East Lake Woodlands Community Association, Inc. Olsdmar, Florida File #

Transcription

1 A RESERVE STUDY UPDATE FOR East Lake Woodlands Community Association, Inc. Olsdmar, Florida File # FOR PERIOD: January 1, 2018 December 31, 2018 PREPARED BY GAB ROBINS, A DIVISION OF CUNNINGHAM LINDSEY 3300 W. LAKE MARY BLVD. SUITE 350 LAKE MARY, FLORIDA (800) ext. 257 (407) ext. 257

2 3300 W. Lake Mary Blvd. Suite 350 Lake Mary, FL T: x 257 F: service@gabvalue.com On-Line: September 29, 2017 East Lake Woodlands Community Association, Inc. Attn: Ms. Jamie Soderland, Property Manager Management & Associates, Inc. 720 Broker Creek Boulevard #216 Oldsmar, Florida Dear Ms. Soderland, On August 1, 2007, we completed an on-site inspection of East Lake Woodlands Community Association, Inc.'s common area reserve items. Data gleaned from this inspection was utilized in the completion of an original reserve study report published on October 16, A follow up on-site inspection was completed on June 3, 2011, for use in completion of update reserve study reports published on August 24, 2011 and August 15, A follow up on-site inspection was completed on July 17, 2015, for use in completion of an update reserve study report published on November 14, This reserve study report is an update of those previous reserve study reports, which were accepted as accurate and reliable by the association representatives. A GAB Robins representative did re-inspect the common area reserve items for use in completion of this update reserve study report, on August 11, The intent of this report is to show cash reserves necessary for the future repair or replacement of expendable components incorporated into the subject property. The purpose of this report is to aid East Lake Woodlands Community Association, Inc. in making a determination for cash reserves that are needed to repair or replace short-lived building and/or site components. The report identifies each component selected, it s estimated useful life, adjusted life, scheduled replacement date, and current cost to repair/replace. The useful and remaining lives of the building components in this study, as well as the current replacement costs, have been selected from market standards, cost estimating services, and consideration of actual recent costs incurred by the association for reserve upgrades. This report is classified as an update reserve study with site visit under the guidelines of the National Reserve Study Standards of the Community Associations Institute, and conforms to the Community Associations Institute Professional Reserve Specialist Code of Ethics. The reserve specialist and GAB Robins have no relationships with the association that would result in actual or perceived conflicts of interest. This report is our opinion and based upon observed conditions and state of repair. Actual determinations of the current conditions and state of repair for certain items may be beyond the scope of this analysis. Items may not last as long as projected or may exceed their estimated lives. Influences GAB Robins, A Division of Cunningham Lindsey Page 2

3 such as weather, catastrophe, improper maintenance, physical abuse, or abnormal use can affect these lives and/or replacement costs. When such occurrences happen, another inspection should be made and a new revised study prepared. While we have attempted to create a useful tool for the association to plan their needs, the actual reserves set aside are solely at the association s discretion. The findings of this study are not for use in performing an audit, quality/forensic analyses, or background checks of historical records. In completing this report, the reserve specialist utilized information taken from the prior inspections and reserve study reports, as well as observed conditions as of the date of our most recent re-inspection. No destructive testing methods (i.e. roof core sampling, etc.) were utilized during the inspections. At your request, reserve line items we added for repaving at Condo V and Woodland Estates Hickory Nut. Current financial data, including the projected reserve fund balances as of the analysis date, and property histories, provided by you and Ms. Helen Parkhill, were utilized in the completion of this report. This data was not audited, and was assumed to be complete and correct. The reserve specialist estimated the repair/replacement cost taking into account contingencies inherent to this type of work. The report was prepared utilizing the information gathered in the field and the costs estimated by the reserve specialist. Respectfully submitted, GAB Robins, A Division of Cunningham Lindsey Stephen F. Brubaker, RS #65 Reserve Specialist, Community Associations Institute GAB Robins, A Division of Cunningham Lindsey Page 3

4 Table of Contents Project Overview... 5 Reserve Study Funding Analysis Executive Summary Reserve Budget Comparison Cash Flow Analysis Item Parameter - Category - Chart Item Parameters - Detail Item Parameters - Full Detail Expenditures - Category Through Cash Flow - Monthly Cash Flow - Annual Cash Flow - Chart Supplementary Information Component Funding Analysis Component Funding Analysis - Summary Component Funding Analysis - Detail Addendum Chapter 720 Florida Statutes Terms and Definition Annual Update Program GAB Robins, A Division of Cunningham Lindsey Page 4

5 PROJECT OVERVIEW Project Overview The subject of this reserve study report is the common areas within East Lake Woodlands Community Association Inc., a 3,208 unit residential development located in Oldsmar, Florida. Constructed in several phases, beginning in the early 1970 s, the common areas include five entrances (two with guardhouses) with security barcode entry systems and combination automatic barrier gates and rolling gates with operators, 6 concrete block/stucco privacy walls, signage/entry statements, +/ miles of asphalt paved roadways, concrete curbing and sidewalks, street/directional signage, drainage and retention systems, and landscaping. As of the date of our most recent inspection, the common area improvements were observed to be in average to good overall condition for a property of the subject s age and location, and appear to have been properly maintained. Areas of deteriorated paving were noted, and repaving projects scheduled in No other items of significant deferred maintenance were noted. Reserves are only calculated for the replacement of short-lived building or site components. This includes components that require replacement prior to the overall estimated end life of the buildings or structures. This report is designed to provide reasonable, appropriate budgetary cost and useful life data based on market standards for the subject s property type and in compliance with Florida statutes. Florida Statutes require consideration for roofs, exterior paint and/or waterproofing, pavement and all items that have an estimated repair or replacement cost above $10,000. We are unaware of any private reserve requirements. GAB Robins, A Division of Cunningham Lindsey Page 5

6 Representative guardhouse exteriors (Tampa Road entry) Representative guardhouse exteriors (Woodlands Boulevard entry) GAB Robins, A Division of Cunningham Lindsey Page 6

7 Representative barcode reader (1 of 6) Representative barrier gate/operator (1 of 4) GAB Robins, A Division of Cunningham Lindsey Page 7

