Why can’t the amenity reserve pay for the new facility projects?
A. The amenity reserve was established by the amenity agreement between the POA and the developer. This amenity agreement, modified several times, was established to assure the developer was paid for amenities the developer built and turned over to the POA. These amenity reserve funds come from our monthly assessments. Before this “amenities agreement,” the POA did not have the “reserves” to pay the developer. As a result, the POA had to borrow money to finance those amenities. Thus, the annual calculation of the monies that are designated for the amenity reserve covers the debt payments for the Fitness Center, a Golf Course Note, the Wildcat Pool, and the land for the new clubhouse parking. Once these obligations are retired, this portion of the monthly assessments will be used for normal capital expenditures or payment of other POA loans. As part of the recommendation, the Committee recommends we replace the amenity reserve calculation with a more encompassing Capital Reserve Fund.
