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Bolster Levy
A special assessment approved by the owner group for the purpose of proactively increasing the balance in the reserve fund to address a reserve backlog rather than a reactive need to finance a particular capital project.


Evaluation
Listed below are some of the merits of a bolster levy:
  • The additional funds in the reserve account may enable the owners to leverage additional interest income from the reserve balance.
  • A bolster levy is one technique in a backlog reduction strategy.
  • The bolster levy will immediately lower the unfunded liability.
Listed below are some of the limitations of a bolster levy:
  • It may be difficult to convince the owners to approve the infusion of funds on a proactive basis.
  • The bolster levy may be quickly consumed on impending capital projects and thereby negated.
Three different types of funding trajectories - linear, incremental and lumpy.
Fig. Three different types of capital funding trajectories: linear, incremental and lumpy. A bolster level, if sufficient in size, may enable the owners to move to the "green" trajectory line,. 

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