Dear community of Puerto Aventuras:
With the financial statements of September, we close the third quarter of the year. We want to share with you, in simple language, how we expect to close 2026 and what the main expenses of the last three months are. This is a projection: it combines the actual figures from January to September with the already known commitments for October, November, and December. The definitive figures will be those of the audited financial statements that will be presented to the Assembly.
1. In a nutshell
- The day-to-day operation would close the year practically in balance, with a deficit of around $231 thousand pesos, less than 1% of the annual expenditure, if we reach the collection goals we are working on.
- The biggest challenge of the year is the cost of security, around $1.5 million above what was budgeted. Below we explain why.
- The four projects approved by the Assembly in March (Cultural Center, barrier against sargassum, Phase 2 Bike Path, and Main Access) will be completed in 2026. If any investment is not executed before the end of the year, the corresponding amount will be provisioned in the 2026 exercise.
- The Association would close the year with a free reserve of around $5.7 million, equivalent to about 1.7 months of expenditure, and without any bank debt.
- The result depends on the collection. If it continues at the current pace, the deficit would be around $1.5 million. Timely payment makes the difference.
2. The operation of the year versus the budget
The "day-to-day operation" includes everything that keeps Puerto Aventuras running: security, staff, maintenance, lighting, garbage collection, and administration. It does not include special projects, which are paid for with their own extraordinary fees.
| Concept | Budget 2026 | Projection 2026 |
|---|---|---|
| Operating income | $39.5 million | $41.3 million |
| Operating expenses | $38.1 million | $40.3 million |
| Depreciation (accounting charge, not cash outflow) | $1.3 million | $1.2 million |
| Operating result | + $30 thousand | − $231 thousand |
Income would exceed the budgeted amount by about $1.8 million, but expenses would exceed it by $2.2 million. Excluding depreciation, which is an accounting charge and not a payment, the operation would generate around $944 thousand pesos in the year.
3. Where do the resources come from?
| Income | Budget | Projection |
|---|---|---|
| Maintenance fees | $32.9 M | $33.2 M |
| Recovery of fees from previous years | $3.0 M | $3.4 M |
| Construction fees | $1.0 M | $1.3 M |
| Maintenance fee for the sargassum barrier (new since June) | — | $0.9 M |
| Passports, wristbands, and fines | $1.8 M | $1.3 M |
| Leasing and reimbursements | $0.8 M | $1.1 M |
| Total | $39.5 M | $41.3 M |
Maintenance fees are, by far, the foundation of everything: they represent 8 out of every 10 pesos of the operation's income. The recovery of debts from previous years is progressing better than expected, and the sale of passports and wristbands is below budget.
4. What are they used for?
| Operating expenses | Budget | Projection | % of gasto |
|---|---|---|---|
Association staff (10 areas) | $18.8 M | $18.6 M | 46% |
Security (subcontracted service, 24 hours) | $10.8 M | $12.3 M | 30% |
| Maintenance: lighting, streets, garbage, landscaping, pest control, vehicles | $5.0 M | $6.2 M | 15% |
| Administration: accounting, auditing, insurance, banks, offices | $3.5 M | $3.3 M | 8% |
| Total | $38.1 M | $40.3 M |
Security: a cost that fell short in the budget
The annual budget is prepared in November, while the contract with the security company is renewed in March. Therefore, the 2026 budget did not fully reflect the 13% increase in the minimum wage this year, which affects all security companies. The service has remained stable, at around $1.03 million per month. Starting in 2027, there will also be a gradual reduction in the maximum working hours; the Board of Directors will incorporate both effects into the 2027 budget.
Maintenance: lighting and streets
Maintenance spending would close $1.1 million above budgeted amounts. The item that grows the most is public lighting: it would close the year at around $671 thousand compared to $250 thousand budgeted, including an additional maintenance of $320 thousand in this quarter. Pest control and garbage collection also exceed expectations. The paving of streets, at $530 thousand, was indeed included in the budget, which allocated $750 thousand to roadways; with it, the spending on streets for the year would be very close to what was budgeted.
In contrast, personnel and administration spending would close slightly below budgeted amounts.
