9/24/2021
August 2021
Treasurer’s Report
UNAUDITED CCHOA RESULTS:
The unaudited month ending results for the CCHOA through August 2021 and the 2nd month of the 2021/2022 year are enclosed for your review. The combined balance is $7,563,221.91. The reserve balance is more than the balance for July 2021 which was $7,547,102.56. The reserve balance is more than the balance for August 2020 which was $7,676,550.44. The reserve balance for August 2019 was $7,506,923.71, and the balance for August 2018 was $6,845,106.05. Reserves will continue to be affected due to a major roofing project in Mardi Gras as well as updated painting, Antigua maintenance and reserve projects, Common area renovations, and continuing maintenance in Kingston. 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. Water continues to affect monthly expenses.
Currently 6 villages and Common have expenditures over their budgeted monthly amounts, and the same 6 villages and Common are over in their year-to-date budgeted amounts. Bahama, Port Royale, Mardi Gras and Montego have exceeded their monthly and yearly to date budgeted amounts in water. The General Manager is reviewing the water usage with Park West Landscaping company. The more significant overages are listed for each village and common.
Bahama exceeded the monthly budgeted amounts in water and pool supplies. In year to date, the budget for water was exceeded.
Trinidad exceeded the monthly and yearly budgeted amounts in maintenance employee burden.
Montego exceeded the monthly budgeted amounts in water, administrative expenses, maintenance wages and burden. In year to date the amount budgeted for water, administrative expenses and maintenance burden were exceeded.
Blue Anchor exceeded the monthly budgeted amounts and year to date in miscellaneous admin expense.
Port Royale exceeded the monthly budgeted amounts and year to date in water.
Mardi Gras exceeded the monthly budgeted amounts and year to date in water and sprinkler parts.
Common exceeded the monthly and year to date in outside contractors, maintenance supplies, maintenance tools, maintenance burden, boat maintenance, legal fees, and trash removal.
The CCHOA Financial results will be available for homeowners following the Board Meeting on September 23, 2021 at 2:00pm. This is a zoom meeting this month. Homeowners are always welcome to attend Board meetings and an access code can be obtained by calling the Administrative Office-619-423-4353. Homeowners can also call this same number for the detailed electronic financial report.
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 come due each month through October 2022. $1.300,000 comes due in 2023 and $850,000 comes due in 2024. Currently, very short-term rates have risen slightly. The F.O.M.C. (Federal Open Market Committee) left rates unchanged at their last meeting in July and they will again meet September 21-22. Since Jan 1, 2021, the CCHOA has earned $24,931 on investments. The current Prime Rate is 3.25%
| August | August | % | August | August | % | |||
| COMPILATION | Actual | Actual | change | Actual | Budget | change | ||
| Cash | 137,393.57 | 28,826.91 | -79.02% | |||||
| Revenue | 692,184.77 | 708,861.78 | 2.41% | 708,861.78 | 697,498.70 | 1.63% | ||
| Expense | 652,749.45 | 729,789.13 | 11.80% | 729,789.13 | 746,675.37 | -2.26% | ||
| Net Income | 39,435.2 | -20,927.35 | -153.07% | |||||
| Reserves | 7,676,550.44 | 7,563,221.91 | -1.48% | |||||
| August | August | % | August | August | % | |||
| COMMON | Actual | Actual | change | Actual | Budget | change | ||
| Revenue | 346,911.03 | 348,790.03 | 0.54% | 348,790.03 | 341,673.34 | 2.08% | ||
| Expense | 319,091.99 | 368,929.71 | 15.62% | 368,929.71 | 364,701.35 | 1.16% | ||
| Net Income | 27,819.04 | -20,139.68 | -172.40% | |||||
| Reserves | 1,588,287.29 | 1,743,043.90 | 9.74% |
Respectfully,
Bob Rood, CCHOA Treasurer