March 2023: Controller’s Report

The Association’s primary sources of operating revenue are from assessments, security contracts, and gate fees. In 2022, the Association managed operating revenues of $9.43 million, operating expenses of $6.1 million, and employed approximately 50 full-time employees.

2022 was another successful year for the Association. Some financial highlights of 2022 are:

  • As of December 31, 2022, NO homeowner assessments were outstanding!
  • The unaudited operating revenue was 3.93% above budget.
  • The unaudited operating expenses were 1.38% under budget.
  • 180 closings occurred in Palmetto Dunes. These closings resulted in Community Enhancement Fees of $1.1 million.

For the year ending December 31, 2022, approximately 37% of the total revenue (does not include unrealized and realized gains) for the Association came from residential assessments. The 63% of other revenue was from a variety of sources.

The three main other revenue contributors are the fees collected at the Pass Office, the commercial assessments charged to the businesses within Palmetto Dunes, and the Community Enhancement Fee. Total operating expenses (excluding depreciation) were approximately $6.1 million. These expenses are comprised of a variety of items, but the most significant items are:

  • Salaries & Related Payroll Expenses – $3,430,000
  • Insurance – $724,000
  • Landscape & Grounds – $283,000
  • Professional Fees – $269,000
  • Dunes Buggy – $270,000

The Association will continue to strive to be one of the best residential resort communities. Over the next several years, Management, the Finance Committee, and the Board of Directors will strive to accomplish this through the following:

  • Building a strong engaged community
  • Modernizing Infrastructure
  • Building beneficial relationships with commercial partners
    Enhancing stewardship to increase sustainability
  • Over the next several years, I look forward to working with Management, members of the Finance Committee and the Board of Directors on making Palmetto Dunes a wonderful place to live, vacation and work.

— Matt Nemes, Controller