What is the difference between our operating budget and our capital reserve account?
While the Operating Budget covers our day-to-day expenses, our Reserve Account can be considered a savings account. This savings account is used to fund long term actions and major repairs. SVHA is a not-for profit organization, and, as such, we are expected to spend every dollar we take in each year. However, the IRS allows us to save money to plan for future repairs to our property and structures (clubhouses, pools, walking paths, parking lots, tennis courts, & basketball courts). In order to know how much we need to be saving every year, and to satisfy the IRS that we should be saving money, a group of qualified engineers conduct a survey of our neighborhood every 3-4 years. They evaluate all of our structures and estimate when items will need to be fixed and how much it will cost at that time. Based on this evaluation, they can tell us how much we need to save to ensure we have the funds available when these items need to be fixed. With this information in hand, we set aside a port
