What are the Four Funding Principles?
The Funding Plan is the recommended action plan by which the association provides income to the Reserve Fund to offset anticipated Reserve expenses. Reserve contributions are recommended for the initial year within the context of a 20- or 30-yr plan, the Funding Plan is created based on four distinct principles. Sometimes these four principles all point to one solution, sometimes they have to be balanced against each other in the best interests of the association and its members: