BRAMBLETON REPLACEMENT RESERVE REPORT FY 2016 BRAMBLETON, VIRGINIA. Property Management: Brambleton Community Association. Mr.

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1 REPLACEMENT RESERVE REPORT - FY 2016 BRAMBLETON BRAMBLETON, VIRGINIA BRAMBLETON COMMUNITY ASSOCIATION REPLACEMENT RESERVE REPORT FY 2016 Property Management: Brambleton Community Association Mr. Richard Stone 4249 Ryan Road, Suite 210 Brambleton, Virginia Tel: rick.stone@brambleton.org Consultant: 929 West Street, Suite 310 Annapolis, Maryland Tel: Fax: Toll Free: July 30, 201 and revised on September 20, 201

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3 Replacement Reserve Study BRAMBLETON BRAMBLETON, VIRGINIA GENERAL RESERVE Replacement Reserve Study Executive Summary Replacement Reserve Analysis Replacement Reserve Inventory Projected Annual Replacement Condition Assessments Accounting Summary Irrigation, Water Feature, Lighting Reserve RECREATION RESERVE Replacement Reserve Study Executive Summary Replacement Reserve Analysis Replacement Reserve Inventory Projected Annual Replacement Condition Assessments Accounting Summary Scope. Brambleton is a community association in Brambleton, Virginia. Construction began at Brambleton in the early 2000's and continues today. Each of the common elements of the community has been included in one of the four Replacement Reserve Studies:! General Reserve (the Irrigation System, Water Feature, and Streetlights, have been moved to a separate Replacement Reserve Analysis & Inventory)! Recreation Reserve! Town Home Reserve! Common Drive Reserve Level of Service. Each of these four Replacement Reserve Studies has has been performed as a Level II Update, With Site Visit/On-Site Review as defined under the National Reserve Study Standards that have been adopted by the Community Associations Institute. As such, the component inventory is based on the study that was performed by our firm in August This information was adjusted to reflect changes to the inventory that were provided by the community manager, and the quantities were adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings. The condition of all commonly-owned components was ascertained from a site visit and the visual inspection of each component by the Analyst. The life expectancy and the value of components are provided based in part on these observations. The fund status and funding plan have been derived from analysis of this data. Respectfully Submitted, MILLER DODSON ASSOCIATES, INC. Wm Bruce Bennett Wm. Bruce Bennett, RS, Senior Reserve Analyst TOWNHOUSE RESERVE Replacement Reserve Study Executive Summary Replacement Reserve Analysis Replacement Reserve Inventory Projected Annual Replacement Condition Assessments Accounting Summary COMMON DRIVE Replacement Reserve Study Executive Summary Replacement Reserve Analysis Replacement Reserve Inventory Projected Annual Replacement Condition Assessments Accounting Summary Attachments Supplemental Photographs Appendix Maintaining Stormwater Systems Guidebook for Private Owners & Operators in Northern Virginia

4 REPLACEMENT RESERVE REPORT - FY 2016 BRAMBLETON GENERAL RESERVE BRAMBLETON, VIRGINIA BRAMBLETON COMMUNITY ASSOCIATION REPLACEMENT RESERVE REPORT FY 2016 Property Management: Brambleton Community Association Mr. Richard Stone 4249 Ryan Road, Suite 210 Brambleton, Virginia Tel: rick.stone@brambleton.org Consultant: 929 West Street, Suite 310 Annapolis, Maryland Tel: Fax: Toll Free: July 30, 201 and revised September 20, 201

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6 Replacement Reserve Study BRAMBLETON GENERAL RESERVE BRAMBLETON, VIRGINIA Section A Replacement Reserve Analysis Executive Summary - A1 Reserve Status & Funding Plan - A1 General Information - A2 Cash Flow Method - A4 Component Method - A6 Current Association Funding - A8 Reserve Analysis - Comments - A9 Section B Replacement Reserve Inventory Replacement Reserve Inventory General Information - B1 Replacement Reserve Inventory Comments - B2 Schedule of Projected Replacements and Exclusions - B3 Scope. Brambleton is a community association in Brambleton, Virginia. Construction began at Brambleton in the early 2000's and continues today. The common elements of the community are divided into four inventories, General, Townhouse, Common Drive, and Recreation. This Study addresses components in the General Reserve including:! Community Centers (2)! Asphalt trails! Playgrounds! Tennis courts! Basketball & multipurpose courts! Decks and gazebos! Farm ponds! Equipment! Retaining walls! Masonry tuckpointing! Section 13 asphalt pavement Section C Projected Annual Replacements Projected Annual Replacements General Information - C1 Reserve Analysis & Inventory Policies, Procedure, & Administration - C1 Calendar of Projected Annual Replacements - C2 The components listed below have been broken out into a separate Replacement Reserve Analysis and Inventory::! Irrigation systems! Water features! Streetlights Level of Service. This study has been performed as a Level II Update, With Site Visit/On-Site Review as defined under the National Reserve Study Standards that have been adopted by the Community Associations Institute. As such, the component inventory is based on the study that was performed by our firm in August This information was adjusted to reflect changes to the inventory that were provided by the community manager, and the quantities were adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings. The condition of all commonly-owned components was ascertained from a site visit and the visual inspection of each component by the Analyst. The life expectancy and the value of components are provided based in part on these observations. The fund status and funding plan have been derived from analysis of this data. Section D Condition Assessment Section E Attachments Irrigation, Water Feature, Lighting Reserve Supplemental Photographs Appendix

7 Purpose. The purpose of this Replacement Reserve Study is to provide Brambleton, (hereinafter called the Association), with an inventory of the common community facilities and infrastructure components that require periodic replacement, a general view of the condition of these items, and an effective financial plan to fund projected periodic replacements. Inventory of items owned by the Association. Section B - Replacement Reserve Inventory, lists the Projected Replacements, which are commonly owned items that require periodic replacement using funding from Replacement Reserves. The Replacement Reserve Inventory also provides information about Excluded Items, which are items whose replacement is not scheduled for funding from Replacement Reserves. Condition of items owned by the Association. Section B - Replacement Reserve Inventory includes our estimates of the normal economic life and the remaining economic life for the Projected Replacements, those commonly owned items whose replacement is scheduled for funding from Replacement Reserves. Section C - Calendar of Projected Annual Replacements, provides a yearby-year listing of the Projected Replacements, based upon the data in the Inventory. Several of the items owned by the Association are discussed in more detail in Section D - Condition Assessment. Financial plan. To protect the appearance, value, and safety of the property, it is essential the Association have a financial plan that provides funding for the Projected Replacements. In conformance with American Institute of Certified Public Accountant guidelines, Section A - Replacement Reserve Analysis, evaluates the current funding of Replacement Reserves as reported by the Association, and recommends annual funding of Replacement Reserves by two generally accepted accounting methods; the Cash Flow Method and the Component Method. Section A - Replacement Reserve Analysis includes graphic and tabular presentations of these methods and current Association funding. An Executive Summary of these calculations is provided on Page A1. Basis. The data contained in this Replacement Reserve Study is based upon the following: The Request for Proposal submitted and executed by the Association. The August 2011, Replacement Reserve Study, prepared by Miller - Dodson Associates. Our visual evaluation and measurements in June and July, 201. Miller - Dodson Associates has visually inspected the common elements of the property in order to ascertain the remaining useful life and the replacement costs of these components. Acknowledgment. Miller - Dodson Associates would like to acknowledge the assistance and input of Richard Stone and Shantil Moyer. Analyst's Credential. This study has been performed by Wm. Bruce Bennett. Mr. Bennett holds a Bachelors of Architecture Degree from the Georgia Institute of Technology and did his graduate studies at the Technishe Universitat Hannover, in West Germany as the 1974 World Student Fund Fellow. From 1976 to 1991, Mr. Bennett ran a design-build firm in Northern Virginia. Since 1991 he has been a Reserve Specialist (RS) for Miller Dodson Associates. Respectfully Submitted, MILLER DODSON ASSOCIATES, INC. Wm Bruce Bennett Wm. Bruce Bennett, RS, Senior Reserve Analyst

8 Brambleton General Reserve Condition Assessment - Page D1 July 30, 201 and revised September 20, 201 CONDITION ASSESSMENT General Comments. Miller Dodson Associates conducted a Reserve Study at Brambleton in June and July, 201. The property is in good condition when compared to other recent and in-progress communities. A review of the General Reserve Replacement Reserve Inventory will show that we are anticipating most of the components achieving their normal economic lives. The following comments pertain to the larger, more significant components in the General Reserve Replacement Reserve Inventory and to those items that are unique or deserving of attention because of their condition or the manner in which they have been treated in the Replacement Reserve Analysis or Inventory. Site plans and drawings. The site plans, drawings, and documents made available to Miller Dodson Associates, Inc., for our review in conjunction with the preparation of this Replacement Reserve Study, were incomplete. We received no engineering drawings and the maps and other documents had errors that may have impacted our ability to properly identify common elements in the community. This is not unusual given the amount of construction in progress at the community, but it is going to be important in the future for the Association to acquire the a comprehensive documentation. The Association is responsible for the maintenance, repair, and replacement of hundreds of thousands of dollars of components. Attempting to accomplish these tasks without comprehensive site plans, drawings and documents places an unnecessary and expensive additional burden on the Association. As construction proceeds, we recommend the Association acquire comprehensive site plans and drawings, detailing the construction of all common elements of the community. These documents should be scanned into an electronic format and posted to an Association web site, where they will be an excellent resource for the residents, Board of Directors, and contractors working for the Association, in the coming years. The only immediate concern is regarding the numerous discrepancies in road names between the site maps, street signs, and public data bases such as Google. We recommend the Association confirm with all local emergency responders the their data bases accurately reflect and includes all of the streets and alleys construction at the community. Location - Sections. In addition to street names, we have used two additional systems in the Replacement Reserve Inventories and in the Condition Summaries to identify location. We received the adjacent map of the community identified as the Brambleton Master Plan - Map Shown with Proposed Re-Zoning Layout, dated October We used the Section names and numbers shown on this map to identify location.

9 Brambleton General Reserve Condition Assessment - Page D2 July 30, 201 and revised September 20, 201 Location - Sectors. The Brambleton Master Plan - Map Shown with Proposed Re-Zoning Layout, dated October 2014 does not effectively identify the open spaces nor is the numbering and naming system logical. We therefore developed our own system to identify location, dividing the community into nine Sectors using North Star Blvd., Belmont Ridge Road, Ryan Road, and Creighton Road, as shown on the adjacent map. The Sector identifications (North East NE, Central C, South West SW, etc) are shown in the yellow boxes. Comments on Site Evaluation. Notes in the General Reserve Replacement Reserve Inventory and Supplemental Photographs contain comments on specific components including discussion of defects we observe during our site evaluation. The following comments are not intended to restate these observations but address one of the following specific issues regarding the larger, more significant components at the community: Components that require specific comments because of the manner in which they have been treated in the Replacement Reserve Analysis. Comments on components that could not be properly addressed in the General Reserve Replacement Reserve Inventory or Supplemental Photographs. The comments on the following pages reflect the conditions found at the time of our site evaluation.

10 Brambleton General Reserve Condition Assessment - Page D3 July 30, 201 and revised September 20, 201 Community Center and Recreation Centers - general. When this Study was last updated in August 2011, the Inventory included the Brambleton Community Center & Pool (identified as Community Center or CC ) and the Beacon Crest Clubroom and Pool (identified as Beacon Crest or BEA ). In 2014, the community added Brambleton Corner Clubhouse and Pool (identified as Brambleton Corner or B ) and in 201 Stratford Landing Pool (identified as Stratford or S ), was opened, effectively doubling the facilities available to the residents. From a Replacement Reserve perspective, the two new facilities were constructed with attractive and durable materials and finishes. The older facilities were constructed to a similar standard and generally remain in good condition. In the General Reserve Replacement Reserve Inventory, we have assumed that day to day maintenance and repair costs associated with these facilities will not be funded out of Replacement Reserves, but that the interior fixtures, furnishings, and equipment in each of these facilities with under go a comprehensive renovation every 20 years and a minor touch-up renovation every years to insure they continue to present the same attractive appearance. Community Center - Balcony deck. A slate balcony in installed on the main level of the Community Center over the locker rooms that serve the swimming pools. The installation is in poor condition and this is a consequence of a poor initial design and poor execution of that design. Defects are allowing water penetration into the masonry below and if not corrected, the cost to correct consequential damage could be significantly higher than the like-kind replacement cost shown in the Inventory. We recommend the Association make replacement based on a new design that provides proper drainage, waterproofing, and flashing systems. This will likely require the services of a Architect or Professional Engineer. Asphalt pavement - Load Bearing Pavement (LBP) and Minimum Load Bearing Pavement (MLBP). The General Reserve Replacement Reserve Inventory identifies two types of asphalt pavement installed at the community. The common roads and parking areas are exposed to the heavy loads caused by cars and trucks and this pavement is identified as load bearing pavement (LBP). The asphalt trails should never see a load greater than that caused by a bicycle and this pavement is identified as minimum load bearing pavement (MLBP). While the physical materials are basically the same, the economic life, failure modes, maintenance requirements, and replacement methodologies are very different. Each of these pavement types is discussed below.

11 Brambleton General Reserve Load bearing asphalt pavement (LBP) - general. The General Replacement Reserve Inventory identifies approximately 28,641 square yards of LBP at the four Community/Recreation centers, the Park and Ride Lot, and in Section 13 (Beacon Crest). The Townhouse Replacement Reserve Inventory includes an additional 18, 738 square yards of LBP and the Common Drive Replacement Reserve Inventory includes a further 4,30 square yards. In total, the Replacement Reserve Inventories include approximately 186,000 square yards of LBP with a one-time replacement cost of approximately $4.17m. No information about the dates of installation or the specifications that were used to install the pavement was provided for our review. The pavement was generally in condition appropriate to the age of the pavement. Condition Assessment - Page D4 July 30, 201 and revised September 20, 201 Load bearing asphalt pavement (LBP) - replacement. The costs shown in the General Reserve Replacement Reserve Inventory assume the Association will replace the asphalt pavement by overlaying with 2 inches of new asphalt and that prior to the installation, the existing pavement will be milled to insure the new pavement can be properly graded to move all water to the stormwater system. The pavement replacement project is also assumed to include the evaluation of existing pavement, base materials, and bearing soils for damage that could impact the economic life of the new pavement. Areas of asphalt pavement with minor defects limited to the asphalt may be repairable with one of the fabric reinforcing sheets in use today, to prevent defects from printing though to the new asphalt pavement. Areas of asphalt pavement with more serious defects or where base materials and/or bearing soils beneath the pavement are damaged, will need to be need to be removed and replaced with materials capable of properly supporting the new pavement. If the defects are not corrected before the installation of the new asphalt pavement, the new pavement frequently begins failing almost immediately and will generally be at complete failure in three to five years. The replacement cost shown in the General Reserve Replacement Reserve Inventory assumes a normal replacement project with defects needing to be addressed at five to 10 percent of the total area. In the Washington metro area, a proper installed 2-inch asphalt overlay, after appropriate repairs, should have an economic life of 14 to 18 years. In the General Reserve Replacement Reserve Inventory, we have assumed that appropriate repairs will be made, that the new pavement will be properly installed, and that the LBP will have an economic life of 16 years. The remaining economic life of the pavement should be adjusted in the coming years when the General Reserve Replacement Reserve Inventory is updated, to reflect the actual condition of the asphalt pavement as it ages. This evaluation should be conducted every three to five years.

12 Brambleton General Reserve Load bearing asphalt pavement (LBP) - replacement - associated work. Defective segments of concrete curb & gutter adjacent to the LBP should be replaced prior to or in conjunction with the pavement project. This is of particular concern where the existing curb & gutter segments would prevent proper grading of the new pavement to move all water to the stormwater system. Condition Assessment - Page D July 30, 201 and revised September 20, 201 Utility installations under and in the general vicinity of the pavement scheduled for replacement should be evaluated. Pending or near future projects should accomplished prior to the installation of the new pavement. Where projects can not be completed prior to pavement installation, the possibility of resolving the problem with a piece of conduit available for future installations should be evaluated. Defective grading adjacent to the LBP that ponds water on the pavement will result in the pavement having a reduced economic life. The occurs at discharge curbs or along sections of pavement that do not have an adjacent curb & gutter. This defect should be corrected prior to or in conjunction with the other pavement work. Load bearing asphalt pavement (LBP) Interim Cycle - Maintenance & Repair Program. A program that provides for the timely correction of defects in the LBP is necessary if the pavement is to achieve its normal economic life. If the LBP is to achieve its maximum economic life (and lowest cost per square foot per year) the maintenance and repair work is done in conjunction with the installation of a penetrating sealant/coating specifically formulated to extend the economic life of the pavement. In the General Reserve Replacement Reserve Inventory, we have assumed that the Association will conduct an asphalt pavement, interim cycle maintenance and repair program including the tasks outlined below. Small crack and other minor damage. All small cracks and defects in the asphalt pavement should be sealed with an appropriate sealing compound to prevent water penetration through the pavement and water saturation of the base materials and bearing soils. Water saturated base materials and bearing soils are not able to properly support the loads placed on the pavement by cars and trucks resulting in additional cracks and even more water penetration. Cracks and other defects are larger that.2 inches can t be properly sealed with most crack sealing compounds and the appropriate remedy is outlined below.. LBP should be inspected and all minor cracking and other minor damage should be corrected annually.

13 Brambleton General Reserve Condition Assessment - Page D6 July 30, 201 and revised September 20, 201 Large cracks and significant damage. When cracks or defects are too large to be sealed with a sealing compound, or if the defects have resulted in displacement (indicating damage to the base materials or bearing soils), defective areas of LBP should be cut out and replaced. Areas of ponding water should be cut out and replaced with properly graded pavement. The correction of defective pavement my also require the replacement of curb & gutter segments and/or resetting of utility access points. Once the pavement is removed, the base materials, and bearing soils should be inspected. If the materials are water saturated or otherwise damaged and unable to properly support the repair, the materials should be cut out and replaced with material that can properly support the new pavement. The correction of these more major issues is best corrected immediately prior to and in conjunction with the Seal project outlined below. Cleaning. Long-term exposure to oil and gas breaks down asphalt. Automobiles leaking gas and/or oil should be removed from the community immediately and spill areas cleaned to prevent damage to the asphalt pavement. Severely damaged asphalt pavement damaged oil/gasoline should be identified and corrected annually. Seal. AFTER corrective actions outlined above have been accomplished the LBP should again be inspected to confirm that all of the defects (small and large) in the LBP have been properly corrected, there are no areas of ponding water, and that a defect-free surface is not allowing water to penetrate through the pavement to the base materials and bearing soils below. Only with this confirmed, will it be cost effective to seal the pavement. The maximum economic life can be achieved it a penetrating sealant, specifically formulated to extend the economic life of the pavement is used. Many of the products in common use today provide a uniform and cosmetically attractive appearance, but are little more than paint and are ineffective at extending the economic life of the pavement. This process is generally most effective at extending the economic life the pavement if it is done every three to five years. In the General Reserve Replacement Reserve Inventory, we have assumed that it will be done every 4 years. Striping. Striping of the parking places using one of the oil based paint systems has an economic life greater that the pavement seals, but a water based system required by many jurisdictions may require renewal between seal projects. We have include striping in the General Reserve Replacement Reserve Inventory to be accomplished at the midpoint between the every 4 year Seal projects. In the General Reserve Replacement Reserve Inventory, we have included funding for three Load Bearing Asphalt Pavement - Interim Cycle - Maintenance & Repair projects between major pavement replacement projects and that the projects will be funded from Replacement Reserves. The scope of the projects should include all of the tasks outlined above.

14 Brambleton General Reserve Condition Assessment - Page D7 July 30, 201 and revised September 20, 201 Proper care of the LBP requires and annual project to clean the pavement, crack seal, and correct minor defects. We have assumed that the cost of these annual projects, (except as discussed above, when they are an integral part of an Load Bearing Asphalt Pavement - Interim Cycle - Maintenance & Repair project will not be funded from Replacement Reserves. Asphalt trails - minimum load bearing pavement (MLBP) - general. The General Replacement Reserve Inventory identifies approximately 6,712 square yards of MLBP with a one-time replacement cost of approximately $1.77m. No information about the dates of installation or the specifications that were used to install the pavement was provided for our review. As with the LBP, the pavement, the MLBP was generally in condition appropriate to the age of the pavement. Minimum load bearing asphalt pavement - replacement. The standards we use to evaluate MLBP (asphalt trails) are different from those used to evaluate LBP (roadways, parking areas or any other asphalt pavement exposed to cars and trucks). MLBP does not have to support large loads. The water penetration into the base materials and bearing soils that results in the rapid and accelerated failure of LBP, is not of tremendous concern in MLBP. Defects in MLBP require corrective actions when the pavement is unsafe, cosmetically undesirable, when raveling edges or other pavement failure has significantly narrowed the trail, or when corrective actions and/or relocation is needed to resolve adjacent issues. Defects in MLBP can be corrected by removal & replacement, overlayment, milling (grinding), or a combination of the methods. How these standards related to the typical deterioration of MLBP is outlined below: Cracks - Raveling. Edge raveling is a normal occurrence at the unsupported edges of asphalt pavement. It is important that loose pieces of asphalt pavement be removed to eliminate any potential trip hazard and that adjacent grade adjusted to adjusted to better support the edge of the pavement. Trails with edge raveling require replacement only when the removal of the breakaway pavement that could result in a trip hazard results in a significant reduction in the width of the pavement.

15 Brambleton General Reserve Condition Assessment - Page D8 July 30, 201 and revised September 20, 201 Cracking - Longitudinal. Longitudinal cracking is a very common occurrence and unless there is displacement, no replacement is necessary. Where there is displacement that has resulted in a potential trip hazard, the pavement can be milled as long as it does not result in a pavement thickness less than 1 inch. Cracking - Transverse. Transverse cracking frequently results in displacement, but as with the longitudinal cracking, milling is preferred solution as long as it does not result in a pavement thickness less than 1 inch. Cracking - Alligatoring. Alligatored pavement in its initial stages does not require replacement but when the pavement is loose, it becomes a potential trip hazard and must be replaced. Overlay failures. MLBP is typically replaced by overlaying the old pavement. Thin overlays fail as a result of normal movement. We consider overlays that are less than 1 inch thick to be defective and recommend 1 ½ inch thick overlays. Overlays can also fail as defects from the original pavement print through the new pavement. Overlay defects, where they result in a potential trip hazard, may require replacement.

16 Brambleton General Reserve Condition Assessment - Page D9 July 30, 201 and revised September 20, 201 Sags and humps. Sags and humps are localized depressions or elevated areas of pavement that result from failure of the base materials and bearing soils, sub-grade swelling, or displacement due to tree roots. Milling humps that are potential trip hazards is the preferred repair as long as it does not result in a pavement thickness of less than 1 inch. Sags require replacement when they are potential trip hazards or when they result in water being impounded on the trail. Alignment with adjacent materials. Poor alignment of the MLBP with adjacent materials (other trails, driveways, roads, concrete sidewalks, aprons, etc.) can result in trip hazards that can only be corrected by replacement. Minimum load bearing asphalt pavement - replacement - expanded scope. Any cost effective project to correct defects in the MLBP must include the correction of the defect causing the defect. Defects that require correction include but are not limited to those outlined below: Defective grading. Defective grading adjacent to the pavement can impound water, silt, and debris on the pavement resulting in a trip hazard. Long term, even without the load of vehicles, water ponded on the pavement will cause excessive raveling and eventually replacement will be needed. Corrective actions may require more than simple regrading and in some instances, culverts may need to be installed to allow water to run under the MLBP. Tree Roots. Replacement of MLBP damaged by tree roots will have a very short economic life unless root pruning is accomplished prior to the pavement project. Professional arborists use a variety of techniques for root pruning including vibratory ripping and trenching. Root pruning can cut utility lines and damage or kill landscape features (trees, shrubs, hardscape, etc.) not located on common property. The team used by the Professional Engineer engaged to administer the project will likely need to include an arborist and legal council. Asphalt trails - minimum load bearing pavement (MLBP) - crack seal and coating. Crack sealing and coating of MLBP may not be cost effective at extending the economic life of MLBP, but it does have a tremendous cosmetic impact, thereby allowing the pavement to be kept in service for a much longer

17 Brambleton General Reserve Condition Assessment - Page D10 July 30, 201 and revised September 20, 201 period. The ability to correct defects rather than replace entire sections results in a significantly lower per square foot per year cost. In the General Reserve Replacement Reserve Inventory, we have assumed that the Association will crack seal and coat the MLBP. Because the crack sealing is being done primarily for cosmetic reasons, we have assumed that it will only be done immediately prior to and in conjunction with the installation of the coating on the trails. Care should be taken to insure the use of compatible materials both chemically and visually. Asphalt pavement - LBP and MLBP - cost effective administration. The costs associated with the maintenance, repair and replacement of the asphalt pavements both LBP and MLBP are significant portion of the expenditures that will be made the community in the coming years. The cost effective management of the pavements is critical to the financial health of the community. Proper management of the pavement requires inspections, pavement design, the development of specifications, and contract administration. These tasks are best accomplished by a Professinal Engineer representing the Association who is experienced with the local construction standards, local soils, local contractors, and local materials producers. Bridges and exercise stations. Bridges and exercise stations are located immediately adjacent to the asphalt trails. We have included line items in the Replacement Reserve Inventory for periodic renovation and replacements and scheduled these tasks to be done in conjunction with other work on the MLBP. Concrete components. The concrete flatwork (sidewalks) and curb & gutter throughout the community is generally of very good quality. The General Reserve Replacement Reserve Inventory assumes a replacement rate of ½ percent per year and assumes that the replacements will be done every four years in conjunction with work on the adjacent asphalt pavement. As the pavement ages, the percentage of pavement scheduled for replacement should be modified to reflect actual replacements. Playgrounds. The number of playgrounds throughout the community has expanded from five in August 2011 to twelve today. Eight of the playgrounds are new and one of the older playgrounds is scheduled to be abandoned. All of the new installations have used superior equipment and we have assumed that the equipment will have a 20 year economic life. The equipment in the Overlook East Play Area (Section 12) and the equipment recently installed in Section 24 use rope as an integral part of the equipment and this material is likely to have a shorter economic life than the other materials. We have included a mid-cycle renovation for these facilities to address rope replacement. We recommend an annual comprehensive evaluation of the playgrounds by a playground safety specialist. Defects identified by the playground safety specialist should be corrected as soon as possible to protect those using the tot lot from potential injury and the Association from potential liability for those injuries.

18 Brambleton General Reserve Condition Assessment - Page D11 July 30, 201 and revised September 20, 201 The older style equipment at the Community Center is rapidly approaching the end of its economic life and the Association should carefully monitor the equipment and make a replacement before any of the equipment fails. Stormwater system - general. The community is served by an extensive stormwater system that includes inlets, outlets, subsurface piping, rip-rap filters, concrete trickle ditches, impound areas, large wet ponds, overflow structures, spillways, access roads, fences signage, etc. The Association reports that most of these facilities are the responsibility of Loudoun County. We noted that several of the facilities that are to be maintained by Loudoun County are in need of maintenance. Farm ponds - Legacy, Lantana, and Olympia. The only ponds/impounds identified as being the responsibility of the Association are the Legacy, Lantana, and Olympia ponds. These farm ponds may function as stormwater impounds. Impound facilities accumulate silt and loose the ability to store stormwater. This could result in damage to the facilities, overflows, local flooding, and damaged to adjacent properties. Proper maintenance requires regular evaluation and we have included a line item in the General Reserve Replacement Reserve Inventory. We have assumed that any work beyond the inspections, will not be funded from Replacement Reserves..

19 Brambleton General Reserve Condition Assessment - Page D12 July 30, 201 and revised September 20, 201 Other ponds. In addition to the three ponds discussed above, a brief review of the aerial photographs of the community shows at least nine other ponds are located throughout the community. We recommend that the scope of the initial evaluation of the three ponds specifically listed above be expanded to include the community as a whole to insure that all Association responsibilities have been identified. Irrigation system. The community has an unusually large amount of very attractive landscaping. We noted that most of the landscaped areas are irrigated, but several of the systems were out of service when we were on site. The daily operation of the facilities is beyond the scope of this Study and any repairs or replacements are assumed to be funded Operations, not Replacement Reserves. However, irrigation systems have a limited economic life. Because of the extent of the landscaping at Brambleton, the typical models for residential communities are not appropriate and we used our experience with major golf and country clubs to provide the model. We assumed a 24 year economic life for the irrigation systems and that to achieve this, a mid-cycle renovation will be necessary. We then assumed that each of these projects would be done in four phases, because of the differences in the ages of the systems. Water features. Two major and one smaller water features are installed at the community. The previous General Reserve Replacement Reserve Inventory included funding for pump replacements and periodic minor repairs, but there was no discussion of replacement. Many of the components such as underground piping, electrical services, control wiring valves, waterproofing membranes, pump houses, pump house bunkers, and even reinforced concrete have a limited economic life. Flowing water serves only to accelerate deterioration. We have assigned an economic life on the overall facilities of 60 years with 48 years remaining. This places a comprehensive replacement beyond the window evaluated by our Study but is included to make the Association aware of the pending expense potential. We have included a line item for major renovation every 16 years and more minor equipment (plumbing, electrical, pump houses, etc.) renovations every 4 years.

20 Brambleton General Reserve Condition Assessment - Page D13 July 30, 201 and revised September 20, 201 Our evaluation of the water features was visual and non-destructive. We did not have access to the bunker at the Legacy Park feature. We recommend a comprehensive evaluation of the feature by a Professional Engineer experienced in the construction and maintenance of such features. We will modify our Study to reflect the findings of that evaluation. The small water feature south of the Community Center was not in operation when we were on site. Streetlights. In the older sections of the community, the streetlights are the responsibility of one of the local power companies. We understand that in the recently constructed sections of the community, the power companies have been unable to make timely installations of the streetlights and the various home builders have been installing the streetlights and will be passing responsibility for the streetlights, underground wiring, electrical services, etc., to the Association. In the General Reserve Replacement Reserve Inventory, we have included the streetlights in the recently constructed sections of the community. We believe the list is over inclusive. Some of the listed streetlights have markings indicting that they are the responsibility of the local power company. When final ownership and responsibility is resolved we will modify the General Reserve Replacement Reserve Inventory to reflect the findings of the Association. This Condition Assessment is based upon our visual survey of the property. The sole purpose of the visual survey was an evaluation of the common elements of the property to ascertain the remaining useful life and the replacement costs of these common elements. Our evaluation assumed that all components met building code requirements in force at the time of construction. Our visual survey was conducted with care by experienced persons, but no warranty or guarantee is expressed or implied. End of Condition Assessment

21 Replacement Reserve Analysis - Page A1 General Reserve September 20, GENERAL16 EXECUTIVE SUMMARY The General Reserve Replacement Reserve Analysis uses the Cash Flow Method (CFM) to calculate Replacement Reserve funding for the periodic replacement of the 208 Projected Replacements identified in the Replacement Reserve Inventory. $301,326 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR THE STUDY YEAR, 2016 We recommend the Association adopt a Replacement Reserve Funding Plan based on the annual funding recommendation above. Inflation adjusted funding for subsequent years is shown on Page A. General Reserve reports a Starting Balance of $1,00,000 and Annual Funding totaling $164,86. Current funding is inadequate to fund the $13,364,10 of Projected Replacements scheduled in the Replacement Reserve Inventory over the 40-year Study Period. See Page A3 for a more detailed evaluation. #1 - Cumulative Replacement Reserve Funding and Expenditures Graph $1,000,000 Cash Flow Method - Cumulative Receipts Current Funding - Cumulative Receipts Projected Replacements - Cumulative Expenditures 13,3,031 $13,364,10 $10,000,000 8,094,240 $,000,000 $ The Current Funding Objective as calculated by the Component Method (Fully Funded) is $1,296,890 making the reserve account 11.7% funded. See the Appendix for more information on this method.

22 Replacement Reserve Analysis - Page A2 General Reserve September 20, GENERAL16 REPLACEMENT RESERVE ANALYSIS - GENERAL INFORMATION The General Reserve Replacement Reserve Analysis calculations of recommended funding of Replacement Reserves by the Cash Flow Method and the evaluation of the Current Funding are based upon the same Study Year, Study Period, Beginning Balance, Replacement Reserve Inventory and Level of Service STUDY YEAR The Association reports that their accounting year begins on January 1, and the Study Year, the first year evaluated by the Replacement Reserve Analysis, begins on January 1, Years STUDY PERIOD The Replacement Reserve Analysis evaluates the funding of Replacement Reserves over a 40-year Study Period. $1,00,000 STARTING BALANCE The Association reports Replacement Reserves on Deposit totaling $1,00,000 at the start of the Study Year. Level Two LEVEL OF SERVICE The Replacement Reserve Inventory has been developed in compliance with the National Reserve Study Standards for a Level Two Study, as defined by the Community Associations Institute (CAI). $13,364,10 REPLACEMENT RESERVE INVENTORY - PROJECTED REPLACEMENTS The General Reserve Replacement Reserve Inventory identifies 208 items that will require periodic replacement, that are to be funded from Replacement Reserves. We estimate the cost of these replacements will be $13,364,10 over the 40-year Study Period. The Projected Replacements are divided into 34 major categories starting on Page B3. Pages B1-B2 provide detailed information on the Replacement Reserve Inventory. #2 - Annual Expenditures for Projected Replacements Graph This graph shows annual expenditures for Projected Replacements over the 40-year Study Period. The red line shows the average annual expenditure of $334,103. Section C provides a year by year Calender of these expenditures. $800,000 $700,000 $600,000 $00,000 $400,000 $300,000 $200,000 $334, year Average $239,176 $22,338 $37,944 $236,41 $223,219 $204,80 $26,961 $200,999 $410,279 $760,648 $371,982 $204,341 $306,702 $30,266 $324,010 $173,347 $229,790 $38,999 $628,7 $302,687 $260,48 $249,008 $448,48 $337,014 $242,41 $697,823 $317,913 $190,987 $394,379 $237,21 $43,721 $206,237 $314,917 $316,93 $310,380 $189,897 $262,421 $4,364 $39,132 $302,687 $100,000 $

23 Replacement Reserve Analysis - Page A3 General Reserve September 20, GENERAL16 UPDATING UPDATING OF THE FUNDING PLAN The Association has a responsibility to review the Funding Plan annually. The review should include a comparison and evaluation of actual reserve funding with recommended levels shown on Page A4 and A. The Projected Replacements listed on Page C2 should be compared with any replacements accomplished and funded from Replacement Reserves. Discrepancies should be evaluated and if necessary, the Reserve Study should be updated or a new study commissioned. We recommend annual increases in replacement reserve funding to account for the impact of inflation. Inflation Adjusted Funding is discussed on Page A. UPDATING OF THE REPLACEMENT RESERVE STUDY At a minimum, the Replacement Reserve Study should be professionally updated every three to five years or after completion of a major replacement project. Updating should also be considered if during the annual review of the Funding Plan, discrepancies are noted between projected and actual reserve funding or replacement costs. Updating may also be necessary if there is a meaningful discrepancy between the actual inflation rate and the inflation rate used for the Inflation Adjusted Funding of Replacement Reserves on Page A. ANNUAL EXPENDITURES AND CURRENT FUNDING The annual expenditures that comprise the $13,364,10 of Projected Expenditures over the 40-year Study Period and the impact of the Association continuing to fund Replacement Reserves at the current level are detailed in Table 3. #3 - Table of Annual Expenditures and Current Funding Data - Years 1 through 40 Year Starting Balance $1,00,000 Projected Replacements ($239,176) ($22,338) ($37,944) ($236,41) ($223,219) ($204,80) ($26,961) ($200,999) ($410,279) ($760,648) Annual Deposit $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 End of Year Balance $1,42,680 $1,36,198 $1,172,110 $1,100,1 $1,042,188 $1,002,239 $910,13 $873,991 $628,68 $32,776 Cumulative Expenditures ($239,176) ($464,14) ($822,48) ($1,08,873) ($1,282,092) ($1,486,897) ($1,743,87) ($1,944,87) ($2,3,136) ($3,11,784) Cumulative Receipts $1,664,86 $1,829,712 $1,994,68 $2,19,424 $2,324,280 $2,489,136 $2,63,992 $2,818,848 $2,983,704 $3,148,60 Year Projected Replacements ($371,982) ($204,341) ($306,702) ($30,266) ($324,010) ($173,347) ($229,790) ($38,999) ($628,7) ($302,687) Annual Deposit $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 End of Year Balance ($174,30) ($213,836) ($3,682) ($41,092) ($700,246) ($708,737) ($773,671) ($1,147,813) ($1,611,712) ($1,749,43) Cumulative Expenditures ($3,487,766) ($3,692,108) ($3,998,810) ($4,349,076) ($4,673,086) ($4,846,433) ($,076,223) ($,61,221) ($6,243,976) ($6,46,663) Cumulative Receipts $3,313,416 $3,478,272 $3,643,128 $3,807,984 $3,972,840 $4,137,696 $4,302,2 $4,467,408 $4,632,264 $4,797,120 Year Projected Replacements ($260,48) ($249,008) ($448,48) ($337,014) ($242,41) ($697,823) ($317,913) ($190,987) ($394,379) ($237,21) Annual Deposit $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 End of Year Balance ($1,84,23) ($1,929,387) ($2,213,016) ($2,38,174) ($2,462,732) ($2,99,700) ($3,148,77) ($3,174,888) ($3,404,411) ($3,477,07) Cumulative Expenditures ($6,807,211) ($7,06,219) ($7,04,704) ($7,841,718) ($8,084,132) ($8,781,96) ($9,099,869) ($9,290,86) ($9,68,23) ($9,922,7) Cumulative Receipts $4,961,976 $,126,832 $,291,688 $,46,44 $,621,400 $,786,26 $,91,112 $6,11,968 $6,280,824 $6,44,680 Year Projected Replacements ($43,721) ($206,237) ($314,917) ($316,93) ($310,380) ($189,897) ($262,421) ($4,364) ($39,132) ($302,687) Annual Deposit $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 $164,86 End of Year Balance ($3,76,941) ($3,807,322) ($3,97,383) ($4,109,120) ($4,24,644) ($4,279,684) ($4,377,20) ($4,77,78) ($,132,034) ($,269,86) Cumulative Expenditures ($10,376,477) ($10,82,714) ($10,897,631) ($11,214,224) ($11,24,604) ($11,714,00) ($11,976,922) ($12,22,286) ($13,061,418) ($13,364,10) Cumulative Receipts $6,610,36 $6,77,392 $6,940,248 $7,10,104 $7,269,960 $7,434,816 $7,99,672 $7,764,28 $7,929,384 $8,094,240 EVALUATION OF CURRENT FUNDING The evaluation of Current Funding (Starting Balance of $1,00,000 & annual funding of $164,86), is done in today's dollars with no adjustments for inflation or interest earned on Replacement Reserves. The evaluation assumes Replacement Reserves will only be used for the 208 Projected Replacements identified in the Replacement Reserve Inventory and that the Association will continue Annual Funding of $164,86 throughout the 40-year Study Period. Annual Funding of $164,86 is approximately percent of the $301,326 recommended Annual Funding calculated by the Cash Flow Method for 2016, the Study Year. Evaluation of the 208 Projected Replacements calculates an average annual expenditure over the next 40 years of $334,103. Annual funding of $164,86 is 49 percent of the average annual expenditure. Our calculations identify funding shortfalls in 30 years of the Study Period with the initial shortfall in The largest shortfall, $-,269,86, occurs in 204. All shortfalls can be seen and evaluated in Table 3 above. In summary, Current Funding as reported by the Association and shown above, does not provide adequate funding for the $13,364,10 of Projected Replacements scheduled in the Replacement Reserve Inventory over the Study Period.

24 Replacement Reserve Analysis - Page A4 General Reserve September 20, GENERAL16 CASH FLOW METHOD FUNDING $301,326 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR 2016 Recommended Replacement Reserve Funding has been calculated using the Cash Flow Method (also called the Straight Line or Threshold Method). This method calculates a constant annual funding between peaks in cumulative expenditures, while maintaining a Minimum Balance (threshold) in the Peak Years. Peak Years. The First Peak Year occurs in 20 with Replacement Reserves on Deposit dropping to the Reserves on Deposit dropping to the Minimum Balance after the completion of $13,364,10 of Projected Replacemen Recommended annual funding of $301,326 remains constant throughout the entire 40-year Study Period. Minimum Balance. The calculations assume a Minimum Balance of $188,926 in Replacement Reserves. This is approx. 7 months of average expenditures based on the $334,103, 40-year average annual expenditure. Cash Flow Method Study Period. Cash Flow Method calculates funding for $13,364,10 of expenditures over the 40-year Study Period. It does not include funding for any projects beyond 20 and in 20, the end of year balance will always be the Minimum Balance. #4 - Cash Flow Method - Graph of Cumulative Receipts and Expenditures - Years 1 through 40 $1,000,000 Cash Flow Method - Cumulative Receipts Cash Flow Method - Year End Balance Cumulative Expenditures Peak Year $13,3,031 $13,364,10 $10,000,000 $,000,000 $0 $188, # - Cash Flow Method - Table of Receipts & Expenditures - Years 1 through 40 Year Starting Balance $1,00,000 Projected Replacements ($239,176) ($22,338) ($37,944) ($236,41) ($223,219) ($204,80) ($26,961) ($200,999) ($410,279) ($760,648) Annual Deposit $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 End of Year Balance $1,62,10 $1,638,138 $1,81,20 $1,646,430 $1,724,37 $1,821,08 $1,86,423 $1,96,749 $1,86,796 $1,397,474 Cumulative Expenditures $239,176 $464,14 $822,48 $1,08,873 $1,282,092 $1,486,897 $1,743,87 $1,944,87 $2,3,136 $3,11,784 Cumulative Receipts $1,801,326 $2,102,62 $2,403,977 $2,70,303 $3,006,629 $3,307,9 $3,609,280 $3,910,606 $4,211,932 $4,13,28 Year Projected Replacements ($371,982) ($204,341) ($306,702) ($30,266) ($324,010) ($173,347) ($229,790) ($38,999) ($628,7) ($302,687) Annual Deposit $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 End of Year Balance $1,326,817 $1,423,802 $1,418,42 $1,369,48 $1,346,801 $1,474,780 $1,46,31 $1,308,642 $981,213 $979,82 Cumulative Expenditures ($3,487,766) ($3,692,108) ($3,998,810) ($4,349,076) ($4,673,086) ($4,846,433) ($,076,223) ($,61,221) ($6,243,976) ($6,46,663) Cumulative Receipts $4,814,83 $,11,909 $,417,23 $,718,61 $6,019,887 $6,321,212 $6,622,38 $6,923,864 $7,22,190 $7,26,1 Year Projected Replacements ($260,48) ($249,008) ($448,48) ($337,014) ($242,41) ($697,823) ($317,913) ($190,987) ($394,379) ($237,21) Annual Deposit $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 End of Year Balance $1,020,630 $1,072,948 $92,789 $890,101 $949,012 $2,1 $3,927 $646,266 $3,213 $617,018 Cumulative Expenditures ($6,807,211) ($7,06,219) ($7,04,704) ($7,841,718) ($8,084,132) ($8,781,96) ($9,099,869) ($9,290,86) ($9,68,23) ($9,922,7) Cumulative Receipts $7,827,841 $8,129,167 $8,430,493 $8,731,819 $9,033,144 $9,334,470 $9,63,796 $9,937,122 $10,238,447 $10,39,773 Year st Peak - 20 Projected Replacements ($43,721) ($206,237) ($314,917) ($316,93) ($310,380) ($189,897) ($262,421) ($4,364) ($39,132) ($302,687) Annual Deposit $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 $301,326 End of Year Balance $464,622 $9,711 $46,120 $30,82 $21,798 $633,227 $672,132 $428,094 $190,287 $188,926 Cumulative Expenditures ($10,376,477) ($10,82,714) ($10,897,631) ($11,214,224) ($11,24,604) ($11,714,00) ($11,976,922) ($12,22,286) ($13,061,418) ($13,364,10) Cumulative Receipts $10,841,099 $11,142,42 $11,443,70 $11,74,076 $12,046,402 $12,347,728 $12,649,04 $12,90,379 $13,21,70 $13,3,031

25 Replacement Reserve Analysis - Page A General Reserve September 20, GENERAL16 INFLATION ADJUSTED FUNDING The Cash Flow Method calculations on Page A4 have been done in today's dollars with no adjustment for inflation. At Miller + Dodson, we belive that long-term inflation forecasting is effective at demonstrating the power of compounding, not at calculating appropriate funding levels for Replacement Reserves. We have developed this proprietary model to estimate the short-term impact of inflation on Replacement Reserve funding. $301, CASH FLOW METHOD RECOMMENDED FUNDING #6 - Inflation Adjusted Funding The 2016 Study Year calculations have been made using current replacement costs $400,000 (see Page B2), modified by the Analyst for any project specific conditions. $316, INFLATION ADJUSTED FUNDING A new analysis calculates 2017 funding based on three assumptions; Replacement Reserves on Deposit totaling $1,62,10 on January 1, All 2016 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $239,176. Construction Cost Inflation of 4.0 percent in The $316,698 inflation adjusted funding in 2017 is a.10 percent increase over the non-inflation adjusted 2017 funding of $301,326. $300,000 $301,326 $301,326 $301,326 $316,698 $301,326 $332,948 $301,326 $349,912 $332, INFLATION ADJUSTED FUNDING A new analysis calculates 2018 funding based on three assumptions; Replacement Reserves on Deposit totaling $1,643,370 on January 1, All 2017 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $23,478. Construction Cost Inflation of 4.0 percent in The $332,948 inflation adjusted funding in 2018 is a percent increase over the non-inflation adjusted 2018 funding of $301,326. $200,000 $100,000 $349, INFLATION ADJUSTED FUNDING A new analysis calculates 2019 funding based on three assumptions; Replacement Reserves on Deposit totaling $1,8,434 on January 1, All 2018 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $390,884. Construction Cost Inflation of 4.0 percent in The $349,912 inflation adjusted funding in 2019 is a percent increase over the non-inflation adjusted funding of $301, YEAR FIVE & BEYOND The inflation adjusted funding calculations outlined above are not intended to be a substitute for periodic evaluation of common elements by an experienced Reserve Analyst. Industry Standards, lender requirements, and many state and local statutes require a Replacement Reserve Study be professionally updated every 3 to years. INFLATION ADJUSTMENT Prior to approving a budget based upon the 2017, 2018 and 2019 inflation adjusted funding calculations above, the 4.0 percent base rate of inflation used in our calculations should be compared to rates published by the Bureau of Labor Statistics. If there is a significant discrepancy (over 1 percent), contact Miller Dodson + Associates prior to using the Inflation Adjusted Funding. INTEREST ON RESERVES The recommended funding calculations do not account for interest earned on Replacement Reserves. In 2016, based on a 1.00 percent interest rate, we estimate the Association may earn $1,311 on an average balance of $1,31,07, $16,028 on an average balance of $1,602,760 in 2017, and $16,144 on $1,614,402 in The Association may elect to attribute 100 percent of the earned interest to Reserves, resulting in a reduction in the 2016 minimum funding from $301,326 to $286,01 (a.08 percent reduction), $316,698 to $300,670 in 2017 (a.06 percent reduction), and $332,948 to $316,804 in 2018 (a 4.8 percent reduction). $0 Cash Flow Method Funding Inflation Adjusted Funding

26 Replacement Reserve Analysis - Page A6 General Reserve September 20, GENERAL16 REPLACEMENT RESERVE STUDY - SUPPLEMENTAL COMMENTS The Cash Flow Method calculates the minimum annual funding necessary to prevent Replacement Reserves from dropping below the Minimum Balance. Failure to fund at least the recommended levels may result in funding not being available for the Projected Replacements listed in the Replacement Reserve Inventory. The accuracy of the Replacement Reserve Analysis is dependent upon expenditures from Replacement Reserves being made ONLY for the 208 Projected Replacements specifically listed in the Replacement Reserve Inventory. The inclusion/exclusion of items from the Replacement Reserve Inventory is discussed on Page B1. The Association reports Replacement Reserves on January 1, 2016 will total $1,100,000 and that they are currently contributing $13,738 per month to General Reserves. The final version of the previous Replacement Reserve Study was dated August 12, 2011 and had a 2012 Study Year. August 28, 201. Increased Replacement Reserves on Deposit by $400,000. September 20, 201. Various revisions as noted on the Inventory pages.

27 Replacement Reserve Inventory - Page B1 General Reserve September 20, GENERAL16 REPLACEMENT RESERVE INVENTORY GENERAL INFORMATION General Reserve - Replacement Reserve Inventory identifies 346 items. Two types of items are identified, Projected Replacements and Excluded Items: PROJECTED REPLACEMENTS. 208 of the items are Projected Replacements and the periodic replacements of these items are scheduled for funding from Replacement Reserves. The Projected Replacements have an estimated one-time replacement cost of $3,778,2. Replacements totaling $13,364,10 are scheduled in the Replacement Reserve Inventory over the 40-year Study Period. Projected Replacements are the replacement of commonly-owned physical assets that require periodic replacement and whose replacement is to be funded from Replacement Reserves. EXCLUDED ITEMS. 138 of the items are Excluded Items, and expenditures for these items are NOT scheduled for funding from Replacement Reserves. The accuracy of the calculations made in the Replacement Reserve Analysis is dependent on expenditures NOT being made for Excluded Items. The Excluded Items are listed in the Replacement Reserve Inventory to identify specific items and categories of items that are not to be funded from Replacement Reserves. There are multiple categories of items that are typically excluded from funding by Replacement Reserves, including but not limited to: Tax Code. The United States Tax Code grants very favorable tax status to Replacement Reserves, conditioned on expenditures being made within certain guidelines. These guidelines typically exclude maintenance activities, minor repairs and capital improvements. Value. Items with a replacement cost of less that $1,000 and/or a normal economic life of less than 3 years are typically excluded from funding from Replacement Reserves. This exclusion should reflect Association policy on the administration of Replacement Reserves. If the Association has selected an alternative level, it will be noted in the Replacement Reserve Inventory - General Comments on Page B2. Long-lived Items. Items that when properly maintained, can be assumed to have a life equal to the property as a whole, are typically excluded from the Replacement Reserve Inventory. Unit improvements. Items owned by a single unit and where the items serve a single unit are generally assumed to be the responsibility of that unit, not the Association. Other non-common improvements. Items owned by the local government, public and private utility companies, the United States Postal Service, Master Associations, state and local highway authorities, etc., may be installed on property that is owned by the Association. These types of items are generally not the responsibility of the Association and are excluded from the Replacement Reserve Inventory. The rationale for the exclusion of an item from funding by Replacement Reserves is discussed in more detail in the 'Comments' sections of the Section B - Replacement Reserve Inventory. CATEGORIES. The 346 items included in the General Reserve Replacement Reserve Inventory are divided into 34 major categories. Each category is printed on a separate page, Pages B3 to B36. LEVEL OF SERVICE. This Replacement Reserve Inventory has been developed in compliance with the standards established for a Level Two - Update (with site visit and on-site review), as defined by the National Reserve Study Standards, established in 1998 by Community Associations Institute, which states: Level II Studies are based entirely on the component inventory from a prior study. This information is adjusted to reflect changes to the inventory that are provided by the Association, and the quantities are adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings that are made available to us. The condition of all components is ascertained from a site visit and the visual inspection of each component by the analyst. The Remaining Economic Life and replacement cost of components are provided based in part on these observations. The fund status and Funding Plan are derived from analysis of this data.

28 Replacement Reserve Inventory - Page B2 General Reserve September 20, GENERAL16 REPLACEMENT RESERVE INVENTORY - GENERAL INFORMATION (cont'd) INVENTORY DATA. Each of the 208 Projected Replacements listed in the Replacement Reserve Inventory includes the following data: Item Number. The Item Number is assigned sequentially and is intended for identification purposes only. Item Description. We have identified each item included in the Inventory. Additional information may be included in the Comments section at the bottom of each page of the Inventory. Units. We have used standard abbreviations to identify the number of units including SF-square feet, LF-lineal feet, SY-square yard, LS-lump sum, EA-each, and PR-pair. Non-standard abbreviations are noted in the Comments section at the bottom of the page. Number of Units. The methods used to develop the quantities are discussed in "Level of Service" above. Unit Replacement Cost. We use four sources to develop the unit cost data shown in the Inventory; actual replacement cost data provided by the client, information provided by local contractors and suppliers, industry standard estimating manuals, and a cost database we have developed based upon our detailed interviews with contractors and service providers who are specialists in their respective lines of work. Normal Economic Life (Yrs). The number of years that a new and properly installed item should be expected to remain in service. Remaining Economic Life (Yrs). The estimated number of years before an item will need to be replaced. In "normal" conditions, this could be calculated by subtracting the age of the item from the Normal Economic Life of the item, but only rarely do physical assets age "normally". Some items may have longer or shorter lives depending on many factors such as environment, initial quality of the item, maintenance, etc. Total Replacement Cost. This is calculated by multiplying the Unit Replacement Cost by the Number of Units. Each of the 138 Excluded Items includes the Item Description, Units, and Number of Units. Many of the Excluded Items are listed as a 'Lump Sum' with a quantity of 1. For the Excluded Items, this indicates that all of the items identified by the 'Item Description' are excluded from funding by Replacement Reserves. REVIEW OF EXPENDITURES. This Replacement Reserve Study should be reviewed by an accounting professional representing the Association prior to implementation. PARTIAL FUNDING. Items may have been included in the Replacement Reserve Inventory at less than 100 percent of their full quantity and/or replacement cost. This is done on items that will never be replaced in their entirety, but which may require periodic replacements over an extended period of time. The assumptions that provide the basis for any partial funding are noted in the Comments section. REMAINING ECONOMIC LIFE GREATER THAN 40 YEARS. The calculations do not include funding for initial replacements beyond 40 years. These replacements are included in this Study for tracking and evaluation. They should be included for funding in future Studies, when they enter the 40-year window.

29 Replacement Reserve Inventory - Page B3 General Reserve September 20, GENERAL16 COMMUNITY CENTER (CC) SITE IMPROVEMENTS PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 1 CC Parking area - replace pavement sy 4,980 $ $77,19 2 CC Asphalt pavement interim cycle 1 sy 4,980 $ $8,96 3 CC Asphalt pavement interim cycle 2 sy 4,980 $ $9,861 4 CC Asphalt pavement interim cycle 3 sy 4,980 $ none 2 $11,206 CC Concrete curb & gutter (2%) ft 46 $ $1,80 6 CC Flatwork (2%) sf 0 $ $40 7 CC Parking bay marking ea 123 $ $1,33 8 CC Cobblestone drive - reset (10%) sf 39 $ none 2 $1,82 9 CC Cobblestone drive - replace pavers sf 3,94 $ $63, CC Cobblestone walks - reset (10%) ft 19 $ none 2 $ CC Cobblestone walk - replace pavers ft 1,90 $ $2, CC Metal light poles (8') ea 6 $1, $7, CC Wood fence at dumpster ft 111 $ $,0 CC Wood shed at dumpster ls 1 3 EXCLUDED COMMUNITY CENTER (CC) SITE IMPROVEMENTS - Replacement Costs - Subtotal $214,281 COMMUNITY CENTER (CC) SITE IMPROVEMENTS COMMENTS Replace pavement. This line item includes the asphalt pavement in the parking area adjacent to the Community Center. The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Concrete components. We have scheduled concrete flatwork (sidewalks & stairs) and curb & gutter replacements to be accomplished in conjunction with the "replace pavement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates Wood shed at dumpster is the responsibility of the Swim Team.

30 Replacement Reserve Inventory - Page B4 General Reserve September 20, GENERAL16 COMMUNITY CENTER (CC) EXTERIOR PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 14 CC Duraslate shingle roofing sf 3,226 $ $29,034 1 CC Membrane roofing sf 8 $ $8, CC Gutters & downspouts ft 07 $ $3, CC Tuckpoint masonry facade (sf) sf 608 $ none 2 $7, CC Windows ea 64 $ $7, CC Exterior doors ea 16 $1, $24, CC Exterior fascia, soffit, & trim ls 1 $8, $8, CC Balcony deck - membrane & slate sf 40 $ none 2 $10, CC Balcony railing - renovation ft 40 $ none 2 $ CC Balcony railing - replace ft 40 $ $2,200 COMMUNITY CENTER (CC) EXTERIOR - Replacement Costs - Subtotal $12,291 COMMUNITY CENTER (CC) EXTERIOR COMMENTS Tuckpoint masonry facade. We have included the masonry stoops, steps, stone features near the main entrance, brick facade, stone facade, and the precast water table in this line item and assumed that 10 percent of the total area will be tuckpointed every 10 years. The pending project should include the installation of needed throughway flashings in the stone features near the main entrance. We have assumed the project will include the replacement of all sealants installed in the facade. Exterior trim. We have assumed that comprehensive exterior painting projects will be conducted every 4 years and this line item is intended to fund the replacement of deteriorated exterior materials in conjunction with that project. The painting project is a maintenance project and is not included in this Inventory. We recommend that replacements be made using one of the synthetic trim products on the market today, thereby eliminating the need for future replacements. Windows & doors. We have assumed a comprehensive replacement project all windows and doors. Balcony. The slate balcony over the locker rooms should be installed with proper design and drainage. Balcony railings. Each balcony project will require that the railing be reset. Membrane roof. The roof should be monitored and replaced at failure.

31 Replacement Reserve Inventory - Page B General Reserve September 20, GENERAL16 COMMUNITY CENTER (CC) INTERIOR & EQUIPMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 24 CC Interior FF&E general renovation sf 4,600 $ $92,000 2 CC Interior FF&E minor renovation sf 4,600 $ $13, CC Carpet - replace sf 2,22 $4.0 7 none 2 $10, CC Wood flooring - replace sf 1,100 $ $24, CC Ceramic/stone tiles - replace sf 420 $ $, CC Rooftop mounted HVAC systems ea 4 $11, $44, CC Ground mounted HVAC systems ea 3 $8, $24, CC Water heater, 100 gal, gas-fired ea 1 $9, $9, CC Fire protection & annunciator ea 1 $1, $1, CC Security & monitoring ls 1 $, $,000 COMMUNITY CENTER (CC) INTERIOR & EQUIPMENT - Replacement Costs - Subtotal $242,893 COMMUNITY CENTER (CC) INTERIOR & EQUIPMENT COMMENTS Community Center renovation. We have consolidated the fixtures, furnishings & equipment (excluding those components specifically listed above) in the meeting rooms, TV room, board room, offices, entrance foyer, restrooms, stair halls, halls and kitchen in this line item and assumed that a major (comprehensive) renovation will be conducted every 20 years and minor renovations every years.

32 Replacement Reserve Inventory - Page B6 General Reserve September 20, GENERAL16 BEACON CREST (BEA) SITE IMPROVEMENTS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) BEA Parking area - replace pavement sy 1 3 EXCLUDED BEA Asphalt pavement interim cycle 1 sy 1 3 EXCLUDED BEA Asphalt pavement interim cycle 2 sy 1 3 EXCLUDED BEA Asphalt pavement interim cycle 3 sy 1 3 EXCLUDED BEA Concrete curb & gutter (2%) ft 1 3 EXCLUDED BEA Flatwork (2%) sf 1 3 EXCLUDED BEA Parking bay marking ea 1 3 EXCLUDED BEA Decorative post lights & poles ea 1 3 EXCLUDED BEA Decorative wall lights ea 1 3 EXCLUDED BEACON CREST (BEA) SITE IMPROVEMENTS COMMENTS The components on this page were moved from the General Reserve to Recreation Reserve.

33 Replacement Reserve Inventory - Page B7 General Reserve September 20, GENERAL16 BEACON CREST (BEA) EXTERIOR, INTERIOR & EQUIPMENT EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) BEA Asphalt shingle roofing ls 1 3 EXCLUDED BEA Gutters & downspouts ft 1 3 EXCLUDED BEA Cementitious siding & trim sf 1 3 EXCLUDED BEA Tuckpoint masonry facade (10%) sf 1 3 EXCLUDED BEA Windows (39) sf 1 3 EXCLUDED BEA Exterior doors - storefront ea 1 3 EXCLUDED BEA Exterior doors - metal ea 1 3 EXCLUDED BEA Exterior doors - glazed ea 1 3 EXCLUDED BEA roll-up door ea 1 3 EXCLUDED BEA Clubroom FF&E renovation sf 1 3 EXCLUDED BEA Clubroom FF&E minor renovation sf 1 3 EXCLUDED BEA Family restroom renovation ea 1 3 EXCLUDED BEA HVAC system ea 1 3 EXCLUDED BEA Water heater ea 1 3 EXCLUDED BEA Security & monitoring ls 1 3 EXCLUDED BEACON CREST (BEA) EXTERIOR, INTERIOR & EQUIPMENT COMMENTS The components on this page were moved from the General Reserve to Recreation Reserve.

34 Replacement Reserve Inventory - Page B8 General Reserve September 20, GENERAL16 BRAMBLETON CORNER (B) SITE IMPROVEMENTS PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 34 B Parking area - replace pavement sy 2,308 $ $3,772 3 B Asphalt pavement interim cycle 1 sy 2,308 $ $4,14 36 B Asphalt pavement interim cycle 2 sy 2,308 $ $4,70 37 B Asphalt pavement interim cycle 3 sy 2,308 $ $, B Concrete curb & gutter (2%) ft 20 $ $ B Flatwork (2%) sf 81 $ $ B Parking bay marking ea 66 $ $ B Post lights ea 9 $2, $21,600 BRAMBLETON CORNER (B) SITE IMPROVEMENTS - Replacement Costs - Subtotal $73,414 BRAMBLETON CORNER (B) SITE IMPROVEMENTS COMMENTS Replace pavement. This line item includes the asphalt pavement in the parking area adjacent to the swimming pool. The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Concrete components. We have scheduled concrete flatwork (sidewalks) and curb & gutter replacements to be accomplished in conjunction with the "replace pavement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates.

35 Replacement Reserve Inventory - Page B9 General Reserve September 20, GENERAL16 BRAMBLETON CORNER (B) EXTERIOR PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 42 B Shingle roofing sf 8,173 $ $36, B Gutters & downspouts ft 480 $ $3, B Tuckpoint masonry facade (10%) sf 409 $ $,317 4 B Exterior openings ea 1,790 $ $134,20 46 B Exterior fascia, soffit, & trim ls 1 $4, $4,000 BRAMBLETON CORNER (B) EXTERIOR - Replacement Costs - Subtotal $183,466 BRAMBLETON CORNER (B) EXTERIOR COMMENTS Tuckpoint masonry facade. We have included the brick facade, stone facade, and the precast water table in this line item and assumed that 10 percent of the total area will be tuckpointed every 10 years. We have assumed the project will include the replacement of all sealants installed in the facade. Exterior trim. We have assumed that comprehensive exterior painting projects will be conducted every 4 years and this line item is intended to fund the replacement of deteriorated exterior materials in conjunction with that project. The painting project is a maintenance project and is not included in this Inventory. We recommend that replacements be made using one of the synthetic trim products on the market today, thereby eliminating the need for future replacements. Exterior openings. We have assumed a comprehensive replacement project all windows, doors, and louvers.

36 Replacement Reserve Inventory - Page B10 General Reserve September 20, GENERAL16 BRAMBLETON CORNER (B) INTERIOR & EQUIPMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 47 B Interior FF&E general renovation sf 4,00 $ $90, B Interior FF&E minor renovation sf 4,00 $ $13,00 49 B Ground mounted HVAC systems ea $8, $40,000 0 B Water heater ea 1 $9, $9,000 1 B Fire protection & annunciator ea 1 $1, $1,000 2 B Security & monitoring ls 1 $, $,000 BRAMBLETON CORNER (B) INTERIOR & EQUIPMENT - Replacement Costs - Subtotal $172,00 BRAMBLETON CORNER (B) INTERIOR & EQUIPMENT COMMENTS Community Center renovation. We have consolidated the fixtures, furnishings & equipment (excluding those components specifically listed above) in the common areas (excluding the facilities serving the swimming pools) in this line item and assumed that a major (comprehensive) renovation will be conducted every 20 years and minor renovations every years.

37 Replacement Reserve Inventory - Page B11 General Reserve September 20, GENERAL16 STRATFORD (S) SITE IMPROVEMENTS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) S Parking area - replace pavement ls 1 3 EXCLUDED S Asphalt pavement interim cycle 1 ls 1 3 EXCLUDED S Asphalt pavement interim cycle 2 ls 1 3 EXCLUDED S Asphalt pavement interim cycle 3 ls 1 3 EXCLUDED S Concrete flatwork and curb & gutter ls 1 3 EXCLUDED S Parking bay marking ls 1 3 EXCLUDED S Streetlight ls 1 3 EXCLUDED STRATFORD (S) SITE IMPROVEMENTS COMMENTS The components on this page were moved from the General Reserve to Recreation Reserve.

38 Replacement Reserve Inventory - Page B12 General Reserve September 20, GENERAL16 STRATFORD (S) EXTERIOR, INTERIOR & EQUIPMENT EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) S Asphalt shingle roofing ls 1 3 EXCLUDED S Gutters & downspouts ls 1 3 EXCLUDED S Tuckpoint masonry facade (10%) ls 1 3 EXCLUDED S Exterior openings ls 1 3 EXCLUDED S HVAC system ls 1 3 EXCLUDED S Water heater ls 1 3 EXCLUDED STRATFORD (S) EXTERIOR, INTERIOR & EQUIPMENT COMMENTS The components on this page were moved from the General Reserve to Recreation Reserve.

39 Replacement Reserve Inventory - Page B13 General Reserve September 20, GENERAL16 GROUP 1 ASPHALT TRAILS (C, CE & NE SECTORS) PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) C Trail - Commercial Areas sy 1,676 3 EXCLUDED C Trail - Section 6 sy EXCLUDED C Trail - Section 3 sy EXCLUDED C Trail - Section 10 sy EXCLUDED C Trail - Acorn Park sy EXCLUDED C Trail - Legacy Park sy,007 3 EXCLUDED CE Trail - Section 10 sy EXCLUDED CE Trail - Section 2 sy EXCLUDED CE Trail - Section 1 sy EXCLUDED CE Trail - Lantana Park sy 2,63 3 EXCLUDED NE Trail - Section 12 sy EXCLUDED NE Trail - East of Section 12 sy 1,287 3 EXCLUDED 3 G1 Asphalt trails - inspect & evaluate sy 13,634 $0.4 4 none 2 $6,136 4 G1 Asphalt trails - replace 12.% sy 1,704 $ none 2 $46,016 G1 Asphalt trails - restore 87.% sy 11,930 $ none 2 $32,211 6 G1 Bridge - inspect & restore (3) ls 1 $2, $2,880 7 G1 Bridge - replace (3) ea 480 $ none 2 $21,600 GROUP 1 ASPHALT TRAILS (C, CE & NE SECTORS) - Replacement Costs - Subtotal $108,843 GROUP 1 ASPHALT TRAILS (C, CE & NE SECTORS) COMMENTS Group 1 asphalt trails. We have consolidated the 122,710 sf of asphalt trails in C, CE, and NE and assumed that work necessary to insure that the trails achieve their maximum economic life is done every 4 years. The scope of the work is outlined in the Condition Summary Bridges. These bridges are located in Legacy Park and are not the same construction as the other bridges throughout the community. We understand that replacements are to be made with stone similar to other small bridge construction at the community. C = Central Sector = south of Ryan Rd., north of Creighton Rd., east of North Star Blvd., west of Belmont Ridge Rd. CE = Central East Sector = south of Ryan Rd., north of Creighton Rd., east of Belmont Ridge Rd. NE = North East Sector = north of Ryan Rd., east of Belmont Ridge Rd. Masonry Bridges. Located adjacent the water feature north of the Community Center and Legacy Park.

40 Replacement Reserve Inventory - Page B14 General Reserve September 20, GENERAL16 GROUP 2 ASPHALT TRAILS (NC, CW & SW SECTORS) PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) NC Trail - Section 19 sy 09 3 EXCLUDED NC Trail - Condominium sy 1,170 3 EXCLUDED NC Trail - Section 13 sy EXCLUDED CW Trail - West of Town Cntr. Res. sy 2,719 3 EXCLUDED CW Trail - Town Center Residential sy 3,046 3 EXCLUDED CW Trail - Section 29 sy 1,160 3 EXCLUDED SW Trail - Brandt & SS sy 7,080 3 EXCLUDED 8 G2 Asphalt trails - inspect & evaluate sy 16,311 $ $7,340 9 G2 Asphalt trails - replace 12.% sy 2,039 $ $,01 60 G2 Asphalt trails - restore 87.% sy 14,272 $ $38,36 61 G2 Wood bridge - inspect & restore (2) ls 1 $3, $3, G2 Wood bridge - replace (2) sf 480 $ $33, G2 Exercise stations - inspect & restore ea 7 $ $3,00 64 G2 Exercise stations - replace ea 7 $3, $24,00 GROUP 2 ASPHALT TRAILS (NC, CW & SW SECTORS) - Replacement Costs - Subtotal $166,366 GROUP 2 ASPHALT TRAILS (NC, CW & SW SECTORS) COMMENTS Group 2 asphalt trails. We have consolidated the 146,802 sf of asphalt trails in NC, CW, and SW and assumed that work necessary to insure that the trails achieve their maximum economic life is done every 4 years. The scope of the work is outlined in the Condition Summary. Wood bridge. The wood bridge located adjacent to North Star Blvd, near Castle Ridge Square is sagging should be evaluated by a Professional Engineer to determine if the structural members have been properly sized. NC = North Central Sector = north of Ryan Rd., east of North Star Blvd., west of Belmont Ridge Rd. CW = Central West Sector = south of Ryan Rd., north of Creighton Rd., west of North Star Blvd. SW = South West Sector = south of Creighton Rd., west of North Star Blvd.

41 Replacement Reserve Inventory - Page B1 General Reserve September 20, GENERAL16 GROUP 3 ASPHALT TRAILS (SC SECTOR) PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) SC Trail - Brambleton Corner sy 1,629 3 EXCLUDED SC Trail - Trent Grove sy 3,402 3 EXCLUDED SC Trail - Section Belmont Ridge sy 46 3 EXCLUDED SC Trail - Section NorthStar sy EXCLUDED SC Trail - Belmont Trace sy 1,849 3 EXCLUDED SC Trail - Section 33 sy 1,821 3 EXCLUDED SC Trail - Open Space sy 10,842 3 EXCLUDED 6 G3 Asphalt trails - inspect & evaluate sy 20,74 $ $9,33 66 G3 Asphalt trails - replace 12.% sy 2,93 $ $70, G3 Asphalt trails - restore 87.% sy 18,12 $ $49, G3 Covered bridge - inspect & restore (1) ls 1 $2, $2, G3 Covered bridge - replace (1) sf 336 $ $26, G3 Exercise stations - inspect & restore ea 8 $ $4, G3 Exercise stations - replace ea 8 $3, $28,000 GROUP 3 ASPHALT TRAILS (SC SECTOR) - Replacement Costs - Subtotal $189,927 GROUP 3 ASPHALT TRAILS (SC SECTOR) COMMENTS Group 3 asphalt trails. We have consolidated the 186,704 sf of asphalt trails in the South Central (SC) Sector and assumed that work necessary to insure that the trails achieve their maximum economic life is done every 4 years. The scope of the work is outlined in the Condition Summary. SC = South Central Sector = south of Creighton Rd., east of North Star Blvd., west of Belmont Ridge Rd.

42 Replacement Reserve Inventory - Page B16 General Reserve September 20, GENERAL16 GROUP 4 ASPHALT TRAILS (SE SECTOR) PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) SE Trail - Section 22 sy 2,14 3 EXCLUDED SE Trail - Section 27 sy 29 3 EXCLUDED SE Trail - Section 24 sy 1,030 3 EXCLUDED SE Trail - Section 2a sy EXCLUDED SE Trail - Section 2b sy 1,424 3 EXCLUDED SE Trail - Open Space sy 9,621 3 EXCLUDED 72 G4 Asphalt trails - inspect & evaluate sy 1,022 $ $6, G4 Asphalt trails - replace 12.% sy 1,878 $ $0, G4 Asphalt trails - restore 87.% sy 13,144 $ $3,490 7 G4 Wood bridge - inspect & restore (3) ls 1 $, $, G4 Wood bridge - replace (3) sf 740 $ $9,200 GROUP 4 ASPHALT TRAILS (SE SECTOR) - Replacement Costs - Subtotal $18,069 GROUP 4 ASPHALT TRAILS (SE SECTOR) COMMENTS Group 4 asphalt trails. We have consolidated the 13,199 sf of asphalt trails in the South East (SE) Sector and assumed that work necessary to insure that the trails achieve their maximum economic life is done every 4 years. The scope of the work is outlined in the Condition Summary. SE = South East Sector = south of Creighton Rd., east of Belmont Ridge Rd.

43 Replacement Reserve Inventory - Page B17 General Reserve September 20, GENERAL16 PARK AND RIDE (P&R) LOT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 77 P&R Mill & overlay asphalt pavement sy 6,044 $ $93, P&R Asphalt pavement interim cycle 1 sy 6,044 $ $10, P&R Asphalt pavement interim cycle 2 sy 6,044 $ none 2 $11, P&R Asphalt pavement interim cycle 3 sy 6,044 $ $13, P&R Concrete components ls 1 $1, $1, P&R Shelters & signage ls 1 $, $, P&R Pole lights & service ea 9 $4, $37,800 PARK AND RIDE (P&R) LOT - Replacement Costs - Subtotal $173,937 PARK AND RIDE (P&R) LOT COMMENTS We have assumed that the Association will replace the asphalt pavement by the installation of a 2 inch thick overlay. The pavement will need to be milled prior to the installation of the overlay. Milling and the cost of minor repairs ( to 10 percent of the total area) to the base materials and bearing soils beneath the pavement are included in the cost shown above. P&R = Brambleton Park and Ride Lot - Creighton Road.

44 Replacement Reserve Inventory - Page B18 General Reserve September 20, GENERAL16 COURTS PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 84 LP Tennis court, reinforced color coat sf 13,200 $ $33,000 8 LP Tennis court, base sf 13,200 $ $46, LP Tennis court, fence, restore ft 460 $ $12, LP Tennis court backboard, replace ea 1 $, $, LP Tennis court light poles & service ea 9 $2, $22,00 89 LP Tennis court light fixtures ea 12 $3, $38, LP Multipurpose court sf 1,800 $ none 2 $,80 91 LP Basketball court - base asphalt sf 2,100 $ $6,82 92 LP Basketball court - color coat sf 2,100 $ $1,36 93 LP Basketball court - fence, replace ft 184 $ $,12 94 LP Basketball pole & backstop ea 2 $1, $3,000 9 BT Basketball court - base asphalt sf 2,100 $ $6,82 96 BT Basketball court - color coat sf 2,100 $ $1,36 97 BT Basketball pole & backstop ea 2 $1, $3,000 Tennis court nets & posts ls 1 3 EXCLUDED COURTS - Replacement Costs - Subtotal $191,362 COURTS COMMENTS 7/12/11 - "Tennis court backboard, replace" and "Tennis court lights" added to study LP Multipurpose court. We understand that a sand volleyball court may replace the current asphalt court. LP = Legacy Park BT = Belmont Trace

45 Replacement Reserve Inventory - Page B19 General Reserve September 20, GENERAL16 PLAY AREAS (adjacent to swimming pools) PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 98 CC Play Area, slide/hut structure ea 1 $18, $18, CC Play Area, spring toy ea 1 $2, $2, CC Play Area, spin toy ea 1 $2, $2, CC Play Area, swing (2 seat) ea 2 $2, $4, CC Play Area, wood border ft 212 $ $1, CC Play Area, wood fiber surface sf 2,400 $ $1, CC Play Area, aluminum fencing ft 18 $ $9,20 10 Beacon Play Area, multipurpose equip. ea 1 $26, $26, Beacon Play Area, swing (2 seat) ea 1 $2, $2, Beacon Play Area, border ft 180 $ $3, Beacon Play Area, surfacing sf 1,82 $ $913 PLAY AREAS (adjacent to swimming pools) - Replacement Costs - Subtotal $72,211 PLAY AREAS (adjacent to swimming pools) COMMENTS Tot lots and tot lot equipment should be evaluated annually by a playground safety specialist for compliance with the Consumer Product Safety Commission, Handbook for Public Playground Safety. Defects should be corrected immediately to protect the users of the facilities from potential injury and the Association from potential liability for those injuries. Community Center Play Area (formerly identified as the "Lantana tot lot"). Located adjacent to the Community Center swimming pool, this equipment is approaching the end of its economic life and we have assumed that replacement will be made using the very high quality equipment observed throughout the remainder of the community. CC Play Area = Community Center Play Area (formerly identified as "Lantana tot lot". Beacon Play Area = Beacon Crest Play Area formerly identified as "Beacon Crest tot lot". We have identified the Play Areas using the March 2014 "Brambleton Trail & Amenities Map".

46 Replacement Reserve Inventory - Page B20 General Reserve September 20, GENERAL16 PLAY AREAS (older) PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 109 Legacy Play Area, multipurpose equip ls 1 $3, $3, Legacy Play Area, play station (2011) ls 1 $60, $60, Legacy Play Area, crawl through ls 1 $4, $4, Legacy Play Area, zip line ls 1 $6, $6, Legacy Play Area, swing (4 seat) ls 1 $4, $4, Legacy Play Area, swing (2 seat) ls 1 $2, $2, Legacy Play Area, swing (tire) ls 1 $2, $2, Legacy Play Area, swing (2 seat tot) ls 1 $2, $2, Legacy Play Area, spring toy ls 1 $6, $6, Legacy Play Area, climbing toy ls 1 $7, $7, Legacy Play Area, border (composite) ft 827 $ $14, Legacy Play Area, surfacing sf 6,900 $0.0 2 none 2 $3, Woolsey Play Area, multipurpose equip. ls 1 $2, $2, Woolsey Play Area, swing ls 1 $2, $2, Woolsey tot lot, wood border lf 237 $ $2, Woolsey tot lot, wood fiber surface sf 3,400 $0.0 2 none 2 $1,700 Dragon Fly Play Area - all improvements ls 1 3 EXCLUDED PLAY AREAS (older) - Replacement Costs - Subtotal $202,669 PLAY AREAS (older) COMMENTS Tot lots and tot lot equipment should be evaluated annually by a playground safety specialist for compliance with the Consumer Product Safety Commission, Handbook for Public Playground Safety. Defects should be corrected immediately to protect the users of the facilities from potential injury and the Association from potential liability for those injuries. Legacy Play Area = Legacy Park Play Area (formerly identified as "Legacy tot lot". Legacy Play Area. We have assumed a comprehensive replacement project (excluding play station) in Dragon Fly Play Area. We understand this area is scheduled to be abandoned. We have identified the Play Areas using the March 2014 "Brambleton Trail & Amenities Map".

