Through July 31, 2026 · Month 8 of 12
Revenue is running $22,789 ahead of budget and nearly every expense category is on or under plan. July still posted a ($14,162) loss — and essentially all of it is one runaway line: water & sewer. Strip that line out and the association is comfortably in surplus. Management is now running a leak audit and meter verification while the city corrects a known invoice allocation error.
The association is well managed and on budget except for one runaway line — water & sewer. Revenue is $22,789 ahead of budget; the entire YTD loss of ($32,961) sits on the expense side, and water alone is ($73,570) over. Reserve interest has already earned 99% of its full-year budget in eight months, electricity is $49,062 under, and insurance keeps improving. Total cash eased to $5.14M with reserves holding at $4.23M. The year still projects to a ~$32,000 surplus against a breakeven budget.
Two items need Board action: water & sewer requires a leak audit and meter verification, and 90+ day delinquencies climbed to $143,771 — up another $14,145 in July — as those files move to a more aggressive collections firm.
The city bundles gas, water and trash across two invoices, and the split between them is known to be wrong — gas has been under-allocated and water over-allocated. Management is working with the city to correct it. Because gas ran $14,514 under budget year to date while water ran over, the true combined utility cost is better than the water line alone suggests. Where noted below, water is presented with that gas underspend credited against it; the general ledger is unchanged and the GL-actual figures are footnoted throughout.
Budget called for breakeven. Insurance savings and reserve interest remain fully intact as positive drivers. The decline from last month's ~$63K view is entirely water & sewer — no other driver moved against us. The year still finishes in the black.
| Metric | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul |
|---|---|---|---|---|---|---|---|---|
| Net Income / (Loss) | ($26,579) | $870 | ($2,694) | ($556) | $682 | $4,686 | $4,792 | ($14,162) |
| Operating Cash | $661,033 | $543,749 | $507,125 | $460,996 | $471,510 | $454,695 | $593,714 | $535,791 |
| Reserve Cash | $3,670,931 | $3,846,872 | $3,956,632 | $4,061,059 | $4,198,222 | $4,331,056 | $4,249,345 | $4,231,778 |
| Total Cash | $4,704,522 | $4,763,179 | $4,836,314 | $4,894,613 | $5,040,290 | $5,158,309 | $5,215,617 | $5,139,127 |
| Insurance (mo.) | $63,977 | $85,350 | $62,684 | $70,168 | $65,690 | $42,096 | $39,956 | $41,287 |
| Reserve Interest (mo.) | $7,694 | $6,143 | $1,364 | $151 | $25,298 | $14,699 | $25,780 | $8,112 |
| Water & Sewer (mo.) | — | — | — | ~$37,000 | $81,000 | $56,361 | $64,523 | $75,846 |
The bond portfolio has earned $89,241 against a full-year budget of $90,000 — with four months still to run. Full year projects to $133,849, a $43,849 surplus the budget never assumed. Bonds pay semi-annually, so income lands in lumps rather than evenly.
YTD revenue of $3,947,317 beats budget by $22,789. Owner assessments are dead-on plan, and late fees, late fee interest and administrative fees are all running above budget. The entire YTD loss is on the expense side — not a collections or revenue problem.
VFD systems on AC equipment and domestic water pumps keep delivering. YTD $170,938 vs $220,000 budget = $49,062 under, our single largest saving. Management and Maintenance Supervisor Julio are evaluating garage lighting upgrades as the next efficiency project.
July insurance was $41,287 vs a $56,250 budget — $14,963 favorable. The YTD overage keeps shrinking as the old high property rate washes out, from ($36,170) in June to ($21,208) now. Full year projects to $622,003 vs $675,000 = $52,997 in savings.
July was $75,846 against a $44,167 budget — ($31,679) in a single month. Four elevated months running (Apr $81,000, May $56,361, Jun $64,523, Jul $75,846) average ~$69,500 against a $44,167 budget. This is no longer explainable as timing or allocation: it needs a leak audit and meter verification. Adjusted for the known city invoice allocation error — the gas underspend of $14,514 is credited to water. GL actual water variance is ($73,570); management is correcting the underlying invoice allocation.
Three chronic units drive the balance. The 90+ day figure rose another $14,145 in July (from $129,626); maintenance fees 90+ alone are $115,788. The Association is moving these files to a new, more aggressive collections firm, with amenity suspension under FL Statute 718.303(4) also available. Unit-level detail is withheld here; see Section 08.
July $10,780 vs $8,333 budget. YTD $85,101 vs $66,664 = ($18,437) over. A confirmed city rate increase was not captured in the budget; at this pace we finish ~$25K over the annual line. To be corrected in the FY2027 budget.
Elevator repairs are $20,883 vs $9,336 budget = ($11,547) over; boiler repairs $15,835 vs $8,000 = ($7,835) over. Note that total R&M is still $15,086 under budget overall — but both lines look like recurring failures worth identifying rather than repeat-repairing.
| Line | YTD Actual | YTD Budget | Status |
|---|---|---|---|
| Pooled Reserve Transfer | $640,000 | $640,000 | On budget |
| SIRS Reserve Transfer | $406,666 | $406,664 | On budget |
| Reserve Interest IncomeBooks show $89,241 received YTD — already 99% of the $90,000 full-year budget at month 8. Additional interest accrues daily in Truist but pays semi-annually, so income lands in lump sums. Full-year projection: $133,849 vs $90,000 budget = +$43,849 surplus. | $89,241 | $60,000 | +$43,849 FY est. |
| Total Reserve Funding | $1,135,907 | $1,106,664 | +$29,243 ahead |
The Association is escalating collections again. Ten case files across eight delinquent units are consolidated into a single, actively managed portfolio, and those files are now moving to a new, more aggressive collections firm. Foreclosure remains authorized on the Association's strongest case — the one matter where the Association controls both the timing and the outcome.
With 90+ day balances up another $14,145 in July to $143,771, the Board is pursuing every available remedy in parallel: foreclosure on the clean case, re-recording of lapsed liens, and amenity suspension under Florida Statute 718.303(4), enforceable through the installed access control system.
Unit-level detail — owners, unit numbers, and case numbers — is intentionally withheld from this posting and is available to the Board in the confidential attorney status report.
The Association's strongest case: a recorded lien, no competing bank foreclosure, and no bankruptcy stay — the one matter where the Association fully controls the timing and the outcome. Foreclosure is authorized and moving forward, and the file transfers to the new, more aggressive collections firm to press it without further delay.
Two delinquent accounts were collected in full. One owner wired the entire balance in June and the funds were disbursed to the Association in July; the second cleared its assessment account in April. Both collection files are closed.
Two units are tied to bank mortgage-foreclosure suits in which the Association is defending its lien position. Both have court hearings calendared in August 2026 — one on a motion to strike, one on summary judgment. New counsel has appeared and is actively litigating both.
Two units sit behind senior first mortgages; one is in Chapter 7 bankruptcy under an automatic stay. Recovery is limited by Florida Statute 718.116 to the statutory “safe harbor.” Counsel is re-recording lapsed liens and monitoring the bankruptcy so no collectible dollar is lost.
/finance/2026-07-23/.