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 [email protected].
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 [email protected]
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.