Thank you for your question.
From the numbers you provided, if annual expenses were $289,000 and their reserves are in the $700K range, they are not above the 3 times the amount of their expenses range yet. The customary amount they will hold in reserve is 2 to 3 times their annual expenses and that is prudent in case for some reason one year they cannot pay annual expenses they have the money available to do so and also have money to make any major capital repair that is required.
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