SOMERSET CREEK STANDARD LEVEL 3 RESERVE STUDY UPDATE WITHOUT A SITE VISIT. With funding recommendations for the 2019 fiscal year

Size: px
Start display at page:

Download "SOMERSET CREEK STANDARD LEVEL 3 RESERVE STUDY UPDATE WITHOUT A SITE VISIT. With funding recommendations for the 2019 fiscal year"

Transcription

1 SOMERSET CREEK Bellevue, Washington STANDARD LEVEL 3 RESERVE STUDY UPDATE WITHOUT A SITE VISIT With funding recommendations for the 2019 fiscal year Issued April, 2018 Next Update: Level 2 by April, 2019 Prepared by: Denise Dana, Reserve Specialist 2018 BY RESERVE CONSULTANTS LLC

2 Somerset Creek docx Contents EXECUTIVE SUMMARY... 1 INTRODUCTION... 4 Purpose of a Reserve Study Government Requirements for a Reserve Study Limitations and Assumptions of a Reserve Study Our Approach to a Reserve Study Inflation and Interest Rate Projections Starting Reserve Fund Balance for Year 1 (2019) ASSOCIATION OVERVIEW COMPONENTS INCLUDED IN THE RESERVE STUDY Component Funding Excluded from the Reserve Study Adjustments to Component Reserve Recommendations RESERVE COMPONENT SUMMARY FINANCIAL ANALYSIS & RESERVE CONTRIBUTION RECOMMENDATIONS FUNDING PLANS Five Year Funding Plan Comparison Reserve Study Projections using Constant Dollar Values Reserve Study Projections using Inflated Dollar Values FULLY FUNDED BALANCE CALCULATIONS FULLY FUNDED BALANCE CALCULATION TABL SUPPLEMENTAL BUDGET INFORMATION (SBI) APPENDIX - GLOSSARY OF TERMS APPENDIX EVALUATOR S CREDENTIALS... 29

3 EXECUTIVE SUMMARY Description Somerset Creek is a 51-unit residential community located at SE 42nd Lane in Bellevue, Washington. This Reserve Study meets the requirements of the Washington Condominium Act for a Level 3 Reserve Study update without a site visit, and was prepared by a Reserve Study Professional. Background The community consists of twelve two-story wood framed buildings with single story detached garages. The buildings have vinyl siding, wood trim and asphalt shingle roofs. Construction of the community was completed in about Financial Information for the Current 2018 Fiscal Year Reserve Account Balance on March 31, 2018 $412,523 Annual Operating Budget $317,580 Component Inclusion Threshold (1% of the Operating Budget) $3,176 Annual Budgeted Contribution to Reserves (2018) $89,700 Remaining Contributions to Reserves for the Year $74,300 Planned or Implemented Special Assessment None Fully Funded Balance $1,512,941 Percent Funded at Time of Study 27% Funding Status at Time of Study Adequately Funded Recommended Contribution to Reserves Starting in Annual Contribution to Reserves $169,000* Recommended Contribution per Month $14,083 Average Contribution per Unit per Year $3,314 Average Contribution per Unit Per Month $276 Recommended Special Assessment None 2019 Baseline Funding Plan Contribution Rate $152, Full Funding Plan Contribution Rate $152,000 The recommended annual contribution to reserves for 2019 is $169,000. *Note: We expect that the contribution to reserves can be adjusted in 2030 to $99,000 in constant dollars and still cover the anticipated expenses for the duration of the study. The recommended reserve contribution represents a Threshold Funding Plan to prevent special assessments over the course of the 30-year study while maintaining a minimum reserve account balance of at least $105,000*. The fiscal year for the Reserve Study is a calendar year. Cost projection accuracy decreases into the distant future. Assumptions should be reconsidered and updated with each revision of the study. There is no legal requirement to fund reserves. There is a requirement to have a current Reserve Study with a current recommended reserve contribution rate. Reserve Studies must be updated annually to reflect recent financial information, repairs or replacements, and to adjust for future repair costs. Every three years, the update must be based on a visual on-site inspection conducted by a Reserve Study Professional. 1

