CONTENTS 1.0 INTRODUCTION EXECUTIVE SUMMARY... 2

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2 CONTENTS 1.0 INTRODUCTION EXECUTIVE SUMMARY PURPOSE & SCOPE PURPOSE SCOPE SOURCES OF INFORMATION DESCRIPTION OBSERVATIONS RESERVE FUND ANALYSIS CONCLUSION LIMITATIONS APPENDIX A: RESERVE FUND PROJECTIONS... APPENDIX B: PROJECT PHOTOGRAPHS... Preston Village

3 1.0 INTRODUCTION The Preston Village Homeowners Association authorized Criterium Giles Engineers to conduct a Reserve Study Update for Preston Village community located in Cary, North Carolina. This is an update of the Reserve Study dated October 22, Studies of this nature are important to ensure a community has sufficient funds for long-term, periodic capital expenditure requirements. Anticipating large expenditures over an extended period of time through a structured analysis and scheduling process assists the Association in meeting financial requirements without increasing the service fees above permitted maximums, borrowing the funds, or levying special financial assessments to the home owners. Typically, a community association has two broad cash requirements: the general operating reserves and the capital repair and replacement reserves. In this report, we will focus on those items falling under the capital repair and replacement reserve criteria. We have projected a capital repair and replacement reserve for twenty (20) years. The first ten years are the most reliable. Such a study should be updated every five years. This report is structured to analyze components of the community for which the Association is responsible and to assess a useful expected life and useful remaining life to those components. The anticipated scheduled repair or replacement of the component and the anticipated expense for the activity are then analyzed in conjunction with the current capital reserves funding program for the community. Funding program recommendations are made with the objective of limiting substantial cash excesses while minimizing financial burdens that can result from significant cash inadequacies. This report is intended to be used as a tool to determine reserve fund allocation requirements for the community, to manage future Association obligations, and to inform the community of future financial needs in general. The report that follows has been prepared from the perspective of what an owner of this property would benefit from knowing. Some items, beyond those of immediate concern, may be discussed. Therefore, the report should be read in its entirety in order to fully understand all of the information that has been obtained. Preston Village Page 1

4 2.0 EXECUTIVE SUMMARY Preston Village is a 711-member association with responsibility for the common area amenities and site improvements. The most significant improvements include the pool facility buildings, swimming pool, parking lots, play ground, gazebos, picnic shelter, storm water retention pond, drainage systems, entrance signage, fencing and landscaping improvements. The buildings, common areas and grounds are generally in good condition. Based on our evaluation, the current level of funding is adequate. Maintaining the current contribution rate is projected to maintain a healthy reserve fund balance over the term. We have provided an alternative for annual reserve contribution schedules that also provides sufficient funding to meet capital expenditure requirements in the next twenty years. A more detailed analysis of the reserve fund has been provided in Appendix A. Some significant expenditures are expected in the next few years. Some of the more notable examples are listed below: Repair and coat pool surfaces Repair/replacement of playground equipment Pond dredging/repairs There are, of course, other capital expenditures to be expected over the next twenty years. Those items that will require attention are discussed later in this report. Preston Village Page 2

5 3.0 PURPOSE & SCOPE 3.1 Purpose The purpose of this study is to update the reserve fund analysis and to determine a capital needs plan. It is intended to be used as a tool for the Preston Village HOA in determining the allocation requirements into the reserve fund in order to meet future anticipated capital expenditures for the community. This report forecasts obligations for the community twenty years into the future. It should be noted that events might occur that could have an effect on the underlying component or system useful life assumptions used in this study. Likewise, inevitable market fluctuations can have an impact on component or system replacement and repair costs. Therefore, a study such as this should be updated from time to time, usually on a three to fiveyear cycle, in order to reflect the most accurate needs and obligations of the community. 3.2 Scope This study has been performed according to the scope as generally defined by Preston Village HOA, Criterium-Giles Engineers Inc., PPM, Inc. and the standards of the Community Associations Institute. The findings and recommendations are based on interviews with the community s management personnel; a review of available documents; and an investigation of the buildings and site. The Cash Flow Method of calculating reserves has been utilized, whereby contributions to the reserve fund are designed to offset the variable annual expenditures. Funding alternates are recommended which are designed to achieve a Baseline Funding goal. The guidelines used to determine which physical components within the community are to be included in the component inventory are based on the following general criteria: 1. The component must be a common element, or otherwise noted to be the responsibility of the Association to replace. 2. The component must have an estimated remaining useful life of twenty years or less. As the site ages, additional components may need to be added. 3. The funding for replacement should be from one source only, not funded from another area of the budget or through a maintenance contract. 4. The cost of replacement should be high enough to make it financially unsound to fund it from the operating budget. Our reserve study analysis included evaluating the following association property: Site and Grounds: The storm water retention pond is the responsibility of the Association and is thereby included in this study. The anodized aluminum fencing around the pool and playground is maintained by the Association. Wood privacy fencing along Davis Preston Village Page 3

6 Preston Village Page 4 Drive, artificial turf within the playground, entrance monument signage and associated lighting and irrigation systems are also the responsibility of the Association and included in this study. Private Parking Lots and Sidewalks: The pool and picnic/playground parking lots are private and asphalt paved. Concrete sidewalks are also provided around the common areas. Buildings: The pool facilities buildings, picnic shelter, and the gazebos are the only common area buildings included in this study. Amenities: Common amenities include a swimming pool and associated equipment, playground equipment, picnic shelter, gazebos, site furniture and interior furnishings in the facility buildings. The above list was obtained from the site inspection and discussions with the management firm prior to the inspection. This study estimates the funding levels required for maintaining the longterm viability of the facility. Our approach involves: 1. Examining association managed equipment, buildings and site facilities. 2. Predicting their remaining service life and, approximating how frequently they will require repair or replacement. 3. Estimating repair or replacement costs (in 2015 dollars) for each capital item. 4. Using data developed in Steps 1, 2 and 3 to project Capital Reserve balances for Years 1 through 20. The statements in this report are opinions about the present condition of the subject community. They are based on visual evidence available during a diligent investigation of all reasonably accessible areas falling under the responsibility of the Association. We did not remove any surface materials, perform any destructive testing, or move any furnishings. This study is not an exhaustive technical evaluation. Such an evaluation would entail a significantly larger scope than this effort. For additional limitations, see Section Sources of Information Onsite inspections of the property occurred on the following date: August 5, 2015 The following people were interviewed during our study: Monica Legere (Community Manager with PPM, Inc.) Board members at meeting on September 8, 2015 The following documents were made available to us and reviewed: Wake county tax records Preston Village Reserve Study dated 10/22/10.

