Summary
This document is the year-end financial report for Prestonfield HOA for calendar year 2025, produced by Association Partners, Inc. on February 23, 2026. It consists of a cover letter from API to homeowners and two income statements: an Operating Income Statement and a Reserve Income Statement, both covering January 1 – December 31, 2025.
The Operating Statement shows total operating income of $93,074.95 against a budget of $76,173.00, a favorable variance of $16,902. Total operating expenses of $91,964.33 were $15,791 over budget, primarily due to collections-related legal and mailing costs that are self-financing (legal fees fully offset by chargebacks to delinquent owners). Net income for the year was $1,110.62.
The Reserve Statement shows $7,799.00 transferred in from operations and $7,971.97 in reserve interest income, for a net reserve gain of $15,770.97 in 2025. The strong interest income implies an invested reserve balance of approximately $185,000–$195,000 — the first quantitative estimate of reserve fund size available in any ingested document.
Key Provisions
- Owner assessments collected: $75,204.33 vs. budget $68,374 — better-than-expected collection rate
- Legal Chargeback income: $13,836.05 — attorney fees billed directly to delinquent owners, fully offsetting the $13,836.05 in Owner Legal Fees expense; net cost to HOA = $0
- Reserve interest income: $7,971.97 — unbudgeted; implies invested reserve balance of ~$185,000–$195,000
- Mailing/printing costs: $7,904.16 vs. $3,000 budget (+$4,904) — reflects certified mail campaign to delinquents and eviction proceeding notices
- Net income: $1,110.62 (vs. $0 budget)
- Other Income: $3,025.00 — source unidentified in this document (see Notable Details)
Operating Income Statement
| Line | Description | Actual | Budget | Variance |
|---|---|---|---|---|
| 6101-00 | Owner Assessment | $75,204.33 | $68,374.00 | +$6,830.33 |
| 6101-01 | HO Reserve Assessment | $0.00 | $7,799.00 | -$7,799.00 (tracked in Reserve Statement) |
| 6110-00 | Late Fees | ($50.00) | $0 | — (refund/credit) |
| 6110-01 | Late Interest Fee | $1,019.57 | $0 | +$1,019.57 |
| 6120-00 | Returned Check Charge | $40.00 | $0 | — |
| 6140-00 | Legal Chargeback | $13,836.05 | $0 | +$13,836.05 |
| 6210-00 | Other Income | $3,025.00 | $0 | +$3,025.00 |
| Total Operating Income | $93,074.95 | $76,173.00 | +$16,901.95 |
Operating Expense Statement
| Line | Description | Actual | Budget | Variance |
|---|---|---|---|---|
| 7020-00 | Misc Administrative | $232.52 | $100.00 | ($132.52) |
| 7030-01 | Tax Preparation | $3,350.00 | $2,000.00 | ($1,350.00) |
| 7030-03 | Annual Report/Taxes Paid | $1,206.00 | $0 | ($1,206.00) |
| 7080-00 | Management Contract | $15,262.48 | $15,262.00 | ($0.48) |
| 7090-00 | Mailings, Printing, Copy | $7,904.16 | $3,000.00 | ($4,904.16) |
| 7100-01 | Legal Fees – Corporate | $3,634.37 | $500.00 | ($3,134.37) |
| 7100-03 | Legal Fees – Owner | $13,836.05 | $0 | ($13,836.05) |
| 7150-01 | Insurance Premiums | $4,538.86 | $6,077.00 | +$1,538.14 |
| 7180-03 | Social Event | $870.12 | $3,000.00 | +$2,129.88 |
| 7180-04 | Office Supplies | $0 | $100.00 | +$100.00 |
| 7250-01 | Bank Fees | $7.25 | $0 | ($7.25) |
| 7330-00 | Bad Debt Expense | $913.80 | $200.00 | ($713.80) |
| 7740-04 | Deck/Balcony/Fence | $0 | $1,000.00 | +$1,000.00 |
| 8110-00 | Landscape Contract | $17,424.00 | $16,735.00 | ($689.00) |
| 8110-05 | Landscape – Cost Share | $456.00 | $0 | ($456.00) |
| 8120-06 | Landscape – Other | $5,647.12 | $8,000.00 | +$2,352.88 |
| 8280-00 | Lake/Pond – Dam Maintenance | $8,256.15 | $9,000.00 | +$743.85 |
| 8485-00 | Ground Misc. | $0 | $300.00 | +$300.00 |
| 8710-00 | Contingency Expense | $0 | $2,000.00 | +$2,000.00 |
| 8810-00 | Electric | $626.45 | $1,100.00 | +$473.55 |
| 9010-01 | Reserve Contribution Monthly | $7,799.00 | $7,799.00 | — |
| Total Operating Expense | $91,964.33 | $76,173.00 | ($15,791.33) | |
| Net Income | $1,110.62 | $0 | +$1,110.62 |
Reserve Income Statement
| Line | Description | Actual |
|---|---|---|
| 9021-05 | Reserve Funding Monthly (transfer from operations) | $7,799.00 |
| 9030-01 | Reserve Interest Income | $7,971.97 |
| Net Reserve | $15,770.97 |
Topics Covered
hoa-annual-finances, assessment-structure, assessment-collection-policy, fisher-burton
Notable Details
- Legal fees net to zero: Legal Chargeback income (6140-00) exactly matches Legal Fees – Owner (7100-03) at $13,836.05, confirming that all collections-related attorney fees were billed back to delinquent owners.
- HO Reserve Assessment shows $0 actual (vs. $7,799 budget): This is an accounting presentation choice — the $7,799 reserve contribution flows through the Reserve Statement, not through the operating income line. No shortfall.
- “Other Income” of $3,025.00 (line 6210-00): Source unidentified in this document. Possible sources include cost share reimbursement, insurance recovery, or a settlement payment.
- Reserve interest income of $7,971.97: At approximately 4.25% CD yield, this implied an invested reserve balance of roughly $185,000–$195,000. Updated: The March 2026 balance sheet (financial-report-2026-03) confirms the actual total reserve balance as $270,599.93 — substantially higher than this estimate.
- Landscape Contract of $17,424.00: Updated: Confirmed as the Fisher Burton landscape maintenance contract (common areas, multi-year through November 2027). Fisher Burton holds two separate contracts; the mulching scope was discontinued in July 2025 (replaced by Yellowstone Landscape), but the landscape maintenance contract remains active. Source: board-packet-2026-05-07
- API contact info confirmed: Cover letter confirms address as 25W560 Geneva Road, Box 16, Carol Stream, IL 60188-2231; phone (630) 653-7782; fax (630) 653-6894; www.associationpartners.org.