,397
16,766,397 233,966 6,822,978 24,440,868
Designated - Clubhouse Renovation
233,966
352,719
Replacement Fund
-
6,822,978
-
7,504,131 7,504,131
17,617,891 6,822,978
16,321,833
7,510,431
49,064,696
42,567,103 6,822,978
49,390,081
41,554,265
Replacement Fund YTD
Balance at September 30, 2024
7,504,131
Additions
Residential Assessments Golf Reserve Dues Social Initiation Assessment Golf Initiation Assesment
663,000 35,450 180,000 68,100
Interest Sub-total
82
946,632
Expenditures
Concrete
- -
Pool Decks Waterscape
84,509 27,330 24,405 220,715 396,316
Paint/Stucco Homes Pools and Spas
Roofs Streets
Pool Equipment
- - - - -
General Maint Vehicles Electrical Updates
Office equipment/Technology
Bocce Courts
Signage
5,760
Total Expenditures
759,035
Golf Expenditures
20,219 20,219
Total Golf Expenditures
Total Expenditures
779,254
Fitness Equipment (Interfund Transfer) Golf Equipment (Interfund Transfer)
190,635 657,896 848,531
Total Interfund Transfer
Replacement Fund Balance as of 01/31/2025
6,822,978
Designated Clubhouse Renovation Fund YTD
Balance at September 30, 2024
352,719 612,000 14,850 (262,898) (336,413) (146,293) 233,966
Capital Assessments Social Capital Fee
Principal Payments on Notes Payable
Interest Expense Expenditures
Designated Clubhouse Renovation Fund as of 01/31/2025
Page 2 1
STATEMENTS OF REVENUES AND EXPENSES DESERT HORIZONS OWNERS ASSOCIATION January 31, 2025
ACTUAL
BUDGET
YTD ACTUAL
YTD BUDGET
Operating Replacement January-25 Operating Replacement January-25
Operating Replacement
January-25 Operating Replacement
January-25
Fund
Fund
Fund
Fund
Fund
Fund
Fund
Fund
OPERATING REVENUES Residential Assessments Social Membership Dues
611,260 221,760 403,721 289,843 17,350 42,500 1,250 7,000
1,782,040 916,972 1,706,308 869,953 89,028 178,320
663,000
2,445,040 1,782,040
663,000 2,445,040
445,510 165,750
611,260 231,028 445,648 260,447 32,439 44,580
445,510 165,750
-
916,972
887,040
-
887,040
231,028 436,748 260,447 32,439 44,580
-
221,760 394,821 289,843 17,350 42,500 1,250 7,000
-
Golf Income
8,900
8,900
35,450
1,741,758 1,642,108
35,450 1,677,558
Food and Beverage Income
- - - - -
- - - - - - - - - - - - -
- - - - -
869,953 89,028 178,320 4,568 26,047
986,415 42,300 170,000 5,000 23,000
- - - - - - - - - - - - -
986,415 42,300 170,000 5,000 23,000
Fitness
LLMD income
Security Home Watch Service
605
605
4,568 26,047
Sales Office Rent Interest Income
13,830
13,830
-
20
20
-
-
-
82
82
-
-
Miscellaneous Income
8,969
-
8,969
11,425
11,425
26,388
-
26,388
45,700
45,700
1,474,155 174,670
1,648,825 1,431,459
174,650
1,606,109
5,599,623
698,532
6,298,155 5,583,603
698,450 6,282,053
OPERATING EXPENSES Golf Food and Beverage
351,303 390,069 504,670 88,015 57,527 9,351
- - - - - -
351,303 390,069 504,670 88,015 57,527 9,351 120,264
344,258 396,899 544,905 99,576 45,141 10,415
344,258 396,899 544,905 99,576 45,141 10,415 120,264 1,561,458
1,611,079 1,369,896 2,263,480 328,656 206,677 35,334
