If you think that refraining from funding the reserve account is expensive try not funding the reserve account. Special assessments, loans, deferred maintenance and lower property values are much more expensive to an HOA community. 

Reserve study goals and typically different than accounting goals and are typically used for different purposes. 

What is a reserve account for common interest communites like condominiums, PUD and HOA. 

Comparing reserve account balances is not appropriate but there is a measurement known as Percent Funded which is helpful. 

An Associating will usually have several options to consider when facing common area expenses related to poor installs other factors which have diminished the useful life of the component.