4 Estimated Repair Summary What are we spending our money on over the next 30 years? The following illustrates the distribution of funds by category for anticipated maintenance expenses over the next 30 years. Changing the timing or costs of these items may result in changes to the recommended contribution. Independent design specifications and oversight are suggested for repairs to the building envelope. We further recommend that the planning stages for these repairs start at least one year before the estimated repair to obtain a scope of repair, select and schedule a contractor, and secure financing for the project. 30-Year Total Anticipated Expenses by Group 59.2% Siding, Decks, Railings, Windows & Doors 18.6% Roofing, Gutters & Downspouts 3.6% 2.3% 3.5% 59.2% 12.8% Site Amenities 12.8% 3.6% Specialties 3.5% Mechanical, Electrical & Plumbing Systems 18.6% 2.3% Exterior Finishes Categories the component numbers are assigned to: Number Component Description Group Name Paving, Landscaping & Fencing Site Amenities Walkways Site Amenities Foundation & Structural Repairs Structural Railings & Guardrails Siding, Decks, Railings, Windows & Doors Decks & Siding Siding, Decks, Railings, Windows & Doors Roofing, Gutters & Downspouts Roofing, Gutters & Downspouts Windows, Skylights & Doors Siding, Decks, Railings, Windows & Doors Exterior Paint & Carpeting Exterior Finishes Roof Vents, Signage & Mailboxes Specialties Laundry, Trash Chutes & Kitchens Equipment Interior Furniture, Paint & Flooring Interior Finishes Pool/Spa Finishes & Equipment Pool/Spa Systems Elevator Equipment Elevator Maintenance Plumbing, Drainage & HVAC Systems Mechanical, Electrical & Plumbing Systems Light Fixtures & Electrical Equipment Mechanical, Electrical & Plumbing Systems Not Used Not Used Security Systems Mechanical, Electrical & Plumbing Systems Not Used Not Used Reserve Studies Reserve Studies 2

5 Five Years At A Glance 2019 Through 2023 The following reserve funded expenses are expected to occur in the next five years at Somerset Creek in constant dollar values. Year 1 (2019) Anticipated Maintenance Estimated Cost Sports Court - Maintenance $5, Fencing - Repair $14, Tree - Maintenance $5, Exterior Siding & Trim - Repair Contingency $12, Exterior Paint - Maintenance $16, Signage - Replace $2, Mailboxes - Replace $12,900 Total Estimated Expenses for Year 1 (2019) $70,230 Year 2 (2020) Anticipated Maintenance Estimated Cost Site Fixtures - Repair Contingency $6, Concrete Paving - Repair $1, Roofing - Demoss $5,790 Total Estimated Expenses for Year 2 (2020) $13,470 Year 3 (2021) Anticipated Maintenance Estimated Cost Electrical System - Repair Contingency $6,210 Total Estimated Expenses for Year 3 (2021) $6,210 Year 4 (2022) Anticipated Maintenance Estimated Cost Tree - Maintenance $5, Roofing - Repair $7, Site Water - Repair Contingency $12,400 Total Estimated Expenses for Year 4 (2022) $24,680 Year 5 (2023) Anticipated Maintenance Estimated Cost Asphalt Paving - Seal Coat & Repair $40, Exterior Siding - Cleaning $5, Gutters & Downspouts - Repair $7, Plumbing System - Repair Contingency $6,210 Total Estimated Expenses for Year 5 (2023) $58,840 3

