Dennis,
Every one on our neighborhoods is over 200% funded in our reserves. In fact, one neighborhood is over 500% funded. Each year we continue to contribute to these reserves based on our reerve study. We all know that once money is put into the reserve fund, it can’t ever come back to the operating fund and can only be spent on reserve components. Our CC&R’s require us to have 85% funding at year 30. Shouldn’t we be allowed to not fund the reserve for several years until the reserve funded % gets down to 90% funded? When you review our reserve study, rarely do any of the palnned expenditures occur, which is why I think the olverfunding has occurred. We fund today for an event that never takes place. In addition, given the way a reserve study works, we plan to fund for this same expenditure that never occurred 5 times in the study if it has a 6 year life. A reserve study is just a mathematical template that really has no value after the first year or two of the study. I really want to understand why anyone would continue to fund a reserve that is over 200% funded.