Reserve Data Analyst

Transcription

1 Kennewick, WA Account Version Final September 19, 2017 Reserve Data Analyst Prepared By Quality Check By

2 Table of Contents Hansen Park HOA Introduc on 4 Summary Page 5 Reserve Analyst Comments 6 Site / Building Map 7 What Components Are Included? 8 The Component List 9 Excluded Components 10 Current Cost by Category Chart 11 How Much To Reserve? 12 About Percent Funded 13 Projected Percent Funded Chart 14 Projected Reserve Account Balance Chart 15 Recommended Funding - Summary 16 Recommended Funding - Projec ons 17 Baseline Funding - Summary 18 Baseline Funding - Projec ons 19 Current Funding - Summary 20 Current Funding - Projec ons 21 15% Increase Funding - Summary 22 15% Increase Funding - Projec ons 23 Special Assessment Funding - Summary 24 Special Assessment Funding - Projec on 25 Projected Expenditures Chart 26 Annual Expenditure Report 27 Fully Funded Balance Calcula on 32 Component Detail Reports 33 Spreadsheet - Component Expenditures 58 Page 2

3 Table of Contents Hansen Park HOA Calcula ons Appendix 61 Defini ons Appendix 62 Disclosures Appendix 67 Component Index 70 Page 3

4 Introduc on Thank you for utilizing the services of Reserve Data Analyst for your reserve study. We strive to create a comprehensive report that can be utilized for your budgeting needs and for future replacement schedules but above all else we place an emphasis on a high level of customer service. If there are any questions, concerns, corrections or revisions needed please do not hesitate to call or us. While this study does have some explanations of the methodology used we have kept it to a minimum for brevity. More detailed explanations of methodology & concepts are explained in our Reserve Study Guidebook which can be found at There are a couple of tips to consider that will help you both navigate this study and understand the different sections within the study: 1. To most easily navigate this study we recommend printing out the Table of Contents page at the beginning of the study and the Component Index pages at the rear of the study. This way you don t need to print out the whole study, you can have the PDF of this study open on the computer and can refer to the printed out Table of Contents and Component Index pages to scroll to or jump to pages within your PDF reader program on the computer. 2. We have created a video summary of a sample study to explain the different pages & reports within this study. You can view this video in a smaller browser window while navigating your study for an explanation of each page in the study. This can be extremely helpful and answers the majority of questions that we receive from readers of our reserve studies (with links to About Percent Funded and The Fully Funded Balance Explained). Link here: The below section summaries touch on the some of the more sought after sections of this study; these can be found on the following Table of Contents page. Summary Page - The Summary Page is a brief outline of the findings and recommendations found after the due diligence was conducted by the Reserve Analyst. A percent funded and summary of the finding models can be found on this page. The Component List - Perhaps the most important section of the study is the Component List which is the basis for the recommendations found within the study. It is important that this list is comprehensive and accurate so that the funding models are helpful and accurate in their projections. Funding Plans & Percent Funded - Following the Component List are the Funding Models, Percent Funded Calculations and Projections. These are based on the component list developed earlier and each have a different goal in mind. Annual Expenditures Report - Following the Funding Plans is the Annual Expenditure Report which shows the projected replacement schedule of the components annually for the next 30 years. Component Detail Reports - The Component Detail Report section of this study gives recommendations for each component as well as shows the specifics of the component (e.g. quantity, location, special considerations, etc.). Page 4

5 Summary Page Profile Parameters Summary Name Hansen Park HOA Location Kennewick, WA # of Units 510 Base Year / Age June, Fiscal Year Ends December, Level of Service Prepared for Fiscal Year 2018 Last On Site Inspection Date September, Allocation Increase Rate Level I Full Reserve Study (With Site-Visit) ref. Funding Model Summary Page Contingency Rate ref. Component Detail Report Page Inflation Rate 3% Interest Rate 1% Tax Rate ref. Funding Model Summary Page Funding Plan - Method Cash Flow achieve 100% funded in 30 years *Current Reserve Allocation $0 per year *Estimated FY Start Balance $35,159 Fully Funded Balance Percent Funded $468,556 (ideal amount in reserve account) --> 8% 0-30% Low 30-70% Fair % Good (Deficit) or Surplus Per Unit *Supplied by Client (-$850) per unit Recommended Funding Model per year per month avg per unit a month - Achieve 100% funded in 30 years $106,000 $8,833 $17 Baseline Funding Model - Keeps account above $0 in the 30 year timeline of this study $97,479 $8,123 $16 Current Funding Model - Current data supplied by Client $0 $0 $0 Page 5

6 Reserve Analyst Comments Reserve Analyst Comments Per the Clients interpretation of their governing documents the concrete surfaces (walkways/curbs) not located within the Association Common Area Tracts has been excluded from the measurements for the Concrete Surface - Repair component. Also per the Clients interpretation of their governing documents only the Privacy Walls that border the Association's common area tracts have been included in in the measurements for this components. Other areas that are at the perimeter of the community or between homes is reportedly the Homeowner's responsibility for any maintenance and/or repair. If at a future date the interpretation of whether to include either of the above two components where to change (e.g. inclusion of all perimeter wall or inclusion of all sidewalks/curbs in the community) there would be significant changes to all funding models and recommendations in this reserve study. Additional Funding Models Additional funding models have been included per the Client's request. The Summary and Projections for these funding models can be found by utilizing the Table of Contents for easy navigation. Loans & Special Assessments The below special assessment / loan information has been supplied by the Client and has not been independently verified. The amount and timing of them have been based on the Client's information supplied to the reserve analyst. Special Assessments None approved for fiscal year Loans None approved for fiscal year Page 6

