Through August 31, 2026 · Month 9 of 12
Cash and reserves both grew in August. The operating loss still deepened, and the reason is now identified: the City replaced our water meter on May 22 and billed usage more than doubled that day. Without water, August would have posted roughly a $10,000 profit. The association is healthy. One mis-reading meter is turning the year into a loss.
Total cash rose to $5.23M and reserves grew $115,446 in a single month to $4.35M. August still posted a ($17,687) loss and the year to date stands at ($50,648). Water alone was ($28,038) over budget in August. Strip water out and August made about $10,000. Insurance is saving $14,963 every month, electricity is $46,755 under budget on the VFD systems, and gas is $24,030 under.
Two items need Board action. The water meter case is with the City and is worth roughly $160,000 to the year depending on their decision. Delinquencies over 90 days climbed again to $160,517, and those files are moving to new counsel.
Earlier reports added the reserve interest surplus to the projected year-end result. That was wrong. Reserve interest posts as revenue and an equal transfer to reserves, so the two cancel and net income is unchanged. Reserve interest is a genuine win, but it is a reserve funding win only. The projections shown on this page have been rebuilt without it, and the earlier surplus figures are not carried forward.
The City of Sunrise replaced our water meter on May 22, 2026. The bill covering May 7 to June 5 was read on both meters. The old meter read 120 gallons per unit per day. The new meter read 258. The rate doubled on installation day and has stayed there. Every read since is coded “Actual,” meaning the figures come from the device itself, not an estimate.
Nothing else changed. Hot water gas use over the same 92 days rose 4% while water rose 86%. If the water were real, it would take a continuous leak of 32 gallons per minute, the equivalent of 234 toilets running without stopping, invisible to staff and to every resident.
| Bill period | Extra gallons | Water & sewer billed | Above normal |
|---|---|---|---|
| May 7 to June 5Read on both meters. The first 15 days ran on the old meter, so this bill understates the effect. | 0.96M | $45,868.77 | $12,306 |
| June 5 to July 8 | 1.80M | $57,185.77 | $18,994 |
| July 8 to August 7 | 1.54M | $52,930.58 | $18,211 |
| Total · 92 days | 4.3M | $155,985 | $49,511 |
A neighbouring 263 unit building on the same City system ran flat all year at 61 to 72 gallons per unit per day. Same city, same weather, same summer. Our figure tripled theirs only after the meter change.
The full evidence package has been delivered to City of Sunrise Utility Finance. The association has asked the City to field test the meter, confirm its size, type, multiplier and register configuration, and audit the reads taken at the swap. If the meter is found reading high, the association should receive a rebill and a credit.
Three months remain. Every other driver is the same in both columns. The only variable is water: whether the association keeps paying roughly $28,000 a month above budget, and whether the $49,500 already overcharged comes back. That single decision is worth about $164,000 to the year. Reserve interest is excluded from both figures because it nets to zero against net income.
| Metric | Dec | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug |
|---|---|---|---|---|---|---|---|---|---|
| Net Income / (Loss) | ($26,579) | $870 | ($2,694) | ($556) | $682 | $4,686 | $4,792 | ($14,162) | ($17,687) |
| Operating Cash | $661,033 | $543,749 | $507,125 | $460,996 | $471,510 | $454,695 | $593,714 | $535,791 | $507,078 |
| 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 | $4,347,224 |
| 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 | $5,227,860 |
| Insurance (mo.) | $63,977 | $85,350 | $62,684 | $70,168 | $65,690 | $42,096 | $39,956 | $41,287 | $41,287 |
| Water & Sewer (mo.) | ~$37,000 | ~$37,000 | ~$37,000 | ~$37,000 | $81,000 | $56,361 | $64,523 | $75,846 | $72,205 |
The new policies post at $41,287 a month against a $56,250 budget. The YTD overage is down to only ($6,245) as the old high property rate washes out of the numbers. Full year projects to about $636,356 against a $675,000 budget, roughly $38,600 saved. Corrected from earlier reports, which estimated $39,162 a month and about $53,000 in full-year savings.
