CFO Report ... continued
Now looking forward we are seeing a “new era” on the horizon thanks to the outward vision presented by the Board-Approved Vision Statement for our Resort. We are challenging our Strategic Planning/Facilities Planning/Finance Committees, and others, to react to the future in sight. This will require new focus on revenue sources to address future strains on the financial picture. We need upgraded sports and social facilities, a management structure that has breadth and depth operating 365 days a year, the need for more socially- oriented activities for all ORPS and a solidified policy for “capital” raising to fund all of this future we see ahead of us for ORPS. Another concern is the raising of the minimum wage as imposed by the State of California that will financially ripple into every labor-oriented cost we have. This, coupled with a reduction of the Resort Fee income anticipated with the selling off of vacant lots will strain our cash-generating future and ultimately force HOA fees up. The time to act is now, while we are still financially healthy. We have to find newer more consistent Revenue/Capital resources that are steadier going forward or our present financial picture will reverse itself forcing HOA fees to rise incrementally to meet the challenges. The rises will be substantial compared to what we’ve recently been used to. What can our “homeowners do” while management is coming to grips with the future? SIMPLY THIS: Take advantage of the expanded ORPS lounge area (19 th hole) that now has longer hours of operation, entertainment at least three times a week and food served most nights. By supporting this effort developed by your management as a new “socially-expanded” experience for all residents, you will put money into our coffers and put a “downward pressure” on the rise of HOA fees going forward. Every dollar you generate in net profit will offset potential increases in HOA fees. Wouldn’t you rather spend your money having a great time with friends at our newly expanded Lounge experience than just pay the money to ORPS in a coupon book each month all year? The answer is clear! Everybody wins and it becomes one new tool in the fight against higher HOA fees! Watch for the “Email Blasts” that come out of our Activities Office almost every day on what’s going on in the lounge or inquire at Activities Office!
I hope all had a fun and festive holiday season! As we start this new calendar year, we are busily planning for our next fiscal year. Budgets are being reviewed as are our list of summer projects. Speaking of future projects, the Board approved the distribution of a
survey to the membership. The survey was created by the Strategic Planning Committee and it will be used as a tool to help guide the resort in how we progress with improvements of our facilities. It is anticipated that the survey will go out the second week of January so please keep a lookout for it. The survey will be sent out via email and it is encouraged that the survey be completed this way as it is easier to gather data. However, there will be paper copies available for those who are not able to complete it electronically. There will be only one response per lot so if you have two email address on file, it will likely only go to one. Further information will be in an upcoming Out and About so stay tuned. On a separate note, my next Community Chats will be on January 11 and January 25 at 2PM in the Owners Lounge in El Saguaro. As a reminder, the chats are an informal conversation regarding things in the resort and an opportunity for questions and answers as well as discussion. This year we have a bit of a twist as we spend the first part of the meeting on a specific topic and then after that is exhausted it is open to all topics. The chat on January 11 will be a general discussion on facilities and B YRON J ESSIE , our facilities manager will be there. On January 25 , the topic will be on Security and F RANK F LORES , our post commander will be there. Here’s to a great start to the New Year! As we enter 2019 I can report that presently the Resort is financially healthy due to recent past management application of controls, better marketing of the resort to new prospective owners, and establishing a “new direction” by the present progressive Board. These management techniques included strict cost increase controlling, higher resort fee revenue contribution to operating cash levels, and strategic investments in our facilities. This has contributed to the selling down over the last two seasons of our vacant lot inventory from about 240 lots for sale to now less than 45 bringing in more than 150 new owners in the last 12 month period. Most of these new owners were previous renters. By raising the Resort Fee, we took out the financial advantage of renting here vs buying. This has benefited our present owners by helping them sell their lots faster and at a higher price with property values up more than 20% and still climbing.
See you all there, J IM W ALLER , CFO
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