7 Preston Village HOA Income and Budget Statements 07/31/15 We based our cost estimates on some or all of the following: R.S. Means Our data files on similar projects Local contractor estimates For your reference, the following definitions may be helpful: Excellent: Component or system is in "as new" condition, requiring no rehabilitation and should perform in accordance with expected performance. Good: Component or system is sound and performing its function, although it may show signs of normal wear and tear. Some minor rehabilitation work may be required. Fair: Component or system falls into one or more of the following categories: a) Evidence of previous repairs not in compliance with commonly accepted practice, b) Workmanship not in compliance with commonly accepted standards, c) Component or system is obsolete, d) Component or system approaching end of expected performance. Repair or replacement is required to prevent further deterioration or to prolong expected life. Poor: Component or system has either failed or cannot be relied upon to continue performing its original function as a result of having exceeded its expected performance, excessive deferred maintenance, or state of disrepair. Present condition could contribute to or cause the deterioration of other adjoining elements or systems. Repair or replacement is required. Adequate: A component or system is of a capacity that is defined as enough for what is required, sufficient, suitable, and/or conforms to standard construction practices. All ratings are determined by comparison to other buildings of similar age and construction type. Further, some details of workmanship and materials will be examined more closely in higher quality buildings where such details typically become more relevant. All directions (left, right, rear, etc.), when used, are taken from the viewpoint of an observer standing in front of a building and facing it. Repair/Replacement Reserves - Non-annual maintenance items that will require significant expenditure over the life of the buildings. Included are items that will reach the end of their estimated useful life during the course of this forecast, or, in the opinion of the investigator, will require attention during that time. Preston Village Page 5

8 4.0 DESCRIPTION The community is comprised of 711 single-family homes with a swimming pool, large playground, picnic shelter, three gazebos, two parking lots and a storm water retention pond. The swimming pool center located on Preston Village Way, Cary was constructed in The pool center includes a concrete-lined swimming pool and kiddie pool with a concrete deck, a pool facilities building with restrooms, a chemical storage and pool equipment building, and various pieces of patio furniture. An asphalt paved parking area is located in front of the pool. Anodized aluminum fencing encloses the pool area. A large playground with numerous play structures is located on the site. Aluminum fencing surrounds the playground and some areas of the playground utilize an artificial turf ground cover. Adjacent to the playground is a grill area and picnic shelter with restrooms. Parking for the playground and picnic shelter is provided in an asphalt paved parking lot adjacent to the picnic shelter. A large gazebo is located in the center of the neighborhood on Circle On The Green. Two smaller gazebos are located on Frehold Court and on the pond adjacent to the playground. All of the gazebos and the picnic shelter are of wood construction and are roofed with Cedar Shingles. Entrance monument signage and landscaping is incorporated at the community entrances on Davis Drive and Morrisville Parkway. The monument signage is of masonry construction with a brick veneer. Site drainage is provided via landscaped and stone rip rap lined swales and catch basins in the paved and landscaped areas. These systems direct water flow off site and to a large retention pond located on Preston Village Way. 5.0 OBSERVATIONS The following key observations were made about the current condition of the more significant and costly common elements of the property. Site and Grounds The parking lot for the playground, picnic shelter and pool is showing some wear, but is generally in fair condition. It is evident that crack repair and sealcoating were recently completed. We anticipate the asphalt paving to have a remaining useful life of approximately 5 to 8 years. We have allocated funds to resurface the paving in Resurfacing would include minor milling at curbing and transitions and installing a new 1.5 to 2 thick wearing layer of asphalt over the existing paving. We have allocated funds for future crack repairs, resealing and striping the parking areas on a 7 year cycle beginning in 2028 (after resurfacing). Concrete flatwork on the property consists of concrete sidewalks around the pool, playground, gazebos, picnic shelter slab and the concrete pool deck. The concrete flatwork appeared to be in generally good to fair condition. Some limited cracking was observed in the concrete pool deck and the picnic shelter slab. Preston Village Page 6

9 Concrete curb and gutters surround the parking areas. We have allocated funds for periodic replacement of concrete flatwork and curbing as required and have assumed that 5% of the surfaces will require replacement every 8 years. The monument entrance signage appeared to be in good to fair condition. Some deterioration of the concrete signage in the form of cracking and spalling was noted. Previous crack repairs were evident in the masonry work at the entrance at Preston Village Way and Morrisville Parkway. We have allocated funds to repair and re-point the monument signage on a 4 year cycle beginning in Anodized aluminum fencing surrounds the pool and playground areas. The fencing appeared to be generally in good condition. This fencing will likely require minor repairs and painting on a 10 year cycle. We have allocated funds to repair and paint the anodized aluminum fencing around the pool and playground beginning in Portions of the playground utilize an artificial turf as ground cover. The turf appeared to generally be in good condition. We have estimated the artificial turf to have a useful life of ten years. We have allocated funds to replace the artificial turf beginning in Six foot tall wood privacy fencing has been installed along Davis Drive. The fencing was observed to be in good to fair condition. Some areas of warping were observed. To extend the useful life of wood fencing we recommend the application of a water proofing sealant/stain on a 5 year cycle. At this same time, minor repairs to the wood fencing will be required. We have allocated funds to complete minor repairs and to apply sealant/stain beginning in 2019 and on a 5 year cycle. Assuming minor repairs and sealant applications are completed in the interim, we anticipate the fencing to have a remaining life of approximately 15 years. We have allocated funds to replace the wood fencing in The board of directors feels that the repair/stain cycle is adequate to maintain the fencing, however we have provided an allocation of funds for full replacement in the future. Drainage systems in the community include swales, buried stormwater piping and creeks throughout the property. Most of the drainage systems appear to be located on municipal maintained drainage easements. However, sections of drainage systems are located on private sign and landscape easements and on association owned common areas which would be maintained by the association. Numerous catch basins in the paved areas lead storm water via concrete culverts to a large storm water retention pond in the center of the community. The drainage system appeared to generally be in good condition. We have allocated funds for drainage improvements in the association maintained areas on a 5-year cycle beginning in Drainage improvements would include repairing/stabilizing areas of erosion, re-trenching drainage swales, installing stone rip rap armoring/shore protection, repairing pond inlet/outlet structures and other repairs. Preston Village Page 7

