The State of Florida accepts two primary types of reserve funding: the pooled method and the component method. The pooled method draws reserve funds from one reserve pool. With the pooled method, there is one reserve account balance and anywhere from a few to many reserve items. With the component method, each reserve item has […]
Reserve Study Frequently Asked Questions Part 6
What are some of the most typical reasons that a reserve study would require revisions? A reserve study can require revisions for a number of different reasons. Some typical reasons may be that the reserve study had omitted a reserve item or certain group of items. It is also possible that the reserve study included […]
Reserve Studies: Pooled Method or Component Method?
One of the most common reserve study questions that often comes up is which method of calculating reserves is better: the pooled (cash flow) method or the component method? Before we really examine this question, it is important to know a little background information on each method. Overview of Methods The pooled (cash flow) method […]