The variable frequency drives on the AC equipment and domestic water pumps continue to deliver, against a $247,500 budget. August ran $2,307 over on summer peak, which is expected. A garage lighting upgrade is the next efficiency project.
The bond portfolio has earned $98,399 against a $90,000 annual budget with three months still to run, projecting to about $133,849. Reserves grew $115,446 in August alone. This strengthens reserves. It does not change net income: the interest posts as revenue and as an equal transfer to reserves, and the two cancel.
Revenue beats budget by $35,245 YTD on late fees (+$5,337), late fee interest (+$9,559) and administrative fees (+$5,685). Gas is $24,030 under budget. EV charging caught up in August with a $13,635 posting and is now on budget after running behind all year.
YTD $499,112 against a $397,503 budget. The full-year budget is $530,000 and only about $30,900 of it is left with three months to run. The cause is the meter, not consumption. The August statement also carries a $116,721 water accrual.
Up again in August, from $143,771 in July. Maintenance fees over 90 days are $129,964 and total accounts receivable is $159,697 net of prepaid credits. Files are moving to new and more aggressive counsel. Legal fees are $10,654 under budget, so there is room to fund the effort. See Section 09.
YTD $94,326 against a $74,997 budget. A confirmed City rate increase that the budget never captured. It is most of the $27,349 contracts overage. To be corrected in the FY2027 budget.
Salaries ran $102,201 in August against $94,917. Part of the month was estimated, and staffing for residents' private events is coded here. Management will reclass event staff next month, but a reclass moves cost rather than removing it: Social Committee has only $1,890 left and Social Events is already $591 over. Staff for private events should be billed back to those residents. Boiler ($8,145) and elevator ($10,380) repairs are both over and under review for reserve eligibility.
| Item | August | Assessment | Changes net income? |
|---|---|---|---|
| ContingencyInvoices awaiting approval were parked here and will be recoded to their proper lines next month. | $7,650 | Timing and coding. The cost moves to other lines. | No |
| Fire Alarm SystemJuly and August both posted in August, and an accrual reverses next month. | $6,232 | Confirmed: July showed only $178. The run rate of $3,205 a month against a $2,833 budget is about $4,500 a year over and belongs in the FY2027 budget. | Partly |
| R&M GateTwo repairs were resident caused and the residents paid; the offset posts as income. | $3,705 | Not visible yet. House Charges income is only $175 YTD. Verify next month. | Yes, once posted |
| Board takeaway | — | Most variances are timing and coding and clean up next month without changing the bottom line. The real drivers remain water and delinquencies. | — |
| Line | YTD Actual | YTD Budget | Status |
|---|---|---|---|
| Pooled Reserve Transfer | $720,000 | $720,000 | On budget |
| SIRS Reserve Transfer | $457,500 | $457,497 | On budget |
| Reserve Interest Income$98,399 earned against a $90,000 full-year budget, with three months still to run. Projects to about $133,849. Balance sheet: SIRS reserves $4,048,310, SIRS interest $89,797, pooled $213,957. | $98,399 | $67,500 | +$30,899 |
| Total Reserve Funding | $1,275,899 | $1,244,997 | +$30,902 ahead |
Ten case files across eight delinquent units are consolidated into a single actively managed portfolio, and those files are moving to new and more aggressive counsel. Foreclosure remains authorized and proceeding 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 $16,746 in August to $160,517, the Board is pursuing every 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. Legal fees are $10,654 under budget, so the collections effort can be funded without a budget amendment.
Unit level detail, including 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. It is the one matter where the association fully controls the timing and the outcome. The file transfers to new counsel 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 files are closed.
Two units are tied to bank mortgage foreclosure suits in which the association is defending its lien position. Counsel has appeared and is actively litigating both.
Two units sit behind senior first mortgages and 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/2026-08-27/.