7 Hansen Park HOA Site / Building Map Page 7

8 What Components Are Included? Included Components Reserve expenses for components are major expenses which must be budgeted for in advance in order to provide the necessary funds in time for their occurrence. Reserve expenses are reasonably predictable both in terms of frequency and cost. They are expenses that when incurred would have a significant impact on the smooth operation of the budgetary process from one year to the next if they were not reserved for in advance. A common concern when beginning this process is what components are to be included and funded for in the Reserve Study. Nationally recognized Reserve Study Standards indicates reserve components need to meet the following criteria: Excluded Common Area Components Some components may have been left out of the study or included in the component list but Unfunded and not considered in the mathematical models. These components will typically fall into one or more of the categories listed below. Below Threshold Costs - Component repair and/or replacement costs that are deemed too small to be considered reserve expenses are typically included in the operational or maintenance budget have not been funded for in this study. Operational Expenses - These occur at least annually and can be effectively budgeted for each year. They are characterized as being reasonably predictable both in terms of frequency and cost. Very Long or Unpredictable Useful Life Expectancy - Components which, when properly maintained, have a very long useful life with no predictable replacement cycle. Unit Improvements - Improvements made to the property that fall within the Governing Documents unit description summary (unit owner s responsibility). Other Non-Association/Organization Owned - Improvements installed on the property but which are owned by other parties such as governmental agencies, utility companies, the US Postal Service, etc. Page 8

9 The Component List Descrip on Date in Service Replacement Year Useful Pond Pond - Fountain Pump - Replace ea 1, ,500 Pond - Liner - Replace ,013 sf ,950 Pond - Maintenance Unfunded Pond Circula on Pump 1 HP - Replace ea 2, ,500 Pond - Total $365,950 Adjustment Remaining Units Cost Unit Cost Current Basketball Equipment - Replace each 2, ,100 Benches - Replace ea ,700 Concrete Surfaces - 3% Repair ,776 sf ,863 Fence - 4' Chain Link - Replace Unfunded Fence - Metal 4' - Paint ,025 lf ,670 Fence - Metal 4' - Replace ,025 lf ,006 Fence - Privacy Wall - 5% Replace lf ,393 Irriga on Control Panels - Replace ea 1, ,750 Irriga on Controllers - Replace ea ,250 Irriga on Piping / Landscaping - 20% Repair ,064 sf ,927 Irriga on Shutoff & Backflow Devices - Repl ea ,200 Landscaping - Tree Care ls 12, ,000 Lights - Pole - Replace ea 1, ,750 Pet Waste Sta ons - Replace each ,750 Playground Structure - Replace ls 13, ,250 Playground Surface - Replenish ,290 sf ,175 Retaining Walls - Pavers - Replace Unfunded Sign - Entry Monument - Refurbish ls 7, ,500 Storm Drains - Maintain Unfunded Trash Receptacles- Replace ea ,350 - Total $581,635 Total Asset Summary $947,585 Page 9

10 Excluded Components Unless noted otherwise the below components have been excluded from funding in this reserve study. Note that the inclusion of any of these items at a later date via a revision or update to this study will impact the funding strategies developed by the Reserve Analyst. Long Life Components The below components are long life components at this time, have no predictable useful life, predictable remaining useful life or associated costs within the timeframe of this reserve study. 1. Retaining Walls - Concrete & Pavers 2. Underground Storm water System at the Pond Not Association Responsibility The below components are the Unit Owner's responsibility per the Board's interpretation of their governing documents. 1. Asphalt Roads - City Maintained 2. Storm Sewer System at Roads - City Maintained 3. Mailbox Clusters - Owned by the United States Postal Service 4. Privacy Walls Not Bordering Common Areas - Homeowner's Responsibility - Per Client's Interpretation of their Governing Documents 5. Concrete Surfaces outside of Common Areas - Homeowner's Responsibility - Per Client's Interpretation of their Governing Documents 6. Street Lighting - City Maintained Page 10

11 Current Cost by Category Chart The above chart illustrates the current cost breakdown percentage of the Component Categories in this reserve study. Special attention should be given to those component categories which take up a bulk of the % of the current cost as these may require significant planning to adequately budget for their replacement. These large expenses may be well into the future during "Peak Year" cycles. Refer to the Cash Flow Projections and the Annual Expenditure Report for the projected timeline of expected expenditures. Page 11

12 Hansen Park HOA How Much To Reserve? There is no right or wrong answer to How Much Should We Reserve? as the reserve contributions in all the funding models in this study are based on different funding goals. Each Client has different risk tolerances and challenges in enacting whatever funding plan is most appropriate to them. This being said, any funding model that projects the reserve account balance to dip to zero, in our opinion, would not be appropriate or fiscally responsible as future emergency financing or deferred maintains are typically the outcome of any funding model that projects a deficit in the reserve account. Below are some of the more common funding models utilized: Page 12

