Kiawah Island Digest November Digest 2018 - Page 6

6 | KIAWAH ISLAND DIGEST KIAWAH ISLAND DIGEST | 7 2018 Operating Budget Funding Sources 2018 Reserve Budget Funding Sources Assessments 80.9% Commercial Access Fees 10.7% Contributions to Reserves 43.6% Assessments 39.4% Other Income 4.6% Comcast Revenue 2% Commercial Access Fees 14.5% Investment Income 2.5% Recreation Fees 1.5% Investment Income 0.3% Continued from page 1. The items covered in this reserve budget last for many years and it is common practice among homeowners How These Two Budgets Are Funded: associations to charge current owners a fee today that will The operating budget is funded from the annual assessment be set aside to pay for repairs in the future. This reserve charged to homeowners, Kiawah Island Golf Resort and process ensures we have sufficient funds when needed for the developer. This fee provides a highly predictable level repairs of existing infrastructure and better allocates the of income to cover predictable expenses and links current costs of the repairs to those who benefit from the assets. year operating expenses with current year fees. KICA employs the services of an outside Reserve Our reserve budget is funded through the Major Repairs Specialist, who works with us to project major expenses and Replacements Reserve Fund. The reserve fund is built over a 40 year timeline. The model also includes revenue in three ways. assumptions. • The primary source of funding is a half percent transfer fee, called the Contribution to Reserves fee or CTR, on all real estate sales. This represents 40 – 45% of the sources per year. • This is supplemented by a reserve assessment, which represents another 40% of the annual source of funds. • In 2017, we added an allocation of commercial access fees for large or heavy vehicles that add significantly to the need for major repairs on roads and bridges. The allocation of access fees represents 15% of the sources of annual reserve funding. Digest Contributors Virginia Chapel - Member Volunteer Bill Hindman - Member Volunteer Shauneen Hutchinson - Member Volunteer Sue Schaffer - Feature reporter Deb Stewart - Member Volunteer Budgeting Throughout the Year While the budget process only takes place once a year, KICA’s director of finance provides monthly updates to ensure proper oversight on execution and spending trends. These financial reports are available for all property owners to view at kica.us/about/finances. If you have questions about KICA’s budgeting or operations funding, email justask@kica.us. Staff Production Team Emily Jenkins - Communications/editor Leah Burris - Communications accurately and effectively communicate information to the membership in a balanced and constructive manner. Statement of Editorial Policy KICA will endeavor to report significant island news as well as informational topics, programs and events of interest to its members. KICA may from time to time publish editorials in support Digest Mission Statement Kiawah Island Digest is an official communications tool of of its strategic objectives. Member suggestions on content should be submitted by email to communications@kica.us the Kiawah Island Community Association. Its mission is to The Sandcastle Grand Opening Soiree Members came out to celebrate with good music, good food and good neighbors. This is what community is all about.