10 The association maintains an approximately 3 acre pond located between the pool and picnic shelter. The pond generally appeared to be in good condition, however dredging is planned for the near future. We recommend the association hire a qualified pond maintenance company to perform routine maintenance on the pond including inspections of pond and inlet/outlet, debris removal, trimming vegetation, nuisance pest control, algae control and maintaining pond banks. We recommend the association maintains the pond to meet any applicable regulations and requirements. The association may consider bathymetric/sediment mapping to assist in determining sediment accumulation rates. This would include a baseline mapping in addition to periodic mapping to determine changes in pond depth/volume. This would allow more accurate determination of future dredging costs and frequency. We have allocated funds for sediment mapping on a 3 year cycle beginning in Over time, sediment will accumulate in the pond resulting in a reduction in depth and volume. The sediment will require periodic dredging. We have allocated funds for pond dredging in 2018 and on a 20 year cycle. The association maintains a significant amount of landscaping in common areas, around entrance signs and in medians and roadsides in the community. As requested, we have allocated funds for landscape overhaul projects on a 5 year cycle beginning in Common Building Exteriors The exterior of the pool buildings and picnic shelter are comprised of a brick veneer. The primary trim and soffit materials are wood. The roofs of the pool buildings are of asphaltic fiberglass three tab shingles. The roofs on the picnic buildings and gazebos are comprised of cedar shingles. The exterior doors are comprised of metal skins and were generally in good condition with the exception of the pool pump and chemical room doors. Limited rust and corrosion was observed at the bottom of the metal exterior door at the pool chemical room. This door is prone to corrosion due to frequent exposure to water and pool chemicals. We have allocated funds to replace this door on a 10 year cycle beginning in The remaining doors on the pool building appeared to be in good condition. Assuming the remaining doors are routinely painted and minor repairs to the openers and locksets are completed in the interim, we do not anticipate replacing the doors will be required over the term. Two roll up doors are installed at the snack bar and appeared to be in good condition. We have allocated funds to replace the roll up doors on a 30 year cycle beginning in The windows at the pool building are wood framed with thermal pane glass. The windows appeared to be in good condition and have an expected useful life of approximately 30 years. We have allocated funds to replace the windows beginning in Preston Village Page 8

11 The wood trim materials at the pool building and picnic buildings and gazebos are painted white and in fair to good condition. Areas of wood components at the gazebos and picnic shelter are un-painted pressure treated wood. The various exterior wood components have recently been repaired and the pool building has recently been painted. We have allocated funds on a 7 year cycle to repair and paint the exterior trim and doors on all of the buildings beginning in These repairs would include repairs to wood trim components and siding at the pool buildings. This would also include repairs as needed to the wood railings and trim components at the gazebos and dock. Any areas of deteriorating caulking should also be repaired during each paint cycle. Additionally, we have allocated funds to repair the wood decking and framing at the gazebos and dock on a 15 year cycle beginning in The brick veneer on the buildings appeared to be in good condition. We do not anticipate the need for repointing or significant repairs the brick veneer over the term of this study. The pool buildings roofs are clad with asphaltic fiberglass three-tab shingles, and appeared to be in good condition. Typically, roofing surfaces will last approximately twenty years. We have allocated funds for roofing replacement in 4 years. We strongly recommend that any re-roofing project closely follow procedures outlined by the National Roofing Contractors Association s Roofing and Waterproofing Manual. A re-roofing sequence should include removal of the existing shingle surfacing, replacement of any inadequate roof sheathing, replacement of any damaged flashing, and replacement of drip edge components. Water heater and other vent boot units at the roof surface typically deteriorate more quickly than roof shingles. We anticipate that all vent boots will be replaced at the same time as the next scheduled roof replacement, and that subsequent replacement will be covered within the maintenance budget. The gazebos in the community are of wood construction. The gazebos and the picnic shelter roofs are clad with cedar shingles. The gazebo and picnic shelter roofing appeared to generally be in good to fair condition. The cedar shingles are beginning to show signs of age and some gaps were observed in the picnic shelter. We have allocated funds to replace the gazebo and picnic shelter roofs on a 30 year cycle beginning in In the interim, we have assumed that replacement of individual cedar shingles will be completed as needed and funded from an annual maintenance budget. Replacement and repairs of cedar shingle roofs should be done in accordance with Cedar Shake and Shingle Bureau recommendations. Common Building Interiors The pool center restroom, office and snack bar walls are painted, and appear to be in good condition. We anticipate that the interior rooms will require repainting on a 7-year cycle beginning in Preston Village Page 9

12 The concrete floors in the building interiors appeared to be in relatively good condition and should not require maintenance (except for repainting) for the duration of the study period. Cabinets and countertops are installed in the snack bar room at the pool building and appeared to be in good condition. We have allocated funds to replace the cabinets and countertops on a 15 year cycle beginning in The restrooms at the pool and picnic buildings include commercial style sinks and toilets. The pool restrooms include partition walls. The fixtures and partition walls generally appeared to be in good condition and have an expected useful life of approximately 15 years depending on use. We have allocated funds for replacing the fixtures and partition walls beginning in Mechanical The pool pumps were operating at the time of inspection and appeared to be in good condition. The large pool utilizes a 10 Horsepower pump which was replaced in 2013 and five Aquatech sand filters. The small kiddie pool is serviced by a ½ horsepower pump and a small sand filter. We have provided funds for periodic repair of the pool pump and filtration equipment including replacing individual pieces on a 3 year cycle beginning in An electric water heater was located in the pool house. The water heater is a 40 gallon capacity unit manufactured by A.O. Smith in We have allocated funds to replace the water heater on a 15 year cycle beginning in We have allocated funds to replace the drinking water fountain on a 15 year cycle beginning in The entrance signage along Davis Drive is illuminated by several light fixtures. Approximately 30 community owned and maintained light poles were observed along the median at the entrances, around the pool parking lot and at the Circle On The Green. Exterior lighting was also observed at the monument entrance signs, around the gazebo at the Circle On The Green, the picnic shelter and overhead in the gazebos. We have allocated funds for repair and/or replacement of the pole mounted lights on a 15 year cycle beginning in The buildings include various light fixtures, electrical wiring and plumbing lines. We have allocated funds for electrical/plumbing repairs including fixture replacement on a 15 year cycle beginning in This would include replacing individual light fixtures as needed and repairing electrical and plumbing systems as needed. Most of the common landscaped areas are irrigated through a combination of drip and spray systems. Moisture sensing devices were observed as part of this system. While not functioning at the time of inspection, no problems were reported in conjunction with the irrigation system. We have Preston Village Page 10