13 About Percent Funded Percent funded is a calculation of how much is in the reserve account versus an ideal amount known as the Fully Funded Balance. The different ranges in levels of funding are explained below and video links have been provided which explain the Percent Funded and Fully Funded Balance calculations in more detail. 0-30% Low 30-70% Fair % Good % Funded - Good At this level, the reserve balance is considered to be at a good level of funding. The risk for reliance on emergency financing and deferred maintenance is minimized. While the goal is to reach and remain at the 100% funded mark the actual funding level will likely fluctuate above and below 100% due to changing component expenses in any given period of time covered in this reserve study % Funded - Fair A fairly funded reserve account is typically one on the right path to becoming fully funded but one that can also run into trouble if large expenses arise such as unexpected component failures or rapidly rising costs, specifically in years when large expenditures come to fruition. It is also important that the Client remains vigilant with their goal to reach a higher percent funded level as there is often pressure to reduce the reserve allocation rate or utilize money elsewhere as the reserve account balance grows to a level which is perceived to be large. Boards often have difficulties in continuing with the longer term goals in years of economic downturn when there is greater difficulty in continuing to allocate to the reserve account with regular annual increases to offset inflationary factors % Funded Low A low funding level often forces an Association/Organization to rely on emergency financing or to defer projects. With insufficient funds the Client may not be able to meet predictable component project expenditures. At this level of funding many Clients choose to defer component projects which results in condition deficiencies and over time will cause significant deferred maintenance issues which in turn hurt property values and the aesthetic appeal of the site/building. Note that a reserve account can often stay within a poor funding range for many years before any apparent negative impact. The reality of the financial position of the reserve account will often become apparent in "peak" expense years when one or several large expense component projects occur (e.g. roofing, asphalt, siding, windows) and it becomes apparent the reserve account is not adequate to meet these expenses. Video Link - About Percent Funded: Video Link - Fully Funded Balance Explained: Page 13

14 Projected Percent Funded Chart The chart above compares the funding models by the percentage funded, annually, over the 30 year timeframe of this reserve study at the end of each fiscal year. The Recommended Funding or Full Funding Models increase the Client's reserve account Percent Funded Level to 100% funding within the timeframe of this study. Once this 100% funded level is reached it is a good indicator that the Client is on track to meet its future obligations with minimal risk of reliance on loans/special assessments. The Baseline Funding Model has only a goal of keeping the reserve account cash positive within the timeframe of the reserve study so it will not typically reach a high level of percent funded over long periods of time within the timeframe of the study. This model carries significant risk for reliance on loans, special assessments or deferred maintenance due to components failing earlier than projected or costs increasing more rapidly than projected. The Current Funding Model is based on information provided to RDA regarding the current allocation rate to the reserve account. The provided allocation rate has then been projected out 30 years, while taking into account annual increases. Page 14

15 Projected Reserve Account Balance Chart The chart above compares the annual year end balance of the reserve account for each funding models over the 30 years covered in this reserve study. Note than even though balances cannot realistically be in the negative territory these have been shown (if applicable) as a visual for the level of deficiency. Page 15

16 Recommended Funding - Summary Report Parameters Report Date September 19, 2017 Account Number Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 We have developed a funding plan which will help steer the reserve account into a high funded range over a period of 30 years. This funding model is very realistic and helps to guide the reserve account out of the current poor/fair funding range in a relatively short period of time. This Recommended Funding Model requires the Client to allocate the recommended allocation amount into the reserve account with annual increases over the 30 years covered in this study. In the following pages you will find the recommended allocation rates to the reserve account, annual projected expenditures and the percent funded of the reserve account if following this Recommended Funding Model. This Recommended Funding Plan Takes into Account 4 Basic Principles: 1. There are adequate reserves when needed. 2. The budget should remain stable but increasing to offset inflationary factors. 3. The costs are fairly distributed over time. 4. The funding plan must allow the Client to be fiscally responsible. Recomended Funding Model Summary of Calcula ons Required Month Contribu on $8, $17.32 per unit monthly Average Net Month Interest Earned $51.80 Total Month Alloca on to Reserves $8, $17.42 per unit monthly Page 16

17 Recommended Funding - Projec ons Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded , , , , ,656 27% , ,180 1,326 8, , ,900 43% ,005, ,455 2, , ,425 58% ,035, ,829 2, , ,791 71% ,066, ,304 3,544 33, , ,471 82% ,098, ,883 4, , ,650 91% ,131, ,570 5, , , % ,165, ,367 6,147 17, , , % ,200, ,278 7,120 1,082, , % ,236, ,306 4, , , , % ,273, ,455 5,624 19, , , % ,311, ,729 6,680 1,025, , % ,351, ,131 7,774 1,184,097 1,038, % ,391, ,665 8,761 20,817 1,327,705 1,185, % ,433, ,335 5, , , , % ,476, ,145 6,962 6,232 1,074, , % ,520, ,099 8,029 22,748 1,229,466 1,114, % ,566, ,202 9,300 1,413,968 1,316, % ,613, ,458 9, ,707 1,395,875 1,314, % ,661, ,872 5, , , , % ,711, ,448 6,932 1,081,909 1,015, % ,762, ,191 8,347 1,287,447 1,234, % ,815, ,107 9,622 27,162 1,473,014 1,438, % ,870, ,200 11,139 1,693,354 1,682, % ,926, ,476 1,670 1,572, , , % ,984, ,940 3,011 29, , , % ,043, ,599 4, , , % ,104, ,457 6,280 1,008, , % ,168, ,520 7,777 32,433 1,226,459 1,223, % ,233, ,796 3, , , , % Page 17

18 Baseline Funding - Summary Report Parameters Report Date September 19, 2017 Account Number Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 The Baseline Funding Model is considered a bare minimum approach which has a goal of only keeping the reserve account balance above $0. We do not recommend following this funding model due to the higher risk of the reserve account reaching a $0 balance specifically in years when there are large expenses or due to components failing earlier than projected. Due to the starting point of being at a very low Percent Funded this model is only marginally less than the recommended Funding Model but is projected to reach just above a zero balance in the last 10 years of the study. (See Baseline Funding Projections). Baseline Threshold Funding Model Summary of Calcula ons Required Month Contribu on $8, $15.93 per unit monthly Average Net Month Interest Earned $49.10 Total Month Alloca on to Reserves $8, $16.02 per unit monthly Page 18

