ASSOCIATION PRESIDENT

FINANCIALS:

The Dobson Association income and expense statement ending December 31, 2024 was positive, with $123,942.69 income after Fund Transfers of $500,000 to our Reserve Fund and $20,000 for our Arizona Department for Water Conservation ( ADWR ) allocation.

Collection fee income contributed $147,199.92 versus a budget of $30,000.00.

On the Expense side, our Collections Legal expense was $71,358.90 through September 2024 before City Property. These legal expenses were reduced drastically to $3,074.00 from October through December. The Board hired City Property and adopted an intervening step in the Collection Policy by using Small Claims court prior to retaining a lawyer to work with homeowners who are delinquent and reduced attorney’s fees.

Our Utilities Expense was $340,425.79 vs a budget of $301,799.00, a 12.5% negative variance vs. budget.

COMPLIANCE:

Compliance violation notices increased from an average of 295 per month prior to City Property and has increased to 648 per month.

RESERVE STUDY:

Our largest upcoming reserve expense, Lake 7 & 8 lake edge replacements has no cost basis in our reserve study,

““Comments: Edges at lakes 7 & 8 are reportedly breaking apart and need to be replaced. It is unknown if the entire perimeters of both lakes need to be replaced or just portions. There are no estimates of cost or scope of work at this time, so this budget line item will need to be revised as more information is obtained. Funding allowance for this component is based on replacing 50% of the lake perimeters at 25% annually over 4-years. “

The actual cost is being investigated to ensure we are funding our future accurately.

Cost Savings

By integrating our Systems and Processes into one platform, headcount reductions, and hiring City Property, significant savings of over $383,000 have been taken out of the 2025 budget.

The Board continues to review vendor contracts and expenses to further reduce our operating and reserve expenses.

Thank you to our Volunteers, Committees, Clubs, Staff, City Property and fellow Board members for the achievements and results in 2024 and navigating the challenges of 2025.

-Association President, Sam Javelosa