Reserve Funds

Good Day Everyone...Our POA pool is going to be remodeled. The BOD finally came to agreement on the contractor and the cost. This took place in October. My question is; does the BOD need to approve/vote on the funds being moved from the reserve account to the operating account in order to pay the contractor?? Thanks~

Thanks for responding RickR7. However, my real question was - does the BOD need to vote to move funds from the reserve account to the operating account in order to pay the contractor??

BillG, when you say POA does it mean membership is not mandatory??
There are reserves such as surplus from a prior year, and there is a Reserve Fund which follows a formula by FL Statutes. Which one is your case ???

To all,
It may be that we haven't gotten to the proper question here. Certainly the cost of the project enters into it, or could enter into it, if the coveants address limitations on how much money can be spent by the Board. Some associations have a limit without members voting and some kind of plurality.

SusannaM,
I am a little hesitant about reserve fund anyway. I like the concept and the mechanics but fear the assumption some board make that this money is for fun and games or some kind of button controlled money. Hit the right button and the money rolls out. I like the plan to put the money away by saving each year and finding ways to cut out some fat. CPI raises each year come to mind. Our board can increase fees each year based on CPI for our region. Problem is there are several figures to choose from and the manager makes that recommendation. They are going to use it again this year and our membership is so apathetic, they think the board knows best. Well, Boards don't ALWAYS know best, and to manipulate this figure, to me, is plain wrong. Fair is fair and I have never seen the CPI used to lower any fees. I know the CPI has not dropped for years but it just might next year, then what happens to twenty years of automatic (in reality) increases. I would really like to see some posts of how the associations are belt tightenimg to meet the demands of our economic problems. We each do something in our households to change a little, ot a lot for some sadly. But associations seem to just roll along trying to catch up from poor management in the past, and then next year, this year is the past.

SusannaM,
Well, we can all bear testimony that one size doesn't fit all. I suppose any association may have a set of guideline about spending Reserve Funds. I also suppose a case could be made to spend reserve funds in an emergency situation with no member approval, all is possible....I guess.

I look at a Reserve fund that requires some membership agreement as to how to save the money over time, and as such would require membership approval. However, we don't work that way and yearly demands for upkeep of an aging complex by the ocean, the rising cost of supplies, contractors, the built in (it seems) increased costs of administration, the desire to keep up appearances, and the members that drag the place down by not participating and looking to turn a quick buck, all seem to get head of the line privledges ahead or regular savings. Our Board insists on carrying "Reserve" funds as contingency funds. It is must easier to control and expend contingency money than a Reserve, but this could all be semantics.
Anyway, I say a fund that is accumulated as a Reserve Fund with a members vote should only be expended with a members vote. A contingency fund is nothing but a slush fund with bigger numbers.

The OP says he is a POA in Florida.

Does that make any difference in regulations dealing with his question?

You say the Reserves can only be used for what they were intended...I know that's what the SS says. But tell me what you can do if the Board takes it to pay bills because the President kept firing and hiring more costly vendors....What can the HO's do about it...even if they find out? This is what our Boaed did and the even used the $902. and month Reserve funds that was a line item in our Budget...not one penny was placed in the Reserves...HO's don't even know this because they have never been given any information.

So how do the HO's ever get this money back?

RobertR1.....I wish I could cause this Board member some trouble, all of this was done knowingly and willingly, because I pointed out the laws to her....I am talking $18,000 +...and we only have $18,000. in Reserves...If you read my other post you will see how disfunctional our Board has been (I was elected only since March but still had no power)...This President and her "yes" Board has destroyed us and then she resigned Aug.29th. MC quit Sept 4th. I did attend all Board meeting, I was the Treasurer (read my other post)until I resigned a couple of days ago (only had a couple).

What is the point of having CC&R's or SS if they don't mean a darn. No way to enforce anything. So it is all a waste of time.

If you do read my other post, you will see how hard it is going to be to start over. We must get rid of an out of town President that won't just step down.