19 Baseline Funding - Projec ons Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded ,585 97, , , ,656 25% , ,403 1,232 8, , ,900 40% ,005, ,416 1, , ,425 54% ,035, ,518 2, , ,791 66% ,066, ,714 3,254 33, , ,471 75% ,098, ,005 4, , ,650 84% ,131, ,395 4, , ,058 92% ,165, ,887 5,637 17, , ,874 99% ,200, ,484 6, , , % ,236, ,188 4, , , , % ,273, ,004 4,870 19, , , % ,311, ,934 5, , , % ,351, ,982 6,844 1,045,139 1,038, % ,391, ,151 7,737 20,817 1,175,210 1,185,840 99% ,433, ,446 4, , , ,895 96% ,476, ,869 5,742 6, , ,942 94% ,520, ,425 6,706 22,748 1,033,471 1,114,978 93% ,566, ,118 7,870 1,202,459 1,316,377 91% ,613, ,952 7, ,707 1,168,319 1,314,918 89% ,661, ,930 3, , , ,646 79% ,711, ,058 5, ,594 1,015,398 81% ,762, ,340 6,452 1,008,385 1,234,889 82% ,815, ,780 7,600 27,162 1,175,604 1,438,659 82% ,870, ,383 8,987 1,376,974 1,682,359 82% ,926, ,155 1,572,128 3, ,095 1% ,984, , , , ,881 35% ,043, ,222 2, , ,374 52% ,104, ,529 3, , ,475 61% ,168, ,025 4,906 32, ,870 1,223,386 66% ,233, , , , ,749 22% Page 19

20 Current Funding - Summary Report Parameters Report Date September 19, 2017 Account Number Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 The Client has stated there is currently no approved reserve allocation rate in the budget. Continuing with this funding scenario will likely lead to a high risk for reliance on special assessments, loans and/or deferred maintenance. In newer communities there is often an initial period of years with very limited costs related to reserve projects. With time and additional deterioration there will be significant expenses - the purpose of the reserve study is to budget for these expense well in advance of their replacement/refurbishment date and to spread the cost fairly amongst all the homeowners over time. Note that while reserve account balance and percent funded could not realistically be in a negative territory it has been reported this way as a visual representation of the amount that the reserve account is projected to be in shortfall. Current Assessment Funding Model Summary of Calcula ons No Required Month Contribu on Average Net Month Interest Earned $18.23 Total Month Alloca on to Reserves $18.23 Page 20

21 Current Funding - Projec ons Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded , ,000 31, ,656 6% , ,081 23, ,900 4% ,005, , ,425 4% ,035, , ,791 4% ,066,515 33,400-9, , ,098,510-9, , ,131,466-9, , ,165,410 17,434-27, , ,200,372-27, , ,236, , , , ,273,474 19, , , ,311, , , ,351, ,042 1,038, ,391,560 20, ,860 1,185, ,433, ,649-1,135, , ,476,306 6,232-1,141, , ,520,595 22,748-1,164,488 1,114, ,566,213-1,164,488 1,316, ,613, ,707-1,372,195 1,314, ,661, ,784-2,075, , ,711,443-2,075,979 1,015, ,762,786-2,075,979 1,234, ,815,670 27,162-2,103,141 1,438, ,870,140-2,103,141 1,682, ,926,244 1,572,128-3,675, , ,984,032 29,680-3,704, , ,043,553-3,704, , ,104,859-3,704, , ,168,005 32,433-3,737,382 1,223, ,233, ,422-4,649, ,749 Page 21

22 15% Increase Funding - Summary Report Parameters Report Date September 19, 2017 Account Number Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 This funding model has been included per the Client's request. It assumes an annual 15% increase to the reserve account allocation rate for the first 15 years before dropping to 1% increases for the last 15 years of the reserve study so as to not significantly overfund the reserve account in the last half of the reserve study timetable. 15% for Fi een Years Funding Model Summary of Calcula ons Required Month Contribu on $2, $4.90 per unit monthly Average Net Month Interest Earned $27.73 Total Month Alloca on to Reserves $2, $4.96 per unit monthly Page 22

23 15% Increase Funding - Projec ons Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded ,585 30, ,000 61, ,656 12% ,012 34, ,081 88, ,900 16% ,005,293 39, , ,425 21% ,035,451 45,626 1, , ,791 26% ,066,515 52,470 1,198 33, , ,471 28% ,098,510 60,341 1, , ,650 34% ,131,466 69,392 2, , ,058 40% ,165,410 79,801 2,493 17, , ,874 45% ,200,372 91,771 3, , ,615 52% ,236, , , , ,050 19% ,273, ,367 1,114 19, , ,576 30% ,311, ,572 2, , ,242 41% ,351, ,508 3, ,695 1,038,354 50% ,391, ,584 4,212 20, ,673 1,185,840 58% ,433, ,271 1, , , ,895 41% ,476, ,112 3,109 6, , ,942 59% ,520, ,943 4,692 22, ,701 1,114,978 70% ,566, ,787 6,459 1,039,948 1,316,377 79% ,613, ,646 6, ,707 1,088,679 1,314,918 83% ,661, ,518 3, , , ,646 79% ,711, ,404 5, ,934 1,015,398 89% ,762, ,305 7,283 1,161,521 1,234,889 94% ,815, ,220 8,943 27,162 1,400,523 1,438,659 97% ,870, ,149 10,820 1,670,492 1,682,359 99% ,926, ,092 1,683 1,572, , , % ,984, ,051 3,327 29, , , % ,043, ,024 5, , , % ,104, ,011 7,111 1,142, , % ,168, ,014 8,815 32,433 1,387,584 1,223, % ,233, ,031 4, , , , % Page 23