8 Representative roll gate/operator (1 of 10) Representative street/directional signage GAB Robins, A Division of Cunningham Lindsey Page 8

9 Representative asphalt paving (Woodlands Drive) Representative asphalt paving (South Woodlands Drive) GAB Robins, A Division of Cunningham Lindsey Page 9

10 Representative asphalt paving (Sunflower Drive) Representative asphalt paving (East Lake Woodlands Parkway) GAB Robins, A Division of Cunningham Lindsey Page 10

11 Representative asphalt paving (Woodlands Boulevard) Representative asphalt paving (East Lake Woodlands Parkway) GAB Robins, A Division of Cunningham Lindsey Page 11

12 Representative asphalt paving (Woodlands Parkway) Representative sidewalk/curbing lengths GAB Robins, A Division of Cunningham Lindsey Page 12

13 Representative perimeter/privacy wall length Representative perimeter/privacy wall length GAB Robins, A Division of Cunningham Lindsey Page 13

14 RESERVE STUDY FUNDING ANALYSIS Reserve Study Funding Analysis There are two generally accepted means of estimating reserves; the Cash Flow Analysis and the Component Funding Analysis methodologies. The Cash Flow Analysis (or Pooling Method) is a method of calculating reserve contributions where contributions to the reserve funds are designed to offset the variable annual expenditures from the reserve fund. This analysis recognizes interest income attributable to reserve accounts over the period of the analysis. Funds from the beginning balances are pooled together and a yearly contribution rate is calculated to arrive at a positive cash flow and reserve account balance to adequately fund the future projected expenditures throughout the period of the analysis. If the association maintains a pooled account for reserves, the amount of the contribution to the pooled reserve account as disclosed on the proposed budget shall be not less than that required to ensure that the balance on hand at the beginning of the period for which the budget will go into effect plus the projected annual cash inflows over the remaining estimated useful lives of all of the assets that make up the reserve pool are equal to or greater than the projected annual cash outflows over the remaining estimated useful lives of all of the assets that make up the reserve pool, based on the current reserve analysis. The projected annual cash inflows may include estimated earnings from investment of principal; the association may include annual percentage increases in costs for the reserve components, but these increases are not mandated. Fully funded reserve contributions utilizing this methodology may not include future special assessments, and the annual funding levels cannot include percentage increases. In our Cash Flow Analysis calculations, we do not include percentage increases in construction costs/inflation. While future costs are expected to be higher than today s costs, which is supported by our analysis of past indexes/trends, increases in costs should be recognized as the association estimates current repair/replacement costs during their annual calculations of full reserve funding. A current cost estimate during the current fiscal year would theoretically be lower than a current cost for future fiscal years. That way the estimates of current cost moving forward will eventually represent current costs as of the date of forecast expenditure. Funding the reserves annually on that basis should ensure that adequate monies are available as of the date of expense, assuming that the current cost estimate is appropriate and that the reserve was fully funded since its last repair/replacement project was completed. The Component Funding Analysis (or Straight Line Method) calculates the annual contribution amount for each individual line item component by dividing the component s unfunded balance by its remaining useful life. A component s unfunded balance is its replacement cost less the reserve balance in the component at the beginning of the analysis period. The annual contribution rate for each individual line item component is then summed to calculate the total annual contribution rate for this analysis. As of July 1, 2007, homeowner s associations are mandated by Florida Statute 720 to include a disclaimer in their annual budgets if reserves are excluded from the budget. If homeowner s associations have previously funded reserves, they must include full funding reserve estimates under similar criteria as condominium associations in the state of Florida. A copy of these requirements is included in the addendum to this report. GAB Robins, A Division of Cunningham Lindsey Page 14

15 EXECUTIVE SUMMARY Executive Summary PROPERTY DATA Property Name: East Lake Woodlands Property Location: Olsdmar, Florida Report Run Date: September 29, 2017 Property Type: Community Association Budget Year Begins: January 1, 2018 Total Units: 3,208 Budget Year Ends: December 31, 2018 PROJECTED COMPONENT CATEGORIES AND PARAMETERS Guardhouses/Security Pavement/Roads Site Improvements Total current cost of all reserve components in reserve analysis: $ 2,303,395 Estimated beginning reserve fund balance for reserve analysis: $ 324,284 Total number of components scheduled for replacement in the 2018 budget year: 5 Total cost of components scheduled for replacement in the 2018 budget year: $ 230,222 ANALYSIS RESULTS CASH FLOW ANALYSIS Current annual reserve funding contribution amount (2017 Budget): $ 177,744 Our recommended annual reserve funding contribution amount: $ 151,680 Increase (decrease) between current and recommended annual contribution amounts: $ (26,064) Increase (decrease) between current and recommended annual contribution amounts: (14.7%) ANALYSIS RESULTS COMPONENT FUNDING ANALYSIS Current annual reserve funding contribution amount (2017 Budget): $ 177,744 Our recommended annual reserve funding contribution amount: $ 392,717 Increase (decrease) between current and recommended annual contribution amounts: $ 214,973 Increase (decrease) between current and recommended annual contribution amounts: 121% GAB Robins, A Division of Cunningham Lindsey Page 15

16 RESERVE BUDGET COMPARISON Reserve Budget Comparison The previous page provides a comparison of the association s approved fiscal year 2017 reserve contribution level and our estimates for full reserve funding for fiscal year The funding requirement estimated for fiscal year 2018 via the Cash Flow Analysis is moderately lower than the association s approved fiscal year 2017 contribution level, while the recommendation based on the Component Funding Analysis methodology is significantly higher than the association s approved fiscal year 2017 contribution level. Based on the Cash Flow Analysis methodology, the association can fully fund the reserves as analyzed in this report at $151,680 in fiscal year This level of annual funding could remain stable over the remainder of the study period, provide adequate funds to offset planned reserve expenditures, and maintain a positive reserve fund balance over the entirety of the study period. In this analysis we have utilized a 0.70% rate of return on reserve funds invested over the study period (assuming safe investment in CDs, money market accounts, etc.). The Cash Flow Analysis utilizes a pooling effect with reserve funds by pooling all funds together and distributing these funds to individual components as their replacement comes due. Funds that are pooled together in the cash flow analysis include the beginning balance, contributions to the reserve funds and interest earned on reserve funds. These pooled funds are matched against reserve expenditures throughout the period of the analysis by using our reserve analysis software program to ensure that the available funds are always greater than expenditures. Based on our Component Funding Analysis model, the reserves as analyzed in this report suggest that in order to fully fund in fiscal year 2018, the contribution should be $392,717. The Component Funding Analysis is a straight-line accounting procedure that was previously mandated by the State of Florida for condominiums, and has been a popular method of reserve computation by condominiums, cooperatives, homeowner s associations, property owners associations, country clubs, etc. GAB Robins, A Division of Cunningham Lindsey Page 16

