Committee Purpose

One of the most important responsibilities that any POA/HOA has is to adequately fund a reserve account that is sufficient to pay for the repair and replacement of the POA's assets. If sufficient reserves are not built up and maintained, significant required spending could necessitate a special assessment to all owners, which no one wants to see happen.

It is also important that this Reserve Fund is only used for the repair and replacement of the assets already owned by the POA and included in the Reserve Study and Fund. If new assets were purchased with these funds, we would effectively be spending money
that we don't have, since the Reserve Study does not include any allowance for the purchase of new items.

Therefore, a new Capital Improvements Fund was created for this purpose. This is not an effort to allow for spending that would otherwise not be subject to the normal Board approval process and in the best interests of the Skylake community, but rather to
ensure that when such spending on new items is necessary, it is done using funds set aside for that purpose, and not taken from our Reserve Fund.

The Capital Improvements Committee will meet annually during the budget preparation time period to review projects that may qualify for use of this fund, and will make recommendations to the Board for any proposed projects for the following year. Those
projects would then be subject to the normal Board review and approval process.