47 Replacement Reserve Inventory - Page B21 General Reserve September 20, GENERAL16 PLAY AREAS (recent - western group) PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 12 Tradewind Play Area, slide & climb ea 1 $18, $18, Tradewind Play Area, border & ramp ft 100 $ $1, Tradewind Play Area, surfacing sf 70 $ $ Brandt Play Area, multipurpose ea 1 $3, $3, Brandt Play Area, swing (4 seat) ea 1 $4, $4, Brandt Play Area, border & ramps ft 210 $ $3, Brandt Play Area, surfacing sf 2,42 $ $1, Trent Play Area, multipurpose ea 1 $29, $29, Trent Play Area, spring toy ea 2 $1, $3, Trent Play Area, swing (4 seat) ea 1 $4, $4, Trent Play Area, border & ramps ft 230 $ $4, Trent Play Area, surfacing sf 2,80 $ $1,42 PLAY AREAS (recent - western group) - Replacement Costs - Subtotal $107,933 PLAY AREAS (recent - western group) COMMENTS Tot lots and tot lot equipment should be evaluated annually by a playground safety specialist for compliance with the Consumer Product Safety Commission, Handbook for Public Playground Safety. Defects should be corrected immediately to protect the users of the facilities from potential injury and the Association from potential liability for those injuries. We have assumed that seven of the Tradewind, Brandt, Trent, eight tot lots that have been ins Tradewind Play Area is located in the Brandt Section, west of Tradewind Drive. Brandt Play Area is located in the Brandt Section, south of Amber Grove Terrace. Trent Play Area = Trent Grove Play Area, adjacent to Grahams Square..

48 Replacement Reserve Inventory - Page B22 General Reserve September 20, GENERAL16 PLAY AREAS (recent - eastern group) PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 137 Morning Play Area, multipurpose ea 1 $24, $24, Morning Play Area, swing (4 seat) ea 1 $4, $4, Morning Play Area, border & ramps ft 188 $ $3, Morning Play Area, surfacing sf 1,940 $ $ Belmont Play Area, multipurpose ea 1 $42, $42, Belmont Play Area, climb structure ea 1 $12, $12, Belmont Play Area, swing (4 seat) ea 1 $4, $4, Belmont Play Area, border & ramps ft 200 $ $3, Belmont Play Area, surfacing sf 1,970 $ $ Callalily Play Area, multipurpose ea 1 $30, $30, Callalily Play Area, climb structure ea 1 $8, $8, Callalily Play Area, swing (4 seat) ea 1 $4, $4, Callalily Play Area, border & ramp ft 210 $ $3, Callalily Play Area, surfacing sf 2,700 $ $1,30 PLAY AREAS (recent - eastern group) - Replacement Costs - Subtotal $144,469 PLAY AREAS (recent - eastern group) COMMENTS Tot lots and tot lot equipment should be evaluated annually by a playground safety specialist for compliance with the Consumer Product Safety Commission, Handbook for Public Playground Safety. Defects should be corrected immediately to protect the users of the facilities from potential injury and the Association from potential liability for those injuries. Eight new Play areas have been installed since the 2012 Replacement Reserve Study. We have assumed that seven of the eight recently installed play areas (Tradewind, Brandt, Trent, Morning, Belmont, Callalily and Overlook Play Areas) will be replaced as a single project in 2033 to achieve economies of scale. Morning Play Area = Morning Walk Play Area, located east of Morning Walk Drive near the pedestrian underpass. Belmont Play Area = Belmont Trace Park Play Area, located in Belmont Trace, northwest of Angela Faye Square. Callalily Play area is located in the open space west of Minerva Drive.

49 Replacement Reserve Inventory - Page B23 General Reserve September 20, GENERAL16 PLAY AREA (with nylon rope components) PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 11 Overlook Play Area, multipurpose equip ea 1 $2, $2, Overlook Play Area, renovation ls 1 $, $, Overlook Play Area, border & ramps ft 12 $ $2,20 14 Overlook Play Area, surfacing sf 1,200 $ $600 1 Section 24 Play Area, multipurpose ea 1 $60, $60, Section 24 Play Area, swing (4 seat) ea 1 $4, $4, Section 24 Play Area, renovation ls 1 $12, $12, Section 24 Play Area, wood border ft 26 $ $3, Section 24 Play Area, surfacing sf 3,7 $ $1,788 PLAY AREA (with nylon rope components) - Replacement Costs - Subtotal $114,70 PLAY AREA (with nylon rope components) COMMENTS Tot lots and tot lot equipment should be evaluated annually by a playground safety specialist for compliance with the Consumer Product Safety Commission, Handbook for Public Playground Safety. Defects should be corrected immediately to protect the users of the facilities from potential injury and the Association from potential liability for those injuries. Eight new Play areas have been installed since the 2012 Replacement Reserve Study. We have assumed that seven of the eight recently installed play areas (Tradewind, Brandt, Trent, Morning, Belmont, Callalily and Overlook Play Areas) will be replaced as a single project in 2033 to achieve economies of scale. Overlook Play Area = Overlook East Play Area, located in Section 12 adjacent to Highcroft Terrace Overlook Play Area, renovation. The nylon ropes have a shorter economic life than the other components. Section 24 Play Area is adjacent to Sailfish Square. Section 24 Play Area, renovation. The nylon ropes have a shorter economic life than the other components. We have identified the Overlook Play Area using the March 2014 "Brambleton Trail & Amenities Map". The Section 24 Play Area is not shown on the March 2014 "Brambleton Trail & Amenities Map".

50 Replacement Reserve Inventory - Page B24 General Reserve September 20, GENERAL16 DECK & GAZEBOS PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 160 Gazebo - replacement ea 3 $20, $60, Gazebo - renovation ea 3 $3, $9, Lantana Pond deck - structure sf 47 $ none 2 $22, Lantana Pond deck - decking sf 47 $ none 2 $11, Lantana Pond deck - railing ft 100 $ none 2 $, Lantana Pond deck - trellis ea 17 $ none 2 $4,37 DECK & GAZEBOS - Replacement Costs - Subtotal $112,7 DECK & GAZEBOS COMMENTS Gazebos. Gazebos have recently been constructed in Trent Grove (2) and Belmont Trace.

51 Replacement Reserve Inventory - Page B2 General Reserve September 20, GENERAL16 FARM PONDS PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 166 Farm pond - inspection ea 1 $8, $8,000 FARM PONDS - Replacement Costs - Subtotal $8,000 FARM PONDS COMMENTS Farm ponds - general information. We identified 3 major farm ponds at the community, Legacy, Lantana, and Olympia. In the future, these facilities may require maintenance, repair, and/or replacements. The scope and frequency of this work should be established based upon periodic inspection of the facilities by a Professional Engineer experienced with this type of facility. We understand that the facilities were recently inspected and have included the line item above for future inspections.

52 Replacement Reserve Inventory - Page B26 General Reserve September 20, GENERAL16 LANDSCAPE & HARDSCAPE - IRRIGATION & WATER FEATURES EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Irrigation systems - renovation (2%) sf 300,000 3 EXCLUDED Irrigation systems - renovation (2%) sf 300,000 3 EXCLUDED Irrigation systems - renovation (2%) sf 300,000 3 EXCLUDED Irrigation systems - renovation (2%) sf 300,000 3 EXCLUDED Irrigation systems - replace (2%) sf 300,000 3 EXCLUDED Irrigation systems - replace (2%) sf 300,000 3 EXCLUDED Irrigation systems - replace (2%) sf 300,000 3 EXCLUDED Irrigation systems - replace (2%) sf 300,000 3 EXCLUDED Water feature - structure sf 26,666 3 EXCLUDED Water feature - major renovation ls 1 3 EXCLUDED Water feature - equipment ls 1 3 EXCLUDED Water feature - pumps ls 1 3 EXCLUDED LANDSCAPE & HARDSCAPE - IRRIGATION & WATER FEATURES COMMENTS The components on this page were moved from the General Reserve to Irrigation, Water Feature, Lighting.

53 Replacement Reserve Inventory - Page B27 General Reserve September 20, GENERAL16 LANDSCAPE & HARDSCAPE - MISCELLANEOUS PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 167 Stone tuckpointing - general (10%) sf 00 $ none 2 $6, Stone tuckpointing Pale Iris Ter SWM sf 90 $ none 2 $1, Metal railings - restore ft 2 $7.00 none 2 $3, Metal railings - replace ft 24 $ $23, Wood fence (Belmont Trace) ft 814 $ $12,210 Landscape/trees/drainage ls 1 3 EXCLUDED Capital landscape ls 1 3 EXCLUDED LANDSCAPE & HARDSCAPE - MISCELLANEOUS - Replacement Costs - Subtotal $46,840 LANDSCAPE & HARDSCAPE - MISCELLANEOUS COMMENTS Tuckpointing. The Association is responsible for an extensive inventory of stone masonry features including retaining walls (Section 19 & north of Willow Bend Dr), stone cheek walls (Section 19, Legacy Park, and Lantana Park), walls near the Community Center and property identification monuments throughout. We have assumed a tuckpoint project every 10 years, to be done in conjunction with tuckpointing of the Community Center facade. The work is needed now. Tuckpointing. We have assumed the 4 large culverts will be inspected in conjunction with the tuckpointing of the Pale Iris cheek walls). We have include the stone facing on the dam in the Section 19 stormwater pond as a separate line item. Ownership & responsibility should be confirmed. Metal railings. Metal railings are located above the stone retaining wall in Section 19. Metal railings. Other railings are located on concrete stairs that are an integral part of the system of sidewalks. Landscape, trees, drainage. This is an annual expense, not appropriately funded from Replacement Reserves. Capital landscape. We will include a cost and frequency identified by the Association, if requested.

54 Replacement Reserve Inventory - Page B28 General Reserve September 20, GENERAL16 STREETLIGHTS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Streetlights - Section 18 ea 18 3 EXCLUDED Streetlights - Section 19 ea 0 3 EXCLUDED Streetlights - Section 21 ea 11 3 EXCLUDED Streetlights - Section 22 ea 20 3 EXCLUDED Streetlights - Section 27 (incomplete) ea 7 3 EXCLUDED Streetlights - Section 24 ea 3 EXCLUDED Streetlights - Section 33 ea 2 3 EXCLUDED Streetlights - Section 33 (future) ea 17 3 EXCLUDED Streetlights - Belmont Trace (TH) ea 20 3 EXCLUDED Streetlights - Belmont Trace (SF) ea 3 3 EXCLUDED Streetlights - Brambleton Corner ea 24 3 EXCLUDED Streetlights - Brambleton Corner (future) ea 2 3 EXCLUDED Streetlights - Brandt ea 24 3 EXCLUDED Streetlights - Town Cntr Residential ea 39 3 EXCLUDED Streetlights - Trent Grove ea 37 3 EXCLUDED STREETLIGHTS COMMENTS The components on this page were moved from the General Reserve to Irrigation, Water Feature, Lighting.

55 Replacement Reserve Inventory - Page B29 General Reserve September 20, GENERAL16 EQUIPMENT PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 172 ATV/UTV x4 Polaris ea 1 $8, none 2 $8, ATV/UTV - 13 JD Gator 4X4 82 ea 1 $1, $1,000 ATV/UTV - 4x4 Polaris ea 1 3 EXCLUDED 174 Bus - 01 International 28-Passenger ea 1 $80, $80, Truck Ford F30 ea 1 $40, $40, Truck Ford Ranger ea 1 $22, $22, Truck F30 Dump ea 1 $, $, Spreader - V-box salt ea 1 $6, $6, Spreader - V-box salt ea 1 $6, $6,000 Tractor - 03 New Holland 4x4 2hp ea 1 3 EXCLUDED 180 Tractor - 1 Kubota 4x4 3hp ea 1 $40, $40, Trailer - 00-gallon water tank ea 1 $, $, Trailer - Covered ea 1 $8, $8, Trailer - Dump ea 1 $8, $8, Trailer - Flat utility ea 1 $2, $2,00 18 Trailer - Radar/Message Board ea 1 $12, $12, Storage Containers - two - 40ft ls 1 $6, $6, Computers - replace 2 each year ea 2 $2, none 2 $,000 EQUIPMENT - Replacement Costs - Subtotal $318,00 EQUIPMENT COMMENTS The above information was provided by the Association Various corrections

56 Replacement Reserve Inventory - Page B30 General Reserve September 20, GENERAL16 SECTION 13 - ASPHALT PAVEMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Verde Gate Ter replace pavement sy 4,37 $ $70, Holly Hock Ter replace pavement sy 2,770 $ $42, Highgate Terr replace pavement sy 3,92 $ $, Ferncrest Ter replace pavement sy 4,07 $ $63, Settlers Trail Ter replace pavement sy 4,886 $ $7, Sovereign Sq replace pavement sy 1,60 $ $24, Grisham Sq replace pavement sy 1,474 $ $22, Cardinal Trace Ter replace pavement sy 1,424 $ $22, Cotesworth Sq replace pavement sy 1,348 $ $20, Winterbourne Sq replace pavement sy 1,649 $ $2, Heart Pine Sq replace pavement sy 1,86 $ $24, Beacon Crest Ter replace pavement sy 2,127 $ $32, Cedar Forest Ter replace pavement sy 1,210 $ $18, Southwoods Ter replace pavement sy 1,14 $ $17, Hawk Marsh replace pavement sy 41 $ $6, Finch Creek replace pavement sy 41 $ $6, Moss Bay Ter replace pavement sy 61 $ $8, Covey Glen Ter replace pavement sy 13 $ $7, Asphalt pavement interim cycle 1 sy 12,46 $ $22, Asphalt pavement interim cycle 2 sy 12,46 $ $24, Asphalt pavement interim cycle 3 sy 12,46 $ $28,046 SECTION 13 - ASPHALT PAVEMENT - Replacement Costs - Subtotal $623,228 SECTION 13 - ASPHALT PAVEMENT COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. These roads were identified as Section 12 in the previous Replacement Reserve Inventory. 13 = Section 13 as shown on the "Brambleton Master Plan" with proposed re-zoning, October 2014 Section 13 is located in Sector NC. NC = North Central Sector = north of Ryan Road and east of North Star Blvd., and west of Belmont Ridge Rd. Section 13 data was added to the Townhouse Replacement Reserve Inventory in 7/12/11. Section 13 data was moved to the General Replacement Reserve Inventory in 8/12/11.

57 Replacement Reserve Inventory - Page B31 General Reserve September 20, GENERAL16 VALUATION EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Property identification signage ls 1 3 EXCLUDED Mailboxes ls 1 3 EXCLUDED Bike racks ls 1 3 EXCLUDED Pavers under benches ls 1 3 EXCLUDED Fire extinguisher cabinet ls 1 3 EXCLUDED Sprinkler head ls 1 3 EXCLUDED Emergency lighting, exit light, etc. ls 1 3 EXCLUDED Interior Signage ls 1 3 EXCLUDED Kitchen Appliances ls 1 3 EXCLUDED VALUATION EXCLUSIONS COMMENTS Valuation Exclusions. For ease of administration of the Replacement Reserves and to reflect accurately how Replacement Reserves are administered, items with a dollar value less than $1, have not been scheduled for funding from Replacement Reserves. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

58 Replacement Reserve Inventory - Page B32 General Reserve September 20, GENERAL16 LONG-LIFE EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Masonry features ls 1 3 EXCLUDED Miscellaneous culverts ls 1 3 EXCLUDED Concrete liners, water features ls 1 3 EXCLUDED Concrete bridge structures, water feat ls 1 3 EXCLUDED Boulders at small retaining walls ls 1 3 EXCLUDED Exterior brick veneer ls 1 3 EXCLUDED Exterior stone veneer ls 1 3 EXCLUDED Exterior slate and rail at verandah ls 1 3 EXCLUDED Building foundation(s) ls 1 3 EXCLUDED Concrete floor slabs (interior) ls 1 3 EXCLUDED Wall, floor, & roof structure ls 1 3 EXCLUDED Fire protection/security systems ls 1 3 EXCLUDED Common element electrical services ls 1 3 EXCLUDED Electrical wiring ls 1 3 EXCLUDED Water piping at common facilities ls 1 3 EXCLUDED Waste piping at common facilities ls 1 3 EXCLUDED Gas services at common facilities ls 1 3 EXCLUDED Interior slate flooring ls 1 3 EXCLUDED LONG-LIFE EXCLUSIONS COMMENTS Long Life Exclusions. Components that when properly maintained, can be assumed to have a life equal to the property as a whole, are normally excluded from the Replacement Reserve Inventory. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. Exterior masonry is generally assumed to have and unlimited economic life. Periodic repointing is required but is considered a minor item. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

59 Replacement Reserve Inventory - Page B33 General Reserve September 20, GENERAL16 ANNUAL EXPENDITURES EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Benches, trash cans & picnic tables ls 1 3 EXCLUDED Dog walk stations ls 1 3 EXCLUDED Miscellaneous signage ls 1 3 EXCLUDED Library boxes ls 1 3 EXCLUDED ANNUAL EXPENDITURES COMMENTS One of the primary purposes of Replacement Reserves is to allow the accumulation of funds for significant replacements over multiple years. The inclusion of groups of components that require annual replacements in the Inventory is contrary to the basic purpose of Replacement Reserves. We recommend these types of replacements be included as line items in the operations budget of the community. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive. Miscellaneous small site improvement. We have consolidated the benches, picnic tables, trash cans dog walk stations, miscellaneous signage, library boxes. etc. into this line item with an estimated cost per year of $10,000. Replacements are needed now. As this is an annual expense, there is no need to reserve for the expenditure and we have assumed that it will be funded from the Operations Budget of the community.

60 Replacement Reserve Inventory - Page B34 General Reserve September 20, GENERAL16 UTILITY EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Primary electric feeds ls 1 3 EXCLUDED Electric transformers ls 1 3 EXCLUDED Cable TV systems and structures ls 1 3 EXCLUDED Telephone cables and structures ls 1 3 EXCLUDED Site lighting (maintained by others) ls 1 3 EXCLUDED Gas mains and meters ls 1 3 EXCLUDED Water mains and meters ls 1 3 EXCLUDED Sanitary sewers ls 1 3 EXCLUDED UTILITY EXCLUSIONS COMMENTS Utility Exclusions. Many improvements owned by utility companies are on property owned by the Association. We have assumed that repair, maintenance, and replacements of these components will be done at the expense of the appropriate utility company. Examples of items excluded from funding Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

61 Replacement Reserve Inventory - Page B3 General Reserve September 20, GENERAL16 MAINTENANCE AND REPAIR EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Minor landscaping and site grading ls 1 3 EXCLUDED Janitorial service ls 1 3 EXCLUDED Repair services ls 1 3 EXCLUDED Capitol improvements ls 1 3 EXCLUDED MAINTENANCE AND REPAIR EXCLUSIONS COMMENTS Maintenance activities, one-time-only repairs, and capitol improvements. These activities are NOT appropriately funded from Replacement Reserves. The inclusion of such component in the Replacement Reserve Inventory could jeopardize the special tax status of ALL Replacement Reserves, exposing the Association to significant tax liabilities. We recommend that the Board of Directors discuss these exclusions and Revenue Ruling with a Certified Public Accountant. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

62 Replacement Reserve Inventory - Page B36 General Reserve September 20, GENERAL16 GOVERNMENT EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Government, roadways & parking ls 1 3 EXCLUDED Government, sidewalks & curbs ls 1 3 EXCLUDED Government, lighting ls 1 3 EXCLUDED Government, stormwater mgmt. ls 1 3 EXCLUDED Government, ponds ls 1 3 EXCLUDED GOVERNMENT EXCLUSIONS COMMENTS Government Exclusions. We have assumed that some of the improvements installed on property owned by the Association will be maintained by the state, county, or local government, or other association or other responsible entity. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

63 Projected Annual Replacements - Page C1 General Reserve September 20, GENERAL16 PROJECTED ANNUAL REPLACEMENTS GENERAL INFORMATION CALENDAR OF ANNUAL REPLACEMENTS. The 208 Projected Replacements in the General Reserve Replacement Reserve Inventory whose replacement is scheduled to be funded from Replacement Reserves are broken down on a year-by-year basis, beginning on Page C2. REPLACEMENT RESERVE ANALYSIS AND INVENTORY POLICIES, PROCEDURES, AND ADMINISTRATION REVISIONS. Revisions will be made to the Replacement Reserve Analysis and Replacement Reserve Inventory in accordance with the written instructions of the Board of Directors. No additional charge is incurred for the first revision, if requested in writing within three months of the date of the Replacement Reserve Study. It is our policy to provide revisions in electronic (Adobe PDF) format only. TAX CODE. The United States Tax Code grants favorable tax status to a common interest development (CID) meeting certain guidelines for their Replacement Reserve. If a CID files their taxes as a 'Corporation' on Form 1120 (IRC Section 277), these guidelines typically require maintenance activities, partial replacements, minor replacements, capital improvements, and one-time only replacements to be excluded from Reserves. A CID cannot co-mingle planning for maintenance activities with capital replacement activities in the Reserves (Revenue Ruling 7-370). Funds for maintenance activities and capital replacements activities must be held in separate accounts. If a CID files taxes as an "Exempt Homeowners Association" using Form 1120H (IRC Section 28), the CID does not have to segregate these activities. However, because the CID may elect to change their method of filing from year to year within the Study Period, we advise using the more restrictive approach. We further recommend that the CID consult with their Accountant and consider creating separate and independent accounts and reserves for large maintenance items, such as painting. CONFLICT OF INTEREST. Neither Miller - Dodson Associates nor the Reserve Analyst has any prior or existing relationship with this Association which would represent a real or perceived conflict of interest. RELIANCE ON DATA PROVIDED BY THE CLIENT. Information provided by an official representative of the Association regarding financial, physical conditions, quality, or historical issues is deemed reliable. INTENT. This Replacement Reserve Study is a reflection of the information provided by the Association and the visual evaluations of the Analyst. It has been prepared for the sole use of the Association and is not for the purpose of performing an audit, quality/forensic analyses, or background checks of historical records. PREVIOUS REPLACEMENTS. Information provided to Miller - Dodson Associates regarding prior replacements is considered to be accurate and reliable. Our visual evaluation is not a project audit or quality inspection. EXPERIENCE WITH FUTURE REPLACEMENTS. The Calendar of Annual Projected Replacements, lists replacements we have projected to occur over the next thirty years, begins on Page C2. Actual experience in replacing the items may differ significantly from the cost estimates and time frames shown because of conditions beyond our control. These differences may be caused by maintenance practices, inflation, variations in pricing and market conditions, future technological developments, regulatory actions, acts of God, and luck. Some items may function normally during our visual evaluation and then fail without notice. REVIEW OF THE REPLACEMENT RESERVE STUDY. For this study to be effective, it should be reviewed by the General Reserve Board of Directors, those responsible for the management of the items included in the Replacement Reserve Inventory, and the accounting professionals employed by the Association.

64 Projected Annual Replacements - Page C2 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 1 TO 3 Item STUDY YEAR $ Item YEAR 2 $ Item YEAR 3 $ 4 CC Asphalt pavement interim $11,206 8 G2 Asphalt trails - inspect & $7,340 7 CC Parking bay marking $1,33 8 CC Cobblestone drive - rese $1,82 9 G2 Asphalt trails - replace 12 $,01 20 CC Exterior fascia, soffit, & t $8, CC Cobblestone walks - rese $ G2 Asphalt trails - restore 87 $38,36 2 CC Interior FF&E minor reno $13, CC Tuckpoint masonry facad $7, G2 Wood bridge - inspect & $3, CC Security & monitoring $, CC Balcony deck - membran $10, G2 Exercise stations - inspec $3,00 3 B Asphalt pavement interim c $4,14 22 CC Balcony railing - renovati $ LP Basketball court - color co $1,36 46 B Exterior fascia, soffit, & trim $4, CC Carpet - replace $10, CC Play Area, slide/hut struc $18,000 6 G3 Asphalt trails - inspect & $9,33 3 G1 Asphalt trails - inspect & $6, CC Play Area, spring toy $2, G3 Asphalt trails - replace 12 $70,014 4 G1 Asphalt trails - replace 12 $46, CC Play Area, spin toy $2,00 67 G3 Asphalt trails - restore 87 $49,010 G1 Asphalt trails - restore 87 $32, CC Play Area, swing (2 seat $4, G3 Covered bridge - inspect $2,688 7 G1 Bridge - replace (3) $21, CC Play Area, wood border $1, G3 Exercise stations - inspec $4, P&R Asphalt pavement inter $11, CC Play Area, wood fiber su $1, LP Tennis court, reinforced c $33, LP Multipurpose court $, Beacon Play Area, surfacing $913 8 LP Tennis court, base $46, Legacy Play Area, surfacing $3, Tradewind Play Area, surfac $ Beacon Play Area, border $3, Woolsey tot lot, wood fiber s $1, Brandt Play Area, surfacing $1, Legacy Play Area, surfacing $3, Lantana Pond deck - structu $22, Trent Play Area, surfacing $1, Woolsey tot lot, wood fiber s $1, Lantana Pond deck - decking $11, Morning Play Area, surfacing $ Gazebo - renovation $9, Lantana Pond deck - railing $, Belmont Play Area, surfacing $ Bus - 01 International 28-Pas $80, Lantana Pond deck - trellis $4,37 10 Callalily Play Area, surfacing $1, Trailer - 00-gallon water tan $, Stone tuckpointing - general $6,20 14 Overlook Play Area, surfacin $ Computers - replace 2 each $, Stone tuckpointing Pale Iris T $1,12 19 Section 24 Play Area, surfac $1, Metal railings - restore $3,67 17 Truck Ford F30 $40, ATV/UTV x4 Polaris $8, Spreader - V-box salt $6, Computers - replace 2 each $, Computers - replace 2 each $, Asphalt pavement interim $24,681 Total Scheduled Replacements $239,176 Total Scheduled Replacements $22,338 Total Scheduled Replacements $37,944

65 Projected Annual Replacements - Page C3 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 4 TO 6 Item YEAR 4 $ Item YEAR $ Item YEAR 6 $ 1 CC Membrane roofing $8,978 1 CC Parking area - replace pa $77,19 8 G2 Asphalt trails - inspect & $7, CC Rooftop mounted HVAC $44,000 CC Concrete curb & gutter (2 $1,80 9 G2 Asphalt trails - replace 12 $,01 30 CC Ground mounted HVAC $24,000 6 CC Flatwork (2%) $40 60 G2 Asphalt trails - restore 87 $38,36 31 CC Water heater, 100 gal, g $9,000 2 B Security & monitoring $, G2 Wood bridge - inspect & $3, B Interior FF&E minor renova $13,00 3 G1 Asphalt trails - inspect & $6, G2 Exercise stations - inspec $3,00 72 G4 Asphalt trails - inspect & $6,760 4 G1 Asphalt trails - replace 12 $46, CC Play Area, wood fiber su $1, G4 Asphalt trails - replace 12 $0,700 G1 Asphalt trails - restore 87 $32, Beacon Play Area, surfacing $ G4 Asphalt trails - restore 87 $3,490 6 G1 Bridge - inspect & restore $2, Tradewind Play Area, surfac $37 7 G4 Wood bridge - inspect & $, P&R Asphalt pavement inter $13, Brandt Play Area, surfacing $1, BT Basketball court - color c $1,36 81 P&R Concrete components $1, Trent Play Area, surfacing $1, CC Play Area, wood fiber su $1, P&R Shelters & signage $, Morning Play Area, surfacing $ Beacon Play Area, surfacing $ Legacy Play Area, surfacing $3,40 14 Belmont Play Area, surfacing $ Legacy Play Area, border (co $14, Woolsey tot lot, wood fiber s $1, Callalily Play Area, surfacing $1, Tradewind Play Area, surfac $ Farm pond - inspection $8, Overlook Play Area, surfacin $ Brandt Play Area, surfacing $1, Spreader - V-box salt $6, Section 24 Play Area, surfac $1, Trent Play Area, surfacing $1, Trailer - Dump $8, Metal railings - restore $3, Morning Play Area, surfacing $ Computers - replace 2 each $, ATV/UTV - 13 JD Gator 4X4 $1, Belmont Play Area, surfacing $ Truck Ford Ranger $22, Callalily Play Area, surfacing $1,30 18 Trailer - Radar/Message Boa $12, Overlook Play Area, surfacin $ Computers - replace 2 each $, Section 24 Play Area, surfac $1, Asphalt pavement interim $28, Storage Containers - two - 4 $6, Computers - replace 2 each $,000 Total Scheduled Replacements $236,41 Total Scheduled Replacements $223,219 Total Scheduled Replacements $204,80

66 Projected Annual Replacements - Page C4 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 7 TO 9 Item YEAR 7 $ Item YEAR 8 $ Item YEAR 9 $ 7 CC Parking bay marking $1,33 2 CC Interior FF&E minor reno $13,800 2 CC Asphalt pavement interim $8,96 8 CC Cobblestone drive - rese $1,82 26 CC Carpet - replace $10,013 CC Concrete curb & gutter (2 $1,80 10 CC Cobblestone walks - rese $ CC Security & monitoring $,000 6 CC Flatwork (2%) $40 20 CC Exterior fascia, soffit, & t $8, G4 Asphalt trails - inspect & $6, B Tuckpoint masonry facade $, B Asphalt pavement interim $4,70 73 G4 Asphalt trails - replace 12 $0, B Interior FF&E minor renova $13,00 38 B Concrete curb & gutter (2% $ G4 Asphalt trails - restore 87 $3,490 3 G1 Asphalt trails - inspect & $6, B Flatwork (2%) $729 7 G4 Wood bridge - inspect & $,920 4 G1 Asphalt trails - replace 12 $46, B Parking bay marking $ LP Tennis court, reinforced c $33,000 G1 Asphalt trails - restore 87 $32, B Exterior fascia, soffit, & trim $4, CC Play Area, wood fiber su $1, P&R Mill & overlay asphalt p $93,689 6 G3 Asphalt trails - inspect & $9, Beacon Play Area, surfacing $ P&R Concrete components $1, G3 Asphalt trails - replace 12 $70, Tradewind Play Area, surfac $37 88 LP Tennis court light poles & $22,00 67 G3 Asphalt trails - restore 87 $49, Brandt Play Area, surfacing $1, LP Tennis court light fixtures $38, G3 Covered bridge - inspect $2, Trent Play Area, surfacing $1,42 96 BT Basketball court - color c $1,36 70 G3 Exercise stations - inspec $4, Morning Play Area, surfacing $ Legacy Play Area, multipurpo $3, LP Basketball court - color co $1,36 14 Belmont Play Area, surfacing $ Legacy Play Area, zip line $6, Legacy Play Area, surfacing $3,40 10 Callalily Play Area, surfacing $1, Legacy Play Area, swing (4 s $4, Woolsey tot lot, wood border $2, Overlook Play Area, renovat $, Legacy Play Area, swing (2 s $2, Woolsey tot lot, wood fiber s $1, Overlook Play Area, surfacin $ Legacy Play Area, swing (tire $2, Bus - 01 International 28-Pas $80, Section 24 Play Area, surfac $1, Legacy Play Area, swing (2 s $2, Spreader - V-box salt $6, Gazebo - renovation $9, Legacy Play Area, spring toy $6, Computers - replace 2 each $, Trailer - Covered $8, Legacy Play Area, climbing t $7, Trailer - Flat utility $2, Legacy Play Area, surfacing $3, Computers - replace 2 each $, Woolsey tot lot, wood fiber s $1, ATV/UTV x4 Polaris $8, Truck F30 Dump $, Computers - replace 2 each $,000 Total Scheduled Replacements $26,961 Total Scheduled Replacements $200,999 Total Scheduled Replacements $410,279

67 Projected Annual Replacements - Page C General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 10 TO 12 Item YEAR 10 $ Item YEAR 11 $ Item YEAR 12 $ 2 B Security & monitoring $,000 7 CC Parking bay marking $1,33 72 G4 Asphalt trails - inspect & $6,760 8 G2 Asphalt trails - inspect & $7, CC Tuckpoint masonry facad $7, G4 Asphalt trails - replace 12 $0,700 9 G2 Asphalt trails - replace 12 $,01 20 CC Exterior fascia, soffit, & t $8, G4 Asphalt trails - restore 87 $3, G2 Asphalt trails - restore 87 $38,36 21 CC Balcony deck - membran $10,800 7 G4 Wood bridge - inspect & $, G2 Wood bridge - inspect & $3, CC Balcony railing - renovati $ LP Basketball court - base a $6,82 63 G2 Exercise stations - inspec $3,00 37 B Asphalt pavement interim $, LP Basketball court - color co $1,36 64 G2 Exercise stations - replac $24,00 38 B Concrete curb & gutter (2% $ LP Basketball court - fence, $,12 82 P&R Shelters & signage $, B Flatwork (2%) $ LP Basketball pole & backsto $3, CC Play Area, wood fiber su $1, B Parking bay marking $ CC Play Area, wood fiber su $1, Beacon Play Area, surfacing $ B Exterior fascia, soffit, & trim $4, Beacon Play Area, surfacing $ Tradewind Play Area, surfac $37 6 G3 Asphalt trails - inspect & $9, Tradewind Play Area, surfac $ Brandt Play Area, surfacing $1, G3 Asphalt trails - replace 12 $70, Brandt Play Area, surfacing $1, Trent Play Area, surfacing $1,42 67 G3 Asphalt trails - restore 87 $49, Trent Play Area, surfacing $1, Morning Play Area, surfacing $ G3 Covered bridge - inspect $2, Morning Play Area, surfacing $ Belmont Play Area, surfacing $98 70 G3 Exercise stations - inspec $4, Belmont Play Area, surfacing $98 10 Callalily Play Area, surfacing $1,30 71 G3 Exercise stations - replac $28, Callalily Play Area, surfacing $1,30 14 Overlook Play Area, surfacin $ LP Tennis court, fence, resto $12, Overlook Play Area, surfacin $ Section 24 Play Area, surfac $1, LP Tennis court backboard, $, Section 24 Play Area, renova $12, Farm pond - inspection $8, Legacy Play Area, surfacing $3,40 18 Section 24 Play Area, wood $3, Spreader - V-box salt $6, Woolsey Play Area, multipur $2, Section 24 Play Area, surfac $1, Tractor - 1 Kubota 4x4 3hp $40, Woolsey Play Area, swing $2, Truck Ford F30 $40, Computers - replace 2 each $, Woolsey tot lot, wood fiber s $1, Spreader - V-box salt $6, Verde Gate Ter replace p $70, Stone tuckpointing - general $6,20 18 Trailer - Radar/Message Boa $12, Holly Hock Ter replace pa $42, Stone tuckpointing Pale Iris T $1, Computers - replace 2 each $, Highgate Terr replace pav $, Metal railings - restore $3, Ferncrest Ter replace pav $63, Bus - 01 International 28-Pas $80, Settlers Trail Ter replace $7, Computers - replace 2 each $, Sovereign Sq replace pav $24, Grisham Sq replace pave $22, Cardinal Trace Ter replac $22, Cotesworth Sq replace pa $20, Winterbourne Sq replace $2, Heart Pine Sq replace pa $24, Beacon Crest Ter replace $32, Cedar Forest Ter replace $18, Southwoods Ter replace $17, Hawk Marsh replace pave $6, Finch Creek replace pave $6, Moss Bay Ter replace pa $8, Covey Glen Ter replace p $7,92 Total Scheduled Replacements $760,648 Total Scheduled Replacements $371,982 Total Scheduled Replacements $204,341

68 Projected Annual Replacements - Page C6 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 13 TO 1 Item YEAR 13 $ Item YEAR 14 $ Item YEAR 1 $ 3 CC Asphalt pavement interim $9, CC Metal light poles (8') $7,200 7 CC Parking bay marking $1,33 CC Concrete curb & gutter (2 $1,80 18 CC Windows $7, CC Wood fence at dumpster $,0 6 CC Flatwork (2%) $40 19 CC Exterior doors $24, CC Exterior fascia, soffit, & t $8,000 8 CC Cobblestone drive - rese $1,82 27 CC Wood flooring - replace $24, CC Carpet - replace $10, CC Cobblestone walks - rese $ CC Ceramic/stone tiles - rep $, B Parking area - replace pav $3, CC Interior FF&E general ren $92, B Interior FF&E minor renova $13,00 38 B Concrete curb & gutter (2% $670 2 CC Interior FF&E minor reno $13, B Ground mounted HVAC sy $40, B Flatwork (2%) $ CC Security & monitoring $,000 0 B Water heater $9, B Parking bay marking $726 3 G1 Asphalt trails - inspect & $6,136 8 G2 Asphalt trails - inspect & $7, B Exterior fascia, soffit, & trim $4,000 4 G1 Asphalt trails - replace 12 $46,016 9 G2 Asphalt trails - replace 12 $,01 2 B Security & monitoring $,000 G1 Asphalt trails - restore 87 $32, G2 Asphalt trails - restore 87 $38,36 6 G3 Asphalt trails - inspect & $9,33 78 P&R Asphalt pavement inter $10, G2 Wood bridge - inspect & $3, G3 Asphalt trails - replace 12 $70, P&R Concrete components $1, G2 Exercise stations - inspec $3,00 67 G3 Asphalt trails - restore 87 $49, LP Tennis court, reinforced c $33, BT Basketball court - color c $1,36 68 G3 Covered bridge - inspect $2, Beacon Play Area, multipurp $26, CC Play Area, wood fiber su $1, G3 Exercise stations - inspec $4, Beacon Play Area, swing (2 $2, Beacon Play Area, surfacing $ P&R Shelters & signage $, Legacy Play Area, surfacing $3, Tradewind Play Area, surfac $ Legacy Play Area, surfacing $3, Woolsey tot lot, wood fiber s $1, Brandt Play Area, surfacing $1, Woolsey tot lot, wood fiber s $1, Gazebo - renovation $9, Trent Play Area, surfacing $1, Farm pond - inspection $8, Trailer - 00-gallon water tan $, Morning Play Area, surfacing $ Bus - 01 International 28-Pas $80, Computers - replace 2 each $, Belmont Play Area, surfacing $ Spreader - V-box salt $6, Callalily Play Area, surfacing $1, Trailer - Dump $8, Overlook Play Area, surfacin $ Computers - replace 2 each $, Section 24 Play Area, surfac $1, ATV/UTV - 13 JD Gator 4X4 $1, Storage Containers - two - 4 $6, Computers - replace 2 each $, Asphalt pavement interim $22,437 Total Scheduled Replacements $306,702 Total Scheduled Replacements $30,266 Total Scheduled Replacements $324,010

69 Projected Annual Replacements - Page C7 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 16 TO 18 Item YEAR 16 $ Item YEAR 17 $ Item YEAR 18 $ 72 G4 Asphalt trails - inspect & $6,760 4 CC Asphalt pavement interim $11,206 2 CC Interior FF&E minor reno $13, G4 Asphalt trails - replace 12 $0,700 CC Concrete curb & gutter (2 $1,80 33 CC Security & monitoring $, G4 Asphalt trails - restore 87 $3,490 6 CC Flatwork (2%) $40 8 G2 Asphalt trails - inspect & $7,340 7 G4 Wood bridge - inspect & $,920 3 G1 Asphalt trails - inspect & $6,136 9 G2 Asphalt trails - replace 12 $, CC Play Area, wood fiber su $1,200 4 G1 Asphalt trails - replace 12 $46, G2 Asphalt trails - restore 87 $38, Beacon Play Area, surfacing $913 G1 Asphalt trails - restore 87 $32, G2 Wood bridge - inspect & $3, Tradewind Play Area, surfac $37 79 P&R Asphalt pavement inter $11, G2 Wood bridge - replace (2 $33, Brandt Play Area, surfacing $1, P&R Concrete components $1, G2 Exercise stations - inspec $3, Trent Play Area, surfacing $1,42 92 LP Basketball court - color co $1,36 84 LP Tennis court, reinforced c $33, Morning Play Area, surfacing $ CC Play Area, slide/hut struc $18, CC Play Area, wood fiber su $1, Belmont Play Area, surfacing $98 99 CC Play Area, spring toy $2, Beacon Play Area, surfacing $ Callalily Play Area, surfacing $1, CC Play Area, spin toy $2,00 12 Tradewind Play Area, slide & $18, Overlook Play Area, surfacin $ CC Play Area, swing (2 seat $4, Tradewind Play Area, border $1, Section 24 Play Area, surfac $1, CC Play Area, wood border $1, Tradewind Play Area, surfac $ Lantana Pond deck - decking $11, Legacy Play Area, play statio $60, Brandt Play Area, multipurpo $3, Lantana Pond deck - railing $, Legacy Play Area, crawl thro $4, Brandt Play Area, swing (4 s $4, Lantana Pond deck - trellis $4, Legacy Play Area, surfacing $3, Brandt Play Area, border & r $3, Metal railings - restore $3, Woolsey tot lot, wood fiber s $1, Brandt Play Area, surfacing $1, Wood fence (Belmont Trace $12, ATV/UTV x4 Polaris $8, Trent Play Area, multipurpos $29, Truck Ford Ranger $22, Spreader - V-box salt $6, Trent Play Area, spring toy $3, Computers - replace 2 each $, Computers - replace 2 each $, Trent Play Area, swing (4 se $4, Trent Play Area, border & ra $4, Trent Play Area, surfacing $1, Morning Play Area, multipurp $24, Morning Play Area, swing (4 $4, Morning Play Area, border & $3, Morning Play Area, surfacing $ Belmont Play Area, multipurp $42, Belmont Play Area, climb str $12, Belmont Play Area, swing (4 $4, Belmont Play Area, border & $3, Belmont Play Area, surfacing $ Callalily Play Area, multipurp $30, Callalily Play Area, climb stru $8, Callalily Play Area, swing (4 $4, Callalily Play Area, border & $3, Callalily Play Area, surfacing $1,30 11 Overlook Play Area, multipur $2, Overlook Play Area, border & $2,20 14 Overlook Play Area, surfacin $ Section 24 Play Area, surfac $1, Gazebo - renovation $9, Trailer - Covered $8, Trailer - Flat utility $2,00 18 Trailer - Radar/Message Boa $12, Computers - replace 2 each $, Asphalt pavement interim $24,681 Total Scheduled Replacements $173,347 Total Scheduled Replacements $229,790 Total Scheduled Replacements $38,999

70 Projected Annual Replacements - Page C8 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 19 TO 21 Item YEAR 19 $ Item YEAR 20 $ Item YEAR 21 $ 7 CC Parking bay marking $1,33 2 B Security & monitoring $,000 1 CC Parking area - replace pa $77,19 8 CC Cobblestone drive - rese $1,82 72 G4 Asphalt trails - inspect & $6,760 CC Concrete curb & gutter (2 $1,80 9 CC Cobblestone drive - repla $63, G4 Asphalt trails - replace 12 $0,700 6 CC Flatwork (2%) $40 10 CC Cobblestone walks - rese $ G4 Asphalt trails - restore 87 $3, CC Gutters & downspouts $3, CC Cobblestone walk - repla $2,440 7 G4 Wood bridge - inspect & $, CC Tuckpoint masonry facad $7,904 1 CC Membrane roofing $8, G4 Wood bridge - replace (3 $9, CC Balcony deck - membran $10, CC Exterior fascia, soffit, & t $8, P&R Shelters & signage $, CC Balcony railing - renovati $ CC Rooftop mounted HVAC $44, CC Play Area, wood fiber su $1,200 3 G1 Asphalt trails - inspect & $6, CC Ground mounted HVAC $24, Beacon Play Area, surfacing $913 4 G1 Asphalt trails - replace 12 $46, CC Water heater, 100 gal, g $9, Tradewind Play Area, surfac $37 G1 Asphalt trails - restore 87 $32, CC Fire protection & annunc $1, Brandt Play Area, surfacing $1, P&R Asphalt pavement inter $13,600 3 B Asphalt pavement interim $4, Trent Play Area, surfacing $1,42 81 P&R Concrete components $1, B Concrete curb & gutter (2% $ Morning Play Area, surfacing $ LP Multipurpose court $,80 39 B Flatwork (2%) $ Belmont Play Area, surfacing $ CC Play Area, aluminum fen $9,20 40 B Parking bay marking $ Callalily Play Area, surfacing $1, Legacy Play Area, surfacing $3,40 44 B Tuckpoint masonry facade $, Overlook Play Area, surfacin $ Woolsey tot lot, wood fiber s $1, B Exterior fascia, soffit, & trim $4,000 1 Section 24 Play Area, multip $60, Stone tuckpointing - general $6,20 47 B Interior FF&E general reno $90, Section 24 Play Area, swing $4, Stone tuckpointing Pale Iris T $1,12 48 B Interior FF&E minor renova $13,00 19 Section 24 Play Area, surfac $1, Metal railings - restore $3,67 6 G3 Asphalt trails - inspect & $9, Farm pond - inspection $8, Metal railings - replace $23,80 66 G3 Asphalt trails - replace 12 $70, Spreader - V-box salt $6, Computers - replace 2 each $, G3 Asphalt trails - restore 87 $49, Tractor - 1 Kubota 4x4 3hp $40, G3 Covered bridge - inspect $2, Computers - replace 2 each $, G3 Exercise stations - inspec $4,000 9 BT Basketball court - base a $6,82 96 BT Basketball court - color c $1,36 97 BT Basketball pole & backst $3, Legacy Play Area, border (co $14, Legacy Play Area, surfacing $3, Woolsey tot lot, wood border $2, Woolsey tot lot, wood fiber s $1, Bus - 01 International 28-Pas $80, Truck F30 Dump $, Computers - replace 2 each $,000 Total Scheduled Replacements $628,7 Total Scheduled Replacements $302,687 Total Scheduled Replacements $260,48

71 Projected Annual Replacements - Page C9 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 22 TO 24 Item YEAR 22 $ Item YEAR 23 $ Item YEAR 24 $ 26 CC Carpet - replace $10,013 7 CC Parking bay marking $1,33 42 B Shingle roofing $36,779 8 G2 Asphalt trails - inspect & $7, CC Exterior fascia, soffit, & t $8, B Gutters & downspouts $3,120 9 G2 Asphalt trails - replace 12 $,01 2 CC Interior FF&E minor reno $13,800 4 B Exterior openings $134,20 60 G2 Asphalt trails - restore 87 $38,36 33 CC Security & monitoring $, B Interior FF&E minor renova $13,00 61 G2 Wood bridge - inspect & $3, B Asphalt pavement interim $4,70 72 G4 Asphalt trails - inspect & $6, G2 Exercise stations - inspec $3,00 38 B Concrete curb & gutter (2% $ G4 Asphalt trails - replace 12 $0, G2 Exercise stations - replac $24,00 39 B Flatwork (2%) $ G4 Asphalt trails - restore 87 $3, LP Basketball court - color co $1,36 40 B Parking bay marking $726 7 G4 Wood bridge - inspect & $, CC Play Area, wood fiber su $1, B Exterior fascia, soffit, & trim $4, BT Basketball court - color c $1, Beacon Play Area, surfacing $913 6 G3 Asphalt trails - inspect & $9, CC Play Area, wood fiber su $1, Tradewind Play Area, surfac $37 66 G3 Asphalt trails - replace 12 $70, Beacon Play Area, surfacing $ Brandt Play Area, surfacing $1, G3 Asphalt trails - restore 87 $49, Tradewind Play Area, surfac $ Trent Play Area, surfacing $1,42 68 G3 Covered bridge - inspect $2, Brandt Play Area, surfacing $1, Morning Play Area, surfacing $ G3 Exercise stations - inspec $4, Trent Play Area, surfacing $1,42 14 Belmont Play Area, surfacing $98 71 G3 Exercise stations - replac $28, Morning Play Area, surfacing $ Callalily Play Area, surfacing $1,30 84 LP Tennis court, reinforced c $33, Belmont Play Area, surfacing $98 14 Overlook Play Area, surfacin $600 8 LP Tennis court, base $46, Callalily Play Area, surfacing $1,30 19 Section 24 Play Area, surfac $1, Beacon Play Area, border $3, Overlook Play Area, surfacin $ ATV/UTV - 13 JD Gator 4X4 $1, Legacy Play Area, surfacing $3,40 17 Section 24 Play Area, renova $12, Truck Ford F30 $40, Woolsey tot lot, wood fiber s $1, Section 24 Play Area, wood $3, Spreader - V-box salt $6, Gazebo - replacement $60, Section 24 Play Area, surfac $1, Computers - replace 2 each $, Gazebo - renovation $9, Trailer - Radar/Message Boa $12, Asphalt pavement interim $28, Bus - 01 International 28-Pas $80, Storage Containers - two - 4 $6, Trailer - 00-gallon water tan $, Computers - replace 2 each $, Computers - replace 2 each $,000 Total Scheduled Replacements $249,008 Total Scheduled Replacements $448,48 Total Scheduled Replacements $337,014

72 Projected Annual Replacements - Page C10 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 2 TO 27 Item YEAR 2 $ Item YEAR 26 $ Item YEAR 27 $ 2 CC Asphalt pavement interim $8,96 8 G2 Asphalt trails - inspect & $7,340 7 CC Parking bay marking $1,33 CC Concrete curb & gutter (2 $1,80 9 G2 Asphalt trails - replace 12 $,01 20 CC Exterior fascia, soffit, & t $8,000 6 CC Flatwork (2%) $40 60 G2 Asphalt trails - restore 87 $38,36 37 B Asphalt pavement interim c $,193 8 CC Cobblestone drive - rese $1,82 61 G2 Wood bridge - inspect & $3, B Concrete curb & gutter (2% $ CC Cobblestone walks - rese $ G2 Exercise stations - inspec $3,00 39 B Flatwork (2%) $729 2 B Security & monitoring $, CC Play Area, wood fiber su $1, B Parking bay marking $726 3 G1 Asphalt trails - inspect & $6, Beacon Play Area, surfacing $ B Exterior fascia, soffit, & trim $4,000 4 G1 Asphalt trails - replace 12 $46, Tradewind Play Area, surfac $37 6 G3 Asphalt trails - inspect & $9,33 G1 Asphalt trails - restore 87 $32, Brandt Play Area, surfacing $1, G3 Asphalt trails - replace 12 $70, P&R Mill & overlay asphalt p $93, Trent Play Area, surfacing $1,42 67 G3 Asphalt trails - restore 87 $49, P&R Concrete components $1, Morning Play Area, surfacing $ G3 Covered bridge - inspect $2, P&R Shelters & signage $, Belmont Play Area, surfacing $98 69 G3 Covered bridge - replace $26, Legacy Play Area, surfacing $3,40 10 Callalily Play Area, surfacing $1,30 70 G3 Exercise stations - inspec $4, Woolsey tot lot, wood fiber s $1, Overlook Play Area, surfacin $ P&R Pole lights & service $37, Farm pond - inspection $8, Section 24 Play Area, surfac $1, LP Basketball court - color co $1, ATV/UTV x4 Polaris $8, Metal railings - restore $3, Legacy Play Area, surfacing $3, Spreader - V-box salt $6, Truck Ford Ranger $22, Woolsey tot lot, wood fiber s $1, Trailer - Dump $8, Computers - replace 2 each $, Bus - 01 International 28-Pas $80, Computers - replace 2 each $, Verde Gate Ter replace p $70, Spreader - V-box salt $6, Holly Hock Ter replace pa $42, Computers - replace 2 each $, Highgate Terr replace pav $, Ferncrest Ter replace pav $63, Settlers Trail Ter replace $7, Sovereign Sq replace pav $24, Grisham Sq replace pave $22, Cardinal Trace Ter replac $22, Cotesworth Sq replace pa $20, Winterbourne Sq replace $2, Heart Pine Sq replace pa $24, Beacon Crest Ter replace $32, Cedar Forest Ter replace $18, Southwoods Ter replace $17, Hawk Marsh replace pave $6, Finch Creek replace pave $6, Moss Bay Ter replace pa $8, Covey Glen Ter replace p $7,92 Total Scheduled Replacements $242,41 Total Scheduled Replacements $697,823 Total Scheduled Replacements $317,913

73 Projected Annual Replacements - Page C11 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 28 TO 30 Item YEAR 28 $ Item YEAR 29 $ Item YEAR 30 $ 2 CC Interior FF&E minor reno $13,800 3 CC Asphalt pavement interim $9,861 2 B Security & monitoring $, CC Security & monitoring $,000 CC Concrete curb & gutter (2 $1,80 8 G2 Asphalt trails - inspect & $7, G4 Asphalt trails - inspect & $6,760 6 CC Flatwork (2%) $40 9 G2 Asphalt trails - replace 12 $,01 73 G4 Asphalt trails - replace 12 $0, CC Carpet - replace $10, G2 Asphalt trails - restore 87 $38,36 74 G4 Asphalt trails - restore 87 $3, B Tuckpoint masonry facade $, G2 Wood bridge - inspect & $3,840 7 G4 Wood bridge - inspect & $, B Interior FF&E minor renova $13,00 63 G2 Exercise stations - inspec $3,00 84 LP Tennis court, reinforced c $33, B Ground mounted HVAC sy $40, P&R Shelters & signage $, CC Play Area, wood fiber su $1,200 0 B Water heater $9, CC Play Area, wood fiber su $1, Beacon Play Area, surfacing $913 1 B Fire protection & annuncia $1, Beacon Play Area, surfacing $ Tradewind Play Area, surfac $37 3 G1 Asphalt trails - inspect & $6, Tradewind Play Area, surfac $ Brandt Play Area, surfacing $1,213 4 G1 Asphalt trails - replace 12 $46, Brandt Play Area, surfacing $1, Trent Play Area, surfacing $1,42 G1 Asphalt trails - restore 87 $32, Trent Play Area, surfacing $1, Morning Play Area, surfacing $ P&R Asphalt pavement inter $10, Morning Play Area, surfacing $ Belmont Play Area, surfacing $98 81 P&R Concrete components $1, Belmont Play Area, surfacing $98 10 Callalily Play Area, surfacing $1,30 88 LP Tennis court light poles & $22,00 10 Callalily Play Area, surfacing $1,30 12 Overlook Play Area, renovat $, LP Tennis court light fixtures $38, Overlook Play Area, surfacin $ Overlook Play Area, surfacin $ BT Basketball court - color c $1,36 19 Section 24 Play Area, surfac $1, Section 24 Play Area, surfac $1, Legacy Play Area, multipurpo $3, Farm pond - inspection $8, Gazebo - renovation $9, Legacy Play Area, zip line $6, ATV/UTV - 13 JD Gator 4X4 $1, Trailer - Covered $8, Legacy Play Area, swing (4 s $4, Spreader - V-box salt $6, Trailer - Flat utility $2, Legacy Play Area, swing (2 s $2, Tractor - 1 Kubota 4x4 3hp $40, Computers - replace 2 each $, Legacy Play Area, swing (tire $2, Trailer - Radar/Message Boa $12, Legacy Play Area, swing (2 s $2, Computers - replace 2 each $, Legacy Play Area, spring toy $6, Asphalt pavement interim $22, Legacy Play Area, climbing t $7, Legacy Play Area, surfacing $3, Woolsey tot lot, wood fiber s $1, Truck F30 Dump $, Computers - replace 2 each $,000 Total Scheduled Replacements $190,987 Total Scheduled Replacements $394,379 Total Scheduled Replacements $237,21

74 Projected Annual Replacements - Page C12 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 31 TO 33 Item YEAR 31 $ Item YEAR 32 $ Item YEAR 33 $ 7 CC Parking bay marking $1,33 72 G4 Asphalt trails - inspect & $6,760 4 CC Asphalt pavement interim $11,206 8 CC Cobblestone drive - rese $1,82 73 G4 Asphalt trails - replace 12 $0,700 CC Concrete curb & gutter (2 $1,80 10 CC Cobblestone walks - rese $ G4 Asphalt trails - restore 87 $3,490 6 CC Flatwork (2%) $40 14 CC Duraslate shingle roofing $29,034 7 G4 Wood bridge - inspect & $, CC Interior FF&E general ren $92, CC Tuckpoint masonry facad $7, LP Basketball court - base a $6,82 2 CC Interior FF&E minor reno $13, CC Exterior fascia, soffit, & t $8, LP Basketball court - color co $1,36 33 CC Security & monitoring $, CC Balcony deck - membran $10, LP Basketball court - fence, $,12 3 G1 Asphalt trails - inspect & $6, CC Balcony railing - renovati $ LP Basketball pole & backsto $3,000 4 G1 Asphalt trails - replace 12 $46, CC Balcony railing - replace $2, CC Play Area, slide/hut struc $18,000 G1 Asphalt trails - restore 87 $32, B Parking area - replace pav $3, CC Play Area, spring toy $2, P&R Asphalt pavement inter $11, B Concrete curb & gutter (2% $ CC Play Area, spin toy $2,00 81 P&R Concrete components $1, B Flatwork (2%) $ CC Play Area, swing (2 seat $4, LP Tennis court, reinforced c $33, B Parking bay marking $ CC Play Area, wood border $1, Beacon Play Area, multipurp $26, B Exterior fascia, soffit, & trim $4, CC Play Area, wood fiber su $1, Beacon Play Area, swing (2 $2,400 6 G3 Asphalt trails - inspect & $9, Beacon Play Area, surfacing $ Legacy Play Area, surfacing $3,40 66 G3 Asphalt trails - replace 12 $70, Tradewind Play Area, surfac $ Woolsey tot lot, wood fiber s $1, G3 Asphalt trails - restore 87 $49, Brandt Play Area, surfacing $1, Gazebo - renovation $9, G3 Covered bridge - inspect $2, Trent Play Area, surfacing $1, ATV/UTV x4 Polaris $8, G3 Exercise stations - inspec $4, Morning Play Area, surfacing $ Trailer - 00-gallon water tan $, LP Tennis court, fence, resto $12, Belmont Play Area, surfacing $ Computers - replace 2 each $, LP Tennis court backboard, $, Callalily Play Area, surfacing $1, Legacy Play Area, surfacing $3,40 14 Overlook Play Area, surfacin $ Woolsey Play Area, multipur $2, Section 24 Play Area, surfac $1, Woolsey Play Area, swing $2, Truck Ford F30 $40, Woolsey tot lot, wood border $2, Spreader - V-box salt $6, Woolsey tot lot, wood fiber s $1, Computers - replace 2 each $, Lantana Pond deck - structu $22, Lantana Pond deck - decking $11, Lantana Pond deck - railing $, Lantana Pond deck - trellis $4, Stone tuckpointing - general $6, Stone tuckpointing Pale Iris T $1, Metal railings - restore $3, Bus - 01 International 28-Pas $80, Computers - replace 2 each $,000 Total Scheduled Replacements $43,721 Total Scheduled Replacements $206,237 Total Scheduled Replacements $314,917

75 Projected Annual Replacements - Page C13 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 34 TO 36 Item YEAR 34 $ Item YEAR 3 $ Item YEAR 36 $ 1 CC Membrane roofing $8,978 7 CC Parking bay marking $1,33 26 CC Carpet - replace $10, CC Rooftop mounted HVAC $44, CC Wood fence at dumpster $,0 72 G4 Asphalt trails - inspect & $6, CC Ground mounted HVAC $24, CC Exterior fascia, soffit, & t $8, G4 Asphalt trails - replace 12 $0, CC Water heater, 100 gal, g $9,000 3 B Asphalt pavement interim $4,14 74 G4 Asphalt trails - restore 87 $3, B Post lights $21, B Concrete curb & gutter (2% $670 7 G4 Wood bridge - inspect & $, B Interior FF&E minor renova $13,00 39 B Flatwork (2%) $ CC Play Area, wood fiber su $1,200 8 G2 Asphalt trails - inspect & $7, B Parking bay marking $ Beacon Play Area, surfacing $913 9 G2 Asphalt trails - replace 12 $,01 46 B Exterior fascia, soffit, & trim $4, Tradewind Play Area, surfac $37 60 G2 Asphalt trails - restore 87 $38,36 2 B Security & monitoring $, Brandt Play Area, surfacing $1, G2 Wood bridge - inspect & $3,840 6 G3 Asphalt trails - inspect & $9, Trent Play Area, surfacing $1,42 63 G2 Exercise stations - inspec $3,00 66 G3 Asphalt trails - replace 12 $70, Morning Play Area, surfacing $ G2 Exercise stations - replac $24,00 67 G3 Asphalt trails - restore 87 $49, Belmont Play Area, surfacing $98 96 BT Basketball court - color c $1,36 68 G3 Covered bridge - inspect $2, Callalily Play Area, surfacing $1, CC Play Area, wood fiber su $1, G3 Exercise stations - inspec $4, Overlook Play Area, surfacin $ Beacon Play Area, surfacing $ G3 Exercise stations - replac $28, Section 24 Play Area, renova $12, Legacy Play Area, border (co $14, P&R Shelters & signage $, Section 24 Play Area, wood $3, Tradewind Play Area, surfac $ Legacy Play Area, surfacing $3,40 19 Section 24 Play Area, surfac $1, Brandt Play Area, surfacing $1, Woolsey tot lot, wood fiber s $1, Metal railings - restore $3, Trent Play Area, surfacing $1, Farm pond - inspection $8, Wood fence (Belmont Trace $12, Morning Play Area, surfacing $ Bus - 01 International 28-Pas $80, Truck Ford Ranger $22, Belmont Play Area, surfacing $ Spreader - V-box salt $6, Trailer - Radar/Message Boa $12, Callalily Play Area, surfacing $1, Trailer - Dump $8, Computers - replace 2 each $, Overlook Play Area, surfacin $ Computers - replace 2 each $, Section 24 Play Area, surfac $1, Storage Containers - two - 4 $6, Computers - replace 2 each $, Asphalt pavement interim $24,681 Total Scheduled Replacements $316,93 Total Scheduled Replacements $310,380 Total Scheduled Replacements $189,897

76 Projected Annual Replacements - Page C14 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 37 TO 39 Item YEAR 37 $ Item YEAR 38 $ Item YEAR 39 $ 1 CC Parking area - replace pa $77,19 2 CC Interior FF&E minor reno $13,800 7 CC Parking bay marking $1,33 CC Concrete curb & gutter (2 $1,80 33 CC Security & monitoring $, CC Metal light poles (8') $7,200 6 CC Flatwork (2%) $40 8 G2 Asphalt trails - inspect & $7, CC Windows $7,600 8 CC Cobblestone drive - rese $1,82 9 G2 Asphalt trails - replace 12 $,01 19 CC Exterior doors $24, CC Cobblestone walks - rese $ G2 Asphalt trails - restore 87 $38,36 20 CC Exterior fascia, soffit, & t $8,000 3 G1 Asphalt trails - inspect & $6, G2 Wood bridge - inspect & $3, CC Wood flooring - replace $24,200 4 G1 Asphalt trails - replace 12 $46, G2 Wood bridge - replace (2 $33, CC Ceramic/stone tiles - rep $,880 G1 Asphalt trails - restore 87 $32, G2 Exercise stations - inspec $3,00 36 B Asphalt pavement interim c $4,70 80 P&R Asphalt pavement inter $13, LP Tennis court, reinforced c $33, B Concrete curb & gutter (2% $ P&R Concrete components $1, CC Play Area, wood fiber su $1, B Flatwork (2%) $ LP Basketball court - color co $1, Beacon Play Area, surfacing $ B Parking bay marking $ Legacy Play Area, play statio $60, Tradewind Play Area, slide & $18, B Tuckpoint masonry facade $, Legacy Play Area, crawl thro $4, Tradewind Play Area, border $1, B Exterior fascia, soffit, & trim $4, Legacy Play Area, surfacing $3, Tradewind Play Area, surfac $37 47 B Interior FF&E general reno $90, Woolsey tot lot, wood fiber s $1, Brandt Play Area, multipurpo $3, B Interior FF&E minor renova $13, Spreader - V-box salt $6, Brandt Play Area, swing (4 s $4,800 6 G3 Asphalt trails - inspect & $9, Computers - replace 2 each $, Brandt Play Area, border & r $3, G3 Asphalt trails - replace 12 $70, Brandt Play Area, surfacing $1, G3 Asphalt trails - restore 87 $49, Trent Play Area, multipurpos $29, G3 Covered bridge - inspect $2, Trent Play Area, spring toy $3, G3 Exercise stations - inspec $4, Trent Play Area, swing (4 se $4,800 9 BT Basketball court - base a $6,82 13 Trent Play Area, border & ra $4, BT Basketball court - color c $1, Trent Play Area, surfacing $1,42 97 BT Basketball pole & backst $3, Morning Play Area, multipurp $24, Legacy Play Area, surfacing $3, Morning Play Area, swing (4 $4, Woolsey tot lot, wood fiber s $1, Morning Play Area, border & $3, Bus - 01 International 28-Pas $80, Morning Play Area, surfacing $ Truck F30 Dump $, Belmont Play Area, multipurp $42, Computers - replace 2 each $, Belmont Play Area, climb str $12, Belmont Play Area, swing (4 $4, Belmont Play Area, border & $3, Belmont Play Area, surfacing $ Callalily Play Area, multipurp $30, Callalily Play Area, climb stru $8, Callalily Play Area, swing (4 $4, Callalily Play Area, border & $3, Callalily Play Area, surfacing $1,30 11 Overlook Play Area, multipur $2, Overlook Play Area, border & $2,20 14 Overlook Play Area, surfacin $ Section 24 Play Area, surfac $1, Gazebo - renovation $9, ATV/UTV - 13 JD Gator 4X4 $1, Trailer - Covered $8, Trailer - Flat utility $2, Computers - replace 2 each $, Asphalt pavement interim $28,046 Total Scheduled Replacements $262,421 Total Scheduled Replacements $4,364 Total Scheduled Replacements $39,132

77 Projected Annual Replacements - Page C1 General Reserve September 20, GENERAL16 PROJECTED REPLACEMENTS - YEARS 40 TO 42 Item 20 - YEAR 40 $ Item 206 (beyond Study Period) $ Item 207 (beyond Study Period) $ 2 B Security & monitoring $,000 2 CC Asphalt pavement interim $8,96 8 G2 Asphalt trails - inspect & $7, G4 Asphalt trails - inspect & $6,760 CC Concrete curb & gutter (2 $1,80 9 G2 Asphalt trails - replace 12 $,01 73 G4 Asphalt trails - replace 12 $0,700 6 CC Flatwork (2%) $40 60 G2 Asphalt trails - restore 87 $38,36 74 G4 Asphalt trails - restore 87 $3, CC Tuckpoint masonry facad $7, G2 Wood bridge - inspect & $3,840 7 G4 Wood bridge - inspect & $, CC Balcony deck - membran $10, G2 Exercise stations - inspec $3,00 76 G4 Wood bridge - replace (3 $9, CC Balcony railing - renovati $ LP Basketball court - color co $1,36 82 P&R Shelters & signage $,000 3 G1 Asphalt trails - inspect & $6, CC Play Area, wood fiber su $1, CC Play Area, wood fiber su $1,200 4 G1 Asphalt trails - replace 12 $46, Beacon Play Area, surfacing $ Beacon Play Area, surfacing $913 G1 Asphalt trails - restore 87 $32, Tradewind Play Area, surfac $ Tradewind Play Area, surfac $37 77 P&R Mill & overlay asphalt p $93, Brandt Play Area, surfacing $1, Brandt Play Area, surfacing $1, P&R Concrete components $1, Trent Play Area, surfacing $1, Trent Play Area, surfacing $1,42 90 LP Multipurpose court $, Morning Play Area, surfacing $ Morning Play Area, surfacing $ Legacy Play Area, surfacing $3,40 14 Belmont Play Area, surfacing $98 14 Belmont Play Area, surfacing $ Woolsey tot lot, wood fiber s $1, Callalily Play Area, surfacing $1,30 10 Callalily Play Area, surfacing $1, Stone tuckpointing - general $6,20 14 Overlook Play Area, surfacin $ Overlook Play Area, surfacin $ Stone tuckpointing Pale Iris T $1,12 19 Section 24 Play Area, surfac $1,788 1 Section 24 Play Area, multip $60, Metal railings - restore $3,67 17 Truck Ford F30 $40, Section 24 Play Area, swing $4, ATV/UTV x4 Polaris $8, Spreader - V-box salt $6, Section 24 Play Area, surfac $1, Computers - replace 2 each $, Trailer - Radar/Message Boa $12, Farm pond - inspection $8, Computers - replace 2 each $, Spreader - V-box salt $6, Verde Gate Ter replace p $70, Tractor - 1 Kubota 4x4 3hp $40, Holly Hock Ter replace pa $42, Computers - replace 2 each $, Highgate Terr replace pav $, Ferncrest Ter replace pav $63, Settlers Trail Ter replace $7, Sovereign Sq replace pav $24, Grisham Sq replace pave $22, Cardinal Trace Ter replac $22, Cotesworth Sq replace pa $20, Winterbourne Sq replace $2, Heart Pine Sq replace pa $24, Beacon Crest Ter replace $32, Cedar Forest Ter replace $18, Southwoods Ter replace $17, Hawk Marsh replace pave $6, Finch Creek replace pave $6, Moss Bay Ter replace pav $8, Covey Glen Ter replace p $7,92 Total Scheduled Replacements $302,687 Total Scheduled Replacements $244,281 Total Scheduled Replacements $731,13

78 Cash Flow Method Accounting Summary - Page CF1 General Reserve September 20, GENERAL16 CASH FLOW METHOD ACCOUNTING SUMMARY This General Reserve - Cash Flow Method Accounting Summary is an attachment to the General Reserve - Replacement Reserve Study dated September 20, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Cash Flow Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. CASH FLOW METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 208 Projected Replacements listed in the General Reserve Replacement Reserve Inventory has been assigned to one of 22 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Cash Flow Method. THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $1,00,000 Beginning Balance (at the start of the Study Year) and the $903,977 of additional Replacement Reserve Funding in 2016 through 2018 (as calculated in the Replacement Reserve Analysis) to each of the 208 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and discussed below. The calculated data includes: m Identification and estimated cost of each Projected Replacement scheduled in years 2016 through m Allocation of the $1,00,000 Beginning Balance to the Projected Replacements by Chronological Allocation. m Allocation of the $903,977 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by Chronological Allocation. CHRONOLOGICAL ALLOCATION. Chronological Allocation assigns Replacement Reserves to Projected Replacements on a "first come, first serve" basis in keeping with the basic philosophy of the Cash Flow Method. The Chronological Allocation methodology is outlined below. m The first step is the allocation of the $1,00,000 Beginning Balance to the Projected Replacements in the Study Year. Remaining unallocated funds are next allocated to the Projected Replacements in subsequent years in chronological order until the total of Projected Replacements in the next year is greater than the unallocated funds. Projected Replacements in this year are partially funded with each replacement receiving percentage funding. The percentage of funding is calculated by dividing the unallocated funds by the total of Projected Replacements in the partially funded year. At General Reserve the Beginning Balance funds all Scheduled Replacements in the Study Year through 2021 and provides partial funding (%) of replacements scheduled in m The next step is the allocation of the $301,326 of 2016 Cash Flow Method Reserve Funding calculated in the Replacement Reserve Analysis. These funds are first allocated to fund the partially funded Projected Replacements and then to subsequent years in chronological order as outlined above. At General Reserve the Beginning Balance and the 2016 Replacement Reserve Funding, funds replacements through 2022 and partial funds (28.6%) replacements in m Allocations of the 2017 and 2018 Reserve Funding are done using the same methodology. m The Three-Year Replacement Funding Report details component by component allocations made by Chronological Allocation.