13 allocated funds to repair the systems on a 5 year cycle beginning in 2 years. Access to the picnic shelter bathrooms and the pool is provided via an electronic key fob locking system. This system is powered by an emerge Browser Managed Security Platform. An Altronix closed circuit TV security system with several cameras was observed at the picnic shelter. The secured access systems and security camera systems are planned for replacement in late 2015 and we have allocated funds for future replacement on a 10 year cycle. Amenities The pool was operational at the time of inspection and appeared to be in good to fair condition. The surface coating appeared to be in good condition. The pool should be drained, cracks repaired and surface replastered on an approximately twelve year cycle. The cost of this work is calculated based on the surface area of the pool, and funds have been allocated for this beginning in Replacement of the pool furniture (approximately 110 total pieces) is scheduled on an 8-year basis. We noted that the predominately aluminum furniture was generally in good condition with a manufacture date stamp of We have allocated funds to replace the furnishing beginning in A large playground with extensive equipment is located adjacent to the picnic shelter in the center of the community. The main playground structure is approximately 400 feet in circumference and includes approximately 12 slides and dozens of interconnected structures. A smaller play area geared toward younger ages includes 2 slides and a sandbox. Finally, several other structures were observed including 3 swing structures, and several climbing structures. The playground equipment appeared to be in good to fair condition at the time of inspection. Some painted surfaces of the playground equipment are beginning to fade and paint was observed to be flaking in several areas. Additionally, sections of the thermoplastic coating were observed to be significantly worn and chipped. Exposed metal framing components are beginning to rust. Painting of the equipment is planned for late 2015 and we have allocated funds for future painting of the playground equipment on a 10 year cycle. We have allocated funds to repair/replace sections of the equipment on a 4 year cycle beginning in We have assumed approximately 1/5 th of the equipment will require replacement every 4 years. Numerous pieces of furniture were observed throughout the property. This includes picnic tables, benches, trash receptacles and grills. We have allocated funds to replace the site furniture on a five year cycle beginning in Preston Village Page 11

14 6.0 RESERVE FUND ANALYSIS Using software developed by Criterium Engineers and KPMG Peat Marwick, we have analyzed capital reserves draw-down for the projected capital expenditures to determine the amount needed. The following is a projected reserve fund analysis for non-annual items as discussed in the report. This projection takes into consideration a reasonable return on invested moneys and inflation. Please review this thoroughly and let us know of any changes that may be desired. The intent of this reserve fund projection is to help the Association develop a reserve fund to provide for anticipated repair or replacements of various system components during the next twenty years. The capital items listed are those that are typically the responsibility of the Association and are derived from a list provided the Association with several items added as a result of the inspection. However, association bylaws vary, and therefore, which components are the responsibilities of the owner and which are the responsibilities of the Association can vary. The Association should confirm that the items listed should be financed by the reserve fund. This projection provides the following: An input sheet that defines all the criteria used for the financial alternatives, including the assumed inflation rate and rate of return on deposited reserve funds. A table that lists anticipated replacement and/or repair items complete with estimated remaining life expectancies, projected costs of replacement and/or repair, a frequency in years of when these items require replacement and/or repair, and a projection based on this frequency. A table and graph that represent end of year balances versus capital expenditures based on your current funding program and reserve balances, and alternatives to your current program. The provided graphs illustrate what effects the funding methods will have over the presented twenty-year period versus the anticipated capital expenditures. Care should be taken in analyzing the graphs due to varying graphic scales that occur within each graph and between graphs. Note that based on our developed list of capital items and taking inflation into account; the current funding level is adequate. We have provided alternatives below to establish contributions to reserves which will maintain a positive balance through Year 20. The Association should bear in mind that unanticipated expenditures can always arise and maintenance of a significant reserve fund balance can be viewed as a way to avoid special assessments. We have included some alternatives to your current funding program and recommend that the board adopt an alternative that best reflects the Preston Village Page 12

15 Preston Village Page 13 objectives of the community. In summary they are as follows: Current Funding Rate: $64,000 per year ($90.27 per unit per year) Current Reserve Balance: $307,660 (includes adjustment for playground painting and security system capital projects planned for late 2015). Alternative 1: Maintain the current reserve contribution rate of $64,000 per year for the next 20 years. This alternative will maintain a positive balance through Year 20. Alternative 2: Increase the contribution by 1% each year for the next twenty years. This alternative is projected to maintain a positive balance through Year 20. Alternative 3: Not used. No special assessments are anticipated over the next twenty years. 7.0 CONCLUSION Either of the two alternatives provided above are projected to provide sufficient funding to meet estimated capital expenditures during the next twenty years. Further detail of the reserve fund analysis is provided in Appendix A. 8.0 LIMITATIONS The observations described in this study are valid on the date of the investigation and have been made under the conditions noted in the report. We prepared this study for the exclusive use of the Preston Village Homeowners Association. Criterium-Giles Engineers Inc. does not intend any other individual or party to rely upon this study without our express written consent. If another individual or party relies on this study, they shall indemnify and hold Criterium-Giles Engineers Inc. harmless for any damages, losses, or expenses they may incur as a result of its use. This study is limited to the visual observations made during our inspection. We did not remove surface materials, conduct any destructive or invasive testing, move furnishings or equipment, or undertake any digging or excavation. Accordingly, we cannot comment on the condition of systems that we could not see, such as buried structures and utilities, nor are we responsible for conditions that could not be seen or were not within the scope of our services at the time of the investigation. We did not undertake to completely assess the stability of the buildings or the underlying foundation soil since this effort would require excavation and destructive testing. Likewise, this is not a seismic assessment. We did not investigate the following areas: Buried utilities or infrastructure Concealed structural members or systems We do not render an opinion on uninvestigated portions of the community. We did not perform any computations or other engineering analysis as part of this evaluation, nor did we conduct a comprehensive code compliance

