Fairways at Legacy Trails

Reserve Fund

Definition and Purpose

The reserve fund is money set aside for reserve (replacement) expenses. Reserve expenses are major expenses that occur other than annually and which must be budgeted for in advance, in order to provide the necessary funds at the time of their occurrence. When those expenses are incurred, they could have a significant effect on the smooth operation of the budgetary process from one year to the next if they were not reserved for in advance.

Examples of Reserve Fund Expenses

One example of an reserve fund expense is asphalt overlays and repairs. We can expect to pay approximately $65,000 - $95,000 to repair our streets. So, it is very important to set aside monies for reserve expenses the HOA will inevitably incur. Other expenses include (but are not limited to):

- Street signs
- Gate and keypad maintenance and replacement
- Irrigation of common areas
- Fencing (wrought iron and stone)
- Maintenance of common sidewalks

Current Status

Fortunately, the Board of Directors, over the last three years, has budgeted appropriately and can proudly say our reserve fund is 100% funded.