79 Cash Flow Method Accounting Summary - Page CF2 General Reserve September 20, GENERAL CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 208 Projected Replacements included in the General Reserve Replacement Reserve Inventory has been assigned to one of the 22 categories listed in TABLE CF1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $1,00,000 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $1,801,326 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $239,176. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) SITE IMPROVEM4 to 30 years 0 to 18 years $214,281 $94,184 $3,389 ($13,423) $84,149 COMMUNITY CENTER (CC) EXTERIOR 4 to 40 years 0 to 30 years $12,291 $36,69 $7,92 ($19,184) $24,978 COMMUNITY CENTER (CC) INTERIOR & EQ to 30 years 0 to 18 years $242,893 $10,813 $8,238 ($10,013) $104,038 BRAMBLETON CORNER (B) SITE IMPROVE 4 to 3 years 2 to 33 years $73,414 $4,496 $6,34 $10,849 BRAMBLETON CORNER (B) EXTERIOR 4 to 2 years 2 to 23 years $183,466 $4,204 $3,796 $8,000 BRAMBLETON CORNER (B) INTERIOR & EQ to 30 years 3 to 28 years $172,00 $18,00 $18,00 GROUP 1 ASPHALT TRAILS (C, CE & NE SE 4 to 0 years 0 to 4 years $108,843 $193,206 ($10,963) $87,243 GROUP 2 ASPHALT TRAILS (NC, CW & SW 4 to 20 years 1 to 17 years $166,366 $216,33 $216,33 GROUP 3 ASPHALT TRAILS (SC SECTOR) 4 to 28 years 2 to 26 years $189,927 $141,933 $128,161 $270,094 GROUP 4 ASPHALT TRAILS (SE SECTOR) 4 to 20 years 3 to 19 years $18,069 $98,869 $28,268 $127,137 PARK AND RIDE (P&R) LOT 4 to 3 years 0 to 26 years $173,937 $31,68 ($11,968) $19,600 COURTS to 20 years 0 to 18 years $191,362 $87,80 $10,731 ($,80) $92,730 PLAY AREAS (adjacent to swimming pools) 2 to 30 years 1 to 20 years $72,211 $38,786 $604 $39,389 PLAY AREAS (older) 2 to 20 years 0 to 16 years $202,669 $30,707 $6,912 ($,10) $32,469 PLAY AREAS (recent - western group) 2 to 20 years 1 to 17 years $107,933 $9,038 $861 $9,899 PLAY AREAS (recent - eastern group) 2 to 20 years 1 to 17 years $144,469 $9,91 $94 $10,860 PLAY AREA (with nylon rope components) 2 to 20 years 1 to 19 years $114,70 $7,163 $2,112 $9,27 DECK & GAZEBOS to 30 years 0 to 22 years $112,7 $2,7 $2,73 ($43,7) $11,73 FARM PONDS years 4 years $8,000 $8,000 $8,000 LANDSCAPE & HARDSCAPE - MISCELLANE to 2 years 0 to 20 years $46,840 $14,72 ($11,00) $3,67 EQUIPMENT 1 to 10 years 0 to 9 years $318,00 $242,640 $90,791 ($13,000) $320,432 SECTION 13 - ASPHALT PAVEMENT 16 years 1 to 13 years $623,228 $2,727 $2,727

80 Cash Flow Method Accounting Summary - Page CF3 General Reserve September 20, GENERAL CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 208 Projected Replacements included in the General Reserve Replacement Reserve Inventory has been assigned to one of the 22 categories listed in TABLE CF2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $1,62,10 on January 1, m Total reserve funding (including the Beginning Balance) of $2,102,62 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2017 being accomplished in 2017 at a cost of $22,338. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) SITE IMPROVEM4 to 30 years 1 to 17 years $214,281 $84,149 $4,229 $88,378 COMMUNITY CENTER (CC) EXTERIOR 4 to 40 years 1 to 29 years $12,291 $24,978 $24,978 COMMUNITY CENTER (CC) INTERIOR & EQ to 30 years 1 to 17 years $242,893 $104,038 $20,7 $124,613 BRAMBLETON CORNER (B) SITE IMPROVE 4 to 3 years 1 to 32 years $73,414 $10,849 $10,849 BRAMBLETON CORNER (B) EXTERIOR 4 to 2 years 1 to 22 years $183,466 $8,000 $2,04 $10,04 BRAMBLETON CORNER (B) INTERIOR & EQ to 30 years 2 to 27 years $172,00 $18,00 $,192 $23,692 GROUP 1 ASPHALT TRAILS (C, CE & NE SE 4 to 0 years 3 to 49 years $108,843 $87,243 $32,446 $119,689 GROUP 2 ASPHALT TRAILS (NC, CW & SW 4 to 20 years 0 to 16 years $166,366 $216,33 ($108,266) $108,266 GROUP 3 ASPHALT TRAILS (SC SECTOR) 4 to 28 years 1 to 2 years $189,927 $270,094 $270,094 GROUP 4 ASPHALT TRAILS (SE SECTOR) 4 to 20 years 2 to 18 years $18,069 $127,137 $70,601 $197,739 PARK AND RIDE (P&R) LOT 4 to 3 years 3 to 2 years $173,937 $19,600 $36,418 $6,018 COURTS to 20 years 0 to 19 years $191,362 $92,730 $47,12 ($1,36) $138,877 PLAY AREAS (adjacent to swimming pools) 2 to 30 years 0 to 19 years $72,211 $39,389 $1,09 ($31,321) $9,78 PLAY AREAS (older) 2 to 20 years 1 to 1 years $202,669 $32,469 $27,36 $9,834 PLAY AREAS (recent - western group) 2 to 20 years 0 to 16 years $107,933 $9,899 $2,11 ($3,013) $9,038 PLAY AREAS (recent - eastern group) 2 to 20 years 0 to 16 years $144,469 $10,860 $2,360 ($3,30) $9,91 PLAY AREA (with nylon rope components) 2 to 20 years 0 to 18 years $114,70 $9,27 $,27 ($2,388) $12,163 DECK & GAZEBOS to 30 years 1 to 29 years $112,7 $11,73 $6,427 $18,000 FARM PONDS years 3 years $8,000 $8,000 $8,000 LANDSCAPE & HARDSCAPE - MISCELLANE to 2 years 4 to 19 years $46,840 $3,67 $3,67 EQUIPMENT 1 to 10 years 0 to 8 years $318,00 $320,432 $37,221 ($1,000) $306,63 SECTION 13 - ASPHALT PAVEMENT 16 years 0 to 12 years $623,228 $2,727 ($24,681) $28,046

81 Cash Flow Method Accounting Summary - Page CF4 General Reserve September 20, GENERAL CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 208 Projected Replacements included in the General Reserve Replacement Reserve Inventory has been assigned to one of the 22 categories listed in TABLE CF3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $1,638,138 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $2,403,977 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2018 being accomplished in 2018 at a cost of $37,944. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) SITE IMPROVEM4 to 30 years 0 to 16 years $214,281 $88,378 $6,766 ($1,33) $93,791 COMMUNITY CENTER (CC) EXTERIOR 4 to 40 years 0 to 28 years $12,291 $24,978 ($8,000) $16,978 COMMUNITY CENTER (CC) INTERIOR & EQ to 30 years 0 to 16 years $242,893 $124,613 ($18,800) $10,813 BRAMBLETON CORNER (B) SITE IMPROVE 4 to 3 years 0 to 31 years $73,414 $10,849 ($0) ($4,14) $6,69 BRAMBLETON CORNER (B) EXTERIOR 4 to 2 years 0 to 21 years $183,466 $10,04 $3,272 ($4,000) $9,317 BRAMBLETON CORNER (B) INTERIOR & EQ to 30 years 1 to 26 years $172,00 $23,692 $8,629 $32,321 GROUP 1 ASPHALT TRAILS (C, CE & NE SE 4 to 0 years 2 to 48 years $108,843 $119,689 $1,917 $171,606 GROUP 2 ASPHALT TRAILS (NC, CW & SW 4 to 20 years 3 to 1 years $166,366 $108,266 $8,2 $116,791 GROUP 3 ASPHALT TRAILS (SC SECTOR) 4 to 28 years 0 to 24 years $189,927 $270,094 ($13,047) $13,047 GROUP 4 ASPHALT TRAILS (SE SECTOR) 4 to 20 years 1 to 17 years $18,069 $197,739 $197,739 PARK AND RIDE (P&R) LOT 4 to 3 years 2 to 24 years $173,937 $6,018 $8,92 $114,610 COURTS to 20 years 0 to 18 years $191,362 $138,877 $38,318 ($79,200) $97,99 PLAY AREAS (adjacent to swimming pools) 2 to 30 years 0 to 18 years $72,211 $9,78 $136 ($3,240) $6,473 PLAY AREAS (older) 2 to 20 years 0 to 14 years $202,669 $9,834 $43,78 ($,10) $98,469 PLAY AREAS (recent - western group) 2 to 20 years 1 to 1 years $107,933 $9,038 $193 $9,231 PLAY AREAS (recent - eastern group) 2 to 20 years 1 to 1 years $144,469 $9,91 $212 $10,127 PLAY AREA (with nylon rope components) 2 to 20 years 1 to 17 years $114,70 $12,163 $13 $12,316 DECK & GAZEBOS to 30 years 0 to 28 years $112,7 $18,000 ($9,000) $9,000 FARM PONDS years 2 years $8,000 $8,000 $14 $8,14 LANDSCAPE & HARDSCAPE - MISCELLANE to 2 years 3 to 18 years $46,840 $3,67 $3,67 EQUIPMENT 1 to 10 years 0 to 9 years $318,00 $306,63 $4,122 ($90,000) $261,77 SECTION 13 - ASPHALT PAVEMENT 16 years 3 to 1 years $623,228 $28,046 $3,191 $63,238

82 Cash Flow Method Accounting Summary - Page CF General Reserve September 20, GENERAL16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CF4 below details the allocation of the $1,00,000 Beginning Balance, as reported by the Association and the $903,977 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 208 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $1,00,000 on January 1, m Replacement Reserves on Deposit totaling $1,62,10 on January 1, m Replacement Reserves on Deposit totaling $1,638,138 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $2,403,977 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $822,48. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance COMMUNITY CENTER (CC) SITE I 1 CC Parking area - replace pavement 77,19 77,19 77,19 77,19 77,19 2 CC Asphalt pavement interim cycle 1 8,96 3,448 3,448,17 8,96 3 CC Asphalt pavement interim cycle 2 9,861 4 CC Asphalt pavement interim cycle 3 11,206 11,206 (11,206) CC Concrete curb & gutter (2%) 1,80 1,80 1, , ,161 6 CC Flatwork (2%) CC Parking bay marking 1,33 1,422 1,284 2,706 2,706 (1,33) 1,33 8 CC Cobblestone drive - reset (10%) 1,82 1,662 1,01 (1,82) 1,82 1,82 1,82 9 CC Cobblestone drive - replace pavers 63, CC Cobblestone walks - reset (10%) (636) CC Cobblestone walk - replace pavers 2, CC Metal light poles (8') 7, CC Wood fence at dumpster,0 COMMUNITY CENTER (CC) EXTER 14 CC Duraslate shingle roofing 29,034 1 CC Membrane roofing 8,978 8,978 8,978 8,978 8, CC Gutters & downspouts 3, CC Tuckpoint masonry facade (sf) 7,904 7,904 (7,904) 18 CC Windows 7, CC Exterior doors 24, CC Exterior fascia, soffit, & trim 8,000 8,408 7,92 16,000 16,000 (8,000) 8, CC Balcony deck - membrane & slate 10,800 10,800 (10,800) 22 CC Balcony railing - renovation (480) 23 CC Balcony railing - replace 2,200 COMMUNITY CENTER (CC) INTER 24 CC Interior FF&E general renovation 92,000 2 CC Interior FF&E minor renovation 13,800 13,800 3,946 17,746 9,84 27,600 (13,800) 13, CC Carpet - replace 10,013 10,013 2,863 (10,013) 2,863 7,10 10,013 10, CC Wood flooring - replace 24, CC Ceramic/stone tiles - replace, CC Rooftop mounted HVAC systems 44,000 44,000 44,000 44,000 44, CC Ground mounted HVAC systems 24,000 24,000 24,000 24,000 24, CC Water heater, 100 gal, gas-fired 9,000 9,000 9,000 9,000 9, CC Fire protection & annunciator 1, CC Security & monitoring,000,000 1,430 6,430 3,70 10,000 (,000),000 BRAMBLETON CORNER (B) SITE I 34 B Parking area - replace pavement 3,772 3 B Asphalt pavement interim cycle 1 4,14 4,14 4,14 4,14 (4,14) 36 B Asphalt pavement interim cycle 2 4, ,337 4,70 4,70 4,70

83 Cash Flow Method Accounting Summary - Page CF6 General Reserve September 20, GENERAL16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 37 B Asphalt pavement interim cycle 3, B Concrete curb & gutter (2%) B Flatwork (2%) B Parking bay marking B Post lights 21,600 BRAMBLETON CORNER (B) EXTE 42 B Shingle roofing 36, B Gutters & downspouts 3, B Tuckpoint masonry facade (10%),317 2,04 2,04 3,272,317 4 B Exterior openings 134,20 46 B Exterior fascia, soffit, & trim 4,000 4,204 3,796 8,000 8,000 (4,000) 4,000 BRAMBLETON CORNER (B) INTER 47 B Interior FF&E general renovation 90, B Interior FF&E minor renovation 13,00 13,00 13,00,192 18,692 8,308 27, B Ground mounted HVAC systems 40,000 0 B Water heater 9,000 1 B Fire protection & annunciator 1,000 2 B Security & monitoring,000,000,000, ,321 GROUP 1 ASPHALT TRAILS (C, CE 3 G1 Asphalt trails - inspect & evaluate 6,136 12,271 (6,136) 6,136 2,360 8,49 3,776 12,271 4 G1 Asphalt trails - replace 12.% 46,016 92,033 (46,016) 46,016 17,698 63,714 28,318 92,033 G1 Asphalt trails - restore 87.% 32,211 64,423 (32,211) 32,211 12,389 44,600 19,823 64,423 6 G1 Bridge - inspect & restore (3) 2,880 2,880 2,880 2,880 2,880 7 G1 Bridge - replace (3) 21,600 21,600 (21,600) GROUP 2 ASPHALT TRAILS (NC, C 8 G2 Asphalt trails - inspect & evaluate 7,340 14,680 14,680 (7,340) 7, ,811 9 G2 Asphalt trails - replace 12.%,01 110, ,102 (,01),01 3,3 8,86 60 G2 Asphalt trails - restore 87.% 38,36 77,071 77,071 (38,36) 38,36 2,474 41, G2 Wood bridge - inspect & restore (2) 3,840 7,680 7,680 (3,840) 3, , G2 Wood bridge - replace (2) 33, G2 Exercise stations - inspect & restore 3,00 7,000 7,000 (3,00) 3, ,72 64 G2 Exercise stations - replace 24,00 1,73 1,73 GROUP 3 ASPHALT TRAILS (SC SE 6 G3 Asphalt trails - inspect & evaluate 9,33 9,811 8,89 18,670 18,670 (9,33) 9,33 66 G3 Asphalt trails - replace 12.% 70,014 73,84 66, , ,028 (70,014) 70, G3 Asphalt trails - restore 87.% 49,010 1,09 46,11 98,020 98,020 (49,010) 49, G3 Covered bridge - inspect & restore ( 2,688 2,82 2,1,376,376 (2,688) 2, G3 Covered bridge - replace (1) 26, G3 Exercise stations - inspect & restore 4,000 4,204 3,796 8,000 8,000 (4,000) 4, G3 Exercise stations - replace 28,000 GROUP 4 ASPHALT TRAILS (SE SE 72 G4 Asphalt trails - inspect & evaluate 6,760 6,760 1,933 8,693 4,827 13,20 13,20 73 G4 Asphalt trails - replace 12.% 0,700 0,700 14,496 6,19 36, , , G4 Asphalt trails - restore 87.% 3,490 3,490 10,147 4,637 2,343 70,979 70,979 7 G4 Wood bridge - inspect & restore (3),920,920 1,693 7,613 4,227 11,840 11, G4 Wood bridge - replace (3) 9,200 PARK AND RIDE (P&R) LOT 77 P&R Mill & overlay asphalt pavement 93,689 36,033 36,033 7,66 93, P&R Asphalt pavement interim cycle 1 10, P&R Asphalt pavement interim cycle 2 11,968 11,968 (11,968) 80 P&R Asphalt pavement interim cycle 3 13,600 13,600 13,600 13,600 13, P&R Concrete components 1,000 1,000 1, , , P&R Shelters & signage,000,000,000, , P&R Pole lights & service 37,800 COURTS 84 LP Tennis court, reinforced color coat 33,000 33,000 9,43 42,43 23,6 66,000 (33,000) 33,000 8 LP Tennis court, base 46,200 46,200 46,200 46,200 (46,200) 86 LP Tennis court, fence, restore 12, LP Tennis court backboard, replace, LP Tennis court light poles & service 22,00 8,64 8,64 13,846 22,00

84 Cash Flow Method Accounting Summary - Page CF7 General Reserve September 20, GENERAL16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 89 LP Tennis court light fixtures 38,400 14,769 14,769 23,631 38, LP Multipurpose court,80,80 (,80) 91 LP Basketball court - base asphalt 6,82 92 LP Basketball court - color coat 1,36 1,43 1,29 2,730 (1,36) 1,36 1,36 93 LP Basketball court - fence, replace,12 94 LP Basketball pole & backstop 3,000 9 BT Basketball court - base asphalt 6,82 96 BT Basketball court - color coat 1,36 1,36 1,36 2 1, , BT Basketball pole & backstop 3,000 PLAY AREAS (adjacent to swimming 98 CC Play Area, slide/hut structure 18,000 18,000 18,000 (18,000) 99 CC Play Area, spring toy 2,000 2,000 2,000 (2,000) 100 CC Play Area, spin toy 2,00 2,00 2,00 (2,00) 101 CC Play Area, swing (2 seat) 4,800 4,800 4,800 (4,800) 102 CC Play Area, wood border 1,908 1,908 1,908 (1,908) 103 CC Play Area, wood fiber surface 1,200 3, , (1,200) 3, , CC Play Area, aluminum fencing 9,20 10 Beacon Play Area, multipurpose equip. 26, Beacon Play Area, swing (2 seat) 2, Beacon Play Area, border 3,240 3,240 3,240 3,240 (3,240) 108 Beacon Play Area, surfacing 913 2, , (913) 2, ,796 PLAY AREAS (older) 109 Legacy Play Area, multipurpose equip 3,000 13,461 13,461 21,39 3, Legacy Play Area, play station (2011) 60, Legacy Play Area, crawl through 4, Legacy Play Area, zip line 6,000 2,308 2,308 3,692 6, Legacy Play Area, swing (4 seat) 4,800 1,846 1,846 2,94 4, Legacy Play Area, swing (2 seat) 2, ,477 2, Legacy Play Area, swing (tire) 2, ,477 2, Legacy Play Area, swing (2 seat tot) 2, ,477 2, Legacy Play Area, spring toy 6,000 2,308 2,308 3,692 6, Legacy Play Area, climbing toy 7,000 2,692 2,692 4,308 7, Legacy Play Area, border (composite) 14,886 14,886 14,886 14,886 14, Legacy Play Area, surfacing 3,40 10,26 3,274 (3,40) 10,30 1,327 11,677 2,123 (3,40) 10, Woolsey Play Area, multipurpose equip 2, Woolsey Play Area, swing 2, Woolsey tot lot, wood border 2, ,024 2,133 2,133 2, Woolsey tot lot, wood fiber surface 1,700,187 1,613 (1,700),100 64,74 1,046 (1,700),100 PLAY AREAS (recent - western group 12 Tradewind Play Area, slide & climb 18, Tradewind Play Area, border & ramp 1, Tradewind Play Area, surfacing 37 1, , (37) 1, , Brandt Play Area, multipurpose 3, Brandt Play Area, swing (4 seat) 4, Brandt Play Area, border & ramps 3, Brandt Play Area, surfacing 1,213 3, , (1,213) 3, , Trent Play Area, multipurpose 29, Trent Play Area, spring toy 3, Trent Play Area, swing (4 seat) 4, Trent Play Area, border & ramps 4, Trent Play Area, surfacing 1,42 4, ,682 1,018 (1,42) 4, ,366 PLAY AREAS (recent - eastern group) 137 Morning Play Area, multipurpose 24, Morning Play Area, swing (4 seat) 4, Morning Play Area, border & ramps 3, Morning Play Area, surfacing 970 2, , (970) 2, , Belmont Play Area, multipurpose 42, Belmont Play Area, climb structure 12, Belmont Play Area, swing (4 seat) 4, Belmont Play Area, border & ramps 3, Belmont Play Area, surfacing 98 2, , (98) 2,9 63 3, Callalily Play Area, multipurpose 30, Callalily Play Area, climb structure 8, Callalily Play Area, swing (4 seat) 4, Callalily Play Area, border & ramp 3, Callalily Play Area, surfacing 1,30 4, , (1,30) 4, ,137 PLAY AREA (with nylon rope compon

85 Cash Flow Method Accounting Summary - Page CF8 General Reserve September 20, GENERAL16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 11 Overlook Play Area, multipurpose equi 2, Overlook Play Area, renovation,000 1,430 1,430 3,70,000, Overlook Play Area, border & ramps 2,20 14 Overlook Play Area, surfacing 600 1, , (600) 1, ,839 1 Section 24 Play Area, multipurpose 60, Section 24 Play Area, swing (4 seat) 4, Section 24 Play Area, renovation 12, Section 24 Play Area, wood border 3, Section 24 Play Area, surfacing 1,788,363 11,874 1,276 (1,788),363 11,477 DECK & GAZEBOS 160 Gazebo - replacement 60, Gazebo - renovation 9,000 9,000 2,73 11,73 6,427 18,000 (9,000) 9, Lantana Pond deck - structure 22,800 22,800 (22,800) 163 Lantana Pond deck - decking 11,400 11,400 (11,400) 164 Lantana Pond deck - railing,000,000 (,000) 16 Lantana Pond deck - trellis 4,37 4,37 (4,37) FARM PONDS 166 Farm pond - inspection 8,000 8,000 8,000 8, ,14 LANDSCAPE & HARDSCAPE - MIS 167 Stone tuckpointing - general (10%) 6,20 6,20 (6,20) 168 Stone tuckpointing Pale Iris Ter SWM 1,12 1,12 (1,12) 169 Metal railings - restore 3,67 7,30 (3,67) 3,67 3,67 3, Metal railings - replace 23, Wood fence (Belmont Trace) 12,210 EQUIPMENT 172 ATV/UTV x4 Polaris 8,000 8,000 (8,000) 3,077 3,077 4,923 8, ATV/UTV - 13 JD Gator 4X4 82 1,000 1,000 1,000 1,000 1, Bus - 01 International 28-Passenger 80,000 84,079 7, , ,000 (80,000) 80, Truck Ford F30 40,000 40,000 40,000 (40,000) 176 Truck Ford Ranger 22,000 22,000 22,000 22,000 22, Truck F30 Dump,000 21,13 21,13 33,847, Spreader - V-box salt 6,000 6,306,694 12,000 (6,000) 6,000 6, Spreader - V-box salt 6,000 6,000 6,000 6, , Tractor - 1 Kubota 4x4 3hp 40,000 2,68 2, Trailer - 00-gallon water tank,000,000,000,000 (,000) 182 Trailer - Covered 8,000 2,287 2,287,713 8,000 8, Trailer - Dump 8,000 8,000 8,000 8,000 8, Trailer - Flat utility 2, ,78 2,00 2,00 18 Trailer - Radar/Message Board 12,000 12,000 12,000 12,000 12, Storage Containers - two - 40ft 6,000 6,000 6,000 6,000 6, Computers - replace 2 each year,000 30,2 6,17 (,000) 31,430,493 (,000) 31,923 3,398 (,000) 30,321 SECTION 13 - ASPHALT PAVEMEN Verde Gate Ter replace pavement 70,324 4,16 4, Holly Hock Ter replace pavement 42,93 2,77 2, Highgate Terr replace pavement,676 3,7 3, Ferncrest Ter replace pavement 63,163 4,06 4, Settlers Trail Ter replace pavement 7,733 4,863 4, Sovereign Sq replace pavement 24,180 1,3 1, Grisham Sq replace pavement 22,847 1,467 1, Cardinal Trace Ter replace pavemen 22,072 1,417 1, Cotesworth Sq replace pavement 20,894 1,342 1, Winterbourne Sq replace pavement 2,60 1,641 1, Heart Pine Sq replace pavement 24,83 1,78 1, Beacon Crest Ter replace pavement 32,969 2,117 2, Cedar Forest Ter replace pavement 18,7 1,204 1, Southwoods Ter replace pavement 17,748 1,140 1, Hawk Marsh replace pavement 6, Finch Creek replace pavement 6, Moss Bay Ter replace pavement 8, Covey Glen Ter replace pavement 7, Asphalt pavement interim cycle 1 22, Asphalt pavement interim cycle 2 24,681 24,681 24,681 (24,681) Asphalt pavement interim cycle 3 28,046 28,046 28,046 28,046 28,046

86 Component Method - Page CM1 General Reserve September 20, GENERAL16 COMPONENT METHOD $236,22 COMPONENT METHOD RECOMMENDED ANNUAL FUNDING OF REPLACEMENT RESERVES IN THE STUDY YEAR, General. The Component Method (also referred to as the Full Funded Method) is a very conservative mathematical model developed by HUD in the early 1980s. Each of the 208 Projected Replacements listed in the Replacement Reserve Inventory is treated as a separate account. The Beginning Balance is allocated to each of the individual accounts, as is all subsequent funding of Replacement Reserves. These funds are "locked" in these individual accounts and are not available to fund other Projected Replacements. The calculation of Recommended Annual Funding of Replacement Reserves is a multi-step process outlined in more detail on Page CM2. Component Method - Cumulative Receipts and Expenditures Graph $14,000,000 Component Method - Cumulative Receipts Component Method - Year End Balance Projected Replacements - Cumulative Expenditures $12,000,000 $11,612,781 $10,000,000 $9,922,7 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $1,690,02 $

87 Component Method - Page CM2 General Reserve September 20, GENERAL16 COMPONENT METHOD (cont'd) Current Funding Objective. A Current Funding Objective is calculated for each of the Projected Replacements listed in the Replacement Reserve Inventory. Replacement Cost is divided by the Normal Economic Life to determine the nominal annual contribution. The Remaining Economic Life is then subtracted from the Normal Economic Life to calculate the number of years that the nominal annual contribution should have been made. The two values are then multiplied to determine the Current Funding Objective. This is repeated for each of the 208 Projected Replacements. The total, $1,296,890, is the Current Funding Objective. For an example, consider a very simple Replacement Reserve Inventory with one Projected Replacement, a fence with a $1,000 Replacement Cost, a Normal Economic Life of 10 years, and a Remaining Economic Life of 2 years. A contribution to Replacement Reserves of $100 ($1, years) should have been made in each of the previous 8 years (10 years - 2 years). The result is a Current Funding Objective of $800 (8 years x $100 per year). Funding Percentage. The Funding Percentage is calculated by dividing the Beginning Balance ($1,00,000) by the Current Funding Objective ($1,296,890). At General Reserve the Funding Percentage is 11.7% Allocation of the Beginning Balance. The Beginning Balance is divided among the 208 Projected Replacements in the Replacement Reserve Inventory. The Current Funding Objective for each Projected Replacement is multiplied by the Funding Percentage and these funds are then "locked" into the account of each item. If we relate this calculation back to our fence example, it means that the Association has not accumulated $800 in Reserves (the Funding Objective), but rather at 11.7 percent funded, there is $92 in the account for the fence. Annual Funding. The Recommended Annual Funding of Replacement Reserves is then calculated for each Projected Replacement. The funds allocated to the account of the Projected Replacement are subtracted from the Replacement Cost. The result is then divided by the number of years until replacement, and the result is the annual funding for each of the Projected Replacements. The sum of these is $236,22, the Component Method Recommended Annual Funding of Replacement Reserves in the Study Year (2016). In our fence example, the $92 in the account is subtracted from the $1,000 Total Replacement Cost and divided by the 2 years that remain before replacement, resulting in an annual deposit of $37. Next year, the deposit remains $37, but in the third year, the fence is replaced and the annual funding adjusts to $100. Adjustment to the Component Method for interest and inflation. The calculations in the Replacement Reserve Analysis do not account for interest earned on Replacement Reserves, inflation, or a constant annual increase in Annual Funding of Replacement Reserves. The Component Method is a very conservative method and if the Analysis is updated regularly, adequate funding will be maintained without the need for adjustments. Component Method Data - Years 1 through 30 Year Beginning balance $1,00,000 Recommended annual funding $236,22 $312,87 $323,621 $330,42 $333,78 $33,891 $336,676 $336,982 $337,081 $339,182 Interest on reserves Expenditures $239,176 $22,338 $37,944 $236,41 $223,219 $204,80 $26,961 $200,999 $410,279 $760,648 Year end balance $1,497,049 $1,84,69 $1,0,246 $1,644,2 $1,74,61 $1,88,701 $1,96,417 $2,101,399 $2,028,201 $1,606,73 Cumulative Expenditures $239,176 $464,14 $822,48 $1,08,873 $1,282,092 $1,486,897 $1,743,87 $1,944,87 $2,3,136 $3,11,784 Cumulative Receipts $1,736,22 $2,049,082 $2,372,704 $2,703,128 $3,036,706 $3,372,98 $3,709,274 $4,046,26 $4,383,337 $4,722,19 Year Recommended annual funding $342,46 $342,96 $343,03 $343,89 $344,242 $344,280 $344,304 $344,393 $344,660 $34,01 Interest on reserves Expenditures $371,982 $204,341 $306,702 $30,266 $324,010 $173,347 $229,790 $38,999 $628,7 $302,687 Year end balance $1,77,218 $1,71,833 $1,72,166 $1,74,489 $1,76,721 $1,936,64 $2,01,167 $1,86,62 $1,72,467 $1,614,79 Cumulative Expenditures $3,487,766 $3,692,108 $3,998,810 $4,349,076 $4,673,086 $4,846,433 $,076,223 $,61,221 $6,243,976 $6,46,663 Cumulative Receipts $,064,98 $,407,941 $,70,97 $6,094,64 $6,438,806 $6,783,086 $7,127,390 $7,471,783 $7,816,443 $8,161,48 Year Recommended annual funding $34,01 $34,071 $34,071 $34,103 $34,149 $34,149 $34,149 $34,20 $34,20 $34,207 Interest on reserves Expenditures $260,48 $249,008 $448,48 $337,014 $242,41 $697,823 $317,913 $190,987 $394,379 $237,21 Year end balance $1,699,261 $1,79,324 $1,691,910 $1,700,000 $1,802,734 $1,40,060 $1,477,29 $1,631,13 $1,82,339 $1,690,02 Cumulative Expenditures $6,807,211 $7,06,219 $7,04,704 $7,841,718 $8,084,132 $8,781,96 $9,099,869 $9,290,86 $9,68,23 $9,922,7 Cumulative Receipts $8,06,472 $8,81,43 $9,196,614 $9,41,717 $9,886,866 $10,232,01 $10,77,164 $10,922,369 $11,267,73 $11,612,781

88 Component Method Accounting Summary - Page CM3 General Reserve September 20, GENERAL16 COMPONENT METHOD ACCOUNTING SUMMARY This General Reserve - Component Method Accounting Summary is an attachment to the General Reserve - Replacement Reserve Study dated September 20, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Component Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. COMPONENT METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 208 Projected Replacements listed in the General Reserve Replacement Reserve Inventory has been assigned to one of 22 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Component Method. m THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $1,00,000 Beginning Balance (at the start of the Study Year) and the $872,704 of additional Replacement Reserve funding from 2016 to 2018 (as calculated in the Replacement Reserve Analysis) to each of the 208 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using the Component Method as outlined in the Replacement Reserve Analysis. The calculated data includes: m Identification and estimated cost of each Projected Replacement schedule in years 2016 through m Allocation of the $1,00,000 Beginning Balance to the Projected Replacements by the Component Method. m Allocation of the $872,704 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by the Component Method.

89 Component Method Accounting Summary - Page CM4 General Reserve September 20, GENERAL COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 208 Projected Replacements included in the General Reserve Replacement Reserve Inventory has been assigned to one of the 22 categories listed in TABLE CM1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $1,00,000 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $1,736,22 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $239,176. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE 0 to 18 years COMMUNITY CENTER (CC) SITE IMPROVEM4 to 30 years 0 to 18 years $214,281 $126,863 $6,077 $13,423 $119,16 COMMUNITY CENTER (CC) EXTERIOR 4 to 40 years 0 to 30 years $12,291 $82,91 $2,942 $19,184 $66,673 COMMUNITY CENTER (CC) INTERIOR & EQ to 30 years 0 to 18 years $242,893 $144,01 $10,444 $10,013 $144,932 BRAMBLETON CORNER (B) SITE IMPROVE 4 to 3 years 2 to 33 years $73,414 $12,03 $3,743 $1,797 BRAMBLETON CORNER (B) EXTERIOR 4 to 2 years 2 to 23 years $183,466 $9,829 $8,391 $18,219 BRAMBLETON CORNER (B) INTERIOR & EQ to 30 years 3 to 28 years $172,00 $12,684 $11,78 $24,469 GROUP 1 ASPHALT TRAILS (C, CE & NE SE 4 to 0 years 0 to 4 years $108,843 $12,6 ($16,619) $10,963 $2,974 GROUP 2 ASPHALT TRAILS (NC, CW & SW 4 to 20 years 1 to 17 years $166,366 $71,220 $26,46 $97,676 GROUP 3 ASPHALT TRAILS (SC SECTOR) 4 to 28 years 2 to 26 years $189,927 $42,88 $3,24 $78,112 GROUP 4 ASPHALT TRAILS (SE SECTOR) 4 to 20 years 3 to 19 years $18,069 $27,677 $27,677 PARK AND RIDE (P&R) LOT 4 to 3 years 0 to 26 years $173,937 $84,418 $6,710 $11,968 $79,160 COURTS to 20 years 0 to 18 years $191,362 $124,261 $10,12 $,80 $128,36 PLAY AREAS (adjacent to swimming pools) 2 to 30 years 1 to 20 years $72,211 $47,170 $2,627 $49,797 PLAY AREAS (older) 2 to 20 years 0 to 16 years $202,669 $98,810 $7,900 $,10 $101,60 PLAY AREAS (recent - western group) 2 to 20 years 1 to 17 years $107,933 $12,13 $6,661 $18,796 PLAY AREAS (recent - eastern group) 2 to 20 years 1 to 17 years $144,469 $16,327 $8,88 $24,91 PLAY AREA (with nylon rope components) 2 to 20 years 1 to 19 years $114,70 $6,622 $7,240 $13,861 DECK & GAZEBOS to 30 years 0 to 22 years $112,7 $60,11 ($2,84) $43,7 $13,69 FARM PONDS years 4 years $8,000 $1,600 $1,600 LANDSCAPE & HARDSCAPE - MISCELLANE to 2 years 0 to 20 years $46,840 $19,969 ($229) $11,00 $8,690 EQUIPMENT 1 to 10 years 0 to 9 years $318,00 $11,488 $38,144 $13,000 $140,632 SECTION 13 - ASPHALT PAVEMENT 16 years 1 to 13 years $623,228 $286,208 $33,3 $319,761

90 Component Method Accounting Summary - Page CM General Reserve September 20, GENERAL COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 208 Projected Replacements included in the General Reserve Replacement Reserve Inventory has been assigned to one of the 22 categories listed in TABLE CM2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $1,497,049 on January 1, m Total reserve funding (including the Beginning Balance) of $2,049,082 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2017 being accomplished in 2017 at a cost of $22,338. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) SITE IMPROVEM4 to 30 years 1 to 17 years $214,281 $119,16 $9,249 $128,766 COMMUNITY CENTER (CC) EXTERIOR 4 to 40 years 1 to 29 years $12,291 $66,673 $7,86 $74,38 COMMUNITY CENTER (CC) INTERIOR & EQ to 30 years 1 to 17 years $242,893 $144,932 $13,442 $18,374 BRAMBLETON CORNER (B) SITE IMPROVE 4 to 3 years 1 to 32 years $73,414 $1,797 $3,743 $19,40 BRAMBLETON CORNER (B) EXTERIOR 4 to 2 years 1 to 22 years $183,466 $18,219 $8,391 $26,610 BRAMBLETON CORNER (B) INTERIOR & EQ to 30 years 2 to 27 years $172,00 $24,469 $11,78 $36,23 GROUP 1 ASPHALT TRAILS (C, CE & NE SE 4 to 0 years 3 to 49 years $108,843 $2,974 $21,499 $24,474 GROUP 2 ASPHALT TRAILS (NC, CW & SW 4 to 20 years 0 to 16 years $166,366 $97,676 $26,46 $108,266 $1,866 GROUP 3 ASPHALT TRAILS (SC SECTOR) 4 to 28 years 1 to 2 years $189,927 $78,112 $3,24 $113,366 GROUP 4 ASPHALT TRAILS (SE SECTOR) 4 to 20 years 2 to 18 years $18,069 $27,677 $27,677 $,3 PARK AND RIDE (P&R) LOT 4 to 3 years 3 to 2 years $173,937 $79,160 $9,333 $88,493 COURTS to 20 years 0 to 19 years $191,362 $128,36 $11,334 $1,36 $138,0 PLAY AREAS (adjacent to swimming pools) 2 to 30 years 0 to 19 years $72,211 $49,797 $2,627 $31,321 $21,104 PLAY AREAS (older) 2 to 20 years 1 to 1 years $202,669 $101,60 $11,282 $112,841 PLAY AREAS (recent - western group) 2 to 20 years 0 to 16 years $107,933 $18,796 $6,661 $3,013 $22,44 PLAY AREAS (recent - eastern group) 2 to 20 years 0 to 16 years $144,469 $24,91 $8,88 $3,30 $30,198 PLAY AREA (with nylon rope components) 2 to 20 years 0 to 18 years $114,70 $13,861 $7,240 $2,388 $18,714 DECK & GAZEBOS to 30 years 1 to 29 years $112,7 $13,69 $6,124 $19,819 FARM PONDS years 3 years $8,000 $1,600 $1,600 $3,200 LANDSCAPE & HARDSCAPE - MISCELLANE to 2 years 4 to 19 years $46,840 $8,690 $2,974 $11,664 EQUIPMENT 1 to 10 years 0 to 8 years $318,00 $140,632 $46,180 $1,000 $13,812 SECTION 13 - ASPHALT PAVEMENT 16 years 0 to 12 years $623,228 $319,761 $33,3 $24,681 $328,633

91 Component Method Accounting Summary - Page CM6 General Reserve September 20, GENERAL COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 208 Projected Replacements included in the General Reserve Replacement Reserve Inventory has been assigned to one of the 22 categories listed in TABLE CM3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $1,84,69 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $2,372,704 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2018 being accomplished in 2018 at a cost of $37,944. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) SITE IMPROVEM4 to 30 years 0 to 16 years $214,281 $128,766 $9,249 $1,33 $136,662 COMMUNITY CENTER (CC) EXTERIOR 4 to 40 years 0 to 28 years $12,291 $74,38 $7,86 $8,000 $74,403 COMMUNITY CENTER (CC) INTERIOR & EQ to 30 years 0 to 16 years $242,893 $18,374 $13,442 $18,800 $13,016 BRAMBLETON CORNER (B) SITE IMPROVE 4 to 3 years 0 to 31 years $73,414 $19,40 $3,743 $4,14 $19,129 BRAMBLETON CORNER (B) EXTERIOR 4 to 2 years 0 to 21 years $183,466 $26,610 $8,391 $4,000 $31,001 BRAMBLETON CORNER (B) INTERIOR & EQ to 30 years 1 to 26 years $172,00 $36,23 $11,78 $48,038 GROUP 1 ASPHALT TRAILS (C, CE & NE SE 4 to 0 years 2 to 48 years $108,843 $24,474 $21,499 $4,973 GROUP 2 ASPHALT TRAILS (NC, CW & SW 4 to 20 years 3 to 1 years $166,366 $1,866 $30,69 $46,61 GROUP 3 ASPHALT TRAILS (SC SECTOR) 4 to 28 years 0 to 24 years $189,927 $113,366 $3,24 $13,047 $13,73 GROUP 4 ASPHALT TRAILS (SE SECTOR) 4 to 20 years 1 to 17 years $18,069 $,3 $27,677 $83,032 PARK AND RIDE (P&R) LOT 4 to 3 years 2 to 24 years $173,937 $88,493 $9,333 $97,82 COURTS to 20 years 0 to 18 years $191,362 $138,0 $11,398 $79,200 $70,703 PLAY AREAS (adjacent to swimming pools) 2 to 30 years 0 to 18 years $72,211 $21,104 $4,610 $3,240 $22,473 PLAY AREAS (older) 2 to 20 years 0 to 14 years $202,669 $112,841 $11,282 $,10 $118,973 PLAY AREAS (recent - western group) 2 to 20 years 1 to 1 years $107,933 $22,44 $6,661 $29,106 PLAY AREAS (recent - eastern group) 2 to 20 years 1 to 1 years $144,469 $30,198 $8,88 $38,786 PLAY AREA (with nylon rope components) 2 to 20 years 1 to 17 years $114,70 $18,714 $7,240 $2,94 DECK & GAZEBOS to 30 years 0 to 28 years $112,7 $19,819 $6,124 $9,000 $16,944 FARM PONDS years 2 years $8,000 $3,200 $1,600 $4,800 LANDSCAPE & HARDSCAPE - MISCELLANE to 2 years 3 to 18 years $46,840 $11,664 $2,974 $14,638 EQUIPMENT 1 to 10 years 0 to 9 years $318,00 $13,812 $48,968 $90,000 $94,779 SECTION 13 - ASPHALT PAVEMENT 16 years 3 to 1 years $623,228 $328,633 $3,244 $363,877

92 Component Method Accounting Summary - Page CM7 General Reserve September 20, GENERAL16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CM4 below details the allocation of the $1,00,000 Beginning Balance, as reported by the Association and the $872,704 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 208 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $1,00,000 on January 1, m Replacement Reserves on Deposit totaling $1,497,049 on January 1, m Replacement Reserves on Deposit totaling $1,84,69 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $2,372,704 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $822,48. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance COMMUNITY CENTER (CC) SITE I 1 CC Parking area - replace pavement 77,19 61,383 3,162 64,46 3,162 67,708 3,162 70,870 2 CC Asphalt pavement interim cycle 1 8,96 4,36 492, , ,012 3 CC Asphalt pavement interim cycle 2 9,861 2, , , ,921 4 CC Asphalt pavement interim cycle 3 11,206 12,961 (1,7) (11,206) ,401 CC Concrete curb & gutter (2%) 1, CC Flatwork (2%) CC Parking bay marking 1, , (1,33) 8 CC Cobblestone drive - reset (10%) 1,82 1,829 (248) (1,82) CC Cobblestone drive - replace pavers 63,264 26,830 1,918 28,747 1,918 30,66 1,918 32,82 10 CC Cobblestone walks - reset (10%) (100) (636) CC Cobblestone walk - replace pavers 2,440 10, , , , CC Metal light poles (8') 7,200 3, , , , CC Wood fence at dumpster,0 1, , , ,394 COMMUNITY CENTER (CC) EXTER 14 CC Duraslate shingle roofing 29,034 7, , , ,634 1 CC Membrane roofing 8,978 7, , , , CC Gutters & downspouts 3,296 1, , , ,41 17 CC Tuckpoint masonry facade (sf) 7,904 9,142 (1,238) (7,904) ,81 18 CC Windows 7,600 29,313 2,020 31,334 2,020 33,34 2,020 3,37 19 CC Exterior doors 24,000 12, , , , CC Exterior fascia, soffit, & trim 8,000 2,313 1,896 4,209 1,896 6,104 1,896 (8,000) 21 CC Balcony deck - membrane & slate 10,800 12,491 (1,691) (10,800) 1,080 1,080 1,080 2, CC Balcony railing - renovation 480 (7) (480) CC Balcony railing - replace 2, COMMUNITY CENTER (CC) INTER 24 CC Interior FF&E general renovation 92,000 37,243 4,212 41,4 4,212 4,667 4,212 49,879 2 CC Interior FF&E minor renovation 13,800 6,38 2,472 8,86 2,472 11,328 2,472 (13,800) 26 CC Carpet - replace 10,013 11,81 (1,68) (10,013) 1,430 1,430 1,430 2, CC Wood flooring - replace 24,200 12, , , , CC Ceramic/stone tiles - replace,880 2, , , , CC Rooftop mounted HVAC systems 44,000 37,320 1,670 38,990 1,670 40,660 1,670 42, CC Ground mounted HVAC systems 24,000 20, , , , CC Water heater, 100 gal, gas-fired 9,000 7, , , ,68 32 CC Fire protection & annunciator 1,000 6, , , ,72 33 CC Security & monitoring,000 2, , , (,000) BRAMBLETON CORNER (B) SITE I 34 B Parking area - replace pavement 3,772 2,86 2,212 4,798 2,212 7,011 2,212 9,223 3 B Asphalt pavement interim cycle 1 4,14 3, , , (4,14) 36 B Asphalt pavement interim cycle 2 4,70 2, , , ,67

93 Component Method Accounting Summary - Page CM8 General Reserve September 20, GENERAL16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 37 B Asphalt pavement interim cycle 3,193 1, , , , B Concrete curb & gutter (2%) B Flatwork (2%) B Parking bay marking B Post lights 21, , , ,7 BRAMBLETON CORNER (B) EXTE 42 B Shingle roofing 36,779 1,702 1,462 3,163 1,462 4,62 1,462 6, B Gutters & downspouts 3, B Tuckpoint masonry facade (10%), , , ,182 4 B Exterior openings 134,20 6,211,33 11,46,33 16,881,33 22, B Exterior fascia, soffit, & trim 4,000 1, , , (4,000) BRAMBLETON CORNER (B) INTER 47 B Interior FF&E general renovation 90,000,20 4,463 9,668 4,463 14,131 4,463 18,93 48 B Interior FF&E minor renovation 13,00 3,123 2,94,717 2,94 8,311 2,94 10, B Ground mounted HVAC systems 40,000 3,084 2,637,721 2,637 8,38 2,637 10,99 0 B Water heater 9, , , ,474 1 B Fire protection & annunciator 1, , , ,070 2 B Security & monitoring,000 1,000 1,000 1,000 2,000 1,000 3,000 GROUP 1 ASPHALT TRAILS (C, CE 3 G1 Asphalt trails - inspect & evaluate 6,136 7,096 (961) (6,136) 1,34 1,34 1,34 3,068 4 G1 Asphalt trails - replace 12.% 46,016 3,223 (7,207) (46,016) 11,04 11,04 11,04 23,008 G1 Asphalt trails - restore 87.% 32,211 37,26 (,04) (32,211) 8,03 8,03 8,03 16,106 6 G1 Bridge - inspect & restore (3) 2,880 2,998 (24) 2,974 (24) 2,91 (24) 2,927 7 G1 Bridge - replace (3) 21,600 24,983 (3,383) (21,600) GROUP 2 ASPHALT TRAILS (NC, C 8 G2 Asphalt trails - inspect & evaluate 7,340 4,24 1,48,792 1,48 (7,340) 1,83 1,83 9 G2 Asphalt trails - replace 12.%,01 31,836 11,607 43,443 11,607 (,01) 13,763 13, G2 Asphalt trails - restore 87.% 38,36 22,28 8,12 30,410 8,12 (38,36) 9,634 9, G2 Wood bridge - inspect & restore (2) 3,840 2, , (3,840) G2 Wood bridge - replace (2) 33,600 3,886 1,61,37 1,61 7,188 1,61 8, G2 Exercise stations - inspect & restore 3,00 2, , (3,00) G2 Exercise stations - replace 24,00 4,723 1,978 6,701 1,978 8,678 1,978 10,66 GROUP 3 ASPHALT TRAILS (SC SE 6 G3 Asphalt trails - inspect & evaluate 9,33 2,699 2,212 4,911 2,212 7,123 2,212 (9,33) 66 G3 Asphalt trails - replace 12.% 70,014 20,24 16,90 36,83 16,90 3,424 16,90 (70,014) 67 G3 Asphalt trails - restore 87.% 49,010 14,171 11,613 2,784 11,613 37,397 11,613 (49,010) 68 G3 Covered bridge - inspect & restore ( 2, , , (2,688) 69 G3 Covered bridge - replace (1) 26,880 1, , , , G3 Exercise stations - inspect & restore 4,000 1, , , (4,000) 71 G3 Exercise stations - replace 28,000 2,699 2,300 4,999 2,300 7,299 2,300 9,99 GROUP 4 ASPHALT TRAILS (SE SE 72 G4 Asphalt trails - inspect & evaluate 6,760 1,690 1,690 1,690 3,380 1,690, G4 Asphalt trails - replace 12.% 0,700 12,67 12,67 12,67 2,30 12,67 38,02 74 G4 Asphalt trails - restore 87.% 3,490 8,872 8,872 8,872 17,74 8,872 26,617 7 G4 Wood bridge - inspect & restore (3),920 1,480 1,480 1,480 2,960 1,480 4, G4 Wood bridge - replace (3) 9,200 2,960 2,960 2,960,920 2,960 8,880 PARK AND RIDE (P&R) LOT 77 P&R Mill & overlay asphalt pavement 93,689 47,408,142 2,1,142 7,693,142 62,83 78 P&R Asphalt pavement interim cycle 1 10,880 2,39 6 3,01 6 3, , P&R Asphalt pavement interim cycle 2 11,968 13,842 (1,874) (11,968) , P&R Asphalt pavement interim cycle 3 13,600 10, , , , P&R Concrete components 1, P&R Shelters & signage,000 1,000 1,000 1,000 2,000 1,000 3, P&R Pole lights & service 37,800 9,993 1,030 11,023 1,030 12,03 1,030 13,083 COURTS 84 LP Tennis court, reinforced color coat 33,000 1,267,911 21,178,911 27,089,911 (33,000) 8 LP Tennis court, base 46,200 4, , , (46,200) 86 LP Tennis court, fence, restore 12,880 6, , , , LP Tennis court backboard, replace,000 2, , , ,26 88 LP Tennis court light poles & service 22,00 14, , , ,042

94 Component Method Accounting Summary - Page CM9 General Reserve September 20, GENERAL16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 89 LP Tennis court light fixtures 38,400 24,428 1,2 2,980 1,2 27,33 1,2 29,08 90 LP Multipurpose court,80 6,766 (916) (,80) LP Basketball court - base asphalt 6,82 3, , , , LP Basketball court - color coat 1, , (1,36) LP Basketball court - fence, replace,12 2, , , , LP Basketball pole & backstop 3,000 1, , , ,791 9 BT Basketball court - base asphalt 6, , , BT Basketball court - color coat 1, , BT Basketball pole & backstop 3, PLAY AREAS (adjacent to swimming 98 CC Play Area, slide/hut structure 18,000 18,043 (22) 18,022 (22) (18,000) 1,200 1, CC Play Area, spring toy 2,000 2,00 (2) 2,002 (2) (2,000) CC Play Area, spin toy 2,00 2,06 (3) 2,03 (3) (2,00) CC Play Area, swing (2 seat) 4,800 4,812 (6) 4,806 (6) (4,800) CC Play Area, wood border 1,908 1,913 (2) 1,910 (2) (1,908) CC Play Area, wood fiber surface 1, (1,200) CC Play Area, aluminum fencing 9,20 3, , , , Beacon Play Area, multipurpose equip. 26,000 10,2 1,190 11,716 1,190 12,906 1,190 14, Beacon Play Area, swing (2 seat) 2, , , , Beacon Play Area, border 3,240 3, , , (3,240) 108 Beacon Play Area, surfacing (913) PLAY AREAS (older) 109 Legacy Play Area, multipurpose equip 3,000 22,26 1,41 23,680 1,41 2,09 1,41 26, Legacy Play Area, play station (2011) 60,000 10,410 2,917 13,327 2,917 16,244 2,917 19, Legacy Play Area, crawl through 4, , , Legacy Play Area, zip line 6,000 3, , , ,4 113 Legacy Play Area, swing (4 seat) 4,800 3, , , , Legacy Play Area, swing (2 seat) 2,400 1, , , , Legacy Play Area, swing (tire) 2,400 1, , , , Legacy Play Area, swing (2 seat tot) 2,400 1, , , , Legacy Play Area, spring toy 6,000 3, , , ,4 118 Legacy Play Area, climbing toy 7,000 4, , , , Legacy Play Area, border (composite) 14,886 12, , , , Legacy Play Area, surfacing 3,40 3,990 (40) (3,40) 1,72 1,72 1,72 (3,40) 121 Woolsey Play Area, multipurpose equip 2,000 13,012 1,090 14,102 1,090 1,192 1,090 16, Woolsey Play Area, swing 2,000 13,012 1,090 14,102 1,090 1,192 1,090 16, Woolsey tot lot, wood border 2,133 1, , , , Woolsey tot lot, wood fiber surface 1,700 1,966 (266) (1,700) (1,700) PLAY AREAS (recent - western group 12 Tradewind Play Area, slide & climb 18,000 2, , , , Tradewind Play Area, border & ramp 1, Tradewind Play Area, surfacing (37) Brandt Play Area, multipurpose 3,000 4,048 1,720,768 1,720 7,487 1,720 9, Brandt Play Area, swing (4 seat) 4, , , Brandt Play Area, border & ramps 3, Brandt Play Area, surfacing 1, (1,213) Trent Play Area, multipurpose 29,000 3,34 1,42 4,779 1,42 6,204 1,42 7, Trent Play Area, spring toy 3, Trent Play Area, swing (4 seat) 4, , , Trent Play Area, border & ramps 4, , Trent Play Area, surfacing 1, (1,42) PLAY AREAS (recent - eastern group) 137 Morning Play Area, multipurpose 24,000 2,776 1,179 3,9 1,179,134 1,179 6, Morning Play Area, swing (4 seat) 4, , , Morning Play Area, border & ramps 3, Morning Play Area, surfacing (970) Belmont Play Area, multipurpose 42,000 4,88 2,063 6,921 2,063 8,98 2,063 11, Belmont Play Area, climb structure 12,000 1, , , , Belmont Play Area, swing (4 seat) 4, , , Belmont Play Area, border & ramps 3, Belmont Play Area, surfacing (98) Callalily Play Area, multipurpose 30,000 3,470 1,474 4,944 1,474 6,418 1,474 7, Callalily Play Area, climb structure 8, , , , Callalily Play Area, swing (4 seat) 4, , , Callalily Play Area, border & ramp 3, Callalily Play Area, surfacing 1, (1,30) PLAY AREA (with nylon rope compon

95 Component Method Accounting Summary - Page CM10 General Reserve September 20, GENERAL16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 11 Overlook Play Area, multipurpose equi 2,000 2,892 1,228 4,120 1,228,348 1,228 6,76 12 Overlook Play Area, renovation,000 3, , , , Overlook Play Area, border & ramps 2, Overlook Play Area, surfacing (600) Section 24 Play Area, multipurpose 60,000 3,000 3,000 3,000 6,000 3,000 9, Section 24 Play Area, swing (4 seat) 4, Section 24 Play Area, renovation 12,000 1,000 1,000 1,000 2,000 1,000 3, Section 24 Play Area, wood border 3, Section 24 Play Area, surfacing 1, (1,788) DECK & GAZEBOS 160 Gazebo - replacement 60,000,2 2,367 7,919 2,367 10,286 2,367 12, Gazebo - renovation 9,000 4,164 1,612,776 1,612 7,388 1,612 (9,000) 162 Lantana Pond deck - structure 22,800 26,371 (3,71) (22,800) , Lantana Pond deck - decking 11,400 13,18 (1,78) (11,400) , Lantana Pond deck - railing,000,783 (783) (,000) Lantana Pond deck - trellis 4,37,060 (68) (4,37) FARM PONDS 166 Farm pond - inspection 8,000 1,600 1,600 1,600 3,200 1,600 4,800 LANDSCAPE & HARDSCAPE - MIS 167 Stone tuckpointing - general (10%) 6,20 7,229 (979) (6,20) , Stone tuckpointing Pale Iris Ter SWM 1,12 1,301 (176) (1,12) Metal railings - restore 3,67 4,21 (76) (3,67) , Metal railings - replace 23,80 4,364 91, , , Wood fence (Belmont Trace) 12,210 2, , , ,84 EQUIPMENT 172 ATV/UTV x4 Polaris 8,000 9,23 (1,23) (8,000) 1,000 1,000 1,000 2, ATV/UTV - 13 JD Gator 4X4 82 1,000 4,337 1,777 6,114 1,777 7,892 1,777 9, Bus - 01 International 28-Passenger 80,000 23,132 18,96 42,088 18,96 61,044 18,96 (80,000) 17 Truck Ford F30 40,000 37,012 1,494 38,06 1,494 (40,000) 4,000 4, Truck Ford Ranger 22,000 10,178 1,970 12,148 1,970 14,119 1,970 16, Truck F30 Dump,000 6,361,404 11,766,404 17,170,404 22, Spreader - V-box salt 6,000 4, , (6,000) 1,200 1, Spreader - V-box salt 6,000 1,200 1,200 1,200 2,400 1,200 3, Tractor - 1 Kubota 4x4 3hp 40,000 4,000 4,000 4,000 8,000 4,000 12, Trailer - 00-gallon water tank,000 4, , , (,000) 182 Trailer - Covered 8,000 1, , , , Trailer - Dump 8,000 4,626 67,301 67, , Trailer - Flat utility 2, , , Trailer - Radar/Message Board 12,000 2,000 2,000 2,000 4,000 2,000 6, Storage Containers - two - 40ft 6,000 4, ,623 49,082 49, Computers - replace 2 each year,000,783 (783) (,000),000 (,000),000 (,000) SECTION 13 - ASPHALT PAVEMEN Verde Gate Ter replace pavement 70,324 30,01 3,982 34,484 3,982 38,466 3,982 42, Holly Hock Ter replace pavement 42,93 18,622 2,431 21,03 2,431 23,48 2,431 2, Highgate Terr replace pavement,676 24,148 3,13 27,301 3,13 30,44 3,13 33, Ferncrest Ter replace pavement 63,163 27,39 3,77 30,972 3,77 34,49 3,77 38, Settlers Trail Ter replace pavement 7,733 32,848 4,289 37,136 4,289 41,42 4,289 4, Sovereign Sq replace pavement 24,180 10,488 1,369 11,87 1,369 13,226 1,369 14, Grisham Sq replace pavement 22,847 9,909 1,294 11,203 1,294 12,497 1,294 13, Cardinal Trace Ter replace pavemen 22,072 9,73 1,20 10,823 1,20 12,073 1,20 13, Cotesworth Sq replace pavement 20,894 9,062 1,183 10,246 1,183 11,429 1,183 12, Winterbourne Sq replace pavement 2,60 11,086 1,447 12,33 1,447 13,981 1,447 1, Heart Pine Sq replace pavement 24,83 10,662 1,392 12,04 1,392 13,447 1,392 14, Beacon Crest Ter replace pavement 32,969 14,299 1,867 16,166 1,867 18,033 1,867 19, Cedar Forest Ter replace pavement 18,7 8,13 1,062 9,197 1,062 10,29 1,062 11, Southwoods Ter replace pavement 17,748 7,698 1,00 8,703 1,00 9,708 1,00 10, Hawk Marsh replace pavement 6,991 3, , , , Finch Creek replace pavement 6,991 3, , , , Moss Bay Ter replace pavement 8,696 3, , ,76 492, Covey Glen Ter replace pavement 7,92 3, , , , Asphalt pavement interim cycle 1 22,437 3,244 1,371 4,61 1,371,986 1,371 7, Asphalt pavement interim cycle 2 24,681 24,978 (149) 24,829 (149) (24,681) 1,43 1, Asphalt pavement interim cycle 3 28,046 20,274 1,29 21,70 1,29 22,86 1,29 24,160

96 Replacement Reserve Analysis - Page A1 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 EXECUTIVE SUMMARY The Irrigation, Water Feature, & Lighting Replacement Reserve Analysis uses the Cash Flow Method (CFM) to calculate Replacement Reserve funding for the periodic replacement of the 24 Projected Replacements identified in the Replacement Reserve Inventory. $331,764 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR THE STUDY YEAR, 2016 We recommend the Association adopt a Replacement Reserve Funding Plan based on the annual funding recommendation above. Inflation adjusted funding for subsequent years is shown on Page A. Irrigation, Water Feature, & Lighting reports a that the Association is currently not funding Replacement Reserves. This Study contains the information necessary for the Association to develop a Funding Plan to address the $,484,000 of Projected Replacements identified in the Replacement Reserve Inventory over the 40-year Study Period. #1 - Cumulative Replacement Reserve Funding and Expenditures Graph $7,000,000 Cash Flow Method - Cumulative Receipts Projected Replacements - Cumulative This Reserve contains major items not included in the previous Replacement Reserve Study. No funds have been Current Funding - Cumulative Receipts Expenditures $6,000,000,797,764 $,000,000 $,484,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $ The Current Funding Objective as calculated by the Component Method (Fully Funded) is $1,177,01 making the reserve account 0.0% funded. See the Appendix for more information on this method. This Reserve contains major items not included in the previous Replacement Reserve Study. No funds have been specifically attributed to the components in this Reserve.

97 Replacement Reserve Analysis - Page A2 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 REPLACEMENT RESERVE ANALYSIS - GENERAL INFORMATION The Irrigation, Water Feature, & Lighting Replacement Reserve Analysis calculations of recommended funding of Replacement Reserves by the Cash Flow Method and the evaluation of the Current Funding are based upon the same Study Year, Study Period, Beginning Balance, Replacement Reserve Inventory and Level of Service STUDY YEAR The Association reports that their accounting year begins on January 1, and the Study Year, the first year evaluated by the Replacement Reserve Analysis, begins on January 1, Years STUDY PERIOD The Replacement Reserve Analysis evaluates the funding of Replacement Reserves over a 40-year Study Period. NONE STARTING BALANCE The Association reports that no funds are attributed to Replacement Reserves Level Two LEVEL OF SERVICE The Replacement Reserve Inventory has been developed in compliance with the National Reserve Study Standards for a Level Two Study, as defined by the Community Associations Institute (CAI). $,484,000 REPLACEMENT RESERVE INVENTORY - PROJECTED REPLACEMENTS The Irrigation, Water Feature, & Lighting Replacement Reserve Inventory identifies 24 items that will require periodic replacement, that are to be funded from Replacement Reserves. We estimate the cost of these replacements will be $,484,000 over the 40-year Study Period. The Projected Replacements are divided into 8 major categories starting on Page B3. Pages B1-B2 provide detailed information on the Replacement Reserve Inventory. #2 - Annual Expenditures for Projected Replacements Graph This graph shows annual expenditures for Projected Replacements over the 40-year Study Period. The red line shows the average annual expenditure of $137,100. Section C provides a year by year Calender of these expenditures. $2,00,000 $2,044,000 $2,000,000 $1,00,000 $1,000,000 $00,000 $0 $137, year Average $18,000 $0 $143,000 $0 $118,000 $13,000 $8,000 $0 $13,000 $0 $8,000 $13,000 $18,000 $0 $368,000 $0 $18,000 $360,000 $8,000 $0 $478,000 $0 $8,000 $360,000 $18,000 $0 $143,000 $0 $18,000 $13,000 $8,000 $0 $13,000 $8,000 $13,000 $118,000 $0 $368,000 $

98 Replacement Reserve Analysis - Page A3 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 UPDATING UPDATING OF THE FUNDING PLAN The Association has a responsibility to review the Funding Plan annually. The review should include a comparison and evaluation of actual reserve funding with recommended levels shown on Page A4 and A. The Projected Replacements listed on Page C2 should be compared with any replacements accomplished and funded from Replacement Reserves. Discrepancies should be evaluated and if necessary, the Reserve Study should be updated or a new study commissioned. We recommend annual increases in replacement reserve funding to account for the impact of inflation. Inflation Adjusted Funding is discussed on Page A. UPDATING OF THE REPLACEMENT RESERVE STUDY At a minimum, the Replacement Reserve Study should be professionally updated every three to five years or after completion of a major replacement project. Updating should also be considered if during the annual review of the Funding Plan, discrepancies are noted between projected and actual reserve funding or replacement costs. Updating may also be necessary if there is a meaningful discrepancy between the actual inflation rate and the inflation rate used for the Inflation Adjusted Funding of Replacement Reserves on Page A. ANNUAL EXPENDITURES The annual expenditures that comprise the $,484,000 of Projected Expenditures over the 40-year Study Period are detailed in Table 3. A year-by-year listing of the specific projects can be found beginning on Page C2. #3 - Table of Annual Expenditures - Years 1 through 40 Year Projected Replacements ($18,000) ($143,000) ($118,000) ($13,000) ($8,000) ($13,000) End of Year Balance ($18,000) ($18,000) ($161,000) ($161,000) ($279,000) ($414,000) ($422,000) ($422,000) ($7,000) ($7,000) Cumulative Expenditures ($18,000) ($18,000) ($161,000) ($161,000) ($279,000) ($414,000) ($422,000) ($422,000) ($7,000) ($7,000) Year Projected Replacements ($8,000) ($13,000) ($18,000) ($368,000) ($18,000) ($360,000) ($8,000) End of Year Balance ($83,000) ($718,000) ($736,000) ($736,000) ($1,104,000) ($1,104,000) ($1,122,000) ($1,482,000) ($1,490,000) ($1,490,000) Cumulative Expenditures ($83,000) ($718,000) ($736,000) ($736,000) ($1,104,000) ($1,104,000) ($1,122,000) ($1,482,000) ($1,490,000) ($1,490,000) Year Projected Replacements ($478,000) ($8,000) ($360,000) ($18,000) ($143,000) ($18,000) ($13,000) End of Year Balance ($1,968,000) ($1,968,000) ($1,976,000) ($2,336,000) ($2,34,000) ($2,34,000) ($2,497,000) ($2,497,000) ($2,1,000) ($2,60,000) Cumulative Expenditures ($1,968,000) ($1,968,000) ($1,976,000) ($2,336,000) ($2,34,000) ($2,34,000) ($2,497,000) ($2,497,000) ($2,1,000) ($2,60,000) Year Projected Replacements ($8,000) ($13,000) ($2,044,000) ($8,000) ($13,000) ($118,000) ($368,000) End of Year Balance ($2,68,000) ($2,68,000) ($2,811,000) ($4,8,000) ($4,863,000) ($4,998,000) ($,116,000) ($,116,000) ($,484,000) ($,484,000) Cumulative Expenditures ($2,68,000) ($2,68,000) ($2,811,000) ($4,8,000) ($4,863,000) ($4,998,000) ($,116,000) ($,116,000) ($,484,000) ($,484,000) Table #3 shows the annual costs for Projected Replacements and the cumulative annual expenditures for the Projected Replacements. Table #3 also shows the Starting Balance and Current Annual Funding if reported by Association. When this information is provided, Table #3 will calculate the consequences of continuing to fund Replacement Reserves at current levels over the 40-year Study Period. This information is for use by the Association for the development of a Funding Plan. The Funding Plan is a critical planning tool if the Association is to provide timely and adequate funding for the $,484,000 of Projected Replacements scheduled in the Replacement Reserve Inventory over the 40-year Study Period.

99 Replacement Reserve Analysis - Page A4 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 CASH FLOW METHOD FUNDING $331,764 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR 2016 Recommended Replacement Reserve Funding has been calculated using the Cash Flow Method (also called the Straight Line or Threshold Method). This method calculates a constant annual funding between peaks in cumulative expenditures, while maintaining a Minimum Balance (threshold) in the Peak Years. Peak Years. The First Peak Year occurs in 2016 with Replacement Reserves on Deposit dropping to the Minimum Balance after the completion of $18,000 of replacements in the Study Year, Recommended funding declines from $331,764 in 2016 to $146,76 in Peak Years are identified in Chart 4 and Table. Minimum Balance. The calculations assume a Minimum Balance of $313,764 in Replacement Reserves. This is approx. 27 months of average expenditures based on the $137,100, 40-year average annual expenditure. Cash Flow Method Study Period. Cash Flow Method calculates funding for $,484,000 of expenditures over the 40-year Study Period. It does not include funding for any projects beyond 20 and in 20, the end of year balance will always be the Minimum Balance. #4 - Cash Flow Method - Graph of Cumulative Receipts and Expenditures - Years 1 through 40 $7,000,000 Cash Flow Method - Cumulative Receipts Cash Flow Method - Year End Balance Cumulative Expenditures Peak Year $6,000,000 $,797,764 $,000,000 $,484,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 $313, # - Cash Flow Method - Table of Receipts & Expenditures - Years 1 through 40 Year 1st Peak Starting Balance Projected Replacements ($18,000) ($143,000) ($118,000) ($13,000) ($8,000) ($13,000) Annual Deposit $331,764 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 End of Year Balance $313,764 $460,340 $463,916 $610,491 $639,067 $60,643 $789,219 $93,794 $929,370 $1,07,946 Cumulative Expenditures $18,000 $18,000 $161,000 $161,000 $279,000 $414,000 $422,000 $422,000 $7,000 $7,000 Cumulative Receipts $331,764 $478,340 $624,916 $771,491 $918,067 $1,064,643 $1,211,219 $1,37,794 $1,04,370 $1,60,946 Year Projected Replacements ($8,000) ($13,000) ($18,000) ($368,000) ($18,000) ($360,000) ($8,000) Annual Deposit $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 End of Year Balance $1,214,22 $1,226,097 $1,34,673 $1,01,249 $1,279,82 $1,426,400 $1,4,976 $1,341,2 $1,480,128 $1,626,703 Cumulative Expenditures ($83,000) ($718,000) ($736,000) ($736,000) ($1,104,000) ($1,104,000) ($1,122,000) ($1,482,000) ($1,490,000) ($1,490,000) Cumulative Receipts $1,797,22 $1,944,097 $2,090,673 $2,237,249 $2,383,82 $2,30,400 $2,676,976 $2,823,2 $2,970,128 $3,116,703 Year Projected Replacements ($478,000) ($8,000) ($360,000) ($18,000) ($143,000) ($18,000) ($13,000) Annual Deposit $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 $146,76 End of Year Balance $1,29,279 $1,441,8 $1,80,431 $1,367,006 $1,49,82 $1,642,18 $1,64,734 $1,792,309 $1,920,88 $1,932,461 Cumulative Expenditures ($1,968,000) ($1,968,000) ($1,976,000) ($2,336,000) ($2,34,000) ($2,34,000) ($2,497,000) ($2,497,000) ($2,1,000) ($2,60,000) Cumulative Receipts $3,263,279 $3,409,8 $3,6,431 $3,703,006 $3,849,82 $3,996,18 $4,142,734 $4,289,309 $4,43,88 $4,82,461 Year nd Peak rd Peak Projected Replacements ($8,000) ($13,000) ($2,044,000) ($8,000) ($13,000) ($118,000) ($368,000) Annual Deposit $146,76 $146,76 $146,76 $146,76 $12,800 $12,800 $12,800 $12,800 $12,800 End of Year Balance $2,071,037 $2,217,612 $2,211,188 $313,764 $431,64 $422,364 $430,164 $,964 $313,764 $313,764 Cumulative Expenditures ($2,68,000) ($2,68,000) ($2,811,000) ($4,8,000) ($4,863,000) ($4,998,000) ($,116,000) ($,116,000) ($,484,000) ($,484,000) Cumulative Receipts $4,729,037 $4,87,612 $,022,188 $,168,764 $,294,64 $,420,364 $,46,164 $,671,964 $,797,764 $,797,764

100 Replacement Reserve Analysis - Page A Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 INFLATION ADJUSTED FUNDING The Cash Flow Method calculations on Page A4 have been done in today's dollars with no adjustment for inflation. At Miller + Dodson, we belive that long-term inflation forecasting is effective at demonstrating the power of compounding, not at calculating appropriate funding levels for Replacement Reserves. We have developed this proprietary model to estimate the short-term impact of inflation on Replacement Reserve funding. $331, CASH FLOW METHOD RECOMMENDED FUNDING #6 - Inflation Adjusted Funding The 2016 Study Year calculations have been made using current replacement costs $30,000 (see Page B2), modified by the Analyst for any project specific conditions. $13, INFLATION ADJUSTED FUNDING A new analysis calculates 2017 funding based on three assumptions; Replacement Reserves on Deposit totaling $313,764 on January 1, All 2016 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $18,000. Construction Cost Inflation of 4.0 percent in The $13,99 inflation adjusted funding in 2017 is a 4.79 percent increase over the non-inflation adjusted 2017 funding of $146,76. $300,000 $20,000 $200,000 $331,764 $331,764 $161, INFLATION ADJUSTED FUNDING A new analysis calculates 2018 funding based on three assumptions; Replacement Reserves on Deposit totaling $467,363 on January 1, No Expenditures from Replacement Reserves in $10,000 $146,76 $13,99 $146,76 $161,169 $146,76 $169,107 Construction Cost Inflation of 4.0 percent in The $161,169 inflation adjusted funding in 2018 is a 9.96 percent increase over the non-inflation adjusted 2018 funding of $146,76. $100,000 $169, INFLATION ADJUSTED FUNDING A new analysis calculates 2019 funding based on three assumptions; Replacement Reserves on Deposit totaling $472,373 on January 1, All 2018 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $16,160. Construction Cost Inflation of 4.0 percent in The $169,107 inflation adjusted funding in 2019 is a 1.37 percent increase over the non-inflation adjusted funding of $146, YEAR FIVE & BEYOND The inflation adjusted funding calculations outlined above are not intended to be a substitute for periodic evaluation of common elements by an experienced Reserve Analyst. Industry Standards, lender requirements, and many state and local statutes require a Replacement Reserve Study be professionally updated every 3 to years. INFLATION ADJUSTMENT Prior to approving a budget based upon the 2017, 2018 and 2019 inflation adjusted funding calculations above, the 4.0 percent base rate of inflation used in our calculations should be compared to rates published by the Bureau of Labor Statistics. If there is a significant discrepancy (over 1 percent), contact Miller Dodson + Associates prior to using the Inflation Adjusted Funding. INTEREST ON RESERVES The recommended funding calculations do not account for interest earned on Replacement Reserves. In 2016, based on a 1.00 percent interest rate, we estimate the Association may earn $1,69 on an average balance of $16,882, $3,906 on an average balance of $390,64 in 2017, and $4,699 on $469,868 in The Association may elect to attribute 100 percent of the earned interest to Reserves, resulting in a reduction in the 2016 minimum funding from $331,764 to $330,19 (a 0.47 percent reduction), $13,99 to $149,694 in 2017 (a 2.4 percent reduction), and $161,169 to $16,470 in 2018 (a 2.92 percent reduction). $0,000 $0 Cash Flow Method Funding Inflation Adjusted Funding

101 Replacement Reserve Analysis - Page A6 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 REPLACEMENT RESERVE STUDY - SUPPLEMENTAL COMMENTS The Cash Flow Method calculates the minimum annual funding necessary to prevent Replacement Reserves from dropping below the Minimum Balance. Failure to fund at least the recommended levels may result in funding not being available for the Projected Replacements listed in the Replacement Reserve Inventory. The accuracy of the Replacement Reserve Analysis is dependent upon expenditures from Replacement Reserves being made ONLY for the 24 Projected Replacements specifically listed in the Replacement Reserve Inventory. The inclusion/exclusion of items from the Replacement Reserve Inventory is discussed on Page B1.

102 Replacement Reserve Inventory - Page B1 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 REPLACEMENT RESERVE INVENTORY GENERAL INFORMATION Irrigation, Water Feature, & Lighting - Replacement Reserve Inventory identifies 36 items. Two types of items are identified, Projected Replacements and Excluded Items: PROJECTED REPLACEMENTS. 24 of the items are Projected Replacements and the periodic replacements of these items are scheduled for funding from Replacement Reserves. The Projected Replacements have an estimated one-time replacement cost of $6,27,280. Replacements totaling $,484,000 are scheduled in the Replacement Reserve Inventory over the 40-year Study Period. Projected Replacements are the replacement of commonly-owned physical assets that require periodic replacement and whose replacement is to be funded from Replacement Reserves. EXCLUDED ITEMS. 12 of the items are Excluded Items, and expenditures for these items are NOT scheduled for funding from Replacement Reserves. The accuracy of the calculations made in the Replacement Reserve Analysis is dependent on expenditures NOT being made for Excluded Items. The Excluded Items are listed in the Replacement Reserve Inventory to identify specific items and categories of items that are not to be funded from Replacement Reserves. There are multiple categories of items that are typically excluded from funding by Replacement Reserves, including but not limited to: Tax Code. The United States Tax Code grants very favorable tax status to Replacement Reserves, conditioned on expenditures being made within certain guidelines. These guidelines typically exclude maintenance activities, minor repairs and capital improvements. Value. Items with a replacement cost of less that $1,000 and/or a normal economic life of less than 3 years are typically excluded from funding from Replacement Reserves. This exclusion should reflect Association policy on the administration of Replacement Reserves. If the Association has selected an alternative level, it will be noted in the Replacement Reserve Inventory - General Comments on Page B2. Long-lived Items. Items that when properly maintained, can be assumed to have a life equal to the property as a whole, are typically excluded from the Replacement Reserve Inventory. Unit improvements. Items owned by a single unit and where the items serve a single unit are generally assumed to be the responsibility of that unit, not the Association. Other non-common improvements. Items owned by the local government, public and private utility companies, the United States Postal Service, Master Associations, state and local highway authorities, etc., may be installed on property that is owned by the Association. These types of items are generally not the responsibility of the Association and are excluded from the Replacement Reserve Inventory. The rationale for the exclusion of an item from funding by Replacement Reserves is discussed in more detail in the 'Comments' sections of the Section B - Replacement Reserve Inventory. CATEGORIES. The 36 items included in the Irrigation, Water Feature, & Lighting Replacement Reserve Inventory are divided into 8 major categories. Each category is printed on a separate page, Pages B3 to B9. LEVEL OF SERVICE. This Replacement Reserve Inventory has been developed in compliance with the standards established for a Level Two - Update (with site visit and on-site review), as defined by the National Reserve Study Standards, established in 1998 by Community Associations Institute, which states: Level II Studies are based entirely on the component inventory from a prior study. This information is adjusted to reflect changes to the inventory that are provided by the Association, and the quantities are adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings that are made available to us. The condition of all components is ascertained from a site visit and the visual inspection of each component by the analyst. The Remaining Economic Life and replacement cost of components are provided based in part on these observations. The fund status and Funding Plan are derived from analysis of this data.

103 Replacement Reserve Inventory - Page B2 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 REPLACEMENT RESERVE INVENTORY - GENERAL INFORMATION (cont'd) INVENTORY DATA. Each of the 24 Projected Replacements listed in the Replacement Reserve Inventory includes the following data: Item Number. The Item Number is assigned sequentially and is intended for identification purposes only. Item Description. We have identified each item included in the Inventory. Additional information may be included in the Comments section at the bottom of each page of the Inventory. Units. We have used standard abbreviations to identify the number of units including SF-square feet, LF-lineal feet, SY-square yard, LS-lump sum, EA-each, and PR-pair. Non-standard abbreviations are noted in the Comments section at the bottom of the page. Number of Units. The methods used to develop the quantities are discussed in "Level of Service" above. Unit Replacement Cost. We use four sources to develop the unit cost data shown in the Inventory; actual replacement cost data provided by the client, information provided by local contractors and suppliers, industry standard estimating manuals, and a cost database we have developed based upon our detailed interviews with contractors and service providers who are specialists in their respective lines of work. Normal Economic Life (Yrs). The number of years that a new and properly installed item should be expected to remain in service. Remaining Economic Life (Yrs). The estimated number of years before an item will need to be replaced. In "normal" conditions, this could be calculated by subtracting the age of the item from the Normal Economic Life of the item, but only rarely do physical assets age "normally". Some items may have longer or shorter lives depending on many factors such as environment, initial quality of the item, maintenance, etc. Total Replacement Cost. This is calculated by multiplying the Unit Replacement Cost by the Number of Units. Each of the 12 Excluded Items includes the Item Description, Units, and Number of Units. Many of the Excluded Items are listed as a 'Lump Sum' with a quantity of 1. For the Excluded Items, this indicates that all of the items identified by the 'Item Description' are excluded from funding by Replacement Reserves. REVIEW OF EXPENDITURES. This Replacement Reserve Study should be reviewed by an accounting professional representing the Association prior to implementation. PARTIAL FUNDING. Items may have been included in the Replacement Reserve Inventory at less than 100 percent of their full quantity and/or replacement cost. This is done on items that will never be replaced in their entirety, but which may require periodic replacements over an extended period of time. The assumptions that provide the basis for any partial funding are noted in the Comments section. REMAINING ECONOMIC LIFE GREATER THAN 40 YEARS. The calculations do not include funding for initial replacements beyond 40 years. These replacements are included in this Study for tracking and evaluation. They should be included for funding in future Studies, when they enter the 40-year window.

104 Replacement Reserve Inventory - Page B3 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 LANDSCAPE - IRRIGATION PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 1 Irrigation systems - renovation (2%) sf 300,000 $ $13,000 2 Irrigation systems - renovation (2%) sf 300,000 $ $13,000 3 Irrigation systems - renovation (2%) sf 300,000 $ $13,000 4 Irrigation systems - renovation (2%) sf 300,000 $ $13,000 Irrigation systems - replace (2%) sf 300,000 $ $360,000 6 Irrigation systems - replace (2%) sf 300,000 $ $360,000 7 Irrigation systems - replace (2%) sf 300,000 $ $360,000 8 Irrigation systems - replace (2%) sf 300,000 $ $360,000 LANDSCAPE - IRRIGATION - Replacement Costs - Subtotal $1,980,000 LANDSCAPE - IRRIGATION COMMENTS Irrigation systems. We identified 20 to 3 acres of dense landscape, that appears to be located on property maintained by the Association. Most of these installations are irrigated. We have assumed an economic life of 24 years for the irrigation systems and that a mid-life renovation project will be needed to allow the systems to achieve this economic life. The annual costs associated with the maintenance and operation of the systems are not scheduled for funding from Replacement Reserves.

105 Replacement Reserve Inventory - Page B4 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 HARDSCAPE - WATER FEATURES PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 9 Water feature - structure sf 26,666 $ $2,133, Water feature - major renovation ls 1 $100, $100, Water feature - equipment ls 1 $10, none 2 $10, Water feature - pumps ls 1 $8, none 2 $8,000 HARDSCAPE - WATER FEATURES - Replacement Costs - Subtotal $2,21,280 HARDSCAPE - WATER FEATURES COMMENTS Water features. The three water features are located north of the Community Center (21,302 sf), in Lantana Park (1,23 sf), and in the southeast corner of Legacy Park (4,111 sf). The Lantana Park feature was not in operation when we were on site. Water feature renovation. We have consolidated the concrete decks, structure, and stone work. Water feature equipment. We have consolidated the pump houses, plumbing, well, well pump, electrical services, etc.

106 Replacement Reserve Inventory - Page B Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 STREETLIGHTS PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 13 Streetlights - Section 18 ea 18 $7, $126, Streetlights - Section 19 ea 0 $7, $30,000 1 Streetlights - Section 21 ea 11 $7, $77, Streetlights - Section 22 ea 20 $7, $140, Streetlights - Section 27 (incomplete) ea 7 $7, $49, Streetlights - Section 24 ea $7, $38, Streetlights - Section 33 ea 2 $7, $17, Streetlights - Section 33 (future) ea 17 $7, $119,000 Streetlights - Belmont Trace (TH) ea 20 3 EXCLUDED Streetlights - Belmont Trace (SF) ea 3 3 EXCLUDED 21 Streetlights - Brambleton Corner ea 24 $7, $168, Streetlights - Brambleton Corner (future) ea 2 $7, $14, Streetlights - Brandt ea 24 $7, $168, Streetlights - Town Cntr Residential ea 39 $7, $273,000 Streetlights - Trent Grove ea 37 3 EXCLUDED STREETLIGHTS - Replacement Costs - Subtotal $2,044,000 STREETLIGHTS COMMENTS Streetlights. Some of the above listed streetlights may be the responsibility of the local power company. We have assumed all of the streetlights will be replaced as single project for economics of scale.

107 Replacement Reserve Inventory - Page B6 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 VALUATION EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Sprinkler head ls 1 3 EXCLUDED VALUATION EXCLUSIONS COMMENTS Valuation Exclusions. For ease of administration of the Replacement Reserves and to reflect accurately how Replacement Reserves are administered, items with a dollar value less than $1, have not been scheduled for funding from Replacement Reserves. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

108 Replacement Reserve Inventory - Page B7 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 LONG-LIFE EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Underground bunker ls 1 3 EXCLUDED LONG-LIFE EXCLUSIONS COMMENTS Long Life Exclusions. Components that when properly maintained, can be assumed to have a life equal to the property as a whole, are normally excluded from the Replacement Reserve Inventory. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

109 Replacement Reserve Inventory - Page B8 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 UTILITY EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Primary electric feeds ls 1 3 EXCLUDED Electric transformers ls 1 3 EXCLUDED Site lighting (maintained by others) ls 1 3 EXCLUDED Water mains and meters ls 1 3 EXCLUDED UTILITY EXCLUSIONS COMMENTS Utility Exclusions. Many improvements owned by utility companies are on property owned by the Association. We have assumed that repair, maintenance, and replacements of these components will be done at the expense of the appropriate utility company. Examples of items excluded from funding Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

110 Replacement Reserve Inventory - Page B9 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 MAINTENANCE AND REPAIR EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Minor landscaping and site grading ls 1 3 EXCLUDED Repair services ls 1 3 EXCLUDED Capitol improvements ls 1 3 EXCLUDED MAINTENANCE AND REPAIR EXCLUSIONS COMMENTS Maintenance activities, one-time-only repairs, and capitol improvements. These activities are NOT appropriately funded from Replacement Reserves. The inclusion of such component in the Replacement Reserve Inventory could jeopardize the special tax status of ALL Replacement Reserves, exposing the Association to significant tax liabilities. We recommend that the Board of Directors discuss these exclusions and Revenue Ruling with a Certified Public Accountant. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

111 Intentionally Left Blank

112 Projected Annual Replacements - Page C1 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 PROJECTED ANNUAL REPLACEMENTS GENERAL INFORMATION CALENDAR OF ANNUAL REPLACEMENTS. The 24 Projected Replacements in the Irrigation, Water Feature, & Lightin Replacement Reserve Inventory whose replacement is scheduled to be funded from Replacement Reserves are broken down on a year-by-year basis, beginning on Page C2. REPLACEMENT RESERVE ANALYSIS AND INVENTORY POLICIES, PROCEDURES, AND ADMINISTRATION REVISIONS. Revisions will be made to the Replacement Reserve Analysis and Replacement Reserve Inventory in accordance with the written instructions of the Board of Directors. No additional charge is incurred for the first revision, if requested in writing within three months of the date of the Replacement Reserve Study. It is our policy to provide revisions in electronic (Adobe PDF) format only. TAX CODE. The United States Tax Code grants favorable tax status to a common interest development (CID) meeting certain guidelines for their Replacement Reserve. If a CID files their taxes as a 'Corporation' on Form 1120 (IRC Section 277), these guidelines typically require maintenance activities, partial replacements, minor replacements, capital improvements, and one-time only replacements to be excluded from Reserves. A CID cannot co-mingle planning for maintenance activities with capital replacement activities in the Reserves (Revenue Ruling 7-370). Funds for maintenance activities and capital replacements activities must be held in separate accounts. If a CID files taxes as an "Exempt Homeowners Association" using Form 1120H (IRC Section 28), the CID does not have to segregate these activities. However, because the CID may elect to change their method of filing from year to year within the Study Period, we advise using the more restrictive approach. We further recommend that the CID consult with their Accountant and consider creating separate and independent accounts and reserves for large maintenance items, such as painting. CONFLICT OF INTEREST. Neither Miller - Dodson Associates nor the Reserve Analyst has any prior or existing relationship with this Association which would represent a real or perceived conflict of interest. RELIANCE ON DATA PROVIDED BY THE CLIENT. Information provided by an official representative of the Association regarding financial, physical conditions, quality, or historical issues is deemed reliable. INTENT. This Replacement Reserve Study is a reflection of the information provided by the Association and the visual evaluations of the Analyst. It has been prepared for the sole use of the Association and is not for the purpose of performing an audit, quality/forensic analyses, or background checks of historical records. PREVIOUS REPLACEMENTS. Information provided to Miller - Dodson Associates regarding prior replacements is considered to be accurate and reliable. Our visual evaluation is not a project audit or quality inspection. EXPERIENCE WITH FUTURE REPLACEMENTS. The Calendar of Annual Projected Replacements, lists replacements we have projected to occur over the next thirty years, begins on Page C2. Actual experience in replacing the items may differ significantly from the cost estimates and time frames shown because of conditions beyond our control. These differences may be caused by maintenance practices, inflation, variations in pricing and market conditions, future technological developments, regulatory actions, acts of God, and luck. Some items may function normally during our visual evaluation and then fail without notice. REVIEW OF THE REPLACEMENT RESERVE STUDY. For this study to be effective, it should be reviewed by the Irrigation, Water Feature, & Lighting Board of Directors, those responsible for the management of the items included in the Replacement Reserve Inventory, and the accounting professionals employed by the Association.

