Financials & Reserves
Monthly Financial Reports
The Association makes available the Association's monthly financials, including the balance sheet and the MTD/YTD budget comparison.
Reserve Study Document
There are two Mountain Bridge Reserve Studies. The first includes all areas in the master association, including parks, amenities, common areas, etc. The second reserve study covers the additional amenities and common areas for the neighborhoods considered benefited parcels called the Villas (Bella Via and Entrada), which pay for a second assessment.
What is an Operating Fund?
Homeowner associations have two major accounts: the operating and reserve funds. The operating fund (checking account) – as its name states – is used for keeping up with day-to-day expenses and maintenance of the association’s assets. Most transactions take place in these accounts. The reserve fund is essentially a savings account. It is where the HOA saves money for more costly repairs and replacements.
What is a Reserve Fund?
Ideally, Mountain Bridge wants a 100 percent funded reserve account, meaning it has enough money to cover all anticipated costs. Anything below 70 percent funded, however, and the HOA may need to leverage special assessments or increase association dues to cover expenses.
Why a healthy Reserve Fund?
A Board oversees community upkeep and maintenance of amenities and common areas. The goal is to be prepared for unexpected expenses or urgent projects that may arise in the future. So, if the roof over the Owners' Club suddenly springs a leak or the pump blows out in the pool, these issues can impede the quality of life for the entire community. Of course, residents will expect these problems to be fixed right away. However, a substantial reserve ensures funds for the financial burden associated with these repairs. That's where HOA reserve funds come into play. Additionally, reserve funds can help handle sudden repair needs due to oddities like monsoons, lightning, and flooding.
Additional reasons for Reserve Funds
HOA reserve funds aren’t only for emergency repairs. The Board may approve using HOA reserve funds to make significant upgrades or improvements to common areas where the enhancements can benefit everyone who lives in the community. These projects tend to have reasonably high price tags, so they often can’t be covered with the typical, day-to-day operating funds. By having homeowners association reserve funds in place, the Board can consider these projects without needing a fundraising effort, incurring debt, or assigning a special assessment.
What is a Reserve Study?
A reserve study is a long-term capital budget planning tool that identifies the current status of the reserve fund and a stable and equitable funding plan to offset ongoing deterioration, resulting in sufficient funds when those anticipated major common area expenditures occur.