17 CASH FLOW ANALYSIS Cash Flow Analysis GAB Robins, A Division of Cunningham Lindsey Page 17

18 Item Parameter - Category - Chart PRN:09/29/2017 Analysis Date - January 1, 2016 Page 18 of 78 Advanced World Concepts, Inc. Copyright All Rights Reserved

19 Item Parameters - Detail Description Replace Date Current Cost Est Life Adj Life Rem Life Future Cost Basis Measure Cost Basis Guardhouses/Security Guardhouse Interiors, North 06/01/2026 $ 5, :00 25:00 8:05 $ 5, $ 5, lp sm Guardhouse Interiors, Tampa Road 06/01/2026 8, :00 25:00 8:05 8, , lp sm Guardhouse Roof, North Entry 06/01/2019 3, :00 25:00 1:05 3, , sqs Guardhouse Roof, Tampa Road 02/01/2018 2, :00 21:08 0:01 2, sqs Security, Barcode Readers/Equipment Metro 06/01/2018 8, :00 14:00 0:05 8, , lp sm Security, Barcode Readers/Equipment Sunflower 06/01/2018 8, :00 14:00 0:05 8, , lp sm Security, Barcode Readers/Equipment Sweetbay 06/01/2018 8, :00 14:00 0:05 8, , lp sm Security, Barcode Readers/Equipment North Entry 01/01/2024 8, :00 14:00 6:00 8, , lp sm Security, Barcode Readers/Equipment Quail Forest 06/01/2025 8, :00 14:00 7:05 8, , lp sm Security, Barcode Readers/Equipment Woodlands 06/01/2025 8, :00 14:00 7:05 8, , lp sm Security, Gate Operator (Barrier) Tampa Road 1 06/01/2032 4, :00 16:00 14:05 4, , lp sm Security, Gate Operator (Barrier) Tampa Road 2 06/01/2032 4, :00 16:00 14:05 4, , lp sm Security, Gate Operator (Barrier) Woodlands 1 06/01/2032 4, :00 16:00 14:05 4, , lp sm Security, Gate Operator (Barrier) Woodlands 2 06/01/2032 4, :00 16:00 14:05 4, , lp sm Security, Gate Operator (Roll) Metro Entry 06/01/2018 3, :00 20:05 0:05 3, , lp sm Security, Gate Operator (Roll) Metro Exit 06/01/2018 3, :00 20:05 0:05 3, , lp sm Security, Gate Operator (Roll) Sunflower Entry 06/01/2025 3, :00 16:00 7:05 3, , lp sm Security, Gate Operator (Roll) Sunflower Exit 07/01/2022 3, :00 16:00 4:06 3, , lp sm Security, Gate Operator (Roll) Sweet Bay Entry 05/01/2024 3, :00 16:00 6:04 3, , lp sm Security, Gate Operator (Roll) Sweet Bay Exit 06/01/2018 3, :00 20:05 0:05 3, , lp sm Security, Gate Operator (Roll) Quail Forest Entry 06/01/2027 3, :00 16:00 9:05 3, , lp sm Security, Gate Operator (Roll) Quail Forest Exit 06/01/2027 3, :00 16:00 9:05 3, , lp sm Security, Phone Keypad Quail Forest 06/01/2021 6, :00 10:00 3:05 6, , lp sm Security, Roll Gates Metro 01/01/ , :00 25:00 5:00 10, , each Security, Roll Gates Sunflower 01/01/ , :00 25:00 5:00 10, , each Security, Roll Gates Sweet Bay 01/01/ , :00 25:00 5:00 10, , each Security, Roll Gates Quail Forest 06/01/ , :00 25:00 18:05 10, , each Security, Roll Gates Woodlands 01/01/ , :00 25:00 5:00 10, , each $ 176, $ 176, PRN:09/29/2017 Analysis Date - January 1, 2016 Page 19 of 78