113 Projected Annual Replacements - Page C2 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 PROJECTED REPLACEMENTS - YEARS 1 TO 6 Item STUDY YEAR $ Item YEAR 2 $ Item YEAR 3 $ 11 Water feature - equipment $10,000 1 Irrigation systems - renovatio $13, Water feature - pumps $8, Water feature - pumps $8,000 Total Scheduled Replacements $18,000 No Scheduled Replacements Total Scheduled Replacements $143,000 Item YEAR 4 $ Item YEAR $ Item YEAR 6 $ 10 Water feature - major renova $100,000 2 Irrigation systems - renovatio $13, Water feature - equipment $10, Water feature - pumps $8,000 No Scheduled Replacements Total Scheduled Replacements $118,000 Total Scheduled Replacements $13,000

114 Projected Annual Replacements - Page C3 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 PROJECTED REPLACEMENTS - YEARS 7 TO 12 Item YEAR 7 $ Item YEAR 8 $ Item YEAR 9 $ 12 Water feature - pumps $8,000 3 Irrigation systems - renovatio $13, Water feature - equipment $10, Water feature - pumps $8,000 Total Scheduled Replacements $8,000 No Scheduled Replacements Total Scheduled Replacements $13,000 Item YEAR 10 $ Item YEAR 11 $ Item YEAR 12 $ 12 Water feature - pumps $8,000 4 Irrigation systems - renovatio $13,000 No Scheduled Replacements Total Scheduled Replacements $8,000 All Replacements not listed $13,000

115 Projected Annual Replacements - Page C4 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 PROJECTED REPLACEMENTS - YEARS 13 TO 18 Item YEAR 13 $ Item YEAR 14 $ Item YEAR 1 $ 11 Water feature - equipment $10,000 Irrigation systems - replace ( $360, Water feature - pumps $8, Water feature - pumps $8,000 Total Scheduled Replacements $18,000 No Scheduled Replacements All Replacements not listed $368,000 Item YEAR 16 $ Item YEAR 17 $ Item YEAR 18 $ 11 Water feature - equipment $10,000 6 Irrigation systems - replace ( $360, Water feature - pumps $8,000 No Scheduled Replacements Total Scheduled Replacements $18,000 Total Scheduled Replacements $360,000

116 Projected Annual Replacements - Page C Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 PROJECTED REPLACEMENTS - YEARS 19 TO 24 Item YEAR 19 $ Item YEAR 20 $ Item YEAR 21 $ 12 Water feature - pumps $8,000 7 Irrigation systems - replace ( $360, Water feature - major renova $100, Water feature - equipment $10, Water feature - pumps $8,000 Total Scheduled Replacements $8,000 No Scheduled Replacements Total Scheduled Replacements $478,000 Item YEAR 22 $ Item YEAR 23 $ Item YEAR 24 $ 12 Water feature - pumps $8,000 8 Irrigation systems - replace ( $360,000 No Scheduled Replacements Total Scheduled Replacements $8,000 Total Scheduled Replacements $360,000

117 Projected Annual Replacements - Page C6 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 PROJECTED REPLACEMENTS - YEARS 2 TO 30 Item YEAR 2 $ Item YEAR 26 $ Item YEAR 27 $ 11 Water feature - equipment $10,000 1 Irrigation systems - renovatio $13, Water feature - pumps $8, Water feature - pumps $8,000 Total Scheduled Replacements $18,000 No Scheduled Replacements Total Scheduled Replacements $143,000 Item YEAR 28 $ Item YEAR 29 $ Item YEAR 30 $ 11 Water feature - equipment $10,000 2 Irrigation systems - renovatio $13, Water feature - pumps $8,000 No Scheduled Replacements Total Scheduled Replacements $18,000 Total Scheduled Replacements $13,000

118 Projected Annual Replacements - Page C7 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 PROJECTED REPLACEMENTS - YEARS 31 TO 36 Item YEAR 31 $ Item YEAR 32 $ Item YEAR 33 $ 12 Water feature - pumps $8,000 3 Irrigation systems - renovatio $13, Water feature - equipment $10, Water feature - pumps $8,000 Total Scheduled Replacements $8,000 No Scheduled Replacements Total Scheduled Replacements $13,000 Item YEAR 34 $ Item YEAR 3 $ Item YEAR 36 $ 13 Streetlights - Section 18 $126, Water feature - pumps $8,000 4 Irrigation systems - renovatio $13, Streetlights - Section 19 $30,000 1 Streetlights - Section 21 $77, Streetlights - Section 22 $140, Streetlights - Section 27 (inc $49, Streetlights - Section 24 $38, Streetlights - Section 33 $17, Streetlights - Section 33 (futu $119, Streetlights - Brambleton Co $168, Streetlights - Brambleton Co $14, Streetlights - Brandt $168, Streetlights - Town Cntr Res $273,000 Total Scheduled Replacements $2,044,000 All Replacements not listed $8,000 Total Scheduled Replacements $13,000

119 Projected Annual Replacements - Page C8 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 PROJECTED REPLACEMENTS - YEARS 37 TO 42 Item YEAR 37 $ Item YEAR 38 $ Item YEAR 39 $ 10 Water feature - major renova $100,000 Irrigation systems - replace ( $360, Water feature - equipment $10, Water feature - pumps $8, Water feature - pumps $8,000 Total Scheduled Replacements $118,000 No Scheduled Replacements Total Scheduled Replacements $368,000 Item 20 - YEAR 40 $ Item 206 (beyond Study Period) $ Item 207 (beyond Study Period) $ 11 Water feature - equipment $10,000 6 Irrigation systems - replace ( $360, Water feature - pumps $8,000 No Scheduled Replacements Total Scheduled Replacements $18,000 Total Scheduled Replacements $360,000

120 Cash Flow Method Accounting Summary - Page CF1 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 CASH FLOW METHOD ACCOUNTING SUMMARY This Irrigation, Water Feature, & Lighting - Cash Flow Method Accounting Summary is an attachment to the Irrigation, Water Feature, & Lighting - Replacement Reserve Study dated September 20, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Cash Flow Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. CASH FLOW METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 24 Projected Replacements listed in the Irrigation, Water Feature, & Lighting Replacement Reserve Inventory has been assigned to one of 3 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Cash Flow Method. THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $0 Beginning Balance (at the start of the Study Year) and the $624,916 of additional Replacement Reserve Funding in 2016 through 2018 (as calculated in the Replacement Reserve Analysis) to each of the 24 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and discussed below. The calculated data includes: m Identification and estimated cost of each Projected Replacement scheduled in years 2016 through m Allocation of the $0 Beginning Balance to the Projected Replacements by Chronological Allocation. m Allocation of the $624,916 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by Chronological Allocation. CHRONOLOGICAL ALLOCATION. Chronological Allocation assigns Replacement Reserves to Projected Replacements on a "first come, first serve" basis in keeping with the basic philosophy of the Cash Flow Method. The Chronological Allocation methodology is outlined below. m The first step is the allocation of the $0 Beginning Balance to the Projected Replacements in the Study Year. Remaining unallocated funds are next allocated to the Projected Replacements in subsequent years in chronological order until the total of Projected Replacements in the next year is greater than the unallocated funds. Projected Replacements in this year are partially funded with each replacement receiving percentage funding. The percentage of funding is calculated by dividing the unallocated funds by the total of Projected Replacements in the partially funded year. At Irrigation, Water Feature, & Lighting the Beginning Balance funds 0.0% of Scheduled Replacements in the Study Year. m The next step is the allocation of the $331,764 of 2016 Cash Flow Method Reserve Funding calculated in the Replacement Reserve Analysis. These funds are first allocated to fund the partially funded Projected Replacements and then to subsequent years in chronological order as outlined above. At Irrigation, Water Feature, & Lighting the Beginning Balance and the 2016 Replacement Reserve Funding, funds replacements through 2020 and partial funds (39.1%) replacements in m Allocations of the 2017 and 2018 Reserve Funding are done using the same methodology. m The Three-Year Replacement Funding Report details component by component allocations made by Chronological Allocation.

121 Cash Flow Method Accounting Summary - Page CF2 Irrigation, Water Feature, & Lighting September 20, IRRIGATI CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 24 Projected Replacements included in the Irrigation, Water Feature, & Lighting Replacement Reserve Inventory has been assigned to one of the 3 categories listed in TABLE CF1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $0 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $331,764 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $18,000. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE LANDSCAPE - IRRIGATION 24 years 2 to 23 years $1,980,000 $187,764 $187,764 HARDSCAPE - WATER FEATURES 2 to 60 years 0 to 48 years $2,21,280 $144,000 ($18,000) $126,000 STREETLIGHTS 3 years 33 years $2,044,000

122 Cash Flow Method Accounting Summary - Page CF3 Irrigation, Water Feature, & Lighting September 20, IRRIGATI CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 24 Projected Replacements included in the Irrigation, Water Feature, & Lighting Replacement Reserve Inventory has been assigned to one of the 3 categories listed in TABLE CF2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $313,764 on January 1, m Total reserve funding (including the Beginning Balance) of $478,340 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE LANDSCAPE - IRRIGATION 24 years 1 to 22 years $1,980,000 $187,764 $131,948 $319,712 HARDSCAPE - WATER FEATURES 2 to 60 years 1 to 47 years $2,21,280 $126,000 $14,628 $140,628 STREETLIGHTS 3 years 32 years $2,044,000

123 Cash Flow Method Accounting Summary - Page CF4 Irrigation, Water Feature, & Lighting September 20, IRRIGATI CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 24 Projected Replacements included in the Irrigation, Water Feature, & Lighting Replacement Reserve Inventory has been assigned to one of the 3 categories listed in TABLE CF3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $460,340 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $624,916 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2018 being accomplished in 2018 at a cost of $143,000. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE LANDSCAPE - IRRIGATION 24 years 0 to 21 years $1,980,000 $319,712 $127,204 ($13,000) $311,916 HARDSCAPE - WATER FEATURES 2 to 60 years 0 to 46 years $2,21,280 $140,628 $19,372 ($8,000) $12,000 STREETLIGHTS 3 years 31 years $2,044,000

124 Cash Flow Method Accounting Summary - Page CF Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CF4 below details the allocation of the $0 Beginning Balance, as reported by the Association and the $624,916 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 24 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $0 on January 1, m Replacement Reserves on Deposit totaling $313,764 on January 1, m Replacement Reserves on Deposit totaling $460,340 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $624,916 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $161,000. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance LANDSCAPE - IRRIGATION 1 Irrigation systems - renovation (2%) 13,000 13,000 13,000 13,000 (13,000) 2 Irrigation systems - renovation (2%) 13,000 2,764 2,764 82,236 13,000 13,000 3 Irrigation systems - renovation (2%) 13,000 49,712 49,712 8,288 13,000 4 Irrigation systems - renovation (2%) 13,000 41,916 41,916 Irrigation systems - replace (2%) 360,000 6 Irrigation systems - replace (2%) 360,000 7 Irrigation systems - replace (2%) 360,000 8 Irrigation systems - replace (2%) 360,000 HARDSCAPE - WATER FEATURES 9 Water feature - structure 2,133, Water feature - major renovation 100, , , , , Water feature - equipment 10,000 20,000 (10,000) 10,000 3,682 13,682 6,318 20, Water feature - pumps 8,000 24,000 (8,000) 16,000 10,946 26,946 13,04 (8,000) 32,000 STREETLIGHTS 13 Streetlights - Section , Streetlights - Section 19 30,000 1 Streetlights - Section 21 77, Streetlights - Section , Streetlights - Section 27 (incomplete) 49, Streetlights - Section 24 38, Streetlights - Section 33 17, Streetlights - Section 33 (future) 119, Streetlights - Brambleton Corner 168, Streetlights - Brambleton Corner (futur 14, Streetlights - Brandt 168, Streetlights - Town Cntr Residential 273,000

125 Component Method - Page CM1 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 COMPONENT METHOD $311,47 COMPONENT METHOD RECOMMENDED ANNUAL FUNDING OF REPLACEMENT RESERVES IN THE STUDY YEAR, General. The Component Method (also referred to as the Full Funded Method) is a very conservative mathematical model developed by HUD in the early 1980s. Each of the 24 Projected Replacements listed in the Replacement Reserve Inventory is treated as a separate account. The Beginning Balance is allocated to each of the individual accounts, as is all subsequent funding of Replacement Reserves. These funds are "locked" in these individual accounts and are not available to fund other Projected Replacements. The calculation of Recommended Annual Funding of Replacement Reserves is a multi-step process outlined in more detail on Page CM2. Component Method - Cumulative Receipts and Expenditures Graph $8,000,000 Component Method - Cumulative Receipts Component Method - Year End Balance Projected Replacements - Cumulative Expenditures $7,000,000 $6,688,619 $6,000,000 $,000,000 $4,000,000 $4,038,619 $3,000,000 $2,60,000 $2,000,000 $1,000,000 $

126 Component Method - Page CM2 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 COMPONENT METHOD (cont'd) Current Funding Objective. A Current Funding Objective is calculated for each of the Projected Replacements listed in the Replacement Reserve Inventory. Replacement Cost is divided by the Normal Economic Life to determine the nominal annual contribution. The Remaining Economic Life is then subtracted from the Normal Economic Life to calculate the number of years that the nominal annual contribution should have been made. The two values are then multiplied to determine the Current Funding Objective. This is repeated for each of the 24 Projected Replacements. The total, $1,177,01, is the Current Funding Objective. For an example, consider a very simple Replacement Reserve Inventory with one Projected Replacement, a fence with a $1,000 Replacement Cost, a Normal Economic Life of 10 years, and a Remaining Economic Life of 2 years. A contribution to Replacement Reserves of $100 ($1, years) should have been made in each of the previous 8 years (10 years - 2 years). The result is a Current Funding Objective of $800 (8 years x $100 per year). Funding Percentage. The Funding Percentage is calculated by dividing the Beginning Balance ($0) by the Current Funding Objective ($1,177,01). At Irrigation, Water Feature, & Lighting the Funding Percentage is 0. Allocation of the Beginning Balance. The Beginning Balance is divided among the 24 Projected Replacements in the Replacement Reserve Inventory. The Current Funding Objective for each Projected Replacement is multiplied by the Funding Percentage and these funds are then "locked" into the account of each item. If we relate this calculation back to our fence example, it means that the Association has not accumulated $800 in Reserves (the Funding Objective), but rather at 0.0 percent funded, there is $0 in the account for the fence. Annual Funding. The Recommended Annual Funding of Replacement Reserves is then calculated for each Projected Replacement. The funds allocated to the account of the Projected Replacement are subtracted from the Replacement Cost. The result is then divided by the number of years until replacement, and the result is the annual funding for each of the Projected Replacements. The sum of these is $311,47, the Component Method Recommended Annual Funding of Replacement Reserves in the Study Year (2016). In our fence example, the $0 in the account is subtracted from the $1,000 Total Replacement Cost and divided by the 2 years that remain before replacement, resulting in an annual deposit of $00. Next year, the deposit remains $00, but in the third year, the fence is replaced and the annual funding adjusts to $100. Adjustment to the Component Method for interest and inflation. The calculations in the Replacement Reserve Analysis do not account for interest earned on Replacement Reserves, inflation, or a constant annual increase in Annual Funding of Replacement Reserves. The Component Method is a very conservative method and if the Analysis is updated regularly, adequate funding will be maintained without the need for adjustments. Component Method Data - Years 1 through 30 Year Beginning balance Recommended annual funding $311,47 $300,047 $300,047 $260,672 $260,672 $246,922 $230,047 $230,047 $230,047 $220,672 Interest on reserves Expenditures $18,000 $143,000 $118,000 $13,000 $8,000 $13,000 Year end balance $293,47 $93,94 $70,640 $1,011,312 $1,13,984 $1,26,906 $1,487,93 $1,718,000 $1,79,046 $2,01,718 Cumulative Expenditures $18,000 $18,000 $161,000 $161,000 $279,000 $414,000 $422,000 $422,000 $7,000 $7,000 Cumulative Receipts $311,47 $611,94 $911,640 $1,172,312 $1,432,984 $1,679,906 $1,909,93 $2,140,000 $2,370,046 $2,90,718 Year Recommended annual funding $220,672 $220,672 $21,047 $21,047 $21,047 $206,047 $206,047 $206,047 $201,047 $201,047 Interest on reserves Expenditures $8,000 $13,000 $18,000 $368,000 $18,000 $360,000 $8,000 Year end balance $2,228,390 $2,314,062 $2,11,109 $2,726,16 $2,73,202 $2,779,249 $2,967,296 $2,813,343 $3,006,390 $3,207,437 Cumulative Expenditures $83,000 $718,000 $736,000 $736,000 $1,104,000 $1,104,000 $1,122,000 $1,482,000 $1,490,000 $1,490,000 Cumulative Receipts $2,811,390 $3,032,062 $3,247,109 $3,462,16 $3,677,202 $3,883,249 $4,089,296 $4,29,343 $4,496,390 $4,697,437 Year Recommended annual funding $201,047 $198,904 $198,904 $198,904 $198,904 $198,904 $198,904 $198,904 $198,904 $198,904 Interest on reserves Expenditures $478,000 $8,000 $360,000 $18,000 $143,000 $18,000 $13,000 Year end balance $2,930,483 $3,129,387 $3,320,291 $3,19,19 $3,340,099 $3,39,003 $3,94,907 $3,793,811 $3,974,71 $4,038,619 Cumulative Expenditures $1,968,000 $1,968,000 $1,976,000 $2,336,000 $2,34,000 $2,34,000 $2,497,000 $2,497,000 $2,1,000 $2,60,000 Cumulative Receipts $4,898,483 $,097,387 $,296,291 $,49,19 $,694,099 $,893,003 $6,091,907 $6,290,811 $6,489,71 $6,688,619

127 Component Method Accounting Summary - Page CM3 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 COMPONENT METHOD ACCOUNTING SUMMARY This Irrigation, Water Feature, & Lighting - Component Method Accounting Summary is an attachment to the Irrigation, Water Feature, & Lighting - Replacement Reserve Study dated September 20, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Component Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. COMPONENT METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 24 Projected Replacements listed in the Irrigation, Water Feature, & Lighting Replacement Reserve Inventory has been assigned to one of 3 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Component Method. m THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $0 Beginning Balance (at the start of the Study Year) and the $911,640 of additional Replacement Reserve funding from 2016 to 2018 (as calculated in the Replacement Reserve Analysis) to each of the 24 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using the Component Method as outlined in the Replacement Reserve Analysis. The calculated data includes: m Identification and estimated cost of each Projected Replacement schedule in years 2016 through m Allocation of the $0 Beginning Balance to the Projected Replacements by the Component Method. m Allocation of the $911,640 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by the Component Method.

128 Component Method Accounting Summary - Page CM4 Irrigation, Water Feature, & Lighting September 20, IRRIGATI COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 24 Projected Replacements included in the Irrigation, Water Feature, & Lighting Replacement Reserve Inventory has been assigned to one of the 3 categories listed in TABLE CM1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $0 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $311,47 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $18,000. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE 2 to 23 years LANDSCAPE - IRRIGATION 24 years 2 to 23 years $1,980,000 $169,893 $169,893 HARDSCAPE - WATER FEATURES 2 to 60 years 0 to 48 years $2,21,280 $81,36 $18,000 $63,36 STREETLIGHTS 3 years 33 years $2,044,000 $60,118 $60,118

129 Component Method Accounting Summary - Page CM Irrigation, Water Feature, & Lighting September 20, IRRIGATI COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 24 Projected Replacements included in the Irrigation, Water Feature, & Lighting Replacement Reserve Inventory has been assigned to one of the 3 categories listed in TABLE CM2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $293,47 on January 1, m Total reserve funding (including the Beginning Balance) of $611,94 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE LANDSCAPE - IRRIGATION 24 years 1 to 22 years $1,980,000 $169,893 $169,893 $339,786 HARDSCAPE - WATER FEATURES 2 to 60 years 1 to 47 years $2,21,280 $63,36 $70,036 $133,73 STREETLIGHTS 3 years 32 years $2,044,000 $60,118 $60,118 $120,23

130 Component Method Accounting Summary - Page CM6 Irrigation, Water Feature, & Lighting September 20, IRRIGATI COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 24 Projected Replacements included in the Irrigation, Water Feature, & Lighting Replacement Reserve Inventory has been assigned to one of the 3 categories listed in TABLE CM3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $93,94 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $911,640 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2018 being accomplished in 2018 at a cost of $143,000. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE LANDSCAPE - IRRIGATION 24 years 0 to 21 years $1,980,000 $339,786 $169,893 $13,000 $374,679 HARDSCAPE - WATER FEATURES 2 to 60 years 0 to 46 years $2,21,280 $133,73 $70,036 $8,000 $19,609 STREETLIGHTS 3 years 31 years $2,044,000 $120,23 $60,118 $180,33

131 Component Method Accounting Summary - Page CM7 Irrigation, Water Feature, & Lighting September 20, IRRIGATI16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CM4 below details the allocation of the $0 Beginning Balance, as reported by the Association and the $911,640 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 24 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $0 on January 1, m Replacement Reserves on Deposit totaling $293,47 on January 1, m Replacement Reserves on Deposit totaling $93,94 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $911,640 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $161,000. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance LANDSCAPE - IRRIGATION 1 Irrigation systems - renovation (2%) 13,000 4,000 4,000 4,000 90,000 4,000 (13,000) 2 Irrigation systems - renovation (2%) 13,000 22,00 22,00 22,00 4,000 22,00 67,00 3 Irrigation systems - renovation (2%) 13,000 1,000 1,000 1,000 30,000 1,000 4,000 4 Irrigation systems - renovation (2%) 13,000 11,20 11,20 11,20 22,00 11,20 33,70 Irrigation systems - replace (2%) 360,000 24,000 24,000 24,000 48,000 24,000 72,000 6 Irrigation systems - replace (2%) 360,000 20,000 20,000 20,000 40,000 20,000 60,000 7 Irrigation systems - replace (2%) 360,000 17,143 17,143 17,143 34,286 17,143 1,429 8 Irrigation systems - replace (2%) 360,000 1,000 1,000 1,000 30,000 1,000 4,000 HARDSCAPE - WATER FEATURES 9 Water feature - structure 2,133,280 43,36 43,36 43,36 87,073 43,36 130, Water feature - major renovation 100,000 20,000 20,000 20,000 40,000 20,000 60, Water feature - equipment 10,000 10,000 (10,000) 2,00 2,00 2,00, Water feature - pumps 8,000 8,000 (8,000) 4,000 4,000 4,000 (8,000) STREETLIGHTS 13 Streetlights - Section ,000 3,706 3,706 3,706 7,412 3,706 11, Streetlights - Section 19 30,000 10,294 10,294 10,294 20,88 10,294 30,882 1 Streetlights - Section 21 77,000 2,26 2,26 2,26 4,29 2,26 6, Streetlights - Section ,000 4,118 4,118 4,118 8,23 4,118 12,33 17 Streetlights - Section 27 (incomplete) 49,000 1,441 1,441 1,441 2,882 1,441 4, Streetlights - Section 24 38,000 11,324 11,324 11,324 22,647 11,324 33, Streetlights - Section 33 17,000,147,147,147 10,294,147 1, Streetlights - Section 33 (future) 119,000 3,00 3,00 3,00 7,000 3,00 10,00 21 Streetlights - Brambleton Corner 168,000 4,941 4,941 4,941 9,882 4,941 14, Streetlights - Brambleton Corner (futur 14, ,23 23 Streetlights - Brandt 168,000 4,941 4,941 4,941 9,882 4,941 14, Streetlights - Town Cntr Residential 273,000 8,029 8,029 8,029 16,09 8,029 24,088

132 REPLACEMENT RESERVE REPORT - FY 2016 BRAMBLETON RECREATION RESERVE BRAMBLETON, VIRGINIA BRAMBLETON COMMUNITY ASSOCIATION REPLACEMENT RESERVE REPORT FY 2016 Property Management: Brambleton Community Association Mr. Richard Stone 4249 Ryan Road, Suite 210 Brambleton, Virginia Tel: rick.stone@brambleton.org Consultant: 929 West Street, Suite 310 Annapolis, Maryland Tel: Fax: Toll Free: July 30, 201 and revised on September 20, 201

133 INTENTIONALLY LEFT BLANK

134 Replacement Reserve Study BRAMBLETON RECREATION RESERVE BRAMBLETON, VIRGINIA Section A Replacement Reserve Analysis Executive Summary - A1 Reserve Status & Funding Plan - A1 General Information - A2 Cash Flow Method - A4 Component Method - A6 Current Association Funding - A8 Reserve Analysis - Comments - A9 Section B Replacement Reserve Inventory Replacement Reserve Inventory General Information - B1 Replacement Reserve Inventory Comments - B2 Schedule of Projected Replacements and Exclusions - B3 Section C Scope. Brambleton is a community association in Brambleton, Virginia. Construction began at Brambleton in the early 2000's and continues today. The common elements of the community are divided into four inventories, General, Recreation, Town Home, and Recreation. This Study addresses components in the Brambleton Recreation Reserve including:! Swimming pool structures! Swimming pool finishes! Swimming pool equipment! Coping & waterline tiles! Locker rooms that serve the swimming pools.! Concrete pool decks! Pool furniture! Pool covers! Fencing Projected Annual Replacements Projected Annual Replacements General Information - C1 Reserve Analysis & Inventory Policies, Procedure, & Administration - C1 Calendar of Projected Annual Replacements - C2 Level of Service. This study has been performed as a Level II Update, With Site Visit/On-Site Review as defined under the National Reserve Study Standards that have been adopted by the Community Associations Institute. As such, the component inventory is based on the study that was performed by our firm in August This information was adjusted to reflect changes to the inventory that were provided by the community manager, and the quantities were adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings. The condition of all commonly-owned components was ascertained from a site visit and the visual inspection of each component by the Analyst. The life expectancy and the value of components are provided based in part on these observations. The fund status and funding plan have been derived from analysis of this data. Section D Condition Assessment Section E Attachments Supplemental Photographs (included in the Brambleton General Reserve - Supplemental Photographs) Appendix

135 Purpose. The purpose of this Replacement Reserve Study is to provide Brambleton, (hereinafter called the Association), with an inventory of the common community facilities and infrastructure components that require periodic replacement, a general view of the condition of these items, and an effective financial plan to fund projected periodic replacements. Inventory of items owned by the Association. Section B - Replacement Reserve Inventory, lists the Projected Replacements, which are commonly owned items that require periodic replacement using funding from Replacement Reserves. The Replacement Reserve Inventory also provides information about Excluded Items, which are items whose replacement is not scheduled for funding from Replacement Reserves. Condition of items owned by the Association. Section B - Replacement Reserve Inventory includes our estimates of the normal economic life and the remaining economic life for the Projected Replacements, those commonly owned items whose replacement is scheduled for funding from Replacement Reserves. Section C - Calendar of Projected Annual Replacements, provides a yearby-year listing of the Projected Replacements, based upon the data in the Inventory. Several of the items owned by the Association are discussed in more detail in Section D - Condition Assessment. Financial plan. To protect the appearance, value, and safety of the property, it is essential the Association have a financial plan that provides funding for the Projected Replacements. In conformance with American Institute of Certified Public Accountant guidelines, Section A - Replacement Reserve Analysis, evaluates the current funding of Replacement Reserves as reported by the Association, and recommends annual funding of Replacement Reserves by two generally accepted accounting methods; the Cash Flow Method and the Component Method. Section A - Replacement Reserve Analysis includes graphic and tabular presentations of these methods and current Association funding. An Executive Summary of these calculations is provided on Page A1. Basis. The data contained in this Replacement Reserve Study is based upon the following: The Request for Proposal submitted and executed by the Association. The August 2011, Replacement Reserve Study, prepared by Miller - Dodson Associates. Our visual evaluation and measurements in June and July, 201. Miller - Dodson Associates has visually inspected the common elements of the property in order to ascertain the remaining useful life and the replacement costs of these components. Acknowledgment. Miller - Dodson Associates would like to acknowledge the assistance and input of Richard Stone and Shantil Moyer. Analyst's Credential. This study has been performed by Wm. Bruce Bennett. Mr. Bennett holds a Bachelors of Architecture Degree from the Georgia Institute of Technology and did his graduate studies at the Technishe Universitat Hannover, in West Germany as the 1974 World Student Fund Fellow. From 1976 to 1991, Mr. Bennett ran a design-build firm in Northern Virginia. Since 1991 he has been a Reserve Specialist (RS) for Miller Dodson Associates. Respectfully Submitted, MILLER DODSON ASSOCIATES, INC. Wm Bruce Bennett Wm. Bruce Bennett, RS, Senior Reserve Analyst

136 Brambleton Recreation Reserve Condition Assessment - Page D1 July 30, 201 and revised September 20, 201 CONDITION ASSESSMENT General Comments. Miller Dodson Associates conducted a Reserve Study at Brambleton in June and July, 201. The property is in good condition when compared to other recent and in-progress communities. A review of the Replacement Reserve Inventories will show that we are anticipating most of the components achieving their normal economic lives. Scope. This Brambleton Recreation Reserve - Replacement Reserve Study has been prepared in conjunction with three other Studies (General, Town Home, & Common Drive) that in combination, address the common elements installed throughout the community. The Brambleton General Reserve - Replacement Reserve Study contains components that are the responsibility of the entire community and when the same components exist in the General Reserve and one of the other Reserves, we have consolidated comments in the Brambleton General Reserve - Condition Assessment. This Brambleton Recreation Reserve - Replacement Reserve Study includes a very limited group of components that are specific to the swimming pools. The swimming pools are located at the Community Center, Beacon Crest Clubroom and Pool, Brambleton Corner Clubhouse and Pool and at Stratford Landing Pool. Brambleton Corner was competed in 2014 and Stratford is now in its first season. Supplemental Photographs. Supplemental photographs of the components included in the Brambleton Recreation Reserve - Replacement Reserve Inventory have been consolidated in the Brambleton General Reserve - Supplemental Photographs. Site plans and drawings. The comments on the site plans and drawings made in the Brambleton General Reserve - Condition Assessment are appropriate to, but not duplicated in this Brambleton Recreation Reserve - Condition Assessment. Comments on Site Evaluation. Notes in the Brambleton Recreation Reserve - Replacement Reserve Inventory and Brambleton General Reserve - Supplemental Photographs contain comments on specific components including discussion of defects we observe during our site evaluation. The following comments are not intended to restate these observations but address one of the following specific issues regarding the larger, more significant components at the community: Components that require specific comments because of the manner in which they have been treated in the Replacement Reserve Analysis. Comments on components that could not be properly addressed in the General Reserve Replacement Reserve Inventory or Supplemental Photographs. The comments on the following pages reflect the conditions found at the time of our site evaluation. Locker Rooms. Each of the four swimming pools is served by locker rooms. The recently completed facilities are in good condition and have been constructed using attractive and durable materials. We have assumed that every five years, the Association will conduct a minor renovation of the facilities to insure that they remain in excellent condition and that these regular renovations will allow the facilities to be kept in service for 30 years when a major renovation is scheduled.

137 Brambleton Recreation Reserve Condition Assessment - Page D2 July 30, 201 and revised September 20, 201 Pool Structures. We observed no defects in the pool structures. We have assigned a remaining economic life to each of the structures based solely on age and based on a 60 year economic life, all of the structures remain outside of the 40 year window evaluated by the Study. Therefore, no funds are being collected at the present time to fund pool structure replacement. Pool finishes. We have assigned a remaining economic life to the pool finish, tile and coping based on our visual evaluation and the feel of the surface of the white coat. Cleaning with aggressive chemicals could significantly reduce the economic life and treatment could significantly extend the economic life. The condition should be evaluated annually to insure that timely replacement can be made. Pool covers. We saw no pool covers and have assumed they are stored off site. In a month, when the pools are closed for the season and covered, the covers should be evaluated to identify their remaining economic life. Pool filters, motors, pumps, heaters, etc. Assigning remaining economic life to this equipment is very general in nature. When identical pumps, installed side by side, one pump can last for 20 years while the other pump fails immediately. Our focus is on the basic intent which is to assign an economic life that will accumulate an appropriate funding to make replacements that can reasonably be forecast. Note that this equipment is typically only replaced at failure. Pool equipment rooms and pool electric renovations. We have included projects to renovate the pool electric and pool equipment rooms every 20 years. In the longer term, the chemicals used in the pool equipment rooms damages all electrical components and unfortunately, at all four facilities, a significant amount of electrical switch gear is installed in the equipment rooms.

138 Brambleton Recreation Reserve Pool furniture. The pool furniture at Brambleton is excellent. We have included projects for periodic replacement. Condition Assessment - Page D3 July 30, 201 and revised September 20, 201 Pool decks and skimmers. All four of the pool decks are currently in good condition. Over time, defects wil appear and we have included three small deck replacement projects to occur in advance of a major deck replacement at the approximated 30 year point in the life of the pool. The major replacement project is assumed to include the replacement of all of the plumbing and wiring located under to pool deck. Skimmer replacements are assumed to be a part of each of these projects. Outdoor fireplaces. Two fireplaces are installed on the pool deck at Beacon Crest. The are being damaged, likely as a consequence of water penetration through the masonry above. We saw no evidence of the through wall flashing that would be necessary to prevent water penetration nor is there a drip cut into the bottom edge of the precast cap. We recommend that these masonry defects be corrected, leaks identified, and fireplaces restored, before a more comprehensive project becomes necessary. This Condition Assessment is based upon our visual survey of the property. The sole purpose of the visual survey was an evaluation of the common elements of the property to ascertain the remaining useful life and the replacement costs of these common elements. Our evaluation assumed that all components met building code requirements in force at the time of construction. Our visual survey was conducted with care by experienced persons, but no warranty or guarantee is expressed or implied. End of Condition Assessment

139 Replacement Reserve Analysis - Page A1 Recreation Reserve September 20, RECREATI16 EXECUTIVE SUMMARY The Recreation Reserve Replacement Reserve Analysis uses the Cash Flow Method (CFM) to calculate Replacement Reserve funding for the periodic replacement of the 178 Projected Replacements identified in the Replacement Reserve Inventory. $129,00 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR THE STUDY YEAR, 2016 We recommend the Association adopt a Replacement Reserve Funding Plan based on the annual funding recommendation above. Inflation adjusted funding for subsequent years is shown on Page A. Recreation Reserve reports a Starting Balance of $300,000 and Annual Funding totaling $60,000. Current funding is inadequate to fund the $,040,428 of Projected Replacements scheduled in the Replacement Reserve Inventory over the 40-year Study Period. See Page A3 for a more detailed evaluation. #1 - Cumulative Replacement Reserve Funding and Expenditures Graph $6,000,000 Cash Flow Method - Cumulative Receipts Current Funding - Cumulative Receipts Projected Replacements - Cumulative Expenditures,233,98 $,000,000 $,040,428 $4,000,000 $3,000,000 2,700,000 $2,000,000 $1,000,000 $ The Current Funding Objective as calculated by the Component Method (Fully Funded) is $66,308 making the reserve account 4.7% funded. See the Appendix for more information on this method.

140 Replacement Reserve Analysis - Page A2 Recreation Reserve September 20, RECREATI16 REPLACEMENT RESERVE ANALYSIS - GENERAL INFORMATION The Recreation Reserve Replacement Reserve Analysis calculations of recommended funding of Replacement Reserves by the Cash Flow Method and the evaluation of the Current Funding are based upon the same Study Year, Study Period, Beginning Balance, Replacement Reserve Inventory and Level of Service STUDY YEAR The Association reports that their accounting year begins on January 1, and the Study Year, the first year evaluated by the Replacement Reserve Analysis, begins on January 1, Years STUDY PERIOD The Replacement Reserve Analysis evaluates the funding of Replacement Reserves over a 40-year Study Period. $300,000 STARTING BALANCE The Association reports Replacement Reserves on Deposit totaling $300,000 at the start of the Study Year. Level Two LEVEL OF SERVICE The Replacement Reserve Inventory has been developed in compliance with the National Reserve Study Standards for a Level Two Study, as defined by the Community Associations Institute (CAI). $,040,428 REPLACEMENT RESERVE INVENTORY - PROJECTED REPLACEMENTS The Recreation Reserve Replacement Reserve Inventory identifies 178 items that will require periodic replacement, that are to be funded from Replacement Reserves. We estimate the cost of these replacements will be $,040,428 over the 40-year Study Period. The Projected Replacements are divided into 18 major categories starting on Page B3. Pages B1-B2 provide detailed information on the Replacement Reserve Inventory. #2 - Annual Expenditures for Projected Replacements Graph This graph shows annual expenditures for Projected Replacements over the 40-year Study Period. The red line shows the average annual expenditure of $126,011. Section C provides a year by year Calender of these expenditures. $600,000 $20,196 $00,000 $400,000 $300,000 $200,000 $100,000 $0 $126, year Average $2,860 $32,723 $48,384 $7,440 $28,36 $184,301 $162,089 $139,030 $0,998 $37,397 $67,66 $14,236 $200,044 $109,473 $182,091 $9,991 $17,11 $230,906 $164,214 $27,3 $263,991 $23,11 $4,43 $83,060 $48,633 $13,17 $10,641 $342,370 $313,426 $129,901 $92,237 $88,798 $11,269 $76,299 $2,798 $6,7 $102,142 $261,134 $11,

141 Replacement Reserve Analysis - Page A3 Recreation Reserve September 20, RECREATI16 UPDATING UPDATING OF THE FUNDING PLAN The Association has a responsibility to review the Funding Plan annually. The review should include a comparison and evaluation of actual reserve funding with recommended levels shown on Page A4 and A. The Projected Replacements listed on Page C2 should be compared with any replacements accomplished and funded from Replacement Reserves. Discrepancies should be evaluated and if necessary, the Reserve Study should be updated or a new study commissioned. We recommend annual increases in replacement reserve funding to account for the impact of inflation. Inflation Adjusted Funding is discussed on Page A. UPDATING OF THE REPLACEMENT RESERVE STUDY At a minimum, the Replacement Reserve Study should be professionally updated every three to five years or after completion of a major replacement project. Updating should also be considered if during the annual review of the Funding Plan, discrepancies are noted between projected and actual reserve funding or replacement costs. Updating may also be necessary if there is a meaningful discrepancy between the actual inflation rate and the inflation rate used for the Inflation Adjusted Funding of Replacement Reserves on Page A. ANNUAL EXPENDITURES AND CURRENT FUNDING The annual expenditures that comprise the $,040,428 of Projected Expenditures over the 40-year Study Period and the impact of the Association continuing to fund Replacement Reserves at the current level are detailed in Table 3. #3 - Table of Annual Expenditures and Current Funding Data - Years 1 through 40 Year Starting Balance $300,000 Projected Replacements ($2,860) ($32,723) ($48,384) ($7,440) ($28,36) ($184,301) ($162,089) ($139,030) ($0,998) ($37,397) Annual Deposit $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 End of Year Balance $37,140 $384,417 $396,033 $380,93 $412,228 $287,928 $18,839 $106,808 $11,811 $138,414 Cumulative Expenditures ($2,860) ($3,83) ($83,967) ($19,407) ($187,772) ($372,072) ($34,161) ($673,192) ($724,189) ($761,86) Cumulative Receipts $360,000 $420,000 $480,000 $40,000 $600,000 $660,000 $720,000 $780,000 $840,000 $900,000 Year Projected Replacements ($67,66) ($14,236) ($200,044) ($109,473) ($182,091) ($9,991) ($17,11) ($230,906) ($164,214) ($27,3) Annual Deposit $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 End of Year Balance $130,848 $176,612 $36,69 ($12,904) ($134,99) ($134,987) ($92,102) ($263,008) ($367,222) ($82,78) Cumulative Expenditures ($829,12) ($843,388) ($1,043,431) ($1,12,904) ($1,334,99) ($1,394,987) ($1,412,102) ($1,643,008) ($1,807,222) ($2,082,78) Cumulative Receipts $960,000 $1,020,000 $1,080,000 $1,140,000 $1,200,000 $1,260,000 $1,320,000 $1,380,000 $1,440,000 $1,00,000 Year Projected Replacements ($263,991) ($23,11) ($20,196) ($4,43) ($83,060) ($48,633) ($13,17) ($10,641) ($342,370) ($313,426) Annual Deposit $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 End of Year Balance ($786,69) ($749,683) ($1,209,879) ($1,204,422) ($1,227,482) ($1,216,114) ($1,309,631) ($1,3,271) ($1,637,641) ($1,891,068) Cumulative Expenditures ($2,346,69) ($2,369,683) ($2,889,879) ($2,944,422) ($3,027,482) ($3,076,114) ($3,229,631) ($3,33,271) ($3,677,641) ($3,991,068) Cumulative Receipts $1,60,000 $1,620,000 $1,680,000 $1,740,000 $1,800,000 $1,860,000 $1,920,000 $1,980,000 $2,040,000 $2,100,000 Year Projected Replacements ($129,901) ($92,237) ($88,798) ($11,269) ($76,299) ($2,798) ($6,7) ($102,142) ($261,134) ($11,029) Annual Deposit $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 $60,000 End of Year Balance ($1,960,968) ($1,993,20) ($2,022,003) ($2,113,272) ($2,129,71) ($2,09,369) ($2,042,124) ($2,084,26) ($2,28,399) ($2,340,428) Cumulative Expenditures ($4,120,968) ($4,213,20) ($4,302,003) ($4,43,272) ($4,29,71) ($4,,369) ($4,62,124) ($4,664,26) ($4,92,399) ($,040,428) Cumulative Receipts $2,160,000 $2,220,000 $2,280,000 $2,340,000 $2,400,000 $2,460,000 $2,20,000 $2,80,000 $2,640,000 $2,700,000 EVALUATION OF CURRENT FUNDING The evaluation of Current Funding (Starting Balance of $300,000 & annual funding of $60,000), is done in today's dollars with no adjustments for inflation or interest earned on Replacement Reserves. The evaluation assumes Replacement Reserves will only be used for the 178 Projected Replacements identified in the Replacement Reserve Inventory and that the Association will continue Annual Funding of $60,000 throughout the 40-year Study Period. Annual Funding of $60,000 is approximately 46 percent of the $129,00 recommended Annual Funding calculated by the Cash Flow Method for 2016, the Study Year. Evaluation of the 178 Projected Replacements calculates an average annual expenditure over the next 40 years of $126,011. Annual funding of $60,000 is 48 percent of the average annual expenditure. Our calculations identify funding shortfalls in 27 years of the Study Period with the initial shortfall in The largest shortfall, $-2,340,428, occurs in 204. All shortfalls can be seen and evaluated in Table 3 above. In summary, Current Funding as reported by the Association and shown above, does not provide adequate funding for the $,040,428 of Projected Replacements scheduled in the Replacement Reserve Inventory over the Study Period.

142 Replacement Reserve Analysis - Page A4 Recreation Reserve September 20, RECREATI16 CASH FLOW METHOD FUNDING $129,00 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR 2016 Recommended Replacement Reserve Funding has been calculated using the Cash Flow Method (also called the Straight Line or Threshold Method). This method calculates a constant annual funding between peaks in cumulative expenditures, while maintaining a Minimum Balance (threshold) in the Peak Years. Peak Years. The First Peak Year occurs in 2046 with Replacement Reserves on Deposit dropping to the Minimum Balance after the completion of $4,120,968 of replacements from 2016 to Recommended funding declines from $129,00 in 2046 to $110,768 in Peak Years are identified in Chart 4 and Table. Minimum Balance. The calculations assume a Minimum Balance of $193,30 in Replacement Reserves. This is approx. 18 months of average expenditures based on the $126,011, 40-year average annual expenditure. Cash Flow Method Study Period. Cash Flow Method calculates funding for $,040,428 of expenditures over the 40-year Study Period. It does not include funding for any projects beyond 20 and in 20, the end of year balance will always be the Minimum Balance. #4 - Cash Flow Method - Graph of Cumulative Receipts and Expenditures - Years 1 through 40 $6,000,000 $,000,000 $4,000,000 Cash Flow Method - Cumulative Receipts Cash Flow Method - Year End Balance Cumulative Expenditures Peak Year $,040,428 $,233,98 $3,000,000 $2,000,000 $1,000,000 $0 $193, # - Cash Flow Method - Table of Receipts & Expenditures - Years 1 through 40 Year Starting Balance $300,000 Projected Replacements ($2,860) ($32,723) ($48,384) ($7,440) ($28,36) ($184,301) ($162,089) ($139,030) ($0,998) ($37,397) Annual Deposit $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 End of Year Balance $426,640 $23,417 $604,33 $68,93 $79,728 $704,927 $672,339 $662,808 $741,310 $833,413 Cumulative Expenditures $2,860 $3,83 $83,967 $19,407 $187,772 $372,072 $34,161 $673,192 $724,189 $761,86 Cumulative Receipts $429,00 $9,000 $688,00 $818,000 $947,00 $1,077,000 $1,206,00 $1,336,000 $1,46,00 $1,94,999 Year Projected Replacements ($67,66) ($14,236) ($200,044) ($109,473) ($182,091) ($9,991) ($17,11) ($230,906) ($164,214) ($27,3) Annual Deposit $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 End of Year Balance $89,347 $1,010,612 $940,068 $960,09 $907,04 $977,012 $1,089,397 $987,991 $93,277 $807,421 Cumulative Expenditures ($829,12) ($843,388) ($1,043,431) ($1,12,904) ($1,334,99) ($1,394,987) ($1,412,102) ($1,643,008) ($1,807,222) ($2,082,78) Cumulative Receipts $1,724,499 $1,83,999 $1,983,499 $2,112,999 $2,242,499 $2,371,999 $2,01,499 $2,630,999 $2,760,499 $2,889,999 Year Projected Replacements ($263,991) ($23,11) ($20,196) ($4,43) ($83,060) ($48,633) ($13,17) ($10,641) ($342,370) ($313,426) Annual Deposit $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 $129,00 End of Year Balance $672,930 $779,316 $388,620 $463,76 $10,017 $90,884 $66,868 $90,727 $377,87 $193,931 Cumulative Expenditures ($2,346,69) ($2,369,683) ($2,889,879) ($2,944,422) ($3,027,482) ($3,076,114) ($3,229,631) ($3,33,271) ($3,677,641) ($3,991,068) Cumulative Receipts $3,019,499 $3,148,999 $3,278,499 $3,407,999 $3,37,499 $3,666,999 $3,796,499 $3,92,999 $4,0,498 $4,184,998 Year 1st Peak nd Peak rd Peak - 20 Projected Replacements ($129,901) ($92,237) ($88,798) ($11,269) ($76,299) ($2,798) ($6,7) ($102,142) ($261,134) ($11,029) Annual Deposit $129,00 $110,768 $110,768 $110,768 $97,89 $97,89 $97,89 $97,89 $97,89 $97,89 End of Year Balance $193,30 $212,061 $234,032 $193,30 $21,090 $287,12 $378,26 $373,974 $210,700 $193,30 Cumulative Expenditures ($4,120,968) ($4,213,20) ($4,302,003) ($4,43,272) ($4,29,71) ($4,,369) ($4,62,124) ($4,664,26) ($4,92,399) ($,040,428) Cumulative Receipts $4,314,498 $4,42,266 $4,36,034 $4,646,802 $4,744,661 $4,842,21 $4,940,380 $,038,239 $,136,099 $,233,98

143 Replacement Reserve Analysis - Page A Recreation Reserve September 20, RECREATI16 INFLATION ADJUSTED FUNDING The Cash Flow Method calculations on Page A4 have been done in today's dollars with no adjustment for inflation. At Miller + Dodson, we belive that long-term inflation forecasting is effective at demonstrating the power of compounding, not at calculating appropriate funding levels for Replacement Reserves. We have developed this proprietary model to estimate the short-term impact of inflation on Replacement Reserve funding. $129, CASH FLOW METHOD RECOMMENDED FUNDING #6 - Inflation Adjusted Funding The 2016 Study Year calculations have been made using current replacement costs $200,000 (see Page B2), modified by the Analyst for any project specific conditions. $13, INFLATION ADJUSTED FUNDING A new analysis calculates 2017 funding based on three assumptions; Replacement Reserves on Deposit totaling $426,640 on January 1, All 2016 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $2,860. Construction Cost Inflation of 4.0 percent in The $13,97 inflation adjusted funding in 2017 is a.00 percent increase over the non-inflation adjusted 2017 funding of $129,00. $10,000 $129,00 $129,00 $129,00 $13,97 $129,00 $142,943 $129,00 $10,406 $142, INFLATION ADJUSTED FUNDING A new analysis calculates 2018 funding based on three assumptions; Replacement Reserves on Deposit totaling $28,419 on January 1, All 2017 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $34,196. Construction Cost Inflation of 4.0 percent in The $142,943 inflation adjusted funding in 2018 is a percent increase over the non-inflation adjusted 2018 funding of $129,00. $100,000 $0,000 $10, INFLATION ADJUSTED FUNDING A new analysis calculates 2019 funding based on three assumptions; Replacement Reserves on Deposit totaling $618,26 on January 1, All 2018 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $2,836. Construction Cost Inflation of 4.0 percent in The $10,406 inflation adjusted funding in 2019 is a percent increase over the non-inflation adjusted funding of $129, YEAR FIVE & BEYOND The inflation adjusted funding calculations outlined above are not intended to be a substitute for periodic evaluation of common elements by an experienced Reserve Analyst. Industry Standards, lender requirements, and many state and local statutes require a Replacement Reserve Study be professionally updated every 3 to years. INFLATION ADJUSTMENT Prior to approving a budget based upon the 2017, 2018 and 2019 inflation adjusted funding calculations above, the 4.0 percent base rate of inflation used in our calculations should be compared to rates published by the Bureau of Labor Statistics. If there is a significant discrepancy (over 1 percent), contact Miller Dodson + Associates prior to using the Inflation Adjusted Funding. INTEREST ON RESERVES The recommended funding calculations do not account for interest earned on Replacement Reserves. In 2016, based on a 1.00 percent interest rate, we estimate the Association may earn $3,633 on an average balance of $363,320, $4,77 on an average balance of $477,30 in 2017, and $,73 on $73,473 in The Association may elect to attribute 100 percent of the earned interest to Reserves, resulting in a reduction in the 2016 minimum funding from $129,00 to $12,867 (a 2.81 percent reduction), $13,97 to $131,200 in 2017 (a 3.1 percent reduction), and $142,943 to $137,208 in 2018 (a 4.01 percent reduction). $0 Cash Flow Method Funding Inflation Adjusted Funding

144 Replacement Reserve Analysis - Page A6 Recreation Reserve September 20, RECREATI16 REPLACEMENT RESERVE STUDY - SUPPLEMENTAL COMMENTS The Cash Flow Method calculates the minimum annual funding necessary to prevent Replacement Reserves from dropping below the Minimum Balance. Failure to fund at least the recommended levels may result in funding not being available for the Projected Replacements listed in the Replacement Reserve Inventory. The accuracy of the Replacement Reserve Analysis is dependent upon expenditures from Replacement Reserves being made ONLY for the 178 Projected Replacements specifically listed in the Replacement Reserve Inventory. The inclusion/exclusion of items from the Replacement Reserve Inventory is discussed on Page B1. The Association reports Replacement Reserves on January 1, 2016 will total $300,000 and that they are currently contributing $,000 per month to Recreation Reserves. The final revision of the previous Replacement Reserve Study was dated September 12, 2011 and had a 2012 Study Year. September 20, 201. Various revisions to the July 30, 201 Study, as noted on the Inventory pages.

145 Replacement Reserve Inventory - Page B1 Recreation Reserve September 20, RECREATI16 REPLACEMENT RESERVE INVENTORY GENERAL INFORMATION Recreation Reserve - Replacement Reserve Inventory identifies 192 items. Two types of items are identified, Projected Replacements and Excluded Items: PROJECTED REPLACEMENTS. 178 of the items are Projected Replacements and the periodic replacements of these items are scheduled for funding from Replacement Reserves. The Projected Replacements have an estimated one-time replacement cost of $3,870,604. Replacements totaling $,040,428 are scheduled in the Replacement Reserve Inventory over the 40-year Study Period. Projected Replacements are the replacement of commonly-owned physical assets that require periodic replacement and whose replacement is to be funded from Replacement Reserves. EXCLUDED ITEMS. 14 of the items are Excluded Items, and expenditures for these items are NOT scheduled for funding from Replacement Reserves. The accuracy of the calculations made in the Replacement Reserve Analysis is dependent on expenditures NOT being made for Excluded Items. The Excluded Items are listed in the Replacement Reserve Inventory to identify specific items and categories of items that are not to be funded from Replacement Reserves. There are multiple categories of items that are typically excluded from funding by Replacement Reserves, including but not limited to: Tax Code. The United States Tax Code grants very favorable tax status to Replacement Reserves, conditioned on expenditures being made within certain guidelines. These guidelines typically exclude maintenance activities, minor repairs and capital improvements. Value. Items with a replacement cost of less that $1,000 and/or a normal economic life of less than 3 years are typically excluded from funding from Replacement Reserves. This exclusion should reflect Association policy on the administration of Replacement Reserves. If the Association has selected an alternative level, it will be noted in the Replacement Reserve Inventory - General Comments on Page B2. Long-lived Items. Items that when properly maintained, can be assumed to have a life equal to the property as a whole, are typically excluded from the Replacement Reserve Inventory. Unit improvements. Items owned by a single unit and where the items serve a single unit are generally assumed to be the responsibility of that unit, not the Association. Other non-common improvements. Items owned by the local government, public and private utility companies, the United States Postal Service, Master Associations, state and local highway authorities, etc., may be installed on property that is owned by the Association. These types of items are generally not the responsibility of the Association and are excluded from the Replacement Reserve Inventory. The rationale for the exclusion of an item from funding by Replacement Reserves is discussed in more detail in the 'Comments' sections of the Section B - Replacement Reserve Inventory. CATEGORIES. The 192 items included in the Recreation Reserve Replacement Reserve Inventory are divided into 18 major categories. Each category is printed on a separate page, Pages B3 to B20. LEVEL OF SERVICE. This Replacement Reserve Inventory has been developed in compliance with the standards established for a Level Two - Update (with site visit and on-site review), as defined by the National Reserve Study Standards, established in 1998 by Community Associations Institute, which states: Level II Studies are based entirely on the component inventory from a prior study. This information is adjusted to reflect changes to the inventory that are provided by the Association, and the quantities are adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings that are made available to us. The condition of all components is ascertained from a site visit and the visual inspection of each component by the analyst. The Remaining Economic Life and replacement cost of components are provided based in part on these observations. The fund status and Funding Plan are derived from analysis of this data.

146 Replacement Reserve Inventory - Page B2 Recreation Reserve September 20, RECREATI16 REPLACEMENT RESERVE INVENTORY - GENERAL INFORMATION (cont'd) INVENTORY DATA. Each of the 178 Projected Replacements listed in the Replacement Reserve Inventory includes the following data: Item Number. The Item Number is assigned sequentially and is intended for identification purposes only. Item Description. We have identified each item included in the Inventory. Additional information may be included in the Comments section at the bottom of each page of the Inventory. Units. We have used standard abbreviations to identify the number of units including SF-square feet, LF-lineal feet, SY-square yard, LS-lump sum, EA-each, and PR-pair. Non-standard abbreviations are noted in the Comments section at the bottom of the page. Number of Units. The methods used to develop the quantities are discussed in "Level of Service" above. Unit Replacement Cost. We use four sources to develop the unit cost data shown in the Inventory; actual replacement cost data provided by the client, information provided by local contractors and suppliers, industry standard estimating manuals, and a cost database we have developed based upon our detailed interviews with contractors and service providers who are specialists in their respective lines of work. Normal Economic Life (Yrs). The number of years that a new and properly installed item should be expected to remain in service. Remaining Economic Life (Yrs). The estimated number of years before an item will need to be replaced. In "normal" conditions, this could be calculated by subtracting the age of the item from the Normal Economic Life of the item, but only rarely do physical assets age "normally". Some items may have longer or shorter lives depending on many factors such as environment, initial quality of the item, maintenance, etc. Total Replacement Cost. This is calculated by multiplying the Unit Replacement Cost by the Number of Units. Each of the 14 Excluded Items includes the Item Description, Units, and Number of Units. Many of the Excluded Items are listed as a 'Lump Sum' with a quantity of 1. For the Excluded Items, this indicates that all of the items identified by the 'Item Description' are excluded from funding by Replacement Reserves. REVIEW OF EXPENDITURES. This Replacement Reserve Study should be reviewed by an accounting professional representing the Association prior to implementation. PARTIAL FUNDING. Items may have been included in the Replacement Reserve Inventory at less than 100 percent of their full quantity and/or replacement cost. This is done on items that will never be replaced in their entirety, but which may require periodic replacements over an extended period of time. The assumptions that provide the basis for any partial funding are noted in the Comments section. REMAINING ECONOMIC LIFE GREATER THAN 40 YEARS. The calculations do not include funding for initial replacements beyond 40 years. These replacements are included in this Study for tracking and evaluation. They should be included for funding in future Studies, when they enter the 40-year window.

147 Replacement Reserve Inventory - Page B3 Recreation Reserve September 20, RECREATI16 COMMUNITY CENTER (CC) LOCKER ROOMS & POOLS PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 1 CC Locker Room renovation - major ls 1 $90, $90,000 2 CC Locker Room renovation - minor ls 1 $13, $13,00 3 CC Main pool structure sf,297 $ $381,384 4 CC Main pool whitecoat sf,297 $ $37,079 CC Main pool waterline tile ft 424 $ $6,360 6 CC Main pool coping ft 424 $ $21,200 7 CC Main pool cover sf,297 $ $11,918 8 CC Wading pool structure sf 10 $ $10,800 9 CC Wading pool whitecoat sf 10 $ $1,00 10 CC Wading pool waterline tile ft 0 $ $70 11 CC Wading pool coping ft 0 $ $2,00 12 CC Wading pool cover sf 10 $ $ CC Spa pool structure sf 100 $ $7, CC Spa pool whitecoat sf 100 $ $700 1 CC Spa pool waterline tile ft 40 $ $ CC Spa pool coping ft 40 $ $2, CC Spa pool cover sf 100 $ $22 COMMUNITY CENTER (CC) LOCKER ROOMS & POOLS - Replacement Costs - Subtotal $87,604 COMMUNITY CENTER (CC) LOCKER ROOMS & POOLS COMMENTS Locker Room renovation. We have consolidated the Locker Room and Guard Room fixtures, furnishings & equipment into these line items and assumed that a major (comprehensive) renovation will be conducted every 30 years and minor renovations every years. Pool cover. The pool cover was not evaluated and we have assumed it is being replaced with the whitecoat. Inspection stickers indicated that the facility was completed in 2003.

148 Replacement Reserve Inventory - Page B4 Recreation Reserve September 20, RECREATI16 COMMUNITY CENTER (CC) POOL EQUIPMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 18 CC Main pool filter system ea 4 $2, $9, CC Main pool pump ea 1 $4, $4, CC Main pool motor 7. hp ea 1 $3, $3, CC Wading pool filter system ea 1 $2, $2, CC Wading pool pump & motor 1. hp ea 1 $1, $1, CC Spa filter system ea 1 $2, $2, CC Spa pump & motor 3 hp ea 1 $3, $3,000 2 CC Spa jet pump & motor hp ea 1 $4, $4,00 26 CC Spa heater ea 1 $, $, CC Pool electric - renovation ls 1 $, $, CC Pool equipment room - renovation ls 1 $12, $12,000 COMMUNITY CENTER (CC) POOL EQUIPMENT - Replacement Costs - Subtotal $2,100 COMMUNITY CENTER (CC) POOL EQUIPMENT COMMENTS Inspection stickers indicated that the facility was completed in 2003.

149 Replacement Reserve Inventory - Page B Recreation Reserve September 20, RECREATI16 COMMUNITY CENTER (CC) POOL DECK PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 29 CC Concrete deck & skimmers (10%) sf 1,017 $ $12, CC Concrete deck & skimmers (10%) sf 1,017 $ $12, CC Concrete deck & skimmers (10%) sf 1,017 $ $12, CC Concrete deck & skimmers (100%) sf 10,847 $ $162,70 33 CC Aluminum fence, wading pool ft 70 $ $3,00 34 CC Aluminum fence, pool perimeter ft 22 $ $31,320 3 CC Pool deck furniture (2%) sf 10,847 $ $8,13 36 CC Pool deck furniture (2%) sf 10,847 $ $8,13 37 CC Pool deck furniture (2%) sf 10,847 $ $8,13 38 CC Pool deck furniture (2%) sf 10,847 $ $8,13 39 CC Guard stands, ladders, railings, etc.swimmls 1 $20, $20, CC Wood arbors, pool deck sf 720 $ $14,400 COMMUNITY CENTER (CC) POOL DECK - Replacement Costs - Subtotal $302,96 COMMUNITY CENTER (CC) POOL DECK COMMENTS Concrete deck and skimmers. We have assumed that the Concrete deck and skimmers (100%) project will include a comprehensive replacement of the plumbing & electric installed beneath the pool deck as well as all skimmers. Other deck projects are to include plumbing, electric, and skimmers as necessary.

150 Replacement Reserve Inventory - Page B6 Recreation Reserve September 20, RECREATI16 BEACON CREST (BEA) LOCKER ROOMS & POOLS PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 41 BEA Locker Room renovation - major ls 1 $7, $7, BEA Locker Room renovation - minor ls 1 $11, $11,20 43 BEA Main pool structure sf 3,342 $ $240, BEA Main pool whitecoat sf 3,342 $ $23,394 4 BEA Main pool waterline tile ft 240 $ $3, BEA Main pool coping ft 240 $ $12, BEA Main pool cover sf 3,342 $ $7,20 48 BEA Wading pool structure sf 293 $ $21, BEA Wading pool whitecoat sf 293 $ $2,01 0 BEA Wading pool waterline tile ft 6 $ $97 1 BEA Wading pool coping ft 6 $ $3,20 2 BEA Wading pool cover sf 293 $ $69 3 BEA Spa pool structure sf 10 $ $7,60 4 BEA Spa pool whitecoat sf 10 $ $73 BEA Spa pool waterline tile ft 42 $ $630 6 BEA Spa pool coping ft 42 $ $2,100 7 BEA Spa pool cover sf 10 $ $236 BEACON CREST (BEA) LOCKER ROOMS & POOLS - Replacement Costs - Subtotal $412,680 BEACON CREST (BEA) LOCKER ROOMS & POOLS COMMENTS Locker Room renovation. We have consolidated the Locker Room and Guard Room fixtures, furnishings & equipment into these line items and assumed that a major (comprehensive) renovation will be conducted every 30 years and minor renovations every years. Pool cover. The pool cover was not evaluated and we have assumed it is being replaced with the whitecoat.

151 Replacement Reserve Inventory - Page B7 Recreation Reserve September 20, RECREATI16 BEACON CREST (BEA) POOL EQUIPMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 8 BEA Main pool filter system ls 1 $2, $2,400 9 BEA Main pool pump ea 1 $4, $4, BEA Main pool motor 7. hp ea 1 $3, $3, BEA Main pool heater (exterior) ea 1 $3, $3,00 62 BEA Wading pool filter system ls 1 $2, $2, BEA Wading pool pump & motor 1. hp ea 1 $1, $1, BEA Spa filter system ls 1 $2, $2,000 6 BEA Spa pump & motor 1. hp ea 1 $3, $3, BEA Spa jet pump & motor hp ea 1 $4, $4,00 67 BEA Spa heater ea 1 $2, $2, BEA Pool electric - renovation ls 1 $6, $6, BEA Pool equipment room - renovation ls 1 $12, $12,000 BEACON CREST (BEA) POOL EQUIPMENT - Replacement Costs - Subtotal $46,400 BEACON CREST (BEA) POOL EQUIPMENT COMMENTS Alternative filtration systems should be considered. We have assumed the filters will be replaced in conjunction with a project to renovate the electrical equipment installed in the pool equipment room. Inspection stickers indicated that the facility was completed in 2003.

152 Replacement Reserve Inventory - Page B8 Recreation Reserve September 20, RECREATI16 BEACON CREST (BEA) POOL DECK PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 70 BEA Concrete deck & skimmers (10%) sf 1,197 $ $14, BEA Concrete deck & skimmers (10%) sf 1,197 $ $14, BEA Concrete deck & skimmers (10%) sf 1,197 $ $14, BEA Concrete deck & skimmers (100%) sf 11,973 $ $179,9 74 BEA Aluminum fence, wading pool ft 86 $ $4,300 7 BEA Aluminum fence, pool perimeter ft 280 $ $16, BEA Pool deck furniture (2%) sf 11,973 $ $8, BEA Pool deck furniture (2%) sf 11,973 $ $8, BEA Pool deck furniture (2%) sf 11,973 $ $8, BEA Pool deck furniture (2%) sf 11,973 $ $8, BEA Guard stands, ladders, railings, etc.swimls 1 $20, $20, BEA Tuckpoint stone perimeter wall ls 1 $3, $3, BEA Gas fireplace ea 2 $, $10, BEA Gas grille & cooking station ea 1 $4, $4,00 BEACON CREST (BEA) POOL DECK - Replacement Costs - Subtotal $319,013 BEACON CREST (BEA) POOL DECK COMMENTS Concrete deck and skimmers. We have assumed that the Concrete deck and skimmers (100%) project will include a comprehensive replacement of the plumbing & electric installed beneath the pool deck as well as all skimmers. Other deck projects are to include plumbing, electric, and skimmers as necessary.

153 Replacement Reserve Inventory - Page B9 Recreation Reserve September 20, RECREATI16 BEACON CREST (BEA) SITE IMPROVEMENTS PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 84 BEA Parking area - replace pavement sy 993 $ $1,392 8 BEA Asphalt pavement interim cycle 1 sy 993 $ $1, BEA Asphalt pavement interim cycle 2 sy 993 $ $1, BEA Asphalt pavement interim cycle 3 sy 993 $ $2, BEA Concrete curb & gutter (2%) ft 24 $ $ BEA Flatwork (2%) sf 47 $ $ BEA Parking bay marking ea 26 $ $ BEA Decorative post lights & poles ea $1, $9, BEA Decorative wall lights ea 10 $ $9,000 BEACON CREST (BEA) SITE IMPROVEMENTS - Replacement Costs - Subtotal $40,907 BEACON CREST (BEA) SITE IMPROVEMENTS COMMENTS Replace pavement. This line item includes the asphalt pavement in the adjacent parking area. The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Concrete components. We have scheduled concrete flatwork (sidewalks) and curb & gutter replacements to be accomplished in conjunction with the "replace pavement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates The components on this page were moved from the General Reserve to Recreation Reserve.

154 Replacement Reserve Inventory - Page B10 Recreation Reserve September 20, RECREATI16 BEACON CREST (BEA) EXTERIOR, INTERIOR & EQUIPMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 93 BEA Asphalt shingle roofing sf 4,900 $ $22,00 94 BEA Gutters & downspouts ft 47 $ $3,088 9 BEA Cementitious siding & trim sf 2,20 $ $2, BEA Tuckpoint masonry facade (10%) sf 220 $ none 2 $2, BEA Windows (39) sf 266 $ $21, BEA Exterior doors - storefront ea 2 $3, $6, BEA Exterior doors - metal ea 16 $ $9, BEA Exterior doors - glazed ea 3 $1, $4, BEA roll-up door ea 1 $1, $1, BEA Clubroom FF&E renovation sf 600 $ $12, BEA Clubroom FF&E minor renovation sf 600 $ $1, BEA Family restroom renovation ea 1 $9, $9, BEA HVAC system ea 2 $8, $16, BEA Water heater ea 1 $9, $9, BEA Security & monitoring ls 1 $, $,000 BEACON CREST (BEA) EXTERIOR, INTERIOR & EQUIPMENT - Replacement Costs - Subtotal $149,338 BEACON CREST (BEA) EXTERIOR, INTERIOR & EQUIPMENT COMMENTS Tuckpoint masonry facade. We have included the brick facade, stone facade, and the precast water table in this line item and assumed that 10 percent of the total area will be tuckpointed every 10 years. We have assumed the project will include the replacement of all sealants installed in the facade. Community Center renovation. We have consolidated the fixtures, furnishings & equipment (excluding those components specifically listed above) in the Clubroom in this line item and assumed that a major (comprehensive) renovation will be conducted every 20 years and minor renovations every years. Windows & doors. We have assumed a comprehensive replacement project all windows and doors. Balcony. The slate balcony over the locker rooms should be installed with proper design and drainage. Balcony railings. Each balcony project will require that the railing be reset. Membrane roof. The roof should be monitored and replaced at failure The components on this page were moved from the General Reserve to Recreation Reserve.

155 Replacement Reserve Inventory - Page B11 Recreation Reserve September 20, RECREATI16 BRAMBLETON CORNER (B) LOCKER ROOMS & POOLS & EQUIPMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 108 B Locker Room renovation - major ls 1 $7, $7, B Locker Room renovation - minor ls 1 $11, $11, B Main pool structure sf 6,96 $ $474, B Main pool whitecoat sf 6,96 $ $46, B Main pool waterline tile ft 413 $ $6, B Main pool coping ft 413 $ $20, B Main pool cover sf 6,96 $ $14, B Main pool filter system ea 4 $2, $11, B Main pool pump ea 1 $4, $4, B Main pool motor ea 1 $3, $3, B Main pool feature pump & motor ea 2 $1, $3, B Pool electric - renovation ls 1 $, $, B Pool equipment room - renovation ls 1 $12, $12,000 BRAMBLETON CORNER (B) LOCKER ROOMS & POOLS & EQUIPMENT - Replacement Costs - Subtotal $688,20 BRAMBLETON CORNER (B) LOCKER ROOMS & POOLS & EQUIPMENT COMMENTS Locker Room renovation. We have consolidated the Locker Room and Guard Room fixtures, furnishings & equipment into these line items and assumed that a major (comprehensive) renovation will be conducted every 30 years and minor renovations every years. Pool cover. The pool cover was not evaluated and we have assumed it is being replaced with the whitecoat. Inspection stickers indicated that the facility was completed in 2014.

156 Replacement Reserve Inventory - Page B12 Recreation Reserve September 20, RECREATI16 BRAMBLETON CORNER (B) POOL DECK PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 121 B Concrete deck & skimmers (10%) sf 1,000 $ $12, B Concrete deck & skimmers (10%) sf 1,000 $ $12, B Concrete deck & skimmers (10%) sf 1,000 $ $12, B Concrete deck & skimmers (100%) sf 9,997 $ $149,9 12 B Pool deck furniture (2%) sf 9,997 $ $7, B Pool deck furniture (2%) sf 9,997 $ $7, B Pool deck furniture (2%) sf 9,997 $ $7, B Pool deck furniture (2%) sf 9,997 $ $7, B Guard stands, ladders, railings, etc.swimmi ls 1 $20, $20, B Aluminum fence, pool perimeter ft 400 $ $24,000 BRAMBLETON CORNER (B) POOL DECK - Replacement Costs - Subtotal $261,43 BRAMBLETON CORNER (B) POOL DECK COMMENTS Concrete deck and skimmers. We have assumed that the Concrete deck and skimmers (100%) project will include a comprehensive replacement of the plumbing & electric installed beneath the pool deck as well as all skimmers. Other deck projects are to include plumbing, electric, and skimmers as necessary.

157 Replacement Reserve Inventory - Page B13 Recreation Reserve September 20, RECREATI16 STRATFORD (S) LOCKER ROOMS & POOLS & EQUIPMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 131 S Locker Room renovation - major ls 1 $7, $7, S Locker Room renovation - minor ls 1 $11, $11, S Main pool structure sf 3,789 $ $272, S Main pool whitecoat sf 3,789 $ $26,23 13 S Main pool waterline tile ft 324 $ $4, S Main pool coping ft 324 $ $16, S Main pool cover sf 3,789 $ $8,2 138 S Main pool filter system ea 4 $2, $11, S Main pool pump ea 1 $4, $4, S Main pool motor ea 1 $3, $3, S Main pool feature pump & motor ea 2 $1, $3, S Pool electric - renovation ls 1 $, $, S Pool equipment room - renovation ls 1 $12, $12,000 STRATFORD (S) LOCKER ROOMS & POOLS & EQUIPMENT - Replacement Costs - Subtotal $44,666 STRATFORD (S) LOCKER ROOMS & POOLS & EQUIPMENT COMMENTS Locker Room renovation. We have consolidated the Locker Room and Guard Room fixtures, furnishings & equipment into these line items and assumed that a major (comprehensive) renovation will be conducted every 30 years and minor renovations every years. Pool cover. The pool cover was not evaluated and we have assumed it is being replaced with the whitecoat. Inspection stickers indicated that the facility was completed in 201.

158 Replacement Reserve Inventory - Page B14 Recreation Reserve September 20, RECREATI16 STRATFORD (S) POOL DECK PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 144 S Concrete deck & skimmers (10%) sf 901 $ $11,28 14 S Concrete deck & skimmers (10%) sf 901 $ $11, S Concrete deck & skimmers (10%) sf 901 $ $11, S Concrete deck & skimmers (100%) sf 9,006 $ $13, S Pool deck furniture (2%) sf 9,006 $ $6,7 149 S Pool deck furniture (2%) sf 9,006 $ $6,7 10 S Pool deck furniture (2%) sf 9,006 $ $6,7 11 S Pool deck furniture (2%) sf 9,006 $ $6,7 12 S Guard stands, ladders, railings, etc.swimmi ls 1 $20, $20, S Aluminum fence, pool perimeter ft 40 $ $27, S Water slide ea 1 $20, $20,000 1 S In-pool features (brella, beach, etc) ea 3 $12, $36,000 STRATFORD (S) POOL DECK - Replacement Costs - Subtotal $298,881 STRATFORD (S) POOL DECK COMMENTS Concrete deck and skimmers. We have assumed that the Concrete deck and skimmers (100%) project will include a comprehensive replacement of the plumbing & electric installed beneath the pool deck as well as all skimmers. Other deck projects are to include plumbing, electric, and skimmers as necessary.

159 Replacement Reserve Inventory - Page B1 Recreation Reserve September 20, RECREATI16 STRATFORD (S) SITE IMPROVEMENTS PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 16 S Parking area - replace pavement sy 2,0 $ $39,27 17 S Asphalt pavement interim cycle 1 sy 2,0 $ $4,90 18 S Asphalt pavement interim cycle 2 sy 2,0 $ $, S Asphalt pavement interim cycle 3 sy 2,0 $ $, S Concrete flatwork and curb & gutter ls 1 $1, $1, S Parking bay marking ea 44 $ $ S Streetlight ea 3 $4, $12,600 STRATFORD (S) SITE IMPROVEMENTS - Replacement Costs - Subtotal $68,988 STRATFORD (S) SITE IMPROVEMENTS COMMENTS Replace pavement. This line item includes the asphalt pavement in the adjacent parking area. The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Concrete components. We have scheduled concrete flatwork (sidewalks) and curb & gutter replacements to be accomplished in conjunction with the "replace pavement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates The components on this page were moved from the General Reserve to Recreation Reserve.

160 Replacement Reserve Inventory - Page B16 Recreation Reserve September 20, RECREATI16 STRATFORD (S) EXTERIOR, INTERIOR & EQUIPMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 163 S Asphalt shingle roofing sf 1,600 $ $7, S Gutters & downspouts ft 18 $ $1, S Tuckpoint masonry facade (10%) sf 17 $ $2, S Exterior openings sf 144 $ $10, S HVAC system ea 2 $8, $16, S Water heater ea 1 $9, $9,000 STRATFORD (S) EXTERIOR, INTERIOR & EQUIPMENT - Replacement Costs - Subtotal $46,478 STRATFORD (S) EXTERIOR, INTERIOR & EQUIPMENT COMMENTS Tuckpoint masonry facade. We have included the brick facade, stone facade, and the precast water table in this line item and assumed that 10 percent of the total area will be tuckpointed every 10 years. We have assumed the project will include the replacement of all sealants installed in the facade. Stratford has no common areas other than those serving the swimming pool. We have included the fixtures, furnishings & equipment (excluding those components specifically listed above) in Recreation Reserve. Windows & doors. We have assumed a comprehensive replacement project all windows and doors The components on this page were moved from the General Reserve to Recreation Reserve.

