Cohousing-L Mailing List: Re: funding your reserves - what percent?

[Sharon Villines (sharon]

On Oct 4, 2007, at 4:15 PM, Susan Hedgpeth wrote:

>  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%.

Funding at 100% means you have savings to replace the initial  
investment that everyone made in their homes. The fund should be  
calculated to it earns interest and increases at above inflation,  
with new funds added as more capital improvements are made.

Yes, you can lower your condo fees and not fund the reserves at 100%  
but you will only be deferring expenses or devaluing your investment.

If you underfund it means that future residents will have to pay for  
the resources that you are using now. It has, unfortunately, become  
the American Dream -- let them pay for it. The story of the rabbit  
and the tortoise?

For me it's an ethics question.

There are other arguments about what 100% really is and what  
construction inflation rates should be used, but those are different  
from "let's lower the condo fees by not funding the reserves properly."

Sharon
----
Sharon Villines
Sociocracy, a Deeper Democracy
http://www.sociocracy.info