As of May 31, 2025, WNCC No. 37’s Reserve Fund – the account set aside for long-term capital repairs and replacements (like roofs, boilers, and elevators) – appears healthy on the surface. But a closer look reveals some important caveats that owners should be aware of.
This is the kind of analysis your board should have already done and shared. It’s basic due diligence – not rocket science.
đź’Ľ What the Numbers Show
🔹 Total Reserve Assets:
$1,529,315.46
This includes two major components:
- Bank Reserve (BMO): $700,998.73
- Investments (Holdings): $683,110.28
These are solid figures and suggest that the fund has been building appropriately – at least in dollar terms.
đź“Š Total Net Worth:
$1,381,800.74
This represents the actual value of the fund once current liabilities are subtracted. Still a strong number – but…
📬 Accrued Payables (Outstanding Reserve Fund Obligations):
$147,514.72
This is money already committed to capital projects or services – meaning it’s not truly “available” for other needs.
🚨 Why This Matters
- Not All Reserve Money Is Available:
The $147K in outstanding obligations means that while the fund looks flush, some of that money is already spoken for. It cannot be freely redirected or used to plug holes in the operating budget – even though the board has already tried to do exactly that. - Borrowing from Reserve Weakens Stability:
As outlined in your Operating Fund post, the board has already borrowed over $67,000 from this fund to cover day-to-day expenses – a move that puts future capital projects at risk. - Sustainability Requires Planning:
With aging infrastructure and large capital projects always looming, maintaining a healthy reserve is not just best practice – it’s a legal obligation. The Condominium Act requires that reserve contributions be adequate to fund upcoming repairs without issuing special assessments.
đź“Ś What Owners Should Be Asking
- What is the plan to repay the Reserve Fund for money borrowed by the Operating Fund?
- Has the board properly disclosed all capital expenditures and reserve obligations to owners?
- Are there any deferred projects that have not been communicated?
- Was the required Reserve Fund Study updated on time, and is the current funding plan aligned with its recommendations?
đź“Ł Final Thought
The Reserve Fund is the financial backbone of a condo corporation. When used properly, it protects owners from special assessments and ensures long-term repairs are funded without crisis.
But when it’s mismanaged, used to mask deficits, or tapped to cover legal expenses, it becomes a lifeline slowly fraying.
This analysis is straightforward – it’s what your board should be providing regularly, especially when the corporation is spending hundreds of thousands on legal fees and hidden projects.
Instead, the numbers tell a quiet story of risk, misdirection, and missed communication.
It’s your money.
You deserve to know where it’s going – and whether it will still be there when it counts.
