Announcements

Treasurer’s Report

November 2021

UNAUDITED CCHOA RESULTS:

The unaudited month ending results for the CCHOA through November 2021 and the 5th month of the 2021/2022 year are enclosed for your review. The combined balance is $7,305,254.20. The reserve balance is slightly less than the balance for October 2021 which was $7,366,317.84. The reserve balance is less than the balance for November 2020 which was $7,751,132.41. The reserve balance for November 2019 was $7,372,195.25, and the balance for November 2018 was $7,222,215.96, and the balance for November 2017 was $7,107,230.05. Reserves were affected this month due to a major roofing project in Mardi Gras, which has ended until July 2022 as well as updated painting. There are additional reserve projects occurring in most of the other villages. Lastly, Reserve balances were affected 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, Antigua, Kingston, Montego, and Blue Anchor Villages. 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 of the villages so that maintenance will not be deferred unless no alternatives exist.

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 3 villages and Common have expenditures over their budgeted monthly amounts, and 4 villages and common are over in their year-to-date budgeted amounts. Kingston, Montego, Port Royale and Common have exceeded their monthly budgeted expenses. Kingston, Montego, Port Royale, Mardi Gras villages and Common have exceeded their yearly to date budgeted expenses. The more significant overages are listed for each village.

Kingston exceeded the monthly budgeted amounts for termite work, outside contractors, and outside plumbing. In year to date the amount budgeted for termites, outside contractors, outside plumbing and earthquake policy were exceeded.

Montego exceeded the monthly budgeted amounts in monitoring services and maintenance supplies. In year to date the budgeted amounts were exceeded for water, employee burden and maintenance supplies. 

Port Royale exceeded the monthly budgeted amount in gas/electricity and pool supplies. The year-to-date budgeted amounts were exceeded in water, pool supplies, sprinkler parts and employee burden.

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

Common exceeded the monthly budgeted amounts in legal fees, trash removal and audit. The budgeted amounts in year to date were exceeded in maintenance employee burden, income taxes, legal, trash removal and boat dock maintenance.

The CCHOA Financial results will be available for homeowners following the January 27, 2022 Board meeting. So far this is scheduled to be an in-person meeting and all homeowners are invited to attend. An electronic copy 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 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, $1.300,000 comes due in 2023 and $850,000 comes due in 2024 and $200,000 in 2025. Currently, very short-term rates have risen slightly. The CCHOA is currently maintaining a relatively short-term investment protocol. Since Jan 1, 2021, the CCHOA has earned $32,152.66 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

* Includes funds allocated to Reserves for special assessments.

Respectfully,

Bob Rood, CCHOA Treasurer