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JOINT Informational Meeting March 8, 2011
Reserve Study
Operating Budget:
The CC&Rs require that our money be in different accounts or funds. You pay
your quarterly assessment into the operating fund for the operation and
maintenance of the Resort. A portion of this money, 2.25% 5%, goes into the Repair/Replacement Fund and
2.25% 2% into the Capital Improvement Fund.
In addition, excess net income at year's end is transferred into the
Repair/Replacement Fund.
The fiscal year was
recently changed to July 1 - June 30 starting in July 2007.
Therefore,
the
2008 Fiscal Year (July 1, 2007-June 30, 2008) Operating Budget was prepared
and reviewed
in Jan., Feb., & Mar. 2007 and
approved by the Board on March 20, 2007.
Activities Budget :
The Activities Fund does not pay the salaries in the Activities Office,
but is to support activities. This fund should be "revenue neutral" in that
the Operating Fund does not contribute to it nor does it contribute to the
Operating Fund. Various activities make money and some lose money such
as the annual volunteers’ party.
Reserve Fund Projects:
The budget for an individual project that is funded
either by the Capital Improvements Reserve (CC&R 9.6B) or the
Repair/Replacement Reserve (CC&R 9.6C) is approved by the Board for a certain
dollar limit and is not linked to the fiscal year. After project approval,
spending may occur over several years.
How
do we decide what items are funded with these two Reserve Funds? Let us review the
following table:
Think about replacing
the two drinking fountains our Ballroom. Their replacement would be
funded in the Operating Budget since they cost less than $3,000
When we replace the floor in the Ballroom, the cost would be more than $3,000 and
will be used for a number of years, therefore, it is funded from the
Repair/Replacement Reserve Fund.
When we added the Fire Alarm System in all our common
buildings at a cost of about $33,000, the cost was funded from the
Capital Improvements Fund since it was a new component and cost over $3,000.
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