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17 Appendix A: RESERVE FUND PROJECTIONS

18 Itemized Worksheet Capital Item Reserve Frequency Remaining To Be Replaced Quantity Unit cost Requirement (*) (yrs**) Life (yrs) Information Source Site Crack repair, seal, stripe paving 2,200 SY $2.00 $4, Resurface asphalt paving 2,200 SY $11.00 $24, Repair sections of concrete curb and gutter 55 LF $35.00 $1, % every 8 years Repair sections of concrete flatwork pool and sidewalks 175 SY $95.00 $16, % every 8 years Paint/repair aluminum fencing 1,600 LF $10.00 $16, Repair/stain/seal wood privacy fencing 2,500 LF $5.00 $12, Replace wood privacy fencing 2,500 LF $30.00 $75, Drainage improvements 1 LS $8, $8, Pond repair/dredging 1 LS $60, $60, Repair/repoint monument entrance signage 1 LS $3, $3, Allocation for landscape overhaul projects 1 LS $13, $13, Pond sediment mapping 1 LS $2, $2, Building Exterior Roof replacement on pool buildings 60 SQ $ $15, Roof replacement on gazebos and picnic shelter 35 SQ $ $29, Paint/repair exterior wood pool/picnic buildings and gazebos 1 LS $10, $10, Replace pool pump and chemical room doors 2 EA $1, $3, Replace windows at pool building 13 EA $ $5, Decking repairs/replacement at gazebos/dock 1 LS $14, $14, Replace roll up doors at snack bar at pool building 2 EA $3, $7, Building Interior Paint/repair interior surfaces at pool building 1 LS $5, $5, Replace cabinets and refurbish interior of pool bl 1 LS $10, $10, Refurbish restrooms 2 EA $7, $15, Mechanical Repair/replace pool pump and filtration equipment 1 LS $3, $3, Repair landscape irrigation system 1 LS $7, $7, Repair/replace exterior pole mounted light fixture 30 EA $ $22, Replace water heater in pool building 1 LS $1, $1, Replace drinking fountain at picnic shelter 1 LS $1, $1, Repair/upgrade access control/security systems 1 LS $21, $21, Repair/replace plumbing and electrical fixtures 1 LS $7, $7, Amenities Repair/resurface swimming pools 4,600 SF $14.00 $64, Replace pool furniture 110 PCS $ $27, Repair/paint playground equipment 1 LS $22, $22, Replace portions of playground equipment 1 LS $40, $40, Approx. 20% every 4 years Replace artificial turf at playground areas 5,000 SF $10.00 $50, Replace portions of site furnishings 1 LS $7, $7, Other * Costs are typically 10%± ** Reserve study is based on a 20 year projection of non-annual maintenance Totals $631, Total Over Term $1,141, Criterium Engineers Page 1 of 14 9/18/2015

19 Annual Expense By Year Year: Year Number: Site Crack repair, seal, stripe paving , Resurface asphalt paving , Repair sections of concrete curb and gutter , , Repair sections of concrete flatwork pool and sidewalks , , Paint/repair aluminum fencing , ,000 Repair/stain/seal wood privacy fencing , , , Replace wood privacy fencing ,000 Drainage improvements , , ,500 Pond repair/dredging , Repair/repoint monument entrance signage 0 3, , , , Allocation for landscape overhaul projects 13, , , ,500 Pond sediment mapping 0 2, , , , , Building Exterior Roof replacement on pool buildings , Roof replacement on gazebos and picnic shelter , Paint/repair exterior wood pool/picnic buildings and gazebos , , Replace pool pump and chemical room doors 3, , Replace windows at pool building Decking repairs/replacement at gazebos/dock , Replace roll up doors at snack bar at pool building Building Interior Paint/repair interior surfaces at pool building , , Replace cabinets and refurbish interior of pool bl , Refurbish restrooms , Mechanical Repair/replace pool pump and filtration equipment , , , , ,500 Repair landscape irrigation system 0 0 7, , , Repair/replace exterior pole mounted light fixture , Replace water heater in pool building 1, ,200 Replace drinking fountain at picnic shelter , Repair/upgrade access control/security systems , Repair/replace plumbing and electrical fixtures , Amenities Repair/resurface swimming pools , Replace pool furniture , , Repair/paint playground equipment , , Replace portions of playground equipment 40, , , , Replace artificial turf at playground areas , Replace portions of site furnishings 0 7, , , Other Total Costs 57,700 13,500 90,000 17,500 96, ,050 62,200 17, ,650 28,000 42,000 18,000 82,900 74, ,700 Total Costs Adjusted For 3% Inflation 57,700 13,905 95,481 19, , ,967 74,270 21, ,772 36,534 56,444 24, , , ,373 Criterium Engineers Page 2 of 14 9/18/2015

20 Annual Expense By Year Year: Year Number: Site Crack repair, seal, stripe paving Resurface asphalt paving Repair sections of concrete curb and gutter Repair sections of concrete flatwork pool and sidewalks Paint/repair aluminum fencing Repair/stain/seal wood privacy fencing Replace wood privacy fencing Drainage improvements Pond repair/dredging Repair/repoint monument entrance signage Allocation for landscape overhaul projects Pond sediment mapping Building Exterior Roof replacement on pool buildings Roof replacement on gazebos and picnic shelter Paint/repair exterior wood pool/picnic buildings and gazebos Replace pool pump and chemical room doors Replace windows at pool building Decking repairs/replacement at gazebos/dock Replace roll up doors at snack bar at pool building Building Interior Paint/repair interior surfaces at pool building Replace cabinets and refurbish interior of pool bl Refurbish restrooms Mechanical Repair/replace pool pump and filtration equipment Repair landscape irrigation system Repair/replace exterior pole mounted light fixture Replace water heater in pool building Replace drinking fountain at picnic shelter Repair/upgrade access control/security systems Repair/replace plumbing and electrical fixtures Amenities Repair/resurface swimming pools Replace pool furniture Repair/paint playground equipment Replace portions of playground equipment Replace artificial turf at playground areas Replace portions of site furnishings Other , , , , , , , , , , , , , , , Total Costs Total Costs Adjusted For 3% Inflation 50,000 33,500 28,000 40,750 80,235 55,370 47,668 71,455 Criterium Engineers Page 3 of 14 9/18/2015

