Re: funding your reserves - what percent? | <– Date –> <– Thread –> |
From: Mac Thomson (macheartwoodcohousing.com) | |
Date: Fri, 5 Oct 2007 06:22:23 -0700 (PDT) |
We fund our reserves directly through assessments, but also through
operating profits and investment income. Operating profits are
everything that we have left over at the end of the year that the
teams haven't spent from their team operating budgets. We decided
early on to automatically move these profits into reserves instead of
refunding them, spending them on special projects, etc. It's a
pretty painless way to build up reserves.
Because of stronger than expected operating profits and investment income, we've actually been funding our reserves in excess of what we've calculated that we need to set aside each year. Operating profits and investment income are not predictable, but the thinking is that if we monitor them over time, we can reasonably rely on them. Here's the breakdown:
HOA ASSESSMENTS 50% HOA OPERATING PROFIT 42% INTEREST & INVESTMENT INCOME 28% TOTAL RESERVES FUNDING 120% Cheers, Mac -- Mac Thomson Heartwood Cohousing Southwest Colorado http://www.heartwoodcohousing.com "When I was dreaming, I thought the world revolved around me. I was wrong, And so I sing along, And if you dance, then dance with me." -Bono ********************************************************** On Oct 5, 2007, at 4:16 AM, cohousing-l-request [at] cohousing.org wrote:
Date: Thu, 04 Oct 2007 13:15:19 -0700 From: Susan Hedgpeth <hedgpeth [at] berkeley.edu> Subject: [C-L]_ funding your reserves - what percent? To: cohousing-l [at] cohousing.org Message-ID: <7.0.1.0.2.20071004130431.04049778 [at] berkeley.edu> Content-Type: text/plain; charset="us-ascii"; format=flowed Hi again, Still working on our budget. Question came up, do other cohousing communities fund their reserves at 100% as we try to do? We made the decision to do that because of the security it gave us (i.e., protection against future assessments) as well as being a selling point for future buyers. But some community members have argued that it's not necessary and means our dues are higher than they would be if we didn't fund at 100%. So I thought I'd do another little survey. Can you tell me what percent you fund your reserves at? If I can get the info today or tomorrow, I can take it to our meeting Sat. morning. The following need not respond because you included the information in your response to my earlier question about HOA dues amounts: Swan's Market - 100% Oak Creek Commons - 95% Thanks. -Susan P.S. Thanks to everyone who responded to my earlier question about HOA dues. This list is such a wonderful resource! Susan Hedgpeth Pleasant Hill Cohousing Pleasant Hill, California, USA (San Francisco Bay Area) http://phch.org
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funding your reserves - what percent? Susan Hedgpeth, October 4 2007
- Re: funding your reserves - what percent? Sharon Villines, October 4 2007
- Re: funding your reserves - what percent? Mac Thomson, October 5 2007
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