Administration of MI reserves
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- The MI portion of lot owner Annual Assessments are based on identified projects and projected reserve balances (actual and target) at the time budgets are approved.
- MI spending projections are based on project cost estimates developed by the property management staff with input from or cost estimates provided by engineering firms, consultants, vendors or other sources.
- It is the responsibility of the PM and applicable committee members to review MI Project proposals, normally during the budget preparation process, and determine which will be presented to the Board for approval (or, if over $100,000, presented for a vote by property owners). Considerations include consistency with the vision, potential utilization of the asset, ongoing costs and amount of funding required.
- During the budget planning process, MI spending forecasts will be established for the budget year based on expected execution of the projects, longer range projections for approved projects to be implemented over several years (as a single project or in phases) or projects which are expected to be approved in future years.
- All authorized MI expenditures will be tracked by project.
- Should segregation of funds be required to control allocation of funding (source and/or timing of funding) or control of expenditures, separate MI Reserves may be established (e.g., for projects greater than $100,000).
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