6 INTRODUCTION Purpose of a Reserve Study The purpose of a Reserve Study is to recommend a reasonable annual reserve contribution rate made by an association to its reserve account. Reserve accounts are established to fund major maintenance, repair, and replacement of common elements, including limited common elements, expected within the next thirty years. A Reserve Study is intended to project availability of adequate funds for the replacement or major repair of any significant component of the property as it becomes necessary without relying on special assessments. It is a budget planning tool which identifies the current status of the reserve account and a stable and equitable Funding Plan to offset the anticipated future major shared expenditures. Each reserve component is evaluated to determine the current condition, the remaining useful life, and the estimated replacement cost. This information is combined into a spreadsheet to determine funding requirements and establish the annual contribution rate needed to minimize the potential for special assessments. All costs and annual reserve fund balances are shown in constant dollars, and with adjustments for annual inflation and interest earned. Ideally, an even level of contributions is established that maintains a positive balance in the reserve account over the timeline the study examines. A Reserve Study also calculates a theoretical Fully Funded Balance. Fully Funded Balance is the sum total of the reserve components depreciated value using a straight line depreciation method. To calculate each component s depreciated value: By comparing the actual current reserve fund balance, to the theoretical Fully Funded Balance a Percent Fully Funded is derived. These expenses could be emergency repairs not covered by insurance, or expenses that differ from the existing Reserve Study in terms of timing or cost. The Fully Funded Balance is neither the present replacement cost of all of the Association s reserve components, nor does it have a mathematical relationship to the recommended threshold reserve contribution funding plan. The percent fully funded acts as a measuring tool to assess an association s ability to absorb unplanned expenses. 4

7 Three levels of Reserve Studies: Level 1: The first level, an initial Reserve Study, must be based upon a visual site inspection conducted by a Reserve Study Professional. This is also known as a full Level 1 Reserve Study with a site visit. Level 2: Thereafter at least every three years, an updated Reserve Study must be prepared, which again is based upon a visual site inspection conducted by a Reserve Study Professional. This is also known as a Level 2 update with a site visit. Level 3: As noted earlier, the Association is required to update its Reserve Study every year. However, in two of the three years, the annual updates do not require a site visit. This is also known as a Level 3 update without a site visit. This study is a Level 3 Reserve Study update without a site visit. The next required update for Somerset Creek is a Level 2 study by April, 2019 Our Approach to a Reserve Study Reserve Consultants LLC employs a Reasonable Approach when evaluating reserve components in order to draft a study that is of greatest value to our clients. This means we attempt to predict, based on the costs involved and the client s objectives, what a reasonable person will decide to have done when maintenance, repairs, or replacement become necessary. For example, a reasonable person will not replace a fence when it only needs to be repainted. The benefit of this is that reserve contributions are minimized to allow for what is most likely to occur. Our studies are not based on a worst case scenario, but rather on what we expect is most likely to occur. Our approach assumes minor problems will be corrected as they occur, before they become major problem. Many sources were used in drafting this report. These include: Review of previous reserve study report(s); Input provided by association representatives; Review of architectural plans of the buildings, if made available; Review of the Governing Documents for the Association, or a list of components the Association is responsible for; Generally accepted construction, maintenance, and repair guidelines Several factors may influence the actual costs that the Association will experience. The quality of replacement materials of items can significantly impact cost, as well as the timing between replacements. The use of Architects or independent construction managers to specify and oversee work may also cause additional expenses. Condominium associations typically experience higher costs than other comparable multifamily projects, in part due to the difficulty contractors have obtaining insurance to work on condominium buildings. 5

