Each month we pay dues to the association. These dues may be split among two cost centers, The Master cost center and a neighborhood cost center, e.g., The Landings or The Park. Each cost center has Operating and Reserve components. The Reserve component is based on a reserve study completed every three years and updated annually. The reserve study looks at the assets for which the association is responsible, determines their life span in years, and the future costs to maintain and or replace including inflation. These numbers are then used to set an annual budget. The funds collected per the budget are saved and invested until the asset requires repair or replacement. A reserve item is said to be 100% funded if the full yearly amount needed to maintain the item in the future is collected now. 100% funding seeks to avoid special assessments.