Announcements

Treasurer’s Report

December 2021

UNAUDITED CCHOA RESULTS:

The unaudited month ending results for the CCHOA through December 2021 and the 6th month of the 2021/2022 year are enclosed for your review. The combined balance is $7,239,262.49. The reserve balance is slightly less than the balance for November 2021 which was $7,305,254.20. The reserve balance is less than the balance for December 2020 which was $7,718,176.92. The reserve balance for December 2019 was $7,545,807.54, and the balance for December 2018 was $7,347,111.35, and the balance for December 2017 was $6,646,143.57. Reserves were affected last month due to a major roofing project in Mardi Gras, which has ended until July 2022, as well as painting and landscaping projects. There are additional reserve projects occurring in most of the other villages. Lastly, reserve balances were affected last month and again this month by a reduction in monthly transfers from Operating to Reserves to reconcile prior year operating expenses in excess of funds collected by or paid to the Association for Green Turtle, Kingston, and Blue Anchor Villages. Kingston, Montego, and Antigua Villages have completed the reduction. 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 reserve goal set by the CCHOA Board stipulates that all villages must maintain a 50% funding level by 2023/2024. Should any village fall below this level, the village will need to adjust their annual dues structure. The CCHOA Board pays close attention to monthly expenses and remains committed to ensure adequate funding for all villages’ reserve projects. The CCHOA Board and General Manager are committed to making every effort to avoid deferring maintenance when possible and when adequate funding is available.

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.

Currently 5 villages have expenditures over their budgeted monthly amounts, and 3 villages and Common are over in their year-to-date budgeted amounts. Jamaica, Green Turtle, Blue Anchor, Port Royale, Mardi Gras and Common have exceeded their monthly budgeted expenses. Montego, Port Royale, Mardi Gras Villages and Common have exceeded their year-to-date budgeted expenses. The more significant overages are listed for each village. It might also be noted that most of the villages and common were over in the budgeted income accounts.

Jamaica exceeded the monthly budgeted amounts for plants and sprinkler parts

Green Turtle exceeded the monthly budgeted amounts in maintenance supplies.

Montego exceeded the year-to-date budgeted amounts for water, administrative expense, employee burden and maintenance supplies.

Blue Anchor exceeded the monthly budgeted amounts in maintenance supplies, water and reserve study.

Port Royale exceeded the monthly budgeted amount in water and reserve study. The year-to-date budgeted amounts were exceeded in water.

Mardi Gras exceeded the monthly budgeted amounts in water and sprinkler parts. The year-to-date budgeted amounts were exceeded in water, pool supplies, and sprinkler parts.

Common exceeded the year-to-date budgeted amounts in legal fees, income taxes, computer service, tools, trash removal, maintenance supplies and burden, and boat maintenance.

The CCHOA Financial results will be available for homeowners following the January 27, 2022 Board meeting. This is scheduled to be a zoom meeting and all homeowners are invited to attend. You are welcome to call the Cays Administrative Office to register for the meeting. An electronic copy of the Treasurer's Report and an in-depth financial statement will be available by calling the CCHOA Administrative Office at-619-423-4353.

INVESTMENT RESULTS:

The CCHOA Board, General Manager and the Finance Committee regularly monitor investment rates 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. Additionally, $1,450,000 comes due in 2023 and $850,000 comes due in 2024 and $200,000 in 2025. Currently, investments rates have risen slightly. The CCHOA is currently maintaining a relatively short-term investment protocol to hopefully take advantage of increasing investment returns. Since Jan 1, 2021, the CCHOA has earned $35,281 on investments. The current Prime Rate is 3.25% as it has been since it was dropped 1% on March 4, 2020.

Respectfully,

Bob Rood, CCHOA Treasurer