HomeMy WebLinkAbout0130 ARTICLE VI
FISCAL MANAGEMENT
The provisions for fisca~ management of the Associatian set forth in the Declaration of
Condominium and Articles of Incorporation shall be supplemented by the following provisions:
A. Accounts . The receipts and expenditures shall be credited and charged to
accounts under the following classifications as shall be appropriate:
(1) Current expenses, which shall include all receipts and expenditures within
the year for which the budget is made. including a reasonable allowance for conringen-
cies and working funds, except expenditures chargeable to reserves, to additional im-
provements or to operations . The balance of this fund at the end of each year shall be
~ applied to reduce the assessments for current expense for the succeeding year .
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~ {2) Reserve for deferred maintenance, which shall include funds for maintenance
~ items that occur less frequently than annually .
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~ .(3) Reserve for replacement, which shall include funds for repair or replacement
~ required because of damage, depreciation or obsolescence.
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~ (4) Betterments, which shall include the funds to be used for capital expenditures
~ for additional improvements or additional personal property that will be a part of the
- common elements . .
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y:; (5) Operarions, which shall include .gross revenues from the use of commom ele-
:y ments and from other sources . Only the additional direct expense required by any reve-
nue producing operation will be charged to this account. and any surplus from any oper-
~ arion shall be used to reduce the assessments for current expense for the year during
~=i which the surplus is realized, or, at the discrerion of the Board of Directors, in the year
following the year in which the surplus is realized. Losses from operations shall be met
by special assessments againsi condominium unit owners, which assessments may be
made in advance in order to provide a working fund.
= B . Budget . -
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1. Adoption by Board of Directors . The Board of Directors shall adopt a budget
ior each calendar year that shall include the estimated funds required to defray the common
_ expenses and to provide and maintain funds for the foregoing accounts and reserves . The
` adoption of a budget shall comply with the requirements hereinafter set forth:
- (a) Norice of ineering. A copy of the proposed budget of common expenses shall
be mailed to each unit owner not less than thirty (30) days prior to the meeting at which
- the budget will be considered, together with a notice oi that meeting indicating the time
and place of such meeting .
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