24 Special Assessment Funding - Summary Report Parameters Report Date September 19, 2017 Account Number Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 This funding model has been included at the request of the Client for a model which incorporates a special assessment in 2018 of $1,000 per home ($510,000 total). The regular reserve allocation rate increases at 3% per year in this funding model. Special Assessment Funding Model Summary of Calcula ons Required Month Contribu on $2, $4.90 per unit monthly Average Net Month Interest Earned $ Total Month Alloca on to Reserves $3, $6.13 per unit monthly Page 24

25 Special Assessment Funding - Projec on Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded ,000 Special Assessment ,585 30,000 7,496 4,000 1,088, , % ,012 30,900 7,706 8,081 1,119, , % ,005,293 31,827 7,980 1,158, , % ,035,451 32,782 8,264 1,200, , % ,066,515 33,765 8,321 33,400 1,208, , % ,098,510 34,778 8,620 1,252, , % ,131,466 35,822 8,929 1,296, , % ,165,410 36,896 9,125 17,434 1,325, , % ,200,372 38,003 9,452 1,372, , % ,236,383 39,143 6, , , , % ,273,474 40,317 6,589 19, , , % ,311,679 41,527 6,923 1,011, , % ,351,029 42,773 7,268 1,061,850 1,038, % ,391,560 44,056 7,478 20,817 1,092,567 1,185,840 92% ,433,307 45,378 3, , , ,895 72% ,476,306 46,739 4,039 6, , ,942 63% ,520,595 48,141 4,241 22, ,208 1,114,978 57% ,566,213 49,585 4, ,408 1,316,377 52% ,613,199 51,073 3, , ,315 1,314,918 40% ,661,595 52, , , , ,711,443 54,183-65,681 1,015, ,762,786 55,809-9,872 1,234, ,815,670 57,483 27,162 20,449 1,438,659 1% ,870,140 59, ,026 1,682,359 5% ,926,244 60,984 1,572,128-1,431, , ,984,032 62,813 29,680-1,397, , ,043,553 64,698-1,333, , ,104,859 66,639-1,266, , ,168,005 68,638 32,433-1,230,444 1,223, ,233,045 70, ,422-2,072, ,749 Page 25

26 Projected Expenditures Chart The above chart provides a visual of the reserve account projected expenditures over the 30 years covered in this study. We suggest making a note of large expenditure years (peak years) when there will be significant projected expenditures related to one or more costly component that will require repair/replacement. These large but infrequent component expenses during peak years are typically the most difficult to budget for as they are often overlooked or ignored due to the perception that the expenses are far in the future and there will be time to budget for them at a later date. Page 26

27 Annual Expenditure Report Descrip on Expenditures Replacement Year 2018 Pond Pond - Fountain Pump - Replace 1,500 Pond Circula on Pump 1 HP - Replace 2,500 Total for 2018 $4,000 Replacement Year 2019 Fence - Metal 4' - Paint 5,840 Playground Surface - Replenish 2,241 Total for 2019 $8,081 No Replacement in 2020 No Replacement in 2021 Replacement Year 2022 Benches - Replace 3,039 Irriga on Controllers - Replace 5,909 Irriga on Shutoff & Backflow Devices - Replace 6,978 Landscaping - Tree Care 13,506 Playground Surface - Replenish 2,449 Trash Receptacles- Replace 1,519 Total for 2022 $33,400 No Replacement in 2023 No Replacement in 2024 Replacement Year 2025 Landscaping - Tree Care 14,758 Playground Surface - Replenish 2,676 Total for 2025 $17,434 Page 27

28 Annual Expenditure Report Descrip on Expenditures No Replacement in 2026 Replacement Year 2027 Basketball Equipment - Replace 2,740 Concrete Surfaces - 3% Repair 83,327 Irriga on Piping / Landscaping - 20% Repair 362,632 Lights - Pole - Replace 2,283 Pet Waste Sta ons - Replace 4,893 Playground Structure - Replace 17,288 Sign - Entry Monument - Refurbish 9,786 Total for 2027 $482,949 Replacement Year 2028 Landscaping - Tree Care 16,127 Playground Surface - Replenish 2,924 Total for 2028 $19,051 No Replacement in 2029 No Replacement in 2030 Replacement Year 2031 Landscaping - Tree Care 17,622 Playground Surface - Replenish 3,195 Total for 2031 $20,817 Replacement Year 2032 Concrete Surfaces - 3% Repair 96,598 Fence - Privacy Wall - 5% Replace 68,661 Page 28

29 Annual Expenditure Report Descrip on Expenditures Replacement Year 2032 con nued... Irriga on Piping / Landscaping - 20% Repair 420,390 Total for 2032 $585,649 Replacement Year 2033 Pond Pond - Fountain Pump - Replace 2,337 Pond Circula on Pump 1 HP - Replace 3,895 Total for 2033 $6,232 Replacement Year 2034 Landscaping - Tree Care 19,256 Playground Surface - Replenish 3,491 Total for 2034 $22,748 No Replacement in 2035 Replacement Year 2036 Fence - Metal 4' - Replace 207,707 Total for 2036 $207,707 Replacement Year 2037 Concrete Surfaces - 3% Repair 111,984 Fence - Privacy Wall - 5% Replace 79,596 Irriga on Piping / Landscaping - 20% Repair 487,347 Landscaping - Tree Care 21,042 Playground Surface - Replenish 3,815 Total for 2037 $703,784 Page 29

