Excess operating funds are deposited into our Replacement Reserves. While these funds are reflected as an expense in the budget, the funds are actually going into our Reserves account (savings account). At the end of this year we expect to exceed and deposit $100,000 in the Reserves account. We currently have a balance of $1,052,874.

 State Law requires associations to set aside funds for future replacements, such as a pool rehabilitation, HVAC replacement, asphalt, tennis courts, clubhouse roofing, etc.  Various mortgage loan insurers such as HUD and the Veteran’s Administration also require this. They will not approve loans for communities that do not set aside adequate reserves funds.

It is important to understand the Board is composed of homeowners that realize the impact of any increase in the assessment and that is why we review expenditures at each meeting and spend a great deal of time on the development of each year’s budget.