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.
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.
How are the Dues Spent?
Treasurer Duties (By-laws):
The Treasurer shall receive and deposit in appropriate bank accounts all monies of the Association and shall disburse such funds as directed by resolution of the Board of Directors; shall sign all checks and promissory notes of the Association; keep proper books of accounts; cause an annual audit of the Association’s books to be made by a public accountant at the completion of each fiscal year; and shall prepare an annual budget and a statement of income and expenditures to be presented to the membership at its regular annual meeting, and deliver a copy of each to the members.