Funds are to be established to provide financial strength and stability to the association and to avoid the necessity of large, special assessments against the members; the purpose of the funds, the procedures for placing monies into the funds and the maximum balance that can be accumulated in the funds are defined within.
Rule 1. Operating Fund
An Operating Fund will be maintained to receive all cash revenue and to pay all association expenses and is the conduit to other Funds.
Rule 2: Reserve Funds and Reserve Fund Analysis
A Reserve Fund shall be maintained by the association, as required by Utah law, to accumulate money to cover the cost of repairing, replacing, and restoring common areas and equipment that have a useful life of no fewer than 3 years but less than 30 years when the cost cannot reasonably be funded from the association’s general budget or from other association funds.
A complete reserve analysis shall be conducted by the board of directors or a committee assigned by the President of the board of directors no less frequently than every six years and shall be updated annually.
Each year, the board of directors shall provide a summary of the most recent reserve analysis, including any updates, to each lot owner; and shall provide a complete copy of the most recent reserve analysis to any MLPOA member in good standing upon request.
In formulating the budget each year, the Manor Lands Treasurer shall include a reserve fund line item in an amount equal to 50% of the annual property dues revenue.
The Reserve Funds may not be used for purposes not covered in the Reserve Analysis.
Rule 3. Perpetual Roads Fund
A perpetual roads fund is to be maintained by the board of directors of the association. The purpose of which will be strictly to repair and maintain Manor Lands Roads. In formulating the budget each year, the Manor Lands Treasurer shall include a Perpetual Roads Fund line item. The amount of the line item is to be determined by adding unspent current year’s road budget as of December 31st each year to previous year’s unspent road budget monies carried forward. The amount of the Perpetual Roads fund is not to exceed $50,000.
The perpetual Roads Fund may not be used for purposes other than maintaining and repairing Manor Lands Roads.