Background
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Here is the background of Major Improvements Reserves…
- A Capital Reserve was originally established by the Board in the late 1990’s and was primarily utilized to fund repairs and replacements. However, some improvements were funded from this reserve (e.g., a portion of the Fitness Center and pond fountains) and the purchase of the Marina was funded through a loan from this reserve.
- The Capital Reserve was renamed the Major Repair and Replacement (MRR) Reserve in 2006 and use was restricted to funding major expenditures (over $10,000) for repair and replacement of existing assets (whether capital or expense), and not for the funding of new assets or improvements to existing assets.
- In 2007 a separate reserve for Major Improvements was established to fund major expenditures (over $10,000) for improvements (whether capital or expense).
- In 2008 a separate Marina MI Reserves was established to accrue funds for expenditures over $10,000 to improve existing Marina assets or acquire new Marina assets. The Marina MI Reserve is funded through a portion of Marina slip rental fees.
- In 2009, the Board reduced the threshold for asset improvements funded through the MI Reserves from $10,000 to $5,000. This change was made to lessen the impact of improvement projects on the Operating budget and to increase the visibility of funding requirements for improvement projects.
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