Do you automatically place exce4ss funds in the capital reserve funds?

Do you not separate ordinary income from capital improvements for “tax purposes” for the owners? Your CPA should be advising on this.

Do the bylaws elsewhere stipulate that there are to be several reserve funds?

If yes, then capital reserves and ordinary working capital reserves need not be commingled and should not be commingled. Again your CPA firm should be offering counsel. Thus, if there is a need for capital improvements, one can ensure that there is less than $15,000 in the “capital” reserve fund after the board commits to spend it, regardless if a contract has been signed for the capital work.

Again pass this through the corporate counsel and CPA firm.

And, maybe plan on changing the bylaws to more clearly state the restrictions and to reduce 100% to something tolerable.