161 Replacement Reserve Inventory - Page B17 Recreation Reserve September 20, RECREATI16 EQUIPMENT PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 169 CC Cameras - Security ea 1 $8, $8, CC Computer - at pool ea 1 $2, $2, BEA Cameras - Security ea 1 $8, $8, BEA Computer - at pool ea 1 $2, $2, B Cameras - Security ea 1 $8, $8, B Cameras - Security ea 1 $8, $8, B Commercial Kitchen Appliances ls 1 $1, $1, B Audio/Video System ea 1 $80, $80, S Cameras - Security ea 1 $8, $8, S Computer - at pool ea 1 $2, $2,000 EQUIPMENT - Replacement Costs - Subtotal $141,000 EQUIPMENT COMMENTS The above equipment list was provided by the Association B = Brambleton Corner BEA = Beacon Crest CC = Community Center S = Stratford Landing

162 Replacement Reserve Inventory - Page B18 Recreation Reserve September 20, RECREATI16 VALUATION EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Miscellaneous signage ls 1 3 EXCLUDED Space heater, pool equipment room ls 1 3 EXCLUDED Wading pool pump ls 1 3 EXCLUDED Drinking water fountain ls 1 3 EXCLUDED Chemical treatment system ls 1 3 EXCLUDED VALUATION EXCLUSIONS COMMENTS Valuation Exclusions. For ease of administration of the Replacement Reserves and to reflect accurately how Replacement Reserves are administered, items with a dollar value less than $1, have not been scheduled for funding from Replacement Reserves. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

163 Replacement Reserve Inventory - Page B19 Recreation Reserve September 20, RECREATI16 LONG-LIFE EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Exterior planter walls w/ balanced fill ls 1 3 EXCLUDED Common element electrical services ls 1 3 EXCLUDED Electrical wiring ls 1 3 EXCLUDED Water piping at common facilities ls 1 3 EXCLUDED Waste piping at common facilities ls 1 3 EXCLUDED Gas services at common facilities ls 1 3 EXCLUDED LONG-LIFE EXCLUSIONS COMMENTS Long Life Exclusions. Components that when properly maintained, can be assumed to have a life equal to the property as a whole, are normally excluded from the Replacement Reserve Inventory. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. Exterior masonry is generally assumed to have and unlimited economic life but periodic repointing is required and we have included this for funding in the Replacement Reserve Inventory. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

164 Replacement Reserve Inventory - Page B20 Recreation Reserve September 20, RECREATI16 MAINTENANCE AND REPAIR EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Janitorial service ls 1 3 EXCLUDED Repair services ls 1 3 EXCLUDED Capitol improvements ls 1 3 EXCLUDED MAINTENANCE AND REPAIR EXCLUSIONS COMMENTS Maintenance activities, one-time-only repairs, and capitol improvements. These activities are NOT appropriately funded from Replacement Reserves. The inclusion of such component in the Replacement Reserve Inventory could jeopardize the special tax status of ALL Replacement Reserves, exposing the Association to significant tax liabilities. We recommend that the Board of Directors discuss these exclusions and Revenue Ruling with a Certified Public Accountant. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

165 Projected Annual Replacements - Page C1 Recreation Reserve September 20, RECREATI16 PROJECTED ANNUAL REPLACEMENTS GENERAL INFORMATION CALENDAR OF ANNUAL REPLACEMENTS. The 178 Projected Replacements in the Recreation Reserve Replacement Reserve Inventory whose replacement is scheduled to be funded from Replacement Reserves are broken down on a year-by-year basis, beginning on Page C2. REPLACEMENT RESERVE ANALYSIS AND INVENTORY POLICIES, PROCEDURES, AND ADMINISTRATION REVISIONS. Revisions will be made to the Replacement Reserve Analysis and Replacement Reserve Inventory in accordance with the written instructions of the Board of Directors. No additional charge is incurred for the first revision, if requested in writing within three months of the date of the Replacement Reserve Study. It is our policy to provide revisions in electronic (Adobe PDF) format only. TAX CODE. The United States Tax Code grants favorable tax status to a common interest development (CID) meeting certain guidelines for their Replacement Reserve. If a CID files their taxes as a 'Corporation' on Form 1120 (IRC Section 277), these guidelines typically require maintenance activities, partial replacements, minor replacements, capital improvements, and one-time only replacements to be excluded from Reserves. A CID cannot co-mingle planning for maintenance activities with capital replacement activities in the Reserves (Revenue Ruling 7-370). Funds for maintenance activities and capital replacements activities must be held in separate accounts. If a CID files taxes as an "Exempt Homeowners Association" using Form 1120H (IRC Section 28), the CID does not have to segregate these activities. However, because the CID may elect to change their method of filing from year to year within the Study Period, we advise using the more restrictive approach. We further recommend that the CID consult with their Accountant and consider creating separate and independent accounts and reserves for large maintenance items, such as painting. CONFLICT OF INTEREST. Neither Miller - Dodson Associates nor the Reserve Analyst has any prior or existing relationship with this Association which would represent a real or perceived conflict of interest. RELIANCE ON DATA PROVIDED BY THE CLIENT. Information provided by an official representative of the Association regarding financial, physical conditions, quality, or historical issues is deemed reliable. INTENT. This Replacement Reserve Study is a reflection of the information provided by the Association and the visual evaluations of the Analyst. It has been prepared for the sole use of the Association and is not for the purpose of performing an audit, quality/forensic analyses, or background checks of historical records. PREVIOUS REPLACEMENTS. Information provided to Miller - Dodson Associates regarding prior replacements is considered to be accurate and reliable. Our visual evaluation is not a project audit or quality inspection. EXPERIENCE WITH FUTURE REPLACEMENTS. The Calendar of Annual Projected Replacements, lists replacements we have projected to occur over the next thirty years, begins on Page C2. Actual experience in replacing the items may differ significantly from the cost estimates and time frames shown because of conditions beyond our control. These differences may be caused by maintenance practices, inflation, variations in pricing and market conditions, future technological developments, regulatory actions, acts of God, and luck. Some items may function normally during our visual evaluation and then fail without notice. REVIEW OF THE REPLACEMENT RESERVE STUDY. For this study to be effective, it should be reviewed by the Recreation Reserve Board of Directors, those responsible for the management of the items included in the Replacement Reserve Inventory, and the accounting professionals employed by the Association.

166 Projected Annual Replacements - Page C2 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 1 TO 3 Item STUDY YEAR $ Item YEAR 2 $ Item YEAR 3 $ 96 BEA Tuckpoint masonry faca $2,860 3 CC Pool deck furniture (2% $8,13 2 CC Locker Room renovation $13,00 8 BEA Main pool filter system $2, CC Main pool motor 7. hp $3, BEA Wading pool filter syste $2, CC Wading pool pump & mo $1, BEA Spa filter system $2, CC Spa pump & motor 3 hp $3, BEA Pool electric - renovatio $6,000 2 CC Spa jet pump & motor h $4,00 76 BEA Pool deck furniture (2% $8, CC Spa heater $, BEA Asphalt pavement inter $1, BEA Tuckpoint stone perime $3, BEA Concrete curb & gutter $ BEA Parking bay marking $ BEA Flatwork (2%) $ BEA Clubroom FF&E minor r $1, BEA Security & monitoring $, B Pool deck furniture (2%) $7,498 Total Scheduled Replacements $2,860 Total Scheduled Replacements $32,723 Total Scheduled Replacements $48,384

167 Projected Annual Replacements - Page C3 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 4 TO 6 Item YEAR 4 $ Item YEAR $ Item YEAR 6 $ 42 BEA Locker Room renovatio $11,20 36 CC Pool deck furniture (2% $8,13 4 CC Main pool whitecoat $37, BEA Main pool whitecoat $23, BEA Pool deck furniture (2% $8,980 CC Main pool waterline tile $6, BEA Main pool cover $7, S Locker Room renovation - $11,20 6 CC Main pool coping $21, BEA Wading pool whitecoat $2,01 7 CC Main pool cover $11,918 2 BEA Wading pool cover $69 9 CC Wading pool whitecoat $1,00 4 BEA Spa pool whitecoat $73 10 CC Wading pool waterline til $70 7 BEA Spa pool cover $ CC Wading pool coping $2, B Locker Room renovation - $11,20 12 CC Wading pool cover $ S Pool deck furniture (2%) $6,7 14 CC Spa pool whitecoat $ S Asphalt pavement interim $4,90 1 CC Spa pool waterline tile $ S Concrete flatwork and curb $1, CC Spa pool coping $2, CC Computer - at pool $2, CC Spa pool cover $ BEA Computer - at pool $2, CC Concrete deck & skimme $12, S Computer - at pool $2, CC Wood arbors, pool deck $14, BEA Asphalt pavement inter $2, BEA Concrete curb & gutter $ BEA Flatwork (2%) $ B Main pool whitecoat $46, B Main pool cover $14, B Pool deck furniture (2%) $7, S Parking bay marking $484 Total Scheduled Replacements $7,440 Total Scheduled Replacements $28,36 Total Scheduled Replacements $184,301

168 Projected Annual Replacements - Page C4 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 7 TO 9 Item YEAR 7 $ Item YEAR 8 $ Item YEAR 9 $ 90 BEA Parking bay marking $286 2 CC Locker Room renovation $13,00 42 BEA Locker Room renovatio $11, S Main pool whitecoat $26,23 18 CC Main pool filter system $9, B Locker Room renovation - $11, S Main pool cover $8,2 19 CC Main pool pump $4, B Pool deck furniture (2%) $7, S Pool deck furniture (2%) $6,7 21 CC Wading pool filter system $2, CC Computer - at pool $2, CC Cameras - Security $8, CC Spa filter system $2, BEA Computer - at pool $2, BEA Cameras - Security $8, CC Pool electric - renovation $, B Commercial Kitchen Applia $1, B Cameras - Security $8, CC Pool equipment room - re $12, S Computer - at pool $2, B Cameras - Security $8, CC Pool deck furniture (2% $8, B Audio/Video System $80, BEA Wading pool pump & m $1, S Cameras - Security $8, BEA Spa jet pump & motor $4,00 70 BEA Concrete deck & skimm $14, BEA Pool deck furniture (2% $8, BEA Gas fireplace $10, BEA Gas grille & cooking sta $4, BEA Clubroom FF&E minor $1, BEA HVAC system $16, BEA Water heater $9, BEA Security & monitoring $, S Asphalt pavement interim $, S Concrete flatwork and curb $1,000 Total Scheduled Replacements $162,089 Total Scheduled Replacements $139,030 Total Scheduled Replacements $0,998

169 Projected Annual Replacements - Page C Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 10 TO 12 Item YEAR 10 $ Item YEAR 11 $ Item YEAR 12 $ 84 BEA Parking area - replace p $1, CC Concrete deck & skimme $12, B Pool deck furniture (2%) $7, BEA Concrete curb & gutter $ CC Pool deck furniture (2% $8,13 19 S Asphalt pavement interim c $, BEA Flatwork (2%) $ BEA Main pool whitecoat $23, S Concrete flatwork and curb $1, S Locker Room renovation - $11,20 47 BEA Main pool cover $7,20 10 S Pool deck furniture (2%) $6,7 49 BEA Wading pool whitecoat $2, S Parking bay marking $484 2 BEA Wading pool cover $69 16 S Tuckpoint masonry facade $2,27 4 BEA Spa pool whitecoat $73 7 BEA Spa pool cover $ BEA Pool deck furniture (2% $8, BEA Parking bay marking $ BEA Tuckpoint masonry faca $2,860 Total Scheduled Replacements $37,397 Total Scheduled Replacements $67,66 Total Scheduled Replacements $14,236

170 Projected Annual Replacements - Page C6 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 13 TO 1 Item YEAR 13 $ Item YEAR 14 $ Item YEAR 1 $ 2 CC Locker Room renovation $13,00 3 CC Pool deck furniture (2% $8,13 90 BEA Parking bay marking $286 4 CC Main pool whitecoat $37, BEA Locker Room renovatio $11,20 12 B Pool deck furniture (2%) $7,498 7 CC Main pool cover $11, BEA Main pool motor 7. hp $3, S Locker Room renovation - $11,20 9 CC Wading pool whitecoat $1,00 6 BEA Spa pump & motor 1. $3, S Main pool motor $3, CC Wading pool cover $ BEA Pool deck furniture (2% $8, S Main pool feature pump & $3, CC Spa pool whitecoat $700 8 BEA Asphalt pavement inter $1, S Concrete deck & skimmers $11,28 17 CC Spa pool cover $22 88 BEA Concrete curb & gutter $ S HVAC system $16,000 9 BEA Main pool pump $4, BEA Flatwork (2%) $ S Water heater $9, BEA Main pool heater (exter $3, B Locker Room renovation - $11, CC Cameras - Security $8, BEA Spa heater $2, B Main pool motor $3, BEA Cameras - Security $8, BEA Pool equipment room - $12, B Main pool feature pump & $3, B Cameras - Security $8, BEA Concrete deck & skimm $14, B Concrete deck & skimmers $12, B Cameras - Security $8, BEA Tuckpoint stone perime $3, S Main pool whitecoat $26, B Audio/Video System $80, BEA Clubroom FF&E renova $12, S Main pool cover $8,2 177 S Cameras - Security $8, BEA Clubroom FF&E minor $1, S Parking bay marking $ BEA Family restroom renova $9, CC Computer - at pool $2, BEA Security & monitoring $, BEA Computer - at pool $2, B Main pool whitecoat $46, S Computer - at pool $2, B Main pool cover $14, S Pool deck furniture (2%) $6,7 Total Scheduled Replacements $200,044 Total Scheduled Replacements $109,473 Total Scheduled Replacements $182,091

171 Projected Annual Replacements - Page C7 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 16 TO 18 Item YEAR 16 $ Item YEAR 17 $ Item YEAR 18 $ 31 CC Concrete deck & skimme $12, CC Pool deck furniture (2% $8,13 1 CC Locker Room renovation $90, S Pool deck furniture (2%) $6,7 77 BEA Pool deck furniture (2% $8,980 2 CC Locker Room renovation $13,00 16 S Parking area - replace pav $39,27 20 CC Main pool motor 7. hp $3, S Concrete flatwork and curb $1, CC Wading pool pump & mo $1, CC Spa pump & motor 3 hp $3,000 2 CC Spa jet pump & motor h $4,00 26 CC Spa heater $, CC Guard stands, ladders, ra $20, BEA Main pool whitecoat $23,394 4 BEA Main pool waterline tile $3, BEA Main pool coping $12, BEA Main pool cover $7,20 49 BEA Wading pool whitecoat $2,01 0 BEA Wading pool waterline t $97 1 BEA Wading pool coping $3,20 2 BEA Wading pool cover $69 4 BEA Spa pool whitecoat $73 BEA Spa pool waterline tile $630 6 BEA Spa pool coping $2,100 7 BEA Spa pool cover $ BEA Concrete deck & skimm $14, BEA Asphalt pavement inter $1, BEA Concrete curb & gutter $ BEA Flatwork (2%) $ BEA Clubroom FF&E minor r $1, BEA Security & monitoring $, B Pool deck furniture (2%) $7, S Parking bay marking $484 Total Scheduled Replacements $9,991 Total Scheduled Replacements $17,11 Total Scheduled Replacements $230,906

172 Projected Annual Replacements - Page C8 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 19 TO 21 Item YEAR 19 $ Item YEAR 20 $ Item YEAR 21 $ 42 BEA Locker Room renovatio $11,20 4 CC Main pool whitecoat $37, CC Concrete deck & skimme $162,70 90 BEA Parking bay marking $286 7 CC Main pool cover $11, CC Aluminum fence, wading $3,00 93 BEA Asphalt shingle roofing $22,00 9 CC Wading pool whitecoat $1,00 34 CC Aluminum fence, pool pe $31, BEA Gutters & downspouts $3, CC Wading pool cover $ BEA Tuckpoint masonry faca $2, BEA Windows (39) $21, CC Spa pool whitecoat $ B Pool deck furniture (2%) $7, BEA Exterior doors - storefro $6, CC Spa pool cover $ S Main pool whitecoat $26,23 99 BEA Exterior doors - metal $9, CC Pool deck furniture (2% $8,13 13 S Main pool waterline tile $4, BEA Exterior doors - glazed $4,00 78 BEA Pool deck furniture (2% $8, S Main pool coping $16, BEA roll-up door $1, B Main pool whitecoat $46, S Main pool cover $8,2 109 B Locker Room renovation - $11, B Main pool waterline tile $6,19 11 B Main pool filter system $11, B Main pool coping $20, B Main pool pump $4, B Main pool cover $14, B Pool electric - renovation $, S Locker Room renovation - $11, B Pool equipment room - ren $12, S Main pool filter system $11, B Concrete deck & skimmers $12, S Main pool pump $4, S Pool deck furniture (2%) $6,7 142 S Pool electric - renovation $, CC Computer - at pool $2, S Pool equipment room - ren $12, BEA Computer - at pool $2, S Concrete deck & skimmers $11,28 17 B Commercial Kitchen Applia $1, S Water slide $20, S Computer - at pool $2,000 1 S In-pool features (brella, be $36, S Asphalt pavement interim $4, S Concrete flatwork and curb $1, S Tuckpoint masonry facade $2,27 Total Scheduled Replacements $164,214 Total Scheduled Replacements $27,3 Total Scheduled Replacements $263,991

173 Projected Annual Replacements - Page C9 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 22 TO 24 Item YEAR 22 $ Item YEAR 23 $ Item YEAR 24 $ 8 BEA Main pool filter system $2,400 2 CC Locker Room renovation $13,00 42 BEA Locker Room renovatio $11,20 62 BEA Wading pool filter syste $2, CC Pool deck furniture (2% $8, B Locker Room renovation - $11,20 64 BEA Spa filter system $2, BEA Locker Room renovatio $7, B Concrete deck & skimmers $12, BEA Pool electric - renovatio $6, BEA Wading pool pump & m $1, B Pool deck furniture (2%) $7, BEA Asphalt pavement inter $2, BEA Spa jet pump & motor $4,00 18 S Asphalt pavement interim c $, BEA Concrete curb & gutter $ BEA Concrete deck & skimm $179,9 160 S Concrete flatwork and curb $1, BEA Flatwork (2%) $ BEA Aluminum fence, wadin $4, CC Computer - at pool $2, S Pool deck furniture (2%) $6,7 7 BEA Aluminum fence, pool p $16, BEA Computer - at pool $2, S Parking bay marking $ BEA Pool deck furniture (2% $8, S Computer - at pool $2, BEA Guard stands, ladders, $20, BEA Tuckpoint stone perime $3, BEA Gas fireplace $10, BEA Gas grille & cooking sta $4,00 90 BEA Parking bay marking $ BEA Decorative post lights & $9, BEA Decorative wall lights $9, BEA Clubroom FF&E minor $1, BEA HVAC system $16, BEA Water heater $9, BEA Security & monitoring $, CC Cameras - Security $8, BEA Cameras - Security $8, B Cameras - Security $8, B Cameras - Security $8, B Audio/Video System $80, S Cameras - Security $8,000 Total Scheduled Replacements $23,11 Total Scheduled Replacements $20,196 Total Scheduled Replacements $4,43

174 Projected Annual Replacements - Page C10 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 2 TO 27 Item YEAR 2 $ Item YEAR 26 $ Item YEAR 27 $ 44 BEA Main pool whitecoat $23,394 3 CC Pool deck furniture (2% $8,13 4 CC Main pool whitecoat $37, BEA Main pool cover $7,20 40 CC Wood arbors, pool deck $14,400 CC Main pool waterline tile $6, BEA Wading pool whitecoat $2,01 76 BEA Pool deck furniture (2% $8,980 6 CC Main pool coping $21,200 2 BEA Wading pool cover $69 84 BEA Parking area - replace p $1,392 7 CC Main pool cover $11,918 4 BEA Spa pool whitecoat $73 88 BEA Concrete curb & gutter $816 9 CC Wading pool whitecoat $1,00 7 BEA Spa pool cover $ BEA Flatwork (2%) $ CC Wading pool waterline til $ S Locker Room renovation - $11, S Parking bay marking $ CC Wading pool coping $2, S Concrete deck & skimmers $11,28 12 CC Wading pool cover $ S Pool deck furniture (2%) $6,7 14 CC Spa pool whitecoat $ S Asphalt shingle roofing $7,200 1 CC Spa pool waterline tile $ S Gutters & downspouts $1, CC Spa pool coping $2, S Exterior openings $10, CC Spa pool cover $22 90 BEA Parking bay marking $ B Main pool whitecoat $46, B Main pool cover $14, B Pool deck furniture (2%) $7,498 Total Scheduled Replacements $83,060 Total Scheduled Replacements $48,633 Total Scheduled Replacements $13,17

175 Projected Annual Replacements - Page C11 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 28 TO 30 Item YEAR 28 $ Item YEAR 29 $ Item YEAR 30 $ 2 CC Locker Room renovation $13,00 36 CC Pool deck furniture (2% $8,13 8 BEA Asphalt pavement inter $1, CC Main pool filter system $9, BEA Locker Room renovatio $11,20 88 BEA Concrete curb & gutter $ CC Main pool pump $4, BEA Main pool motor 7. hp $3, BEA Flatwork (2%) $ CC Wading pool filter system $2,000 6 BEA Spa pump & motor 1. $3, B Pool deck furniture (2%) $7, CC Spa filter system $2, BEA Pool deck furniture (2% $8, S Locker Room renovation - $7, CC Pool electric - renovation $, B Locker Room renovation - $7, S Locker Room renovation - $11,20 28 CC Pool equipment room - re $12, B Locker Room renovation - $11, S Main pool motor $3, BEA Spa heater $2, B Main pool motor $3, S Main pool feature pump & $3, BEA Clubroom FF&E minor $1, B Main pool feature pump & $3, S Concrete deck & skimmers $13, BEA Security & monitoring $, B Concrete deck & skimmers $149,9 12 S Guard stands, ladders, rail $20, S Main pool whitecoat $26, B Guard stands, ladders, rail $20, S Aluminum fence, pool perim $27, S Main pool cover $8,2 130 B Aluminum fence, pool perim $24, S Parking bay marking $ S Pool deck furniture (2%) $6,7 170 CC Computer - at pool $2, S Tuckpoint masonry facade $2,27 19 S Asphalt pavement interim $, BEA Computer - at pool $2, S HVAC system $16, S Concrete flatwork and curb $1, B Commercial Kitchen Applia $1, S Water heater $9, S Computer - at pool $2,000 Total Scheduled Replacements $10,641 Total Scheduled Replacements $342,370 Total Scheduled Replacements $313,426

176 Projected Annual Replacements - Page C12 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 31 TO 33 Item YEAR 31 $ Item YEAR 32 $ Item YEAR 33 $ 90 BEA Parking bay marking $ CC Pool deck furniture (2% $8,13 2 CC Locker Room renovation $13,00 96 BEA Tuckpoint masonry faca $2, BEA Main pool whitecoat $23, CC Main pool motor 7. hp $3, S Pool deck furniture (2%) $6,7 47 BEA Main pool cover $7,20 22 CC Wading pool pump & mo $1, CC Cameras - Security $8, BEA Wading pool whitecoat $2,01 24 CC Spa pump & motor 3 hp $3, BEA Cameras - Security $8,000 2 BEA Wading pool cover $69 2 CC Spa jet pump & motor h $4, B Cameras - Security $8,000 4 BEA Spa pool whitecoat $73 26 CC Spa heater $, B Cameras - Security $8,000 7 BEA Spa pool cover $236 9 BEA Main pool pump $4, B Audio/Video System $80, BEA Pool deck furniture (2% $8, BEA Main pool heater (exter $3, S Cameras - Security $8, S Parking area - replace pav $39,27 69 BEA Pool equipment room - $12, S Concrete flatwork and curb $1, BEA Tuckpoint stone perime $3, BEA Clubroom FF&E renova $12, BEA Clubroom FF&E minor r $1, BEA Family restroom renova $9, BEA Security & monitoring $, B Pool deck furniture (2%) $7,498 Total Scheduled Replacements $129,901 Total Scheduled Replacements $92,237 Total Scheduled Replacements $88,798

177 Projected Annual Replacements - Page C13 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 34 TO 36 Item YEAR 34 $ Item YEAR 3 $ Item YEAR 36 $ 4 CC Main pool whitecoat $37, CC Pool deck furniture (2% $8,13 29 CC Concrete deck & skimme $12,710 7 CC Main pool cover $11, BEA Pool deck furniture (2% $8, B Pool deck furniture (2%) $7,498 9 CC Wading pool whitecoat $1,00 90 BEA Parking bay marking $ S Asphalt pavement interim c $4,90 12 CC Wading pool cover $ S Locker Room renovation - $11, S Concrete flatwork and curb $1, CC Spa pool whitecoat $ S Main pool whitecoat $26,23 17 CC Spa pool cover $ S Main pool cover $8,2 42 BEA Locker Room renovatio $11, S Streetlight $12, BEA Asphalt pavement inter $1, BEA Concrete curb & gutter $ BEA Flatwork (2%) $ B Locker Room renovation - $11, B Main pool whitecoat $46, B Main pool cover $14, S Pool deck furniture (2%) $6,7 161 S Parking bay marking $ CC Computer - at pool $2, BEA Computer - at pool $2, S Computer - at pool $2,000 Total Scheduled Replacements $11,269 Total Scheduled Replacements $76,299 Total Scheduled Replacements $2,798

178 Projected Annual Replacements - Page C14 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 37 TO 39 Item YEAR 37 $ Item YEAR 38 $ Item YEAR 39 $ 11 S Pool deck furniture (2%) $6,7 2 CC Locker Room renovation $13,00 42 BEA Locker Room renovatio $11,20 3 CC Pool deck furniture (2% $8,13 44 BEA Main pool whitecoat $23, BEA Wading pool pump & m $1,800 4 BEA Main pool waterline tile $3, BEA Spa jet pump & motor $4,00 46 BEA Main pool coping $12, BEA Concrete deck & skimm $14, BEA Main pool cover $7,20 76 BEA Pool deck furniture (2% $8, BEA Wading pool whitecoat $2,01 82 BEA Gas fireplace $10,000 0 BEA Wading pool waterline t $97 83 BEA Gas grille & cooking sta $4,00 1 BEA Wading pool coping $3,20 87 BEA Asphalt pavement inter $2,234 2 BEA Wading pool cover $69 88 BEA Concrete curb & gutter $816 4 BEA Spa pool whitecoat $73 89 BEA Flatwork (2%) $426 BEA Spa pool waterline tile $ BEA Clubroom FF&E minor $1,800 6 BEA Spa pool coping $2, BEA HVAC system $16,000 7 BEA Spa pool cover $ BEA Water heater $9, BEA Parking bay marking $ BEA Security & monitoring $, B Locker Room renovation - $11, S Parking bay marking $ B Main pool filter system $11, B Main pool pump $4, B Pool electric - renovation $, B Pool equipment room - ren $12, B Pool deck furniture (2%) $7, CC Cameras - Security $8, CC Computer - at pool $2, BEA Cameras - Security $8, BEA Computer - at pool $2, B Cameras - Security $8, B Cameras - Security $8, B Commercial Kitchen Applia $1, B Audio/Video System $80, S Cameras - Security $8, S Computer - at pool $2,000 Total Scheduled Replacements $6,7 Total Scheduled Replacements $102,142 Total Scheduled Replacements $261,134

179 Projected Annual Replacements - Page C1 Recreation Reserve September 20, RECREATI16 PROJECTED REPLACEMENTS - YEARS 40 TO 42 Item 20 - YEAR 40 $ Item 206 (beyond Study Period) $ Item 207 (beyond Study Period) $ 132 S Locker Room renovation - $11,20 4 CC Main pool whitecoat $37,079 8 BEA Main pool filter system $2, S Main pool filter system $11,200 7 CC Main pool cover $11, BEA Wading pool filter syste $2, S Main pool pump $4,00 9 CC Wading pool whitecoat $1,00 64 BEA Spa filter system $2, S Pool electric - renovation $, CC Wading pool cover $ BEA Pool electric - renovatio $6, S Pool equipment room - ren $12, CC Spa pool whitecoat $ BEA Parking area - replace p $1, S Pool deck furniture (2%) $6,7 17 CC Spa pool cover $22 88 BEA Concrete curb & gutter $ S Water slide $20, CC Concrete deck & skimme $12, BEA Flatwork (2%) $426 1 S In-pool features (brella, be $36, CC Pool deck furniture (2% $8, B Pool deck furniture (2%) $7, S Asphalt pavement interim $, BEA Pool deck furniture (2% $8, S Main pool whitecoat $26, S Concrete flatwork and curb $1, BEA Tuckpoint masonry faca $2, S Main pool waterline tile $4, S Tuckpoint masonry facade $2, B Main pool whitecoat $46, S Main pool coping $16, B Main pool waterline tile $6, S Main pool cover $8,2 113 B Main pool coping $20, S Parking bay marking $ B Main pool cover $14,841 Total Scheduled Replacements $11,029 Total Scheduled Replacements $171,83 Total Scheduled Replacements $93,124

180 Cash Flow Method Accounting Summary - Page CF1 Recreation Reserve September 20, RECREATI16 CASH FLOW METHOD ACCOUNTING SUMMARY This Recreation Reserve - Cash Flow Method Accounting Summary is an attachment to the Recreation Reserve - Replacement Reserve Study dated September 20, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Cash Flow Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. CASH FLOW METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 178 Projected Replacements listed in the Recreation Reserve Replacement Reserve Inventory has been assigned to one of 1 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Cash Flow Method. THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $300,000 Beginning Balance (at the start of the Study Year) and the $388,00 of additional Replacement Reserve Funding in 2016 through 2018 (as calculated in the Replacement Reserve Analysis) to each of the 178 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and discussed below. The calculated data includes: m Identification and estimated cost of each Projected Replacement scheduled in years 2016 through m Allocation of the $300,000 Beginning Balance to the Projected Replacements by Chronological Allocation. m Allocation of the $388,00 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by Chronological Allocation. CHRONOLOGICAL ALLOCATION. Chronological Allocation assigns Replacement Reserves to Projected Replacements on a "first come, first serve" basis in keeping with the basic philosophy of the Cash Flow Method. The Chronological Allocation methodology is outlined below. m The first step is the allocation of the $300,000 Beginning Balance to the Projected Replacements in the Study Year. Remaining unallocated funds are next allocated to the Projected Replacements in subsequent years in chronological order until the total of Projected Replacements in the next year is greater than the unallocated funds. Projected Replacements in this year are partially funded with each replacement receiving percentage funding. The percentage of funding is calculated by dividing the unallocated funds by the total of Projected Replacements in the partially funded year. At Recreation Reserve the Beginning Balance funds all Scheduled Replacements in the Study Year through 2020 and provides partial funding (61%) of replacements scheduled in m The next step is the allocation of the $129,00 of 2016 Cash Flow Method Reserve Funding calculated in the Replacement Reserve Analysis. These funds are first allocated to fund the partially funded Projected Replacements and then to subsequent years in chronological order as outlined above. At Recreation Reserve the Beginning Balance and the 2016 Replacement Reserve Funding, funds replacements through 2021 and partial funds (3.4%) replacements in m Allocations of the 2017 and 2018 Reserve Funding are done using the same methodology. m The Three-Year Replacement Funding Report details component by component allocations made by Chronological Allocation.

181 Cash Flow Method Accounting Summary - Page CF2 Recreation Reserve September 20, RECREATI CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 178 Projected Replacements included in the Recreation Reserve Replacement Reserve Inventory has been assigned to one of the 1 categories listed in TABLE CF1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $300,000 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $429,00 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $2,860. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) LOCKER ROOM to 60 years 2 to 47 years $87,604 $6,089 $33,130 $98,220 COMMUNITY CENTER (CC) POOL EQUIPME1 to 20 years 2 to 7 years $2,100 $17,300 $17,300 COMMUNITY CENTER (CC) POOL DECK 12 to 30 years 1 to 20 years $302,96 $32,779 $10,602 $43,381 BEACON CREST (BEA) LOCKER ROOMS & to 60 years 3 to 2 years $412,680 $4,84 $4,84 BEACON CREST (BEA) POOL EQUIPMENT 1 to 20 years 1 to 13 years $46,400 $12,400 $12,400 BEACON CREST (BEA) POOL DECK 10 to 30 years 1 to 22 years $319,013 $20,960 $20,960 BEACON CREST (BEA) SITE IMPROVEMEN 4 to 30 years 1 to 22 years $40,907 $,611 $1,461 $7,072 BEACON CREST (BEA) EXTERIOR, INTERIO to 0 years 0 to 42 years $149,338 $9,660 ($2,860) $6,800 BRAMBLETON CORNER (B) LOCKER ROOM to 60 years 3 to 8 years $688,20 $48,403 $23,860 $72,263 BRAMBLETON CORNER (B) POOL DECK 12 to 30 years 2 to 28 years $261,43 $12,063 $2,932 $14,996 STRATFORD (S) LOCKER ROOMS & POOLS to 60 years 4 to 9 years $44,666 $11,20 $12,418 $23,668 STRATFORD (S) POOL DECK 12 to 30 years 3 to 29 years $298,881 $6,7 $2,393 $9,148 STRATFORD (S) SITE IMPROVEMENTS 4 to 3 years 3 to 34 years $68,988 $,88 $189 $6,074 STRATFORD (S) EXTERIOR, INTERIOR & E 10 to 2 years 9 to 24 years $46,478 EQUIPMENT to 10 years 3 to 8 years $141,000 $6,000 $42,16 $48,16

182 Cash Flow Method Accounting Summary - Page CF3 Recreation Reserve September 20, RECREATI CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 178 Projected Replacements included in the Recreation Reserve Replacement Reserve Inventory has been assigned to one of the 1 categories listed in TABLE CF2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $426,640 on January 1, m Total reserve funding (including the Beginning Balance) of $9,000 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2017 being accomplished in 2017 at a cost of $32,723. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) LOCKER ROOM to 60 years 1 to 46 years $87,604 $98,220 $2,412 $100,632 COMMUNITY CENTER (CC) POOL EQUIPME1 to 20 years 1 to 6 years $2,100 $17,300 $6,217 $23,17 COMMUNITY CENTER (CC) POOL DECK 12 to 30 years 0 to 19 years $302,96 $43,381 $1,43 ($8,13) $36,699 BEACON CREST (BEA) LOCKER ROOMS & to 60 years 2 to 1 years $412,680 $4,84 $4,84 BEACON CREST (BEA) POOL EQUIPMENT 1 to 20 years 0 to 12 years $46,400 $12,400 $1,126 ($12,400) $1,126 BEACON CREST (BEA) POOL DECK 10 to 30 years 0 to 21 years $319,013 $20,960 $6,869 ($8,980) $18,848 BEACON CREST (BEA) SITE IMPROVEMEN 4 to 30 years 0 to 21 years $40,907 $7,072 $18 ($3,208) $4,048 BEACON CREST (BEA) EXTERIOR, INTERIO to 0 years 1 to 41 years $149,338 $6,800 $,681 $12,481 BRAMBLETON CORNER (B) LOCKER ROOM to 60 years 2 to 7 years $688,20 $72,263 $72,263 BRAMBLETON CORNER (B) POOL DECK 12 to 30 years 1 to 27 years $261,43 $14,996 $14,996 STRATFORD (S) LOCKER ROOMS & POOLS to 60 years 3 to 8 years $44,666 $23,668 $22,631 $46,298 STRATFORD (S) POOL DECK 12 to 30 years 2 to 28 years $298,881 $9,148 $4,361 $13,09 STRATFORD (S) SITE IMPROVEMENTS 4 to 3 years 2 to 33 years $68,988 $6,074 $1,081 $7,1 STRATFORD (S) EXTERIOR, INTERIOR & E 10 to 2 years 8 to 23 years $46,478 EQUIPMENT to 10 years 2 to 7 years $141,000 $48,16 $77,484 $126,000

183 Cash Flow Method Accounting Summary - Page CF4 Recreation Reserve September 20, RECREATI CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 178 Projected Replacements included in the Recreation Reserve Replacement Reserve Inventory has been assigned to one of the 1 categories listed in TABLE CF3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $23,417 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $688,00 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2018 being accomplished in 2018 at a cost of $48,384. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) LOCKER ROOM to 60 years 0 to 4 years $87,604 $100,632 $11,088 ($13,00) $98,220 COMMUNITY CENTER (CC) POOL EQUIPME1 to 20 years 0 to years $2,100 $23,17 $28,83 ($17,300) $34,800 COMMUNITY CENTER (CC) POOL DECK 12 to 30 years 2 to 18 years $302,96 $36,699 $6,682 $43,381 BEACON CREST (BEA) LOCKER ROOMS & to 60 years 1 to 0 years $412,680 $4,84 $3,377 $49,222 BEACON CREST (BEA) POOL EQUIPMENT 1 to 20 years to 19 years $46,400 $1,126 $,174 $6,300 BEACON CREST (BEA) POOL DECK 10 to 30 years 0 to 20 years $319,013 $18,848 $31,77 ($3,000) $47,426 BEACON CREST (BEA) SITE IMPROVEMEN 4 to 30 years 0 to 20 years $40,907 $4,048 ($286) $3,762 BEACON CREST (BEA) EXTERIOR, INTERIO to 0 years 0 to 40 years $149,338 $12,481 $26,119 ($6,800) $31,800 BRAMBLETON CORNER (B) LOCKER ROOM to 60 years 1 to 6 years $688,20 $72,263 $3,377 $7,640 BRAMBLETON CORNER (B) POOL DECK 12 to 30 years 0 to 26 years $261,43 $14,996 $2,21 ($7,498) $9,748 STRATFORD (S) LOCKER ROOMS & POOLS to 60 years 2 to 7 years $44,666 $46,298 $0 $46,298 STRATFORD (S) POOL DECK 12 to 30 years 1 to 27 years $298,881 $13,09 ($0) $13,09 STRATFORD (S) SITE IMPROVEMENTS 4 to 3 years 1 to 32 years $68,988 $7,1 $4,968 $12,123 STRATFORD (S) EXTERIOR, INTERIOR & E 10 to 2 years 7 to 22 years $46,478 EQUIPMENT to 10 years 1 to 6 years $141,000 $126,000 $6,304 $132,304

184 Cash Flow Method Accounting Summary - Page CF Recreation Reserve September 20, RECREATI16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CF4 below details the allocation of the $300,000 Beginning Balance, as reported by the Association and the $388,00 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 178 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $300,000 on January 1, m Replacement Reserves on Deposit totaling $426,640 on January 1, m Replacement Reserves on Deposit totaling $23,417 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $688,00 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $83,967. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance COMMUNITY CENTER (CC) LOCK 1 CC Locker Room renovation - major 90,000 2 CC Locker Room renovation - minor 13,00 13,00 13,00 2,412 1,912 11,088 (13,00) 13,00 3 CC Main pool structure 381,384 4 CC Main pool whitecoat 37,079 22,79 14,00 37,079 37,079 37,079 CC Main pool waterline tile 6,360 3,873 2,487 6,360 6,360 6,360 6 CC Main pool coping 21,200 12,910 8,290 21,200 21,200 21,200 7 CC Main pool cover 11,918 7,28 4,661 11,918 11,918 11,918 8 CC Wading pool structure 10,800 9 CC Wading pool whitecoat 1, ,00 1,00 1,00 10 CC Wading pool waterline tile CC Wading pool coping 2,00 1, ,00 2,00 2,00 12 CC Wading pool cover CC Spa pool structure 7, CC Spa pool whitecoat CC Spa pool waterline tile CC Spa pool coping 2,000 1, ,000 2,000 2, CC Spa pool cover COMMUNITY CENTER (CC) POOL 18 CC Main pool filter system 9,600 1,71 1,71 7,88 9, CC Main pool pump 4, ,40 4, CC Main pool motor 7. hp 3,000 3,000 3,000 3,000 (3,000) 21 CC Wading pool filter system 2, ,643 2, CC Wading pool pump & motor 1. hp 1,800 1,800 1,800 1,800 (1,800) 23 CC Spa filter system 2, ,643 2, CC Spa pump & motor 3 hp 3,000 3,000 3,000 3,000 (3,000) 2 CC Spa jet pump & motor hp 4,00 4,00 4,00 4,00 (4,00) 26 CC Spa heater,000,000,000,000 (,000) 27 CC Pool electric - renovation, ,107, CC Pool equipment room - renovation 12,000 2,144 2,144 9,86 12,000 COMMUNITY CENTER (CC) POOL 29 CC Concrete deck & skimmers (10%) 12,710 7,740 4,970 12,710 12,710 12, CC Concrete deck & skimmers (10%) 12, CC Concrete deck & skimmers (10%) 12, CC Concrete deck & skimmers (100%) 162,70 33 CC Aluminum fence, wading pool 3,00 34 CC Aluminum fence, pool perimeter 31,320 3 CC Pool deck furniture (2%) 8,13 8,13 8,13 (8,13) 36 CC Pool deck furniture (2%) 8,13 8,13 8,13 8,13 8,13 37 CC Pool deck furniture (2%) 8,13 1,43 1,43 6,682 8,13 38 CC Pool deck furniture (2%) 8,13 39 CC Guard stands, ladders, railings, etc. 20,000

185 Cash Flow Method Accounting Summary - Page CF6 Recreation Reserve September 20, RECREATI16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 40 CC Wood arbors, pool deck 14,400 8,769,631 14,400 14,400 14,400 BEACON CREST (BEA) LOCKER R 41 BEA Locker Room renovation - major 7, BEA Locker Room renovation - minor 11,20 11,20 11,20 11,20 3,377 14, BEA Main pool structure 240, BEA Main pool whitecoat 23,394 23,394 23,394 23,394 23,394 4 BEA Main pool waterline tile 3, BEA Main pool coping 12, BEA Main pool cover 7,20 7,20 7,20 7,20 7,20 48 BEA Wading pool structure 21, BEA Wading pool whitecoat 2,01 2,01 2,01 2,01 2,01 0 BEA Wading pool waterline tile 97 1 BEA Wading pool coping 3,20 2 BEA Wading pool cover BEA Spa pool structure 7,60 4 BEA Spa pool whitecoat BEA Spa pool waterline tile BEA Spa pool coping 2,100 7 BEA Spa pool cover BEACON CREST (BEA) POOL EQU 8 BEA Main pool filter system 2,400 2,400 2,400 (2,400) 9 BEA Main pool pump 4, BEA Main pool motor 7. hp 3, BEA Main pool heater (exterior) 3,00 62 BEA Wading pool filter system 2,000 2,000 2,000 (2,000) 63 BEA Wading pool pump & motor 1. h 1, ,478 1, BEA Spa filter system 2,000 2,000 2,000 (2,000) 6 BEA Spa pump & motor 1. hp 3, BEA Spa jet pump & motor hp 4, ,696 4,00 67 BEA Spa heater 2, BEA Pool electric - renovation 6,000 6,000 6,000 (6,000) 69 BEA Pool equipment room - renovation 12,000 BEACON CREST (BEA) POOL DEC 70 BEA Concrete deck & skimmers (10%) 14,966 2,674 2,674 12,292 14, BEA Concrete deck & skimmers (10%) 14, BEA Concrete deck & skimmers (10%) 14, BEA Concrete deck & skimmers (100% 179,9 74 BEA Aluminum fence, wading pool 4,300 7 BEA Aluminum fence, pool perimeter 16, BEA Pool deck furniture (2%) 8,980 8,980 8,980 (8,980) 77 BEA Pool deck furniture (2%) 8,980 8,980 8,980 8,980 8, BEA Pool deck furniture (2%) 8,980 1,604 1,604 7,37 8, BEA Pool deck furniture (2%) 8, BEA Guard stands, ladders, railings, etc 20, BEA Tuckpoint stone perimeter wall 3,000 3,000 3,000 3,000 (3,000) 82 BEA Gas fireplace 10,000 1,787 1,787 8,213 10, BEA Gas grille & cooking station 4, ,696 4,00 BEACON CREST (BEA) SITE IMPRO 84 BEA Parking area - replace pavement 1,392 8 BEA Asphalt pavement interim cycle 1 1, BEA Asphalt pavement interim cycle 2 1,966 1,966 1,966 (1,966) 87 BEA Asphalt pavement interim cycle 3 2,234 1, ,234 2,234 2, BEA Concrete curb & gutter (2%) 816 1, ,632 (816) BEA Flatwork (2%) (426) BEA Parking bay marking (286) BEA Decorative post lights & poles 9, BEA Decorative wall lights 9,000 BEACON CREST (BEA) EXTERIOR 93 BEA Asphalt shingle roofing 22,00 94 BEA Gutters & downspouts 3,088 9 BEA Cementitious siding & trim 2, BEA Tuckpoint masonry facade (10%) 2,860 2,860 (2,860) 97 BEA Windows (39) 21, BEA Exterior doors - storefront 6, BEA Exterior doors - metal 9, BEA Exterior doors - glazed 4,00

186 Cash Flow Method Accounting Summary - Page CF7 Recreation Reserve September 20, RECREATI16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 101 BEA roll-up door 1, BEA Clubroom FF&E renovation 12, BEA Clubroom FF&E minor renovatio 1,800 1,800 1, ,122 1,478 (1,800) 1, BEA Family restroom renovation 9, BEA HVAC system 16,000 2,89 2,89 13,141 16, BEA Water heater 9,000 1,608 1,608 7,392 9, BEA Security & monitoring,000,000, ,893 4,107 (,000),000 BRAMBLETON CORNER (B) LOCK 108 B Locker Room renovation - major 7, B Locker Room renovation - minor 11,20 11,20 11,20 11,20 3,377 14, B Main pool structure 474, B Main pool whitecoat 46,172 28,116 18,06 46,172 46,172 46, B Main pool waterline tile 6, B Main pool coping 20, B Main pool cover 14,841 9,037,804 14,841 14,841 14, B Main pool filter system 11, B Main pool pump 4, B Main pool motor 3, B Main pool feature pump & motor 3, B Pool electric - renovation, B Pool equipment room - renovation 12,000 BRAMBLETON CORNER (B) POOL 121 B Concrete deck & skimmers (10%) 12, B Concrete deck & skimmers (10%) 12, B Concrete deck & skimmers (10%) 12, B Concrete deck & skimmers (100%) 149,9 12 B Pool deck furniture (2%) 7,498 7,498 7,498 7,498 (7,498) 126 B Pool deck furniture (2%) 7,498 4,66 2,932 7,498 7,498 7, B Pool deck furniture (2%) 7,498 2,21 2, B Pool deck furniture (2%) 7, B Guard stands, ladders, railings, etc.sw 20, B Aluminum fence, pool perimeter 24,000 STRATFORD (S) LOCKER ROOMS 131 S Locker Room renovation - major 7, S Locker Room renovation - minor 11,20 11,20 11,20 11,20 11, S Main pool structure 272, S Main pool whitecoat 26,23 9,397 9,397 17,126 26,23 26,23 13 S Main pool waterline tile 4, S Main pool coping 16, S Main pool cover 8,2 3,020 3,020,0 8,2 8,2 138 S Main pool filter system 11, S Main pool pump 4, S Main pool motor 3, S Main pool feature pump & motor 3, S Pool electric - renovation, S Pool equipment room - renovation 12,000 STRATFORD (S) POOL DECK 144 S Concrete deck & skimmers (10%) 11,28 14 S Concrete deck & skimmers (10%) 11, S Concrete deck & skimmers (10%) 11, S Concrete deck & skimmers (100%) 13, S Pool deck furniture (2%) 6,7 6,7 6,7 6,7 6,7 149 S Pool deck furniture (2%) 6,7 2,393 2,393 4,361 6,7 6,7 10 S Pool deck furniture (2%) 6,7 11 S Pool deck furniture (2%) 6,7 12 S Guard stands, ladders, railings, etc.sw 20, S Aluminum fence, pool perimeter 27, S Water slide 20,000 1 S In-pool features (brella, beach, etc) 36,000 STRATFORD (S) SITE IMPROVEME 16 S Parking area - replace pavement 39,27 17 S Asphalt pavement interim cycle 1 4,90 4,90 4,90 4,90 4,90 18 S Asphalt pavement interim cycle 2, ,147, S Asphalt pavement interim cycle 3, S Concrete flatwork and curb & gutter 1,000 1,000 1, , , S Parking bay marking

187 Cash Flow Method Accounting Summary - Page CF8 Recreation Reserve September 20, RECREATI16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 162 S Streetlight 12,600 STRATFORD (S) EXTERIOR, INTER 163 S Asphalt shingle roofing 7, S Gutters & downspouts 1, S Tuckpoint masonry facade (10%) 2, S Exterior openings 10, S HVAC system 16, S Water heater 9,000 EQUIPMENT 169 CC Cameras - Security 8,000 2,834 2,834,166 8,000 8, CC Computer - at pool 2,000 2,000 2,000 2, , BEA Cameras - Security 8,000 2,834 2,834,166 8,000 8, BEA Computer - at pool 2,000 2,000 2,000 2, , B Cameras - Security 8,000 2,834 2,834,166 8,000 8, B Cameras - Security 8,000 2,834 2,834,166 8,000 8, B Commercial Kitchen Appliances 1,000 4,03 4, B Audio/Video System 80,000 28,344 28,344 1,66 80,000 80, S Cameras - Security 8,000 2,834 2,834,166 8,000 8, S Computer - at pool 2,000 2,000 2,000 2, ,600

188 Component Method - Page CM1 Recreation Reserve September 20, RECREATI16 COMPONENT METHOD $206,648 COMPONENT METHOD RECOMMENDED ANNUAL FUNDING OF REPLACEMENT RESERVES IN THE STUDY YEAR, General. The Component Method (also referred to as the Full Funded Method) is a very conservative mathematical model developed by HUD in the early 1980s. Each of the 178 Projected Replacements listed in the Replacement Reserve Inventory is treated as a separate account. The Beginning Balance is allocated to each of the individual accounts, as is all subsequent funding of Replacement Reserves. These funds are "locked" in these individual accounts and are not available to fund other Projected Replacements. The calculation of Recommended Annual Funding of Replacement Reserves is a multi-step process outlined in more detail on Page CM2. Component Method - Cumulative Receipts and Expenditures Graph $6,000,000 Component Method - Cumulative Receipts Component Method - Year End Balance Projected Replacements - Cumulative Expenditures $,611,934 $,000,000 $4,000,000 $3,991,068 $3,000,000 $2,000,000 $1,620,866 $1,000,000 $

189 Component Method - Page CM2 Recreation Reserve September 20, RECREATI16 COMPONENT METHOD (cont'd) Current Funding Objective. A Current Funding Objective is calculated for each of the Projected Replacements listed in the Replacement Reserve Inventory. Replacement Cost is divided by the Normal Economic Life to determine the nominal annual contribution. The Remaining Economic Life is then subtracted from the Normal Economic Life to calculate the number of years that the nominal annual contribution should have been made. The two values are then multiplied to determine the Current Funding Objective. This is repeated for each of the 178 Projected Replacements. The total, $66,308, is the Current Funding Objective. For an example, consider a very simple Replacement Reserve Inventory with one Projected Replacement, a fence with a $1,000 Replacement Cost, a Normal Economic Life of 10 years, and a Remaining Economic Life of 2 years. A contribution to Replacement Reserves of $100 ($1, years) should have been made in each of the previous 8 years (10 years - 2 years). The result is a Current Funding Objective of $800 (8 years x $100 per year). Funding Percentage. The Funding Percentage is calculated by dividing the Beginning Balance ($300,000) by the Current Funding Objective ($66,308). At Recreation Reserve the Funding Percentage is 4.7% Allocation of the Beginning Balance. The Beginning Balance is divided among the 178 Projected Replacements in the Replacement Reserve Inventory. The Current Funding Objective for each Projected Replacement is multiplied by the Funding Percentage and these funds are then "locked" into the account of each item. If we relate this calculation back to our fence example, it means that the Association has not accumulated $800 in Reserves (the Funding Objective), but rather at 4.7 percent funded, there is $366 in the account for the fence. Annual Funding. The Recommended Annual Funding of Replacement Reserves is then calculated for each Projected Replacement. The funds allocated to the account of the Projected Replacement are subtracted from the Replacement Cost. The result is then divided by the number of years until replacement, and the result is the annual funding for each of the Projected Replacements. The sum of these is $206,648, the Component Method Recommended Annual Funding of Replacement Reserves in the Study Year (2016). In our fence example, the $366 in the account is subtracted from the $1,000 Total Replacement Cost and divided by the 2 years that remain before replacement, resulting in an annual deposit of $317. Next year, the deposit remains $317, but in the third year, the fence is replaced and the annual funding adjusts to $100. Adjustment to the Component Method for interest and inflation. The calculations in the Replacement Reserve Analysis do not account for interest earned on Replacement Reserves, inflation, or a constant annual increase in Annual Funding of Replacement Reserves. The Component Method is a very conservative method and if the Analysis is updated regularly, adequate funding will be maintained without the need for adjustments. Component Method Data - Years 1 through 30 Year Beginning balance $300,000 Recommended annual funding $206,648 $20,381 $197,84 $192,460 $188,96 $187,12 $181,643 $180,262 $176,091 $17,888 Interest on reserves Expenditures $2,860 $32,723 $48,384 $7,440 $28,36 $184,301 $162,089 $139,030 $0,998 $37,397 Year end balance $03,788 $676,446 $82,907 $942,928 $1,103,19 $1,106,370 $1,12,92 $1,167,16 $1,292,249 $1,430,740 Cumulative Expenditures $2,860 $3,83 $83,967 $19,407 $187,772 $372,072 $34,161 $673,192 $724,189 $761,86 Cumulative Receipts $06,648 $712,029 $909,874 $1,102,33 $1,290,931 $1,478,442 $1,660,086 $1,840,348 $2,016,439 $2,192,326 Year Recommended annual funding $17,13 $17,04 $174,980 $174,064 $173,763 $173,60 $173,38 $173,38 $171,74 $171,106 Interest on reserves Expenditures $67,66 $14,236 $200,044 $109,473 $182,091 $9,991 $17,11 $230,906 $164,214 $27,3 Year end balance $1,38,687 $1,699,497 $1,674,434 $1,739,024 $1,730,697 $1,844,26 $2,000,08 $1,942,961 $1,90,00 $1,846,21 Cumulative Expenditures $829,12 $843,388 $1,043,431 $1,12,904 $1,334,99 $1,394,987 $1,412,102 $1,643,008 $1,807,222 $2,082,78 Cumulative Receipts $2,367,839 $2,42,88 $2,717,86 $2,891,929 $3,06,692 $3,239,22 $3,412,610 $3,8,969 $3,77,722 $3,928,828 Year Recommended annual funding $170,970 $169,438 $169,438 $167,710 $167,64 $167,613 $167,613 $167,613 $167,613 $167,44 Interest on reserves Expenditures $263,991 $23,11 $20,196 $4,43 $83,060 $48,633 $13,17 $10,641 $342,370 $313,426 Year end balance $1,73,230 $1,899,3 $1,48,79 $1,661,961 $1,746,6 $1,86,36 $1,879,632 $1,941,60 $1,766,847 $1,620,866 Cumulative Expenditures $2,346,69 $2,369,683 $2,889,879 $2,944,422 $3,027,482 $3,076,114 $3,229,631 $3,33,271 $3,677,641 $3,991,068 Cumulative Receipts $4,099,798 $4,269,236 $4,438,674 $4,606,384 $4,774,038 $4,941,60 $,109,263 $,276,876 $,444,489 $,611,934

190 Component Method Accounting Summary - Page CM3 Recreation Reserve September 20, RECREATI16 COMPONENT METHOD ACCOUNTING SUMMARY This Recreation Reserve - Component Method Accounting Summary is an attachment to the Recreation Reserve - Replacement Reserve Study dated September 20, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Component Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. COMPONENT METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 178 Projected Replacements listed in the Recreation Reserve Replacement Reserve Inventory has been assigned to one of 1 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Component Method. m THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $300,000 Beginning Balance (at the start of the Study Year) and the $609,874 of additional Replacement Reserve funding from 2016 to 2018 (as calculated in the Replacement Reserve Analysis) to each of the 178 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using the Component Method as outlined in the Replacement Reserve Analysis. The calculated data includes: m Identification and estimated cost of each Projected Replacement schedule in years 2016 through m Allocation of the $300,000 Beginning Balance to the Projected Replacements by the Component Method. m Allocation of the $609,874 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by the Component Method.

191 Component Method Accounting Summary - Page CM4 Recreation Reserve September 20, RECREATI COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 178 Projected Replacements included in the Recreation Reserve Replacement Reserve Inventory has been assigned to one of the 1 categories listed in TABLE CM1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $300,000 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $06,648 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $2,860. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE 2 to 47 years COMMUNITY CENTER (CC) LOCKER ROOM to 60 years 2 to 47 years $87,604 $69,69 $27,066 $96,761 COMMUNITY CENTER (CC) POOL EQUIPME1 to 20 years 2 to 7 years $2,100 $1,871 $6,81 $22,68 COMMUNITY CENTER (CC) POOL DECK 12 to 30 years 1 to 20 years $302,96 $3,207 $18,730 $71,938 BEACON CREST (BEA) LOCKER ROOMS & to 60 years 3 to 2 years $412,680 $31,638 $18,404 $0,042 BEACON CREST (BEA) POOL EQUIPMENT 1 to 20 years 1 to 13 years $46,400 $9,902 $6,102 $16,003 BEACON CREST (BEA) POOL DECK 10 to 30 years 1 to 22 years $319,013 $46,747 $19,287 $66,034 BEACON CREST (BEA) SITE IMPROVEMEN 4 to 30 years 1 to 22 years $40,907 $6,402 $3,14 $9,916 BEACON CREST (BEA) EXTERIOR, INTERIO to 0 years 0 to 42 years $149,338 $20,368 $10,977 $2,860 $28,486 BRAMBLETON CORNER (B) LOCKER ROOM to 60 years 3 to 8 years $688,20 $11,312 $26,061 $37,373 BRAMBLETON CORNER (B) POOL DECK 12 to 30 years 2 to 28 years $261,43 $14,379 $12,21 $26,630 STRATFORD (S) LOCKER ROOMS & POOLS to 60 years 4 to 9 years $44,666 $17,39 $17,39 STRATFORD (S) POOL DECK 12 to 30 years 3 to 29 years $298,881 $9,00 $13,441 $22,446 STRATFORD (S) SITE IMPROVEMENTS 4 to 3 years 3 to 34 years $68,988 $3,383 $4,826 $8,209 STRATFORD (S) EXTERIOR, INTERIOR & E 10 to 2 years 9 to 24 years $46,478 $2,662 $2,662 EQUIPMENT to 10 years 3 to 8 years $141,000 $8,091 $19,117 $27,207

192 Component Method Accounting Summary - Page CM Recreation Reserve September 20, RECREATI COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 178 Projected Replacements included in the Recreation Reserve Replacement Reserve Inventory has been assigned to one of the 1 categories listed in TABLE CM2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $03,788 on January 1, m Total reserve funding (including the Beginning Balance) of $712,029 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2017 being accomplished in 2017 at a cost of $32,723. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) LOCKER ROOM to 60 years 1 to 46 years $87,604 $96,761 $27,066 $123,828 COMMUNITY CENTER (CC) POOL EQUIPME1 to 20 years 1 to 6 years $2,100 $22,68 $6,81 $29,00 COMMUNITY CENTER (CC) POOL DECK 12 to 30 years 0 to 19 years $302,96 $71,938 $18,730 $8,13 $82,33 BEACON CREST (BEA) LOCKER ROOMS & to 60 years 2 to 1 years $412,680 $0,042 $18,404 $68,446 BEACON CREST (BEA) POOL EQUIPMENT 1 to 20 years 0 to 12 years $46,400 $16,003 $6,102 $12,400 $9,70 BEACON CREST (BEA) POOL DECK 10 to 30 years 0 to 21 years $319,013 $66,034 $19,287 $8,980 $76,342 BEACON CREST (BEA) SITE IMPROVEMEN 4 to 30 years 0 to 21 years $40,907 $9,916 $3,14 $3,208 $10,222 BEACON CREST (BEA) EXTERIOR, INTERIO to 0 years 1 to 41 years $149,338 $28,486 $9,711 $38,196 BRAMBLETON CORNER (B) LOCKER ROOM to 60 years 2 to 7 years $688,20 $37,373 $26,061 $63,434 BRAMBLETON CORNER (B) POOL DECK 12 to 30 years 1 to 27 years $261,43 $26,630 $12,21 $38,881 STRATFORD (S) LOCKER ROOMS & POOLS to 60 years 3 to 8 years $44,666 $17,39 $17,39 $34,790 STRATFORD (S) POOL DECK 12 to 30 years 2 to 28 years $298,881 $22,446 $13,441 $3,886 STRATFORD (S) SITE IMPROVEMENTS 4 to 3 years 2 to 33 years $68,988 $8,209 $4,826 $13,03 STRATFORD (S) EXTERIOR, INTERIOR & E 10 to 2 years 8 to 23 years $46,478 $2,662 $2,662 $,32 EQUIPMENT to 10 years 2 to 7 years $141,000 $27,207 $19,117 $46,324

193 Component Method Accounting Summary - Page CM6 Recreation Reserve September 20, RECREATI COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 178 Projected Replacements included in the Recreation Reserve Replacement Reserve Inventory has been assigned to one of the 1 categories listed in TABLE CM3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $676,446 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $909,874 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2018 being accomplished in 2018 at a cost of $48,384. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE COMMUNITY CENTER (CC) LOCKER ROOM to 60 years 0 to 4 years $87,604 $123,828 $27,066 $13,00 $137,394 COMMUNITY CENTER (CC) POOL EQUIPME1 to 20 years 0 to years $2,100 $29,00 $6,81 $17,300 $19,01 COMMUNITY CENTER (CC) POOL DECK 12 to 30 years 2 to 18 years $302,96 $82,33 $16,890 $99,423 BEACON CREST (BEA) LOCKER ROOMS & to 60 years 1 to 0 years $412,680 $68,446 $18,404 $86,80 BEACON CREST (BEA) POOL EQUIPMENT 1 to 20 years to 19 years $46,400 $9,70 $3,072 $12,778 BEACON CREST (BEA) POOL DECK 10 to 30 years 0 to 20 years $319,013 $76,342 $17,26 $3,000 $90,98 BEACON CREST (BEA) SITE IMPROVEMEN 4 to 30 years 0 to 20 years $40,907 $10,222 $2,879 $286 $12,814 BEACON CREST (BEA) EXTERIOR, INTERIO to 0 years 0 to 40 years $149,338 $38,196 $9,711 $6,800 $41,107 BRAMBLETON CORNER (B) LOCKER ROOM to 60 years 1 to 6 years $688,20 $63,434 $26,061 $89,494 BRAMBLETON CORNER (B) POOL DECK 12 to 30 years 0 to 26 years $261,43 $38,881 $12,21 $7,498 $43,634 STRATFORD (S) LOCKER ROOMS & POOLS to 60 years 2 to 7 years $44,666 $34,790 $17,39 $2,18 STRATFORD (S) POOL DECK 12 to 30 years 1 to 27 years $298,881 $3,886 $13,441 $49,327 STRATFORD (S) SITE IMPROVEMENTS 4 to 3 years 1 to 32 years $68,988 $13,03 $4,826 $17,860 STRATFORD (S) EXTERIOR, INTERIOR & E 10 to 2 years 7 to 22 years $46,478 $,32 $2,662 $7,987 EQUIPMENT to 10 years 1 to 6 years $141,000 $46,324 $19,117 $6,441

194 Component Method Accounting Summary - Page CM7 Recreation Reserve September 20, RECREATI16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CM4 below details the allocation of the $300,000 Beginning Balance, as reported by the Association and the $609,874 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 178 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $300,000 on January 1, m Replacement Reserves on Deposit totaling $03,788 on January 1, m Replacement Reserves on Deposit totaling $676,446 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $909,874 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $83,967. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance COMMUNITY CENTER (CC) LOCK 1 CC Locker Room renovation - major 90,000 16,46 4,086 20,41 4,086 24,627 4,086 28,713 2 CC Locker Room renovation - minor 13,00 2,468 3,677 6,146 3,677 9,823 3,677 (13,00) 3 CC Main pool structure 381,384 34,866 7,219 42,08 7,219 49,30 7,219 6,24 4 CC Main pool whitecoat 37,079 2,421,776 8,198,776 13,974,776 19,70 CC Main pool waterline tile 6,360 2, , , ,218 6 CC Main pool coping 21,200 6,922 2,380 9,302 2,380 11,681 2,380 14,061 7 CC Main pool cover 11, ,87 2,63 1,87 4,492 1,87 6,348 8 CC Wading pool structure 10, , , ,601 9 CC Wading pool whitecoat 1, CC Wading pool waterline tile CC Wading pool coping 2, , , ,68 12 CC Wading pool cover CC Spa pool structure 7, , CC Spa pool whitecoat CC Spa pool waterline tile CC Spa pool coping 2, , , CC Spa pool cover COMMUNITY CENTER (CC) POOL 18 CC Main pool filter system 9,600 2, , ,37 871, CC Main pool pump 4,200 1, , , ,29 20 CC Main pool motor 7. hp 3,000 1, , , (3,000) 21 CC Wading pool filter system 2, , CC Wading pool pump & motor 1. hp 1, , , (1,800) 23 CC Spa filter system 2, , CC Spa pump & motor 3 hp 3,000 1, , , (3,000) 2 CC Spa jet pump & motor hp 4,00 1, , ,49 91 (4,00) 26 CC Spa heater,000 1,828 1,07 2,886 1,07 3,943 1,07 (,000) 27 CC Pool electric - renovation,000 1, , , , CC Pool equipment room - renovation 12,000 3,291 1,089 4,380 1,089,468 1,089 6,7 COMMUNITY CENTER (CC) POOL 29 CC Concrete deck & skimmers (10%) 12,710 4,648 1,344,992 1,344 7,33 1,344 8, CC Concrete deck & skimmers (10%) 12,710 3, ,00 821, , CC Concrete deck & skimmers (10%) 12,710 2, , , ,86 32 CC Concrete deck & skimmers (100%) 162,70 22,312 6,68 28,997 6,68 3,683 6,68 42, CC Aluminum fence, wading pool 3, CC Aluminum fence, pool perimeter 31,320 4,29 1,287,82 1,287 6,869 1,287 8,16 3 CC Pool deck furniture (2%) 8,13 3,099 2,18,617 2,18 (8,13) CC Pool deck furniture (2%) 8,13 2,169 1,193 3,362 1,193 4,6 1,193, CC Pool deck furniture (2%) 8,13 1, , , ,82 38 CC Pool deck furniture (2%) 8, , , , CC Guard stands, ladders, railings, etc. 20,000 3, ,6 908, ,381

195 Component Method Accounting Summary - Page CM8 Recreation Reserve September 20, RECREATI16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 40 CC Wood arbors, pool deck 14,400 4,608 1,632 6,240 1,632 7,872 1,632 9,04 BEACON CREST (BEA) LOCKER R 41 BEA Locker Room renovation - major 7,000 7,999 2,913 10,912 2,913 13,82 2,913 16, BEA Locker Room renovation - minor 11,20 1,028 2, 3,84 2, 6,139 2, 8,69 43 BEA Main pool structure 240,624 12,832 4,298 17,130 4,298 21,428 4,298 2, BEA Main pool whitecoat 23,394 4,83 4,703 9,286 4,703 13,988 4,703 18,691 4 BEA Main pool waterline tile 3, BEA Main pool coping 12, , , ,63 47 BEA Main pool cover 7,20 1,473 1,12 2,98 1,12 4,496 1,12 6, BEA Wading pool structure 21,096 1, , , ,2 49 BEA Wading pool whitecoat 2, , ,639 0 BEA Wading pool waterline tile BEA Wading pool coping 3, BEA Wading pool cover BEA Spa pool structure 7, BEA Spa pool whitecoat BEA Spa pool waterline tile BEA Spa pool coping 2, BEA Spa pool cover BEACON CREST (BEA) POOL EQU 8 BEA Main pool filter system 2, , (2,400) BEA Main pool pump 4, , , BEA Main pool motor 7. hp 3, BEA Main pool heater (exterior) 3, , , BEA Wading pool filter system 2, , (2,000) BEA Wading pool pump & motor 1. h 1, BEA Spa filter system 2, , (2,000) BEA Spa pump & motor 1. hp 3, BEA Spa jet pump & motor hp 4, , , , BEA Spa heater 2, BEA Pool electric - renovation 6,000 2,468 1,766 4,234 1,766 (6,000) BEA Pool equipment room - renovation 12,000 1, , , ,246 BEACON CREST (BEA) POOL DEC 70 BEA Concrete deck & skimmers (10%) 14,966,017 1,244 6,260 1,244 7,04 1,244 8, BEA Concrete deck & skimmers (10%) 14,966 3, ,730 83, , BEA Concrete deck & skimmers (10%) 14,966 2, , , ,77 73 BEA Concrete deck & skimmers (100% 179,9 19,1 6,976 26,131 6,976 33,106 6,976 40, BEA Aluminum fence, wading pool 4, BEA Aluminum fence, pool perimeter 16,800 1, , , , BEA Pool deck furniture (2%) 8,980 3,421 2,780 6,200 2,780 (8,980) BEA Pool deck furniture (2%) 8,980 2,394 1,317 3,711 1,317,029 1,317 6, BEA Pool deck furniture (2%) 8,980 1, , , , BEA Pool deck furniture (2%) 8, , , , BEA Guard stands, ladders, railings, etc 20,000 2, , , , BEA Tuckpoint stone perimeter wall 3, , , (3,000) 82 BEA Gas fireplace 10,000 2, , , , BEA Gas grille & cooking station 4, , , ,287 BEACON CREST (BEA) SITE IMPRO 84 BEA Parking area - replace pavement 1,392 2,638 1,27 3,914 1,27,189 1,27 6,464 8 BEA Asphalt pavement interim cycle 1 1, BEA Asphalt pavement interim cycle 2 1, , (1,966) BEA Asphalt pavement interim cycle 3 2, , , BEA Concrete curb & gutter (2%) (816) BEA Flatwork (2%) (426) BEA Parking bay marking (286) 91 BEA Decorative post lights & poles 9, , , , BEA Decorative wall lights 9, , , ,009 BEACON CREST (BEA) EXTERIOR 93 BEA Asphalt shingle roofing 22,00 2,419 1,033 3,42 1,033 4,48 1,033,19 94 BEA Gutters & downspouts 3, BEA Cementitious siding & trim 2,200 1, , , ,28 96 BEA Tuckpoint masonry facade (10%) 2,860 1,307 1,3 (2,860) BEA Windows (39) 21,240 2, , ,321 99, BEA Exterior doors - storefront 6, , , , BEA Exterior doors - metal 9,600 1, , , , BEA Exterior doors - glazed 4, ,126

196 Component Method Accounting Summary - Page CM9 Recreation Reserve September 20, RECREATI16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 101 BEA roll-up door 1, BEA Clubroom FF&E renovation 12,000 1, , , , BEA Clubroom FF&E minor renovatio 1, , (1,800) 104 BEA Family restroom renovation 9,000 1, , , ,18 10 BEA HVAC system 16,000 3,413 1,73 4,986 1,73 6,60 1,73 8, BEA Water heater 9,000 1, , , ,7 107 BEA Security & monitoring, ,362 2,276 1,362 3,638 1,362 (,000) BRAMBLETON CORNER (B) LOCK 108 B Locker Room renovation - major 7,000 1,143 2,47 3,690 2,47 6,236 2,47 8, B Locker Room renovation - minor 11,20 1,028 2, 3,84 2, 6,139 2, 8, B Main pool structure 474,912 3,618 7,988 11,606 7,988 19,94 7,988 27, B Main pool whitecoat 46,172 3,01 7,193 10,208 7,193 17,401 7,193 24, B Main pool waterline tile 6, , B Main pool coping 20, ,010 1,460 1,010 2,470 1,010 3, B Main pool cover 14, ,312 3,281 2,312,93 2,312 7,90 11 B Main pool filter system 11, , , B Main pool pump 4, B Main pool motor 3, B Main pool feature pump & motor 3, B Pool electric - renovation, B Pool equipment room - renovation 12, , ,126 BRAMBLETON CORNER (B) POOL 121 B Concrete deck & skimmers (10%) 12,496 3, , ,396 67, B Concrete deck & skimmers (10%) 12,496 2, , , , B Concrete deck & skimmers (10%) 12,496 1, , , , B Concrete deck & skimmers (100%) 149,9 2,28,092 7,377,092 12,469,092 17,61 12 B Pool deck furniture (2%) 7,498 2,70 1,642 4,213 1,642,8 1,642 (7,498) 126 B Pool deck furniture (2%) 7,498 1, , , , B Pool deck furniture (2%) 7, , , , B Pool deck furniture (2%) 7, , , B Guard stands, ladders, railings, etc.sw 20, , , B Aluminum fence, pool perimeter 24, , , ,811 STRATFORD (S) LOCKER ROOMS 131 S Locker Room renovation - major 7,000 2,00 2,00 2,00,000 2,00 7, S Locker Room renovation - minor 11,20 2,20 2,20 2,20 4,00 2,20 6, S Main pool structure 272,808 4,47 4,47 4,47 9,094 4,47 13, S Main pool whitecoat 26,23 3,789 3,789 3,789 7,78 3,789 11, S Main pool waterline tile 4, S Main pool coping 16, , , S Main pool cover 8,2 1,218 1,218 1,218 2,436 1,218 3, S Main pool filter system 11, , , S Main pool pump 4, S Main pool motor 3, S Main pool feature pump & motor 3, S Pool electric - renovation, S Pool equipment room - renovation 12, , ,800 STRATFORD (S) POOL DECK 144 S Concrete deck & skimmers (10%) 11,28 2, , , , S Concrete deck & skimmers (10%) 11,28 1, , , , S Concrete deck & skimmers (10%) 11, , , , S Concrete deck & skimmers (100%) 13,090 4,03 4,03 4,03 9,006 4,03 13, S Pool deck furniture (2%) 6,7 2,08 1,174 3,232 1,174 4,406 1,174, S Pool deck furniture (2%) 6,7 1, , , , S Pool deck furniture (2%) 6, , , , S Pool deck furniture (2%) 6, , ,9 12 S Guard stands, ladders, railings, etc.sw 20, , , S Aluminum fence, pool perimeter 27, , , S Water slide 20,000 1,000 1,000 1,000 2,000 1,000 3,000 1 S In-pool features (brella, beach, etc) 36,000 1,800 1,800 1,800 3,600 1,800,400 STRATFORD (S) SITE IMPROVEME 16 S Parking area - replace pavement 39,27 2,470 2,470 2,470 4,941 2,470 7, S Asphalt pavement interim cycle 1 4,90 1, , , , S Asphalt pavement interim cycle 2,049 1, , , ,61 19 S Asphalt pavement interim cycle 3, , , , S Concrete flatwork and curb & gutter 1, S Parking bay marking

197 Component Method Accounting Summary - Page CM10 Recreation Reserve September 20, RECREATI16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 162 S Streetlight 12, ,080 STRATFORD (S) EXTERIOR, INTER 163 S Asphalt shingle roofing 7, S Gutters & downspouts 1, S Tuckpoint masonry facade (10%) 2, S Exterior openings 10, , S HVAC system 16,000 1,067 1,067 1,067 2,133 1,067 3, S Water heater 9, , ,800 EQUIPMENT 169 CC Cameras - Security 8, ,078 1,3 1,078 2,612 1,078 3, CC Computer - at pool 2, , , BEA Cameras - Security 8, ,078 1,3 1,078 2,612 1,078 3, BEA Computer - at pool 2, , , B Cameras - Security 8, ,078 1,3 1,078 2,612 1,078 3, B Cameras - Security 8, ,078 1,3 1,078 2,612 1,078 3, B Commercial Kitchen Appliances 1, ,90 2,276 1,90 3,867 1,90, B Audio/Video System 80,000 4,71 10,776 1,347 10,776 26,122 10,776 36, S Cameras - Security 8, ,078 1,3 1,078 2,612 1,078 3, S Computer - at pool 2, , ,46

198 REPLACEMENT RESERVE REPORT - FY 2016 BRAMBLETON TOWN HOME RESERVE BRAMBLETON, VIRGINIA BRAMBLETON COMMUNITY ASSOCIATION REPLACEMENT RESERVE REPORT FY 2016 Property Management: Brambleton Community Association Mr. Richard Stone 4249 Ryan Road, Suite 210 Brambleton, Virginia Tel: rick.stone@brambleton.org Consultant: 929 West Street, Suite 310 Annapolis, Maryland Tel: Fax: Toll Free: July 30, 201 and revised September 20, 201

199 INTENTIONALLY LEFT BLANK

200 Replacement Reserve Study BRAMBLETON TOWN HOME RESERVE BRAMBLETON, VIRGINIA Section A Replacement Reserve Analysis Executive Summary - A1 Reserve Status & Funding Plan - A1 General Information - A2 Cash Flow Method - A4 Component Method - A6 Current Association Funding - A8 Reserve Analysis - Comments - A9 Section B Replacement Reserve Inventory Replacement Reserve Inventory General Information - B1 Replacement Reserve Inventory Comments - B2 Schedule of Projected Replacements and Exclusions - B3 Scope. Brambleton is a community association in Brambleton, Virginia. Construction began at Brambleton in the early 2000's and continues today. The common elements of the community are divided into four inventories, General, Town Home, Common Drive, and Recreation. This Study addresses components in the Brambleton Town Home Reserve including:! Asphalt pavement! Concrete sidewalks! Concrete curb & gutter! Parking bay marking! Interim work on the asphalt pavement Section C Projected Annual Replacements Projected Annual Replacements General Information - C1 Reserve Analysis & Inventory Policies, Procedure, & Administration - C1 Calendar of Projected Annual Replacements - C2 Level of Service. This study has been performed as a Level II Update, With Site Visit/On-Site Review as defined under the National Reserve Study Standards that have been adopted by the Community Associations Institute. As such, the component inventory is based on the study that was performed by our firm in August This information was adjusted to reflect changes to the inventory that were provided by the community manager, and the quantities were adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings. The condition of all commonly-owned components was ascertained from a site visit and the visual inspection of each component by the Analyst. The life expectancy and the value of components are provided based in part on these observations. The fund status and funding plan have been derived from analysis of this data. Section D Condition Assessment Section E Attachments Supplemental Photographs (included in the Brambleton General Reserve - Supplemental Photographs) Appendix

201 Purpose. The purpose of this Replacement Reserve Study is to provide Brambleton, (hereinafter called the Association), with an inventory of the common community facilities and infrastructure components that require periodic replacement, a general view of the condition of these items, and an effective financial plan to fund projected periodic replacements. Inventory of items owned by the Association. Section B - Replacement Reserve Inventory, lists the Projected Replacements, which are commonly owned items that require periodic replacement using funding from Replacement Reserves. The Replacement Reserve Inventory also provides information about Excluded Items, which are items whose replacement is not scheduled for funding from Replacement Reserves. Condition of items owned by the Association. Section B - Replacement Reserve Inventory includes our estimates of the normal economic life and the remaining economic life for the Projected Replacements, those commonly owned items whose replacement is scheduled for funding from Replacement Reserves. Section C - Calendar of Projected Annual Replacements, provides a yearby-year listing of the Projected Replacements, based upon the data in the Inventory. Several of the items owned by the Association are discussed in more detail in Section D - Condition Assessment. Financial plan. To protect the appearance, value, and safety of the property, it is essential the Association have a financial plan that provides funding for the Projected Replacements. In conformance with American Institute of Certified Public Accountant guidelines, Section A - Replacement Reserve Analysis, evaluates the current funding of Replacement Reserves as reported by the Association, and recommends annual funding of Replacement Reserves by two generally accepted accounting methods; the Cash Flow Method and the Component Method. Section A - Replacement Reserve Analysis includes graphic and tabular presentations of these methods and current Association funding. An Executive Summary of these calculations is provided on Page A1. Basis. The data contained in this Replacement Reserve Study is based upon the following: The Request for Proposal submitted and executed by the Association. The August 2011, Replacement Reserve Study, prepared by Miller - Dodson Associates. Our visual evaluation and measurements in June and July, 201. Miller - Dodson Associates has visually inspected the common elements of the property in order to ascertain the remaining useful life and the replacement costs of these components. Acknowledgment. Miller - Dodson Associates would like to acknowledge the assistance and input of Richard Stone and Shantil Moyer. Analyst's Credential. This study has been performed by Wm. Bruce Bennett. Mr. Bennett holds a Bachelors of Architecture Degree from the Georgia Institute of Technology and did his graduate studies at the Technishe Universitat Hannover, in West Germany as the 1974 World Student Fund Fellow. From 1976 to 1991, Mr. Bennett ran a design-build firm in Northern Virginia. Since 1991 he has been a Reserve Specialist (RS) for Miller Dodson Associates. Respectfully Submitted, MILLER DODSON ASSOCIATES, INC. Wm Bruce Bennett Wm. Bruce Bennett, RS, Senior Reserve Analyst

202 Brambleton Town Home Reserve Condition Assessment - Page D1 July 30, 201 and revised September 20, 201 CONDITION ASSESSMENT General Comments. Miller Dodson Associates conducted a Reserve Study at Brambleton in June and July, 201. The property is in good condition when compared to other recent and in-progress communities. A review of the Replacement Reserve Inventories will show that we are anticipating most of the components achieving their normal economic lives. Scope. This Brambleton Town Home Reserve - Replacement Reserve Study has been prepared in conjunction with three other Studies (General, Common Drive, & Recreation) that in combination, address the common elements installed throughout the community. The Brambleton General Reserve - Replacement Reserve Study contains components that are the responsibility of the entire community and when the same components exist in the General Reserve and one of the other Reserves, we have consolidated comments in the Brambleton General Reserve - Condition Assessment. This Brambleton Town Home Reserve - Replacement Reserve Study includes a very limited group of components that are specific to and funded by the town home sections of the community. The only components included in the Brambleton Town Home Reserve - Replacement Reserve Inventory are the asphalt pavement and concrete components installed within the boundaries of the town home sections of the community. Supplemental Photographs. Supplemental photographs of the components included in the Brambleton Town Home Reserve - Replacement Reserve Inventory have been consolidated in the Brambleton General Reserve - Supplemental Photographs. Site plans and drawings. The comments on the site plans and drawings made in the Brambleton General Reserve - Condition Assessment are appropriate to, but not duplicated in this Brambleton Town Home Reserve - Condition Assessment. Location. In the General Reserve - Condition Assessment, we included a description and two maps detailing the systems of street names, Sections, and Sectors used to identify the common elements of the community. The same comments are appropriate to, but not duplicated in this Brambleton Town Home Reserve - Condition Assessment. For reference, the two maps are duplicated below:

203 Brambleton Town Home Reserve Condition Assessment - Page D2 July 30, 201 and revised September 20, 201 Asphalt pavement and concrete components. As noted above the only components included in the Brambleton Town Home Replacement Reserve Inventory are the concrete components and approximately 18,738 square yards of asphalt pavement. The August 2011 Replacement Reserve Study included components with a total one-time replacement cost of $1,873,174. This Study includes components with a one time replacement cost of $4,689,948. Similar concrete component and asphalt pavement installations are located adjacent to the Community Center, at the three Pool/Recreation Facilities, and at the Park and Ride Lot. These components are included in the Brambleton General Reserve - Replacement Reserve Inventory and we have made detailed recommendations in the Brambleton General Reserve - Condition Assessment for the maintenance, repair, and replacement of these components. The same comments are appropriate to, but not duplicated in this Brambleton Town Home Reserve - Condition Assessment. This Condition Assessment is based upon our visual survey of the property. The sole purpose of the visual survey was an evaluation of the common elements of the property to ascertain the remaining useful life and the replacement costs of these common elements. Our evaluation assumed that all components met building code requirements in force at the time of construction. Our visual survey was conducted with care by experienced persons, but no warranty or guarantee is expressed or implied. End of Condition Assessment

204 Replacement Reserve Analysis - Page A1 Town Home Reserve September 30, TOWN HOM16 EXECUTIVE SUMMARY The Town Home Reserve Replacement Reserve Analysis uses the Cash Flow Method (CFM) to calculate Replacement Reserve funding for the periodic replacement of the 204 Projected Replacements identified in the Replacement Reserve Inventory. $313,244 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR THE STUDY YEAR, 2016 We recommend the Association adopt a Replacement Reserve Funding Plan based on the annual funding recommendation above. Inflation adjusted funding for subsequent years is shown on Page A. Town Home Reserve reports a Starting Balance of $00,000 and Annual Funding totaling $82,692. Current funding is inadequate to fund the $12,269,078 of Projected Replacements scheduled in the Replacement Reserve Inventory over the 40-year Study Period. See Page A3 for a more detailed evaluation. #1 - Cumulative Replacement Reserve Funding and Expenditures Graph $1,000,000 Cash Flow Method - Cumulative Receipts Current Funding - Cumulative Receipts Projected Replacements - Cumulative Expenditures 12,03,76 $10,000,000 $12,269,078 $,000,000 3,807,680 $ The Current Funding Objective as calculated by the Component Method (Fully Funded) is $1,067,31 making the reserve account 46.8% funded. See the Appendix for more information on this method.

