The association maintains separate operating and reserves budgets/accounts. Total income, basically consisting of Homeowner Dues, is collected in the operating account, then a portion is allocated to the reserve account. For the 10-year period from 2002-2011, 25% of income was allocated to reserves. 2020 Budget Proposed FY20
The Operating Budget covers normal recurring predictable operating expenses. The Reserves Budget is used for major replacement and repairs as needed and therefore is less predictable. A minimum balance is maintained as this fund also serves for emergency needs.