5. The main expenses from October to December
In the last quarter, the Association will spend around $14.7 million: $10.9 million on operations and $3.75 million to complete community projects.
| Operations | Oct–Dec |
|---|---|
| Personnel: salaries and benefits, including the December bonus (around $656 thousand), which is a legal obligation | $5.0 M |
| Security | $3.1 M |
| Paving of streets | $530 thousand |
| Additional maintenance of public lighting | $320 thousand |
| Insurance renewal and advance of the external audit for the fiscal year 2026 | $175 thousand |
| Year-end maintenance: fumigation and nebulization campaign, materials for trucks and equipment, curb painting and signage, gardening supplies, access plants, electrical materials and camera wiring | $118 thousand |
| Rest of the operation: garbage collection, fuel, electricity, administration, and others | $1.7 M |
| Subtotal operation | $10.9 M |
| Community projectsCommunity | Oct–Dec |
|---|---|
| Cultural Center: palapa works and space improvements | $2.02 M |
| Sargassum barrier: payments to complete the total investment | $1.34 M |
| Bike lane Phase 2: expansion of about 1,100 meters | $201 thousand |
| Main access: completion of the work | $184 thousand |
| Subtotal projects | $3.75 M |
6. Community projects
Special projects are financed with extraordinary fees that are used solely for the purpose for which they were approved. This is how they would stand as of December 31:
| Project | Total investment | Collected from your fee as of Dec 31 | Acollection advance |
|---|---|---|---|
| Sargassum barrier | $6.62 M | $6.49 M | 98% |
| Cultural Center | $2.20 M | $2.02 M | 92% |
| Bike lane Phase 2 | $201 thousand | $188 thousand | 94% |
| Main access (approved fee: $852,600) | $1.45 M | $777 thousand | 91% |
As the works finish before the collection of your fees is completed, the Association will temporarily advance around $400 thousand pesos from its reserve, which will be recovered as the pending fees are paid.
Main access. The total investment will reach $1.45 million, above the $852,600 approved by the Assembly. The difference, of around $597 thousand pesos, will be paid with the Association's reserve. The main reason is that the work covered additional areas and landscaping that were not part of the original scope. Next week we will publish a post on this blog dedicated to explaining this additional investment in detail.
Why will the accounting result for the year look positive?
In the financial statements, the result for the year will be around $5.4 million in favor, because it includes the extraordinary fees collected for the projects. That money is not a surplus available: it is committed to the works. Additionally, the investment in the barrier is recorded as a community asset and not as an expense, so it does not appear in the result even though it is paid.
7. What does the final result depend on?
On the spending side, the commitments for the quarter are already identified. What can change the closing is the collection. We are working on two fronts: recovering around $1.3 million in pending maintenance fees from the second and third quarters, and accelerating the collection of project fees by at least $600 thousand.
| Scenario | Operating result | Free reserve as of 31-Dec |
|---|---|---|
| Collection goals are met | −$231 thousand | $5.7 M (1.7 months) |
| 40% of the goals are met | −$1.0 M | $4.5 M (1.4 months) |
| Collection continues at the current pace | −$1.5 M | $3.8 M (1.1 months) |
The free reserve already discounts what the Association advances to the projects. In all three scenarios, the Association ends the year with its own resources and without bank debt, but the difference between the first and the last is $1.9 million, more than half a month of community operation.
7. What does the final result depend on?
On the spending side, the commitments for the quarter are already identified. What can change the closing is the collection. We are working on two fronts: recovering around $1.3 million in pending maintenance fees from the second and third quarters, and accelerating the collection of project fees by at least $600 thousand.
| Scenarioo | Operating result | Reserva libre al 31-dic |
|---|---|---|
| Collection goals are met | −$231 thousand | $5.7 M (1.7 months) |
| 40% of the goals are met | −$1.0 M | $4.5 M (1.4 months) |
| Collection continues at the current pace | −$1.5 M | $3.8 M (1.1 months) |
The free reserve already discounts what the Association advances to the projects. In all three scenarios, the Association ends the year with its own resources and without bank debt, but the difference between the first and the last is $1.9 million, more than half a month of community operation.
How it can help. Staying current on your maintenance and project fees is what allows you to close the year in balance. When making your transfer, always include your property number in the reference or concept field: it helps us apply your payment correctly.
8. What’s next
- Budget 2027. It will start from the actual cost of security, including the gradual reduction of working hours, and the actual lighting expenses, so that the budget reflects what it costs to operate the community.
- External audit. The financial statements for 2026 will be audited by an independent firm and presented to the Assembly.
- Monthly reports. We will continue to publish each month on colonos.org the actual progress against this projection.
For any inquiries regarding this projection or your account statement, the official channels of the Association are at your disposal. We appreciate, as always, your trust and your participation in the life of our community.
Andrew James Devlyn
Treasurer
Association of Colonists, Owners, and Trustees of Puerto Aventuras, A.C.