20 Item Parameters - Detail Description Replace Date Current Cost Est Life Adj Life Rem Life Future Cost Basis Measure Cost Basis Pavement/Roads Asphalt, Condo V 01/01/2020 $ 79, :00 20:07 2:00 $ 79, $ sq yds Asphalt, ELW (Eric Ct-Woodlands Pkwy) 01/01/ , :00 14:07 9:00 153, sq yds Asphalt, ELW (Greenhaven Tr.-Woodlands Blvd.) 01/01/ , :00 14:07 8:00 37, sq yds Asphalt, ELW (Tampa Rd-Eric Ct) 01/01/ , :00 14:07 11:00 15, sq yds Asphalt, ELW (Warwick Dr S-Greenhaven Tr) 01/01/ , :00 14:03 12:00 183, sq yds Asphalt, ELW (Woodlands Blvd-Woody Ln) 01/01/ , :00 14:07 8:00 30, sq yds Asphalt, ELW (Woodlands Pkwy-Woodlands Blvd) 01/01/ , :00 14:07 5:00 258, sq yds Asphalt, ELW (Woody Ln-Warwick Dr S) 01/01/ , :00 14:07 10:00 189, sq yds Asphalt, Hickory Nut 01/01/ , :00 11:07 8:00 41, sq yds Asphalt, S. Woodlands Dr (Lakeshore-Sunflower Dr.) 01/01/ , :00 14:07 8:00 37, sq yds Asphalt, S. Woodlands Dr (Woodlands Dr-Lakeshore) 09/01/ , :00 17:03 0:08 61, sq yds Asphalt, Sunflower Dr (Augusta Ave-Tampa Rd.) 01/01/ , :00 17:07 2:00 101, sq yds Asphalt, Sunflower Dr (ELW Pkwy-Augusta Ave) 01/01/ , :00 16:07 15:00 105, sq yds Asphalt, Woodlands Blvd (ELW Pkwy-Sherbrook) 01/01/ , :00 28:07 15:00 142, sq yds Asphalt, Woodlands Blvd (Sherbrook-East Lake) 09/01/ , :00 13:03 0:08 129, sq yds Asphalt, Woodlands Drive 01/01/ , :00 14:07 7:00 123, sq yds Asphalt, Woodlands Parkway 01/01/ , :00 16:07 2:00 157, sq yds Sidewalks/Curbing Allowance 06/01/ , :00 3:00 1:05 30, , lp sm $ 1,878, $ 1,878, Site Improvements Landscaping Allowance 06/01/ , :00 10:00 5:05 100, , lp sm Park Area/Playground 01/01/ , :00 21:10 7:00 50, , lp sm Privacy Walls/Fencing 10/01/ , :00 10:00 3:09 64, sq ft Signage, Marquees 06/01/ , :00 15:00 9:05 15, , lp sm Signage, Street/Directional 06/01/ , :00 20:00 14:05 18, each $ 248, $ 248, $ 2,303, $ 2,303, PRN:09/29/2017 Analysis Date - January 1, 2016 Page 20 of 78

21 Item Parameters - Full Detail Guardhouse Interiors, North Item Number 18 Measurement Basis lp sm Type Common Area Estimated Useful Life 25:00 Category Guardhouses/Security Basis Cost 5, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2026 8:05 25: $ 5, $ 5, $ 5, $ 5, Comments Nominal funds were also included for periodic cosmetic upgrades to the guardhouse interiors, including (but not necessarily limited to) flooring upgrades, wall/door finishes, cabinetry & counters, plumbing and electrical fixtures, etc. Given the limited amount of use by the association members, this type of renovation is not typically completed on a large scale for 25+ years. Upgrades were reportedly completed in the past +/- 12 years, which is supportive of that market data. The guardhouses were assigned a current interior renovation allowance cost of $4,100 (north entry) and $6,950 (Tampa Road entry) and a future renovation date of The actual costs may vary slightly due to association cosmetic tastes. This report assumes that periodic interior and exterior painting will be completed as a function of general maintenance, through the association s annual operating budget. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 21 of 78

22 Item Parameters - Full Detail Guardhouse Interiors, Tampa Road Item Number 19 Measurement Basis lp sm Type Common Area Estimated Useful Life 25:00 Category Guardhouses/Security Basis Cost 8, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2026 8:05 25: $ 8, $ 8, $ 8, $ 8, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 22 of 78

23 Item Parameters - Full Detail Guardhouse Roof, North Entry Item Number 20 Measurement Basis sqs Type Common Area Estimated Useful Life 25:00 Category Guardhouses/Security Basis Cost 1, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2019 1:05 25: $ 3, $ 3, $ 3, $ 3, Comments The guardhouse roofs were reportedly placed in service at or near The market reflects a probable life cycle in the mid 20 year range for replacement of pitched tile roofing. As no professional roofing studies were provided that would suggest that physical conditions exist at this (or any other common area) roof, this expense was forecast in The current cost estimates includes removal and disposal of the existing roofing, typical minor repairs to the underlying roof structures, flashing, fascia, soffits and gutters/downspouts upgrades, and installation with like roofing. The roof sizes in squares (one square = 100 square feet) are rounded estimates. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 23 of 78

24 Item Parameters - Full Detail Guardhouse Roof, Tampa Road Item Number 21 Measurement Basis sqs Type Common Area Estimated Useful Life 20:00 Category Guardhouses/Security Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2018 0:01 21: $ 2, $ 2, $ 2, $ 2, Comments Useful lives for properly installed and maintained pitched shingle roofs have been observed from the mid-10 to 20 year range, under normal conditions. The shingle roofing on the Tampa Road guardhouse was reportedly installed in 1996, which reflects an actual age of +/- 21 years; as such, the market suggests that replacement should be expected in the near future. As there were no reported plans to replace in 2017, the remaining useful life was adjusted to reflect a 2018 expense date. A recurring 20 year life cycle was scheduled thereafter. The current cost estimate includes removal and disposal of the existing roofing, typical minor repairs to the underlying roof structures, as needed repairs to flashing, fascia, soffits, etc., and installation of like roofing. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 24 of 78

25 Item Parameters - Full Detail Security, Barcode Readers/Equipment Item Number 2 Measurement Basis lp sm Type Common Area Estimated Useful Life 14:00 Category Guardhouses/Security Basis Cost 8, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future Metro 06/01/ /01/2018 0:05 14: $ 8, $ 8, Sunflower 06/01/ /01/2018 0:05 14: $ 8, $ 8, Sweet Bay 06/01/ /01/2018 0:05 14: $ 8, $ 8, North Entry 01/01/ /01/2024 6:00 14: $ 8, $ 8, Quail Forest 06/01/ /01/2025 7:05 14: $ 8, $ 8, Woodlands 06/01/ /01/2025 7:05 14: $ 8, $ 8, $ 53, $ 53, Comments Separate line items were included for the barcode readers/systems at the individual access points (Metro, Sunflower, Sweetbay, North Woodlands/North Entry, Woodlands, and Quail Forest). With routine maintenance, which includes as needed hardware and software upgrades as a function of ongoing maintenance, life cycles in the low to mid 10 year range have been observed for similar replacements. This report assumes that as needed repair/replacement of the security system traffic loops, vehicle loop detectors, infrared safety devices, and battery backup units will continue to be funded through the association's annual operating budget, given their nominal individual costs. The photographs are of representative barcode readers. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 25 of 78

