Budgets, Costs and Dues

There is an annual Operating Budget, 

And there is a long term Reserve Budget

See the Policy on Reserve Requirements to learn more about the reserve budget

See Budgets to learn more about, and to inspect the current operating  budget

See Annual Budget/Dues Process to learn how the budget is constructed

The Villas has an Investment Account, at Schwab, where we keep our reserve funds

See Policy on Investment of Reserve Funds to learn more about how it is managed

We also have two Bank accounts, one for Operating expenses, and one for near term Reserve expenses. 

See Financials to inspect the history of actual expenses

Our monthly dues cover three categories of expense: 

1. The expected/budgeted annual operating expenses

2. The repayment of our roofing loan

3. Contribution to the reserve fund for future large expenses

If we have unexpected operating expenses, we have to reduce our contribution to reserves for that year. 

Since 2022 we've had these kinds of unexpected expenses several times:

1. The cost of insurance jumped by more than 100% after the Marshall Fire

2. Our irrigation system required emergency repairs in 2024

This year (2026) the board budgeted a significant increase to the reserve contribution to try to get our reserves back to the level where they should be