Inadequate CapEx Reserve Funding Visibility in Assessments

$15,000-$40,000 annually in hidden understaffing (time spent on manual forecasting) + risk of member litigation if assessments deemed inadequate • $30,000-$75,000 annually in lost member equity (attrition) + reputational damage leading to slower new member recruitment • $40,000-$100,000+ annually per 5-10 resigned members × lost annual dues + initiation fee forfeiture

Department heads and GMs informally lobby for projects and funding using ad hoc capex lists, basic aging spreadsheets, email threads, and committee meetings instead of a unified, forward‑looking reserve model that connects each project’s true lifecycle cost to dues and assessment decisions. • Excel spreadsheets with manual depreciation calculations; Email chains with department heads; Paper reserve studies from 3-5 years ago; Scattered notes on replacement schedules • PowerPoint slides rebuilt annually with vague percentages; Verbal explanations to board without written reserve analysis; Last-minute crisis calls to accountant for numbers