Re: Saving up for a capital expense
From: Linda Hobbet (coholindahobbet.com)
Date: Wed, 11 Nov 2020 17:23:45 -0800 (PST)
Thank you to the people who answered my question, both on and off the list. It's interesting to see how many different ways communities manage their budgets and resources.

Many of the answered focused on the Long-term Reserve Funds for replacing existing infrastructure in the future as it is predicted to wear out. I probably wasn't clear enough that I am asking about how to save up for new capital improvements. When we value engineered our construction plans we had to cut out a lot of things we couldn't afford at the time. That doesn't mean we don't want them at some time but how do we save up for something we can't afford in one year.

Thank you,
Linda

On 11/4/2020 5:45 PM, Elizabeth Magill wrote:
Do you have a capital expense in mind that wouldn't be in the reserves?

We have two reserves--HOA reserves for buildings
and Cohousing reserves for furniture, washing machines, lawnmowers, hot
tub, etc. Things that cost not very much, more than a year's normal budget,
and that we want to be able to purchase as needed, without having predicted
it in the budget.

But it's still "reserves". Everything else we do not carry over.

Liz

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VillageHearthCohousing.com
706-202-7278
coho [at] lindahobbet.com

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