3/26/2021
February 2021
Treasurer’s Financial Report
UNAUDITED CCHOA RESULTS:
The unaudited month ending results for the CCHOA through February 2021 and the 8th month of the 2020/2021 year are enclosed for your review. The combined balance is $8,028,693.28. The reserve balance is more than the balance for January 2021 which was $7,690,700.21. The reserve balance for February 2020 was $7,658,873.47. The reserve balance for February 2019 was $7,509,355.32. The reserve balance for February 2018 was $5,007,500.72. The General Manager and Directors are continuing to review all reserve categories to bring up-to-date values to each of the components. The Board’s goal is to have each of the components have a realistic reserve life attached with a better understanding regarding the various components. The Finance Committee, the CCHOA Board and the General Manager are continuing to establish a more appropriate reserve funding goal with regard to future funding. The CCHOA Board will ultimately decide how to address future funding as to whether the goal remains at a 50% funding level, aims for fully funded, remains at adequately funded or 100% funding over the next several years. However the CCHOA Board addresses the funding level, the Board, the General Manager and the Facilities Manager intend to avoid deferred maintenance, whenever possible.
INDIVIDUAL VILLAGE RESULTS:
Currently Jamaica, Antigua, Bahama, Montego and Mardi Gras had expenses within their budgeted amounts. Additionally, five villages had higher expenses than that which was budgeted. In Common, landscape and other member services had higher expenses while maintenance and administration had expenses below that which was budgeted. As mentioned in previous Treasurer’s reports, individual villages and Common make every effort to stay in the budgeted amounts but at times emergencies or non-negotiable expenses occur and the funds must be allocated whether they are within the budget or not. Each budget year every effort is made to adjust the budgets to reflect areas where expenses are increasing. During most of the pandemic, two pools were kept open to be shared by 8 villages with pools. Last month, the Mardi Gras/Port Royale pool was closed due to very little use and the significant expense of having a required pool monitor and regular sanitizing of the facilities. The expense to meet these new requirements was not budgeted for in the 8 villages. It is expected that additional pools will reopen with the increased use of the Trinidad/Kingston pool and warmer weather. For individual results, please contact the CCHOA Office (619-423-4353) after the March 25, 2021 Board meeting and request an electronic copy of the CCHOA financial report. The March 25 Board Zoom meeting is open to Cays homeowners and you can get an access code by calling the Cays Office.
The below list highlights the more significant expenses over the budgeted amounts:
Common-safety, water, sewer drain fees, marine policy, sprinkler parts, and tree removal.
Green Turtle-sprinkler parts and water.
Trinidad village- sprinkler parts and the pool monitoring.
Kingston village-general maintenance supplies, outside plumbing, termite work, monitoring the pool and earthquake policy.
Blue Anchor-sprinkler parts and water.
Port Royale-maintenance wages, general maintenance supplies, sprinkler parts, water and pool monitoring.
INVESTMENT RESULTS:
The CCHOA Board, General Manager and the Finance Committee regularly monitor investment rates in an effort to find the most secure rates available to the CCHOA. Wells Fargo Advisors regularly advises the CCHOA on the most appropriate investment opportunities available to the CCHOA considering safety first with yield second. Currently the CCHOA invests in CDs, T-Bills, Notes, Government-oriented Securities and Municipal Bonds (rated AAA by Moodys and Standard & Poors). An investment ladder is maintained so that maturing investment funds are available for reserve expenses. At this week’s FOMC meeting the Feds chose to leave rates where they currently are with later comments that they do not expect inflation pressures until 2023. The CCHOA’s investment ladder is not investing heavily out to the approved 5 years in case inflation pressures cause interest rates to increase sooner than expected. T-Bill short term rates dropped this week to .002%. Occasionally there are teaser rates advertised that are higher, but these generally are not available to the CCHOA. The Prime Rate remains at 3.25%
Respectfully,
Bob Rood, CCHOA Treasurer