Instrument #2022025031 #30 Book:8196 Page:4801
Section 6.03. Determination ofAnnual Assessments.
(a) Budgets and Reserve Fund Contribution. The Board shall annually prepare a budget that sets out the Association's annual operating expenses ("Budget"), which Budget must: (i) reflect the estimated revenues and expenses for that year and the estimated surplus or deficit as ofthe end ofthe current year;(ii) set out separately all fees or charges paid for by the Association for recreational amenities, whether owned by the Association, the Declarant, or another person or entity;(iii) if adopted by the Board, include reserve accounts for capital expenditures and deferred maintenance for which the Association is responsible, including, but not limited to, the Common Area; and (iv) comply with FL. STAT. §720.303(6)(a) and (b), taking into account the number and nature of replaceable assets, the expected life ofeach asset, and the expected repair or replacement cost to be incurred by the Association, and, ifadopted by the Board,shall establish a reserve fund for such anticipated expenditures.In the event the Board establishes a reserve fund, the Board shall set the required reserve fund, if any, in an amount sufficient to permit meeting the projected capital needs ofthe Association, as shown on the Budget, with respect both to amount and timing of Annual Assessments over the period of the Budget. The reserve funds required, if any, shall be fixed by the Board and included within and distributed with the Budget and any applicable notice of Annual Assessment. Any reserve funds established by the Board shall be held in an interest-bearing account or investments. The first Budget promulgated or adopted by the Declarant on behalfofthe Association must designate therein the components for which reserve accounts and funds may be used. (b) Adoption of Operating Budget. The Association shall mail to each Member a copy ofthe Budget and projected Annual Assessments approved by the Board to be levied for the next Fiscal Year at least thirty(30)days prior to the end ofthe Association's current Fiscal Year. The Budget and Annual Assessments set forth therein shall become effective unless disapproved at a special meeting ofthe Members held not later than sixty(60)days after the proposed Budget and Annual Assessments are mailed to the Members.To be effective,the disapproval ofthe proposed Budget and Annual Assessments must be by a vote of two-thirds (2/3) of the membership of the Association, without regard to membership class. Ifthe membership so disapproves the Budget for the succeeding year, or ifthe Board fails to propose a Budget or the Annual Assessments, then the Budget and Annual Assessments for the preceding year shall continue in effect until a new Budget with Annual Assessments is determined or adopted. (c) Allocation of Annual Assessments Among Lots. The Budget and Annual Assessments ofthe Association shall be assessed against all Owners and Lots within the Property in an equal amount per Lot. At the discretion ofthe Board,the Annual Assessments for any year may be paid by Owners in monthly installments, due and payable on the first (1st) day of each month; in hi-annual installments, due and payable by the first (1st) day of January and July of each year; or in quarterly installments, due and payable by the first (1st) day of January, the first (1st) day of April, the first (1st) day of July, and the first(1st) day of October of each year. In the event of such deferred payments, the Board may, but shall not be required to, charge a uniform, lawful rate of interest on the unpaid balance. The Board may accelerate the balance of any Annual Assessment upon default in the payment of any installment thereon or any other Assessment due hereunder. Absent any such determination by the Board permitting payment in monthly, hi-annual, or quarterly installments, the Annual Assessment for any year shall be due and payable by January 1 ofsuch year. Any Annual Assessment not paid by January 15, if payable in one lump sum, not paid by the fifteenth (15th)day of January and July, if allowed to be paid bi-annually, or paid by the fifteenth(15th)day ofJanuary, April, July, and October, if allowed to be paid quarterly, or on the fifth (5th) day of any month, if allowed to be paid monthly, shall be considered delinquent.
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58771933;7
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