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Investing Our Reserve Funds

In 2015, the Association started the first fully funded Reserve Fund. By 2022, the Association began working with local Financial Planners to earn returns on our Reserve Funds.

We are Partnering with Financial Advisors to Earn Returns on our Reserve Funds

In June of 2022, the Board of Directors, after reviewing a recommendation from the Finance Committee, approved a motion to have staff move our reserve funds to our new financial planner StrongBox Wealth.

If our reserve investments can help us keep up with inflation, then this can help us keep dues down in the future. By making sound investment decisions outside of a Money Market environment, the gains we make will help to mitigate the impact of inflation over time.

Our Investment Policy

Policy # 6 | Financial Management Policy

This was updated in April 2022 to provide the following guidance:

    • When addressing excess funds beyond checking or savings that are earmarked for future projects, it is better to save and earn money on it rather than use credit.
    • Property Owners Associations should not, as a rule, have to borrow money if proper planning and funding is in place.
    • The goal to beat inflation plus a factor–our Accounts are designed to beat inflation.
    • We are investing with a posture to grow, but very conservative – but with growth tools to beat inflation.

See Policy # 6 | Financial Management Policy below

Governing Documents

Our Investment Categories

StrongBox Wealth has organized our reserves into different accounts, based on needs.

Different Accounts require different Levels of Liquidity:

Main Account

Moderate liquidity required. Long term reserves required for future repairs and asset replacement.

Vision Reserves

High liquidity until loans are paid off. Then very low liquidity.

All Parcels Account

High liquidity to perform annual maintenance with some long term reserve requirements.

Lakewood Bay

Lakewood Bay is a Maintenance Provided Parcel. Moderate liquidity due to annual Parking Lot and Buildings Maintenance. Long term reserves are growing for roofing replacement and siding / paint.

  • Clubhouse – This is for the LPOA Pavilion that is a newer and low maintenance building with a lifetime roof. Long term reserve required for future repair or replacement.
  • Desiltation – Moderate liquidity. Long term reserve is required to save up for main lake desiltation.

Tracking Our Investments and Monitoring their Performance

Every quarter, our financial planner meets with and addresses the Finance Committee and the General Manager along with the Corporate Treasurer in the Finance Committees quarterly meeting.

The investments are discussed and any adjustments are considered. The Finance Committee documents their recommendation in the quarterly meeting minutes and submits the minutes to the Board of Directors.

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