Your Reserves at Work
As Things Age, Maintenance Is Required To Keep Them Working As They Should…It’s True Of People, It’s True Of Infrastructure
Your Reserves at Work
The LF II Homeowners Association was in recognition that much of our area has a natural beauty earmarked by its distinctive terrain and wooded areas. The Association was created for the purpose of protecting the investment of the Members of the Association by means of the preservation, enhancement, and maintenance of the community to promote the health, safety & welfare of its residents. In furtherance of this purpose, the Association was embodied with a number of powers, which includes the ability to fix, levy and collect assessments to fund community operations.
Funding community operations is one of the most essential responsibilities of the Board of Directors. LF II, like most HOAs, has 2 major accounts:: 1) operational funds; 2) reserve funds. OPERATIONAL FUNDS are for the day-to-day expenses, i.e., paying the bills, as well as for upkeep and maintenance. A subset of this is CAPITAL FUNDs which are dedicated to the acquisition of capital assets, usually through either purchase or construction. While operational funds are for regular, recurring expenses, RESERVE FUNDS are essentially a savings account in which money is collected for more costly repairs and replacements of association assets within“common areas.”Maintaining LF II’s assets is a primary objective of the Association…the promotion by real estate agents of membership in the Sun & Sail Club as a selling point in their pitch to prospective home buyers demonstrates how valuable “our community” assets are.
A thorough & strongly funded Reserve Fund increases property values and marketability. To ensure sustained financial wellbeing LF II’s Budget and Finance Committee is tasked with reviewing the reserve fund and expenditures on a monthly basis. LF II remains well funded&strong financially through the continued & sustained efforts of its Board of Directors, Budget and Finance Committee, and staff. Unlike many other HOAs, LF II, LF II’s governing documents obligate the association to maintain, operate, repair, and replace the assets of our Clubhouse & Common Areas. This is the purpose of the reserve funds.
Through their monthly assessment, every LF II homeowner pays into the community funds, a portion of which goes into both the community-wide master reserve funds and the local neighborhood reserve funds (the neighborhoods of Park Place & Ranchwood have no local community assets & pay only into the master fund) through their monthly assessment.
Each year a RESERVE STUDY, prepared by a professional consultant with expertise in this area, is completed as required by Association regulations, whose purpose is to itemize and valuateall assets in potential need of repair and/or replacement (R/R) during the coming year, and is used as a tool by the Board of Directors to anticipate expenditures to ensure adequate funding. This “Potential Reserves Expenditures List” is published each year in The MAINSHEET (the 2019 list is available for viewing in the Dec ’18 issue @ www.lf2.org). This list itemizes assets with a life expectancy that may expire during the coming year (though not all the listed items will be repaired or replaced that year, depending on individual condition), and valuates the anticipated cost of the repair and/or replacement. These potential expenditures are to be funded from the accumulated Reserve Funds. Monies for the Reserves Funds are collected through the ongoing collection of homeowner assessments and set aside for use as needed for the ongoing maintenance or replacement of the Association’s assets.
• Replace front lobby doors with new automatic doors
• Replace and upgrade Clubhouse A/C system
• Street overlay for all the private streets
• Front lobby remodel of countertop & cabinetry
• Youth Center remodel
• Replace/Upgrade pool deck furniture
• Replace/Upgrade picnic grounds furniture
• Resurface & repipe Lap Pool
• Resurface Family Pool
• Resurface & repipe Exercise Pool/Spa
• Resurface Family Pool/Lap Pool deck
• Replace Exercise Pool/Spa deck with pavers
• Replace Exercise Pool/Spa & Playground fencing
• Catering Kitchen remodel
• Banquet Room Kitchen remodel
• Repaint and replace flooring in Fitness Center
• Parking lot resurfacing
• Replace and upgrade Clubhouse signage
• Replace Volleyball Court fencing
Before – Exercise Pool repairs underway After – Exercise Pool repairs completed
• WiFi replacement/upgrade at the Clubhouse
• Spa resurfacing & leak repair
• Locker Room remodel
• Upper Courts rehab
• Snack Shack rehab
• Diving Board replacement
• Banquet Room restrooms remodel
• Lobby restrooms remodel