REGARDING RESERVES

 The operating budget for your association is prepared every year to project the next years expenses and determine the amount of revenue that will be needed to fund those operating expenses. Capital improvements are not included in this budget.  In Preparation of the budget we look at the operating expenses from last year and determine were we have over spent or under spent during the last year, and make adjustments to the budget for the new year.

 We also look at special projects that would have had an affect on this years spending levels which may not exist next year. (such as a new roof, the need for repair would be less the first few years of a new roof)  We also look at the impact on the budget if services would be increased or decreased. (such as how often to we mow the lawn)

 Please keep in mind the budget is only a guide and or a tool in spending of Association funds during the year. Some expenses like snow removal are difficult to project. If one line item is over spent, the board may decide to spend less on another line item in order to keep the budget balanced. The Association is not required to spend the amount budgeted on each line item, but should attempt not to overspend the total budget under normal circumstances.

 The Association needs to be setting a side money each year to replace and repair Capital improvement items, such as painting, roofs, and other replacement items to the property. If a roof will last ten years that expense should be equally divided by all the members over that 10 year period and each owner should pay their portion of the cost to replace the roof in10 years on a yearly basis.  Unfortunately the financial burden this puts on Members of the association makes it difficult to properly fund a reserve.