21 Reserve Study Worksheet General Information: 1 Organization: Preston Village HOA 2 Address: 3 Number of Units Age of Building (in years) 18 5a Study Period (in years) 20 5b Normal Fiscal Year starts: January 1, c Partial Fiscal Year starts: January 1, d Partial Year Length: 12 months 6 Site Inspection Date August 5, Reserve Funds at start $307,660 8 Rate of Return on invested Reserve Funds (%) 1.5% 9 Inflation Rate (%) 3.0% 10 Current Funding Levels Existing Funding Levels Total/Month Total Annual Per Unit/Month Per Unit/Year Reserve Fund Contribution... $5,333 $64,000 $7.52 $90.27 Years Out Total Annual Per Unit Planned Special Assessment... 0 $0 $0 Balance Computed... $159, Alternative Reserve Fund Contribution Alternative 1 Level Funding with Steps Total/Month Total Annual Per Unit/Month Per Unit/Year Monthly Amount, (First Year)... $5,333 $64,000 $7.52 $90.27 Monthly Amount, (Last Year)... $5,333 $64,000 $7.52 $90.27 Balance Required Final Year... $75,209 Special Assessments: Years Out Total/Year Per Unit First Assessment... 0 $0 $0 Second Assessment... 0 $0 $0 Balance Computed... $159,120 Alternative 2 Escalating Funding at 1% per Year Total/Month Total Annual Per Unit/Month Per Unit/Year Monthly Amount, (First Year)... $5,333 $64,000 $7.52 $90.27 Monthly Amount, (Last Year)... $6,443 $77,319 $9.09 $ Balance Required Final Year... $75,209 Base Escalation % % Special Assessments: Years Out Total/Year Per Unit First Assessment... 0 $0 $0 Second Assessment... 0 $0 $0 Balance Computed... $302,638 Alternative 3 Escalating Funding with Special Assessments Total/Month Total Annual Per Unit/Month Per Unit/Year Monthly Amount, (First Year)... $0 $0 $0.00 $0.00 Monthly Amount, (Last Year)... $0 $0 $0.00 $0.00 Balance Required Final Year... $75,209 Base Escalation % % Special Assessments: Years Out Total/Year Per Unit First Assessment... 0 $0 $0 Second Assessment... 0 $0 $0 Balance Computed... ($1,184,619) Criterium Engineers Page 4 of 14 9/18/2015

22 Reserve Fund Worksheet Fiscal Years: Normal: Jan Partial: Jan 2016 (12 months) Existing Funding Levels Beginning Reserve Fund Balance: Revenue: Special Assessments: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $307,660 $318,669 $374,296 $347,957 $398,727 $359,541 $282,753 $276,570 $323,833 $205,092 $236,047 $247,256 $290,635 $239,986 $198,170 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,709 $5,531 $5,142 $5,893 $5,313 $4,179 $4,087 $4,786 $3,031 $3,488 $3,654 $4,295 $3,547 $2,929 $3,933 $57,700 $13,905 $95,481 $19,123 $108,499 $144,967 $74,270 $21,523 $185,772 $36,534 $56,444 $24,916 $118,196 $108,745 $0 $318,669 $374,296 $347,957 $398,727 $359,541 $282,753 $276,570 $323,833 $205,092 $236,047 $247,256 $290,635 $239,986 $198,170 $266,102 Alternative 1, Level Funding with Steps Average Cap. Expenditure $75,209 Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $307,660 $318,669 $374,296 $347,957 $398,727 $359,541 $282,753 $276,570 $323,833 $205,092 $236,047 $247,256 $290,635 $239,986 $198,170 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $64,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,709 $5,531 $5,142 $5,893 $5,313 $4,179 $4,087 $4,786 $3,031 $3,488 $3,654 $4,295 $3,547 $2,929 $3,933 $57,700 $13,905 $95,481 $19,123 $108,499 $144,967 $74,270 $21,523 $185,772 $36,534 $56,444 $24,916 $118,196 $108,745 $0 $318,669 $374,296 $347,957 $398,727 $359,541 $282,753 $276,570 $323,833 $205,092 $236,047 $247,256 $290,635 $239,986 $198,170 $266,102 Alternative 2, Escalating Funding at 1% per Year Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $307,660 $318,669 $374,945 $349,922 $402,690 $366,201 $292,826 $290,791 $342,953 $229,881 $267,293 $285,768 $337,238 $295,527 $263,514 $64,000 $64,640 $65,286 $65,939 $66,599 $67,265 $67,937 $68,617 $69,303 $69,996 $70,696 $71,403 $72,117 $72,838 $73,566 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $4,709 $5,541 $5,171 $5,951 $5,412 $4,327 $4,297 $5,068 $3,397 $3,950 $4,223 $4,984 $4,367 $3,894 $5,056 $57,700 $13,905 $95,481 $19,123 $108,499 $144,967 $74,270 $21,523 $185,772 $36,534 $56,444 $24,916 $118,196 $108,745 $0 $318,669 $374,945 $349,922 $402,690 $366,201 $292,826 $290,791 $342,953 $229,881 $267,293 $285,768 $337,238 $295,527 $263,514 $342,137 Alternative 3, Escalating Funding with Special Assessments Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $307,660 $253,709 $243,401 $150,139 $132,982 $24,850 ($120,117) ($194,387) ($215,910) ($401,682) ($438,216) ($494,660) ($519,576) ($637,772) ($746,517) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,749 $3,597 $2,219 $1,965 $367 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $57,700 $13,905 $95,481 $19,123 $108,499 $144,967 $74,270 $21,523 $185,772 $36,534 $56,444 $24,916 $118,196 $108,745 $0 $253,709 $243,401 $150,139 $132,982 $24,850 ($120,117) ($194,387) ($215,910) ($401,682) ($438,216) ($494,660) ($519,576) ($637,772) ($746,517) ($746,517) Criterium Engineers Page 5 of 14 9/18/2015

