Reserve Funding
There are some serious questions homeowners should have regarding reserve funding for the Association. Last year, percent funding was 49.83% with an anticipated reserve balance at the end of 2023 of $1,005,400 and a fully funded reserve balance of $2,017,796.50. For fiscal year 2025, the percent funding is 57% with an anticipated reserve balance at the end of 2024 of $1,060,600 and a fully funded reserve balance of $1,845,367.
It appears that there was a shifting of funds from the Membership Disclosure Summary from 2024 to 2025. Of the major components, assigned reserves for roofs jumped from $107,278 to $396,729 with an anticipated current cost of $1,635,751 to repair the roofs given a remaining life range from 15-17 years. Where was this money transferred from? There was a reduction of $124,271 from painting. It is odd that the current cost of painting dropped from $456,873 to $312,520. Also, there was a reduction of $69,579 from lighting. It becomes visible that these reductions from painting and lighting were transferred to roofs. Given the current rate of inflation and costs for materials and labor, the current costs to replace/repair major components may be exceeding higher. The Reserve Disclosure Summary for 2025 indicates that current costs to replace/repair is approximately $175,537 less than last year’s study.
