Coronado Cays HOA - Announcements

Treasurer's Report

10/12/2018

UNAUDITED CCHOA RESULTS

September 2018 Treasurer's Financial Report

The unaudited month ending results for the CCHOA for September 2018 and the 3rd month of the 2018/2019 year are enclosed for your review. The combined Reserve account is $7,085,652.63 (as mentioned in the July and August 2018 reports the Reserves have started increasing due to loan repayments from Antigua and Montego). The Reserve balance is less than the balance for September 2017 which was $7,545,921.71, and for September 2016 it was $8,406,326.20. The Reserves should continue to increase as the loan repayments from the two Villages are added to the Reserves as well as all of the villages will continue to add to their Reserves, as the CCHOA nears the 2023/2024 year where all Villages are required to maintain 50% Reserve funding as a result of an earlier Board Resolution. As previously indicated the Reserves should steadily increase over the next 30 years as the CCHOA strives for 100% Reserve funding. It is your Board's commitment that Reserves be adequate to insure that deferred maintenance is not a consideration.

INDIVIDUAL VILLAGE RESULTS

Currently 8 Villages had higher expenses than that which was budgeted. Water was the basic culprit for the over expenditures. The 8 Villages also had various overages such as, gas/electricity, termite work, sprinkler parts, sewer/storm drain fees, and outside contractors. Kingston and Montego are the two Villages that had expenses under that which was budgeted. These two Villages were also over in the water category but overall within the total budgeted amounts.

A more detailed accounting can be requested from the CCHOA office. The Finance Committee, the CCHOA Board, as well as staff are concerned with remaining within the scope of the budgeted amounts but realize that water has been a source of consternation. Various corrective actions are regularly discussed.

INVESTMENT PLANNING

The Finance Committee and the CCHOA Board continue to monitor investments to insure that the investments are as safe as currently possible. The first criteria is safety with yield second. The current investment rationale centers on a laddered approach to investing with a current one year goal. There have been 8 rate increases since December 17, 2015. The latest occurring on September 26, 2018, which brought the Prime Rate to 5.25%. Information indicates that there may be at least one more increase this year on either November 8 or December 19. In addition, there is a potential for 3 more rate increases in 2019 and 1 in 2020. If this is the case the CCHOA will be financially ahead remaining with a short term laddered approach. Should the FOMC (Federal Open Market Committee) not raise rates it is presumed the Finance Committee and CCHOA Board will begin to move investments out 2, 3 or 4 years (only 25% of CCHOA Reserves can be invested out 4 years).

Respectfully,

Bob Rood, CCHOA Treasurer