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Four Seasons Beaumont Breeze March 2024

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FOUR SEASONS BREEZE | MARCH 2024 5 Message From The Board March is the month that is colored with green in both shamrocks and leprechauns, and, if you're lucky, there's a pot of gold at the end of the rainbow. This month I thought I would write about Four Seasons "green," and our proverbial pot of gold, better known as our reserves. Did you know there is a rule of thumb for funding level? Although 100 percent funded is ideal, if reserves are funded at 70 percent, they are considered healthy. If funding levels drop below 70 percent the risk of special assessments increases. The lower the percent funded, the greater the risk. The funding level is based on a reserve study. A reserve study is just that, a study that is based on 30 years of projected expenses. The reserves go up as money is added, and down as it is spent. Keeping a healthy balance allows us to replace items that have ended their life span. An example of money spent from reserves was the replacement of worn-out chairs in the Game Room. Conversely, expanding the Game Room would not be a reserve expense. Instead it would be considered a Capital Improvement expense. Additionally, reserve funds are not intended to cover the association's operating expenses (e.g. utilities). There are three types of reserve studies: 1. Level I: Full Reserve Study, which is the most labor-intensive reserve study. It includes both a physical and a financial analysis. This includes an inventory and assessment, and life estimates are determined by a visual inspection. 2. Level II: This report updates both the physical analysis and financial analysis of an existing report. A site inspection is conducted to verify and or adjust the existing report. 3. Level III: This report updates the financial analysis only. The current fund status and funding plan is updated using research conducted with Board members, vendors, and our General Manager. The Civil Code requires that once every three years an onsite visit is carried out. Four Seasons Beaumont does a level three inspection the other two years. Utilizing our reserve funds is common, and if you attend Board meetings or watch them on YouTube, you will see the Board approving items funded by our reserves. Using our reserve funds allows us to not defer repairs and keeps the association facilities from falling into disrepair. Deferring maintenance could, in the long run, end up causing a special assessment (all homeowners required to make a one-time payment, an amount above their monthly dues rate), which no one wants. Another reason for maintaining a healthy reserve is keeping home values up. When you buy or refinance your home, your lender reaches out to our association and requests our reserve amounts. If reserves are not funded at an acceptable level, a bank has the right to deny the loan. Four Seasons Beaumont does not rely on the luck of the Irish or kissing the Blarney Stone to ensure the reserve amounts are healthy. The Board of Directors, along with the Finance Committee, work diligently during the budget process to ensure we are funded for any repairs or replacements needed. Enjoy your corned beef and cabbage, and green beer, and have a happy and safe St. Patrick's Day! The Board of Directors meets the second Thursday of each month at 1 pm in the Ballroom and we encourage everyone to attend. Per civil code, the Board cannot engage in conversation with any homeowner input. If you prefer a less formal setting, Meet with the Board is a more intimate setting where the Board can engage in conversation with you on almost anything you wish to discuss (except any issues currently under litigation). Meet with the Board is the third Wednesday of each month at 2 pm in the Ballroom. If you have any questions or concerns, please reach out to me via email at kathycravenbod@yahoo.com or call (714) 722-1301. Have a great month and be kind to one another. By Kathy Craven, Board Vice-President

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