QHRRP 9000-605

Revenue and Cash

 

Review/update responsibility
 Finance

 
Revision
 08 Dec 2025 (CH1)
Reference
 CCRE Article IV, Section 4.10

Florida Statute 720.303
Revenue
 Through annual assessments, fees at closing and other revenue sources the Association collects funds to be used for both current operations and to be set aside in reserve for future maintenance, repair and improvement expenses. Because a portion of revenue may be reserved for several years, it benefits the Association for the money to be invested in a manner that will generate income while ensuring the principal is not at risk.
Cash
  1. Operating Cash – cash readily available to cover current operating expenses. The operating cash target minimum balance (excluding committed cash, e.g., accounts payable, deposits, prepaid assessments, prepaid revenue and extraordinary cash requirements) is set at 30 days of annual operating expenses.
  2. Cash Deposits – funds held by the Association as a security deposit and refundable to the party making the deposit (e.g., property owner, builder, slip renter, etc.) upon completion of specified terms or conditions. Deposits are currently required for pending ARB projects, Boat Slip Rental and Residential Property Rental.
    • Current Florida statutes limit the options available for the “storage” of security deposits. The Association has elected the option of placing security deposits in non-interest bearing accounts that are not comingled with other Association funds. Therefore, these funds are not available for investment.
    • Reserve cash is cash used for…
      • Major Repair and Replacement (MRR) expenditures. A minimum total MRR Reserves balance, currently $300,000, has been established by the Board of Directors (Board). Additional requirements may be determined by the Board for the total MRR Reserve or sub-reserves to ensure MRR Reserves are properly funded for anticipated future MRR spending. MRR sub-reserves are currently Marina, Harbour/Lock/Dredging (HLD), Road System and All Other. Total MRR Reserves cash levels are maintained to enable payment of planned and potential short term (3 to 12 months) MRR spending.
      • Major Improvements (MI) expenditures. The MI Reserves balance may contain funds for both current year and longer-term requirements.
      • Sovereign Submerged Land Easement (SSLE) Reserve lease renewal fees. Funds are assessed annually and reserved for the Pablo Creek and Island Causeway SSLE to accumulate the funds that will be required for SSLE lease renewals.
    • Pooling of Cash for Investment Purposes – Association cash, regardless of its intended use, is pooled for investment purposes and the invested funds allocated based on the actual cash requirements for each fund.