26 Item Parameters - Full Detail Security, Gate Operator (Barrier) Item Number 57 Measurement Basis lp sm Type Common Area Estimated Useful Life 16:00 Category Guardhouses/Security Basis Cost 4, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future Tampa Rd. 1 06/01/ /01/ :05 16: $ 4, $ 4, Tampa Rd. 2 06/01/ /01/ :05 16: $ 4, $ 4, Woodlands 1 06/01/ /01/ :05 16: $ 4, $ 4, Woodlands 2 06/01/ /01/ :05 16: $ 4, $ 4, $ 19, $ 19, Comments Because it is unlikely that all of the barrier and roll gate operators will require replacement concurrently, line items were included for replacement of each. Given the amount of traffic/usage, and barring any unforeseen vehicular damages, these operators should last in the mid 10 year range with proper and routine maintenance. Based on the actual operating history, a life cycle on the higher end of that range appears to be appropriate for ongoing budgetary purposes. Each of the barrier gates operators at the Tampa Road and Woodlands Boulevard entries were scheduled for replacement again in 2032, based on their assumed 2016 installation date. We reserve the right to modify this report upon confirmation of the factual installation date(s). PRN:09/29/2017 Analysis Date - January 1, 2016 Page 26 of 78

27 Item Parameters - Full Detail Security, Gate Operator (Roll) Item Number 7 Measurement Basis lp sm Type Common Area Estimated Useful Life 16:00 Category Guardhouses/Security Basis Cost 3, Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future Metro Entry 01/01/ /01/2018 0:05 20: $ 3, $ 3, Metro Exit 01/01/ /01/2018 0:05 20: $ 3, $ 3, Sunflower Entry 06/01/ /01/2025 7:05 16: $ 3, $ 3, Sunflower Exit 07/01/ /01/2022 4:06 16: $ 3, $ 3, Sweet Bay Entry 05/01/ /01/2024 6:04 16: $ 3, $ 3, Sweet Bay Exit 01/01/ /01/2018 0:05 20: $ 3, $ 3, Quail Forest E 06/01/ /01/2027 9:05 16: $ 3, $ 3, Quail Forest Ex 06/01/ /01/2027 9:05 16: $ 3, $ 3, $ 25, $ 25, Comments Because it is unlikely that all of the barrier and roll gate operators will require replacement concurrently, line items were included for replacement of each. Given the amount of traffic/usage, and barring any unforeseen vehicular damages, these operators should last in the mid 10 year range with proper and routine maintenance. Based on the actual operating history, a life cycle on the higher end of that range appears to be appropriate for ongoing budgetary purposes. The photographs are of representative roll gate operators. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 27 of 78

28 Item Parameters - Full Detail Security, Phone Keypad Quail Forest Item Number 39 Measurement Basis lp sm Type Common Area Estimated Useful Life 10:00 Category Guardhouses/Security Basis Cost 6, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2021 3:05 10: $ 6, $ 6, $ 6, $ 6, Comments Under normal conditions, a life cycle in the 8-10 year range is the most typical observed useful life for security access phone/keypads. The Quail Forest unit was forecast for replacement again in PRN:09/29/2017 Analysis Date - January 1, 2016 Page 28 of 78

29 Item Parameters - Full Detail Security, Roll Gates Item Number 15 Measurement Basis each Type Common Area Estimated Useful Life 25:00 Category Guardhouses/Security Basis Cost 5, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future Metro Access 01/01/ /01/2023 5:00 25: $ 10, $ 10, Sunflower Access 01/01/ /01/2023 5:00 25: $ 10, $ 10, Sweet Bay Access 01/01/ /01/2023 5:00 25: $ 10, $ 10, Quail Forest 06/01/ /01/ :05 25: $ 10, $ 10, Woodlands 01/01/ /01/2023 5:00 25: $ 10, $ 10, $ 52, $ 52, Comments Barring any unforeseen vehicular damage, etc., total replacement of the metal roll gates at the Metro, Sunflower, Sweetbay and Quail Forest access points should be expected on a life cycles in mid-20 to 30+ year range This suggests replacement of the Metro, Sunflower, Woodlands, and Sweetbay roll gates at or near 2023, and the Quail Forest roll gates at or near The photographs are of representative roll gates. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 29 of 78

30 Item Parameters - Full Detail Asphalt, Condo V Item Number 55 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2020 2:00 20: $ 79, $ 79, $ 79, $ 79, Comments Useful lives for asphalt paving can vary, sometimes widely, from property to property due to the quality of installation and maintenance and association cosmetic tastes. We have observed asphalt repaving/overlay projects after years, while some have experienced useful lives of 25+ years. Differing phases of asphalt paving were forecast based on their reported completion dates and 20 year life cycles; adjustments to the remaining useful lives were included at the association's request and sole discretion. The paved areas were provided by the association and assumed to be complete and correct; we reserve the right to modify this report upon review of as built paving plans and/or field measurements. The current cost estimates include milling/removal of the existing paving, typical minor repairs to the underlying pavement substructures, drainage, etc., installation of new asphalt paving, and thermal striping. At the association's request and sole discretion, repaving of the Condo V asphalt was forecast in 2019 at a current cost estimate of $75,000. We reserve the right to modify this report upon confirmation of the total paved area and installation date of the existing paving. The association has sporadically completed asphalt sealcoat/rejuvenation projects, but is unsure as to whether or not this upgrade will be completed in the future. At the property manager's prior request, we have excluded sealcoat/rejuvenation from this report. Some associations are of the opinion that this upgrade is strictly cosmetic, while others believe it will maximize the useful life of the asphalt paving. For the association's consideration, we estimate a current cost on the order of $145,300 for the entirety of the asphalt paved roadways. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 30 of 78

31 Item Parameters - Full Detail Asphalt, ELW (Eric Ct-Woodlands Pkwy) Item Number 50 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2027 9:00 14: $ 153, $ 153, $ 153, $ 153, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 31 of 78

32 Item Parameters - Full Detail Asphalt, ELW (Greenhaven Tr.-Woodlands Blvd.) Item Number 49 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2026 8:00 14: $ 37, $ 37, $ 37, $ 37, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 32 of 78

33 Item Parameters - Full Detail Asphalt, ELW (Tampa Rd-Eric Ct) Item Number 52 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/ :00 14: $ 15, $ 15, $ 15, $ 15, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 33 of 78