205 Replacement Reserve Analysis - Page A2 Town Home Reserve September 30, TOWN HOM16 REPLACEMENT RESERVE ANALYSIS - GENERAL INFORMATION The Town Home Reserve Replacement Reserve Analysis calculations of recommended funding of Replacement Reserves by the Cash Flow Method and the evaluation of the Current Funding are based upon the same Study Year, Study Period, Beginning Balance, Replacement Reserve Inventory and Level of Service STUDY YEAR The Association reports that their accounting year begins on January 1, and the Study Year, the first year evaluated by the Replacement Reserve Analysis, begins on January 1, Years STUDY PERIOD The Replacement Reserve Analysis evaluates the funding of Replacement Reserves over a 40-year Study Period. $00,000 STARTING BALANCE The Association reports Replacement Reserves on Deposit totaling $00,000 at the start of the Study Year. Level Two LEVEL OF SERVICE The Replacement Reserve Inventory has been developed in compliance with the National Reserve Study Standards for a Level Two Study, as defined by the Community Associations Institute (CAI). $12,269,078 REPLACEMENT RESERVE INVENTORY - PROJECTED REPLACEMENTS The Town Home Reserve Replacement Reserve Inventory identifies 204 items that will require periodic replacement, that are to be funded from Replacement Reserves. We estimate the cost of these replacements will be $12,269,078 over the 40-year Study Period. The Projected Replacements are divided into 1 major categories starting on Page B3. Pages B1-B2 provide detailed information on the Replacement Reserve Inventory. #2 - Annual Expenditures for Projected Replacements Graph This graph shows annual expenditures for Projected Replacements over the 40-year Study Period. The red line shows the average annual expenditure of $306,727. Section C provides a year by year Calender of these expenditures. $1,200,000 $1,136,682 $1,136,682 $1,000,000 $800,000 $600,000 $48,791 $612,6 $609,762 $48,791 $612,6 $609,762 $400,000 $200,000 $306, year Average $80,824 $122,348 $61,32 $107,17 $410,627 $167,293 $274,360 $76,96 $147,26 $246,344 $81,431 $27,989 $396,238 $284,823 $122,348 $107,17 $414,98 $167,293 $274,360 $76,96 $147,26 $246,344 $81,431 $27,989 $396,238 $284,823 $122,348 $107,17 $414,98 $167,293 $274,360 $76,96 $

206 Replacement Reserve Analysis - Page A3 Town Home Reserve September 30, TOWN HOM16 UPDATING UPDATING OF THE FUNDING PLAN The Association has a responsibility to review the Funding Plan annually. The review should include a comparison and evaluation of actual reserve funding with recommended levels shown on Page A4 and A. The Projected Replacements listed on Page C2 should be compared with any replacements accomplished and funded from Replacement Reserves. Discrepancies should be evaluated and if necessary, the Reserve Study should be updated or a new study commissioned. We recommend annual increases in replacement reserve funding to account for the impact of inflation. Inflation Adjusted Funding is discussed on Page A. UPDATING OF THE REPLACEMENT RESERVE STUDY At a minimum, the Replacement Reserve Study should be professionally updated every three to five years or after completion of a major replacement project. Updating should also be considered if during the annual review of the Funding Plan, discrepancies are noted between projected and actual reserve funding or replacement costs. Updating may also be necessary if there is a meaningful discrepancy between the actual inflation rate and the inflation rate used for the Inflation Adjusted Funding of Replacement Reserves on Page A. ANNUAL EXPENDITURES AND CURRENT FUNDING The annual expenditures that comprise the $12,269,078 of Projected Expenditures over the 40-year Study Period and the impact of the Association continuing to fund Replacement Reserves at the current level are detailed in Table 3. #3 - Table of Annual Expenditures and Current Funding Data - Years 1 through 40 Year Starting Balance $00,000 Projected Replacements ($80,824) ($122,348) ($61,32) ($107,17) ($410,627) ($167,293) ($274,360) ($76,96) ($147,26) ($246,344) Annual Deposit $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 End of Year Balance $01,868 $462,212 $483,2 $49,069 $131,134 $46,33 ($14,13) ($139,039) ($203,603) ($367,2) Cumulative Expenditures ($80,824) ($203,172) ($264,24) ($371,699) ($782,326) ($949,619) ($1,223,979) ($1,300,7) ($1,447,831) ($1,694,17) Cumulative Receipts $82,692 $66,384 $748,076 $830,768 $913,460 $996,12 $1,078,844 $1,161,36 $1,244,228 $1,326,920 Year Projected Replacements ($48,791) ($81,431) ($27,989) ($612,6) ($396,238) ($609,762) ($284,823) ($122,348) ($1,136,682) ($107,17) Annual Deposit $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 End of Year Balance ($833,34) ($832,093) ($1,007,390) ($1,37,262) ($1,80,809) ($2,377,879) ($2,80,009) ($2,619,66) ($3,673,66) ($3,698,139) Cumulative Expenditures ($2,242,966) ($2,324,397) ($2,82,386) ($3,194,90) ($3,91,189) ($4,200,91) ($4,48,773) ($4,608,121) ($,744,804) ($,81,979) Cumulative Receipts $1,409,612 $1,492,304 $1,74,996 $1,67,688 $1,740,380 $1,823,072 $1,90,764 $1,988,46 $2,071,148 $2,13,840 Year Projected Replacements ($414,98) ($167,293) ($274,360) ($76,96) ($147,26) ($246,344) ($48,791) ($81,431) ($27,989) ($612,6) Annual Deposit $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 End of Year Balance ($4,030,046) ($4,114,647) ($4,306,31) ($4,300,219) ($4,364,783) ($4,28,43) ($4,994,33) ($4,993,272) ($,168,69) ($,698,442) Cumulative Expenditures ($6,266,78) ($6,433,871) ($6,708,231) ($6,784,827) ($6,932,083) ($7,178,427) ($7,727,217) ($7,808,648) ($8,066,637) ($8,679,202) Cumulative Receipts $2,236,32 $2,319,224 $2,401,916 $2,484,608 $2,67,300 $2,649,992 $2,732,684 $2,81,376 $2,898,068 $2,980,760 Year Projected Replacements ($396,238) ($609,762) ($284,823) ($122,348) ($1,136,682) ($107,17) ($414,98) ($167,293) ($274,360) ($76,96) Annual Deposit $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 $82,692 End of Year Balance ($6,011,988) ($6,39,08) ($6,741,189) ($6,780,84) ($7,834,83) ($7,89,319) ($8,191,22) ($8,27,826) ($8,467,494) ($8,461,398) Cumulative Expenditures ($9,07,440) ($9,68,202) ($9,970,02) ($10,092,373) ($11,229,0) ($11,336,231) ($11,70,829) ($11,918,122) ($12,192,482) ($12,269,078) Cumulative Receipts $3,063,42 $3,146,144 $3,228,836 $3,311,28 $3,394,220 $3,476,912 $3,9,604 $3,642,296 $3,724,988 $3,807,680 EVALUATION OF CURRENT FUNDING The evaluation of Current Funding (Starting Balance of $00,000 & annual funding of $82,692), is done in today's dollars with no adjustments for inflation or interest earned on Replacement Reserves. The evaluation assumes Replacement Reserves will only be used for the 204 Projected Replacements identified in the Replacement Reserve Inventory and that the Association will continue Annual Funding of $82,692 throughout the 40-year Study Period. Annual Funding of $82,692 is approximately 26 percent of the $313,244 recommended Annual Funding calculated by the Cash Flow Method for 2016, the Study Year. Evaluation of the 204 Projected Replacements calculates an average annual expenditure over the next 40 years of $306,727. Annual funding of $82,692 is 27 percent of the average annual expenditure. Our calculations identify funding shortfalls in 34 years of the Study Period with the initial shortfall in The largest shortfall, $-8,467,494, occurs in 204. All shortfalls can be seen and evaluated in Table 3 above. In summary, Current Funding as reported by the Association and shown above, does not provide adequate funding for the $12,269,078 of Projected Replacements scheduled in the Replacement Reserve Inventory over the Study Period.

207 Replacement Reserve Analysis - Page A4 Town Home Reserve September 30, TOWN HOM16 CASH FLOW METHOD FUNDING $313,244 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR 2016 Recommended Replacement Reserve Funding has been calculated using the Cash Flow Method (also called the Straight Line or Threshold Method). This method calculates a constant annual funding between peaks in cumulative expenditures, while maintaining a Minimum Balance (threshold) in the Peak Years. Peak Years. The First Peak Year occurs in 200 with Replacement Reserves on Deposit dropping to the Minimum Balance after the completion of $11,229,0 of replacements from 2016 to 200. Recommended funding declines from $313,244 in 200 to $260,887 in 201. Peak Years are identified in Chart 4 and Table. Minimum Balance. The calculations assume a Minimum Balance of $234,497 in Replacement Reserves. This is approx. 9 months of average expenditures based on the $306,727, 40-year average annual expenditure. Cash Flow Method Study Period. Cash Flow Method calculates funding for $12,269,078 of expenditures over the 40-year Study Period. It does not include funding for any projects beyond 20 and in 20, the end of year balance will always be the Minimum Balance. #4 - Cash Flow Method - Graph of Cumulative Receipts and Expenditures - Years 1 through 40 $1,000,000 Cash Flow Method - Cumulative Receipts Cash Flow Method - Year End Balance Cumulative Expenditures Peak Year $12,03,76 $10,000,000 $12,269,078 $,000,000 $0 $234, # - Cash Flow Method - Table of Receipts & Expenditures - Years 1 through 40 Year Starting Balance $00,000 Projected Replacements ($80,824) ($122,348) ($61,32) ($107,17) ($410,627) ($167,293) ($274,360) ($76,96) ($147,26) ($246,344) Annual Deposit $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 End of Year Balance $732,420 $923,317 $1,17,210 $1,381,279 $1,283,896 $1,429,847 $1,468,731 $1,70,380 $1,871,368 $1,938,268 Cumulative Expenditures $80,824 $203,172 $264,24 $371,699 $782,326 $949,619 $1,223,979 $1,300,7 $1,447,831 $1,694,17 Cumulative Receipts $813,244 $1,126,489 $1,439,733 $1,72,977 $2,066,222 $2,379,466 $2,692,711 $3,00,9 $3,319,199 $3,632,444 Year Projected Replacements ($48,791) ($81,431) ($27,989) ($612,6) ($396,238) ($609,762) ($284,823) ($122,348) ($1,136,682) ($107,17) Annual Deposit $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 End of Year Balance $1,702,722 $1,934,36 $1,989,791 $1,690,471 $1,607,477 $1,310,99 $1,339,381 $1,30,277 $706,839 $912,908 Cumulative Expenditures ($2,242,966) ($2,324,397) ($2,82,386) ($3,194,90) ($3,91,189) ($4,200,91) ($4,48,773) ($4,608,121) ($,744,804) ($,81,979) Cumulative Receipts $3,94,688 $4,28,932 $4,72,177 $4,88,421 $,198,66 $,11,910 $,82,14 $6,138,399 $6,41,643 $6,764,887 Year Projected Replacements ($414,98) ($167,293) ($274,360) ($76,96) ($147,26) ($246,344) ($48,791) ($81,431) ($27,989) ($612,6) Annual Deposit $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 $313,244 End of Year Balance $811,4 $97,0 $996,390 $1,233,038 $1,399,026 $1,46,927 $1,230,381 $1,462,194 $1,17,449 $1,218,129 Cumulative Expenditures ($6,266,78) ($6,433,871) ($6,708,231) ($6,784,827) ($6,932,083) ($7,178,427) ($7,727,217) ($7,808,648) ($8,066,637) ($8,679,202) Cumulative Receipts $7,078,132 $7,391,376 $7,704,620 $8,017,86 $8,331,109 $8,644,33 $8,97,98 $9,270,842 $9,84,087 $9,897,331 Year st Peak nd Peak rd Peak th Peak - 20 Projected Replacements ($396,238) ($609,762) ($284,823) ($122,348) ($1,136,682) ($107,17) ($414,98) ($167,293) ($274,360) ($76,96) Annual Deposit $313,244 $313,244 $313,244 $313,244 $313,244 $260,887 $260,887 $220,827 $220,827 $76,96 End of Year Balance $1,13,13 $838,617 $867,039 $1,07,936 $234,497 $388,209 $234,497 $288,031 $234,497 $234,497 Cumulative Expenditures ($9,07,440) ($9,68,202) ($9,970,02) ($10,092,373) ($11,229,0) ($11,336,231) ($11,70,829) ($11,918,122) ($12,192,482) ($12,269,078) Cumulative Receipts $10,210,7 $10,23,820 $10,837,064 $11,10,308 $11,463,3 $11,724,440 $11,98,326 $12,206,13 $12,426,979 $12,03,76

208 Replacement Reserve Analysis - Page A Town Home Reserve September 30, TOWN HOM16 INFLATION ADJUSTED FUNDING The Cash Flow Method calculations on Page A4 have been done in today's dollars with no adjustment for inflation. At Miller + Dodson, we belive that long-term inflation forecasting is effective at demonstrating the power of compounding, not at calculating appropriate funding levels for Replacement Reserves. We have developed this proprietary model to estimate the short-term impact of inflation on Replacement Reserve funding. $313, CASH FLOW METHOD RECOMMENDED FUNDING #6 - Inflation Adjusted Funding The 2016 Study Year calculations have been made using current replacement costs $400,000 (see Page B2), modified by the Analyst for any project specific conditions. $328, INFLATION ADJUSTED FUNDING A new analysis calculates 2017 funding based on three assumptions; Replacement Reserves on Deposit totaling $732,420 on January 1, All 2016 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $80,824. Construction Cost Inflation of 4.0 percent in The $328,310 inflation adjusted funding in 2017 is a 4.81 percent increase over the non-inflation adjusted 2017 funding of $313,244. $300,000 $313,244 $313,244 $313,244 $328,310 $313,244 $344,36 $313,244 $361,4 $344, INFLATION ADJUSTED FUNDING A new analysis calculates 2018 funding based on three assumptions; Replacement Reserves on Deposit totaling $932,876 on January 1, All 2017 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $127,84. Construction Cost Inflation of 4.0 percent in The $344,36 inflation adjusted funding in 2018 is a 9.93 percent increase over the non-inflation adjusted 2018 funding of $313,244. $200,000 $100,000 $361, INFLATION ADJUSTED FUNDING A new analysis calculates 2019 funding based on three assumptions; Replacement Reserves on Deposit totaling $1,210,23 on January 1, All 2018 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $66,997. Construction Cost Inflation of 4.0 percent in The $361,4 inflation adjusted funding in 2019 is a 1.42 percent increase over the non-inflation adjusted funding of $313, YEAR FIVE & BEYOND The inflation adjusted funding calculations outlined above are not intended to be a substitute for periodic evaluation of common elements by an experienced Reserve Analyst. Industry Standards, lender requirements, and many state and local statutes require a Replacement Reserve Study be professionally updated every 3 to years. INFLATION ADJUSTMENT Prior to approving a budget based upon the 2017, 2018 and 2019 inflation adjusted funding calculations above, the 4.0 percent base rate of inflation used in our calculations should be compared to rates published by the Bureau of Labor Statistics. If there is a significant discrepancy (over 1 percent), contact Miller Dodson + Associates prior to using the Inflation Adjusted Funding. INTEREST ON RESERVES The recommended funding calculations do not account for interest earned on Replacement Reserves. In 2016, based on a 1.00 percent interest rate, we estimate the Association may earn $6,162 on an average balance of $616,210, $8,326 on an average balance of $832,648 in 2017, and $10,716 on $1,071,6 in The Association may elect to attribute 100 percent of the earned interest to Reserves, resulting in a reduction in the 2016 minimum funding from $313,244 to $307,082 (a 1.97 percent reduction), $328,310 to $319,983 in 2017 (a 2.4 percent reduction), and $344,36 to $333,640 in 2018 (a 3.11 percent reduction). $0 Cash Flow Method Funding Inflation Adjusted Funding

209 Replacement Reserve Analysis - Page A6 Town Home Reserve September 30, TOWN HOM16 REPLACEMENT RESERVE STUDY - SUPPLEMENTAL COMMENTS The Cash Flow Method calculates the minimum annual funding necessary to prevent Replacement Reserves from dropping below the Minimum Balance. Failure to fund at least the recommended levels may result in funding not being available for the Projected Replacements listed in the Replacement Reserve Inventory. The accuracy of the Replacement Reserve Analysis is dependent upon expenditures from Replacement Reserves being made ONLY for the 204 Projected Replacements specifically listed in the Replacement Reserve Inventory. The inclusion/exclusion of items from the Replacement Reserve Inventory is discussed on Page B1. The Association reports Replacement Reserves on January 1, 2016 will total $00,000 and that they are currently contributing $6,891 to the Town Home Reserve. September 20, 201. Minor revison of a Study submitted on July 30, 201.

210 Replacement Reserve Inventory - Page B1 Town Home Reserve September 30, TOWN HOM16 REPLACEMENT RESERVE INVENTORY GENERAL INFORMATION Town Home Reserve - Replacement Reserve Inventory identifies 211 items. Two types of items are identified, Projected Replacements and Excluded Items: PROJECTED REPLACEMENTS. 204 of the items are Projected Replacements and the periodic replacements of these items are scheduled for funding from Replacement Reserves. The Projected Replacements have an estimated one-time replacement cost of $4,689,948. Replacements totaling $12,269,078 are scheduled in the Replacement Reserve Inventory over the 40-year Study Period. Projected Replacements are the replacement of commonly-owned physical assets that require periodic replacement and whose replacement is to be funded from Replacement Reserves. EXCLUDED ITEMS. 7 of the items are Excluded Items, and expenditures for these items are NOT scheduled for funding from Replacement Reserves. The accuracy of the calculations made in the Replacement Reserve Analysis is dependent on expenditures NOT being made for Excluded Items. The Excluded Items are listed in the Replacement Reserve Inventory to identify specific items and categories of items that are not to be funded from Replacement Reserves. There are multiple categories of items that are typically excluded from funding by Replacement Reserves, including but not limited to: Tax Code. The United States Tax Code grants very favorable tax status to Replacement Reserves, conditioned on expenditures being made within certain guidelines. These guidelines typically exclude maintenance activities, minor repairs and capital improvements. Value. Items with a replacement cost of less that $1,000 and/or a normal economic life of less than 3 years are typically excluded from funding from Replacement Reserves. This exclusion should reflect Association policy on the administration of Replacement Reserves. If the Association has selected an alternative level, it will be noted in the Replacement Reserve Inventory - General Comments on Page B2. Long-lived Items. Items that when properly maintained, can be assumed to have a life equal to the property as a whole, are typically excluded from the Replacement Reserve Inventory. Unit improvements. Items owned by a single unit and where the items serve a single unit are generally assumed to be the responsibility of that unit, not the Association. Other non-common improvements. Items owned by the local government, public and private utility companies, the United States Postal Service, Master Associations, state and local highway authorities, etc., may be installed on property that is owned by the Association. These types of items are generally not the responsibility of the Association and are excluded from the Replacement Reserve Inventory. The rationale for the exclusion of an item from funding by Replacement Reserves is discussed in more detail in the 'Comments' sections of the Section B - Replacement Reserve Inventory. CATEGORIES. The 211 items included in the Town Home Reserve Replacement Reserve Inventory are divided into 1 major categories. Each category is printed on a separate page, Pages B3 to B17. LEVEL OF SERVICE. This Replacement Reserve Inventory has been developed in compliance with the standards established for a Level Two - Update (with site visit and on-site review), as defined by the National Reserve Study Standards, established in 1998 by Community Associations Institute, which states: Level II Studies are based entirely on the component inventory from a prior study. This information is adjusted to reflect changes to the inventory that are provided by the Association, and the quantities are adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings that are made available to us. The condition of all components is ascertained from a site visit and the visual inspection of each component by the analyst. The Remaining Economic Life and replacement cost of components are provided based in part on these observations. The fund status and Funding Plan are derived from analysis of this data.

211 Replacement Reserve Inventory - Page B2 Town Home Reserve September 30, TOWN HOM16 REPLACEMENT RESERVE INVENTORY - GENERAL INFORMATION (cont'd) INVENTORY DATA. Each of the 204 Projected Replacements listed in the Replacement Reserve Inventory includes the following data: Item Number. The Item Number is assigned sequentially and is intended for identification purposes only. Item Description. We have identified each item included in the Inventory. Additional information may be included in the Comments section at the bottom of each page of the Inventory. Units. We have used standard abbreviations to identify the number of units including SF-square feet, LF-lineal feet, SY-square yard, LS-lump sum, EA-each, and PR-pair. Non-standard abbreviations are noted in the Comments section at the bottom of the page. Number of Units. The methods used to develop the quantities are discussed in "Level of Service" above. Unit Replacement Cost. We use four sources to develop the unit cost data shown in the Inventory; actual replacement cost data provided by the client, information provided by local contractors and suppliers, industry standard estimating manuals, and a cost database we have developed based upon our detailed interviews with contractors and service providers who are specialists in their respective lines of work. Normal Economic Life (Yrs). The number of years that a new and properly installed item should be expected to remain in service. Remaining Economic Life (Yrs). The estimated number of years before an item will need to be replaced. In "normal" conditions, this could be calculated by subtracting the age of the item from the Normal Economic Life of the item, but only rarely do physical assets age "normally". Some items may have longer or shorter lives depending on many factors such as environment, initial quality of the item, maintenance, etc. Total Replacement Cost. This is calculated by multiplying the Unit Replacement Cost by the Number of Units. Each of the 7 Excluded Items includes the Item Description, Units, and Number of Units. Many of the Excluded Items are listed as a 'Lump Sum' with a quantity of 1. For the Excluded Items, this indicates that all of the items identified by the 'Item Description' are excluded from funding by Replacement Reserves. REVIEW OF EXPENDITURES. This Replacement Reserve Study should be reviewed by an accounting professional representing the Association prior to implementation. PARTIAL FUNDING. Items may have been included in the Replacement Reserve Inventory at less than 100 percent of their full quantity and/or replacement cost. This is done on items that will never be replaced in their entirety, but which may require periodic replacements over an extended period of time. The assumptions that provide the basis for any partial funding are noted in the Comments section. REMAINING ECONOMIC LIFE GREATER THAN 40 YEARS. The calculations do not include funding for initial replacements beyond 40 years. These replacements are included in this Study for tracking and evaluation. They should be included for funding in future Studies, when they enter the 40-year window.

212 Replacement Reserve Inventory - Page B3 Town Home Reserve September 30, TOWN HOM16 SECTIONS 4, & 6 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Cartier Ter replace pavement sy 1,0 $ $24, Regal Wood Dr replace pavement sy 2,14 $ $38, Livingston Ter replace pavement sy 1,961 $ $30, LaSalle Ter replace pavement sy 1,088 $ $16, Captain Smith Alley replace pavement sy 1,229 $ $19, Balboa Alley replace pavement sy 839 $ $13, Cortez Ter replace pavement sy 1,611 $ $24, Desoto Ter replace pavement sy 687 $ $10, Sundew Alley replace pavement sy 31 $ $4, Magellan Sq replace pavement sy 6,136 $ $9, Coronado Ter replace pavement sy 1,273 $ $19, Edsen Ter replace pavement sy 9 $ $9, Asphalt pavement interim cycle 1 sy 19,798 $ $3, Asphalt pavement interim cycle 2 sy 19,798 $ $39, Asphalt pavement interim cycle 3 sy 19,798 $ none 2 $44, Concrete curb & gutter (2%) ft 271 $ none 2 $9, Concrete flatwork (2%) sf 627 $ none 2 $, Parking bay marking bay 116 $ $1,276 SECTIONS 4, & 6 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $442,370 SECTIONS 4, & 6 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. Public records show these homes were completed in = Sections 4,, and 6 as shown on the "Brambleton Master Plan" with proposed re-zoning, October 2014 Sections 4,, and 6 are located in Sector C. C = Central Sector = south of Ryan Rd, north of Creighton Rd, east of North Star Blvd. and west of Belmont Ridge Rd. Section 4,, and 6 data was included in the August 2011 Replacement Reserve Inventory.

213 Replacement Reserve Inventory - Page B4 Town Home Reserve September 30, TOWN HOM16 SECTION 12 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Orefield Ter replace pavement sy 662 $ $10, Faith Ter replace pavement sy 844 $ $13, Redeemer Ter replace pavement sy 893 $ $13, Snow Powder Ter replace pavement sy 2,039 $ $31, New Dawn Ter replace pavement sy 1,371 $ $21, Highcroft Ter replace pavement sy 3,412 $ $2, Parkland Farms Ter replace pavement sy 7,37 $ $114, Melville Ter replace pavement sy 6 $ $8, Winter Wind Ter replace pavement sy 06 $ $7, Flowing Spring Sq replace pavement sy 1,72 $ $26, Cedar Crest Alley replace pavement sy 1,286 $ $19, Asphalt pavement interim cycle 1 sy 20,61 $ $37, Asphalt pavement interim cycle 2 sy 20,61 $ $40, Asphalt pavement interim cycle 3 sy 20,61 $ $46, Concrete curb & gutter (2%) ft 271 $ $9, Concrete flatwork (2%) sf 627 $ $, Parking bay marking bay 186 $ $2,046 SECTION 12 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $461,12 SECTION 12 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. Public records show these homes were completed in = Section 12 as shown on the "Brambleton Master Plan" with proposed re-zoning, October 2014 Section 12 is located in Sector NE. NE = North East Sector = north of Ryan Road and east of Belmont Ridge Road. Secton 12 data was first added to the Replacement Reserve Inventory with the July 201 Study.

214 Replacement Reserve Inventory - Page B Town Home Reserve September 30, TOWN HOM16 SECTION 1 - OLDER SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 36 1 Claxton Ter replace pavement sy 630 $ $9, Firedrake Ter replace pavement sy 630 $ $9, Grayling Ter replace pavement sy 630 $ $9, Orangetip Ter replace pavement sy 2,333 $ $36, Washburn Ter replace pavement sy 630 $ $9, Asphalt pavement interim cycle 1 sy 4,83 $ $8, Asphalt pavement interim cycle 2 sy 4,83 $ $9, Asphalt pavement interim cycle 3 sy 4,83 $ $10, Concrete curb & gutter (2%) ft 132 $ $4, Concrete flatwork (2%) sf 617 $ $,6 SECTION 1 - OLDER SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $114,31 SECTION 1 - OLDER SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Public records show these homes were completed in = Section 1 as shown on the "Brambleton Master Plan" with proposed re-zoning, October 2014 Section 1 is located in Both Sectors CE and SE. CE = Central East Sector = south of Ryan Road, north of Creighton Road, and east of Belmont Ridge Road. SE = South East Sector = south of Creighton Road, and east of Belmont Ridge Road. Section 1 data was included in the August 2011 Replacement Reserve Inventory.

215 Replacement Reserve Inventory - Page B6 Town Home Reserve September 30, TOWN HOM16 SECTIONS 1 & 16 - NEWER SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 46 1 Spice Bush Ter replace pavement sy 1,494 $ $23, Twin Falls Ter replace pavement sy 1,67 $ $2, Twinleaf Ter replace pavement sy 772 $ $11, Bowditch Sq replace pavement sy 693 $ $10, Bremerton Alley replace pavement sy 1,04 $ $16, Bulwark Ter replace pavement sy 1,04 $ $16, Cantrell Alley replace pavement sy 2,314 $ $3, Eversole Ter replace pavement sy 1,46 $ $22, Fanshaw Sq replace pavement sy 1,120 $ $17, Fox Fire Ter replace pavement sy 474 $ $7, Glucksman Alley replace pavement sy 49 $ $7, Redstone Ter replace pavement sy 2,1 $ $33, Rockside Ter replace pavement sy 2,069 $ $32, Rose Quartz Sq replace pavement sy 821 $ $12, Malachite Ter replace pavement sy 1,043 $ $16, Townsend Alley replace pavement sy 1,043 $ $16, Asphalt pavement interim cycle 1 sy 19,696 $ $3, Asphalt pavement interim cycle 2 sy 19,696 $ $38, Asphalt pavement interim cycle 3 sy 19,696 $ $44, Concrete curb & gutter (2%) ft 36 $ $18, Concrete flatwork (2%) sf 2,0 $ $22,48 CTIONS 1 & 16 - NEWER SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $464,82 SECTIONS 1 & 16 - NEWER SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Public records show these homes were completed in & 16 = Sections 1 and 16 as shown on the "Brambleton Master Plan" with proposed re-zoning, October 2014 Section 1 is located in both Sectors CE and SE. Section 16 is located in Sector C.. CE = Central East Sector = south of Ryan Road, north of Creighton Road, and east of Belmont Ridge Road. SE = South East Sector = south of Creighton Road, and east of Belmont Ridge Road. C = Central Sector = south of Ryan Road, north of Creighton Road, east of North Star and west of Belmont Ridge Road. Section 1 & 16 data was included in the August 2011 Replacement Reserve Inventory.

216 Replacement Reserve Inventory - Page B7 Town Home Reserve September 30, TOWN HOM16 SECTION 19 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Trellis Sq replace pavement sy 828 $ $12, Balduck Ter replace pavement sy 1,036 $ $16, Verde Gate Ter replace pavement sy 4,891 $ $7, Vienna Green Ter replace pavement sy 1,89 $ $29, Great Heron Sq replace pavement sy 1,384 $ $21, Pale Iris Ter replace pavement sy 1,199 $ $18, Wispy Green Ter replace pavement sy 899 $ $13, Sweet Jen Ter replace pavement sy 68 $ $10, Gray Falcon Sq replace pavement sy 329 $ $, Twitter Sq replace pavement sy 289 $ $4, Hawksbill Sq replace pavement sy 289 $ $4, Amberjack Sq replace pavement sy 1,029 $ $1, East parking area replace pavement sy 468 $ $7, Asphalt pavement interim cycle 1 sy 1,19 $ $27, Asphalt pavement interim cycle 2 sy 1,19 $ $30, Asphalt pavement interim cycle 3 sy 1,19 $ $34, Concrete curb & gutter (2%) ft 24 $ $8, Concrete flatwork (2%) sf 1,420 $ $12, Parking bay marking bay 97 $ $1,067 SECTION 19 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $349,314 SECTION 19 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. Public records show these homes were completed in = Section 19 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 19 is located in Sector NC. NC = North Central Sector = north of Ryan Rd and east of North Star Blvd and west of Belmont Ridge Rd. Secton 19 data was first added to the Replacement Reserve Inventory with the July 201 Study.

217 Replacement Reserve Inventory - Page B8 Town Home Reserve September 30, TOWN HOM16 SECTION 22 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Evening Primrose replace pavement sy 6,140 $ $9, Fresh Rain Sq replace pavement sy 370 $ $, Wild Iris Ter replace pavement sy 199 $ $3, Sandwort Ter replace pavement sy 80 $ $13, Asphalt pavement - interim cycle 1 sy 7,9 $ $13, Asphalt pavement - interim cycle 2 sy 7,9 $ $14, Asphalt pavement - interim cycle 3 sy 7,9 $ $17, Concrete curb & gutter (2%) ft 11 $ $3, Concrete flatwork (2%) sf 310 $ $2, Parking bay marking bay 41 $ $41 SECTION 22 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $169,887 SECTION 22 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. Public records show these homes were completed in = Section 22 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 22 is located in SE Sector SE = South East Sector = south of Creighton and east of Belmont Ridge. Secton 22 data was first added to the Replacement Reserve Inventory with the July 201 Study.

218 Replacement Reserve Inventory - Page B9 Town Home Reserve September 30, TOWN HOM16 SECTION 24 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Benfold Dr/Sq replace pavement sy 8,362 $ $129, Cardina Alley replace pavement sy 30 $ $4, Flattery Alley replace pavement sy 680 $ $10, Haraden Alley replace pavement sy 277 $ $4, Lullaby St replace pavement sy 233 $ $3, Dreamweaver Dr replace pavement sy 3,109 $ $48, Kindred Ter replace pavement sy 1,290 $ $19, Lenox Park Ter replace pavement sy 83 $ $9, Kingsdale Ter replace pavement sy 2,302 $ $3, Rose Leigh Ter replace pavement sy 1,01 $ $1, Sailfish Ter replace pavement sy 3,762 $ $8, Mantua Sq replace pavement sy 2,082 $ $32, Willow Bend Ter replace pavement sy 1,411 $ $21, Thunder Branch Ter replace pavement sy 7,700 $ $119, Asphalt pavement interim cycle 1 sy 33,111 $ $9, Asphalt pavement interim cycle 2 sy 33,111 $ $6, Asphalt pavement interim cycle 3 sy 33,111 $ $74, Concrete curb & gutter (2%) ft 393 $ $13, Concrete flatwork (2%) sf 1,40 $ $13, Parking bay marking bay 12 $ $1,672 SECTION 24 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $741,779 SECTION 24 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. NOTE: Construction was incomplete and the next Study should confirm the quantities match actual construction We have assumed the top coat of asphalt pavement will be installed in 2018, 24 = Section 24 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 24 is located in the SE Sector. SE = South East Sector = south of Creighton Road, east of Belmont Ridge Road. Secton 24 data was first added to the Replacement Reserve Inventory with the July 201 Study.

219 Replacement Reserve Inventory - Page B10 Town Home Reserve September 30, TOWN HOM16 SECTION 33 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Epperson Drive replace pavement sy 4,47 $ $69, Riggins Ridge Way replace pavement sy 1,69 $ $26, Safe Harbor Ter replace pavement sy 347 $ $, Fox Tracks Way replace pavement sy 1,104 $ $17, Ashwood Moss Pl replace pavement sy 3,329 $ $1, Adagio Ter replace pavement sy 3,736 $ $7, Hillgate Ter replace pavement sy 1,188 $ $18, Knotty Oak Ter replace pavement sy 786 $ $12, Soft Breeze Ter replace pavement sy 01 $ $7, Hampton Woods Way replace pavement sy 1,703 $ $26, Ivy Walk replace pavement sy 331 $ $, Falling Garden Way replace pavement sy 79 $ $8, Marble Canyon Ter replace pavement sy 467 $ $7, Nantucket Fog Ter replace pavement sy 1,038 $ $16, Twilight Glen Alley replace pavement sy 711 $ $11, Monticello Alley replace pavement sy 311 $ $4, Asphalt pavement interim cycle 1 sy 22,282 $ $40, Asphalt pavement interim cycle 2 sy 22,282 $ $44, Asphalt pavement interim cycle 3 sy 22,282 $ $0, Concrete curb & gutter (2%) ft 343 $ $11, Concrete flatwork (2%) sf 1,303 $ $11, Parking bay marking bay 12 $ $1,37 SECTION 33 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $04,478 SECTION 33 - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. NOTE: Construction was incomplete and the next Study should confirm the quantities match actual construction. We have assumed the top coat of asphalt pavement will be installed in 2018, 33 = Section 33 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 33 is located in Sector SC. SC = South Central Sector = south of Creighton Road, east of North Star and west of Belmont Ridge Road. Secton 33 data was first added to the Replacement Reserve Inventory with the July 201 Study.

220 Replacement Reserve Inventory - Page B11 Town Home Reserve September 30, TOWN HOM16 BRAMBLETON CORNER (BC) SECTION - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 138 BC Palladian Blue Ter replace pavement sy 2,381 $ $36, BC Provencial Alley replace pavement sy 1,111 $ $17, BC Epperson Dr replace pavement sy 1,614 $ $2, BC Cameron Glen Alley replace pavement sy 31 $ $8, BC White Castle Alley replace pavement sy 1,140 $ $17, BC Lingmont Alley replace pavement sy 438 $ $6, BC Ashwood Moss Ter replace pavement sy 821 $ $12, BC Asphalt pavement interim cycle 1 sy 8,038 $ $14, BC Asphalt pavement interim cycle 2 sy 8,038 $ $1, BC Asphalt pavement interim cycle 3 sy 8,038 $ $18, BC Concrete curb & gutter (2%) ft 36 $ $18, BC Concrete flatwork (2%) sf 2,0 $ $22,48 10 BC Parking bay marking bay 84 $ $924 $214,71 BRAMBLETON CORNER (BC) SECTION - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. NOTE: Construction was incomplete and the next Study should confirm the quantities match actual construction We have assumed the top coat of asphalt pavement will be installed in 2018, BC = Brambleton Corner Section as shown on the "Brambleton Master Plan" with proposed re-zoning, October The Brambleton Corner Section is located in Sector. SC = South Central Sector = south of Creighton Road, east of North Star and west of Belmont Ridge Road. Brambleton Corner data was first added to the Replacement Reserve Inventory with the July 201 Study.

221 Replacement Reserve Inventory - Page B12 Town Home Reserve September 30, TOWN HOM16 BELMONT TRACE (BT) SECTION - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 11 BT Angela Faye Sq replace pavement sy 1,27 $ $23, BT Connie Marie Ter replace pavement sy 1,79 $ $27, BT Dorothy Ann Ter replace pavement sy 49 $ $7, BT Franklin Benjamin Ter replace pavement sy 1,91 $ $24,64 1 BT Patrick Wayne Sq replace pavement sy 2,18 $ $39, BT Asphalt pavement interim cycle 1 sy 7,889 $ none 2 $14, BT Asphalt pavement interim cycle 2 sy 7,889 $ $1, BT Asphalt pavement interim cycle 3 sy 7,889 $ $17,70 19 BT Concrete curb & gutter (2%) ft 110 $ none 2 $3, BT Concrete flatwork (2%) sf 389 $ none 2 $3, BT Parking bay marking bay 71 $ $781 NT TRACE (BT) SECTION - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $177,867 BELMONT TRACE (BT) SECTION - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. Public records show these homes were completed in BT = Belmont Trace Section as shown on the "Brambleton Master Plan" with proposed re-zoning, October The Belmont Trace Section is located in SC Sector.. SC = South Central Sector = south of Creighton Road, east of North Star and west of Belmont Ridge Road. The Belmont Trace Section data was first added to the Replacement Reserve Inventory with the July 201 Study.

222 Replacement Reserve Inventory - Page B13 Town Home Reserve September 30, TOWN HOM16 BRANDT SECTION (B) - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 162 B Amber Grove Terr replace pavement sy 887 $ $13, B Tradewind Drive replace pavement sy,12 $ $8, B Violet Mist Terr replace pavement sy 481 $ $7,40 16 B Castle Ridge Way replace pavement sy 2,900 $ $44, B Asphalt pavement interim cycle 1 sy 9,779 $ $17, B Asphalt pavement interim cycle 2 sy 9,779 $ $19, B Asphalt pavement interim cycle 3 sy 9,779 $ $22, B Concrete curb & gutter (2%) ft 14 $ $4, B Concrete flatwork (2%) sf 27 $ $2, B Parking bay marking bay 71 $ $781 BRANDT SECTION (B) - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $218,3 BRANDT SECTION (B) - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Construction of the individual units appears to be complete. We have assumed the top coat of asphalt pavement will be installed in 2016, the Study Year. Parking bay markings. The new waterbased paints have a reduced economic life. B = Brant Section as shown on the "Brambleton Master Plan" with proposed re-zoning, October Brandt Section is located in Sector SW. SW = South West Sector = south of Creighton Rd, west of North Star Blvd. Brandt Secton data was first added to the Replacement Reserve Inventory with the July 201 Study.

223 Replacement Reserve Inventory - Page B14 Town Home Reserve September 30, TOWN HOM16 TOWN CENTER (TC) RESIDENTIAL SECTION - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 172 TC Amber Run Ter replace pavement sy 979 $ $1, TC Bliss Ter replace pavement sy $ $8, TC Bollinger Ter replace pavement sy 1,329 $ $20, TC Breezy Hollow Dr replace pavement sy 966 $ $14, TC Goldsborough Ter replace pavement sy 2,383 $ $36, TC Peregrine Ter replace pavement sy 1,374 $ $21, TC Rachels Row Ter replace pavement sy 677 $ $10, TC Rhett Dr replace pavement sy 1,234 $ $19, TC Sagamore Sq replace pavement sy 969 $ $1, TC Thornback Ter replace pavement sy 1,401 $ $21, TC Yancy Ter replace pavement sy 2,281 $ $3, TC Bollinger Ter replace pavement sy 792 $ $12, TC Carlington Dr replace pavement sy 2,966 $ $4, TC Asphalt pavement interim cycle 1 sy 17,906 $ $32, TC Asphalt pavement interim cycle 2 sy 17,906 $ $3, TC Asphalt pavement interim cycle 3 sy 17,906 $ $40, TC Concrete curb & gutter (2%) ft 26 $ $8, TC Concrete flatwork (2%) sf 939 $ $8, TC Parking bay marking bay 108 $ $1,188 $404,12 TOWN CENTER (TC) RESIDENTIAL SECTION - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. Public records show these homes were completed in TC = Town Center Residential as shown on the "Brambleton Master Plan" with proposed re-zoning, October The Town Center Residential Section is located in Sector CW. CW = Central West Sector = south of Ryan Road, north of Creighton Road, west of North Star Blvd. Town Center Residential data was first added to the Replacement Reserve Inventory with the July 201 Study.

224 Replacement Reserve Inventory - Page B1 Town Home Reserve September 30, TOWN HOM16 TRENT GROVE (TG) - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 191 TG Riding Reins Ter replace pavement sy 1,707 $ $26, TG Boca Field Ter replace pavement sy 3,004 $ $46,7 193 TG Christina Ridge Sq replace pavement sy 4,223 $ $6, TG Christophers View Ter replace pavement sy 99 $ $9, TG Grahams Stable Sq replace pavement sy 6,110 $ $94, TG Jessica Farm Ter replace pavement sy 2,01 $ $31, TG Flynn Fields Ter replace pavement sy 34 $ $8, TG Biggers Farm Ter replace pavement sy 87 $ $9, TG Asphalt pavement - interim cycle 1 sy 18,779 $ $33, TG Asphalt pavement - interim cycle 2 sy 18,779 $ $37, TG Asphalt pavement - interim cycle 3 sy 18,779 $ $42, TG Concrete curb & gutter (2%) ft 267 $ $9, TG Concrete flatwork (2%) sf 1,280 $ $11, TG Parking bay marking bay 94 $ $1,034 TRENT GROVE (TG) - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC - Replacement Costs - Subtotal $42,931 TRENT GROVE (TG) - SITE IMPROVEMENTS - TOWNHOUSE SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (roads & parking areas). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete components. We have scheduled concrete sidewalk and curb & gutter replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Parking bay markings. The new waterbased paints have a reduced economic life. Public records show these homes were completed in TG = Trent Grove as shown on the "Brambleton Master Plan" with proposed re-zoning, October The Trent Grove Section is located in Sector SC. SC = South Central Sector = south of Creighton Road, east of North Star and west of Belmont Ridge Road. Trent Grove data was first added to the Replacement Reserve Inventory with the July 201 Study.

225 Replacement Reserve Inventory - Page B16 Town Home Reserve September 30, TOWN HOM16 MAINTENANCE AND REPAIR EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Janitorial service ls 1 3 EXCLUDED Repair services ls 1 3 EXCLUDED Capitol improvements ls 1 3 EXCLUDED MAINTENANCE AND REPAIR EXCLUSIONS COMMENTS Maintenance activities, one-time-only repairs, and capitol improvements. These activities are NOT appropriately funded from Replacement Reserves. The inclusion of such component in the Replacement Reserve Inventory could jeopardize the special tax status of ALL Replacement Reserves, exposing the Association to significant tax liabilities. We recommend that the Board of Directors discuss these exclusions and Revenue Ruling with a Certified Public Accountant. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

226 Replacement Reserve Inventory - Page B17 Town Home Reserve September 30, TOWN HOM16 GOVERNMENT EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Government, roadways & parking ls 1 3 EXCLUDED Government, sidewalks & curbs ls 1 3 EXCLUDED Government, lighting ls 1 3 EXCLUDED Government, stormwater mgmt. ls 1 3 EXCLUDED GOVERNMENT EXCLUSIONS COMMENTS Government Exclusions. We have assumed that some of the improvements installed on property owned by the Association will be maintained by the state, county, or local government, or other association or other responsible entity. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

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228 Projected Annual Replacements - Page C1 Town Home Reserve September 30, TOWN HOM16 PROJECTED ANNUAL REPLACEMENTS GENERAL INFORMATION CALENDAR OF ANNUAL REPLACEMENTS. The 204 Projected Replacements in the Town Home Reserve Replacement Reserve Inventory whose replacement is scheduled to be funded from Replacement Reserves are broken down on a year-by-year basis, beginning on Page C2. REPLACEMENT RESERVE ANALYSIS AND INVENTORY POLICIES, PROCEDURES, AND ADMINISTRATION REVISIONS. Revisions will be made to the Replacement Reserve Analysis and Replacement Reserve Inventory in accordance with the written instructions of the Board of Directors. No additional charge is incurred for the first revision, if requested in writing within three months of the date of the Replacement Reserve Study. It is our policy to provide revisions in electronic (Adobe PDF) format only. TAX CODE. The United States Tax Code grants favorable tax status to a common interest development (CID) meeting certain guidelines for their Replacement Reserve. If a CID files their taxes as a 'Corporation' on Form 1120 (IRC Section 277), these guidelines typically require maintenance activities, partial replacements, minor replacements, capital improvements, and one-time only replacements to be excluded from Reserves. A CID cannot co-mingle planning for maintenance activities with capital replacement activities in the Reserves (Revenue Ruling 7-370). Funds for maintenance activities and capital replacements activities must be held in separate accounts. If a CID files taxes as an "Exempt Homeowners Association" using Form 1120H (IRC Section 28), the CID does not have to segregate these activities. However, because the CID may elect to change their method of filing from year to year within the Study Period, we advise using the more restrictive approach. We further recommend that the CID consult with their Accountant and consider creating separate and independent accounts and reserves for large maintenance items, such as painting. CONFLICT OF INTEREST. Neither Miller - Dodson Associates nor the Reserve Analyst has any prior or existing relationship with this Association which would represent a real or perceived conflict of interest. RELIANCE ON DATA PROVIDED BY THE CLIENT. Information provided by an official representative of the Association regarding financial, physical conditions, quality, or historical issues is deemed reliable. INTENT. This Replacement Reserve Study is a reflection of the information provided by the Association and the visual evaluations of the Analyst. It has been prepared for the sole use of the Association and is not for the purpose of performing an audit, quality/forensic analyses, or background checks of historical records. PREVIOUS REPLACEMENTS. Information provided to Miller - Dodson Associates regarding prior replacements is considered to be accurate and reliable. Our visual evaluation is not a project audit or quality inspection. EXPERIENCE WITH FUTURE REPLACEMENTS. The Calendar of Annual Projected Replacements, lists replacements we have projected to occur over the next thirty years, begins on Page C2. Actual experience in replacing the items may differ significantly from the cost estimates and time frames shown because of conditions beyond our control. These differences may be caused by maintenance practices, inflation, variations in pricing and market conditions, future technological developments, regulatory actions, acts of God, and luck. Some items may function normally during our visual evaluation and then fail without notice. REVIEW OF THE REPLACEMENT RESERVE STUDY. For this study to be effective, it should be reviewed by the Town Home Reserve Board of Directors, those responsible for the management of the items included in the Replacement Reserve Inventory, and the accounting professionals employed by the Association.

229 Projected Annual Replacements - Page C2 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 1 TO 3 Item STUDY YEAR $ Item YEAR 2 $ Item YEAR 3 $ Asphalt pavement interim $44, Asphalt pavement interim $37, Parking bay marking $1, Concrete curb & gutter (2 $9, Concrete curb & gutter (2 $9, Asphalt pavement inte $38, Concrete flatwork (2%) $, Concrete flatwork (2%) $, Asphalt pavement - interim $13, BT Asphalt pavement interim $14, Asphalt pavement interim $9, Concrete curb & gutter (2 $3, BT Concrete curb & gutter (2 $3, Concrete curb & gutter (2 $4, Concrete flatwork (2%) $2, BT Concrete flatwork (2%) $3, Concrete flatwork (2%) $,6 161 BT Parking bay marking $ Asphalt pavement interim $27, Concrete curb & gutter (2 $8, Concrete flatwork (2%) $12, TC Parking bay marking $1, TG Parking bay marking $1,034 Total Scheduled Replacements $80,824 Total Scheduled Replacements $122,348 Total Scheduled Replacements $61,32

230 Projected Annual Replacements - Page C3 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 4 TO 6 Item YEAR 4 $ Item YEAR $ Item YEAR 6 $ 3 12 Parking bay marking $2, Cartier Ter replace pave $24, Asphalt pavement interim $40, Parking bay marking $1, Regal Wood Dr replace p $38, Concrete curb & gutter (2 $9, TC Asphalt pavement interim $32, Livingston Ter replace pa $30, Concrete flatwork (2%) $, TC Concrete curb & gutter (2 $8, LaSalle Ter replace pave $16, Asphalt pavement interim $10, TC Concrete flatwork (2%) $8, Captain Smith Alley repla $19, Concrete curb & gutter (2 $4, TG Asphalt pavement - inter $33, Balboa Alley replace pav $13, Concrete flatwork (2%) $,6 202 TG Concrete curb & gutter (2 $9, Cortez Ter replace pavem $24, Asphalt pavement interim $30, TG Concrete flatwork (2%) $11, Desoto Ter replace pave $10, Concrete curb & gutter (2 $8, Sundew Alley replace pa $4, Concrete flatwork (2%) $12, Magellan Sq replace pav $9, TC Parking bay marking $1, Coronado Ter replace pa $19, TG Asphalt pavement - inter $37, Edsen Ter replace pavem $9, TG Parking bay marking $1, Concrete curb & gutter (2 $9, Concrete flatwork (2%) $, Concrete curb & gutte $18, Concrete flatwork (2% $22, Parking bay marking $41 17 BT Asphalt pavement interim $1, BT Concrete curb & gutter (2 $3, BT Concrete flatwork (2%) $3, B Asphalt pavement interim $17, B Concrete curb & gutter (2% $4, B Concrete flatwork (2%) $2,310 Total Scheduled Replacements $107,17 Total Scheduled Replacements $410,627 Total Scheduled Replacements $167,293

231 Projected Annual Replacements - Page C4 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 7 TO 9 Item YEAR 7 $ Item YEAR 8 $ Item YEAR 9 $ Parking bay marking $1, Parking bay marking $2, Asphalt pavement interim $3, Asphalt pavement inte $44, Parking bay marking $1, Concrete curb & gutter (2 $9, Asphalt pavement - interim $14, TC Asphalt pavement interim $3, Concrete flatwork (2%) $, Concrete curb & gutter (2 $3, TC Concrete curb & gutter (2 $8, Concrete curb & gutte $18, Concrete flatwork (2%) $2, TC Concrete flatwork (2%) $8, Concrete flatwork (2% $22, Asphalt pavement interim $9, TG Concrete curb & gutter (2 $9, Parking bay marking $ Concrete curb & gutter (2 $13, TG Concrete flatwork (2%) $11, Parking bay marking $1, Concrete flatwork (2%) $13, Parking bay marking $1, Asphalt pavement interim $40, BC Parking bay marking $ Concrete curb & gutter (2 $11,61 18 BT Asphalt pavement interim $17, Concrete flatwork (2%) $11, BT Concrete curb & gutter (2 $3, BC Asphalt pavement interim $14, BT Concrete flatwork (2%) $3, BC Concrete curb & gutter (2 $18, B Asphalt pavement interim c $19, BC Concrete flatwork (2%) $22, B Concrete curb & gutter (2% $4, BT Parking bay marking $ B Concrete flatwork (2%) $2, B Parking bay marking $781 Total Scheduled Replacements $274,360 Total Scheduled Replacements $76,96 Total Scheduled Replacements $147,26

232 Projected Annual Replacements - Page C Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 10 TO 12 Item YEAR 10 $ Item YEAR 11 $ Item YEAR 12 $ Asphalt pavement interim $46, Parking bay marking $1, Parking bay marking $2, Concrete curb & gutter (2 $9, Spice Bush Ter replace p $23, Parking bay marking $1, Concrete flatwork (2%) $, Twin Falls Ter replace pa $2, TC Asphalt pavement interim $40, Claxton Ter replace pave $9, Twinleaf Ter replace pave $11, TC Concrete curb & gutter (2 $8, Firedrake Ter replace pav $9, Bowditch Sq replace pave $10, TC Concrete flatwork (2%) $8, Grayling Ter replace pave $9, Bremerton Alley replace p $16, TG Concrete curb & gutter (2 $9, Orangetip Ter replace pa $36, Bulwark Ter replace pave $16, TG Concrete flatwork (2%) $11, Washburn Ter replace pa $9, Cantrell Alley replace pav $3, Concrete curb & gutter (2 $4, Eversole Ter replace pav $22, Concrete flatwork (2%) $, Fanshaw Sq replace pave $17, Asphalt pavement interim $34, Fox Fire Ter replace pave $7, Concrete curb & gutter (2 $8, Glucksman Alley replace $7, Concrete flatwork (2%) $12, Redstone Ter replace pav $33, TC Parking bay marking $1, Rockside Ter replace pav $32, TG Asphalt pavement - inter $42, Rose Quartz Sq replace p $12, TG Parking bay marking $1, Malachite Ter replace pav $16, Townsend Alley replace p $16, Asphalt pavement - interim $17, Concrete curb & gutter (2 $3, Concrete flatwork (2%) $2, Asphalt pavement interim $6, Concrete curb & gutter (2 $13, Concrete flatwork (2%) $13, Asphalt pavement interim $44, Concrete curb & gutter (2 $11, Concrete flatwork (2%) $11, BC Asphalt pavement interim $1, BC Concrete curb & gutter (2 $18, BC Concrete flatwork (2%) $22, BT Parking bay marking $ B Parking bay marking $781 Total Scheduled Replacements $246,344 Total Scheduled Replacements $48,791 Total Scheduled Replacements $81,431

233 Projected Annual Replacements - Page C6 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 13 TO 1 Item YEAR 13 $ Item YEAR 14 $ Item YEAR 1 $ Asphalt pavement interim $39, Orefield Ter replace pave $10, Parking bay marking $1, Concrete curb & gutter (2 $9, Faith Ter replace paveme $13, Asphalt pavement inte $3, Concrete flatwork (2%) $, Redeemer Ter replace pa $13, Evening Primrose replace $9, Concrete curb & gutte $18, Snow Powder Ter replace $31, Fresh Rain Sq replace pa $, Concrete flatwork (2% $22, New Dawn Ter replace pa $21, Wild Iris Ter replace pave $3, Parking bay marking $ Highcroft Ter replace pav $2, Sandwort Ter replace pav $13, Parking bay marking $1, Parkland Farms Ter repla $114, Concrete curb & gutter (2 $3, Parking bay marking $1, Melville Ter replace pave $8, Concrete flatwork (2%) $2, BC Parking bay marking $ Winter Wind Ter replace $7, Asphalt pavement interim $74,00 11 BT Angela Faye Sq replace $23, Flowing Spring Sq replace $26, Concrete curb & gutter (2 $13,36 12 BT Connie Marie Ter replace $27, Cedar Crest Alley replace $19, Concrete flatwork (2%) $13, BT Dorothy Ann Ter replace $7, Concrete curb & gutter (2 $9, Asphalt pavement interim $0, BT Franklin Benjamin Ter re $24, Concrete flatwork (2%) $, Concrete curb & gutter (2 $11,61 1 BT Patrick Wayne Sq replac $39, Asphalt pavement interim $8, Concrete flatwork (2%) $11, BT Concrete curb & gutter (2 $3, Concrete curb & gutter (2 $4, BC Asphalt pavement interim $18, BT Concrete flatwork (2%) $3, Concrete flatwork (2%) $,6 148 BC Concrete curb & gutter (2 $18, B Asphalt pavement interim $22, Trellis Sq replace paveme $12, BC Concrete flatwork (2%) $22, B Concrete curb & gutter (2% $4, Balduck Ter replace pave $16, BT Parking bay marking $ B Concrete flatwork (2%) $2, Verde Gate Ter replace p $7, B Parking bay marking $ Vienna Green Ter replace $29, Great Heron Sq replace p $21, Pale Iris Ter replace pave $18, Wispy Green Ter replace $13, Sweet Jen Ter replace pa $10, Gray Falcon Sq replace p $, Twitter Sq replace pavem $4, Hawksbill Sq replace pav $4, Amberjack Sq replace pa $1, East parking area replace $7, Concrete curb & gutter (2 $8, Concrete flatwork (2%) $12, TC Parking bay marking $1, TG Parking bay marking $1,034 Total Scheduled Replacements $27,989 Total Scheduled Replacements $612,6 Total Scheduled Replacements $396,238

234 Projected Annual Replacements - Page C7 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 16 TO 18 Item YEAR 16 $ Item YEAR 17 $ Item YEAR 18 $ 3 12 Parking bay marking $2, Asphalt pavement interim $44, Asphalt pavement interim $37, Parking bay marking $1, Concrete curb & gutter (2 $9, Concrete curb & gutter (2 $9, TC Amber Run Ter replace $1, Concrete flatwork (2%) $, Concrete flatwork (2%) $, TC Bliss Ter replace pavem $8, Concrete curb & gutte $18, Asphalt pavement interim $9, TC Bollinger Ter replace pa $20, Concrete flatwork (2% $22, Concrete curb & gutter (2 $4, TC Breezy Hollow Dr replac $14, Parking bay marking $ Concrete flatwork (2%) $,6 176 TC Goldsborough Ter replac $36, Parking bay marking $1, Asphalt pavement interim $27, TC Peregrine Ter replace pa $21, Parking bay marking $1, Concrete curb & gutter (2 $8, TC Rachels Row Ter replac $10, BC Parking bay marking $ Concrete flatwork (2%) $12, TC Rhett Dr replace paveme $19, BT Asphalt pavement interim $14, TC Parking bay marking $1, TC Sagamore Sq replace pa $1, BT Concrete curb & gutter (2 $3, TG Parking bay marking $1, TC Thornback Ter replace p $21, BT Concrete flatwork (2%) $3, TC Yancy Ter replace pave $3, B Amber Grove Terr replace $13, TC Bollinger Ter replace pa $12, B Tradewind Drive replace p $8, TC Carlington Dr replace pa $4, B Violet Mist Terr replace pa $7, TC Concrete curb & gutter (2 $8, B Castle Ridge Way replace $44, TC Concrete flatwork (2%) $8, B Concrete curb & gutter (2% $4, TG Riding Reins Ter replace $26, B Concrete flatwork (2%) $2, TG Boca Field Ter replace p $46,7 193 TG Christina Ridge Sq repla $6, TG Christophers View Ter re $9, TG Grahams Stable Sq repla $94, TG Jessica Farm Ter replace $31, TG Flynn Fields Ter replace $8, TG Biggers Farm Ter replac $9, TG Concrete curb & gutter (2 $9, TG Concrete flatwork (2%) $11,18 Total Scheduled Replacements $609,762 Total Scheduled Replacements $284,823 Total Scheduled Replacements $122,348

235 Projected Annual Replacements - Page C8 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 19 TO 21 Item YEAR 19 $ Item YEAR 20 $ Item YEAR 21 $ Parking bay marking $1, Parking bay marking $2, Cartier Ter replace pave $24, Asphalt pavement inte $38, Parking bay marking $1, Regal Wood Dr replace p $38, Asphalt pavement - interim $13, TC Asphalt pavement interim $32, Livingston Ter replace pa $30, Concrete curb & gutter (2 $3, TC Concrete curb & gutter (2 $8, LaSalle Ter replace pave $16, Concrete flatwork (2%) $2, TC Concrete flatwork (2%) $8, Captain Smith Alley repla $19, Benfold Dr/Sq replace pa $129, TG Asphalt pavement - inter $33, Balboa Alley replace pav $13, Cardina Alley replace pav $4, TG Concrete curb & gutter (2 $9, Cortez Ter replace pavem $24, Flattery Alley replace pav $10, TG Concrete flatwork (2%) $11, Desoto Ter replace pave $10, Haraden Alley replace pa $4, Sundew Alley replace pa $4, Lullaby St replace pavem $3, Magellan Sq replace pav $9, Dreamweaver Dr replace $48, Coronado Ter replace pa $19, Kindred Ter replace pave $19, Edsen Ter replace pavem $9, Lenox Park Ter replace p $9, Concrete curb & gutter (2 $9, Kingsdale Ter replace pa $3, Concrete flatwork (2%) $, Rose Leigh Ter replace p $1, Concrete curb & gutte $18, Sailfish Ter replace pavem $8, Concrete flatwork (2% $22, Mantua Sq replace pavem $32, Parking bay marking $ Willow Bend Ter replace $21, Parking bay marking $1, Thunder Branch Ter repla $119, Parking bay marking $1, Concrete curb & gutter (2 $13,36 10 BC Parking bay marking $ Concrete flatwork (2%) $13, BT Asphalt pavement interim $1, Epperson Drive replace p $69, BT Concrete curb & gutter (2 $3, Riggins Ridge Way replac $26, BT Concrete flatwork (2%) $3, Safe Harbor Ter replace p $, B Asphalt pavement interim c $17, Fox Tracks Way replace $17, B Concrete curb & gutter (2% $4, Ashwood Moss Pl replace $1, B Concrete flatwork (2%) $2, Adagio Ter replace pavem $7, Hillgate Ter replace pave $18, Knotty Oak Ter replace p $12, Soft Breeze Ter replace p $7, Hampton Woods Way rep $26, Ivy Walk replace paveme $, Falling Garden Way repla $8, Marble Canyon Ter replac $7, Nantucket Fog Ter replac $16, Twilight Glen Alley replac $11, Monticello Alley replace p $4, Concrete curb & gutter (2 $11, Concrete flatwork (2%) $11, BC Palladian Blue Ter replac $36, BC Provencial Alley replace $17, BC Epperson Dr replace pav $2, BC Cameron Glen Alley repl $8, BC White Castle Alley replac $17, BC Lingmont Alley replace p $6, BC Ashwood Moss Ter repla $12, BC Concrete curb & gutter (2 $18, BC Concrete flatwork (2%) $22, BT Parking bay marking $ B Parking bay marking $781 Total Scheduled Replacements $1,136,682 Total Scheduled Replacements $107,17 Total Scheduled Replacements $414,98

236 Projected Annual Replacements - Page C9 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 22 TO 24 Item YEAR 22 $ Item YEAR 23 $ Item YEAR 24 $ Asphalt pavement interim $40, Parking bay marking $1, Parking bay marking $2, Concrete curb & gutter (2 $9, Asphalt pavement inte $44, Parking bay marking $1, Concrete flatwork (2%) $, Asphalt pavement - interim $14, TC Asphalt pavement interim $3, Asphalt pavement interim $10, Concrete curb & gutter (2 $3, TC Concrete curb & gutter (2 $8, Concrete curb & gutter (2 $4, Concrete flatwork (2%) $2, TC Concrete flatwork (2%) $8, Concrete flatwork (2%) $, Asphalt pavement interim $9, TG Concrete curb & gutter (2 $9, Asphalt pavement interim $30, Concrete curb & gutter (2 $13, TG Concrete flatwork (2%) $11, Concrete curb & gutter (2 $8, Concrete flatwork (2%) $13, Concrete flatwork (2%) $12, Asphalt pavement interim $40, TC Parking bay marking $1, Concrete curb & gutter (2 $11, TG Asphalt pavement - inter $37, Concrete flatwork (2%) $11, TG Parking bay marking $1, BC Asphalt pavement interim $14, BC Concrete curb & gutter (2 $18, BC Concrete flatwork (2%) $22, BT Parking bay marking $ B Parking bay marking $781 Total Scheduled Replacements $167,293 Total Scheduled Replacements $274,360 Total Scheduled Replacements $76,96

237 Projected Annual Replacements - Page C10 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 2 TO 27 Item YEAR 2 $ Item YEAR 26 $ Item YEAR 27 $ Asphalt pavement interim $3, Asphalt pavement interim $46, Parking bay marking $1, Concrete curb & gutter (2 $9, Concrete curb & gutter (2 $9, Spice Bush Ter replace p $23, Concrete flatwork (2%) $, Concrete flatwork (2%) $, Twin Falls Ter replace pa $2, Concrete curb & gutte $18, Claxton Ter replace pave $9, Twinleaf Ter replace pave $11, Concrete flatwork (2% $22, Firedrake Ter replace pav $9, Bowditch Sq replace pave $10, Parking bay marking $ Grayling Ter replace pave $9, Bremerton Alley replace p $16, Parking bay marking $1, Orangetip Ter replace pa $36, Bulwark Ter replace pave $16, Parking bay marking $1, Washburn Ter replace pa $9, Cantrell Alley replace pav $3, BC Parking bay marking $ Concrete curb & gutter (2 $4, Eversole Ter replace pav $22,68 18 BT Asphalt pavement interim $17, Concrete flatwork (2%) $, Fanshaw Sq replace pave $17, BT Concrete curb & gutter (2 $3, Asphalt pavement interim $34, Fox Fire Ter replace pave $7, BT Concrete flatwork (2%) $3, Concrete curb & gutter (2 $8, Glucksman Alley replace $7, B Asphalt pavement interim $19, Concrete flatwork (2%) $12, Redstone Ter replace pav $33, B Concrete curb & gutter (2% $4, TC Parking bay marking $1, Rockside Ter replace pav $32, B Concrete flatwork (2%) $2, TG Asphalt pavement - inter $42, Rose Quartz Sq replace p $12, TG Parking bay marking $1, Malachite Ter replace pav $16, Townsend Alley replace p $16, Asphalt pavement - interim $17, Concrete curb & gutter (2 $3, Concrete flatwork (2%) $2, Asphalt pavement interim $6, Concrete curb & gutter (2 $13, Concrete flatwork (2%) $13, Asphalt pavement interim $44, Concrete curb & gutter (2 $11, Concrete flatwork (2%) $11, BC Asphalt pavement interim $1, BC Concrete curb & gutter (2 $18, BC Concrete flatwork (2%) $22, BT Parking bay marking $ B Parking bay marking $781 Total Scheduled Replacements $147,26 Total Scheduled Replacements $246,344 Total Scheduled Replacements $48,791

238 Projected Annual Replacements - Page C11 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 28 TO 30 Item YEAR 28 $ Item YEAR 29 $ Item YEAR 30 $ 3 12 Parking bay marking $2, Asphalt pavement interim $39, Orefield Ter replace pave $10, Parking bay marking $1, Concrete curb & gutter (2 $9, Faith Ter replace paveme $13, TC Asphalt pavement interim $40, Concrete flatwork (2%) $, Redeemer Ter replace pa $13, TC Concrete curb & gutter (2 $8, Concrete curb & gutte $18, Snow Powder Ter replace $31, TC Concrete flatwork (2%) $8, Concrete flatwork (2% $22, New Dawn Ter replace pa $21, TG Concrete curb & gutter (2 $9, Parking bay marking $ Highcroft Ter replace pav $2, TG Concrete flatwork (2%) $11, Parking bay marking $1, Parkland Farms Ter repla $114, Parking bay marking $1, Melville Ter replace pave $8,62 10 BC Parking bay marking $ Winter Wind Ter replace $7, BT Angela Faye Sq replace $23, Flowing Spring Sq replace $26, BT Connie Marie Ter replace $27, Cedar Crest Alley replace $19,92 13 BT Dorothy Ann Ter replace $7, Concrete curb & gutter (2 $9, BT Franklin Benjamin Ter re $24, Concrete flatwork (2%) $,640 1 BT Patrick Wayne Sq replac $39, Asphalt pavement interim $8,73 19 BT Concrete curb & gutter (2 $3, Concrete curb & gutter (2 $4, BT Concrete flatwork (2%) $3, Concrete flatwork (2%) $,6 168 B Asphalt pavement interim $22, Trellis Sq replace paveme $12, B Concrete curb & gutter (2% $4, Balduck Ter replace pave $16, B Concrete flatwork (2%) $2, Verde Gate Ter replace p $7, Vienna Green Ter replace $29, Great Heron Sq replace p $21, Pale Iris Ter replace pave $18, Wispy Green Ter replace $13, Sweet Jen Ter replace pa $10, Gray Falcon Sq replace p $, Twitter Sq replace pavem $4, Hawksbill Sq replace pav $4, Amberjack Sq replace pa $1, East parking area replace $7, Concrete curb & gutter (2 $8, Concrete flatwork (2%) $12, TC Parking bay marking $1, TG Parking bay marking $1,034 Total Scheduled Replacements $81,431 Total Scheduled Replacements $27,989 Total Scheduled Replacements $612,6

239 Projected Annual Replacements - Page C12 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 31 TO 33 Item YEAR 31 $ Item YEAR 32 $ Item YEAR 33 $ Parking bay marking $1, Parking bay marking $2, Asphalt pavement interim $44, Asphalt pavement inte $3, Parking bay marking $1, Concrete curb & gutter (2 $9, Evening Primrose replace $9, TC Amber Run Ter replace $1, Concrete flatwork (2%) $, Fresh Rain Sq replace pa $, TC Bliss Ter replace pavem $8, Concrete curb & gutte $18, Wild Iris Ter replace pave $3, TC Bollinger Ter replace pa $20, Concrete flatwork (2% $22, Sandwort Ter replace pav $13, TC Breezy Hollow Dr replac $14, Parking bay marking $ Concrete curb & gutter (2 $3, TC Goldsborough Ter replac $36, Parking bay marking $1, Concrete flatwork (2%) $2, TC Peregrine Ter replace pa $21, Parking bay marking $1, Asphalt pavement interim $74, TC Rachels Row Ter replac $10, BC Parking bay marking $ Concrete curb & gutter (2 $13, TC Rhett Dr replace paveme $19, BT Asphalt pavement interim $14, Concrete flatwork (2%) $13, TC Sagamore Sq replace pa $1, BT Concrete curb & gutter (2 $3, Asphalt pavement interim $0, TC Thornback Ter replace p $21, BT Concrete flatwork (2%) $3, Concrete curb & gutter (2 $11, TC Yancy Ter replace pave $3, B Amber Grove Terr replace $13, Concrete flatwork (2%) $11, TC Bollinger Ter replace pa $12, B Tradewind Drive replace p $8, BC Asphalt pavement interim $18, TC Carlington Dr replace pa $4, B Violet Mist Terr replace pa $7, BC Concrete curb & gutter (2 $18, TC Concrete curb & gutter (2 $8, B Castle Ridge Way replace $44, BC Concrete flatwork (2%) $22, TC Concrete flatwork (2%) $8, B Concrete curb & gutter (2% $4, BT Parking bay marking $ TG Riding Reins Ter replace $26, B Concrete flatwork (2%) $2, B Parking bay marking $ TG Boca Field Ter replace p $46,7 193 TG Christina Ridge Sq repla $6, TG Christophers View Ter re $9, TG Grahams Stable Sq repla $94, TG Jessica Farm Ter replace $31, TG Flynn Fields Ter replace $8, TG Biggers Farm Ter replac $9, TG Concrete curb & gutter (2 $9, TG Concrete flatwork (2%) $11,18 Total Scheduled Replacements $396,238 Total Scheduled Replacements $609,762 Total Scheduled Replacements $284,823

240 Projected Annual Replacements - Page C13 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 34 TO 36 Item YEAR 34 $ Item YEAR 3 $ Item YEAR 36 $ Asphalt pavement interim $37, Parking bay marking $1, Parking bay marking $2, Concrete curb & gutter (2 $9, Asphalt pavement inte $38, Parking bay marking $1, Concrete flatwork (2%) $, Asphalt pavement - interim $13, TC Asphalt pavement interim $32, Asphalt pavement interim $9, Concrete curb & gutter (2 $3, TC Concrete curb & gutter (2 $8, Concrete curb & gutter (2 $4, Concrete flatwork (2%) $2, TC Concrete flatwork (2%) $8, Concrete flatwork (2%) $, Benfold Dr/Sq replace pa $129, TG Asphalt pavement - inter $33, Asphalt pavement interim $27, Cardina Alley replace pav $4, TG Concrete curb & gutter (2 $9, Concrete curb & gutter (2 $8, Flattery Alley replace pav $10, TG Concrete flatwork (2%) $11, Concrete flatwork (2%) $12, Haraden Alley replace pa $4, TC Parking bay marking $1, Lullaby St replace pavem $3, TG Parking bay marking $1, Dreamweaver Dr replace $48, Kindred Ter replace pave $19, Lenox Park Ter replace p $9, Kingsdale Ter replace pa $3, Rose Leigh Ter replace p $1, Sailfish Ter replace pavem $8, Mantua Sq replace pavem $32, Willow Bend Ter replace $21, Thunder Branch Ter repla $119, Concrete curb & gutter (2 $13, Concrete flatwork (2%) $13, Epperson Drive replace p $69, Riggins Ridge Way replac $26, Safe Harbor Ter replace p $, Fox Tracks Way replace $17, Ashwood Moss Pl replace $1, Adagio Ter replace pavem $7, Hillgate Ter replace pave $18, Knotty Oak Ter replace p $12, Soft Breeze Ter replace p $7, Hampton Woods Way rep $26, Ivy Walk replace paveme $, Falling Garden Way repla $8, Marble Canyon Ter replac $7, Nantucket Fog Ter replac $16, Twilight Glen Alley replac $11, Monticello Alley replace p $4, Concrete curb & gutter (2 $11, Concrete flatwork (2%) $11, BC Palladian Blue Ter replac $36, BC Provencial Alley replace $17, BC Epperson Dr replace pav $2, BC Cameron Glen Alley repl $8, BC White Castle Alley replac $17, BC Lingmont Alley replace p $6, BC Ashwood Moss Ter repla $12, BC Concrete curb & gutter (2 $18, BC Concrete flatwork (2%) $22, BT Parking bay marking $ B Parking bay marking $781 Total Scheduled Replacements $122,348 Total Scheduled Replacements $1,136,682 Total Scheduled Replacements $107,17

241 Projected Annual Replacements - Page C14 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 37 TO 39 Item YEAR 37 $ Item YEAR 38 $ Item YEAR 39 $ Cartier Ter replace pave $24, Asphalt pavement interim $40, Parking bay marking $1, Regal Wood Dr replace p $38, Concrete curb & gutter (2 $9, Asphalt pavement inte $44, Livingston Ter replace pa $30, Concrete flatwork (2%) $, Asphalt pavement - interim $14, LaSalle Ter replace pave $16, Asphalt pavement interim $10, Concrete curb & gutter (2 $3, Captain Smith Alley repla $19, Concrete curb & gutter (2 $4, Concrete flatwork (2%) $2, Balboa Alley replace pav $13, Concrete flatwork (2%) $, Asphalt pavement interim $9, Cortez Ter replace pavem $24, Asphalt pavement interim $30, Concrete curb & gutter (2 $13, Desoto Ter replace pave $10, Concrete curb & gutter (2 $8, Concrete flatwork (2%) $13, Sundew Alley replace pa $4, Concrete flatwork (2%) $12, Asphalt pavement interim $40, Magellan Sq replace pav $9, TC Parking bay marking $1, Concrete curb & gutter (2 $11, Coronado Ter replace pa $19, TG Asphalt pavement - inter $37, Concrete flatwork (2%) $11, Edsen Ter replace pavem $9, TG Parking bay marking $1, BC Asphalt pavement interim $14, Concrete curb & gutter (2 $9, BC Concrete curb & gutter (2 $18, Concrete flatwork (2%) $, BC Concrete flatwork (2%) $22, Concrete curb & gutte $18, BT Parking bay marking $ Concrete flatwork (2% $22, B Parking bay marking $ Parking bay marking $ Parking bay marking $1, Parking bay marking $1,37 10 BC Parking bay marking $ BT Asphalt pavement interim $1, BT Concrete curb & gutter (2 $3, BT Concrete flatwork (2%) $3, B Asphalt pavement interim $17, B Concrete curb & gutter (2% $4, B Concrete flatwork (2%) $2,310 Total Scheduled Replacements $414,98 Total Scheduled Replacements $167,293 Total Scheduled Replacements $274,360

242 Projected Annual Replacements - Page C1 Town Home Reserve September 30, TOWN HOM16 PROJECTED REPLACEMENTS - YEARS 40 TO 42 Item 20 - YEAR 40 $ Item 206 (beyond Study Period) $ Item 207 (beyond Study Period) $ 3 12 Parking bay marking $2, Asphalt pavement interim $3, Asphalt pavement interim $46, Parking bay marking $1, Concrete curb & gutter (2 $9, Concrete curb & gutter (2 $9, TC Asphalt pavement interim $3, Concrete flatwork (2%) $, Concrete flatwork (2%) $, TC Concrete curb & gutter (2 $8, Concrete curb & gutte $18, Claxton Ter replace pave $9, TC Concrete flatwork (2%) $8, Concrete flatwork (2% $22, Firedrake Ter replace pav $9, TG Concrete curb & gutter (2 $9, Parking bay marking $ Grayling Ter replace pave $9, TG Concrete flatwork (2%) $11, Parking bay marking $1, Orangetip Ter replace pa $36, Parking bay marking $1, Washburn Ter replace pa $9,76 10 BC Parking bay marking $ Concrete curb & gutter (2 $4, BT Asphalt pavement interim $17, Concrete flatwork (2%) $,6 19 BT Concrete curb & gutter (2 $3, Asphalt pavement interim $34, BT Concrete flatwork (2%) $3, Concrete curb & gutter (2 $8, B Asphalt pavement interim $19, Concrete flatwork (2%) $12, B Concrete curb & gutter (2% $4, TC Parking bay marking $1, B Concrete flatwork (2%) $2, TG Asphalt pavement - inter $42, TG Parking bay marking $1,034 Total Scheduled Replacements $76,96 Total Scheduled Replacements $147,26 Total Scheduled Replacements $246,344

243 Cash Flow Method Accounting Summary - Page CF1 Town Home Reserve September 30, TOWN HOM16 CASH FLOW METHOD ACCOUNTING SUMMARY This Town Home Reserve - Cash Flow Method Accounting Summary is an attachment to the Town Home Reserve - Replacement Reserve Study dated September 30, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Cash Flow Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. CASH FLOW METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 204 Projected Replacements listed in the Town Home Reserve Replacement Reserve Inventory has been assigned to one of 13 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Cash Flow Method. THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $00,000 Beginning Balance (at the start of the Study Year) and the $939,733 of additional Replacement Reserve Funding in 2016 through 2018 (as calculated in the Replacement Reserve Analysis) to each of the 204 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and discussed below. The calculated data includes: m Identification and estimated cost of each Projected Replacement scheduled in years 2016 through m Allocation of the $00,000 Beginning Balance to the Projected Replacements by Chronological Allocation. m Allocation of the $939,733 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by Chronological Allocation. CHRONOLOGICAL ALLOCATION. Chronological Allocation assigns Replacement Reserves to Projected Replacements on a "first come, first serve" basis in keeping with the basic philosophy of the Cash Flow Method. The Chronological Allocation methodology is outlined below. m The first step is the allocation of the $00,000 Beginning Balance to the Projected Replacements in the Study Year. Remaining unallocated funds are next allocated to the Projected Replacements in subsequent years in chronological order until the total of Projected Replacements in the next year is greater than the unallocated funds. Projected Replacements in this year are partially funded with each replacement receiving percentage funding. The percentage of funding is calculated by dividing the unallocated funds by the total of Projected Replacements in the partially funded year. At Town Home Reserve the Beginning Balance funds all Scheduled Replacements in the Study Year through 2019 and provides partial funding (31%) of replacements scheduled in m The next step is the allocation of the $313,244 of 2016 Cash Flow Method Reserve Funding calculated in the Replacement Reserve Analysis. These funds are first allocated to fund the partially funded Projected Replacements and then to subsequent years in chronological order as outlined above. At Town Home Reserve the Beginning Balance and the 2016 Replacement Reserve Funding, funds replacements through 2020 and partial funds (18.%) replacements in m Allocations of the 2017 and 2018 Reserve Funding are done using the same methodology. m The Three-Year Replacement Funding Report details component by component allocations made by Chronological Allocation.

