Summit House finances are quite simple. It pays its monthly bills like water, electricity and payroll. Then it sets aside money, about $50,000 a year, to maintain its infrastructure, larger projects. Our current dues are able to do both of these.

Someone might say, "What about reserves? Aren't they the Gold Standard of condo finance?" Actually, reserves are not the Gold Standard of condos. We all know a condo in Florida collapsed. If that condo had had a million $ in reserves, it still would have collapsed. A flaw in that building was not repaired. Money spent on maintenance makes a condo successful, not money sleeping in a bank account.  

In Summit House, we know from history how much we need to spend on infrastructure. It's about $50,000 per year on average, more some years, less others. Our reserves go up and down accordingly. This $50,000 is the key. 

Those serving on the Board and the Treasure at any time, then, need to match the rate of spending on infrastructure with the rate our dues become available. The $50,000 comes in every year. Infrastructure spending must be $50,000 averaged over several years, an eight-to-ten-year period. 

For years, I've recommended to Board members they make three categories of infrastructure projects:

Category A: These are projects that need to be done as soon as possible. They are needs that either add costs to Summit House or involve safety. These are paid for either from money available at the time or by borrowing from our line of credit at our bank. 

Category B: These are infrastructure assets on the last half of their lives. They currently are functioning successfully but need to be monitored. They are put in the cue for funding from the annual $50,000 available for this purpose.

Category C: These or assets in the first half of their lives but need to be acknowledged as future needs. 

Economics 101 of Summit House tell us our dues are currently adequate for long term sustainability. Yet, we are always learning and that need continues.