34 Item Parameters - Full Detail Asphalt, ELW (Warwick Dr S-Greenhaven Tr) Item Number 53 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/ :00 14: $ 183, $ 183, $ 183, $ 183, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 34 of 78

35 Item Parameters - Full Detail Asphalt, ELW (Woodlands Blvd-Woody Ln) Item Number 47 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2026 8:00 14: $ 30, $ 30, $ 30, $ 30, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 35 of 78

36 Item Parameters - Full Detail Asphalt, ELW (Woodlands Pkwy-Woodlands Blvd) Item Number 48 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2023 5:00 14: $ 258, $ 258, $ 258, $ 258, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 36 of 78

37 Item Parameters - Full Detail Asphalt, ELW (Woody Ln-Warwick Dr S) Item Number 51 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/ :00 14: $ 189, $ 189, $ 189, $ 189, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 37 of 78

38 Item Parameters - Full Detail Asphalt, Hickory Nut Item Number 54 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2026 8:00 11: $ 41, $ 41, $ 41, $ 41, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 38 of 78

39 Item Parameters - Full Detail Asphalt, S. Woodlands Dr (Lakeshore-Sunflower Dr) Item Number 23 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2026 8:00 14: $ 37, $ 37, $ 37, $ 37, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 39 of 78

40 Item Parameters - Full Detail Asphalt, S. Woodlands Dr (Woodlands Dr-Lakeshore) Item Number 42 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2018 0:08 17: $ 61, $ 61, $ 61, $ 61, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 40 of 78

41 Item Parameters - Full Detail Asphalt, Sunflower Dr (Augusta Ave-Tampa Rd.) Item Number 44 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2020 2:00 17: $ 101, $ 101, $ 101, $ 101, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 41 of 78

42 Item Parameters - Full Detail Asphalt, Sunflower Dr (ELW Pkwy-Augusta Ave) Item Number 43 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/ :00 16: $ 105, $ 105, $ 105, $ 105, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 42 of 78

43 Item Parameters - Full Detail Asphalt, Woodlands Blvd (ELW Pkwy-Sherbrook) Item Number 45 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/ :00 28: $ 142, $ 142, $ 142, $ 142, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 43 of 78

44 Item Parameters - Full Detail Asphalt, Woodlands Blvd (Sherbrook-East Lake) Item Number 46 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2018 0:08 13: $ 129, $ 129, $ 129, $ 129, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 44 of 78

45 Item Parameters - Full Detail Asphalt, Woodlands Drive Item Number 26 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2025 7:00 14: $ 123, $ 123, $ 123, $ 123, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 45 of 78

46 Item Parameters - Full Detail Asphalt, Woodlands Parkway Item Number 27 Measurement Basis sq yds Type Common Area Estimated Useful Life 20:00 Category Pavement/Roads Basis Cost Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2020 2:00 16: $ 157, $ 157, $ 157, $ 157, Comments PRN:09/29/2017 Analysis Date - January 1, 2016 Page 46 of 78

47 Item Parameters - Full Detail Sidewalks/Curbing Allowance Item Number 6 Measurement Basis lp sm Type Common Area Estimated Useful Life 3:00 Category Pavement/Roads Basis Cost 30, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2019 1:05 3: $ 30, $ 30, $ 30, $ 30, Comments The common areas include concrete sidewalks, of varying ages and conditions. Addition of new sidewalks was completed between 2011 and Under normal operating conditions, total replacement of concrete paving (driveways, sidewalks, curbing, etc.) should not be necessary at any one given time. Therefore, it is our opinion that reserving for total replacement is not practical. Many associations fund as needed repairs/replacements to common area concrete paving through their annual operating budgets, given the relative uncertainty of budgetary costs and life cycles. Some do establish and fund contingency reserves for periodic repairs/replacements. Given that the association incurred a cost of +/- $30,000 in 2016, we have included a contingency reserve to provide $30,000 for as needed sidewalk repairs over a recurring 3 year life cycle. This fund is a projection only; actual costs and time frames may vary from these estimates. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 47 of 78

48 Item Parameters - Full Detail Landscaping Allowance Item Number 28 Measurement Basis lp sm Type Common Area Estimated Useful Life 10:00 Category Site Improvements Basis Cost 100, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2023 5:05 10: $ 100, $ 100, $ 100, $ 100, Comments In most cases, associations preferring to include a landscaping reserve line item do so as a contingency against unforeseen damage due to weather, blight, etc. Costs associated with everyday landscaping maintenance and irrigation system repairs are generally included in an association s annual operating budget. Landscaping, like interior renovation, is a largely cosmetic upgrade; therefore, costs can vary widely from property to property. Because quantifying a market supported total cost and useful life estimate is difficult, we generally include this type of reserve only when provided parameters by each association, and then only at that association s sole discretion. It is not uncommon for associations to determine their landscaping contingency reserves based on the effect the costs and useful life parameters have on their assessments. At the association's request and sole discretion, a $100,000 landscaping allowance was included over a recurring 10 year life cycle. This fund is a projection only; actual costs and time frames may vary, perhaps widely, from these estimates. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 48 of 78

49 Item Parameters - Full Detail Park Area/Playground Item Number 40 Measurement Basis lp sm Type Common Area Estimated Useful Life 15:00 Category Site Improvements Basis Cost 50, Tracking Logistical Method Adjusted Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2025 7:00 21: $ 50, $ 50, $ 50, $ 50, Comments The association expects to incur a cost on the order of $50,000 for major restoration/modernization of the common area park area/playground; specific plans have not yet been established. At the association's request and sole discretion, this expense was forecast in A recurring 15 year life cycle was scheduled thereafter. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 49 of 78

50 Item Parameters - Full Detail Privacy Walls/Fencing Item Number 29 Measurement Basis sq ft Type Common Area Estimated Useful Life 10:00 Category Site Improvements Basis Cost 1.71 Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2021 3:09 10: $ 64, $ 64, $ 64, $ 64, Comments Under normal conditions, total replacement of the concrete block/stucco privacy walls along Tampa Road and at the Metro entrance should not be necessary at any one given time. As such, reserving for total replacement is not practical. This fund is designed to provide monies for periodic restoration/repainting and as needed wood fencing repairs/replacements over a recurring 10 year life cycle. The total area is a rounded estimate. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 50 of 78

