Recognizing the need for long term financial planning and the prudence of providing for emergencies, the Board of
Directors of LLV Improvement Association has adopted the following Resolution establishing certain reserves:
CAPITAL RESERVE ACCOUNT FOR THE REPLACEMENT OF COMMON ELEMENTS:
The initial limit of this reserve fund is established at $60,000.00. Not less than $1,000.00 shall be added per month out
of each month’s operating budget, retroactive to June 1, 1990 until the initial limit is reached.
These monies shall be used for major repair and/or replacement of the Common Elements due to age, i.e., roof
replacement, or destruction by disasters such as hurricanes, tornadoes, fire, hard freeze, etc., or such other
emergencies declared by the current Board of Directors, and not fully covered by insurance nor included in the current
annual budget.
OPERATING RESERVES:
The amount of this reserve fund shall be equal to two (2) months of the current year’s operating budget.
These monies shall be used by the Management company and/or Board of Directors to insure an adequate cash flow to
meet contingencies due to any emergency and/or prior to reimbursement by the insurance company.
In the event the operating reserve fund drops below the authorized level and cannot be reimbursed by adjusting the
current budget, the following year’s budget will be increased to return it to the authorized level.