Budgets and Reserves Clause Samples

Budgets and Reserves. In accordance with the Association Documents, the Manager shall prepare an annual budget for the management, operation and maintenance of the Managed Elements, including the amounts to be allocated for reserves for replacement, repair and upgrading of the Managed Elements as may be reasonably necessary to cause the Managed Elements to comply with Hotel Standards and the Declaration (“Reserve Amounts”). Such budgets and the Reserve Amounts shall include, without limitation, amounts necessary to maintain and replace, as reasonably determined by Manager, pool chairs and lounges, repair and replace pool and deck lighting, repair and resurface the pool and pool deck and repair and replace pool equipment including pumps, filters and the like regardless of whether such costs and expenses are capital costs or operating costs. Such budgets and Reserve Amounts shall be submitted for approval by the Board of Directors of the Association (the “Board”) pursuant to the Declaration. The Manager will consult with the Association whenever there are deviations between actual and budget line items. The Association shall disburse funds to the Manager pursuant to the approved budgets as provided in such budgets. The Association also shall allocate from Annual Assessments (as defined in the Declaration) the Reserve Amounts approved by the Board and as necessary for purposes of maintaining the Managed Elements consistent with the Hotel Standards and the Declaration.