244 Cash Flow Method Accounting Summary - Page CF2 Town Home Reserve September 30, TOWN HOM CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 204 Projected Replacements included in the Town Home Reserve Replacement Reserve Inventory has been assigned to one of the 13 categories listed in TABLE CF1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $00,000 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $813,244 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $80,824. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 4, & 6 - SITE IMPROVEMENTS 4 to 16 years 0 to 12 years $442,370 $161,183 $221,192 ($9,388) $322,988 SECTION 12 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 13 years $461,12 $4,061 $10,300 $64,361 SECTION 1 - OLDER SITE IMPROVEMENT 4 to 16 years 1 to 13 years $114,31 $19,6 $3,87 $23,29 SECTIONS 1 & 16 - NEWER SITE IMPROVE 4 to 16 years 2 to 14 years $464,82 $1,737 $28,031 $79,768 SECTION 19 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 13 years $349,314 $49,23 $9,461 $8,984 SECTION 22 - SITE IMPROVEMENTS - TOW 4 to 16 years 2 to 14 years $169,887 $20,437 $310 $20,747 SECTION 24 - SITE IMPROVEMENTS - TOW 4 to 16 years 6 to 18 years $741,779 SECTION 33 - SITE IMPROVEMENTS - TOW 4 to 16 years 6 to 18 years $04,478 BRAMBLETON CORNER (BC) SECTION - SI 4 to 16 years 6 to 18 years $214,71 BELMONT TRACE (BT) SECTION - SITE IMP 4 to 16 years 0 to 12 years $177,867 $29,38 $1,71 ($21,436) $23,637 BRANDT SECTION (B) - SITE IMPROVEMEN 4 to 16 years 4 to 16 years $218,3 $7,761 $17,078 $24,839 TOWN CENTER (TC) RESIDENTIAL SECTIO 4 to 16 years 1 to 1 years $404,12 $0,863 $220 $1,083 TRENT GROVE (TG) - SITE IMPROVEMENT 4 to 16 years 1 to 1 years $42,931 $,421 $7,063 $62,484

245 Cash Flow Method Accounting Summary - Page CF3 Town Home Reserve September 30, TOWN HOM CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 204 Projected Replacements included in the Town Home Reserve Replacement Reserve Inventory has been assigned to one of the 13 categories listed in TABLE CF2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $732,420 on January 1, m Total reserve funding (including the Beginning Balance) of $1,126,489 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2017 being accomplished in 2017 at a cost of $122,348. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 4, & 6 - SITE IMPROVEMENTS 4 to 16 years 1 to 1 years $442,370 $322,988 $823 $323,810 SECTION 12 - SITE IMPROVEMENTS - TOW 4 to 16 years 0 to 12 years $461,12 $64,361 $4,432 ($2,01) $7,778 SECTION 1 - OLDER SITE IMPROVEMENT 4 to 16 years 0 to 12 years $114,31 $23,29 $17,090 ($19,6) $20,96 SECTIONS 1 & 16 - NEWER SITE IMPROVE 4 to 16 years 1 to 13 years $464,82 $79,768 $28,69 $108,337 SECTION 19 - SITE IMPROVEMENTS - TOW 4 to 16 years 0 to 12 years $349,314 $8,984 $41,730 ($48,46) $2,28 SECTION 22 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 13 years $169,887 $20,747 $13,962 $34,709 SECTION 24 - SITE IMPROVEMENTS - TOW 4 to 16 years to 17 years $741,779 $,97 $,97 SECTION 33 - SITE IMPROVEMENTS - TOW 4 to 16 years to 17 years $04,478 $40,92 $40,92 BRAMBLETON CORNER (BC) SECTION - SI 4 to 16 years to 17 years $214,71 $3,610 $3,610 BELMONT TRACE (BT) SECTION - SITE IMP 4 to 16 years 1 to 1 years $177,867 $23,637 $03 $24,140 BRANDT SECTION (B) - SITE IMPROVEMEN 4 to 16 years 3 to 1 years $218,3 $24,839 $03 $2,342 TOWN CENTER (TC) RESIDENTIAL SECTIO 4 to 16 years 0 to 14 years $404,12 $1,083 $968 ($1,188) $0,863 TRENT GROVE (TG) - SITE IMPROVEMENT 4 to 16 years 0 to 14 years $42,931 $62,484 $31,13 ($1,034) $92,603

246 Cash Flow Method Accounting Summary - Page CF4 Town Home Reserve September 30, TOWN HOM CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 204 Projected Replacements included in the Town Home Reserve Replacement Reserve Inventory has been assigned to one of the 13 categories listed in TABLE CF3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $923,317 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $1,439,733 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2018 being accomplished in 2018 at a cost of $61,32. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 4, & 6 - SITE IMPROVEMENTS 4 to 16 years 0 to 14 years $442,370 $323,810 $48,16 ($1,276) $370,691 SECTION 12 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 1 years $461,12 $7,778 $2,046 $9,824 SECTION 1 - OLDER SITE IMPROVEMENT 4 to 16 years 3 to 1 years $114,31 $20,96 $0 $20,96 SECTIONS 1 & 16 - NEWER SITE IMPROVE 4 to 16 years 0 to 12 years $464,82 $108,337 $4,27 ($38,998) $123,614 SECTION 19 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 1 years $349,314 $2,28 $1,067 $3,32 SECTION 22 - SITE IMPROVEMENTS - TOW 4 to 16 years 0 to 12 years $169,887 $34,709 $8,122 ($20,296) $22,34 SECTION 24 - SITE IMPROVEMENTS - TOW 4 to 16 years 4 to 16 years $741,779 $,97 $32,433 $88,408 SECTION 33 - SITE IMPROVEMENTS - TOW 4 to 16 years 4 to 16 years $04,478 $40,92 $23,87 $64,782 BRAMBLETON CORNER (BC) SECTION - SI 4 to 16 years 4 to 16 years $214,71 $3,610 $20,02 $6,112 BELMONT TRACE (BT) SECTION - SITE IMP 4 to 16 years 0 to 14 years $177,867 $24,140 $23,889 ($781) $47,249 BRANDT SECTION (B) - SITE IMPROVEMEN 4 to 16 years 2 to 14 years $218,3 $2,342 $2,414 $0,76 TOWN CENTER (TC) RESIDENTIAL SECTIO 4 to 16 years 1 to 13 years $404,12 $0,863 $2,898 $103,762 TRENT GROVE (TG) - SITE IMPROVEMENT 4 to 16 years 1 to 13 years $42,931 $92,603 $20,8 $113,188

247 Cash Flow Method Accounting Summary - Page CF Town Home Reserve September 30, TOWN HOM16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CF4 below details the allocation of the $00,000 Beginning Balance, as reported by the Association and the $939,733 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 204 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $00,000 on January 1, m Replacement Reserves on Deposit totaling $732,420 on January 1, m Replacement Reserves on Deposit totaling $923,317 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $1,439,733 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $264,24. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance SECTIONS 4, & 6 - SITE IMPROVE Cartier Ter replace pavement 24,02 7,07 16,18 24,02 24,02 24, Regal Wood Dr replace pavement 38,967 12,17 26,792 38,967 38,967 38, Livingston Ter replace pavement 30,396 9,497 20,898 30,396 30,396 30, LaSalle Ter replace pavement 16,864,269 11,9 16,864 16,864 16, Captain Smith Alley replace pavem 19,00,92 13,097 19,00 19,00 19, Balboa Alley replace pavement 13,00 4,063 8,941 13,00 13,00 13, Cortez Ter replace pavement 24,971 7,802 17,168 24,971 24,971 24, Desoto Ter replace pavement 10,649 3,327 7,321 10,649 10,649 10, Sundew Alley replace pavement 4,883 1,26 3,37 4,883 4,883 4, Magellan Sq replace pavement 9,108 29,717 6,391 9,108 9,108 9, Coronado Ter replace pavement 19,732 6,16 13,66 19,732 19,732 19, Edsen Ter replace pavement 9,223 2,882 6,341 9,223 9,223 9, Asphalt pavement interim cycle 1 3,636 33,677 33, Asphalt pavement interim cycle 2 39, Asphalt pavement interim cycle 3 44,46 44,46 (44,46) Concrete curb & gutter (2%) 9,203 12,078 6,327 (9,203) 9,203 9,203 8,697 17, Concrete flatwork (2%),640 7,402 3,878 (,640),640,640,330 10, Parking bay marking 1,276 1,276 1, , (1,276) 1,276 SECTION 12 - SITE IMPROVEMENT Orefield Ter replace pavement 10, Faith Ter replace pavement 13, Redeemer Ter replace pavement 13, Snow Powder Ter replace pavement 31, New Dawn Ter replace pavement 21, Highcroft Ter replace pavement 2, Parkland Farms Ter replace paveme 114, Melville Ter replace pavement 8, Winter Wind Ter replace pavement 7, Flowing Spring Sq replace pavemen 26, Cedar Crest Alley replace pavement 19, Asphalt pavement interim cycle 1 37,172 37,172 37,172 (37,172) Asphalt pavement interim cycle 2 40,890 7,7 7,7 33,333 40,890 40, Asphalt pavement interim cycle 3 46, Concrete curb & gutter (2%) 9,203 9,203 1,701 10,903 7,02 (9,203) 9,203 9, Concrete flatwork (2%),640,640 1,042 6,682 4,98 (,640),640, Parking bay marking 2,046 2,046 2,046 2,046 2,046 4,092 SECTION 1 - OLDER SITE IMPROV 36 1 Claxton Ter replace pavement 9, Firedrake Ter replace pavement 9, Grayling Ter replace pavement 9, Orangetip Ter replace pavement 36,162

248 Cash Flow Method Accounting Summary - Page CF6 Town Home Reserve September 30, TOWN HOM16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 40 1 Washburn Ter replace pavement 9, Asphalt pavement interim cycle 1 8, Asphalt pavement interim cycle 2 9,609 9,609 9,609 (9,609) 43 1 Asphalt pavement interim cycle 3 10,919 2,018 2,018 8,901 10,919 10, Concrete curb & gutter (2%) 4,490 4, ,320 3,660 (4,490) 4,490 4, Concrete flatwork (2%),6,6 1,027 6,82 4,29 (,6),6,6 SECTIONS 1 & 16 - NEWER SITE I 46 1 Spice Bush Ter replace pavement 23, Twin Falls Ter replace pavement 2, Twinleaf Ter replace pavement 11, Bowditch Sq replace pavement 10, Bremerton Alley replace pavement 16, Bulwark Ter replace pavement 16, Cantrell Alley replace pavement 3, Eversole Ter replace pavement 22, Fanshaw Sq replace pavement 17, Fox Fire Ter replace pavement 7, Glucksman Alley replace pavement 7, Redstone Ter replace pavement 33, Rockside Ter replace pavement 32, Rose Quartz Sq replace pavement 12, Malachite Ter replace pavement 16, Townsend Alley replace pavement 16, Asphalt pavement interim cycle 1 3, Asphalt pavement interim cycle 2 38,998 38,998 38,998 38,998 (38,998) Asphalt pavement interim cycle 3 44,316 28,69 28,69 1,747 44, Concrete curb & gutter (2%) 18,222,693 12,28 18,222 18,222 17,220 3, Concrete flatwork (2%) 22,48 7,04 1,03 22,48 22,48 21,308 43,86 SECTION 19 - SITE IMPROVEMENT Trellis Sq replace pavement 12, Balduck Ter replace pavement 16, Verde Gate Ter replace pavement 7, Vienna Green Ter replace pavement 29, Great Heron Sq replace pavement 21, Pale Iris Ter replace pavement 18, Wispy Green Ter replace pavement 13, Sweet Jen Ter replace pavement 10, Gray Falcon Sq replace pavement, Twitter Sq replace pavement 4, Hawksbill Sq replace pavement 4, Amberjack Sq replace pavement 1, East parking area replace pavement 7, Asphalt pavement interim cycle 1 27,30 27,30 27,30 (27,30) Asphalt pavement interim cycle 2 30,08,60,60 24,2 30,08 30, Asphalt pavement interim cycle 3 34, Concrete curb & gutter (2%) 8,323 8,323 1,38 9,861 6,78 (8,323) 8,323 8, Concrete flatwork (2%) 12,783 12,783 2,362 1,14 10,420 (12,783) 12,783 12, Parking bay marking 1,067 1,067 1,067 1,067 1,067 2,134 SECTION 22 - SITE IMPROVEMENT Evening Primrose replace pavement 9, Fresh Rain Sq replace pavement, Wild Iris Ter replace pavement 3, Sandwort Ter replace pavement 13, Asphalt pavement - interim cycle 1 13,606 13,606 13,606 13,606 (13,606) Asphalt pavement - interim cycle 2 14,967 9,649 9,649,318 14, Asphalt pavement - interim cycle 3 17, Concrete curb & gutter (2%) 3,904 3,904 3,904 2,17 6,421 1,387 (3,904) 3, Concrete flatwork (2%) 2,786 2,786 2,786 1,796 4, (2,786) 2, Parking bay marking SECTION 24 - SITE IMPROVEMENT Benfold Dr/Sq replace pavement 129, Cardina Alley replace pavement 4, Flattery Alley replace pavement 10, Haraden Alley replace pavement 4, Lullaby St replace pavement 3, Dreamweaver Dr replace pavement 48, Kindred Ter replace pavement 19, Lenox Park Ter replace pavement 9,042

249 Cash Flow Method Accounting Summary - Page CF7 Town Home Reserve September 30, TOWN HOM16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance Kingsdale Ter replace pavement 3, Rose Leigh Ter replace pavement 1, Sailfish Ter replace pavement 8, Mantua Sq replace pavement 32, Willow Bend Ter replace pavement 21, Thunder Branch Ter replace paveme 119, Asphalt pavement interim cycle 1 9,600 38,422 38,422 21,178 9, Asphalt pavement interim cycle 2 6, Asphalt pavement interim cycle 3 74, Concrete curb & gutter (2%) 13,36 8,616 8,616 4,749 13, Concrete flatwork (2%) 13,863 8,937 8,937 4,926 13, Parking bay marking 1,672 1,80 1,80 SECTION 33 - SITE IMPROVEMENT Epperson Drive replace pavement 69, Riggins Ridge Way replace pavemen 26, Safe Harbor Ter replace pavement, Fox Tracks Way replace pavement 17, Ashwood Moss Pl replace pavement 1, Adagio Ter replace pavement 7, Hillgate Ter replace pavement 18, Knotty Oak Ter replace pavement 12, Soft Breeze Ter replace pavement 7, Hampton Woods Way replace pavem 26, Ivy Walk replace pavement, Falling Garden Way replace paveme 8, Marble Canyon Ter replace pavemen 7, Nantucket Fog Ter replace pavemen 16, Twilight Glen Alley replace paveme 11, Monticello Alley replace pavement 4, Asphalt pavement interim cycle 1 40,107 2,86 2,86 14,22 40, Asphalt pavement interim cycle 2 44, Asphalt pavement interim cycle 3 0, Concrete curb & gutter (2%) 11,61 7,11 7,11 4,140 11, Concrete flatwork (2%) 11,724 7,8 7,8 4,166 11, Parking bay marking 1,37 1,299 1,299 BRAMBLETON CORNER (BC) SEC 138 BC Palladian Blue Ter replace pavemen 36, BC Provencial Alley replace pavement 17, BC Epperson Dr replace pavement 2, BC Cameron Glen Alley replace pavem 8, BC White Castle Alley replace paveme 17, BC Lingmont Alley replace pavement 6, BC Ashwood Moss Ter replace paveme 12, BC Asphalt pavement interim cycle 1 14,468 9,327 9,327,141 14, BC Asphalt pavement interim cycle 2 1, BC Asphalt pavement interim cycle 3 18, BC Concrete curb & gutter (2%) 18,222 11,747 11,747 6,47 18, BC Concrete flatwork (2%) 22,48 14,36 14,36 8,012 22,48 10 BC Parking bay marking BELMONT TRACE (BT) SECTION - 11 BT Angela Faye Sq replace pavement 23, BT Connie Marie Ter replace pavemen 27, BT Dorothy Ann Ter replace pavement 7, BT Franklin Benjamin Ter replace pave 24,64 1 BT Patrick Wayne Sq replace pavemen 39, BT Asphalt pavement interim cycle 1 14,200 14,200 (14,200) 17 BT Asphalt pavement interim cycle 2 1,620 4,881 10,740 1,620 1,620 1, BT Asphalt pavement interim cycle 3 17,70 16,774 16, BT Concrete curb & gutter (2%) 3,738 4,906 2,70 (3,738) 3,738 3,738 3,32 7, BT Concrete flatwork (2%) 3,498 4,91 2,40 (3,498) 3,498 3,498 3,30 6, BT Parking bay marking , (781) 781 BRANDT SECTION (B) - SITE IMPR 162 B Amber Grove Terr replace pavement 13, B Tradewind Drive replace pavement 8, B Violet Mist Terr replace pavement 7,40 16 B Castle Ridge Way replace pavement 44, B Asphalt pavement interim cycle 1 17,602,00 12,102 17,602 17,602 17, B Asphalt pavement interim cycle 2 19,362 18,297 18,297

250 Cash Flow Method Accounting Summary - Page CF8 Town Home Reserve September 30, TOWN HOM16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 168 B Asphalt pavement interim cycle 3 22, B Concrete curb & gutter (2%) 4,927 1,40 3,388 4,927 4,927 4,66 9, B Concrete flatwork (2%) 2, ,88 2,310 2,310 2,183 4, B Parking bay marking TOWN CENTER (TC) RESIDENTIAL 172 TC Amber Run Ter replace pavement 1, TC Bliss Ter replace pavement 8, TC Bollinger Ter replace pavement 20, TC Breezy Hollow Dr replace paveme 14, TC Goldsborough Ter replace paveme 36, TC Peregrine Ter replace pavement 21, TC Rachels Row Ter replace pavemen 10, TC Rhett Dr replace pavement 19, TC Sagamore Sq replace pavement 1, TC Thornback Ter replace pavement 21, TC Yancy Ter replace pavement 3, TC Bollinger Ter replace pavement 12, TC Carlington Dr replace pavement 4, TC Asphalt pavement interim cycle 1 32,231 32,231 32,231 32,231 32, TC Asphalt pavement interim cycle 2 3,44 3,44 3, TC Asphalt pavement interim cycle 3 40, TC Concrete curb & gutter (2%) 8,998 8,998 8,998 8,998 8,998 17, TC Concrete flatwork (2%) 8,447 8,447 8,447 8,447 8,447 16, TC Parking bay marking 1,188 1, , (1,188) 1,188 1,188 TRENT GROVE (TG) - SITE IMPROV 191 TG Riding Reins Ter replace pavement 26, TG Boca Field Ter replace pavement 46,7 193 TG Christina Ridge Sq replace paveme 6, TG Christophers View Ter replace pave 9, TG Grahams Stable Sq replace paveme 94, TG Jessica Farm Ter replace pavement 31, TG Flynn Fields Ter replace pavement 8, TG Biggers Farm Ter replace pavemen 9, TG Asphalt pavement - interim cycle 1 33,802 33,802 33,802 33,802 33, TG Asphalt pavement - interim cycle 2 37,182 6,872 6,872 30,311 37,182 37, TG Asphalt pavement - interim cycle 3 42, TG Concrete curb & gutter (2%) 9,066 9,066 9,066 9,066 9,066 18, TG Concrete flatwork (2%) 11,18 11,18 11,18 11,18 11,18 23, TG Parking bay marking 1,034 1, , (1,034) 1,034 1,034

251 Component Method - Page CM1 Town Home Reserve September 30, TOWN HOM16 COMPONENT METHOD $449,432 COMPONENT METHOD RECOMMENDED ANNUAL FUNDING OF REPLACEMENT RESERVES IN THE STUDY YEAR, General. The Component Method (also referred to as the Full Funded Method) is a very conservative mathematical model developed by HUD in the early 1980s. Each of the 204 Projected Replacements listed in the Replacement Reserve Inventory is treated as a separate account. The Beginning Balance is allocated to each of the individual accounts, as is all subsequent funding of Replacement Reserves. These funds are "locked" in these individual accounts and are not available to fund other Projected Replacements. The calculation of Recommended Annual Funding of Replacement Reserves is a multi-step process outlined in more detail on Page CM2. Component Method - Cumulative Receipts and Expenditures Graph $12,000,000 Component Method - Cumulative Receipts Component Method - Year End Balance Projected Replacements - Cumulative Expenditures $11,061,118 $10,000,000 $8,679,202 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $2,381,916 $

252 Component Method - Page CM2 Town Home Reserve September 30, TOWN HOM16 COMPONENT METHOD (cont'd) Current Funding Objective. A Current Funding Objective is calculated for each of the Projected Replacements listed in the Replacement Reserve Inventory. Replacement Cost is divided by the Normal Economic Life to determine the nominal annual contribution. The Remaining Economic Life is then subtracted from the Normal Economic Life to calculate the number of years that the nominal annual contribution should have been made. The two values are then multiplied to determine the Current Funding Objective. This is repeated for each of the 204 Projected Replacements. The total, $1,067,31, is the Current Funding Objective. For an example, consider a very simple Replacement Reserve Inventory with one Projected Replacement, a fence with a $1,000 Replacement Cost, a Normal Economic Life of 10 years, and a Remaining Economic Life of 2 years. A contribution to Replacement Reserves of $100 ($1, years) should have been made in each of the previous 8 years (10 years - 2 years). The result is a Current Funding Objective of $800 (8 years x $100 per year). Funding Percentage. The Funding Percentage is calculated by dividing the Beginning Balance ($00,000) by the Current Funding Objective ($1,067,31). At Town Home Reserve the Funding Percentage is 46.8% Allocation of the Beginning Balance. The Beginning Balance is divided among the 204 Projected Replacements in the Replacement Reserve Inventory. The Current Funding Objective for each Projected Replacement is multiplied by the Funding Percentage and these funds are then "locked" into the account of each item. If we relate this calculation back to our fence example, it means that the Association has not accumulated $800 in Reserves (the Funding Objective), but rather at 46.8 percent funded, there is $37 in the account for the fence. Annual Funding. The Recommended Annual Funding of Replacement Reserves is then calculated for each Projected Replacement. The funds allocated to the account of the Projected Replacement are subtracted from the Replacement Cost. The result is then divided by the number of years until replacement, and the result is the annual funding for each of the Projected Replacements. The sum of these is $449,432, the Component Method Recommended Annual Funding of Replacement Reserves in the Study Year (2016). In our fence example, the $37 in the account is subtracted from the $1,000 Total Replacement Cost and divided by the 2 years that remain before replacement, resulting in an annual deposit of $313. Next year, the deposit remains $313, but in the third year, the fence is replaced and the annual funding adjusts to $100. Adjustment to the Component Method for interest and inflation. The calculations in the Replacement Reserve Analysis do not account for interest earned on Replacement Reserves, inflation, or a constant annual increase in Annual Funding of Replacement Reserves. The Component Method is a very conservative method and if the Analysis is updated regularly, adequate funding will be maintained without the need for adjustments. Component Method Data - Years 1 through 30 Year Beginning balance $00,000 Recommended annual funding $449,432 $41,661 $392,014 $384,04 $377,473 $3,039 $348,446 $30,910 $349,732 $348,404 Interest on reserves Expenditures $80,824 $122,348 $61,32 $107,17 $410,627 $167,293 $274,360 $76,96 $147,26 $246,344 Year end balance $868,608 $1,161,921 $1,492,84 $1,769,463 $1,736,308 $1,924,04 $1,998,139 $2,272,44 $2,474,930 $2,76,990 Cumulative Expenditures $80,824 $203,172 $264,24 $371,699 $782,326 $949,619 $1,223,979 $1,300,7 $1,447,831 $1,694,17 Cumulative Receipts $949,432 $1,36,093 $1,77,108 $2,141,162 $2,18,634 $2,873,673 $3,222,119 $3,73,029 $3,922,762 $4,271,166 Year Recommended annual funding $344,4 $337,691 $337,24 $33,839 $333,160 $332,06 $332,06 $333,063 $333,063 $342,766 Interest on reserves Expenditures $48,791 $81,431 $27,989 $612,6 $396,238 $609,762 $284,823 $122,348 $1,136,682 $107,17 Year end balance $2,372,6 $2,628,91 $2,708,171 $2,431,44 $2,368,367 $2,091,111 $2,138,79 $2,349,10 $1,4,891 $1,781,481 Cumulative Expenditures $2,242,966 $2,324,397 $2,82,386 $3,194,90 $3,91,189 $4,200,91 $4,48,773 $4,608,121 $,744,804 $,81,979 Cumulative Receipts $4,61,621 $4,93,312 $,290,7 $,626,396 $,99,6 $6,292,062 $6,624,68 $6,97,632 $7,290,69 $7,633,461 Year Recommended annual funding $342,766 $342,766 $342,766 $342,766 $342,766 $342,766 $342,766 $342,766 $342,766 $342,766 Interest on reserves Expenditures $414,98 $167,293 $274,360 $76,96 $147,26 $246,344 $48,791 $81,431 $27,989 $612,6 Year end balance $1,709,649 $1,88,121 $1,93,27 $2,219,697 $2,41,206 $2,11,628 $2,30,603 $2,66,938 $2,61,71 $2,381,916 Cumulative Expenditures $6,266,78 $6,433,871 $6,708,231 $6,784,827 $6,932,083 $7,178,427 $7,727,217 $7,808,648 $8,066,637 $8,679,202 Cumulative Receipts $7,976,226 $8,318,992 $8,661,78 $9,004,23 $9,347,289 $9,690,0 $10,032,821 $10,37,86 $10,718,32 $11,061,118

253 Component Method Accounting Summary - Page CM3 Town Home Reserve September 30, TOWN HOM16 COMPONENT METHOD ACCOUNTING SUMMARY This Town Home Reserve - Component Method Accounting Summary is an attachment to the Town Home Reserve - Replacement Reserve Study dated September 30, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Component Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. COMPONENT METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 204 Projected Replacements listed in the Town Home Reserve Replacement Reserve Inventory has been assigned to one of 13 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Component Method. m THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $00,000 Beginning Balance (at the start of the Study Year) and the $1,27,108 of additional Replacement Reserve funding from 2016 to 2018 (as calculated in the Replacement Reserve Analysis) to each of the 204 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using the Component Method as outlined in the Replacement Reserve Analysis. The calculated data includes: m Identification and estimated cost of each Projected Replacement schedule in years 2016 through m Allocation of the $00,000 Beginning Balance to the Projected Replacements by the Component Method. m Allocation of the $1,27,108 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by the Component Method.

254 Component Method Accounting Summary - Page CM4 Town Home Reserve September 30, TOWN HOM COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 204 Projected Replacements included in the Town Home Reserve Replacement Reserve Inventory has been assigned to one of the 13 categories listed in TABLE CM1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $00,000 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $949,432 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $80,824. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE 0 to 12 years SECTIONS 4, & 6 - SITE IMPROVEMENTS 4 to 16 years 0 to 12 years $442,370 $137,46 $79,40 $9,388 $17,608 SECTION 12 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 13 years $461,12 $7,91 $47,337 $104,929 SECTION 1 - OLDER SITE IMPROVEMENT 4 to 16 years 1 to 13 years $114,31 $23,214 $14,77 $37,971 SECTIONS 1 & 16 - NEWER SITE IMPROVE 4 to 16 years 2 to 14 years $464,82 $72,20 $46,83 $119,103 SECTION 19 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 13 years $349,314 $44,79 $38,620 $83,379 SECTION 22 - SITE IMPROVEMENTS - TOW 4 to 16 years 2 to 14 years $169,887 $1,826 $1,34 $31,171 SECTION 24 - SITE IMPROVEMENTS - TOW 4 to 16 years 6 to 18 years $741,779 $27,483 $47,266 $74,70 SECTION 33 - SITE IMPROVEMENTS - TOW 4 to 16 years 6 to 18 years $04,478 $18,49 $32,7 $1,02 BRAMBLETON CORNER (BC) SECTION - SI 4 to 16 years 6 to 18 years $214,71 $6,672 $16,412 $23,084 BELMONT TRACE (BT) SECTION - SITE IMP 4 to 16 years 0 to 12 years $177,867 $29,42 $23,890 $21,436 $31,996 BRANDT SECTION (B) - SITE IMPROVEMEN 4 to 16 years 4 to 16 years $218,3 $11,69 $16,116 $27,68 TOWN CENTER (TC) RESIDENTIAL SECTIO 4 to 16 years 1 to 1 years $404,12 $24,62 $33,747 $8,372 TRENT GROVE (TG) - SITE IMPROVEMENT 4 to 16 years 1 to 1 years $42,931 $30,427 $37,081 $67,08

255 Component Method Accounting Summary - Page CM Town Home Reserve September 30, TOWN HOM COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 204 Projected Replacements included in the Town Home Reserve Replacement Reserve Inventory has been assigned to one of the 13 categories listed in TABLE CM2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $868,608 on January 1, m Total reserve funding (including the Beginning Balance) of $1,36,093 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2017 being accomplished in 2017 at a cost of $122,348. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 4, & 6 - SITE IMPROVEMENTS 4 to 16 years 1 to 1 years $442,370 $17,608 $4,377 $211,98 SECTION 12 - SITE IMPROVEMENTS - TOW 4 to 16 years 0 to 12 years $461,12 $104,929 $47,337 $2,01 $100,21 SECTION 1 - OLDER SITE IMPROVEMENT 4 to 16 years 0 to 12 years $114,31 $37,971 $14,77 $19,6 $33,073 SECTIONS 1 & 16 - NEWER SITE IMPROVE 4 to 16 years 1 to 13 years $464,82 $119,103 $46,83 $16,96 SECTION 19 - SITE IMPROVEMENTS - TOW 4 to 16 years 0 to 12 years $349,314 $83,379 $38,620 $48,46 $73,43 SECTION 22 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 13 years $169,887 $31,171 $1,34 $46,16 SECTION 24 - SITE IMPROVEMENTS - TOW 4 to 16 years to 17 years $741,779 $74,70 $47,266 $122,016 SECTION 33 - SITE IMPROVEMENTS - TOW 4 to 16 years to 17 years $04,478 $1,02 $32,7 $83,609 BRAMBLETON CORNER (BC) SECTION - SI 4 to 16 years to 17 years $214,71 $23,084 $16,412 $39,496 BELMONT TRACE (BT) SECTION - SITE IMP 4 to 16 years 1 to 1 years $177,867 $31,996 $1,192 $47,188 BRANDT SECTION (B) - SITE IMPROVEMEN 4 to 16 years 3 to 1 years $218,3 $27,68 $16,116 $43,801 TOWN CENTER (TC) RESIDENTIAL SECTIO 4 to 16 years 0 to 14 years $404,12 $8,372 $33,747 $1,188 $90,931 TRENT GROVE (TG) - SITE IMPROVEMENT 4 to 16 years 0 to 14 years $42,931 $67,08 $37,081 $1,034 $103,6

256 Component Method Accounting Summary - Page CM6 Town Home Reserve September 30, TOWN HOM COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 204 Projected Replacements included in the Town Home Reserve Replacement Reserve Inventory has been assigned to one of the 13 categories listed in TABLE CM3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $1,161,921 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $1,77,108 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2018 being accomplished in 2018 at a cost of $61,32. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 4, & 6 - SITE IMPROVEMENTS 4 to 16 years 0 to 14 years $442,370 $211,98 $4,377 $1,276 $26,08 SECTION 12 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 1 years $461,12 $100,21 $36,721 $136,972 SECTION 1 - OLDER SITE IMPROVEMENT 4 to 16 years 3 to 1 years $114,31 $33,073 $11,187 $44,260 SECTIONS 1 & 16 - NEWER SITE IMPROVE 4 to 16 years 0 to 12 years $464,82 $16,96 $46,83 $38,998 $173,812 SECTION 19 - SITE IMPROVEMENTS - TOW 4 to 16 years 1 to 1 years $349,314 $73,43 $29,4 $102,997 SECTION 22 - SITE IMPROVEMENTS - TOW 4 to 16 years 0 to 12 years $169,887 $46,16 $1,34 $20,296 $41,6 SECTION 24 - SITE IMPROVEMENTS - TOW 4 to 16 years 4 to 16 years $741,779 $122,016 $47,266 $169,283 SECTION 33 - SITE IMPROVEMENTS - TOW 4 to 16 years 4 to 16 years $04,478 $83,609 $32,7 $116,166 BRAMBLETON CORNER (BC) SECTION - SI 4 to 16 years 4 to 16 years $214,71 $39,496 $16,412 $,908 BELMONT TRACE (BT) SECTION - SITE IMP 4 to 16 years 0 to 14 years $177,867 $47,188 $1,192 $781 $61,99 BRANDT SECTION (B) - SITE IMPROVEMEN 4 to 16 years 2 to 14 years $218,3 $43,801 $16,116 $9,916 TOWN CENTER (TC) RESIDENTIAL SECTIO 4 to 16 years 1 to 13 years $404,12 $90,931 $33,89 $124,21 TRENT GROVE (TG) - SITE IMPROVEMENT 4 to 16 years 1 to 13 years $42,931 $103,6 $36,944 $140,00

257 Component Method Accounting Summary - Page CM7 Town Home Reserve September 30, TOWN HOM16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CM4 below details the allocation of the $00,000 Beginning Balance, as reported by the Association and the $1,27,108 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 204 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $00,000 on January 1, m Replacement Reserves on Deposit totaling $868,608 on January 1, m Replacement Reserves on Deposit totaling $1,161,921 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $1,77,108 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $264,24. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance SECTIONS 4, & 6 - SITE IMPROVE Cartier Ter replace pavement 24,02 7,737 3,28 10,99 3,28 14,22 3,28 17, Regal Wood Dr replace pavement 38,967 12,0,283 17,833,283 23,117,283 28, Livingston Ter replace pavement 30,396 9,789 4,121 13,910 4,121 18,032 4,121 22, LaSalle Ter replace pavement 16,864,431 2,287 7,718 2,287 10,004 2,287 12, Captain Smith Alley replace pavem 19,00 6,13 2,83 8,718 2,83 11,301 2,83 13, Balboa Alley replace pavement 13,00 4,188 1,763,91 1,763 7,71 1,763 9, Cortez Ter replace pavement 24,971 8,042 3,386 11,428 3,386 14,813 3,386 18, Desoto Ter replace pavement 10,649 3,429 1,444 4,873 1,444 6,317 1,444 7, Sundew Alley replace pavement 4,883 1, , , , Magellan Sq replace pavement 9,108 30,630 12,896 43,26 12,896 6,421 12,896 69, Coronado Ter replace pavement 19,732 6,3 2,67 9,030 2,67 11,70 2,67 14, Edsen Ter replace pavement 9,223 2,970 1,20 4,221 1,20,471 1,20 6, Asphalt pavement interim cycle 1 3,636 7,304 3,148 10,42 3,148 13,600 3,148 16, Asphalt pavement interim cycle 2 39,200 3,443 2,71 6,194 2,71 8,944 2,71 11, Asphalt pavement interim cycle 3 44,46 20,867 23,678 (44,46) 2,784 2,784 2,784, Concrete curb & gutter (2%) 9,203 4,311 4,892 (9,203) 2,301 2,301 2,301 4, Concrete flatwork (2%),640 2,642 2,998 (,640) 1,410 1,410 1,410 2, Parking bay marking 1, (1,276) SECTION 12 - SITE IMPROVEMENT Orefield Ter replace pavement 10, , , , Faith Ter replace pavement 13, , , , Redeemer Ter replace pavement 13, , , , Snow Powder Ter replace pavement 31,611 1,81 2,126 3,977 2,126 6,102 2,126 8, New Dawn Ter replace pavement 21,24 1,24 1,429 2,674 1,429 4,103 1,429, Highcroft Ter replace pavement 2,887 3,097 3,6 6,63 3,6 10,210 3,6 13, Parkland Farms Ter replace paveme 114,027 6,677 7,668 14,34 7,668 22,013 7,668 29, Melville Ter replace pavement 8, , , , Winter Wind Ter replace pavement 7, , , Flowing Spring Sq replace pavemen 26,731 1,6 1,798 3,363 1,798,160 1,798 6, Cedar Crest Alley replace pavement 19,92 1,167 1,340 2,07 1,340 3,847 1,340, Asphalt pavement interim cycle 1 37,172 1,237 10,968 26,20 10,968 (37,172) 2,323 2, Asphalt pavement interim cycle 2 40,890 11,972 4,820 16,791 4,820 21,611 4,820 26, Asphalt pavement interim cycle 3 46,466 8,163 3,830 11,993 3,830 1,823 3,830 19, Concrete curb & gutter (2%) 9,203 2,1 3,24,679 3,24 (9,203) 2,301 2, Concrete flatwork (2%),640 1,321 2,19 3,480 2,19 (,640) 1,410 1, Parking bay marking 2, , ,3 SECTION 1 - OLDER SITE IMPROV 36 1 Claxton Ter replace pavement 9,76 1, , , , Firedrake Ter replace pavement 9,76 1, , , , Grayling Ter replace pavement 9,76 1, , , , Orangetip Ter replace pavement 36,162 6,32 2,981 9,333 2,981 12,314 2,981 1,29

258 Component Method Accounting Summary - Page CM8 Town Home Reserve September 30, TOWN HOM16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 40 1 Washburn Ter replace pavement 9,76 1, , , , Asphalt pavement interim cycle 1 8, , , , Asphalt pavement interim cycle 2 9,609 3,939 2,83 6,774 2,83 (9,609) Asphalt pavement interim cycle 3 10,919 3,197 1,287 4,484 1,287,771 1,287 7, Concrete curb & gutter (2%) 4,490 1,02 1,719 2,771 1,719 (4,490) 1,123 1, Concrete flatwork (2%),6 1,301 2,127 3,428 2,127 (,6) 1,389 1,389 SECTIONS 1 & 16 - NEWER SITE I 46 1 Spice Bush Ter replace pavement 23,17 3,390 1,797,187 1,797 6,984 1,797 8, Twin Falls Ter replace pavement 2,684 3,760 1,993,73 1,993 7,746 1,993 9, Twinleaf Ter replace pavement 11,966 1, , , , Bowditch Sq replace pavement 10,742 1, , , , Bremerton Alley replace pavement 16,198 2,371 1,27 3,628 1,27 4,88 1,27 6, Bulwark Ter replace pavement 16,198 2,371 1,27 3,628 1,27 4,88 1,27 6, Cantrell Alley replace pavement 3,867,21 2,783 8,034 2,783 10,817 2,783 13, Eversole Ter replace pavement 22,68 3,304 1,71,0 1,71 6,806 1,71 8, Fanshaw Sq replace pavement 17,360 2,41 1,347 3,888 1,347,236 1,347 6,83 16 Fox Fire Ter replace pavement 7,347 1, , , , Glucksman Alley replace pavement 7,673 1, , , , Redstone Ter replace pavement 33,403 4,890 2,92 7,482 2,92 10,074 2,92 12, Rockside Ter replace pavement 32,070 4,69 2,489 7,183 2,489 9,672 2,489 12, Rose Quartz Sq replace pavement 12,726 1, , , , Malachite Ter replace pavement 16,167 2,367 1,2 3,621 1,2 4,876 1,2 6, Townsend Alley replace pavement 16,167 2,367 1,2 3,621 1,2 4,876 1,2 6, Asphalt pavement interim cycle 1 3,43 1,038 2,294 3,332 2,294,627 2,294 7, Asphalt pavement interim cycle 2 38,998 14,843 8,02 22,89 8,02 30,946 8,02 (38,998) Asphalt pavement interim cycle 3 44,316 11,677 4,663 16,340 4,663 21,003 4,663 2, Concrete curb & gutter (2%) 18,222 3,644 3,644 3,644 7,289 3,644 10, Concrete flatwork (2%) 22,48 4,10 4,10 4,10 9,019 4,10 13,29 SECTION 19 - SITE IMPROVEMENT Trellis Sq replace pavement 12, , , , Balduck Ter replace pavement 16, ,080 2,020 1,080 3,100 1,080 4, Verde Gate Ter replace pavement 7,817 4,440,098 9,38,098 14,636,098 19, Vienna Green Ter replace pavement 29,367 1,720 1,97 3,694 1,97,669 1,97 7, Great Heron Sq replace pavement 21,447 1,26 1,442 2,698 1,442 4,140 1,442, Pale Iris Ter replace pavement 18,90 1,089 1,20 2,339 1,20 3,89 1,20 4, Wispy Green Ter replace pavement 13, , , , Sweet Jen Ter replace pavement 10, , , , Gray Falcon Sq replace pavement, , Twitter Sq replace pavement 4, , Hawksbill Sq replace pavement 4, , Amberjack Sq replace pavement 1, ,073 2,006 1,073 3,079 1,073 4, East parking area replace pavement 7, , , Asphalt pavement interim cycle 1 27,30 11,211 8,070 19,281 8,070 (27,30) 1,709 1, Asphalt pavement interim cycle 2 30,08 8,808 3,46 12,3 3,46 1,901 3,46 19, Asphalt pavement interim cycle 3 34,188 6,006 2,818 8,824 2,818 11,642 2,818 14, Concrete curb & gutter (2%) 8,323 1,90 3,187,136 3,187 (8,323) 2,081 2, Concrete flatwork (2%) 12,783 2,994 4,894 7,888 4,894 (12,783) 3,196 3, Parking bay marking 1, SECTION 22 - SITE IMPROVEMENT Evening Primrose replace pavement 9,162 2,786 6,18 8,94 6,18 1,103 6,18 21, Fresh Rain Sq replace pavement, , Wild Iris Ter replace pavement 3, Sandwort Ter replace pavement 13, , , , Asphalt pavement - interim cycle 1 13,606,179 2,809 7,988 2,809 10,797 2,809 (13,606) Asphalt pavement - interim cycle 2 14,967 3,944 1,7,19 1,7 7,093 1,7 8, Asphalt pavement - interim cycle 3 17,008 2,490 1,320 3,810 1,320,129 1,320 6, Concrete curb & gutter (2%) 3, ,149 1,606 1,149 2,7 1,149 (3,904) Concrete flatwork (2%) 2, , , (2,786) 9 22 Parking bay marking SECTION 24 - SITE IMPROVEMENT Benfold Dr/Sq replace pavement 129,608 6,821 6,821 6,821 13,643 6,821 20, Cardina Alley replace pavement 4, Flattery Alley replace pavement 10,37 1,109 1, Haraden Alley replace pavement 4, Lullaby St replace pavement 3, Dreamweaver Dr replace pavement 48,186 2,36 2,36 2,36,072 2,36 7, Kindred Ter replace pavement 19,99 1,02 1,02 1,02 2,10 1,02 3, Lenox Park Ter replace pavement 9, ,428

259 Component Method Accounting Summary - Page CM9 Town Home Reserve September 30, TOWN HOM16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance Kingsdale Ter replace pavement 3,683 1,878 1,878 1,878 3,76 1,878, Rose Leigh Ter replace pavement 1, , , Sailfish Ter replace pavement 8,314 3,069 3,069 3,069 6,138 3,069 9, Mantua Sq replace pavement 32,277 1,699 1,699 1,699 3,398 1,699, Willow Bend Ter replace pavement 21,868 1,11 1,11 1,11 2,302 1,11 3, Thunder Branch Ter replace paveme 119,30 6,282 6,282 6,282 12,63 6,282 18, Asphalt pavement interim cycle 1 9,600 1,70 6,271 21,97 6,271 28,246 6,271 34, Asphalt pavement interim cycle 2 6,60 9,97,087 14,68,087 19,772,087 24, Asphalt pavement interim cycle 3 74,00 2,181 4,821 7,002 4,821 11,824 4,821 16, Concrete curb & gutter (2%) 13,36 1,909 1,909 1,909 3,819 1,909, Concrete flatwork (2%) 13,863 1,980 1,980 1,980 3,961 1,980, Parking bay marking 1, SECTION 33 - SITE IMPROVEMENT Epperson Drive replace pavement 69,076 3,636 3,636 3,636 7,271 3,636 10, Riggins Ridge Way replace pavemen 26,273 1,383 1,383 1,383 2,766 1,383 4, Safe Harbor Ter replace pavement, Fox Tracks Way replace pavement 17, , , Ashwood Moss Pl replace pavement 1,601 2,716 2,716 2,716,432 2,716 8, Adagio Ter replace pavement 7,906 3,048 3,048 3,048 6,09 3,048 9, Hillgate Ter replace pavement 18, , , Knotty Oak Ter replace pavement 12, , , Soft Breeze Ter replace pavement 7, , Hampton Woods Way replace pavem 26,400 1,389 1,389 1,389 2,779 1,389 4, Ivy Walk replace pavement, Falling Garden Way replace paveme 8, , Marble Canyon Ter replace pavemen 7, , Nantucket Fog Ter replace pavemen 16, , , Twilight Glen Alley replace paveme 11, , , Monticello Alley replace pavement 4, Asphalt pavement interim cycle 1 40,107 10,68 4,220 14,788 4,220 19,008 4,220 23, Asphalt pavement interim cycle 2 44,118 6,48 3,424 9,882 3,424 13,306 3,424 16, Asphalt pavement interim cycle 3 0,134 1,468 3,244 4,712 3,244 7,97 3,244 11, Concrete curb & gutter (2%) 11,61 1,664 1,664 1,664 3,329 1,664 4, Concrete flatwork (2%) 11,724 1,67 1,67 1,67 3,30 1,67, Parking bay marking 1, BRAMBLETON CORNER (BC) SEC 138 BC Palladian Blue Ter replace pavemen 36,912 1,943 1,943 1,943 3,886 1,943, BC Provencial Alley replace pavement 17, , , BC Epperson Dr replace pavement 2,020 1,317 1,317 1,317 2,634 1,317 3, BC Cameron Glen Alley replace pavem 8, , BC White Castle Alley replace paveme 17, , , BC Lingmont Alley replace pavement 6, , BC Ashwood Moss Ter replace paveme 12, , , BC Asphalt pavement interim cycle 1 14,468 3,812 1,22,33 1,22 6,87 1,22 8, BC Asphalt pavement interim cycle 2 1,91 2,330 1,23 3,6 1,23 4,800 1,23 6, BC Asphalt pavement interim cycle 3 18, ,170 1,700 1,170 2,870 1,170 4, BC Concrete curb & gutter (2%) 18,222 2,603 2,603 2,603,206 2,603 7, BC Concrete flatwork (2%) 22,48 3,221 3,221 3,221 6,442 3,221 9, BC Parking bay marking BELMONT TRACE (BT) SECTION - 11 BT Angela Faye Sq replace pavement 23,662 2,078 1,660 3,739 1,660,399 1,660 7,09 12 BT Connie Marie Ter replace pavemen 27,820 2,444 1,92 4,396 1,92 6,348 1,92 8, BT Dorothy Ann Ter replace pavement 7, , , , BT Franklin Benjamin Ter replace pave 24,64 2,16 1,730 3,89 1,730,62 1,730 7,3 1 BT Patrick Wayne Sq replace pavemen 39,026 3,428 2,738 6,166 2,738 8,904 2,738 11, BT Asphalt pavement interim cycle 1 14,200 6,62 7,48 (14,200) ,77 17 BT Asphalt pavement interim cycle 2 1,620,031 2,118 7,149 2,118 9,266 2,118 11, BT Asphalt pavement interim cycle 3 17,70 3,638 1,68,206 1,68 6,774 1,68 8, BT Concrete curb & gutter (2%) 3,738 1,71 1,987 (3,738) , BT Concrete flatwork (2%) 3,498 1,639 1,89 (3,498) , BT Parking bay marking (781) BRANDT SECTION (B) - SITE IMPR 162 B Amber Grove Terr replace pavement 13, , , B Tradewind Drive replace pavement 8,433,02,02,02 10,01,02 1, B Violet Mist Terr replace pavement 7, ,31 16 B Castle Ridge Way replace pavement 44,942 2,644 2,644 2,644,287 2,644 7, B Asphalt pavement interim cycle 1 17,602,669 2,387 8,0 2,387 10,442 2,387 12, B Asphalt pavement interim cycle 2 19,362 3,968 1,710,679 1,710 7,389 1,710 9,099

260 Component Method Accounting Summary - Page CM10 Town Home Reserve September 30, TOWN HOM16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance 168 B Asphalt pavement interim cycle 3 22,002 1,933 1,44 3,476 1,44,020 1,44 6, B Concrete curb & gutter (2%) 4, , , B Concrete flatwork (2%) 2, , B Parking bay marking TOWN CENTER (TC) RESIDENTIAL 172 TC Amber Run Ter replace pavement 1, , , TC Bliss Ter replace pavement 8, , , TC Bollinger Ter replace pavement 20,603 1,288 1,288 1,288 2,7 1,288 3, TC Breezy Hollow Dr replace paveme 14, , , TC Goldsborough Ter replace paveme 36,942 2,309 2,309 2,309 4,618 2,309 6, TC Peregrine Ter replace pavement 21,304 1,331 1,331 1,331 2,663 1,331 3, TC Rachels Row Ter replace pavemen 10, , , TC Rhett Dr replace pavement 19,120 1,19 1,19 1,19 2,390 1,19 3,8 180 TC Sagamore Sq replace pavement 1, , , TC Thornback Ter replace pavement 21,709 1,37 1,37 1,37 2,714 1,37 4, TC Yancy Ter replace pavement 3,36 2,210 2,210 2,210 4,420 2,210 6, TC Bollinger Ter replace pavement 12, , , TC Carlington Dr replace pavement 4,968 2,873 2,873 2,873,746 2,873 8, TC Asphalt pavement interim cycle 1 32,231 11,324,227 16,1,227 21,778,227 27, TC Asphalt pavement interim cycle 2 3,44 8,304 3,394 11,698 3,394 1,092 3,394 18, TC Asphalt pavement interim cycle 3 40,289 4,718 2,964 7,683 2,964 10,647 2,964 13, TC Concrete curb & gutter (2%) 8,998 2,249 2,249 2,249 4,499 2,249 6, TC Concrete flatwork (2%) 8,447 2,112 2,112 2,112 4,223 2,112 6, TC Parking bay marking 1, (1,188) TRENT GROVE (TG) - SITE IMPROV 191 TG Riding Reins Ter replace pavement 26,43 1,63 1,63 1,63 3,307 1,63 4, TG Boca Field Ter replace pavement 46,7 2,910 2,910 2,910,820 2,910 8, TG Christina Ridge Sq replace paveme 6,47 4,091 4,091 4,091 8,182 4,091 12, TG Christophers View Ter replace pave 9, , , TG Grahams Stable Sq replace paveme 94,70,919,919,919 11,838,919 17, TG Jessica Farm Ter replace pavement 31,238 1,92 1,92 1,92 3,90 1,92, TG Flynn Fields Ter replace pavement 8, , ,2 198 TG Biggers Farm Ter replace pavemen 9, , , TG Asphalt pavement - interim cycle 1 33,802 11,876,482 17,38,482 22,839,482 28, TG Asphalt pavement - interim cycle 2 37,182 10,886 4,383 1,269 4,383 19,62 4,383 24, TG Asphalt pavement - interim cycle 3 42,23 7,422 3,483 10,906 3,483 14,389 3,483 17, TG Concrete curb & gutter (2%) 9,066 2,267 2,267 2,267 4,33 2,267 6, TG Concrete flatwork (2%) 11,18 2,880 2,880 2,880,79 2,880 8, TG Parking bay marking 1, (1,034) 29 29

261 REPLACEMENT RESERVE REPORT - FY 2016 BRAMBLETON COMMON DRIVE RESERVE BRAMBLETON, VIRGINIA BRAMBLETON COMMUNITY ASSOCIATION REPLACEMENT RESERVE REPORT FY 2016 Property Management: Brambleton Community Association Mr. Richard Stone 4249 Ryan Road, Suite 210 Brambleton, Virginia Tel: rick.stone@brambleton.org Consultant: 929 West Street, Suite 310 Annapolis, Maryland Tel: Fax: Toll Free: July 30, 201 and revised September 20, 201

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263 Replacement Reserve Study BRAMBLETON COMMON DRIVE RESERVE BRAMBLETON, VIRGINIA Section A Replacement Reserve Analysis Executive Summary - A1 Reserve Status & Funding Plan - A1 General Information - A2 Cash Flow Method - A4 Component Method - A6 Current Association Funding - A8 Reserve Analysis - Comments - A9 Section B Replacement Reserve Inventory Replacement Reserve Inventory General Information - B1 Replacement Reserve Inventory Comments - B2 Schedule of Projected Replacements and Exclusions - B3 Section C Scope. Brambleton is a community association in Brambleton, Virginia. Construction began at Brambleton in the early 2000's and continues today. The common elements of the community are divided into four inventories, General, Common Drive, Town Home, and Recreation. This Study addresses components in the Brambleton Common Drive Reserve including:! Asphalt pavement! Concrete sidewalks! Concrete curb & gutter! Interim work on the asphalt pavement Projected Annual Replacements Projected Annual Replacements General Information - C1 Reserve Analysis & Inventory Policies, Procedure, & Administration - C1 Calendar of Projected Annual Replacements - C2 Level of Service. This study has been performed as a Level II Update, With Site Visit/On-Site Review as defined under the National Reserve Study Standards that have been adopted by the Community Associations Institute. As such, the component inventory is based on the study that was performed by our firm in August This information was adjusted to reflect changes to the inventory that were provided by the community manager, and the quantities were adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings. The condition of all commonly-owned components was ascertained from a site visit and the visual inspection of each component by the Analyst. The life expectancy and the value of components are provided based in part on these observations. The fund status and funding plan have been derived from analysis of this data. Section D Condition Assessment Section E Attachments Supplemental Photographs (included in the Brambleton General Reserve - Supplemental Photographs) Appendix

264 Purpose. The purpose of this Replacement Reserve Study is to provide Brambleton, (hereinafter called the Association), with an inventory of the common community facilities and infrastructure components that require periodic replacement, a general view of the condition of these items, and an effective financial plan to fund projected periodic replacements. Inventory of items owned by the Association. Section B - Replacement Reserve Inventory, lists the Projected Replacements, which are commonly owned items that require periodic replacement using funding from Replacement Reserves. The Replacement Reserve Inventory also provides information about Excluded Items, which are items whose replacement is not scheduled for funding from Replacement Reserves. Condition of items owned by the Association. Section B - Replacement Reserve Inventory includes our estimates of the normal economic life and the remaining economic life for the Projected Replacements, those commonly owned items whose replacement is scheduled for funding from Replacement Reserves. Section C - Calendar of Projected Annual Replacements, provides a yearby-year listing of the Projected Replacements, based upon the data in the Inventory. Several of the items owned by the Association are discussed in more detail in Section D - Condition Assessment. Financial plan. To protect the appearance, value, and safety of the property, it is essential the Association have a financial plan that provides funding for the Projected Replacements. In conformance with American Institute of Certified Public Accountant guidelines, Section A - Replacement Reserve Analysis, evaluates the current funding of Replacement Reserves as reported by the Association, and recommends annual funding of Replacement Reserves by two generally accepted accounting methods; the Cash Flow Method and the Component Method. Section A - Replacement Reserve Analysis includes graphic and tabular presentations of these methods and current Association funding. An Executive Summary of these calculations is provided on Page A1. Basis. The data contained in this Replacement Reserve Study is based upon the following: The Request for Proposal submitted and executed by the Association. The August 2011, Replacement Reserve Study, prepared by Miller - Dodson Associates. Our visual evaluation and measurements in June and July, 201. Miller - Dodson Associates has visually inspected the common elements of the property in order to ascertain the remaining useful life and the replacement costs of these components. Acknowledgment. Miller - Dodson Associates would like to acknowledge the assistance and input of Richard Stone and Shantil Moyer. Analyst's Credential. This study has been performed by Wm. Bruce Bennett. Mr. Bennett holds a Bachelors of Architecture Degree from the Georgia Institute of Technology and did his graduate studies at the Technishe Universitat Hannover, in West Germany as the 1974 World Student Fund Fellow. From 1976 to 1991, Mr. Bennett ran a design-build firm in Northern Virginia. Since 1991 he has been a Reserve Specialist (RS) for Miller Dodson Associates. Respectfully Submitted, MILLER DODSON ASSOCIATES, INC. Wm Bruce Bennett Wm. Bruce Bennett, RS, Senior Reserve Analyst

265 Brambleton Common Drive Reserve Condition Assessment - Page D1 July 30, 201 and revised September 20, 201 CONDITION ASSESSMENT General Comments. Miller Dodson Associates conducted a Reserve Study at Brambleton in June and July, 201. The property is in good condition when compared to other recent and in-progress communities. A review of the Replacement Reserve Inventories will show that we are anticipating most of the components achieving their normal economic lives. Scope. This Brambleton Common Drive Reserve - Replacement Reserve Study has been prepared in conjunction with three other Studies (General, Town Home, & Recreation) that in combination, address the common elements installed throughout the community. The Brambleton General Reserve - Replacement Reserve Study contains components that are the responsibility of the entire community and when the same components exist in the General Reserve and one of the other Reserves, we have consolidated comments in the Brambleton General Reserve - Condition Assessment. This Brambleton Common Drive Reserve - Replacement Reserve Study includes a very limited group of components that are specific to and funded by the single family home sections of the community. The only components included in the Brambleton Common Drive Reserve - Replacement Reserve Inventory are the asphalt pavement and concrete components installed within the boundaries of the single family home sections of the community. Supplemental Photographs. Supplemental photographs of the components included in the Brambleton Common Drive Reserve - Replacement Reserve Inventory have been consolidated in the Brambleton General Reserve - Supplemental Photographs. Site plans and drawings. The comments on the site plans and drawings made in the Brambleton General Reserve - Condition Assessment are appropriate to, but not duplicated in this Brambleton Common Drive Reserve - Condition Assessment. Location. In the General Reserve - Condition Assessment, we included a description and two maps detailing the systems of street names, Sections, and Sectors used to identify the common elements of the community. The same comments are appropriate to, but not duplicated in this Brambleton Common Drive Reserve - Condition Assessment. For reference, the two maps are duplicated below:

266 Brambleton Common Drive Reserve Condition Assessment - Page D2 July 30, 201 and revised September 20, 201 Asphalt pavement and concrete components. As noted above the only components included in the Brambleton Common Drive Replacement Reserve Inventory are the concrete components and approximately 4,30 square yards of asphalt pavement. Similar concrete component and asphalt pavement installations are located adjacent to the Community Center, at the three Pool/Recreation Facilities, and at the Park and Ride Lot. These components are included in the Brambleton General Reserve - Replacement Reserve Inventory and we have made detailed recommendations in the Brambleton General Reserve - Condition Assessment for the maintenance, repair, and replacement of these components. The same comments are appropriate to, but not duplicated in this Brambleton Common Drive Reserve - Condition Assessment. This Condition Assessment is based upon our visual survey of the property. The sole purpose of the visual survey was an evaluation of the common elements of the property to ascertain the remaining useful life and the replacement costs of these common elements. Our evaluation assumed that all components met building code requirements in force at the time of construction. Our visual survey was conducted with care by experienced persons, but no warranty or guarantee is expressed or implied. End of Condition Assessment

267 Replacement Reserve Analysis - Page A1 Common Drive Reserve September 20, COMMON D16 EXECUTIVE SUMMARY The Common Drive Reserve Replacement Reserve Analysis uses the Cash Flow Method (CFM) to calculate Replacement Reserve funding for the periodic replacement of the 70 Projected Replacements identified in the Replacement Reserve Inventory. $6,83 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR THE STUDY YEAR, 2016 We recommend the Association adopt a Replacement Reserve Funding Plan based on the annual funding recommendation above. Inflation adjusted funding for subsequent years is shown on Page A. Common Drive Reserve reports a Starting Balance of $480,000 and Annual Funding totaling $,248. Current funding is adequate to fund the $2,42,874 of Projected Replacements scheduled in the Replacement Reserve Inventory over the 40-year Study Period. See Page A3 for a more detailed evaluation. #1 - Cumulative Replacement Reserve Funding and Expenditures Graph $3,000,000 $2,00,000 Cash Flow Method - Cumulative Receipts Current Funding - Cumulative Receipts Projected Replacements - Cumulative Expenditures 2,689,920 2,01,664 $2,000,000 $2,42,874 $1,00,000 $1,000,000 $00,000 $ The Current Funding Objective as calculated by the Component Method (Fully Funded) is $481,608 making the reserve account 99.7% funded. See the Appendix for more information on this method.

268 Replacement Reserve Analysis - Page A2 Common Drive Reserve September 20, COMMON D16 REPLACEMENT RESERVE ANALYSIS - GENERAL INFORMATION The Common Drive Reserve Replacement Reserve Analysis calculations of recommended funding of Replacement Reserves by the Cash Flow Method and the evaluation of the Current Funding are based upon the same Study Year, Study Period, Beginning Balance, Replacement Reserve Inventory and Level of Service STUDY YEAR The Association reports that their accounting year begins on January 1, and the Study Year, the first year evaluated by the Replacement Reserve Analysis, begins on January 1, Years STUDY PERIOD The Replacement Reserve Analysis evaluates the funding of Replacement Reserves over a 40-year Study Period. $480,000 STARTING BALANCE The Association reports Replacement Reserves on Deposit totaling $480,000 at the start of the Study Year. Level Two LEVEL OF SERVICE The Replacement Reserve Inventory has been developed in compliance with the National Reserve Study Standards for a Level Two Study, as defined by the Community Associations Institute (CAI). $2,42,874 REPLACEMENT RESERVE INVENTORY - PROJECTED REPLACEMENTS The Common Drive Reserve Replacement Reserve Inventory identifies 70 items that will require periodic replacement, that are to be funded from Replacement Reserves. We estimate the cost of these replacements will be $2,42,874 over the 40-year Study Period. The Projected Replacements are divided into 12 major categories starting on Page B3. Pages B1-B2 provide detailed information on the Replacement Reserve Inventory. #2 - Annual Expenditures for Projected Replacements Graph This graph shows annual expenditures for Projected Replacements over the 40-year Study Period. The red line shows the average annual expenditure of $61,322. Section C provides a year by year Calender of these expenditures. $00,000 $44,72 $44,72 $400,000 $210,426 $300,000 $210,374 $210,426 $210,374 $210,426 $200,000 $129,444 $141,12 $141,12 $100,000 $0 $61, year Average $0 $0 $0 $3,178 $0 $0 $3,496 $0 $0 $3,973 $0 $0 $27,383 $0 $0 $3,178 $0 $0 $3,496 $0 $0 $3,973 $0 $0 $27,383 $0 $0 $3,178 $0 $

269 Replacement Reserve Analysis - Page A3 Common Drive Reserve September 20, COMMON D16 UPDATING UPDATING OF THE FUNDING PLAN The Association has a responsibility to review the Funding Plan annually. The review should include a comparison and evaluation of actual reserve funding with recommended levels shown on Page A4 and A. The Projected Replacements listed on Page C2 should be compared with any replacements accomplished and funded from Replacement Reserves. Discrepancies should be evaluated and if necessary, the Reserve Study should be updated or a new study commissioned. We recommend annual increases in replacement reserve funding to account for the impact of inflation. Inflation Adjusted Funding is discussed on Page A. UPDATING OF THE REPLACEMENT RESERVE STUDY At a minimum, the Replacement Reserve Study should be professionally updated every three to five years or after completion of a major replacement project. Updating should also be considered if during the annual review of the Funding Plan, discrepancies are noted between projected and actual reserve funding or replacement costs. Updating may also be necessary if there is a meaningful discrepancy between the actual inflation rate and the inflation rate used for the Inflation Adjusted Funding of Replacement Reserves on Page A. ANNUAL EXPENDITURES AND CURRENT FUNDING The annual expenditures that comprise the $2,42,874 of Projected Expenditures over the 40-year Study Period and the impact of the Association continuing to fund Replacement Reserves at the current level are detailed in Table 3. #3 - Table of Annual Expenditures and Current Funding Data - Years 1 through 40 Year Starting Balance $480,000 Projected Replacements ($129,444) ($210,426) ($3,178) ($44,72) ($3,496) Annual Deposit $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 End of Year Balance $40,804 $461,02 $16,300 $71,48 $416,371 $468,440 $23,688 $78,936 $179,612 $231,364 Cumulative Expenditures ($129,444) ($129,444) ($129,444) ($129,444) ($339,869) ($343,048) ($343,048) ($343,048) ($797,620) ($801,116) Cumulative Receipts $3,248 $90,496 $64,744 $700,992 $76,240 $811,488 $866,736 $921,984 $977,232 $1,032,480 Year Projected Replacements ($210,374) ($3,973) ($141,12) ($27,383) Annual Deposit $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 End of Year Balance $286,612 $341,860 $186,73 $238,010 $293,28 $348,06 $262,242 $290,107 $34,3 $400,603 Cumulative Expenditures ($801,116) ($801,116) ($1,011,489) ($1,01,462) ($1,01,462) ($1,01,462) ($1,16,974) ($1,184,37) ($1,184,37) ($1,184,37) Cumulative Receipts $1,087,728 $1,142,976 $1,198,224 $1,23,472 $1,308,720 $1,363,968 $1,419,216 $1,474,464 $1,29,712 $1,84,960 Year Projected Replacements ($210,426) ($3,178) ($44,72) ($3,496) ($210,374) ($3,973) Annual Deposit $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 End of Year Balance $24,42 $297,49 $32,743 $407,991 $8,667 $60,419 $11,667 $170,91 $1,789 $67,06 Cumulative Expenditures ($1,394,783) ($1,397,961) ($1,397,961) ($1,397,961) ($1,82,33) ($1,86,029) ($1,86,029) ($1,86,029) ($2,066,403) ($2,070,37) Cumulative Receipts $1,640,208 $1,69,46 $1,70,704 $1,80,92 $1,861,200 $1,916,448 $1,971,696 $2,026,944 $2,082,192 $2,137,440 Year Projected Replacements ($141,12) ($27,383) ($210,426) ($3,178) Annual Deposit $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 $,248 End of Year Balance $122,313 $177,61 $91,297 $119,162 $174,410 $229,68 $74,480 $126,0 $181,798 $237,046 Cumulative Expenditures ($2,070,37) ($2,070,37) ($2,211,887) ($2,239,270) ($2,239,270) ($2,239,270) ($2,449,696) ($2,42,874) ($2,42,874) ($2,42,874) Cumulative Receipts $2,192,688 $2,247,936 $2,303,184 $2,38,432 $2,413,680 $2,468,928 $2,24,176 $2,79,424 $2,634,672 $2,689,920 EVALUATION OF CURRENT FUNDING The evaluation of Current Funding (Starting Balance of $480,000 & annual funding of $,248), is done in today's dollars with no adjustments for inflation or interest earned on Replacement Reserves. The evaluation assumes Replacement Reserves will only be used for the 70 Projected Replacements identified in the Replacement Reserve Inventory and that the Association will continue Annual Funding of $,248 throughout the 40-year Study Period. Annual Funding of $,248 is approximately 97 percent of the $6,83 recommended Annual Funding calculated by the Cash Flow Method for 2016, the Study Year. Evaluation of the 70 Projected Replacements calculates an average annual expenditure over the next 40 years of $61,322. Annual funding of $,248 is 90 percent of the average annual expenditure. In summary, Current Funding as reported by the Association and outlined above provides timely and adequate funding for the $2,42,874 of Projected Replacements scheduled in the Replacement Reserve Inventory over the 40-year Study Period.

270 Replacement Reserve Analysis - Page A4 Common Drive Reserve September 20, COMMON D16 CASH FLOW METHOD FUNDING $6,83 RECOMMENDED REPLACEMENT RESERVE FUNDING FOR 2016 Recommended Replacement Reserve Funding has been calculated using the Cash Flow Method (also called the Straight Line or Threshold Method). This method calculates a constant annual funding between peaks in cumulative expenditures, while maintaining a Minimum Balance (threshold) in the Peak Years. Peak Years. The First Peak Year occurs in 2040 with Replacement Reserves on Deposit dropping to the Minimum Balance after the completion of $1,82,33 of replacements from 2016 to Recommended funding declines from $6,83 in 2040 to $3,467 in Peak Years are identified in Chart 4 and Table. Minimum Balance. The calculations assume a Minimum Balance of $48,789 in Replacement Reserves. This is approx. 10 months of average expenditures based on the $61,322, 40-year average annual expenditure. Cash Flow Method Study Period. Cash Flow Method calculates funding for $2,42,874 of expenditures over the 40-year Study Period. It does not include funding for any projects beyond 20 and in 20, the end of year balance will always be the Minimum Balance. #4 - Cash Flow Method - Graph of Cumulative Receipts and Expenditures - Years 1 through 40 $3,000,000 Cash Flow Method - Cumulative Receipts Cash Flow Method - Year End Balance Cumulative Expenditures Peak Year $2,00,000 $2,01,664 $2,000,000 $2,42,874 $1,00,000 $1,000,000 $00,000 $0 $48, # - Cash Flow Method - Table of Receipts & Expenditures - Years 1 through 40 Year Starting Balance $480,000 Projected Replacements ($129,444) ($210,426) ($3,178) ($44,72) ($3,496) Annual Deposit $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 End of Year Balance $407,409 $464,262 $21,11 $77,968 $424,39 $478,070 $34,923 $91,776 $194,06 $247,413 Cumulative Expenditures $129,444 $129,444 $129,444 $129,444 $339,869 $343,048 $343,048 $343,048 $797,620 $801,116 Cumulative Receipts $36,83 $93,706 $60,9 $707,412 $764,264 $821,117 $877,970 $934,823 $991,676 $1,048,29 Year Projected Replacements ($210,374) ($3,973) ($141,12) ($27,383) Annual Deposit $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 $6,83 End of Year Balance $304,266 $361,119 $207,98 $260,478 $317,331 $374,184 $289,26 $318,99 $37,848 $432,701 Cumulative Expenditures ($801,116) ($801,116) ($1,011,489) ($1,01,462) ($1,01,462) ($1,01,462) ($1,16,974) ($1,184,37) ($1,184,37) ($1,184,37) Cumulative Receipts $1,10,382 $1,162,23 $1,219,088 $1,27,941 $1,332,793 $1,389,646 $1,446,499 $1,03,32 $1,60,20 $1,617,08 Year st Peak nd Peak Projected Replacements ($210,426) ($3,178) ($44,72) ($3,496) ($210,374) ($3,973) Annual Deposit $6,83 $6,83 $6,83 $6,83 $6,83 $3,467 $3,467 $3,467 $3,467 $47,912 End of Year Balance $279,128 $332,803 $389,66 $446,08 $48,789 $98,761 $12,228 $20,696 $48,789 $92,728 Cumulative Expenditures ($1,394,783) ($1,397,961) ($1,397,961) ($1,397,961) ($1,82,33) ($1,86,029) ($1,86,029) ($1,86,029) ($2,066,403) ($2,070,37) Cumulative Receipts $1,673,911 $1,730,764 $1,787,617 $1,844,470 $1,901,322 $1,94,790 $2,008,27 $2,061,72 $2,11,192 $2,163,104 Year rd Peak th Peak Projected Replacements ($141,12) ($27,383) ($210,426) ($3,178) Annual Deposit $47,912 $47,912 $47,912 $47,912 $47,912 $47,912 $47,912 $3,178 ($0) End of Year Balance $140,640 $188,2 $94,92 $11,480 $163,392 $211,304 $48,789 $48,789 $48,789 $48,789 Cumulative Expenditures ($2,070,37) ($2,070,37) ($2,211,887) ($2,239,270) ($2,239,270) ($2,239,270) ($2,449,696) ($2,42,874) ($2,42,874) ($2,42,874) Cumulative Receipts $2,211,01 $2,28,927 $2,306,839 $2,34,71 $2,402,662 $2,40,74 $2,498,486 $2,01,664 $2,01,664 $2,01,664

271 Replacement Reserve Analysis - Page A Common Drive Reserve September 20, COMMON D16 INFLATION ADJUSTED FUNDING The Cash Flow Method calculations on Page A4 have been done in today's dollars with no adjustment for inflation. At Miller + Dodson, we belive that long-term inflation forecasting is effective at demonstrating the power of compounding, not at calculating appropriate funding levels for Replacement Reserves. We have developed this proprietary model to estimate the short-term impact of inflation on Replacement Reserve funding. $6, CASH FLOW METHOD RECOMMENDED FUNDING #6 - Inflation Adjusted Funding The 2016 Study Year calculations have been made using current replacement costs $80,000 (see Page B2), modified by the Analyst for any project specific conditions. $60, INFLATION ADJUSTED FUNDING A new analysis calculates 2017 funding based on three assumptions; Replacement Reserves on Deposit totaling $407,409 on January 1, All 2016 Projected Replacements listed on Page C2 accomplished at a cost to Replacement Reserves less than $129,444. Construction Cost Inflation of 4.0 percent in The $60,17 inflation adjusted funding in 2017 is a.84 percent increase over the non-inflation adjusted 2017 funding of $6,83. $70,000 $60,000 $0,000 $6,83 $6,83 $6,83 $60,17 $6,83 $63,798 $6,83 $67,76 $63, INFLATION ADJUSTED FUNDING A new analysis calculates 2018 funding based on three assumptions; Replacement Reserves on Deposit totaling $467,8 on January 1, No Expenditures from Replacement Reserves in $40,000 $30,000 Construction Cost Inflation of 4.0 percent in The $63,798 inflation adjusted funding in 2018 is a percent increase over the non-inflation adjusted 2018 funding of $6,83. $20,000 $67, INFLATION ADJUSTED FUNDING A new analysis calculates 2019 funding based on three assumptions; Replacement Reserves on Deposit totaling $31,382 on January 1, No Expenditures from Replacement Reserves in $10,000 $ Construction Cost Inflation of 4.0 percent in The $67,76 inflation adjusted funding in 2019 is a percent increase over the non-inflation adjusted funding of $6,83. Cash Flow Method Funding YEAR FIVE & BEYOND The inflation adjusted funding calculations outlined above are not intended to be a substitute for periodic evaluation of common elements by an experienced Reserve Analyst. Industry Standards, lender requirements, and many state and local statutes require a Replacement Reserve Study be professionally updated every 3 to years. INFLATION ADJUSTMENT Prior to approving a budget based upon the 2017, 2018 and 2019 inflation adjusted funding calculations above, the 4.0 percent base rate of inflation used in our calculations should be compared to rates published by the Bureau of Labor Statistics. If there is a significant discrepancy (over 1 percent), contact Miller Dodson + Associates prior to using the Inflation Adjusted Funding. INTEREST ON RESERVES The recommended funding calculations do not account for interest earned on Replacement Reserves. In 2016, based on a 1.00 percent interest rate, we estimate the Association may earn $4,437 on an average balance of $443,70, $4,37 on an average balance of $437,497 in 2017, and $4,99 on $499,483 in The Association may elect to attribute 100 percent of the earned interest to Reserves, resulting in a reduction in the 2016 minimum funding from $6,83 to $2,416 (a 7.80 percent reduction), $60,17 to $,800 in 2017 (a 7.27 percent reduction), and $63,798 to $8,803 in 2018 (a 7.83 percent reduction). Inflation Adjusted Funding

272 Replacement Reserve Analysis - Page A6 Common Drive Reserve September 20, COMMON D16 REPLACEMENT RESERVE STUDY - SUPPLEMENTAL COMMENTS The Cash Flow Method calculates the minimum annual funding necessary to prevent Replacement Reserves from dropping below the Minimum Balance. Failure to fund at least the recommended levels may result in funding not being available for the Projected Replacements listed in the Replacement Reserve Inventory. The accuracy of the Replacement Reserve Analysis is dependent upon expenditures from Replacement Reserves being made ONLY for the 70 Projected Replacements specifically listed in the Replacement Reserve Inventory. The inclusion/exclusion of items from the Replacement Reserve Inventory is discussed on Page B1. The Association reports Replacement Reserves on Deposit will total $480,000 on January 1, 2016 and monthly funding totaling $4,604. The final revision of the previous Replacement Reserve Study was dated September 9, 2011 and had a 2012 Study Year. September 20, 201. Minor revison of a Study submitted on July 30, 201.

