Budgeted Gross Expenses
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BUDGED GROSS EXPENSES

"Budgeted gross expenses" means all expenses in an association's budget, both operational expenses and reserve contributions. The statute could have have said budgeted operating expenses which would exclude reserves but it didn't. (Civ. Code §5605(b).) Therefore, reserve allocations are included in the 5% calculation for board-approved special assessments.

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Adams Stirling PLC