The goal of any association budget is to properly identify their annual operating costs and their long-term capital reserve item portion contributions. Associations are pretty good at budgeting their annual operating costs, but sometimes not as good when it comes to budgeting the reserve portion. With reserves, not funding enough money will not have a […]
Partial Reserves
What to Do When Your Reserves Are Underfunded
Living in an association requires diligent financial management. The financial management has two distinct parts: the short term and the long term. Every year associations have to prepare a budget. Most of the line items in the budget are for ongoing operations and maintenance. Examples of these are tree-trimming, grass cutting, professional fees, insurance, etc. […]
Partially Funding Reserves Leads to Special Assessments
When budget season comes around, expenses seem to keep adding up. There might be some temptation by members of the community to take a shortcut to save some money. One possible idea is to only partially fund reserves. By Florida statutes, members of an association do not have to fully fund reserve accounts (you have […]