23 Reserve Fund Worksheet Fiscal Years: Normal: Jan 2016 Partial: Jan 2016 (12 months) Existing Funding Levels Beginning Reserve Fund Balance: Revenue: Special Assessments: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $266,102 $148,930 $134,686 $145,465 $164,224 $64,000 $64,000 $64,000 $64,000 $64,000 $0 $0 $0 $0 $0 $2,201 $1,990 $2,150 $2,427 $2,352 $183,373 $80,235 $55,370 $47,668 $71,455 $148,930 $134,686 $145,465 $164,224 $159,120 Alternative 1, Level Funding wi Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $266,102 $148,930 $134,686 $145,465 $164,224 $64,000 $64,000 $64,000 $64,000 $64,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,201 $1,990 $2,150 $2,427 $2,352 $183,373 $80,235 $55,370 $47,668 $71,455 $148,930 $134,686 $145,465 $164,224 $159,120 Alternative 2, Escalating Fundin Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: $342,137 $236,562 $234,842 $259,097 $292,302 $74,302 $75,045 $75,795 $76,553 $77,319 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $3,496 $3,471 $3,829 $4,320 $4,472 $183,373 $80,235 $55,370 $47,668 $71,455 $236,562 $234,842 $259,097 $292,302 $302,638 Alternative 3, Escalating Fundin Beginning Reserve Fund Balance: Revenue: Special Assessment #1: Special Assessment #2: Investment Earnings: Capital Expenditures: Ending Reserve Balance: ($746,517) ($929,890) ($1,010,125) ($1,065,495) ($1,113,163) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $183,373 $80,235 $55,370 $47,668 $71,455 ($929,890) ($1,010,125) ($1,065,495) ($1,113,163) ($1,184,619) Criterium Engineers Page 6 of 14 9/18/2015

24 Itemized Graph Categories Totals Site $401,600 Building Exterior $110,500 Building Interior $35,000 Mechanical $150,900 Amenities $443,400 Other $0 Total $1,141,400 Itemized Graph Building Exterior, $110,500 Site Building Exterior Building Interior Other, $0 Site, $401,600 Amenities, $443,400 Mechanical, $150,900 Building Interior, $35,000 Mechanical Amenities Other Criterium Engineers Page 7 of 14 9/18/2015

25 Itemized Funding Monthly Annual Balance Reserve Reserve Full Reserve Beginning Requiring Funding Funding Funding Percent Categories Requirement Balance Funding Required Required Balance Funded Site $401,600 $124,068 $277,532 $1,896 $22,756 $144,497 Building Exterior $110,500 $44,289 $66,211 $482 $5,779 $51,582 Building Interior $35,000 $10,344 $24,656 $225 $2,695 $12,048 Mechanical $150,900 $27,905 $122,995 $728 $8,734 $32,500 Amenities $443,400 $101,053 $342,347 $1,626 $19,511 $117,693 Other $0 $0 $0 $0 $0 $0 Totals $1,141,400 $307,660 $833,740 $4,956 $59,474 $358, % Criterium Engineers Page 8 of 14 9/18/2015

26 Existing Funding Levels Beginning Year Reserve Fund Fee Special Investment Capital Ending Year Number Balance Revenue Assessments Earnings Expenditures Balance $307,660 $64,000 $0 $4,709 $57,700 $318, $318,669 $64,000 $0 $5,531 $13,905 $374, $374,296 $64,000 $0 $5,142 $95,481 $347, $347,957 $64,000 $0 $5,893 $19,123 $398, $398,727 $64,000 $0 $5,313 $108,499 $359, $359,541 $64,000 $0 $4,179 $144,967 $282, $282,753 $64,000 $0 $4,087 $74,270 $276, $276,570 $64,000 $0 $4,786 $21,523 $323, $323,833 $64,000 $0 $3,031 $185,772 $205, $205,092 $64,000 $0 $3,488 $36,534 $236, $236,047 $64,000 $0 $3,654 $56,444 $247, $247,256 $64,000 $0 $4,295 $24,916 $290, $290,635 $64,000 $0 $3,547 $118,196 $239, $239,986 $64,000 $0 $2,929 $108,745 $198, $198,170 $64,000 $0 $3,933 $0 $266, $266,102 $64,000 $0 $2,201 $183,373 $148, $148,930 $64,000 $0 $1,990 $80,235 $134, $134,686 $64,000 $0 $2,150 $55,370 $145, $145,465 $64,000 $0 $2,427 $47,668 $164, $164,224 $64,000 $0 $2,352 $71,455 $159,120 Criterium Engineers Page 9 of 14 9/18/2015

27 Existing Funding Levels Beginning Balance as of start of year beginning Jan 2016: $307,660 CONTRIBUTIONS SPECIAL ASSESSMENTS AMOUNT Totals $64, per year Per Year $0 Per Unit $0 $90.27 per unit per year $5, per month $7.52 per unit per month Projected Annual Funding and Expenditures: Year: Year Number: End of Year Reserve Fund Balance 318, , , , , , , , , , , , , , ,102 Capital Expenditures: 57,700 13,905 95,481 19, , ,967 74,270 21, ,772 36,534 56,444 24, , ,745 - Total Revenue (all sources) 68,709 69,531 69,142 69,893 69,313 68,179 68,087 68,786 67,031 67,488 67,654 68,295 67,547 66,929 67,933 Year: Year Number: End of Year Reserve Fund Balance 148, , , , ,120 Capital Expenditures: 183,373 80,235 55,370 47,668 71,455 Total Revenue (all sources) 66,201 65,990 66,150 66,427 66,352 Existing Funding Levels 450, , , , ,000 Dollars 200, , ,000 50, Funding Years Criterium Engineers Page 10 of 14 9/18/2015

28 Alternative 1: Level Funding with Steps Beginning Year Reserve Fund Fee Special Special Investment Capital Ending Year Number Balance Revenue Assessments 1 Assessments 2 Earnings Expenditures Balance $307,660 $64,000 $0 $0 $4,709 $57,700 $318, $318,669 $64,000 $0 $0 $5,531 $13,905 $374, $374,296 $64,000 $0 $0 $5,142 $95,481 $347, $347,957 $64,000 $0 $0 $5,893 $19,123 $398, $398,727 $64,000 $0 $0 $5,313 $108,499 $359, $359,541 $64,000 $0 $0 $4,179 $144,967 $282, $282,753 $64,000 $0 $0 $4,087 $74,270 $276, $276,570 $64,000 $0 $0 $4,786 $21,523 $323, $323,833 $64,000 $0 $0 $3,031 $185,772 $205, $205,092 $64,000 $0 $0 $3,488 $36,534 $236, $236,047 $64,000 $0 $0 $3,654 $56,444 $247, $247,256 $64,000 $0 $0 $4,295 $24,916 $290, $290,635 $64,000 $0 $0 $3,547 $118,196 $239, $239,986 $64,000 $0 $0 $2,929 $108,745 $198, $198,170 $64,000 $0 $0 $3,933 $0 $266, $266,102 $64,000 $0 $0 $2,201 $183,373 $148, $148,930 $64,000 $0 $0 $1,990 $80,235 $134, $134,686 $64,000 $0 $0 $2,150 $55,370 $145, $145,465 $64,000 $0 $0 $2,427 $47,668 $164, $164,224 $64,000 $0 $0 $2,352 $71,455 $159,120 Criterium Engineers Page 11 of 14 9/18/2015

