Budget Box: TLA’s Reserves Fund  

  Since the end of last year, we’ve spent a lot of time discussing The Landings Association’s restricted Capital Reserves Fund. It is important to note that this fund can be used only for the repair and replacement of the Association’s capital assets. It is not a “rainy day” fund that can be drawn down when economic hard times hit or when operational expenses run higher than budget. Once money goes into the Reserves Fund, it stays there until needed for such items as repaving of our streets and repair of our storm drains. As we stand in 2020, our Reserves are at a level described as “adequate” by industry standards. However, as previously reported, due to upcoming capital expenditures required for our aging infrastructure and with flat Annual Dues since 2018, without an increase in funding for the Reserves, they will immediately fall below “adequate” levels and will run out of cash over the next several years. The Annual Dues proposal I hope you have seen and read much about aims to prevent this. The majority of the increase will go directly to the Reserves, so we can maintain the adequate funding level. If we do better than budget in operations, we will transfer the positive variance into Reserves, so that it is protected and to be used only as highlighted above. If you would like to learn more about this issue, I encourage you to visit www.landings.org/annual-dues, where we have linked to the recent Reserve Study and Budget Workshop that reviewed the Study, as well as much other supporting documentation. Please make sure you are an informed owner as you cast your Annual Dues ballot.