|
| Wednesday, January 07, 2009
|
|
|
|
|
|
|
|
|
|
|
| IHG Insurance (National Insurance Provider) |
| Providing Community Association Insurance for over 25 years: D&O Liability, Crime Products, Umbrella Coverage and Property Manager's Errors & Omissions Liability. |
|
|
|
|
|
|
| You are not authorized to post a reply. |
|
|
| Author |
Messages |
|
SandyA
(Kentucky)
Posts:8
 |
| 08/06/2006 5:46 AM |
|
We are a fairly new board, we just took everything over from the developer 2 years ago. Our bylaws say: "“Current expenses”, which shall include all receipts and expenditures within the year for which the budget is made, including a reasonable allowance for contingencies and working funds, except expenditures chargeable to reserves or to additional improvements. The balance in this fund at the end of each year, if any, shall be placed into a reserve account."
Is that saying what we think it's saying, that at the end of the year all of the balance in the operating account has to move to the reserve account? How do you handle bills that are due in January before that month's assessments are collected?
|
|
|
|
|
WilliamT
(Arizona)
Posts:489
|
| 08/06/2006 5:57 AM |
|
I'm not sure if you have printed the entire paragraph or not.
But typically you should maintain two to three months of operating funds (depending on what your budget shows that you will need in those first few months), and place the rest into the reserve fund.
If your reserve funds are placed in CD's, a good method is to have them in one year or longer CD's and staggered so that some of them are renewable each quarter. That gives you the greatest interest rate, and you'll still have reserve fund cash available every three months if needed. If not needed, then it rolls over for another year or so.
Bill |
|
|
|
|
RogerB
(Colorado)
Posts:3724
|
| 08/06/2006 7:38 AM |
|
Sandy, I suggest you amend the By-laws by deleting "The balance in this fund at the end of each year, if any, shall be placed into a reserve account." I would replace that statement with "The balance in this fund at the end of each year, if any, shall be retained in the Association's operating and reserve accounts rather than being returned to the members."
|
|
Roger Borcherding
Official HOATalk.com Sponsor
DARCO Property Management (Colorado)
(303) 925-0150 
*See legal notice below (end of page) or go to www.hoatalk.com/legal |
|
|
|
| You are not authorized to post a reply. |
|
|
General Legal Notice: The content of forum messages are from the posting member and have not been reviewed nor endorsed by HOATalk.com. Messages posted by HOATalk or other members are for informational purposes only, are not legal or professional advice and do not constitute an attorney-client relationship. Readers should not act upon this information without seeking professional counsel. HOATalk is not a licensed attorney, CPA, tax advisor, financial advisor or any other licensed professional. HOATalk accepts ads from sponsors but does not verify sponsor qualifications nor endorse/guarantee any sponsor's product or service.
HindmanSanchez Legal Notice: (For messages posted by HindmanSanchez) This message has been prepared by HindmanSanchez for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Members of HOATalk.com should not act on this information without seeking professional counsel. Please do not send us confidential information unless you speak with one of our attorneys and get authorization to send that information to us. If you wish to initiate possible representation, please contact an attorney in our firm. Our attorneys are licensed to practice law in the state of Colorado only.
Legal Notice For Messages Posted by Sponsoring Attorneys: This message has been prepared by the sponsoring attorney for informational purposes only and does not constitute legal advice. This information is not intended to create, and receipt of it does not constitute an attorney-client relationship. Readers of HOATalk.com should not act on this information without seeking professional counsel. Please do not send any sponsoring attorney confidential information unless you speak with the sponsoring attorney or an attorney from the sponsoring attorney’s firm and get authorization to send that information to them. If you wish to initiate possible representation, please contact an attorney in the firm of the sponsoring attorney. Sponsoring attorneys that post messages here are licensed to practice law in a specific state or states as indicated in their message signature or sponsor’s profile page. (NOTE: A ‘sponsoring attorney’ is an attorney that is a HOATalk.com official sponsor and is identified as such in the posted message or on our sponsor page.)
|
|
|
|
|
|
|
|