Surplus Funds and Closed Meeting Minutes in Colorado HOAs

Question:

Two quick questions:

1) Surplus funds – what is a reasonable amount or % of total budget?

2) Closed Executive Session meeting minutes – Are these required to be posted?

– Henry

 

Answer:

Hi Henry,

There is no universal percentage of the budget that would constitute a reasonable amount for surplus funds. However, if you have surplus funds, it might become taxable income for your association. You can choose to carry over the surplus funds to the next year’s budget or return the surplus to the homeowners to avoid additional taxation. The Colorado Common Interest Ownership Act actually tackles surplus funds in Section 38-33.3-314, stating:

“Unless otherwise provided in the declaration, any surplus funds of the association remaining after payment of or provision for common expenses and any prepayment of or provision for reserves shall be paid to the unit owners in proportion to their common expense liabilities or credited to them to reduce their future common expense assessments.”

As for closed executive meetings, Section 38-33.3-308(7) states:

“The minutes of all meetings at which an executive session was held shall indicate that an executive session was held and the general subject matter of the executive session.”

The statute does not indicate whether or not the minutes must be posted. However, you should check your governing documents to see if there are any requirements concerning this.

Disclaimer: We are not lawyers. The information provided on this website does not constitute legal advice.

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