2 | KIAWAH ISLAND DIGEST
ASSOCIATION
FINANCE
2019 Budget Overview
If you are like most property owners, you recently paid your
member assessment (due each January). Annual member
assessments are the primary source of KICA’s funding but
did you know that these assessments are just one of the
ways the association pays for its many functions? This
high-level budget overview highlights KICA’s revenue
sources and spending throughout the year. For additional
information, check out “Understanding How the KICA
Budget Process Works” at kica.us/budget101.
stringent gate access procedures, but want to maintain
rapid entry for members. Security is implementing new
gate access management technology and will expand its
pass office this year to more tightly manage island access
for those who arrive without a property owner guest pass
or a resort reservation. Stay tuned for more information
on these initiatives as they roll out in future months.
Reserve Budget
The Reserve Budget funds major repairs and replacements
Revenue
to existing Kiawah Island infrastructure. This budget is
KICA is funded primarily through property owner and planned with consideration to the projected life of each
commercial entity assessments (accounting for 82% of association asset for the next 40 years.
operating revenue and 39% of the Major Repairs and
Replacements (MRR) revenue), a half percent transfer The largest expense in the Reserve Budget for 2019, and
fee on real estate transactions called Contributions to consistently year-to-year, is drainage. Drainage projects
Reserves or CTRs (38% of MRR revenue), commercial will account for about 43% of the Reserve Budget. KICA
access fees (9% of operating revenue and 13% of MRR maintains 43 miles of existing pipe, connecting 119 lakes
revenue) and investment income. In 2019, the association and ponds, making up 14 drainage basins. Water levels
is anticipating revenue consistent with 2018.
can be managed, to an extent, within the drainage basins,
which is crucial to prevent or reduce flooding that can
Expenses
accompany significant rain events.
When allocating this revenue to pay for expenses (which
is done in the latter half of the previous year – in 2018 for Other Reserve Budget expenses include the major repair
the 2019 budget year), funding is allocated to two discrete to, or replacement of, 60 miles of roadway and bridges
budgets: the operating budget and the reserve budget.
(30% of the Reserve Budget), 19 miles of leisure trails
and 25 boardwalks (7.5%), and large-scale landscape
Operating Budget
revitalization projects (8.5%).
The Operating Budget funds the predictable association
functions including security and livability; land, lakes Looking Ahead
and general maintenance; administration; recreation and At the Jan. 7 board of directors meeting, KICA treasurer
amenity operations.
and Finance Committee chair Mike Feldmann outlined
two subcommittees set up to consider potential drainage
Of note for 2019, the Operating Budget reflects an 8% projects outside of KICA’s routine maintenance. As
increase to personnel wages from the 2018 budget. KICA outlined above, drainage funding is used for existing
faces the staffing challenges of national low unemployment infrastructure. However, KICA has identified several
(2.7% in Charleston County), a dwindling supply of projects that would require new infrastructure, for which
nearby affordable housing and commuter traffic issues. there is no dedicated funding source. One subcommittee
In order to offer competitive wages and retain quality will consider the likely effectiveness of various projects,
employees, KICA’s board voted in August 2018 to and the other will look at funding considerations.
increase wages for hourly positions to a minimum of $13/
hour, which alone accounts for nearly a 5% increase over Stay up-to-date with KICA’s finances with monthly
the 2018 budget.
statements posted at kica.us/finances. To hear from your
member-elected directors on financial matters, attend bi-
KICA is also investing in island security and gate monthly board of directors meetings or tune in to watch
operations. Community members would like more at kica.us/livestream.