Coronado Cays HOA - Announcements - November Treasurer's Report

November Treasurer's Report

12/18/2019

November 2019
Treasurer’s
Financial Report

UNAUDITED CCHOA RESULTS:

The unaudited month ending results for the CCHOA for November 2019 and the 5th month of the 2019/2020 year are enclosed for your review. The combined Reserve account is $7,372,195.25. The Reserve balance is less than the balance for October 2019 which was $7,495,957.53. The Reserve balance is more than the balance for November 2018 which was $7,222,215.96. The Reserve balance for November 2017 was $7,107,230.05, for November 2016 was $8,583,302.14, for November 2015 was $7,923,825.01, for November 2014 was $6,870,898.23. The CCHOA is currently undertaking two major maintenance projects in Kingston and Antigua and there is a corresponding drop in Reserves pending the outcome of a vote for a special assessment in those two villages. These projects do not affect the annual dues in the other 8 villages or Common. Reserves should begin to increase following the completion of the projects. In addition, there are additional significant projects occurring throughout the CCHOA (painting and roofing). All Villages must be at a Reserve funding level of 50% by the year 2023/2024 and 100% over the next 30 years. At the present time all Villages are scheduled to reach their 50% funding level by 2023.

INDIVIDUAL VILLAGE RESULTS:

Currently two villages had higher expenses than that which was budgeted. All Villages are making every attempt to stay in the budgeted categories but certain expenses must be allocated whether they are within the budget or not. If a trend continues the categories will be adjusted during the budget hearings in March and April 2020.

Mardi Gras: Bee removal, sprinkler parts and maintenance wages and supplies accounted for the higher expenses. Mardi Gras had a number of emergency repairs to roofs during the recent rains.

Green Turtle: Bee removal, sprinkler parts and water accounted for the higher expenses.

INVESTMENT PLANNING:

The current investment rationale centers on some investments remaining short term in order to meet the funding expenses for the above mentioned significant projects. Currently, the CCHOA may need $4 million in funds by June of 2020 and the CCHOA currently has $4 million in short term investments. The CCHOA does have additional funds available that will be used should expenses run higher than anticipated. The CCHOA Board and Finance committee remain conservative in the approach to investing while attempting to maximize investment earnings in a safe manor. Investments will continue to move out in time when possible, attempting to take into consideration the FOMC (Federal Open Market Committee) rate determinations. The next possible rate increase or decrease will not happen until January 29 or March 18, 2020. It is assumed that rates will remain steady depending on economic events. The CCHOA currently invests in T-Bills and CDs. The current Prime Rate is 4.75%

	Nov 2018	Nov 2019	%	Nov 2019	Nov 2019	%
COMPILATION	*Actual*	*Actual*	change	*Actual*	*Budget*	change
Cash	60,985.39	140,048.20	129.64%
Revenue	1,624,251.86	1,710,478.02	5.31%	1,710,478.02	1,697,158.75	0.78%
Expense	1,639,383.31	1,690,965.68	3.15%	1,690,965.68	1,697,158.75	-0.36%
Net Income	(15,131.45)	19,512.34	228.95%
Reserves	7,222,215.96	7,372,195.25	2.08%

	Nov 2018	Nov 2019	%	Nov 2019	Nov 2019	%
COMMON	*Actual*	*Actual*	change	*Actual*	*Budget*	change
Revenue	804,510.72	847,478.10	5.34%	847,478.10	826,480.55	2.54%
Expense	784,320.29	897,693.08	14.45%	897,693.08	826,480.55	8.62%
Net Income	20,190.43	(50,214.98)	-348.71%
Reserves	1,434,403.83	1,631,525.86	13.74%

Respectfully,

Bob Rood, CCHOA Treasurer