6/25/2021
May 2021
Treasurer’s Report
UNAUDITED CCHOA RESULTS:
The unaudited month ending results for the CCHOA through May 2021 and the 11th month of the 2020/2021 year are enclosed for your review. The combined balance is $7,603,082.82. The reserve balance is less than the balance for April 2021 which was $7,869,331.80. The reserve balance is more than the balance for May 2020 which was $7,348,878.62. The reserve balance for May 2019 was $7,656,494.95, and the balance for May 2018 was $4,051,747.20. A major roofing project in Mardi Gras, tennis court renovation in Mardi Gras/Port Royale, maintenance building renovation, electrical pedestal replacement, and building renovations in Kingston continue to affect reserves. The General Manager, Facilities Manager and the Directors are continuing to review all reserve categories in order to facilitate maintenance needs as they arise. The CCHOA Board budgets reserves at a 50% funding level, which means that all villages must maintain this level. Should any village fall below this level, the village will need to adjust their annual dues structure or request a vote for a special assessment in that village. The Board regularly reviews monthly expenses, and remains concerned about adequate funding for all of the villages so that maintenance will not be deferred unless no alternatives exist.
INDIVIDUAL VILLAGE RESULTS:
Individual villages’ exceeding expenditures over that which was budgeted are reported by monthly overages and by “year to date” overages. This can vary. Every director makes every effort to stay within 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. Where overages occur, the directors do meet with the general manager to ascertain what type of expense has occurred and if next years’ budget needs to be adjusted or if the expense was a one time event. Of course where possible adjustments in other categories may be made. One expense that occurs in many villages that could not be avoided and was not budgeted for is the pool monitoring expense which was $80,000 over the budget. The pool monitoring ended on May 15, 2021.
Currently 6 villages have expenditures over their budgeted monthly amounts, while 7 villages are over in their year-to-date budgeted amounts. The below villages have the categories listed where the amounts exceeded the funds budgeted. The categories only list the more significant amounts.
Green Turtle-Monthly-Plants and water. Year to date-Sprinkler parts, and water.
Antigua-Monthly-outside contractors, pool monitoring and earthquake policy. Year to date-within budgeted amount.
Trinidad-Monthly-sprinkler parts, gas/electricity and pool monitoring. Year to date- sprinkler parts and pool monitoring.
Kingston-Monthly-gas/electricity, outside plumbing, pool monitoring and earthquake policy. Year to date- sprinkler parts, outside plumbing, outside contractors, pool monitoring and earthquake policy.
Montego-Monthly-plants, outside contractors and pool monitoring. Year to date-general maintenance supplies, plants, water, outside contractors, outside plumbing and pool monitoring.
Blue Anchor-Monthly-within budgeted amount. Year to date-water and sprinkler parts.
Port Royale-Monthly-maintenance wages, sprinkler parts, gas/electricity and pool monitoring. Year-to-date maintenance supplies and wages, sprinkler parts, water and pool monitoring.
Mardi Gras-Monthly-plants, gas/electricity, outside contractors and pool monitoring. Year to date-within budget.
The Financial results will be available for homeowners following the June Board meeting on June 24, 2021 at 2:00pm. You are invited to attend the meeting. An electronic copy of the financial information for the CCHOA will be available by calling the Cays office at 619-423-4353.
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 provides guidance on the most appropriate investment opportunities available to the CCHOA considering safety first with yield second. Currently the CCHOA has investments in CDs and T-Bills. Additionally, the CCHOA Board has approved investments in government notes and securities and AAA Municipal Bonds when investment opportunities are available. An investment ladder is maintained so that maturing investment funds are available for reserve expenses. Currently, very short term rates are less than .03%. The F.O.M.C. (Federal Open Market Committee) left rates unchanged at their recent meeting this week. They did shorten the time frame when rates may be increased. The current Prime Rate is 3.25%
Respectfully,
Bob Rood, CCHOA Treasurer