Announcements

Treasurer’s Report

May 2022

UNAUDITED CCHOA RESULTS:

The unaudited month ending results for the CCHOA through May 2022 and the 11th month of the 2021/2022 year are enclosed for your review. The combined balance is $6,785,547.74. The reserve balance is less than the balance for April 2022 which was $6,974,089.91. The reserve balance is less than the balance for May 2021 which was $7,603,082.82. The reserve balance for May 2020 was $7,348,878.62, and the balance for May 2019 was $7,656,494.95 and the balance for May 2018 was $4,051,747.20. Reserves were affected for this past year due to a major roofing project in Mardi Gras, Kingston dock project deposit, as well as painting projects. Reserves will be further affected by the Montego garage demolition confirmed by the Montego owners at the January 17, 2022 Board meeting. There are additional reserve projects occurring in most of the other villages, including Port Royale which shares the pool improvements with Mardi Gras, Trinidad and Kingston share the reserve expenditures for the clubhouse and pool as well as Trinidad had expenses associated with leaking water lines, Bahama had combined spending with Antigua on pool area restroom renovations, and Antigua had reserve spending for docks and the administration had the A/C improvements. The Board is aware that purported inflation may adversely affect future reserve projects necessitating future dues increases. 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's final budget for the 2022/2023 year was approved at the April Board meeting. The reserve goal previously set by the CCHOA Board stipulates that all villages must maintain a 50% funding level by the year 2028/2029. 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 of the 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. Where possible, spending adjustments in other categories may be made.

INDIVIDUAL VILLAGE RESULTS:

Individual villages’ exceeding $500 in expenditures over that which was budgeted are reported by “year to date” overages. Common is reported when expenditures exceed $2500 over that which was budgeted. Individual directors continue to examine overages in the budget at any time the overages are reported. 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. Where possible, spending adjustments in other categories may be made.

Currently Montego, Bahama, Port Royale, Blue Anchor(barely) and Common have expenditures over their year-to-date budgeted amounts, however overall the CCHOA is within the budget amounts. The more significant overages are listed for each village.

Blue Anchor exceeded the year-to-date budgeted amounts for water and some minor overages in other areas.

Bahama exceeded the year-to-date budgeted amounts for maintenance wages and burden, tree removal, water, gas/electricity.

Montego exceeded the year-to-date budgeted amounts for maintenance burden, maintenance supplies, safety equipment, gas/electricity, water, administrative expenses and reserve study.

Port Royale exceeded the year-to-date budgeted amounts in pool supplies, gas/electricity, and water.

Common exceeded the year-to-date budgeted amounts in maintenance employee burden, boat dock maintenance, maintenance tools, maintenance vehicle expense, gas/electricity, trash removal, outside contractors, computer service, ads/publications, legal fees and income taxes.

The CCHOA Financial results will be available for homeowners following the June 23, 2022 Board meeting. This is currently scheduled to be an in-person meeting and all homeowners are invited to attend. An electronic copy of the Treasurer's Report and an in-depth financial statement will be available by calling the CCHOA 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, T-Bills and T Notes. Additionally, the CCHOA Board has approved investments in AAA Municipal Bonds when investment opportunities are available. An investment ladder is maintained so that maturing investment come due each month through March 2023 and 5 additional months through December 2023. Currently, investments rates have been going up with a Prime Rate increase June 15, 2022 and with additional planned increases in 2022. The current Prime Rate is 4.75%. The CCHOA Board is currently maintaining a short-term reinvestment protocol. Hopefully this will enable the CCHOA to take advantage of rapidly increasing rates. Should the Feds slow their prime rate increases it is anticipated that the CCHOA will lengthen the reinvestment time frame.

Respectfully,

Bob Rood, CCHOA Treasurer