Through May 31, 2026 · Month 6 of 12
Cash is at $5.16M, up another $118K. Reserves climbed to $4.33M. May was the strongest month of FY2026 with $4,686 net income. New insurance is now confirmed, the YTD shortfall is narrowing, and the projected year-end surplus is around $85,000 on a budget that was set for breakeven.
Total cash is now $5.16M with reserves at $4.33M and growing every month. May's net income of $4,686 is the best of FY2026 and trimmed the YTD shortfall to ($23,591). New insurance saves us about $53K a year, our bond portfolio is paying roughly 48% more interest than budget, and the year still projects to a ~$85,000 surplus versus a breakeven budget.
One item remains overdue for Board action: three units now owe $108,384 in 90+ day balances, growing $5–6K a month. Legal escalation needs authorization tonight.
The 2025 audited financial statements were received and adjusting entries posted in May 2026. This affects several May line items including income taxes (reversed $9,245), bad debt allowance (increased to $55,791), prior year expense (reversed $10,669), and fund balance (adjusted down $55,389). These are accounting corrections, not operational changes.
Budget called for breakeven. Insurance savings and reserve interest remain the main positive drivers. Trash and water are running over budget and have pulled the projected surplus down from last month's ~$120K view, but the year still finishes comfortably in the black.
$133,849 ÷ 396 units = $338.00 per unit per year. Investment-grade corporate bonds pay semi-annually, so the income arrives in lump sums — full-year run-rate is locked in. The $43,849 above budget is roughly $110.73 per unit of pure surplus the FY2026 budget did not assume.
| Metric | Dec | Jan | Feb | Mar | Apr | May |
|---|---|---|---|---|---|---|
| Net Income / (Loss) | ($26,579) | $870 | ($2,694) | ($556) | $682 | $4,686 |
| Operating Cash | $661,033 | $543,749 | $507,125 | $460,996 | $471,510 | $454,695 |
| Reserve Cash | $3,670,931 | $3,846,872 | $3,956,632 | $4,061,059 | $4,198,222 | $4,331,056 |
| Total Cash | $4,704,522 | $4,763,179 | $4,836,314 | $4,894,613 | $5,040,290 | $5,158,309 |
| Insurance (mo.) | $63,977 | $85,350 | $62,684 | $70,168 | $65,690 | $42,096 |
| Reserve Interest (mo.) | $7,694 | $6,143 | $1,364 | $151 | $25,298 | $14,699 |
May insurance came in at $42,096 — the first full month of the new property policy ($264K/yr). Down from the $63–85K range in prior months. Combined with the D&O/Liability package, full year projected at $622,003 vs $675,000 budget.
VFD systems on AC equipment and domestic water pumps continue to deliver consistent monthly savings. Running $49,889 below the $165,000 YTD budget through May. Management is working with Maintenance Supervisor Julio on garage lighting upgrades as the next savings opportunity.
The $10,669 that had sat on the books since December with no explanation was reversed in May as part of the 2025 audit posting. YTD is now $0. Issue is closed.
888 Coin LLC (2305N), RKMO LLC (1101S), Hilda Hall (0801N). 90+ day balance grew from $102,832 in April to $108,384 in May — up $5,552. Total A/R at $113,681. Legal escalation requires board authorization tonight.
YTD $63,701 vs $49,998 budget. May alone was $12,684 vs $8,333. City rate increase is confirmed but the gap is widening every month. Contract review needed — at the current pace we will finish $25K+ over the $100K annual budget.
May came in at $56,361 vs $44,167 budget — better than April's $81K spike but still elevated. YTD ($21,535) over. A utility invoice allocation issue partially explains this; management is tracking the line separately going forward.
| Line | YTD Actual | YTD Budget | Status |
|---|---|---|---|
| Pooled Reserve Transfer | $480,000 | $480,000 | On budget |
| SIRS Reserve Transfer | $305,000 | $304,998 | On budget |
| Reserve Interest IncomeBooks show $55,350 received. About $32,500 more is accrued in Truist but not yet paid out. Bonds pay semi-annually, so income arrives in lump sums. Full-year projection: $133,849 vs $90,000 budget = +$43,849 surplus. | $55,350 | $45,000 | +$43,849 FY est. |
| Total Reserve Funding | $840,349 | $829,998 | +$10,351 ahead |
/finance/2026-05-28/.