Fund For Repairs
The Fund has been established to finance major repairs, renovations, and improvements when such costs both exceed $5,000 and cannot be financed by the General Fund. This fund is the primary source for financing such costs. As such it is important that substantial amounts be maintained in this fund.
This fund is maintained separate from all other VAC funds.
These funds may be invested in an insured money market interest bearing account, an insured (savings) certificate of deposit, or other accounts insured by FDIC or FSLIC. However, these funds should not be invested in a manner which would preclude their use by VAC when required.
An amount equal to depreciation expense, as shown in the VAC property records and the Statement of Income and Expense, is to be paid into this fund annually. However, in no instance should the amount paid into this Fund be less than $10 per share ($4,500) in any year subsequent to FY 1982.
Interest earned by this fund should be retained in the fund and not transferred to the General Fund.
Transfers from this fund to the General Fund must be approved by a majority of the Board of Directors. Approval for such a transfer may not be given unless (1) the transfer is for a specific major repair, renovation, or improvement project costing at least $5,000 and (2) there are not sufficient funds in the General Fund to finance the project.
Revised May 19, 2008