We need to make some cosmetic capital improvements as well as fix plumbing and other less sexy things in our building. Some of the Board Members always want to pay for things on the credit line and pay back a menial amount each month, or charge an assessment. Is there a prevailing rule of thumb when to use what? We will never pay back the credit line at this rate, and we have built up a small reserve in the past couple of years. The mortgage and the credit line will come due in 5 years and the people leaning toward using the credit line and assessments will not be here then-they are planning on selling in the next year. It seems like they would prefer to only attend to the cosmetic fixes and leave the reserve fund and operating account looking bulked up to make the financials and the building more attractive. What is the rationale for when to use what? Is there an advantage to looking like we have more cash on hand? We;re $10000 into our credit line and making only a couple of hundred over our expenses every month. I need to have an answer as to why it is not good to use our credit line if that is the case. Thanks for advice.
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