Ensuring Long-Time Financial Stability
Development and Real Estate:
Since July 2023, the final 18 new homes have been completed and sold in the Westridge and Reserves at Forest Ridge neighborhoods. We have reached 100% full buildout at 3,618 IHCA-owned homes. There were 97 resales this year.
Annual Audit:
We have completed another “clean” audit (unqualified opinion), while maintaining strong controls over the accounting environment. By providing complete and accurate audit schedules to our auditors, we keep our audit fees low and our auditors happy.
Investments:
Our interest income for 2023-24 is estimated to be $257,000, which is about $137,000 more than last year due to the higher interest rates. We have a very effective CD purchase program with our bank, enabling us to be efficient with cash management while receiving very competitive CD interest rates compared to other banks. Our master reserves remain funded at 118%, which is a phenomenal achievement.
Master Ass
essments:
Master assessments for the upcoming 2024-25 fiscal year will increase by $36 annually ($3/month) to $1,008. This is needed to cover increasing costs for our aging community. (See graph.) We continue to encourage participation in the monthly auto debit payment (ACH) program for collecting assessments, in which 87% of our homeowners participate. This keeps our cash flow even throughout the year and our delinquencies low at a rate of 1.5%.
How We Do It:
The IHCA community managers and accounting manager work tirelessly for months on creating the budgets for 14 neighborhoods and the master community. Many of them have a high level of complexity, and the managers spend countless hours researching costs and reviewing to ensure that the numbers are accurate and fair to all homeowners in the community. These budgets are then reviewed and approved by the IHCA Finance Committee and IHCA Board of Directors.
Lastly, we always want to thank the incredible IHCA volunteers for their determined support all throughout the year. The IHCA Finance Committee meets on the second Tuesday of each month at 5:30 p.m. The IHCA Board of Directors meets every fourth Monday at 5:30 p.m. All meetings are open to the public. Find more details on the Issaquah Highlands calendar.
Kristyn McKinnon is the IHCA accounting manager.
