As we approach October, we are now officially into budget season. Associations are working hard to develop next year’s budget and doing everything possible to keep assessments from rising. Association Managers are calling vendors and utility companies to get an idea of next year’s rates and fees. In addition to the regular operating budget, associations […] read more »
Category Archives: Risk Tolerance
As mentioned the article “What is Percent Funded?” we learn that we can use the percent funded as a way to measure the strength of the Reserve Fund. The strength can be described as weak, fair, strong and ideal. Below are a few general benchmarks that may be used. 0-30% Funded is a “weak” status. […] read more »
There are essentially three ways to contribute to your reserve account. Regular Contributions, Special Assessments and Loans. Regular Contributions are the best method of funding the reserve account. If adequate regular contributions are not established the reserve fund will eventually be underfunded. An underfunded reserve account leads to deferred maintenance and potentially extensive repair. The […] read more »