Coronado Point Condominium Financial Information
Welcome to the financial tab on the Coronado Point Condominiums (CPC) website. The paragraphs below introduce four important documents that owners can reference regarding CDC finances. These include the Board Financial Resolutions, the Reserve Study, the Annual Budget, and the latest Annual Financial Review. Each paragraph includes a title, a short introduction, and a link to the subject document.
Coronado Point Financial Resolutions
A resolution is a formal statement by the Coronado Point Home Owner Association (CPHOA) Board describing policies the Board intends to follow. The resolution contains a statement of context and what action or practice the Board intends to follow. Resolutions validate and support the Board’s operations.
Coronado Point Reserve Study
By law the Home Owners Association (HOA) is responsible for repairing, replacing, or maintaining the common areas of Coronado Point. As is shown in the Coronado Point Condominiums (CPC) Budget, the 37% of your monthly assessment is allocated to the various categories of the Reserve Fund. These funds are used to pay for the preventative maintenance and repair actions of numerous components throughout the facility such as the roofs, walls, elevators, pumps and deck passageways.
In accordance with California Civil Code, a formal Reserve Study must be performed every three years. This study is performed by accredited accountants and is used by the HOA Board of Directors to guide the annual budget process in the funding of the Reserve Account.
A reserve study provides a current estimate of the costs of repairing and replacing major common area components (such as roofs or pavement) over the long term. Ideally, all major repair and replacement costs will be covered by funds set aside by the Association as reserves, so that funds are there when needed.
Because the Board has a fiduciary duty to manage Association funds and property, a replacement reserve budget is very important. Not only does this information supplement the annual pro forma operating budget in providing owners with financial information; the reserve study is also an important management information tool as the association strives to balance and optimize long-term property values and costs for the membership.
A link to the latest Reserve Study update is below. This annual update includes an introduction page, a cover letter, a table of contents and a five-page executive summary that reflects the changes in the HOA financial position at the end of the last fiscal year. The full Reserve Study budget tables then follow.
Coronado Point Budget
The following pages provide a summary of the Coronado Point Condominiums (CPC) Home Owners Association (HOA) current year budget. This budget was approved by the HOA Board at its November budget meeting.
The following pages present the two main parts of the Budget. The first part is a summary of the estimated income sources and budgeted expenses. The second part is a calculation of the monthly assessment for each of the 80 units at CPC. More explanatory information on these two parts is provided in the following paragraphs.
Budget Income and Expenses. The Budget is summarized in the next three pages in a standard format of Income and Expenses. The first two pages show spreadsheets that contain estimates for all the specified income and expense accounts. The account names listed in the left column are grouped by budget categories. A summary of the actual current year Annual and Monthly income and expenses for each budget category are shown in the next two columns. Next are the estimated budget figures for each of the same accounts. The final two columns show the differences between current year and next year’s budget figures. The third page contains explanatory notes about some of the budget categories.
Monthly Assessment. The monthly assessment for each of the 80 CPC living units is summarized on the last two pages. The total monthly assessment is derived from the total income required from home owner’s dues as shown in the income section of the Budget. Columns on the next two pages show the two components of the monthly assessment – the fixed amount that is the same for each unit and the variable amount that is based on the square footage of the unit.
The table on the top right of the first page summarizes which expense categories and how much of that category is considered a “variable” expense in this calculation. All the rest of the estimated expenses are considered “fixed” and are equally shared by all 80 CP living units. The variable expense allocated to each unit is found by multiplying the total monthly variable expense by that unit’s fraction of the total square footage of all CPC living units. The sum of the fixed and variable assessment is the monthly assessment for each unit.
Annual Review of the Association Financial Statement
As provided by Civil Code # 5305, the Association shall have an official review of the Association’s financial statement prepared by a certified public accountant after the close of the fiscal year. This review shall be prepared in accordance with generally accepted accounting principles by a licensee of the California Board of accountancy. The code states that this document shall be disclosed to an owner within 120 days after the close of the fiscal year.
The most recent financial review received to date is linked below.