Master Association Finances by Mike Dings

MASTER ASSOCIATION FINANCES

Mike Dings, Treasurer

Desert Mountain Master Association

As we begin 2021, I would like to take a few minutes to tell you what a terrific financial year 2020 was for the Desert Mountain Master Association (DMMA) and the unincorporated villages in our community despite the COVID pandemic. While final audited figures will not be available until the late spring of 2021, the Master Association is expected to have excess revenue over expenses of almost $70,000, and this is after contributing $600,000 into our longterm reserves. This financial performance was driven primarily by a September surge in Design Reviewrelated income. The management team also focused on efficiency and effectiveness, so the cost equation side also came in much better than plan.

All of our 19 unincorporated villages were materially on plan or in line with adjusted expectations. Several villages operated slightly above budget due to repairs and higher than anticipated water usage during some unusually warm days. All the villages are in good financial shape with sufficient funds for operating expenditures.

Despite the fact we plan to spend over $200,000 of reserve money in 2021, mainly on road improvement capital projects, we expect to end 2021 with reserves of over $6.3 million. This is a substantial reserve balance, but with the potential rebuilding of Desert Mountain Parkway being required sometime in the next 45 years, and the decrease in interest income, we believe a reserve account of this magnitude is prudent. Preparing the Master Association budget for 2022 has already begun with the review of major vendor contract costs. During our July Board meeting, the DMMA board will first review the 2022 proposed Master Association budget. The Board will do its second review of the 2022 proposed Master Association budget at its meeting in August and the first review of the 19 unincorporated village budgets. The final vote by the DMMA Board on all budgets for the fiscal year 2022 will occur in September.

The DMMA is on track in 2021 for another successful financial year. We offer a special thank you to all the volunteer residents who donate their time to improving the community for all residents.

We are always available for comments or questions. Please do not hesitate to contact Kevin Pollock, Executive Director, Stephen Prall, Community Manager, or me, Mike Dings at mdings@desertmthoa.com.