30 Annual Expenditure Report Descrip on Expenditures No Replacement in 2038 No Replacement in 2039 Replacement Year 2040 Landscaping - Tree Care 22,993 Playground Surface - Replenish 4,168 Total for 2040 $27,162 No Replacement in 2041 Replacement Year 2042 Pond Pond - Liner - Replace 735,770 Benches - Replace 5,489 Concrete Surfaces - 3% Repair 129,820 Fence - Privacy Wall - 5% Replace 92,274 Irriga on Control Panels - Replace 17,787 Irriga on Controllers - Replace 10,672 Irriga on Piping / Landscaping - 20% Repair 564,969 Irriga on Shutoff & Backflow Devices - Replace 12,603 Trash Receptacles- Replace 2,744 Total for 2042 $1,572,128 Replacement Year 2043 Landscaping - Tree Care 25,125 Playground Surface - Replenish 4,555 Total for 2043 $29,680 No Replacement in 2044 Page 30

31 Annual Expenditure Report Descrip on Expenditures No Replacement in 2045 Replacement Year 2046 Landscaping - Tree Care 27,455 Playground Surface - Replenish 4,977 Total for 2046 $32,433 Replacement Year 2047 Concrete Surfaces - 3% Repair 150,497 Fence - Privacy Wall - 5% Replace 106,971 Irriga on Piping / Landscaping - 20% Repair 654,953 Total for 2047 $912,422 Page 31

32 Fully Funded Balance Calcula on Descrip on Remaining Life Replacement Year Fully Funded Reserves Pond - Fountain Pump - Replace ,500 Pond Circula on Pump 1 HP - Replace ,500 Playground Surface - Replenish ,450 Fence - Metal 4' - Paint ,336 Trash Receptacles- Replace ,080 Benches - Replace ,160 Irriga on Controllers - Replace ,200 Irriga on Shutoff & Backflow Devices - Repla ,960 Landscaping - Tree Care ,600 Lights - Pole - Replace ,120 Basketball Equipment - Replace ,344 Pet Waste Sta ons - Replace ,400 Sign - Entry Monument - Refurbish ,800 Playground Structure - Replace ,480 Concrete Surfaces - 3% Repair ,872 Irriga on Piping / Landscaping - 20% Repair ,873 Fence - Privacy Wall - 5% Replace ,209 Fence - Metal 4' - Replace ,415 Irriga on Control Panels - Replace ,500 Pond - Liner - Replace ,756 Pond - Maintenance Unfunded Retaining Walls - Pavers - Replace Unfunded Fence - 4' Chain Link - Replace Unfunded Storm Drains - Maintain Unfunded Page 32

33 Component Detail Reports Pond - Fountain Pump - Replace Pond Category Pond Placed in Service June 2002 Useful Life 15 Replacement Year 2018 Remaining Life 0 1 $1, Asset Cost $1, Percent Replacement 100% Future Cost $1, Pond fountain pump reportedly in working order. We recommend budgeting for replacement at the timeframe indicated. Page 33

34 Component Detail Reports Pond - Liner - Replace Pond Category Pond Placed in Service August 2007 Useful Life 35 Replacement Year 2042 Remaining Life 24 94,013 $3.85 Asset Cost $361, Percent Replacement 100% Future Cost $735, Pond liner is assumed to be intact and not leaking. We recommend a pond assessment be conducted, by a qualified vendor, to determine the most appropriate and cost efficient method to replace liners which complying with all required government regulations. The cost estimate in this study is based on removal of the old liner and replacement with a new one of similar quality and mil. We suggest obtaining bids and replacing these liners per the pond assessment recommendations and incorporating actual costs and useful life estimates, which will depend on the mil (thickness) of the new membrane liner, into future reserve studies. Page 34

35 Component Detail Reports Pond - Maintenance Pond Category Pond Placed in Service June 2002 Useful Life 1 Replacement Year 2018 Remaining Life 0 1 $3, Asset Cost $3, Percent Replacement 100% Future Cost $3, No reported problems with the Pond system at this time. We recommend having a qualified Vendor inspect and complete maintenance annually. We strongly suggest setting up an contract with a Vendor and completing the maintenance and inspection of this system annually, paid for from the operating budget. Note that it has been our experience that communities which do no maintain pond systems on a regular cycle typically have large expenses related to these facilities which may need refurbishment at some point when they stop functioning as they were designed. There is no anticipation of large scale replacement or repair needs on site at this time so no funding is recommended. Future reserve studies can be updated to incorporate funding scenarios if there is invasive testing conducted that determines a replacement or refurbishment project is likely to be needed. Since this is assumed to be an annual expense we assume it is being paid for from the Operating Account so this component has been Unfunded in the reserve study. Page 35

36 Component Detail Reports Pond Circula on Pump 1 HP - Replace Pond Category Pond Placed in Service June 2002 Useful Life 15 Replacement Year 2018 Remaining Life 0 1 $2, Asset Cost $2, Percent Replacement 100% Future Cost $2, Circulation pump reportedly in working condition. We recommend budgeting for replacement at the timeframe indicated. Page 36

37 Component Detail Reports Basketball Equipment - Replace Category Recrea on Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 1 $2, Asset Cost $2, Percent Replacement 100% Future Cost $2, No instability at this time but nearing the end of its useful life. Inspect regularly, tighten connections, clean and treat for corrosion, repair promptly as needed from operating budget. Reserve funding recommend for replacement at time frame indicated. Page 37

38 Component Detail Reports Benches - Replace Category Components Placed in Service June 2002 Useful Life 20 Replacement Year 2022 Remaining Life 4 6 $ Asset Cost $2, Percent Replacement 100% Future Cost $3, Composite and metal benches appear to be deteriorating at a rate typical of their age. We recommend planning for replacement at the time frame indicated due to constant exposure. Clean and inspect annually - paint/stain from paid for from the the Operating budget as necessary. Page 38

