Monthly Matters
Reserve Planning: Building a Strong Future for Arbor Grove
Posted on October 26, 2026 6:00 AM by Rosemary Wieliczko
“It is incumbent upon each of us to improve spending and savings practices to ensure our own individual financial security and preserve the collective economic well-being of our great society.”  - Ron Lewis
 
In the ten years Arbor Grove Homeowners Association was turned over to our homeowners, the Board and homeowners have consistently stayed on top of our financial stability and continued building our reserves. (Special thanks to the Finance Committee!)
 
Before we dive into too much, a little history. 
 
How Our Reserve Planning Began
 
When the community assumed responsibility for the HOA in 2017, the newly elected Board inherited no reserve funds. Yes, that’s right. Our reserve balance was $0.00. Monthly HOA fees had not increased for several years, and the money collected covered only operating expenses. With limited resources, the Board turned to undergraduate engineering students at Olivet Nazarene University. Working with local architects and their instructors, the students developed Arbor Grove’s initial reserve study. That study has guided our planning ever since and is updated each year to reflect current costs and planned expenses.
 
So what now?
 
Planning for Arbor Grove: Our 2027 Reserve Study
 
Arbor Grove is planning an updated reserve study in early 2027 to help our community prepare for future repairs and replacements. This is an opportunity to build on the planning that began in 2017, take a fresh look at our shared property, and better understand the expenses ahead.
 
What Are Reserves—and Why Do They Matter?
 
Reserves are funds set aside for major repairs and replacements of the association’s shared assets. Unlike operating funds, which cover day-to-day expenses, reserves help prepare for longer-term needs. Roofs age, pavement cracks, and mechanical systems wear out. Although the timing and cost of these projects vary, planning ahead helps the community address them when needed.
 
These expenses exist whether or not money has been set aside. Reserve funding spreads the cost over time through budgeted assessments, rather than leaving owners to face a large expense all at once. Without sufficient reserves, the association may need a special assessment or a bank loan. Planning ahead reduces reliance on those options, and reserve funds can earn interest until they are needed.
 
Understanding Reserve Fund Health
 
One measure used in reserve planning is “percent funded.” It compares the money currently in reserves with a benchmark based on the age and condition of the association’s assets. As those assets age, the amount that ideally would be set aside grows. A reserve fund at 100% of that benchmark is described as “fully funded”; at 50%, it holds half the benchmark amount. This offers a way to understand how prepared the association is for future expenses.
 
What This Means for Arbor Grove
 
Reserve planning is about more than a fund balance. It supports timely maintenance, more predictable budgeting, and the long-term care of the community we all share. Well-maintained property and sound financial planning can also make a community more attractive to prospective buyers.
 
Looking Ahead to the 2027 Reserve Study
 
At the Finance Committee’s recommendation, the Board has set aside funds to update Arbor Grove’s reserve study. After research and interviews, the Board selected a Midwest-based company. The Reserve Study project is planned to begin in early 2027. The study will include an on-site visual inspection and a review of the association’s shared assets. The study will provide an updated foundation for planning future repairs, replacements, and reserve funding.
 
The inspection and review will clarify our community’s future repair and replacement needs and guide discussions on reserve funding. The study is a planning tool—not, by itself, a decision to change HOA fees or begin every identified project.
 
As the study progresses, the Board will keep owners informed and is committed to sharing more about the findings and what they mean for Arbor Grove’s future.
 
Thank you to the dedicated individuals and committees who help care for our community. Their efforts—and thoughtful planning today—help keep Arbor Grove a place we are proud to call home.
 
Comments
Comment By: Lana Berns
Posted on October 26, 2026 6:51 PM
Thank you for this informative, well-written article. We appreciate all the work put into keeping Arbor Grove residents financially prepared for inevitable expenses.