RESERVING FOR
GOLF COURSE GREENS

QUESTION: A question keeps coming up regarding replacement of golf course greens. Should they be on replacement reserves and therefore funded by all members or should replacement be treated as normal maintenance and paid for by only golfers?

ANSWER: If the greens last 12 months or less, they are treated as maintenance and are paid for out of the operating account. If the greens last over a year, then reserves should be set aside to replace them at the end of their useful life. All other components related to the greens, such as base for the turf, drainage systems, and irrigation equipment are reserve items since they are not replaced annually.

For a list of companies that specialize in providing reserve studies for community associations, see our Service Directory.

Updated by ADAMS KESSLER 4/26/2008