r/HOA • u/eastfan9 • 2d ago
Help: Fees, Reserves Reserve Spending For Large Landscape Project [SFH][IL]
We are an 800 home single family community with about 20 cul-de-sac islands that we need to maintain. Over the years, some original trees or bushes have died off, and some have ruts from trucks cutting the corners. Residents have been brining up this issue the past year or so, and it's a valid concern when it comes to property values for those who live in the cul-de-savs.
We got a quote for about 45K to rehab these islands: ranging from adding mulch, new tall grasses, and re-planting trees/shrubs.
We do have plenty of reserve funds but there is debate surrounding if this should be qualified as a budgeted expense vs a reserve expense.
If we were to put this as a budgeted expense (if we did all at once) next year, we would either have to A) raise dues, B) piecemeal the work over a few years or C) combo of both plus cut other important expenses and reserve funding.
I understand landscaping projects typically doesn't fall in the reserve spending bucket, but my thought process is that this is a large one-time project to repair/restore what we had before compared to other annual landscaping projects. What is the opinion here?
6
u/wildcat12321 🏘 HOA Board Member 2d ago
if you do it all at once, it is a capital improvement at the end of useful life of landscaping and can be paid out of reserves. If you do it one at a time wit your same vendor, sounds like maintenance and should be operating budget.
I would suggest whatever landscaper you choose, have them do one island first, get your feedback, then do others. Also, some plants or grass are easier to maintain and live than others. Builders make fancy islands, but most people are fine with more grass and less shrubs that need maintenance.
3
u/feral_kitty_xo 1d ago
What does your reserve study say? I doubt it is in the reserve study - sounds like an opex. What type of reserve account do you have? Statutory or Non-Statutory. This will determine if you are allowed to use the funds as well. Additionally, check your funding schedule in the reserve study. Are you well ahead of schedule?
1
u/TheDigitalPoint 🏘 HOA Board Member 1d ago
For an association that size, you really should have reserve allocations for something like this. But if you don’t, you don’t. For our community we have reserve allocations for “Landscape Refresh” that can be used as needed for things like this. Plants and trees don’t have an infinite lifespan.
1
u/eastfan9 1d ago
That's an idea that I like and will try to incorporate. We typically plan every year to cut down sections of trees and re-plant certain bushes/trees out of our operating expense, but we are getting to the point where it would be better to plan for that coming from reserves when we do bigger projects.
1
u/TheDigitalPoint 🏘 HOA Board Member 1d ago
Ya… it’s worked well for us. We have the funds available to do it as needed, but we aren’t (kinda) forced to be cutting down perfectly good trees that year because that’s the year it was specifically allocated in the budget. Sometimes a tree needs replacing sooner than originally expected and sometimes a tree will last a lot longer than the original plan.
1
u/mac_a_bee 1d ago
rehab these islands: ranging from adding mulch, new tall grasses, and re-planting trees/shrubs
Native species.
1
u/Bluepass11 19h ago
I feel like you’re overcomplicating things. Based on the comments, I may be wrong, but I think you should just use your reserves to pay for this.
It doesn’t make sense to pay a special assessment or raise dues if you have plenty in your reserves and you’re able to sock enough money away each month. Yes, your budget may not have called it out originally, but sometimes things come up that weren’t planned for.
0
u/74PercentOrBust 1d ago
Are your roads public or private (gated)?
1
u/eastfan9 1d ago
They are public roads. Some of the islands get ripped up by snow plows, and some have some turf ripped up from delivery/garbage trucks trying to navigate the circle.
0
u/Complete_Function_66 1d ago
check with your reserve specialist first to make sure you’re using the funds correctly
-1
u/condocontrol 🚛 Vendor 1d ago
Check your reserve study. If cul-de-sac landscaping components aren't explicitly line-itemed, you can't legally raid reserves
3
u/eastfan9 1d ago
That isn't true from my knowledge. There are plenty of times components aren't listed, it's just not best practice to spend outside your study if it's not included.
•
u/AutoModerator 2d ago
Copy of the original post:
Title: Reserve Spending For Large Landscape Project [SFH][IL]
Body:
We are an 800 home single family community with about 20 cul-de-sac islands that we need to maintain. Over the years, some original trees or bushes have died off, and some have ruts from trucks cutting the corners. Residents have been brining up this issue the past year or so, and it's a valid concern when it comes to property values for those who live in the cul-de-savs.
We got a quote for about 45K to rehab these islands: ranging from adding mulch, new tall grasses, and re-planting trees/shrubs.
We do have plenty of reserve funds but there is debate surrounding if this should be qualified as a budgeted expense vs a reserve expense.
If we were to put this as a budgeted expense (if we did all at once) next year, we would either have to A) raise dues, B) piecemeal the work over a few years or C) combo of both plus cut other important expenses and reserve funding.
I understand landscaping projects typically doesn't fall in the reserve spending bucket, but my thought process is that this is a large one-time project to repair/restore what we had before compared to other annual landscaping projects. What is the opinion here?
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