Chartridge Reserve Fund

History of the Fund

The Replacement Reserve Fund (“Reserve Fund’) was established in 2005 by a Bylaw AmendmentBylaw Amendment #2: April 20,2005
The Association shall establish a Replacement Reserve Fund ("Reserve Fund"), wherein funds shall be deposited in accordance with the annual budget for the sole purpose of funding capital costs for repair/replacement of the existing Common Elements owned by the Association. Once funds are deposited in the Reserve Fund, such funds may not be utilized for any purpose other than for such capital repair/replacement of and existing Common Element owned by the Association, except upon the affirmative vote of a simple majority of all eligible votes of the Association. Further amendment of this Bylaw amendment will require the affirmative vote of a simple majority of all eligible votes of the Association.
passed at the Chartridge Association annual membership meeting on April 20, 2005. Soon thereafter, in 2006, the Chartridge Board of Directors hired a professional consultant to identify and evaluate all the common elements and assets owned by the community. This inventory was completed to facilitate better assessment and budgeting of future expenditures related to replacement or repair of the community assets. The Reserve committee maintains a spreadsheet of community assets and monitors expected future replacement/repair dates and probable expense of the replacement/repair.

Money placed in the Reserve Fund can’t be used for any purpose other than replacement or repair of community property. Since the inception of the Reserve Fund in 2005, over $200,000 worth of repairs and replacements have occurred to Chartridge’s common elements. Maintaining a proper Reserve Fund balance has allowed Chartridge to avoid proposing Special Assesments on several occassions.

Recent Repairs and Replacements

Some of the most visible and recent replacements/repairs:

Handling Newly Added Community Property

When a new common element is added to the Chartridge Association properties, that element is added to the Reserve ownership spreadsheet and then any projected replacements or repairs are budgeted. For example, the retaining wall and steps in the Common Area parking lot and the storage addition to the pool house were not paid for by Reserve Funds, but they will be repaired and possibly replaced using Reserve Funds.

Decision Making Process and Budgeting

Each year the Reserve Committee, with the input from other committees and the Board of Directors, budgets for upcoming projected repairs and replacements while leaving enough money available for unexpected replacements. During fiscal year 2010-2011 the resurfacing of the main and baby pools was completed. Total cost for this project was over $40,000. This project was budgeted four years in advance, and money was set aside for the project each year. Each year the Chartridge Association typically allocates $25,000- $30,000 to the Reserve Fund.

With the continued maintenance and repair of the common elements, the Reserve Committee projects that by 2012 the annual contribution to the Reserve Fund may decrease, allowing the community to possibly allocate those funds to other capital projects and improvements.

The next major expenditure that will be partially or wholly funded by the Reserve Fund is the replacement/repair of the wading pool. The Board of Directors is currently evaluating the various options and proposals for this project.

Committee Members