273 Replacement Reserve Inventory - Page B1 Common Drive Reserve September 20, COMMON D16 REPLACEMENT RESERVE INVENTORY GENERAL INFORMATION Common Drive Reserve - Replacement Reserve Inventory identifies 80 items. Two types of items are identified, Projected Replacements and Excluded Items: PROJECTED REPLACEMENTS. 70 of the items are Projected Replacements and the periodic replacements of these items are scheduled for funding from Replacement Reserves. The Projected Replacements have an estimated one-time replacement cost of $97,787. Replacements totaling $2,42,874 are scheduled in the Replacement Reserve Inventory over the 40-year Study Period. Projected Replacements are the replacement of commonly-owned physical assets that require periodic replacement and whose replacement is to be funded from Replacement Reserves. EXCLUDED ITEMS. 10 of the items are Excluded Items, and expenditures for these items are NOT scheduled for funding from Replacement Reserves. The accuracy of the calculations made in the Replacement Reserve Analysis is dependent on expenditures NOT being made for Excluded Items. The Excluded Items are listed in the Replacement Reserve Inventory to identify specific items and categories of items that are not to be funded from Replacement Reserves. There are multiple categories of items that are typically excluded from funding by Replacement Reserves, including but not limited to: Tax Code. The United States Tax Code grants very favorable tax status to Replacement Reserves, conditioned on expenditures being made within certain guidelines. These guidelines typically exclude maintenance activities, minor repairs and capital improvements. Value. Items with a replacement cost of less that $1,000 and/or a normal economic life of less than 3 years are typically excluded from funding from Replacement Reserves. This exclusion should reflect Association policy on the administration of Replacement Reserves. If the Association has selected an alternative level, it will be noted in the Replacement Reserve Inventory - General Comments on Page B2. Long-lived Items. Items that when properly maintained, can be assumed to have a life equal to the property as a whole, are typically excluded from the Replacement Reserve Inventory. Unit improvements. Items owned by a single unit and where the items serve a single unit are generally assumed to be the responsibility of that unit, not the Association. Other non-common improvements. Items owned by the local government, public and private utility companies, the United States Postal Service, Master Associations, state and local highway authorities, etc., may be installed on property that is owned by the Association. These types of items are generally not the responsibility of the Association and are excluded from the Replacement Reserve Inventory. The rationale for the exclusion of an item from funding by Replacement Reserves is discussed in more detail in the 'Comments' sections of the Section B - Replacement Reserve Inventory. CATEGORIES. The 80 items included in the Common Drive Reserve Replacement Reserve Inventory are divided into 12 major categories. Each category is printed on a separate page, Pages B3 to B14. LEVEL OF SERVICE. This Replacement Reserve Inventory has been developed in compliance with the standards established for a Level Two - Update (with site visit and on-site review), as defined by the National Reserve Study Standards, established in 1998 by Community Associations Institute, which states: Level II Studies are based entirely on the component inventory from a prior study. This information is adjusted to reflect changes to the inventory that are provided by the Association, and the quantities are adjusted accordingly from field measurement and/or quantity takeoffs from to-scale drawings that are made available to us. The condition of all components is ascertained from a site visit and the visual inspection of each component by the analyst. The Remaining Economic Life and replacement cost of components are provided based in part on these observations. The fund status and Funding Plan are derived from analysis of this data.

274 Replacement Reserve Inventory - Page B2 Common Drive Reserve September 20, COMMON D16 REPLACEMENT RESERVE INVENTORY - GENERAL INFORMATION (cont'd) INVENTORY DATA. Each of the 70 Projected Replacements listed in the Replacement Reserve Inventory includes the following data: Item Number. The Item Number is assigned sequentially and is intended for identification purposes only. Item Description. We have identified each item included in the Inventory. Additional information may be included in the Comments section at the bottom of each page of the Inventory. Units. We have used standard abbreviations to identify the number of units including SF-square feet, LF-lineal feet, SY-square yard, LS-lump sum, EA-each, and PR-pair. Non-standard abbreviations are noted in the Comments section at the bottom of the page. Number of Units. The methods used to develop the quantities are discussed in "Level of Service" above. Unit Replacement Cost. We use four sources to develop the unit cost data shown in the Inventory; actual replacement cost data provided by the client, information provided by local contractors and suppliers, industry standard estimating manuals, and a cost database we have developed based upon our detailed interviews with contractors and service providers who are specialists in their respective lines of work. Normal Economic Life (Yrs). The number of years that a new and properly installed item should be expected to remain in service. Remaining Economic Life (Yrs). The estimated number of years before an item will need to be replaced. In "normal" conditions, this could be calculated by subtracting the age of the item from the Normal Economic Life of the item, but only rarely do physical assets age "normally". Some items may have longer or shorter lives depending on many factors such as environment, initial quality of the item, maintenance, etc. Total Replacement Cost. This is calculated by multiplying the Unit Replacement Cost by the Number of Units. Each of the 10 Excluded Items includes the Item Description, Units, and Number of Units. Many of the Excluded Items are listed as a 'Lump Sum' with a quantity of 1. For the Excluded Items, this indicates that all of the items identified by the 'Item Description' are excluded from funding by Replacement Reserves. REVIEW OF EXPENDITURES. This Replacement Reserve Study should be reviewed by an accounting professional representing the Association prior to implementation. PARTIAL FUNDING. Items may have been included in the Replacement Reserve Inventory at less than 100 percent of their full quantity and/or replacement cost. This is done on items that will never be replaced in their entirety, but which may require periodic replacements over an extended period of time. The assumptions that provide the basis for any partial funding are noted in the Comments section. REMAINING ECONOMIC LIFE GREATER THAN 40 YEARS. The calculations do not include funding for initial replacements beyond 40 years. These replacements are included in this Study for tracking and evaluation. They should be included for funding in future Studies, when they enter the 40-year window.

275 Replacement Reserve Inventory - Page B3 Common Drive Reserve September 20, COMMON D16 SECTIONS 1 & 7 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 1 1 Portico Pl replace pavement sy 1,124 $ $17, Lupin Alley replace pavement sy 1,97 $ $24,74 3 1&7 Asphalt pavement interim cycle 1 sy 2,721 $ $4, &7 Asphalt pavement interim cycle 2 sy 2,721 $ $,388 1&7 Asphalt pavement interim cycle 3 sy 2,721 $ none 2 $6, Concrete curb (2%) ft 19 $ none 2 $643 SECTIONS 1 & 7 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC - Replacement Costs - Subtotal $9,23 SECTIONS 1 & 7 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (common driveways & alleys). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete curb & gutter. We have scheduled concrete curb & gutter (including concrete curb only installs) replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Portico Place. This line item includes the sections of five common drives that serve more than one unit. Public records show that most of these homes were completed in & 7 = Sections 1 & 7 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Sections 1 & 7 are located in Sector CE. CE = Central East Sector = south of Ryan Rd., north of Creighton Road, and east of Belmont Ridge Road. Section 7 data was included in the September 9, 2011 Replacement Reserve Inventory. Section 1 data was first added to the Replacement Reserve Inventory with the July 201 Study.

276 Replacement Reserve Inventory - Page B4 Common Drive Reserve September 20, COMMON D16 SECTIONS 3 & 8 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC PROJECTED REPLACEMENTS AND EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 7 3 Heriot Alley replace pavement sy 1,140 $ $17, Cardina Alley replace pavement sy 608 $ $9, Olmsted Horseshoe replace pavement sy 398 $ $6, Courtland Pk Horseshoe replace pavement sy 428 $ $6, Dusky Wing Alley replace pavement sy 90 $ $14,72 8 Blue Wing Alley replace pavement ls 1 3 EXCLUDED 12 8 Augustine Pl replace pavement sy 31 $ $8, &8 Asphalt pavement interim cycle 1 sy 4,0 $ $7, &8 Asphalt pavement interim cycle 2 sy 4,0 $ $8, &8 Asphalt pavement interim cycle 3 sy 4,0 $ none 2 $9, Concrete curb (2%) ft $ none 2 $163 SECTIONS 3 & 8 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC - Replacement Costs - Subtotal $87,467 SECTIONS 3 & 8 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (common driveways & alleys). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete curb & gutter. We have scheduled concrete curb & gutter (including concrete curb only installs) replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Public records show that most of these homes were completed in & 8 = Sections 3 & 8 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Sections 3 & 8 are located in Sector C. C = Central Sector = south of Ryan Rd, north of Creighton Road, east of North Star and west of Belmont Ridge Road. Section 3 & 8 data was included in the September 9, 2011 Replacement Reserve Inventory.

277 Replacement Reserve Inventory - Page B Common Drive Reserve September 20, COMMON D16 SECTION 9 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 17 9 Bobolink Alley replace pavement sy 704 $ $10, Pipkin Alley replace pavement sy 640 $ none 2 $9, Dragonfly Alley replace pavement sy 837 $ none 2 $12, Asphalt pavement interim cycle 1 sy 2,181 $ $3, Asphalt pavement interim cycle 2 sy 2,181 $ $4, Asphalt pavement interim cycle 3 sy 2,181 $ $4, Concrete curb (2%) ft 34 $ $1,16 SECTION 9 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC - Replacement Costs - Subtotal $48,120 SECTION 9 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (common driveways & alleys). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete curb & gutter. We have scheduled concrete curb & gutter (including concrete curb only installs) replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Public records show that most of these homes were completed in = Section 9 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 9 is located in Sector CE. CE = Central East Sector = south of Ryan Rd., north of Creighton Road, and east of Belmont Ridge Road. Section 9 data was first added to the Replacement Reserve Inventory with the July 201 Study.

278 Replacement Reserve Inventory - Page B6 Common Drive Reserve September 20, COMMON D16 SECTION 10 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Sweet Andrea Dr replace pavement sy 2,663 $ $41, Angelique Dr replace pavement sy 2,777 $ $43, Arbor View Dr replace pavement sy 2,938 $ $4, Brookshade Dr replace pavement sy 2,630 $ $40, Asphalt pavement interim cycle 1 sy 11,008 $ $19, Asphalt pavement interim cycle 2 sy 11,008 $ none 2 $21, Asphalt pavement interim cycle 3 sy 11,008 $ $24, Concrete curb (2%) ft 16 $ none 2 $,290 SECTION 10 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC - Replacement Costs - Subtotal $242,292 SECTION 10 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (common driveways & alleys). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete curb & gutter. We have scheduled concrete curb & gutter (including concrete curb only installs) replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Public records show that most of these homes were completed in = Section 10 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 10 is located in Sectors C and CE. C = Central Sector = south of Ryan Rd, north of Creighton Road, east of North Star and west of Belmont Ridge Road. CE = Central East Sector = south of Ryan Rd., north of Creighton Road, and east of Belmont Ridge Road. Section 10 data was included in the September 9, 2011 Replacement Reserve Inventory.

279 Replacement Reserve Inventory - Page B7 Common Drive Reserve September 20, COMMON D16 SECTION 11 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Lois Ln replace pavement sy 3,082 $ $47, Song Sparrow Ln replace pavement sy 84 $ $13, Asphalt pavement interim cycle 1 sy 3,927 $ $7, Asphalt pavement interim cycle 2 sy 3,927 $ none 2 $7, Asphalt pavement interim cycle 3 sy 3,927 $ $8, Concrete curb (2%) ft 114 $ none 2 $3,876 SECTION 11 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC - Replacement Costs - Subtotal $88,424 SECTION 11 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (common driveways & alleys). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete curb & gutter. We have scheduled concrete curb & gutter (including concrete curb only installs) replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Public records show that most of these homes were completed in = Section 11 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 11 is located in Sector C. C = Central Sector = south of Ryan Rd, north of Creighton Road, east of North Star and west of Belmont Ridge Road. Section 11 data was included in the September 9, 2011 Replacement Reserve Inventory.

280 Replacement Reserve Inventory - Page B8 Common Drive Reserve September 20, COMMON D16 SECTION 14 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Good Hope Ln replace pavement sy 1,991 $ $30, Pecos Ln replace pavement sy 1,72 $ $26, Asphalt pavement interim cycle 1 sy 3,716 $ $6, Asphalt pavement interim cycle 2 sy 3,716 $ none 2 $7, Asphalt pavement interim cycle 3 sy 3,716 $ $8, Concrete curb (2%) ft 7 $ none 2 $2, Concrete flatwork (2%) sf 208 $ none 2 $1,876 SECTION 14 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC - Replacement Costs - Subtotal $84,417 SECTION 14 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (common driveways & alleys). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete curb & gutter. We have scheduled concrete curb & gutter (including concrete curb only installs) replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Public records show that most of these homes were completed in Added flatwork that was perviously excluded. 14 = Section 14 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 14 is located in Sector C. C = Central Sector = south of Ryan Rd, north of Creighton Road, east of North Star and west of Belmont Ridge Road. Section 14 data was included in the September 9, 2011 Replacement Reserve Inventory.

281 Replacement Reserve Inventory - Page B9 Common Drive Reserve September 20, COMMON D16 SECTION 1 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 4 1 Chris Thomas Ln replace pavement sy 4,19 $ $6, Higbee Ln replace pavement sy 2,684 $ $41, Waxsaw Alley replace pavement sy 1,030 $ $1, Asphalt pavement interim cycle 1 sy 7,909 $ $14, Asphalt pavement interim cycle 2 sy 7,909 $ none 2 $1, Asphalt pavement interim cycle 3 sy 7,909 $ $17, Concrete curb (2%) ft 102 $ none 2 $3, Concrete flatwork (2%) sf 192 $ none 2 $1,726 SECTION 1 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC - Replacement Costs - Subtotal $17,47 SECTION 1 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (common driveways & alleys). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete curb & gutter. We have scheduled concrete curb & gutter (including concrete curb only installs) replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Public records show that most of these homes were completed in Added flatwork that was previously excluded. 1 = Section 1 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 1 is located in Sectors CE and SE. SE = Central East Sector = south of Creighton Road, and east of Belmont Ridge Road. CE = Central East Sector = south of Ryan Rd., north of Creighton Road, and east of Belmont Ridge Road. Section 1 data was included in the September 9, 2011 Replacement Reserve Inventory.

282 Replacement Reserve Inventory - Page B10 Common Drive Reserve September 20, COMMON D16 SECTIONS 16&17 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) 3 17 Bronstein Ln replace pavement sy 2,736 $ $42, Muscovy Alley replace pavement sy 22 $ $3, Stalwart Alley replace pavement sy 1,32 $ $20, Tourmaline Ln replace pavement sy 1,37 $ $23, Travertine Alley replace pavement sy 963 $ $14, &17 Asphalt pavement interim cycle 1 sy 6,813 $ $12, &17 Asphalt pavement interim cycle 2 sy 6,813 $ none 2 $13, &17 Asphalt pavement interim cycle 3 sy 6,813 $ $1, &17 Concrete curb (2%) ft 108 $ none 2 $3, &17 Flatwork (2%) sf 219 $ none 2 $1,971 SECTIONS 16&17 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC - Replacement Costs - Subtotal $12,327 SECTIONS 16&17 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (common driveways & alleys). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete curb & gutter. We have scheduled concrete curb & gutter (including concrete curb only installs) replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. Public records show that most of these homes were completed in Corrected for change in Section boundaries and added previously excluded flatwork. 17 = Section 17 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 17 is located in Sector C. C = Central Sector = south of Ryan Rd, north of Creighton Road, east of North Star and west of Belmont Ridge Road. Section 17 data was included in the September 9, 2011 Replacement Reserve Inventory.

283 Replacement Reserve Inventory - Page B11 Common Drive Reserve September 20, COMMON D16 SECTION 29 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC PROJECTED REPLACEMENTS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Calderwood Dr replace pavement sy 660 $ $10, Falling Timber replace pavement sy 247 $ $3, Elm Valley replace pavement sy 280 $ $4, Linden Oaks Ln replace pavement sy 273 $ $4, Amber Meadows replace pavement sy 307 $ $4, Asphalt pavement interim cycle 1 sy 1,766 $ $3, Asphalt pavement interim cycle 2 sy 1,766 $ $3, Asphalt pavement interim cycle 3 sy 1,766 $ $3,973 SECTION 29 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC - Replacement Costs - Subtotal $38,030 SECTION 29 - SITE IMPROVEMENTS - SINGLE FAMILY SPECIFIC COMMENTS Replace pavement. These line items include the asphalt pavement (common driveways & alleys). The cost above assumes a 2 inch overlay, base repairs at less than 10% of the total area, and includes necessary pavement milling. We have assumed three "asphalt pavement interim cycle" projects between the major "replace (asphalt) pavement" projects. The scope of these projects is outlined in the Condition Assessment. Funding for replacement of the asphalt trails is included in the "General Reserves". Concrete curb & gutter. We have scheduled concrete curb & gutter (including concrete curb only installs) replacements to be accomplished in conjunction with the "asphalt pavement - replacement" and "asphalt pavement - interim cycle" projects. On 7/12/11 the Board of Directors modified the concrete component line item replacement rate from 1 percent per year to 1/2 percent per year. We have continued to use the 1/2 percent per year. We recommend the rate be adjusted to reflect actual replacement rates. NOTE: Construction was incomplete and the next Study should confirm the quantities match actual construction. We have assumed the top coat of asphalt pavement will be installed in 2017, 29 = Section 29 as shown on the "Brambleton Master Plan" with proposed re-zoning, October Section 29 is located in Sector CW. CW = Central West Sector = south of Ryan Rd., north of Creighton Road, and west of North Star Blvd. Section 29 data was first added to the Replacement Reserve Inventory with the July 201 Study.

284 Replacement Reserve Inventory - Page B12 Common Drive Reserve September 20, COMMON D16 UTILITY EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Stormwater drop inlets ls 1 3 EXCLUDED UTILITY EXCLUSIONS COMMENTS Utility Exclusions. Many improvements owned by utility companies are on property owned by the Association. We have assumed that repair, maintenance, and replacements of these components will be done at the expense of the appropriate utility company. Examples of items excluded from funding Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

285 Replacement Reserve Inventory - Page B13 Common Drive Reserve September 20, COMMON D16 MAINTENANCE AND REPAIR EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Janitorial service ls 1 3 EXCLUDED Repair services ls 1 3 EXCLUDED Capitol improvements ls 1 3 EXCLUDED MAINTENANCE AND REPAIR EXCLUSIONS COMMENTS Maintenance activities, one-time-only repairs, and capitol improvements. These activities are NOT appropriately funded from Replacement Reserves. The inclusion of such component in the Replacement Reserve Inventory could jeopardize the special tax status of ALL Replacement Reserves, exposing the Association to significant tax liabilities. We recommend that the Board of Directors discuss these exclusions and Revenue Ruling with a Certified Public Accountant. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

286 Replacement Reserve Inventory - Page B14 Common Drive Reserve September 20, COMMON D16 GOVERNMENT EXCLUSIONS EXCLUDED ITEMS UNIT NORMAL REMAINING ITEM ITEM NUMBER REPLACEMENT ECONOMIC ECONOMIC REPLACEMENT # DESCRIPTION UNIT OF UNITS COST ($) LIFE (YRS) LIFE (YRS) COST ($) Government, roadways & parking ls 1 3 EXCLUDED Government, sidewalks & curbs ls 1 3 EXCLUDED Government, lighting ls 1 3 EXCLUDED Government, stormwater mgmt. ls 1 3 EXCLUDED Government, ponds ls 1 3 EXCLUDED GOVERNMENT EXCLUSIONS COMMENTS Government Exclusions. We have assumed that some of the improvements installed on property owned by the Association will be maintained by the state, county, or local government, or other association or other responsible entity. Examples of items excluded from funding by Replacement Reserves by this standard are listed above. The list above exemplifies exclusions by the cited standard(s) and is not intended to be comprehensive.

287 Projected Annual Replacements - Page C1 Common Drive Reserve September 20, COMMON D16 PROJECTED ANNUAL REPLACEMENTS GENERAL INFORMATION CALENDAR OF ANNUAL REPLACEMENTS. The 70 Projected Replacements in the Common Drive Reserve Replacement Reserve Inventory whose replacement is scheduled to be funded from Replacement Reserves are broken down on a year-by-year basis, beginning on Page C2. REPLACEMENT RESERVE ANALYSIS AND INVENTORY POLICIES, PROCEDURES, AND ADMINISTRATION REVISIONS. Revisions will be made to the Replacement Reserve Analysis and Replacement Reserve Inventory in accordance with the written instructions of the Board of Directors. No additional charge is incurred for the first revision, if requested in writing within three months of the date of the Replacement Reserve Study. It is our policy to provide revisions in electronic (Adobe PDF) format only. TAX CODE. The United States Tax Code grants favorable tax status to a common interest development (CID) meeting certain guidelines for their Replacement Reserve. If a CID files their taxes as a 'Corporation' on Form 1120 (IRC Section 277), these guidelines typically require maintenance activities, partial replacements, minor replacements, capital improvements, and one-time only replacements to be excluded from Reserves. A CID cannot co-mingle planning for maintenance activities with capital replacement activities in the Reserves (Revenue Ruling 7-370). Funds for maintenance activities and capital replacements activities must be held in separate accounts. If a CID files taxes as an "Exempt Homeowners Association" using Form 1120H (IRC Section 28), the CID does not have to segregate these activities. However, because the CID may elect to change their method of filing from year to year within the Study Period, we advise using the more restrictive approach. We further recommend that the CID consult with their Accountant and consider creating separate and independent accounts and reserves for large maintenance items, such as painting. CONFLICT OF INTEREST. Neither Miller - Dodson Associates nor the Reserve Analyst has any prior or existing relationship with this Association which would represent a real or perceived conflict of interest. RELIANCE ON DATA PROVIDED BY THE CLIENT. Information provided by an official representative of the Association regarding financial, physical conditions, quality, or historical issues is deemed reliable. INTENT. This Replacement Reserve Study is a reflection of the information provided by the Association and the visual evaluations of the Analyst. It has been prepared for the sole use of the Association and is not for the purpose of performing an audit, quality/forensic analyses, or background checks of historical records. PREVIOUS REPLACEMENTS. Information provided to Miller - Dodson Associates regarding prior replacements is considered to be accurate and reliable. Our visual evaluation is not a project audit or quality inspection. EXPERIENCE WITH FUTURE REPLACEMENTS. The Calendar of Annual Projected Replacements, lists replacements we have projected to occur over the next thirty years, begins on Page C2. Actual experience in replacing the items may differ significantly from the cost estimates and time frames shown because of conditions beyond our control. These differences may be caused by maintenance practices, inflation, variations in pricing and market conditions, future technological developments, regulatory actions, acts of God, and luck. Some items may function normally during our visual evaluation and then fail without notice. REVIEW OF THE REPLACEMENT RESERVE STUDY. For this study to be effective, it should be reviewed by the Common Drive Reserve Board of Directors, those responsible for the management of the items included in the Replacement Reserve Inventory, and the accounting professionals employed by the Association.

288 Projected Annual Replacements - Page C2 Common Drive Reserve September 20, COMMON D16 PROJECTED REPLACEMENTS - YEARS 1 TO 6 Item STUDY YEAR $ Item YEAR 2 $ Item YEAR 3 $ 1&7 Asphalt pavement interi $6, Concrete curb (2%) $ &8 Asphalt pavement interi $9, Concrete curb (2%) $ Pipkin Alley replace pavem $9, Dragonfly Alley replace pav $12, Asphalt pavement interim $21, Concrete curb (2%) $, Asphalt pavement interim $7, Concrete curb (2%) $3, Asphalt pavement interim $7, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Asphalt pavement interim $1, Concrete curb (2%) $3, Concrete flatwork (2%) $1, &17 Asphalt pavement int $13, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 Total Scheduled Replacements $129,444 No Scheduled Replacements No Scheduled Replacements Item YEAR 4 $ Item YEAR $ Item YEAR 6 $ 1 1 Portico Pl replace paveme $17, Asphalt pavement interim $3, Lupin Alley replace pavem $24, Concrete curb (2%) $ Heriot Alley replace pavem $17, Cardina Alley replace pave $9, Olmsted Horseshoe replac $6, Courtland Pk Horseshoe re $6, Dusky Wing Alley replace p $14, Augustine Pl replace pavem $8, Concrete curb (2%) $ Asphalt pavement interim c $3, Concrete curb (2%) $1, Asphalt pavement interim $24, Concrete curb (2%) $, Asphalt pavement interim $8, Concrete curb (2%) $3, Asphalt pavement interim $8, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Asphalt pavement interim $17, Concrete curb (2%) $3, Concrete flatwork (2%) $1, &17 Asphalt pavement int $1, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 No Scheduled Replacements Total Scheduled Replacements $210,426 Total Scheduled Replacements $3,178

289 Projected Annual Replacements - Page C3 Common Drive Reserve September 20, COMMON D16 PROJECTED REPLACEMENTS - YEARS 7 TO 12 Item YEAR 7 $ Item YEAR 8 $ Item YEAR 9 $ 3 1&7 Asphalt pavement interim $4, Concrete curb (2%) $ &8 Asphalt pavement interim $7, Concrete curb (2%) $ Asphalt pavement interim c $4, Concrete curb (2%) $1, Sweet Andrea Dr replace $41, Angelique Dr replace pav $43, Arbor View Dr replace pa $4, Brookshade Dr replace pa $40, Concrete curb (2%) $, Lois Ln replace pavemen $47, Song Sparrow Ln replace $13, Concrete curb (2%) $3, Good Hope Ln replace pa $30, Pecos Ln replace paveme $26, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Chris Thomas Ln replace $6, Higbee Ln replace pavem $41, Waxsaw Alley replace pa $1, Concrete curb (2%) $3, Concrete flatwork (2%) $1, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 No Scheduled Replacements No Scheduled Replacements Total Scheduled Replacements $44,72 Item YEAR 10 $ Item YEAR 11 $ Item YEAR 12 $ Asphalt pavement interim $3,496 Total Scheduled Replacements $3,496 No Scheduled Replacements No Scheduled Replacements

290 Projected Annual Replacements - Page C4 Common Drive Reserve September 20, COMMON D16 PROJECTED REPLACEMENTS - YEARS 13 TO 18 Item YEAR 13 $ Item YEAR 14 $ Item YEAR 1 $ 4 1&7 Asphalt pavement interi $, Asphalt pavement interim $3, Concrete curb (2%) $ &8 Asphalt pavement interi $8, Concrete curb (2%) $ Asphalt pavement interim c $4, Concrete curb (2%) $1, Asphalt pavement interim $19, Concrete curb (2%) $, Asphalt pavement interim $7, Concrete curb (2%) $3, Asphalt pavement interim $6, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Asphalt pavement interim $14, Concrete curb (2%) $3, Concrete flatwork (2%) $1, Bronstein Ln replace pave $42, Muscovy Alley replace pa $3, Stalwart Alley replace pav $20, Tourmaline Ln replace pa $23, Travertine Alley replace p $14, &17 Asphalt pavement int $12, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 Total Scheduled Replacements $210,374 Total Scheduled Replacements $3,973 No Scheduled Replacements Item YEAR 16 $ Item YEAR 17 $ Item YEAR 18 $ 1&7 Asphalt pavement interi $6, Calderwood Dr replace pa $10, Concrete curb (2%) $ Falling Timber replace pa $3, &8 Asphalt pavement interi $9, Elm Valley replace pavem $4, Concrete curb (2%) $ Linden Oaks Ln replace p $4, Bobolink Alley replace pav $10, Amber Meadows replace $4, Pipkin Alley replace pavem $9, Dragonfly Alley replace pav $12, Concrete curb (2%) $1, Asphalt pavement interim $21, Concrete curb (2%) $, Asphalt pavement interim $7, Concrete curb (2%) $3, Asphalt pavement interim $7, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Asphalt pavement interim $1, Concrete curb (2%) $3, Concrete flatwork (2%) $1, &17 Asphalt pavement int $13, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 No Scheduled Replacements Total Scheduled Replacements $141,12 Total Scheduled Replacements $27,383

291 Projected Annual Replacements - Page C Common Drive Reserve September 20, COMMON D16 PROJECTED REPLACEMENTS - YEARS 19 TO 24 Item YEAR 19 $ Item YEAR 20 $ Item YEAR 21 $ 1 1 Portico Pl replace pavemen $17, Lupin Alley replace pavem $24, Concrete curb (2%) $ Heriot Alley replace pavem $17, Cardina Alley replace pave $9, Olmsted Horseshoe replac $6, Courtland Pk Horseshoe re $6, Dusky Wing Alley replace p $14, Augustine Pl replace pavem $8, Concrete curb (2%) $ Asphalt pavement interim c $3, Concrete curb (2%) $1, Asphalt pavement interim $24, Concrete curb (2%) $, Asphalt pavement interim $8, Concrete curb (2%) $3, Asphalt pavement interim $8, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Asphalt pavement interim $17, Concrete curb (2%) $3, Concrete flatwork (2%) $1, &17 Asphalt pavement inte $1, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 No Scheduled Replacements No Scheduled Replacements Total Scheduled Replacements $210,426 Item YEAR 22 $ Item YEAR 23 $ Item YEAR 24 $ Asphalt pavement interim $3,178 Total Scheduled Replacements $3,178 No Scheduled Replacements No Scheduled Replacements

292 Projected Annual Replacements - Page C6 Common Drive Reserve September 20, COMMON D16 PROJECTED REPLACEMENTS - YEARS 2 TO 30 Item YEAR 2 $ Item YEAR 26 $ Item YEAR 27 $ 3 1&7 Asphalt pavement interi $4, Asphalt pavement interim $3, Concrete curb (2%) $ &8 Asphalt pavement interi $7, Concrete curb (2%) $ Asphalt pavement interim c $4, Concrete curb (2%) $1, Sweet Andrea Dr replace $41, Angelique Dr replace pav $43, Arbor View Dr replace pa $4, Brookshade Dr replace pa $40, Concrete curb (2%) $, Lois Ln replace pavemen $47, Song Sparrow Ln replace $13, Concrete curb (2%) $3, Good Hope Ln replace pa $30, Pecos Ln replace paveme $26, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Chris Thomas Ln replace $6, Higbee Ln replace pavem $41, Waxsaw Alley replace pa $1, Concrete curb (2%) $3, Concrete flatwork (2%) $1, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 Total Scheduled Replacements $44,72 Total Scheduled Replacements $3,496 No Scheduled Replacements Item YEAR 28 $ Item YEAR 29 $ Item YEAR 30 $ 4 1&7 Asphalt pavement interi $, Asphalt pavement interim $3, Concrete curb (2%) $ &8 Asphalt pavement interi $8, Concrete curb (2%) $ Asphalt pavement interim c $4, Concrete curb (2%) $1, Asphalt pavement interim $19, Concrete curb (2%) $, Asphalt pavement interim $7, Concrete curb (2%) $3, Asphalt pavement interim $6, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Asphalt pavement interim $14, Concrete curb (2%) $3, Concrete flatwork (2%) $1, Bronstein Ln replace pave $42, Muscovy Alley replace pa $3, Stalwart Alley replace pav $20, Tourmaline Ln replace pa $23, Travertine Alley replace p $14, &17 Asphalt pavement int $12, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 No Scheduled Replacements Total Scheduled Replacements $210,374 Total Scheduled Replacements $3,973

293 Projected Annual Replacements - Page C7 Common Drive Reserve September 20, COMMON D16 PROJECTED REPLACEMENTS - YEARS 31 TO 36 Item YEAR 31 $ Item YEAR 32 $ Item YEAR 33 $ 1&7 Asphalt pavement interim $6, Concrete curb (2%) $ &8 Asphalt pavement interim $9, Concrete curb (2%) $ Bobolink Alley replace pav $10, Pipkin Alley replace pavem $9, Dragonfly Alley replace pav $12, Concrete curb (2%) $1, Asphalt pavement interim $21, Concrete curb (2%) $, Asphalt pavement interim $7, Concrete curb (2%) $3, Asphalt pavement interim $7, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Asphalt pavement interim $1, Concrete curb (2%) $3, Concrete flatwork (2%) $1, &17 Asphalt pavement inte $13, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 No Scheduled Replacements No Scheduled Replacements Total Scheduled Replacements $141,12 Item YEAR 34 $ Item YEAR 3 $ Item YEAR 36 $ Calderwood Dr replace pa $10, Falling Timber replace pa $3, Elm Valley replace pavem $4, Linden Oaks Ln replace p $4, Amber Meadows replace $4,73 Total Scheduled Replacements $27,383 No Scheduled Replacements No Scheduled Replacements

294 Projected Annual Replacements - Page C8 Common Drive Reserve September 20, COMMON D16 PROJECTED REPLACEMENTS - YEARS 37 TO 42 Item YEAR 37 $ Item YEAR 38 $ Item YEAR 39 $ 1 1 Portico Pl replace paveme $17, Asphalt pavement interim $3, Lupin Alley replace pavem $24, Concrete curb (2%) $ Heriot Alley replace pavem $17, Cardina Alley replace pave $9, Olmsted Horseshoe replac $6, Courtland Pk Horseshoe re $6, Dusky Wing Alley replace p $14, Augustine Pl replace pavem $8, Concrete curb (2%) $ Asphalt pavement interim c $3, Concrete curb (2%) $1, Asphalt pavement interim $24, Concrete curb (2%) $, Asphalt pavement interim $8, Concrete curb (2%) $3, Asphalt pavement interim $8, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Asphalt pavement interim $17, Concrete curb (2%) $3, Concrete flatwork (2%) $1, &17 Asphalt pavement int $1, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 Total Scheduled Replacements $210,426 Total Scheduled Replacements $3,178 No Scheduled Replacements Item 20 - YEAR 40 $ Item 206 (beyond Study Period) $ Item 207 (beyond Study Period) $ 3 1&7 Asphalt pavement interi $4, Asphalt pavement interim $3, Concrete curb (2%) $ &8 Asphalt pavement interi $7, Concrete curb (2%) $ Asphalt pavement interim c $4, Concrete curb (2%) $1, Sweet Andrea Dr replace $41, Angelique Dr replace pav $43, Arbor View Dr replace pa $4, Brookshade Dr replace pa $40, Concrete curb (2%) $, Lois Ln replace pavemen $47, Song Sparrow Ln replace $13, Concrete curb (2%) $3, Good Hope Ln replace pa $30, Pecos Ln replace paveme $26, Concrete curb (2%) $2, Concrete flatwork (2%) $1, Chris Thomas Ln replace $6, Higbee Ln replace pavem $41, Waxsaw Alley replace pa $1, Concrete curb (2%) $3, Concrete flatwork (2%) $1, &17 Concrete curb (2%) $3, &17 Flatwork (2%) $1,971 No Scheduled Replacements Total Scheduled Replacements $44,72 Total Scheduled Replacements $3,496

295 Cash Flow Method Accounting Summary - Page CF1 Common Drive Reserve September 20, COMMON D16 CASH FLOW METHOD ACCOUNTING SUMMARY This Common Drive Reserve - Cash Flow Method Accounting Summary is an attachment to the Common Drive Reserve - Replacement Reserve Study dated September 20, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Cash Flow Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. CASH FLOW METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 70 Projected Replacements listed in the Common Drive Reserve Replacement Reserve Inventory has been assigned to one of 9 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Cash Flow Method. THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $480,000 Beginning Balance (at the start of the Study Year) and the $170,9 of additional Replacement Reserve Funding in 2016 through 2018 (as calculated in the Replacement Reserve Analysis) to each of the 70 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and discussed below. The calculated data includes: m Identification and estimated cost of each Projected Replacement scheduled in years 2016 through m Allocation of the $480,000 Beginning Balance to the Projected Replacements by Chronological Allocation. m Allocation of the $170,9 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by Chronological Allocation. CHRONOLOGICAL ALLOCATION. Chronological Allocation assigns Replacement Reserves to Projected Replacements on a "first come, first serve" basis in keeping with the basic philosophy of the Cash Flow Method. The Chronological Allocation methodology is outlined below. m The first step is the allocation of the $480,000 Beginning Balance to the Projected Replacements in the Study Year. Remaining unallocated funds are next allocated to the Projected Replacements in subsequent years in chronological order until the total of Projected Replacements in the next year is greater than the unallocated funds. Projected Replacements in this year are partially funded with each replacement receiving percentage funding. The percentage of funding is calculated by dividing the unallocated funds by the total of Projected Replacements in the partially funded year. At Common Drive Reserve the Beginning Balance funds all Scheduled Replacements in the Study Year through 2023 and provides partial funding (30%) of replacements scheduled in m The next step is the allocation of the $6,83 of 2016 Cash Flow Method Reserve Funding calculated in the Replacement Reserve Analysis. These funds are first allocated to fund the partially funded Projected Replacements and then to subsequent years in chronological order as outlined above. At Common Drive Reserve the Beginning Balance and the 2016 Replacement Reserve Funding, funds replacements through 2023 and partial funds (42.6%) replacements in m Allocations of the 2017 and 2018 Reserve Funding are done using the same methodology. m The Three-Year Replacement Funding Report details component by component allocations made by Chronological Allocation.

296 Cash Flow Method Accounting Summary - Page CF2 Common Drive Reserve September 20, COMMON D CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 70 Projected Replacements included in the Common Drive Reserve Replacement Reserve Inventory has been assigned to one of the 9 categories listed in TABLE CF1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $480,000 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $36,83 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $129,444. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 1 & 7 - SITE IMPROVEMENTS - S 4 to 16 years 0 to 12 years $9,23 $1,260 $693 ($6,766) $4,187 SECTIONS 3 & 8 - SITE IMPROVEMENTS - S 4 to 16 years 0 to 12 years $87,467 $74,1 $933 ($9,287) $66,197 SECTION 9 - SITE IMPROVEMENTS - SINGL 4 to 16 years 0 to 16 years $48,120 $29,631 $68 ($22,899) $7,417 SECTION 10 - SITE IMPROVEMENTS - SING 4 to 16 years 0 to 12 years $242,292 $110,142 $22,001 ($27,086) $10,08 SECTION 11 - SITE IMPROVEMENTS - SING 4 to 16 years 0 to 12 years $88,424 $43,869 $8,098 ($11,61) $40,31 SECTION 14 - SITE IMPROVEMENTS - SING 4 to 16 years 0 to 12 years $84,417 $43,223 $7,7 ($11,769) $39,210 SECTION 1 - SITE IMPROVEMENTS - SING 4 to 16 years 0 to 12 years $17,47 $82,341 $1,982 ($20,84) $77,469 SECTIONS 16&17 - SITE IMPROVEMENTS - 4 to 16 years 0 to 12 years $12,327 $41,804 $706 ($19,132) $23,378 SECTION 29 - SITE IMPROVEMENTS - SING 16 years to 17 years $38,030 $3,178 $3,178

297 Cash Flow Method Accounting Summary - Page CF3 Common Drive Reserve September 20, COMMON D CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 70 Projected Replacements included in the Common Drive Reserve Replacement Reserve Inventory has been assigned to one of the 9 categories listed in TABLE CF2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $407,409 on January 1, m Total reserve funding (including the Beginning Balance) of $93,706 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 1 & 7 - SITE IMPROVEMENTS - S 4 to 16 years 3 to 1 years $9,23 $4,187 $693 $4,880 SECTIONS 3 & 8 - SITE IMPROVEMENTS - S 4 to 16 years 3 to 1 years $87,467 $66,197 $933 $67,130 SECTION 9 - SITE IMPROVEMENTS - SINGL 4 to 16 years 3 to 1 years $48,120 $7,417 $68 $8,101 SECTION 10 - SITE IMPROVEMENTS - SING 4 to 16 years 3 to 1 years $242,292 $10,08 $22,001 $127,09 SECTION 11 - SITE IMPROVEMENTS - SING 4 to 16 years 3 to 1 years $88,424 $40,31 $8,098 $48,413 SECTION 14 - SITE IMPROVEMENTS - SING 4 to 16 years 3 to 1 years $84,417 $39,210 $7,7 $46,96 SECTION 1 - SITE IMPROVEMENTS - SING 4 to 16 years 3 to 1 years $17,47 $77,469 $1,982 $93,41 SECTIONS 16&17 - SITE IMPROVEMENTS - 4 to 16 years 3 to 1 years $12,327 $23,378 $706 $24,083 SECTION 29 - SITE IMPROVEMENTS - SING 16 years 4 to 16 years $38,030 $3,178 $3,178

298 Cash Flow Method Accounting Summary - Page CF4 Common Drive Reserve September 20, COMMON D CASH FLOW METHOD CATEGORY FUNDING REPORT Each of the 70 Projected Replacements included in the Common Drive Reserve Replacement Reserve Inventory has been assigned to one of the 9 categories listed in TABLE CF3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $464,262 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $60,9 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study CASH FLOW METHOD CATEGORY FUNDING - TABLE CF3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 1 & 7 - SITE IMPROVEMENTS - S 4 to 16 years 2 to 14 years $9,23 $4,880 $693 $46,74 SECTIONS 3 & 8 - SITE IMPROVEMENTS - S 4 to 16 years 2 to 14 years $87,467 $67,130 $933 $68,064 SECTION 9 - SITE IMPROVEMENTS - SINGL 4 to 16 years 2 to 14 years $48,120 $8,101 $68 $8,786 SECTION 10 - SITE IMPROVEMENTS - SING 4 to 16 years 2 to 14 years $242,292 $127,09 $22,001 $149,061 SECTION 11 - SITE IMPROVEMENTS - SING 4 to 16 years 2 to 14 years $88,424 $48,413 $8,098 $6,10 SECTION 14 - SITE IMPROVEMENTS - SING 4 to 16 years 2 to 14 years $84,417 $46,96 $7,7 $4,721 SECTION 1 - SITE IMPROVEMENTS - SING 4 to 16 years 2 to 14 years $17,47 $93,41 $1,982 $109,433 SECTIONS 16&17 - SITE IMPROVEMENTS - 4 to 16 years 2 to 14 years $12,327 $24,083 $706 $24,789 SECTION 29 - SITE IMPROVEMENTS - SING 16 years 3 to 1 years $38,030 $3,178 $3,178

299 Cash Flow Method Accounting Summary - Page CF Common Drive Reserve September 20, COMMON D16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CF4 below details the allocation of the $480,000 Beginning Balance, as reported by the Association and the $170,9 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 70 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $480,000 on January 1, m Replacement Reserves on Deposit totaling $407,409 on January 1, m Replacement Reserves on Deposit totaling $464,262 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $60,9 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $129,444. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance SECTIONS 1 & 7 - SITE IMPROVEM 1 1 Portico Pl replace pavement 17,429 17,429 17,429 17,429 17, Lupin Alley replace pavement 24,74 24,74 24,74 24,74 24,74 3 1&7 Asphalt pavement interim cycle 1 4,899 1, , , , &7 Asphalt pavement interim cycle 2,388 1&7 Asphalt pavement interim cycle 3 6,123 6,123 (6,123) 6 7 Concrete curb (2%) 643 1, (643) ,077 SECTIONS 3 & 8 - SITE IMPROVEM 7 3 Heriot Alley replace pavement 17,670 17,670 17,670 17,670 17, Cardina Alley replace pavement 9,424 9,424 9,424 9,424 9, Olmsted Horseshoe replace pavement 6,169 6,169 6,169 6,169 6, Courtland Pk Horseshoe replace pave 6,634 6,634 6,634 6,634 6, Dusky Wing Alley replace pavement 14,72 14,72 14,72 14,72 14, Augustine Pl replace pavement 8,231 8,231 8,231 8,231 8, &8 Asphalt pavement interim cycle 1 7,299 2, , , , &8 Asphalt pavement interim cycle 2 8, &8 Asphalt pavement interim cycle 3 9,124 9,124 (9,124) 16 8 Concrete curb (2%) (163) SECTION 9 - SITE IMPROVEMENTS 17 9 Bobolink Alley replace pavement 10, Pipkin Alley replace pavement 9,920 9,920 (9,920) 19 9 Dragonfly Alley replace pavement 12,979 12,979 (12,979) 20 9 Asphalt pavement interim cycle 1 3,926 3,926 3,926 3,926 3, Asphalt pavement interim cycle 2 4,319 1, , , , Asphalt pavement interim cycle 3 4, Concrete curb (2%) 1,16 1, , , ,938 SECTION 10 - SITE IMPROVEMENT Sweet Andrea Dr replace pavement 41,277 12,436,162 17,98,162 22,761,162 27, Angelique Dr replace pavement 43,044 12,968,383 18,31,383 23,73,383 29, Arbor View Dr replace pavement 4,39 13,720,696 19,41,696 2,111,696 30, Brookshade Dr replace pavement 40,76 12,282,098 17,380,098 22,478,098 27, Asphalt pavement interim cycle 1 19, Asphalt pavement interim cycle 2 21,796 21,796 (21,796) Asphalt pavement interim cycle 3 24,768 24,768 24,768 24,768 24, Concrete curb (2%),290 12, (,290) 7, , ,868 SECTION 11 - SITE IMPROVEMENT Lois Ln replace pavement 47,771 14,392,97 20,367,97 26,342,97 32, Song Sparrow Ln replace pavement 13,098 3,946 1,638,84 1,638 7,222 1,638 8,860

300 Cash Flow Method Accounting Summary - Page CF6 Common Drive Reserve September 20, COMMON D16 CASH FLOW METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CF4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance Asphalt pavement interim cycle 1 7, Asphalt pavement interim cycle 2 7,77 7,77 (7,77) Asphalt pavement interim cycle 3 8,836 8,836 8,836 8,836 8, Concrete curb (2%) 3,876 8, (3,876), , ,498 SECTION 14 - SITE IMPROVEMENT Good Hope Ln replace pavement 30,861 9,298 3,860 13,17 3,860 17,017 3,860 20, Pecos Ln replace pavement 26,738 8,0 3,344 11,399 3,344 14,743 3,344 18, Asphalt pavement interim cycle 1 6, Asphalt pavement interim cycle 2 7,38 7,38 (7,38) Asphalt pavement interim cycle 3 8,361 8,361 8,361 8,361 8, Concrete curb (2%) 2,3, (2,3) 3, , , Concrete flatwork (2%) 1,876 4, (1,876) 2, , ,146 SECTION 1 - SITE IMPROVEMENT 4 1 Chris Thomas Ln replace pavement 6,023 19,90 8,132 27,722 8,132 3,84 8,132 43, Higbee Ln replace pavement 41,602 12,34,203 17,737,203 22,940,203 28, Waxsaw Alley replace pavement 1,96 4,810 1,997 6,807 1,997 8,803 1,997 10, Asphalt pavement interim cycle 1 14, Asphalt pavement interim cycle 2 1,660 1,660 (1,660) 0 1 Asphalt pavement interim cycle 3 17,79 17,79 17,79 17,79 17, Concrete curb (2%) 3,468 7, (3,468) 4, , , Concrete flatwork (2%) 1,726 3, (1,726) 2, , ,893 SECTIONS 16&17 - SITE IMPROVEM 3 17 Bronstein Ln replace pavement 42, Muscovy Alley replace pavement 3, Stalwart Alley replace pavement 20, Tourmaline Ln replace pavement 23, Travertine Alley replace pavement 14, &17 Asphalt pavement interim cycle 12, &17 Asphalt pavement interim cycle 13,490 13,490 (13,490) 60 16&17 Asphalt pavement interim cycle 1,329 1,329 1,329 1,329 1, &17 Concrete curb (2%) 3,672 8,40 49 (3,672),238 49, , &17 Flatwork (2%) 1,971 4,3 246 (1,971) 2, , ,304 SECTION 29 - SITE IMPROVEMENT Calderwood Dr replace pavement 10, Falling Timber replace pavement 3, Elm Valley replace pavement 4, Linden Oaks Ln replace pavement 4, Amber Meadows replace pavement 4, Asphalt pavement interim cycle 1 3,178 3,178 3,178 3,178 3, Asphalt pavement interim cycle 2 3, Asphalt pavement interim cycle 3 3,973

301 Component Method - Page CM1 Common Drive Reserve September 20, COMMON D16 COMPONENT METHOD $3,422 COMPONENT METHOD RECOMMENDED ANNUAL FUNDING OF REPLACEMENT RESERVES IN THE STUDY YEAR, General. The Component Method (also referred to as the Full Funded Method) is a very conservative mathematical model developed by HUD in the early 1980s. Each of the 70 Projected Replacements listed in the Replacement Reserve Inventory is treated as a separate account. The Beginning Balance is allocated to each of the individual accounts, as is all subsequent funding of Replacement Reserves. These funds are "locked" in these individual accounts and are not available to fund other Projected Replacements. The calculation of Recommended Annual Funding of Replacement Reserves is a multi-step process outlined in more detail on Page CM2. Component Method - Cumulative Receipts and Expenditures Graph $3,000,000 Component Method - Cumulative Receipts Component Method - Year End Balance Projected Replacements - Cumulative Expenditures $2,00,000 $2,442,38 $2,070,37 $2,000,000 $1,00,000 $1,000,000 $00,000 $371,982 $

302 Component Method - Page CM2 Common Drive Reserve September 20, COMMON D16 COMPONENT METHOD (cont'd) Current Funding Objective. A Current Funding Objective is calculated for each of the Projected Replacements listed in the Replacement Reserve Inventory. Replacement Cost is divided by the Normal Economic Life to determine the nominal annual contribution. The Remaining Economic Life is then subtracted from the Normal Economic Life to calculate the number of years that the nominal annual contribution should have been made. The two values are then multiplied to determine the Current Funding Objective. This is repeated for each of the 70 Projected Replacements. The total, $481,608, is the Current Funding Objective. For an example, consider a very simple Replacement Reserve Inventory with one Projected Replacement, a fence with a $1,000 Replacement Cost, a Normal Economic Life of 10 years, and a Remaining Economic Life of 2 years. A contribution to Replacement Reserves of $100 ($1, years) should have been made in each of the previous 8 years (10 years - 2 years). The result is a Current Funding Objective of $800 (8 years x $100 per year). Funding Percentage. The Funding Percentage is calculated by dividing the Beginning Balance ($480,000) by the Current Funding Objective ($481,608). At Common Drive Reserve the Funding Percentage is 99.7% Allocation of the Beginning Balance. The Beginning Balance is divided among the 70 Projected Replacements in the Replacement Reserve Inventory. The Current Funding Objective for each Projected Replacement is multiplied by the Funding Percentage and these funds are then "locked" into the account of each item. If we relate this calculation back to our fence example, it means that the Association has not accumulated $800 in Reserves (the Funding Objective), but rather at 99.7 percent funded, there is $797 in the account for the fence. Annual Funding. The Recommended Annual Funding of Replacement Reserves is then calculated for each Projected Replacement. The funds allocated to the account of the Projected Replacement are subtracted from the Replacement Cost. The result is then divided by the number of years until replacement, and the result is the annual funding for each of the Projected Replacements. The sum of these is $3,422, the Component Method Recommended Annual Funding of Replacement Reserves in the Study Year (2016). In our fence example, the $797 in the account is subtracted from the $1,000 Total Replacement Cost and divided by the 2 years that remain before replacement, resulting in an annual deposit of $101. Next year, the deposit remains $101, but in the third year, the fence is replaced and the annual funding adjusts to $100. Adjustment to the Component Method for interest and inflation. The calculations in the Replacement Reserve Analysis do not account for interest earned on Replacement Reserves, inflation, or a constant annual increase in Annual Funding of Replacement Reserves. The Component Method is a very conservative method and if the Analysis is updated regularly, adequate funding will be maintained without the need for adjustments. Component Method Data - Years 1 through 30 Year Beginning balance $480,000 Recommended annual funding $3,422 $6,809 $6,809 $6,809 $6,809 $6,782 $6,781 $6,781 $6,781 $6,711 Interest on reserves Expenditures $129,444 $210,426 $3,178 $44,72 $3,496 Year end balance $403,978 $469,787 $3,9 $601,404 $46,786 $19,390 $8,171 $60,92 $262,160 $324,37 Cumulative Expenditures $129,444 $129,444 $129,444 $129,444 $339,869 $343,048 $343,048 $343,048 $797,620 $801,116 Cumulative Receipts $33,422 $99,230 $66,039 $730,847 $796,66 $862,438 $928,218 $993,999 $1,09,780 $1,12,491 Year Recommended annual funding $6,711 $6,711 $6,711 $6,702 $6,702 $6,702 $6,702 $6,742 $6,932 $6,932 Interest on reserves Expenditures $210,374 $3,973 $141,12 $27,383 Year end balance $390,086 $4,797 $311,134 $372,863 $438,6 $04,267 $428,47 $466,816 $32,748 $98,680 Cumulative Expenditures $801,116 $801,116 $1,011,489 $1,01,462 $1,01,462 $1,01,462 $1,16,974 $1,184,37 $1,184,37 $1,184,37 Cumulative Receipts $1,191,202 $1,26,913 $1,322,624 $1,388,32 $1,44,027 $1,19,729 $1,8,431 $1,61,173 $1,717,10 $1,783,037 Year Recommended annual funding $6,932 $6,932 $6,932 $6,932 $6,932 $6,932 $6,932 $6,932 $6,932 $6,932 Interest on reserves Expenditures $210,426 $3,178 $44,72 $3,496 $210,374 $3,973 Year end balance $44,186 $16,940 $82,872 $648,804 $260,164 $322,600 $388,32 $44,46 $310,023 $371,982 Cumulative Expenditures $1,394,783 $1,397,961 $1,397,961 $1,397,961 $1,82,33 $1,86,029 $1,86,029 $1,86,029 $2,066,403 $2,070,37 Cumulative Receipts $1,848,969 $1,914,901 $1,980,833 $2,046,76 $2,112,697 $2,178,629 $2,244,62 $2,310,494 $2,376,426 $2,442,38

303 Component Method Accounting Summary - Page CM3 Common Drive Reserve September 20, COMMON D16 COMPONENT METHOD ACCOUNTING SUMMARY This Common Drive Reserve - Component Method Accounting Summary is an attachment to the Common Drive Reserve - Replacement Reserve Study dated September 20, 201 and is for use by accounting and reserve professionals experienced in Association funding and accounting principles. This Summary consists of four reports, the 2016, 2017, and 2018 Component Method Category Funding Reports (3) and a Three-Year Replacement Funding Report. COMPONENT METHOD CATEGORY FUNDING REPORT, 2016, 2017, and Each of the 70 Projected Replacements listed in the Common Drive Reserve Replacement Reserve Inventory has been assigned to one of 9 categories. The following information is summarized by category in each report: m Normal Economic Life and Remaining Economic Life of the Projected Replacements. m Cost of all Scheduled Replacements in each category. m Replacement Reserves on Deposit allocated to the category at the beginning and end of the report period. m Cost of Projected Replacements in the report period. m Recommended Replacement Reserve Funding allocated to the category during the report period as calculated by the Component Method. m THREE-YEAR REPLACEMENT FUNDING REPORT. This report details the allocation of the $480,000 Beginning Balance (at the start of the Study Year) and the $18,039 of additional Replacement Reserve funding from 2016 to 2018 (as calculated in the Replacement Reserve Analysis) to each of the 70 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made using the Component Method as outlined in the Replacement Reserve Analysis. The calculated data includes: m Identification and estimated cost of each Projected Replacement schedule in years 2016 through m Allocation of the $480,000 Beginning Balance to the Projected Replacements by the Component Method. m Allocation of the $18,039 of additional Replacement Reserve Funding recommended in the Replacement Reserve Analysis in years 2016 through 2018, by the Component Method.

304 Component Method Accounting Summary - Page CM4 Common Drive Reserve September 20, COMMON D COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 70 Projected Replacements included in the Common Drive Reserve Replacement Reserve Inventory has been assigned to one of the 9 categories listed in TABLE CM1 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m A Beginning Balance of $480,000 as of the first day of the Study Year, January 1, m Total reserve funding (including the Beginning Balance) of $33,422 in the Study Year. m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory in 2016 being accomplished in 2016 at a cost of $129,444. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM1 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE 0 to 12 years SECTIONS 1 & 7 - SITE IMPROVEMENTS - S 4 to 16 years 0 to 12 years $9,23 $38,790 $3,322 $6,766 $3,346 SECTIONS 3 & 8 - SITE IMPROVEMENTS - S 4 to 16 years 0 to 12 years $87,467 $7,006 $4,948 $9,287 $2,667 SECTION 9 - SITE IMPROVEMENTS - SINGL 4 to 16 years 0 to 16 years $48,120 $28,313 $1,774 $22,899 $7,189 SECTION 10 - SITE IMPROVEMENTS - SING 4 to 16 years 0 to 12 years $242,292 $122,068 $13,81 $27,086 $108,63 SECTION 11 - SITE IMPROVEMENTS - SING 4 to 16 years 0 to 12 years $88,424 $4,29 $4,81 $11,61 $38,729 SECTION 14 - SITE IMPROVEMENTS - SING 4 to 16 years 0 to 12 years $84,417 $43,824 $4,93 $11,769 $36,648 SECTION 1 - SITE IMPROVEMENTS - SING 4 to 16 years 0 to 12 years $17,47 $89,092 $9,762 $20,84 $78,000 SECTIONS 16&17 - SITE IMPROVEMENTS - 4 to 16 years 0 to 12 years $12,327 $1,98 $8,401 $19,132 $40,867 SECTION 29 - SITE IMPROVEMENTS - SING 16 years to 17 years $38,030 $3,781 $2,188 $,970

305 Component Method Accounting Summary - Page CM Common Drive Reserve September 20, COMMON D COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 70 Projected Replacements included in the Common Drive Reserve Replacement Reserve Inventory has been assigned to one of the 9 categories listed in TABLE CM2 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $403,978 on January 1, m Total reserve funding (including the Beginning Balance) of $99,230 from 2016 through m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM2 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 1 & 7 - SITE IMPROVEMENTS - S 4 to 16 years 3 to 1 years $9,23 $3,346 $3,843 $39,189 SECTIONS 3 & 8 - SITE IMPROVEMENTS - S 4 to 16 years 3 to 1 years $87,467 $2,667 $,28 $8,194 SECTION 9 - SITE IMPROVEMENTS - SINGL 4 to 16 years 3 to 1 years $48,120 $7,189 $3,129 $10,318 SECTION 10 - SITE IMPROVEMENTS - SING 4 to 16 years 3 to 1 years $242,292 $108,63 $16,17 $124,738 SECTION 11 - SITE IMPROVEMENTS - SING 4 to 16 years 3 to 1 years $88,424 $38,729 $6,268 $44,996 SECTION 14 - SITE IMPROVEMENTS - SING 4 to 16 years 3 to 1 years $84,417 $36,648 $6,117 $42,76 SECTION 1 - SITE IMPROVEMENTS - SING 4 to 16 years 3 to 1 years $17,47 $78,000 $11,970 $89,970 SECTIONS 16&17 - SITE IMPROVEMENTS - 4 to 16 years 3 to 1 years $12,327 $40,867 $10,91 $1,48 SECTION 29 - SITE IMPROVEMENTS - SING 16 years 4 to 16 years $38,030 $,970 $2,188 $8,18

306 Component Method Accounting Summary - Page CM6 Common Drive Reserve September 20, COMMON D COMPONENT METHOD CATEGORY FUNDING REPORT Each of the 70 Projected Replacements included in the Common Drive Reserve Replacement Reserve Inventory has been assigned to one of the 9 categories listed in TABLE CM3 below. This calculated data is a summary of data provided in the Three-Year Replacement Funding Report and Replacement Reserve Inventory. The accuracy of this data is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $469,787 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $66,039 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates to arrange for an update of the Replacement Reserve Study COMPONENT METHOD CATEGORY FUNDING - TABLE CM3 NORMAL REMAINING ESTIMATED ECONOMIC ECONOMIC REPLACEMENT BEGINNING RESERVE PROJECTED END OF YEAR CATEGORY LIFE LIFE COST BALANCE FUNDING REPLACEMENTS BALANCE SECTIONS 1 & 7 - SITE IMPROVEMENTS - S 4 to 16 years 2 to 14 years $9,23 $39,189 $3,843 $43,032 SECTIONS 3 & 8 - SITE IMPROVEMENTS - S 4 to 16 years 2 to 14 years $87,467 $8,194 $,28 $63,722 SECTION 9 - SITE IMPROVEMENTS - SINGL 4 to 16 years 2 to 14 years $48,120 $10,318 $3,129 $13,447 SECTION 10 - SITE IMPROVEMENTS - SING 4 to 16 years 2 to 14 years $242,292 $124,738 $16,17 $140,913 SECTION 11 - SITE IMPROVEMENTS - SING 4 to 16 years 2 to 14 years $88,424 $44,996 $6,268 $1,264 SECTION 14 - SITE IMPROVEMENTS - SING 4 to 16 years 2 to 14 years $84,417 $42,76 $6,117 $48,881 SECTION 1 - SITE IMPROVEMENTS - SING 4 to 16 years 2 to 14 years $17,47 $89,970 $11,970 $101,940 SECTIONS 16&17 - SITE IMPROVEMENTS - 4 to 16 years 2 to 14 years $12,327 $1,48 $10,91 $62,049 SECTION 29 - SITE IMPROVEMENTS - SING 16 years 3 to 1 years $38,030 $8,18 $2,188 $10,346

307 Component Method Accounting Summary - Page CM7 Common Drive Reserve September 20, COMMON D16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING REPORT TABLE CM4 below details the allocation of the $480,000 Beginning Balance, as reported by the Association and the $18,039 of Replacement Reserve Funding calculated by the Cash Flow Method from 2016 to 2018, to the 70 Projected Replacements listed in the Replacement Reserve Inventory. These allocations have been made by Chronological Allocation, a method developed by Miller Dodson Associates, Inc., and outlined on Page CF1. The accuracy of the allocations is dependent upon many factors including the following critical financial data: m Replacement Reserves on Deposit totaling $480,000 on January 1, m Replacement Reserves on Deposit totaling $403,978 on January 1, m Replacement Reserves on Deposit totaling $469,787 on January 1, m Total Replacement Reserve funding (including the Beginning Balance) of $66,039 from 2016 to m No expenditures from Replacement Reserves other than those specifically listed in the Replacement Reserve Inventory. m All Projected Replacements scheduled in the Replacement Reserve Inventory from 2016 to 2018 being accomplished as scheduled in the Replacement Reserve Inventory at a cost of $129,444. If any of these critical factors are inaccurate, do not use the data and please contact Miller Dodson Associates, Inc., to arrange for an update of the Replacement Reserve Study. COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance SECTIONS 1 & 7 - SITE IMPROVEM 1 1 Portico Pl replace pavement 17,429 11,942 1,097 13,040 1,097 14,137 1,097 1, Lupin Alley replace pavement 24,74 16,961 1,8 18,20 1,8 20,078 1,8 21, &7 Asphalt pavement interim cycle 1 4,899 2, , , ,07 4 1&7 Asphalt pavement interim cycle 2,388 1, , , ,018 1&7 Asphalt pavement interim cycle 3 6,123 6, (6,123) Concrete curb (2%) (643) SECTIONS 3 & 8 - SITE IMPROVEM 7 3 Heriot Alley replace pavement 17,670 12,108 1,112 13,220 1,112 14,333 1,112 1, Cardina Alley replace pavement 9,424 6, , , , Olmsted Horseshoe replace pavement 6,169 4, ,61 388, , Courtland Pk Horseshoe replace pave 6,634 4, , , , Dusky Wing Alley replace pavement 14,72 10, , , , Augustine Pl replace pavement 8,231, , , , &8 Asphalt pavement interim cycle 1 7,299 3, , , , 14 3&8 Asphalt pavement interim cycle 2 8,029 1, , ,0 02 3, &8 Asphalt pavement interim cycle 3 9,124 9, (9,124) , Concrete curb (2%) (163) SECTION 9 - SITE IMPROVEMENTS 17 9 Bobolink Alley replace pavement 10, , , Pipkin Alley replace pavement 9,920 9, (9,920) , Dragonfly Alley replace pavement 12,979 12,93 43 (12,979) , Asphalt pavement interim cycle 1 3,926 2, , , , Asphalt pavement interim cycle 2 4,319 1, , , , Asphalt pavement interim cycle 3 4, , , , Concrete curb (2%) 1, SECTION 10 - SITE IMPROVEMENT Sweet Andrea Dr replace pavement 41,277 17,998 2,86 20,8 2,86 23,171 2,86 2, Angelique Dr replace pavement 43,044 18,769 2,697 21,466 2,697 24,163 2,697 26, Arbor View Dr replace pavement 4,39 19,87 2,84 22,710 2,84 2,64 2,84 28, Brookshade Dr replace pavement 40,76 17,77 2,4 20,330 2,4 22,884 2,4 2, Asphalt pavement interim cycle 1 19,814 3,703 1,239 4,942 1,239 6,182 1,239 7, Asphalt pavement interim cycle 2 21,796 21, (21,796) 1,362 1,362 1,362 2, Asphalt pavement interim cycle 3 24,768 16,971 1,9 18,31 1,9 20,090 1,9 21, Concrete curb (2%),290, (,290) 1,322 1,322 1,322 2,64 SECTION 11 - SITE IMPROVEMENT Lois Ln replace pavement 47,771 20,830 2,993 23,823 2,993 26,817 2,993 29, Song Sparrow Ln replace pavement 13,098, , , ,173

308 Component Method Accounting Summary - Page CM8 Common Drive Reserve September 20, COMMON D16 COMPONENT METHOD - THREE-YEAR REPLACEMENT FUNDING - TABLE CM4 cont'd Description of Estimated Allocation Item Projected Replacement of Beginning Reserve Projected End of Year Reserve Projected End of Year Reserve Projected End of Year # Replacement Costs Balance Funding Replacements Balance Funding Replacements Balance Funding Replacements Balance Asphalt pavement interim cycle 1 7,069 1, , , , Asphalt pavement interim cycle 2 7,77 7, (7,77) Asphalt pavement interim cycle 3 8,836 6,04 6 6, , , Concrete curb (2%) 3,876 3, (3,876) ,938 SECTION 14 - SITE IMPROVEMENT Good Hope Ln replace pavement 30,861 13,46 1,934 1,390 1,934 17,324 1,934 19, Pecos Ln replace pavement 26,738 11,69 1,67 13,334 1,67 1,009 1,67 16, Asphalt pavement interim cycle 1 6,689 1, , , , Asphalt pavement interim cycle 2 7,38 7,333 2 (7,38) Asphalt pavement interim cycle 3 8,361, ,2 26 6, , Concrete curb (2%) 2,3 2,27 8 (2,3) , Concrete flatwork (2%) 1,876 1,870 6 (1,876) SECTION 1 - SITE IMPROVEMENT 4 1 Chris Thomas Ln replace pavement 6,023 28,32 4,074 32,427 4,074 36,01 4,074 40, Higbee Ln replace pavement 41,602 18,140 2,607 20,747 2,607 23,34 2,607 2, Waxsaw Alley replace pavement 1,96 6,961 1,000 7,962 1,000 8,962 1,000 9, Asphalt pavement interim cycle 1 14,236 2, , , , Asphalt pavement interim cycle 2 1,660 1,608 2 (1,660) , Asphalt pavement interim cycle 3 17,79 12,193 1,120 13,314 1,120 14,434 1,120 1, 1 1 Concrete curb (2%) 3,468 3,46 12 (3,468) , Concrete flatwork (2%) 1,726 1,720 6 (1,726) SECTIONS 16&17 - SITE IMPROVEM 3 17 Bronstein Ln replace pavement 42,408 7,92 2,63 10,77 2,63 13,230 2,63 1, Muscovy Alley replace pavement 3, , , Stalwart Alley replace pavement 20,38 3,838 1,28,123 1,28 6,407 1,28 7, Tourmaline Ln replace pavement 23,824 4,42 1,490,942 1,490 7,432 1,490 8, Travertine Alley replace pavement 14,927 2, , ,67 934, &17 Asphalt pavement interim cycle 12,263 2, , , , &17 Asphalt pavement interim cycle 13,490 13,44 4 (13,490) , &17 Asphalt pavement interim cycle 1,329 10, , , , &17 Concrete curb (2%) 3,672 3, (3,672) , &17 Flatwork (2%) 1,971 1,964 7 (1,971) SECTION 29 - SITE IMPROVEMENT Calderwood Dr replace pavement 10, , , Falling Timber replace pavement 3, Elm Valley replace pavement 4, Linden Oaks Ln replace pavement 4, Amber Meadows replace pavement 4, Asphalt pavement interim cycle 1 3,178 1, , , , Asphalt pavement interim cycle 2 3,496 1, , , , Asphalt pavement interim cycle 3 3, ,240

309 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 1 July 30, 201 Photo #1. Photographs taken in July 201. Overlook East Tot Lot equipment uses ropes as a part of the structure. A mid-cycle renovation will be required. Photo #2. Markings indicate that Section 12 streetlights are the responsibility of the local power company. Photo #3. Typical small section of metal railing and concrete retaining wall. The retaining wall is assumed to have an unlimited economic life. Photo #4. Landscaped and irrigated strip between Evening Primrose and Belmont Ridge Road, typical. Photo #. Irrigation system adjacent to Evening Primrose is not in service. Photo #6. Callalily Play Area.

310 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 2 July 30, 201 Photo #7. Callalily Play Area equipment was not properly assembled. Photo #8. Typical wood pedestrian bridge located in Sector SE (see the Condition Assessment for a definition of the sectors). Photo #9. Cemetery with metal railing and stone retaining wall adjacent to Willow Bend Drive. Photo #10. Brambleton Park and Ride Lot. Photo #11. General view of the playground equipment installed in the Belmont Trace Section. Photo #12. Basketball court in the Belmont Trace Section.

311 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 3 July 30, 201 Photo #13. The square footage cost of the asphalt trails includes any necessary culvert replacements. Photo #14. Morning Walk Playground. Photo #1. We have assumed that the Association will make annual replacements of trash cans, benches, picnic tables, etc., funded from the operations budget. Photo #16. One of three pedestrian underpasses currently serving the community. At least two add underpasses are under construction and/or planned. Photo #17. Massive stone retaining walls have been assumed to have an unlimited economic life. Photo #18. Stair handrails and retaining wall railings have been consolidated into a single line item in the General Reserve.

312 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 4 July 30, 201 Photo #19. Improperly installed handrails with sockets that impound water will have a reduced economic life. Photo #20. Stair handrails and retaining wall railings have been consolidated into a single line item in the General Reserve. Multiple sections of the railing have been vandalized, Photo #21. Silt has built up in the approach to the box culverts under North Star Blvd. Photo #22. Stairs with over two risers and no handrail, a safety defect. Photo #23. General view of the recent crack sealing operations. Photo #24. Playground equipment in Section 9 is reported to be scheduled to be abandoned.

313 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page July 30, 201 Photo #2. Erosion, Section 9. Photo #26. Typical large open cracks in Section 9 asphalt pavement. Photo #27. Wood fence in the Belmont Trace Section. Photo #28. Gazebo in the Trent Grove Section. Photo #29. Playground in the Trent Grove Section. Photo #30. Coated chain at the Trent Grove Section Playground can cause accelerated deterioration and should be monitored.

314 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 6 July 30, 201 Photo #31. Typical simple but very attractive property identification signage. Note the intense landscaping which is not limited to the area immediate to the signage. Photo #32. Lawn care operations in progress, but the defective grading that is impounding water on the trail is of greater concern. Photo #33. Intersection of the trail with any dissimilar material can be a trip hazard. Photo #34. Typical exercise station. Note the exposed end grain wood will result in the equipment having a very limited economic life. Photo #3. Pedestrian bridge adjacent to North Star Blvd has a 30 foot plus unsupported span and is sagging. Photo #36. Pedestrian bridge adjacent to North Star Blvd wood supports show deterioration.

315 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 7 July 30, 201 Photo #37. Bridge railing is wood with a vinyl cladding. Photo #38. Covered bridge east of North Star Blvd. Photo #39. New pedestrian underpass is under construction. Photo #40. Damaged utility vault immediately adjacent to the sidewalk is a trip hazard, north end of Tradewinds Drive. Photo #41. Trade Wind Play Area. Photo #42. Brandt Play and Exercise Area.

316 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 8 July 30, 201 Photo #43. Recently installed equipment in the Section 24 Play Area includes ropes as part of the equipment. Note the use of the wood border. Photo #44. Small Pedestrian Bridge near the Stratford Landing Pool. Photo #4. Large pedestrian bridge near the Stratford Landing Pool. Photo #46. Pedestrian underpass and box culverts combined into a single structure near Stratford Landing Pool. Photo #47. Typical materials used in the Stratford Landing Pool are attractive and of excellent quality. Photo #48. The façade of the Stratford Landing Pool is constructed of brick and stone and should only require periodic tuckpointing.

317 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 9 July 30, 201 Photo #49. Stratford Landing Pool has the slide and other toys. Photo #0. General view of the Brambleton Corner Clubhouse and Pool. Photo #1. Finishes (interior and exterior) at of the Brambleton Corner Clubhouse and Pool are similar to those at Stratford Landing Pool. Photo #2. Facilities at of the Brambleton Corner Clubhouse and Pool include a commercial kitchen and a large meeting room. Photo #3. General view of the Beacon Crest Clubroom and Pool. Photo #4. The lack of a proper through wall flashing in the masonry cap is likely the primary cause of the water penetration that is damaging the outdoor fireplaces.

318 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 10 July 30, 201 Photo #. The lack of a proper drip cut into the bottom surface of the precast cap, is also a likely resulting in water penetration into the masonry. Photo #6. Clubroom facilities at Beacon Crest. Photo #7. Crack sealing alligatored pavement is generally considered to be ineffective. Photo #8. Defective electrical adjacent to Lantana Pond. Photo #9. The deck above the overflow structure at Lantana Pond has serious structural defects. Photo #60. Attempted repairs to the Lantana Pond deck.

319 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 11 July 30, 201 Photo #61. Water feature at the corner of Lantana and Legacy was not in operation. Photo #62. Community Center parking area. Photo #63. Defects in the pavers at the Community Center are potential trip hazards. Photo #64. Stone monuments on the front of the Community Center need tuckpointing and have been included in a general project to tuckpoint the Community Center façade. Photo #6. Masonry stoops at the Community Center also need tuckpointing. Photo #66. Community Center interior is the oldest of the four Community Center/Pool Facilities serving the community but it is in good condition considering the age.

320 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 12 July 30, 201 Photo #67. Stone balcony above the locker rooms is in poor condition. In the Condition Assessment, we discuss a different design that provides proper drainage. Photo #68. Consequential damage from the stone balcony at the Community Center. Photo #69. Dri-deck has been installed in the locker rooms above the ceramic tile. Improper installation has resulted in multiple trip hazards. Photo #70. Pump house adjacent to the small water feature at Lantana and Legacy. Photo #71. Community Center Playground. Photo #72. Community Center Playground.

321 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 13 July 30, 201 Photo #73. Northern end of the 21,300 square foot water feature north of the Community Center. Photo #74. Damaged water feature lighting. Photo #7. Stained concrete may indicate a long term leak from the plumbing at the water feature north of the Community Center. Photo #76. Typical stone pedestrian bridge. Photo #77. Typical Legacy Park Playground equipment. Photo #78. A high tech surfacing has apparently been installed over defective base asphalt at the tennis court.

322 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 14 July 30, 201 Photo #79. Wood bridge at Legacy Park is more decoration than function and could easily be replaced with a culvert (or more attractive bridge). Photo #80. General view of the Legacy Park Pond. Photo #81. Defects in the Legacy Park multipurpose court are a potential trip hazard. Photo #82. A pump house bunker serves the Legacy Park water feature. We did not have access to this facility. Note the lack of waterproofing on the structure. Photo #83. Damaged electric at the Legacy Park water feature pump house. Photo #84. Defective bridge railing at Legacy Park.

323 Miller Dodson Associates, Inc. Brambleton Supplemental Photographs - Page 1 July 30, 201 Photo #8. Legacy Park water feature. Photo #86. Stone bridge in Legacy Park. Photo #87. Legacy Park basketball court. Photo #88. Large sections of Legacy Park do not have surfacing or ground cover. Photo #89. Metal retainers around the pavers are set too high and are a potential trip hazard, Legacy Park. Photo #90. Community Center exterior light fixture.