51 Item Parameters - Full Detail Signage, Marquees Item Number 30 Measurement Basis lp sm Type Common Area Estimated Useful Life 15:00 Category Site Improvements Basis Cost 15, Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/2027 9:05 15: $ 15, $ 15, $ 15, $ 15, Comments On a periodic basis, the association should expect to incur costs associated with major cosmetic upgrades to the entry signage marquees at the north entry and Tampa Road entry, including repairs to the stone façades, lettering/signage, and minor structural repairs. The signage at the individual neighborhoods within East Lake Woodlands is reportedly the responsibility of those neighborhoods, rather than the subject association. Therefore, these signs were excluded from this report. In lieu of any change in cosmetic tastes that would cause the association to raze and replace the existing signage structures, we do not anticipate replacement due to structural failure. We have included a single line item for periodic marquee signage refurbishment, on a recurring 15 year life cycle. This expense was forecast again in 2026, accordingly. The current cost estimate is not reflective of total replacement PRN:09/29/2017 Analysis Date - January 1, 2016 Page 51 of 78

52 Item Parameters - Full Detail Signage, Street/Directional Item Number 31 Measurement Basis each Type Common Area Estimated Useful Life 20:00 Category Site Improvements Basis Cost Tracking Logistical Method Fixed Service Replace Rem Adj Replacement Cost Code Desc. Date Date Life Life Quantity Current Future /01/ /01/ :05 20: $ 18, $ 18, $ 18, $ 18, Comments While minor sign repairs/replacements can be expected from time to time due to vehicular damage, etc., a life cycle in the 20 year range has been observed for replacement of similar street/directional signs. This inventory was replaced in This fund is designed to provide monies for as needed replacements over a 20 year life cycle. PRN:09/29/2017 Analysis Date - January 1, 2016 Page 52 of 78

53 Expenditures - Category Through 2033 Description Guardhouses/Security Guardhouse Interiors, North 5,100 Guardhouse Interiors, Tampa Road 8,500 Guardhouse Roof, North Entry 3,353 Guardhouse Roof, Tampa Road 2,607 Security, Barcode Readers/Equipment 26,667 8,889 17,778 Security, Gate Operator (Roll) 9,552 3,184 3,184 3,184 6,368 Security, Phone Keypad Quail Forest 6,100 Security, Roll Gates 41,824 38,826 3,353 6,100 3,184 41,824 12,073 20,962 13,600 6,368 Pavement/Roads Asphalt, Condo V 79,093 Asphalt, ELW (Eric Ct-Woodlands Pkwy) 153,468 Asphalt, ELW (Greenhaven Tr.-Woodllands Blvd.) 37,771 Asphalt, ELW (Woodlands Blvd-Woody Lane) 30,578 Asphalt, ELW (Woodlands Pkwy-Woodllands Blvd.) 258,369 Asphalt, Hickory Nut 41,123 Asphalt, S. Woodlands Dr (Lakeshore-Sunflower) 37,855 Asphalt, S. Woodlands Dr (Woodlands LS) 61,689 Asphalt, Sunflower Dr (Augusta Ave-Tampa Road) 101,288 Asphalt, Woodlands Blvd (Sherbrook- East Lake) 129,706 Asphalt, Woodlands Drive 123,390 Asphalt, Woodlands Parkway 157,132 Sidewalks/Curbing Allowance 30,000 30,000 30, ,396 30, ,514 30, , , , ,468 Site Improvements Landscaping Allowance 100,000 Park Area/Playground 50,000 Privacy Walls/Fencing 64,638 Signage, Marquees 15,000 PRN:09/29/2017 Analysis Date - January 1, 2016 Page 53 of 78

54 Expenditures - Category Through 2033 Description , ,000 50,000 15, ,222 33, ,514 70,738 33, ,193 12, , , ,836 PRN:09/29/2017 Analysis Date - January 1, 2016 Page 54 of 78

55 Expenditures - Category Through 2033 Description Guardhouses/Security Security, Barcode Readers/Equipment 26,667 Security, Gate Operator (Barrier) 19,508 Security, Phone Keypad Quail Forest 6,100 6,100 46,175 Pavement/Roads Asphalt, ELW (Tampa Rd-Eric Ct) 15,889 Asphalt, ELW (Warwick Dr S-Greenhaven) 183,493 Asphalt, ELW (Woody Ln-Warwick Dr) 189,820 Asphalt, Sunflower Dr (ELW Pkwy-Augusta) 105,558 Asphalt, Woodlands Blvd (ELW Pkwy-Sherbrook) 142,370 Sidewalks/Curbing Allowance 30,000 30, ,820 15, ,493 30, ,929 Site Improvements Landscaping Allowance 100,000 Privacy Walls/Fencing 64,638 Signage, Street/Directional 18,902 64,638 18, , ,820 15, , ,738 65, ,929 PRN:09/29/2017 Analysis Date - January 1, 2016 Page 55 of 78

56 Cash Flow - Monthly Beginning Interest Ending 2018 Balance Contribution Earned Expenditures Balance January 324, , , February 337, , , , March 347, , , April 360, , , May 373, , , June 385, , , , July 362, , , August 375, , , September 388, , , , October 209, , , November 222, , , December 235, , , $ 324, $ 151, $ 2, $ 230, $ 248, Beginning Interest Ending 2019 Balance Contribution Earned Expenditures Balance January 248, , , February 260, , , March 273, , , April 286, , , May 299, , , June 312, , , , July 291, , , August 304, , , September 317, , , October 329, , , November 342, , , December 355, , , $ 248, $ 151, $ 2, $ 33, $ 368, Beginning Interest Ending 2020 Balance Contribution Earned Expenditures Balance January 368, , , , February 43, , , March 56, , , April 69, , , May 81, , , June 94, , , July 107, , , August 119, , , September 132, , , October 145, , , November 158, , , December 170, , , $ 368, $ 151, $ $ 337, $ 183, PRN:09/29/2017 Analysis Date - January 1, 2016 Page 56 of 78