29 Alternative 1: Level Funding with Steps Beginning Balance as of start of year beginning Jan 2016: $307,660 CONTRIBUTIONS SPECIAL ASSESSMENTS SETTINGS (analyzed by year) FIRST YR LAST YR Totals Starting amount ($): $64, $64, per year First Per Year $0 Per Unit $0 Increment by ($): 0 $90.27 $90.27 per unit per year Second Per Year $0 Per Unit $0 Every 1 year $5, $5, per month Frequency: 1 time $7.52 $7.52 per unit per month Projected Annual Funding and Expenditures: Year: Year Number: End of Year Reserve Fund Balance 318, , , , , , , , , , , , , , ,102 Capital Expenditures: 57,700 13,905 95,481 19, , ,967 74,270 21, ,772 36,534 56,444 24, , ,745 - Total Revenue (all sources) 68,709 69,531 69,142 69,893 69,313 68,179 68,087 68,786 67,031 67,488 67,654 68,295 67,547 66,929 67,933 Year: Year Number: End of Year Reserve Fund Balance 148, , , , ,120 Capital Expenditures: 183,373 80,235 55,370 47,668 71,455 Total Revenue (all sources) 66,201 65,990 66,150 66,427 66,352 Alternative 1: Level Funding with Steps 450, , , ,000 Dollars 250, , , ,000 50, Funding Years Criterium Engineers Page 12 of 14 9/18/2015

30 Alternative 2: Escalating Funding at 1% per Year Beginning Year Reserve Fund Fee Special Special Investment Capital Ending Year Number Balance Revenue Assessments 1 Assessments 2 Earnings Expenditures Balance $307,660 $64,000 $0 $0 $4,709 $57,700 $318, $318,669 $64,640 $0 $0 $5,541 $13,905 $374, $374,945 $65,286 $0 $0 $5,171 $95,481 $349, $349,922 $65,939 $0 $0 $5,951 $19,123 $402, $402,690 $66,599 $0 $0 $5,412 $108,499 $366, $366,201 $67,265 $0 $0 $4,327 $144,967 $292, $292,826 $67,937 $0 $0 $4,297 $74,270 $290, $290,791 $68,617 $0 $0 $5,068 $21,523 $342, $342,953 $69,303 $0 $0 $3,397 $185,772 $229, $229,881 $69,996 $0 $0 $3,950 $36,534 $267, $267,293 $70,696 $0 $0 $4,223 $56,444 $285, $285,768 $71,403 $0 $0 $4,984 $24,916 $337, $337,238 $72,117 $0 $0 $4,367 $118,196 $295, $295,527 $72,838 $0 $0 $3,894 $108,745 $263, $263,514 $73,566 $0 $0 $5,056 $0 $342, $342,137 $74,302 $0 $0 $3,496 $183,373 $236, $236,562 $75,045 $0 $0 $3,471 $80,235 $234, $234,842 $75,795 $0 $0 $3,829 $55,370 $259, $259,097 $76,553 $0 $0 $4,320 $47,668 $292, $292,302 $77,319 $0 $0 $4,472 $71,455 $302,638 Criterium Engineers Page 13 of 14 9/18/2015

31 Alternative 2: Escalating Funding at 1% per Year Beginning Balance as of start of year beginning Jan 2016: $307,660 CONTRIBUTIONS SPECIAL ASSESSMENTS SETTINGS (analyzed by year) FIRST YR LAST YR Totals Starting amount ($): $64, $77, per year First Per Year $0 Per Unit $0 Increment by (%): 1 $90.27 $ per unit per year Second Per Year $0 Per Unit $0 Step (%): $5, $6, per month Every 1 year $7.52 $9.09 per unit per month Frequency: 20 time Projected Annual Funding and Expenditures: Year: Year Number: End of Year Reserve Fund Balance 318, , , , , , , , , , , , , , ,137 Capital Expenditures: 57,700 13,905 95,481 19, , ,967 74,270 21, ,772 36,534 56,444 24, , ,745 - Total Revenue (all sources) 68,709 70,181 70,458 71,890 72,010 71,592 72,235 73,685 72,700 73,946 74,919 76,387 76,484 76,732 78,623 Year: Year Number: End of Year Reserve Fund Balance 236, , , , ,638 Capital Expenditures: 183,373 80,235 55,370 47,668 71,455 Total Revenue (all sources) 77,798 78,516 79,624 80,873 81,791 Alternative 2: Escalating Funding at 1% per Year 450, , , ,000 Dollars 250, , , ,000 50, Funding Years Criterium Engineers Page 14 of 14 9/18/2015

32 Appendix B: PROJECT PHOTOGRAPHS

33 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 Entrance sign. 1 General view of asphalt paving at pool. Recent crack repair and sealcoating completed. 2

34 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 General view of pond and fountain. 3 View of metal fencing around playground area. 4

35 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 View of wood fencing along Davis Drive. 5 View of example of wood warping in limited sections of fencing. 6

36 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 General view of pool building and roof. 7 View of concrete pool deck. 8

37 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 Pool building roof, windows, roll up doors. 9 Gazebo and dock at pond. 10

38 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 Decking at large gazebo at Circle on the Green. 11 Small gazebo. 12

39 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 Picnic shelter building. 13 Rust on pool chemical room door. 14

40 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 Snack bar finishes and furnishings, cabinets and counter tops in pool building. 15 Water heater at pool building. 16

41 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 General view of swimming pool and furnishings. 17 General view of playground equipment. 18

42 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 View of flaking paint on playground equipment. 19 View of thermoplastic coating deterioration, surface rust in framing. 20

43 Location: Photo Taken by: Date: Preston Village Kevin R. Giles, RS 08/05/15 View of damaged slide at playground. 21 General view of equipment and section of astroturf. 22