We have two "reserve" funds/

Suggest you obtain the AICPA document as it defines or poses “ground rules”.
See: Common Interest Realty Associations — AICPA Audit and Accounting Guide
The Audit and Accounting Guide summarizes applicable practices and delivers "how-to" advice for handling almost every type of financial statement. It describes relevant matters, conditions, and procedures unique to realty associations, and illustrates treatments of financial statements and reports to caution auditors and accountants about unusual problems.
https://www.cpa2biz.com/CS2000/Products/CPA2BIZ/Publications/Sub+3/Common+Interest+Realty+Associations+%97+AICPA+Audit+and+Accounting+Guide+%5BSubscription%5D.htm
In our case (500 unit co-op) in NJ, we have two reserves, e.g.; short term liquid cash and long term capital improvements.

In addition, we have a line of credit. We have a “standard” capital improvement assessment each year. We collect it during the middle six months.

Until the reserve fund is replenished, we sometimes find it necessary to obtain funds to pay contractors and vendors. To this end, we use our line of credit.

But do note that we repay the line of credit before year end and that we never use the line of credit as working capital.