1,658,975 1,334,709 2,349,327 365,512 163,770 43,194 779,254
- - - - - -
1,611,079 1,658,975 1,369,896 1,334,709 2,263,480 2,349,327
Community Expenses and Admin
328,656 206,677 35,334 779,254
365,512 163,770 43,194
Clubhouse
Fitness Courts
779,254 779,254
-
779,254
Replacement Fund Expenditures
-
120,264
-
120,264 120,264
-
1,400,935 120,264
1,521,199 1,441,194
779,254 6,694,741
5,815,122
6,594,376 5,915,487
44,651
(215,499)
(80,722)
(296,221)
(331,884)
(80,804)
(412,688)
Excess (Deficiency) of Operating expenses over revenue 73,220
54,406
127,626
(9,735)
5 4,386
NON-OPERATING INCOME/EXPENSE Capital Assessments
153,000
-
153,000 50,000 23,100
153,000
- - - - - - - - - -
153,000
612,000
-
612,000 180,000 68,100 14,850 90,774 885,870 (586,196) (336,413) (17,860) 911,125
612,000
- - - - - - - - - -
612,000
- - - - - - - -
- - - - - - - -
Social Initiation Assessment Golf Initiation Assessment Social Capital Fee Additional Golf Dues Prior Year Assessment
- -
50,000 23,100
- - - - - - - -
- - - - - - - -
- -
180,000 68,100
3,600
- - - - - -
3,600
14,850 90,774 885,870 (586,196) (336,413) (17,860) 663,025
- - - - - -
(77,538)
(77,538)
-
-
Depreciation
(146,549) (85,115) (17,860) (170,462)
(146,549) (85,115) (17,860) (97,362)
Loan Interest Expense
Taxes
73,100
153,000
153,000
248,100
612,000
612,000
Excess (Deficiency) of Revenues over expenses
$
(97,241)
$ 127,506 $
30,264 $ 143,265 $ 54,386 $
197,651
$
447,526 $
167,378 $
614,904 $ 280,116 $ (80,804) $
199,312
Fund Balance Beginning of the Year Excess of Revenues Over Expenses
16,321,833
7,504,131 167,378 (848,531)
23,825,964
447,526 848,531
614,904
Interfund transfers
-
Fund Balances end of period
$ 17,617,890 $ 6,822,978 $ 24,440,868
Page 22
2
DESERT HORIZONS OWNERS ASSOCIATION DEPARTMENTAL REVENUES AND EXPENSES January 31, 2025 GOLF SHOP AND GOLF COURSE OPERATIONS
Jan-25
Jan-25
Actuals
Budget
YTD Actuals YTD Budget
REVENUES
Memberships and dues (CLF) Greens and driving range fees
317,325 48,384 54,559 16,481 436,748 38,300 194,069 28,641 22,679 17,190 21,349 19,175 4,248
325,521 27,000 30,050 12,250 394,821 22,100 197,833 28,817 24,068 15,400 26,790 22,700 5,550
1,209,557 1,236,988
249,829 189,954 56,969
229,800 129,270 46,050
Pro Shop sales
Cart, club rental and other income
Total Revenues
1,706,308 1,642,108
EXPENSES
Cost of sales-Proshop Salaries and wages
127,537 728,240 80,013 84,245 260,329 180,960 107,456 20,135 1,588 16,576 4,000
94,350 757,645 75,292 88,518 299,100 205,970 111,900 22,200
Payroll Taxes
Employees benefits
Golf Course Care and maintenance
Operating Expenses
Utilities
Golf Cart Lease Equipment rental Contracted Services Total Expenses
717
- -
- -
Interest Expense Capital Lease
3,934 1,000
1,000
4,000
351,303
344,258
1,611,079 1,658,975
NET GOLF OPERATIONS/GOLF COURSE (DEFICIENCY) OVER REVENUES
85,445
50,563
95,230
(16,867)
Page 23
2
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