§8715 Limitations on Obligation of Funds

Summary

Each year during the covered period, the Board cannot promise to spend more money than the sum of three amounts: 73% of the year’s estimated assessments, 73% of the assessments actually collected in the most recent audited year minus the estimate already counted for that audited year, and any unused amounts carried over from earlier years. For the 9th and 10th fiscal years that start on or after October 5, 2018, the first item uses 62% of the most recent audited year’s collections instead of 73%. Any assessments collected above the yearly limit must go into an escrow account for the covered period. The Board cannot use, spend, or borrow those escrowed funds during the covered period, and any interest earned also stays in escrow and cannot be used. After the covered period ends, the Board may take out and use up to one-fifth of the escrow balance each fiscal year. The covered period begins on October 5, 2018, and ends on the last day of the 11th fiscal year that starts on or after that date.