57 Cash Flow - Monthly Beginning Interest Ending 2021 Balance Contribution Earned Expenditures Balance January 183, , , February 196, , , March 209, , , April 221, , , May 234, , , June 247, , , , July 254, , , August 266, , , September 279, , , October 292, , , , November 240, , , December 253, , , $ 183, $ 151, $ 1, $ 70, $ 266, Beginning Interest Ending 2022 Balance Contribution Earned Expenditures Balance January 266, , , February 278, , , March 291, , , April 304, , , May 317, , , June 330, , , , July 313, , , , August 322, , , September 335, , , October 348, , , November 361, , , December 374, , , $ 266, $ 151, $ 2, $ 33, $ 386, Beginning Interest Ending 2023 Balance Contribution Earned Expenditures Balance January 386, , , , February 99, , , March 112, , , April 124, , , May 137, , , June 150, , , , July 63, , , August 75, , , September 88, , , October 101, , , November 113, , , December 126, , , $ 386, $ 151, $ $ 400, $ 139, PRN:09/29/2017 Analysis Date - January 1, 2016 Page 57 of 78

58 Cash Flow - Monthly Beginning Interest Ending 2024 Balance Contribution Earned Expenditures Balance January 139, , , , February 143, , , March 155, , , April 168, , , May 181, , , , June 190, , , July 203, , , August 216, , , September 229, , , October 241, , , November 254, , , December 267, , , $ 139, $ 151, $ 1, $ 12, $ 280, Beginning Interest Ending 2025 Balance Contribution Earned Expenditures Balance January 280, , , , February 119, , , March 132, , , April 145, , , May 157, , , June 170, , , , July 132, , , August 145, , , September 157, , , October 170, , , November 183, , , December 196, , , $ 280, $ 151, $ 1, $ 224, $ 208, Beginning Interest Ending 2026 Balance Contribution Earned Expenditures Balance January 208, , , , February 74, , , March 86, , , April 99, , , May 112, , , June 124, , , , July 124, , , August 136, , , September 149, , , October 162, , , November 174, , , December 187, , , $ 208, $ 151, $ $ 160, $ 200, PRN:09/29/2017 Analysis Date - January 1, 2016 Page 58 of 78

59 Cash Flow - Monthly Beginning Interest Ending 2027 Balance Contribution Earned Expenditures Balance January 200, , , , February 59, , , March 72, , , April 85, , , May 97, , , June 110, , , , July 101, , , August 114, , , September 127, , , October 139, , , November 152, , , December 165, , , $ 200, $ 151, $ $ 174, $ 178, Beginning Interest Ending 2028 Balance Contribution Earned Expenditures Balance January 178, , , , February 1, , , March 13, , , April 26, , , May 38, , , June 51, , , , July 34, , , August 46, , , September 59, , , October 72, , , November 84, , , December 97, , , $ 178, $ 151, $ $ 219, $ 110, Beginning Interest Ending 2029 Balance Contribution Earned Expenditures Balance January 110, , , , February 107, , , March 119, , , April 132, , , May 145, , , June 158, , , July 170, , , August 183, , , September 196, , , October 209, , , November 221, , , December 234, , , $ 110, $ 151, $ 1, $ 15, $ 247, PRN:09/29/2017 Analysis Date - January 1, 2016 Page 59 of 78

60 Cash Flow - Monthly Beginning Interest Ending 2030 Balance Contribution Earned Expenditures Balance January 247, , , , February 76, , , March 89, , , April 102, , , May 114, , , June 127, , , July 140, , , August 152, , , September 165, , , October 178, , , November 191, , , December 203, , , $ 247, $ 151, $ 1, $ 183, $ 216, Beginning Interest Ending 2031 Balance Contribution Earned Expenditures Balance January 216, , , February 229, , , March 242, , , April 254, , , May 267, , , June 280, , , , July 257, , , August 270, , , September 282, , , October 295, , , , November 243, , , December 256, , , $ 216, $ 151, $ 1, $ 100, $ 269, Beginning Interest Ending 2032 Balance Contribution Earned Expenditures Balance January 269, , , February 282, , , March 294, , , April 307, , , May 320, , , June 333, , , , July 281, , , August 293, , , September 306, , , October 319, , , November 332, , , December 345, , , $ 269, $ 151, $ 2, $ 65, $ 358, PRN:09/29/2017 Analysis Date - January 1, 2016 Page 60 of 78

61 Cash Flow - Monthly Beginning Interest Ending 2033 Balance Contribution Earned Expenditures Balance January 358, , , , February 122, , , March 135, , , April 148, , , May 161, , , June 173, , , , July 86, , , August 99, , , September 112, , , October 124, , , November 137, , , December 150, , , $ 358, $ 151, $ $ 347, $ 162, PRN:09/29/2017 Analysis Date - January 1, 2016 Page 61 of 78

62 Cash Flow - Annual Beginning Interest Ending Period Balance Contribution Earned Expenditures Balance 01/18-12/18 $ 324, $ 151, $ 2, $ 230, $ 248, /19-12/19 248, , , , , /20-12/20 368, , , , /21-12/21 183, , , , , /22-12/22 266, , , , , /23-12/23 386, , , , /24-12/24 139, , , , , /25-12/25 280, , , , , /26-12/26 208, , , , /27-12/27 200, , , , $ 324, $ 1,516, $ 14, $ 1,677, $ 178, Beginning Interest Ending Period Balance Contribution Earned Expenditures Balance 01/28-12/28 178, , , , /29-12/29 110, , , , , /30-12/30 247, , , , , /31-12/31 216, , , , , /32-12/32 269, , , , , /33-12/33 358, , , , $ 178, $ 910, $ 7, $ 932, $ 162, PRN:09/29/2017 Analysis Date - January 1, 2016 Page 62 of 78

63 Cash Flow - Chart PRN:09/29/2017 Analysis Date - January 1, 2016 Page 63 of 78 Advanced World Concepts, Inc. Copyright All Rights Reserved