§8715 Limitations on obligation of funds

Summary

Limits how much money the Board can commit each fiscal year during the covered period. The yearly limit equals three parts added together: 73% of the Board’s estimate of assessments to be collected that year; 73% of the assessments actually collected in the most recent audited year (minus the estimate already used for that audited year); and any unused amounts that were allowed to be committed in earlier years. Any assessments collected above that limit must go into an escrow account and cannot be committed, spent, or borrowed during the covered period. Interest on that escrow also stays in the account. After the covered period ends, the Board may withdraw and use up to 1/5 of the escrow balance as it stood on the last day of the covered period in each fiscal year. For the 9th and 10th fiscal years that begin on or after October 5, 2018, the estimate used in the first part is fixed at 62% of the most recent audited collections. Covered period: starts October 5, 2018, and ends on the last day of the 11th fiscal year that begins on or after that date.