Announcements

January 2020

Treasurer’s Financial Report

 
UNAUDITED CCHOA RESULTS:
The unaudited month ending results for the CCHOA for January 2020 and the 7th month of the 2019/2020 year are enclosed for your review. The combined Reserve account is $7,577,808.58. The Reserve balance is slightly more than the balance for December 2019 which was $7,545,807.54. The Reserve balance is more than the balance for January 2019 which was $7,390,751.22. The Reserve balance for January 2018 was $5,927,619.11, for January 2017 was $8,925,608.52, for January 2016 was $8,022,698.90, and for January 2015 was $6,915,130.84. As reported in recent Treasurer’s reports, the Reserves are expected to drop for a period of time until the source of funding for the Kingston Village renovation has been resolved. The special assessment in Antigua was previously approved. The vote in Kingston will occur shortly. Both of those villages are continuing to use their individual village Reserves and have not yet borrowed any Common Reserves. Kingston still has $1,085,332.06 in Reserves and Antigua still has $383,442.25 in Reserves. It might be noted that each village, including Kingston and Antigua continue to add to their Reserves on a monthly basis. The General Manager and the Facilities Manager continue to survey all property to ensure that there is NO Deferred Maintenance unless there are no current alternatives in which case the Board and General Manager will initiate an immediate program to remedy the maintenance issue.

INDIVIDUAL VILLAGE RESULTS:
Currently one village had higher expenses than that which was budgeted. All villages are making every effort to stay in the budgeted categories but at times certain emergency or non negotiable expenses occur and the funds 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.

Green Turtle was slightly over by $422.60, down from $1,525.92 for the previous month. This was caused primarily by the timing of various expenses as compared to the budget. I expect Green Turtle to be under budget before the end of the fiscal year.

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, as well as the regular maintenance projects throughout the CCHOA. The CCHOA is maintaining a laddered approach to investments that range in maturity out to 2023. The CCHOA Board has adopted a policy whereby some investments can be moved out for a period of 5 years to take advantage of a possible declining rate environment. The rate of maturity is always determined by maintenance projects and of course available opportunities for various investment vehicles. Currently the CCHOA invests in FDIC insured instruments which are CDs and T-Bills (with one small exception) with various maturity dates. The FOMC (Federal Open Market Committee) left rates unchanged on January 29, 2020 with the comment that the economy is doing quite well but they were keeping an eye on global economies. They are concerned about the affect the Coronavirus may have on various global economies, thus additional rate cuts may be in order should the Feds see a faltering economy. The next meeting of the FOMC is on March 17-18, 2020. The CCHOA Board and Finance Committee pay close attention to rates in order to take advantage of the best rates available with various banks around the country and various government instruments. The current Prime Rate is 4.75%.

Respectfully,

Bob Rood, CCHOA Treasurer