Budgets Reserve Fund

July, 2009
The devil’s in the details
 
Maintenance fees are a necessary evil, and while running a condominium is an expensive job, everyone benefits from a well-funded and professionally-run building. But for the owners of newly built condominium buildings blissfully enjoying their first year in their new home, the turnover from developer to condominium board can come with a huge shock hitting them right in the pocketbook.

February, 2009
Opportunity costs knock off alternatives
 
In most condominium corporations the first review of the forthcoming year’s budget traditionally occurs 90 days prior to the current year end. However the collection of the data and information necessary for the budget should be underway throughout the prior fiscal year.

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February, 2009
Reserve fund investing for maximum returns
 
Reserve Funds investments have unique characteristics. They are classified as fixed income investments, because they consist only of bonds, bond equivalents, or cash. They do not contain any equities. However, unlike normal fixed income investment accounts, reserve fund accounts have continuous monthly cash flows. Contributions are coming in every month, investment maturities, and interest received, add to the cash when they occur, and expenditures deplete cash at irregular times. Therefore, to consistently get the best investment returns, future cash flow should be estimated as accurately as possible.