39 Component Detail Reports Concrete Surfaces - 3% Repair Category Concrete Surfaces Placed in Service June 2002 Useful Life 5 Adjustment 20 Replacement Year 2027 Remaining Life 9 92,555 $23.00 Asset Cost $63, Percent Replacement 3% Future Cost $83, % Repair contingency for the concrete surfaces on site. Amount and cycle to be reviewed annually. No widespread damage or deterioration noted at time of site visit however there are a few small areas which need repair. We recommend repairing trip hazards immediately to limit liability. Square footage measurement includes only the concrete surfaces located on the common areas. Per the Associations interpretation of their governing documents, concrete walkways/surfaces that are not located within the common area tracts are the Homeowner's responsibility. Life adjustment given so this component begins to cycle after the concrete is 25 years of age. Page 39

40 Component Detail Reports Fence - 4' Chain Link - Replace Category Fencing Placed in Service June 2015 Useful Life 45 Replacement Year 2060 Remaining Life $21.00 Asset Cost $14, Percent Replacement 100% Future Cost $49, ' chain link fencing at the retaining walls appears to be deteriorating at a rate typical of its age. Sturdy component that can last for extended period of time if not damaged or abused. Clean, repair as needed from operating funds. Best to plan for eventual replacement at roughly the time frame indicated. This component is reportedly the responsibility of the city and has been Unfunded in this reserve study. It has been removed from all mathematical models. Page 40

41 Component Detail Reports Fence - Metal 4' - Paint Category Fencing Placed in Service June 2002 Useful Life 17 Replacement Year 2019 Remaining Life 1 2,025 $2.80 Asset Cost $5, Percent Replacement 100% Future Cost $5, ' metal fence paint appears to be deteriorating at a rate typical of its age; areas of fading and deterioration noted. Cost estimate includes cleaning, wire brush, primer and one coat paint. Page 41

42 Component Detail Reports Fence - Metal 4' - Replace Category Fencing Placed in Service June 2002 Useful Life 34 Replacement Year 2036 Remaining Life 18 2,025 $60.25 Asset Cost $122, Percent Replacement 100% Future Cost $207, ' metal fence appears to be deteriorating at a rate typical of its age. As routine maintenance, inspect regularly for any damage, repair as needed. Plan to replace at roughly the time frame indicated. Cost estimate includes the three gates. Fence replacement supersedes the fence paint component. Page 42

43 Component Detail Reports Fence - Privacy Wall - 5% Replace Category Fencing Placed in Service June 2002 Useful Life 5 Adjustment 25 Replacement Year 2032 Remaining Life 14 13,967 $65.00 Asset Cost $45, Percent Replacement 5% Future Cost $68, The privacy wall appears to be deteriorating at a rate typical of its age. Limited areas of mortar at blovks and columns for support will require repointing as necessary and can be paid for from the Operating account as an ongoing maintenance expense. This component is for a 5% repair of these walls which over time typically become unstable in areas due to settling, mortar deterioration, root intrusion issues and damage caused by a variety of factors. We recommend budgeting for 5% repairs to these walls beginning after 25 years of age and cycling every 5 years thereafter. If at a future date it appears these walls are deteriorating to a degree that larger scale replacement is warranted then the reserve study can be updated accordingly. No desire to seal these concrete/block surfaces so this has not been included in this reserve study. Linear foot measurement includes only the privacy walls that border Association common areas. Per the Associations interpretation of their governing documents, privacy walls that do not border common areas are the Homeowner's responsibility. Life adjustment given so this component begins to cycle after 35 years of age. Page 43

44 Component Detail Reports Irriga on Control Panels - Replace Category Landscaping Placed in Service June 2002 Useful Life 40 Replacement Year 2042 Remaining Life 24 7 $1, Asset Cost $8, Percent Replacement 100% Future Cost $17, Reported to be functioning properly with no significant repair/replacement history. We recommend budgeting for replacement at the timeframe indicated. Page 44

45 Component Detail Reports Irriga on Controllers - Replace Category Landscaping Placed in Service June 2002 Useful Life 20 Replacement Year 2022 Remaining Life 4 7 $ Asset Cost $5, Percent Replacement 100% Future Cost $5, Reported to be functioning properly with no significant repair/replacement history. We recommend budgeting for replacement at the timeframe indicated. Page 45

46 Component Detail Reports Irriga on Piping / Landscaping - 20% Repair Category Landscaping Placed in Service June 2002 Useful Life 5 Adjustment 20 Replacement Year 2027 Remaining Life 9 505,322 $2.75 Asset Cost $277, Percent Replacement 20% Future Cost $362, No reported problems at this time. As routine maintenance, inspect and test system regularly, perform any minor repairs as necessary from maintenance budget. Although the failure rate of the elements within this component are typically difficult to predict, prudent planning suggests to set aside funding, for larger scale partial refurbishing of irrigation systems (I.E. piping, valves, etc.), on a cyclical basis. This component includes costs estimate to refurbish the landscaping as well which will be torn up during the process of replacing the underground irrigation piping. Life adjustment given so component begins to cycle after 25 years of age, when piping will typically have deteriorated to a degree that larger portions of the system will begin to not function as designed as well as root intrusion issues as trees age and grow in the community. Note that this component cost is not for regular annual repairs to the system (e.g. sprinkler head repair) which are assumed to be covered under annual maintenance contracts and paid from the Operating Account. Page 46

47 Component Detail Reports Irriga on Shutoff & Backflow Devices - Replace Category Landscaping Placed in Service June 2002 Useful Life 20 Replacement Year 2022 Remaining Life 4 8 $ Asset Cost $6, Percent Replacement 100% Future Cost $6, Reported to be functioning properly with no significant repair/replacement history. We recommend budgeting for replacement at the timeframe indicated. Page 47

