FY2022 Association Budget
Our homeowners association has two types of accounts- our Operating account, and Reserve fund. While our Operating account is for our day-to-day operations of the Association, similar to a checking account, the Reserve Fund (also referred to as simply “reserves”) is the Associations’ “savings account” for future, larger repairs/replacements of Association assets and property. Reserve funds are intended to prevent the need for potentially costly special assessments, and in many cases, including ours, are required by FL Statute. Our Reserves are based on reserve studies updated periodically by an independent third-party professionals to determine remaining life and replacement costs of assets and capital expenditures.
Upon completion of the first full Reserve Study completed in 2021, it was determined that our reserve fund was poorly funded by the developer. We were only 30% of where we were supposed to be, and many items had inaccurate or severely underestimated replacement costs. Per FL Statute, as an Association we are required to fully fund our Reserve accounts, unless a membership vote is taken to reduce them. As this is not fiscally sound policy, the Board has created a funding plan to fully fund our reserve accounts based on the required 30 year plan for anticipated expenses. We strongly believe this is the best solution to ensure our community is on a solid financial footing and significantly reduce any surprise special assessments which can cause hardships on our fellow neighbors, or result in needed repairs being delayed or deferred, which in almost all cases increases the costs in the end.