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September Treasurer's Report

September 2019 - Treasurer’s Financial Report

UNAUDITED CCHOA RESULTS: The unaudited month ending results for the CCHOA for the September 2019 and the third month of the 2019/2020 year are enclosed for your review. The combined Reserve account is $7,546,610.70. The Reserve balance is slightly more than the balance for August 2019 which was $7,506,923.71. The Reserve balance is also more than the balance for September 2018 which was $7,085,652.63. The Reserve balance for September 2017 was $7.545,921.71. The Reserve balance for September 2016 was $8,406,326.20, September 2015 was $7,464,617.61 and September 2014 it was $6,787,437.00. Although CCHOA revenue has increased, expenses have also increased. As previously mentioned in the Treasurer reports, the CCHOA is undertaking two major maintenance projects this year that will affect Reserves over the short term. Following the completion of the projects, Reserves will potentially increase over the next year. All Villages must be at a Reserve funding level of 50% by the year 2023/2024 and 100% over the next 30 years. 

INDIVIDUAL VILLAGE RESULTS: Currently all villages are within the budgeted expenses for each individual village. Over the past several months it has been difficult for villages to remain in the budgeted amounts due to emergency situations and increases in certain mandatory services. Staff and your village Directors are committed to budgeting for the services that each village needs, with a continuing effort to monitor expenses as necessary.

INVESTMENT PLANNING: The current investment rationale centers on some investments remaining short term in order to meet funding expenses for the above mentioned significant maintenance projects. Over the last couple of years the CCHOA was keeping investments very short term to take advantage of the increasing rate environment. The CCHOA investment rationale changed last February as the Board was anticipating a future Prime Rate reduction and the FOMC (Federal Open Market Committee) did drop rates for the second time this year on September 18 (the first was July 31). The Board is still anticipating continuing rate decreases over the next several months and more than likely will continue to move some investments out for a longer period of time while continuing to monitor the interest rate environment. The next potential rate decrease may occur on October 30. The CCHOA currently invests in T-Bills and CDs. There are other investment vehicles available but they come with a risk to Reserves. The Prime Rate is currently 5.00%.

Bob Rood, CCHOA Treasurer