48 Component Detail Reports Landscaping - Tree Care Category Landscaping Placed in Service June 2002 Useful Life 3 Adjustment 17 Replacement Year 2022 Remaining Life 4 1 $12, Asset Cost $12, Percent Replacement 100% Future Cost $13, This component may be utilized for medium to large tree care projects which do not occur on a annual basis. If the Client has not already done so, we recommend consulting with a qualified arborist for a long term plan for the care and management of the trees on site; balancing aesthetics with protection of asset as well as following a plan which is most cost effective for long term budgeting of the reserve account. This component is for tree care of the larger trees in the community. These larger trees require regular trimming/thinning/root control and/or removal to prevent damage to nearby walkways, roads, structures and underground piping. The provided cost estimate is based on our estimation for the total expected cost for each tree on site and based on similar sized sites (and tree count) we have worked with in the past. It is assumed annual trimming and thinning of the trees are paid for from the Operating Account. We suggest updating future reserve studies with actual cost figures and timeframes for projects. Tree Count: Small: 153 Medium/Large: 490 As the trees in the community age and grow there will be a much greater need to budget for tree care expenses. Page 48

49 Component Detail Reports Landscaping - Tree Care con nued... It is strongly suggested the Client find a qualified Arborist to create a long term plan for tree care projects before there is significant damage to concrete walkways, privacy wall and underground sprinkler systems. It has been our experience that it's a much cheaper option for communities to be proactive towards tree care expenses rather than play a wait and see approach which typically results in larger expenses, reduced marketability and having to special assess and/or defer projects that are due. Life adjustment given so this component begins to cycle after the trees reach 20 years old. Page 49

50 Component Detail Reports Lights - Pole - Replace Category Ligh ng Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 1 $1, Asset Cost $1, Percent Replacement 100% Future Cost $2, Pole lights appear to be deteriorating at a rate typical of their age. Observed during daylight hours and assumed to be in functional operating condition. As routine maintenance, inspect, repair/change bulbs as needed. Best to plan for large scale replacement at roughly the time frame below, for cost efficiency and consistent quality/appearance. Cost estimated based on a licensed professional removing and installing new fixtures. Page 50

51 Component Detail Reports Pet Waste Sta ons - Replace Category Components Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 5 $ Asset Cost $3, Percent Replacement 100% Future Cost $4, Pet waste stations appear to be deteriorating at a rate typical of their age. Clean annually and paint as necessary from the operating budget as this is a minimal maintenance expense. Plan for replacement at the time from indicated. Page 51

52 Component Detail Reports Playground Structure - Replace Category Recrea on Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 1 $13, Asset Cost $13, Percent Replacement 100% Future Cost $17, Play structure appears to be deteriorating at a rate typical of its age. We recommend budgeting for replacement at the timeframe indicated to limit liability issues that arise from old structures that require ongoing repairs and have safety issues and before actual failure of the structure. There is a very wide range in cost figures for this type of component due to significant quality variations. The estimate in this reserve study is based on replacement with a similar quality structure. 2 - $1, = $3, , = 1, small two station play 8, = 8, Total = $13, Page 52

53 Component Detail Reports Playground Surface - Replenish Category Recrea on Placed in Service June 2016 Useful Life 3 Replacement Year 2019 Remaining Life 1 2,290 $0.95 Asset Cost $2, Percent Replacement 100% Future Cost $2, We recommend budgeting for replenishment at the time scale indicated to limit liability and safety issues. Page 53

54 Component Detail Reports Retaining Walls - Pavers - Replace Category Landscaping Placed in Service June 2002 Useful Life 50 Replacement Year 2052 Remaining Life $45.00 Asset Cost $ Percent Replacement 100% Future Cost $2, Paver retaining walls on site appear to be in generally fair and stable condition; no significant instability noted. We assume that retaining walls were designed and installed properly with adequate base and surrounding drainage. Monitor closely and if areas of instability emerge, consult with civil or geotechnical engineer for repair scope. No predictable basis for reserve funding at this time so this component has been Unfunded (removed from mathematical models) in this reserve study but included for inventory purposes only. Page 54

55 Component Detail Reports Sign - Entry Monument - Refurbish Category Signs Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 1 $7, Asset Cost $7, Percent Replacement 100% Future Cost $9, Entry monument appears to be deteriorating at a rate typical of its age and is typically a long life component. As routine maintenance, inspect regularly, clean/touch up for appearance and complete minor repairs, paid from operating budget. Reserve funding for refurbishment of this monument recommended to maintain a consistent, quality appearance. Page 55

56 Component Detail Reports Storm Drains - Maintain Category Stormwater Placed in Service June 2002 Useful Life 60 Replacement Year 2062 Remaining Life 44 1 ls Asset Cost Percent Replacement 100% Future Cost No reported problems with this system at this time. Inspect regularly, keep drains and grates free of debris and free flowing to ensure water evacuating as designed. Pump out sediments if needed utilizing mobile evacuator service; fund from operating budget annually. We recommend setting up an contract with a vendor and completing the maintenance and inspection of this system annually, paid for from the operating budget. Note that it has been our experience that communities which do no maintain storm water systems on a regular cycle typically have large expenses related to these facilities which may need refurbishment at some point when they stop functioning as they were designed. There is no anticipation of large scale replacement or repair needs on site at this time so no funding is recommended. Future reserve studies can be updated to incorporate funding scenarios if there is invasive testing conducted that determines a replacement or refurbishment project is likely to be needed. Page 56

57 Component Detail Reports Trash Receptacles- Replace Category Miscellaneous Placed in Service June 2002 Useful Life 20 Replacement Year 2022 Remaining Life 4 3 $ Asset Cost $1, Percent Replacement 100% Future Cost $1, Trash receptacles appear to be deteriorating at a a rate typical of their age. Inspect and clean annually - paint/stain from the Operating budget as becomes necessary. Page 57