Announcements

February 2023

Treasurer’s Financial Report

UNAUDITED CCHOA RESULTS:

The unaudited month ending results for the CCHOA for February 2023 and the 8th month of the 2022/2023 year are enclosed for your review. The combined balance is $6,537,166.22. The reserve balance is less than the balance for January 2023 which was $6,540,576.16. The reserve balance is less than the balance for February 2022 which was $7,051,748.01. The reserve balance for February 2021 was $8,028,693.28, the balance for February 2020 was $7,658,873.47, the balance for February 2019 was $7,509,355.32, the balance for February 2018 was $5,007,500.72. The Board is aware that inflation most likely will adversely affect future reserve projects possibly necessitating future dues increases. The CCHOA has significant reserve projects planned for the remainder of 2022/2023 year which will continue to affect reserves. The current planned reserve information is available for your village by calling the CCHOA office at 619-423-4353. 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 previously set by the CCHOA Board stipulates that all villages must maintain a 50% funding level within 30 years. Should any village fall below this level or face an emergency expenditure, the village will need to vote for a special assessment or adjust annual dues. Annual reserve and operational discussions are presently occurring with village directors, the general manager and the maintenance director. 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 Green Turtle Cay, Bahama Village, Trinidad Village, Montego Village, Port Royale and Mardi Gras have expenditures over their year-to-date budgeted amounts, however overall, the CCHOA is within the budgeted amounts. The more significant overages are listed for the 3 Villages.

Green Turtle Cay exceeded the year-to-date budgeted amounts in maintenance wages, maintenance burden, landscape contract and water.

Bahama Village exceeded the year-to-date budgeted amounts in maintenance wages, pool supplies, landscape contract, plants/flowers/soil, gas/electricity and outside plumbing.

Trinidad Village exceeded the year-to-date budgeted amounts in gas/electricity and outside contractors.

Montego Village exceeded the year-to-date budgeted amounts in maintenance burden, maintenance supplies, safety equipment, landscape contract, sprinkler parts, gas/electricity, water, outside plumbing and reserve study.

Port Royale exceeded the year-to-date budgeted amounts in maintenance wages, landscape contract and water.

Mardi Gras exceeded the year-to-date budgeted amounts in landscape contract, tree removal, water, outside contractors, pest control and reserve study.

The CCHOA Financial results will be available for homeowners following the March 23, 2023, 2:00pm Board meeting. This is 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 investments come due each month through December 2023 with the exception of November. There is an additional $1,150,000 maturing in 2024-2025. Currently, investments rates have been going up with a Prime Rate increase at the most recent F.O.M.C. meeting. The current Prime Rate is 7.75%. The market is in a bit of confusion regarding the F.O.M.C. meeting on March 21 and 22 with speculation between pause in the rate increases or increase .25%. Currently the market is still expecting a .25% increase on May 3, 2023 regardless of what occurs March 22, 2023. The CCHOA Board is currently maintaining a short-term (8-26 week) reinvestment protocol. Hopefully this will enable the CCHOA to take advantage of the increasing rates. Should the Feds pause the prime rate increases, other than March 22, 2023 it is anticipated that the CCHOA Board will lengthen the reinvestment time frame.

Respectfully,