8 Government Requirements for a Reserve Study The content of a Reserve Study for a condominium is regulated by the Washington State government (RCW ). (a) A reserve component list, including roofing, painting, paving, decks, siding, plumbing, windows, and any other reserve component that would cost more than one percent of the annual budget for major maintenance, repair or replacement. If one of these reserve components is not included in the Reserve Study, the study should provide commentary explaining the basis for its exclusion. The study must also include quantities and estimates for useful life of each reserve component, remaining useful life of each reserve component, and current repair and replacement cost for each component; (b) The date of the study and a statement that the study meets the requirements of this section; (c) The following level of reserve study performed (i) Level I Full reserve study funding analysis and plan; (ii) Level II Update with visual site inspection; or (iii) Level III Update with no visual site inspection; (d) The association s reserve account balance; (e) The percentage of the fully funded balance that the reserve account is funded; (f) Special assessments already implemented or planned; (g) Interest and inflation assumptions; (h) Current reserve account contribution rate; (i) A recommended reserve account contribution rate; a contribution rate for a full funding plan to achieve one hundred percent fully funded reserves by the end of the thirty-year study period, a baseline funding plan to maintain the reserve (fund) balance above zero throughout the thirty-year study period without special assessments, and a contribution rate recommended by a reserve study professional; (j) A projected reserve account balance for thirty years and a funding plan to pay for projected costs from those reserves without reliance on future unplanned special assessments; and (k) A statement on whether the reserve study was prepared with the assistance of a reserve study professional. 6

9 The Washington State government further requires the following disclosure in every Reserve Study (RCW ): "This reserve study should be reviewed carefully. It may not include all common and limited common element components that will require major maintenance, repair, or replacement in future years, and may not include regular contributions to a reserve account for the cost of such maintenance, repair, or replacement. The failure to include a component in a reserve study, or to provide contributions to a reserve account for a component, may, under some circumstances, require you to pay on demand as a special assessment your share of common expenses for the cost of major maintenance, repair, or replacement of a reserve component." The full Washington Condominium Act may be reviewed on the Washington State Legislature s website at: and parts of to for the Reserve Study Amendment s portions. In April 2011, the Act was amended to change the required content within the Reserve Studies, add reporting of the Reserve Study results as part of the budget summary to owners, and extend the Reserve Study requirement to homeowners associations with significant assets. For questions regarding the Act, we recommend contacting an attorney familiar with condominiums' legal requirements. Limitations and Assumptions of a Reserve Study This Reserve Study is not a report on the condition of the assets maintained by the Association, or a detailed report of necessary maintenance to the assets. It is also not an investigation into or comment on the quality of construction of the reserve components, or whether the construction complies with the building code or the requirements of the Washington Condominium Act. The observations made by Reserve Consultants LLC are limited to a visual inspection of a sample of the reserve components. Unless informed otherwise, our assumption is that the components are constructed in substantial compliance with the building code and to industry standards, and that it will receive ordinary and reasonable maintenance and repair by the Association. These assumptions include that most reserve components will achieve their normal useful lives for similar components in the Pacific Northwest, and that they will be replaced when necessary to prevent damage to other reserve components. This Reserve Study assumes that the assets will be maintained to keep a good level of appearance, with a special emphasis on retaining the original appearance of the assets to the greatest possible extent. The analysis also assumes that the Association will replace materials as they are required with good quality materials, installed by qualified, licensed, contractors. We further assume that the assets will experience the full typical useful life for the new materials installed. The long term nature of this study requires that certain assumptions and predictions be made about future events. Since there can be no guarantee that these future events will occur as assumed, this analysis must be viewed in light of the circumstances under which it was conducted. Reasonable effort has been made to ensure that the conclusions of this report are based on reliable information and sound reasoning. This report should be updated annually with actual repair costs, reserve fund balances, etc. Every three years it should be updated with a site inspection and professional review. Regular updating will allow changes based on actual occurrences and adjustments for the cost of repairs to be incorporated into the annual reserve contributions. This will allow any savings or additional costs to be properly allocated among unit owners. 7

10 Inflation and Interest Rate Projections When making estimates on the future inflation and interest rates, we use a staggered approach to more accurately reflect future economic projections. For inflation, we use the construction industry inflation rates published by RS Means, which differ from the consumer inflation index. The average annual construction inflation increase since 1966 is 4.16%. We do not apply inflation to the annual reserve contribution in Year 0. Likewise, we do not apply inflation to the recommended reserve contribution in Year 1 since this is the first year at the recommended contribution rate. Inflation applied to the components on the inflated spreadsheet is compounded annually; the values are listed for each year at the bottom of the inflated spreadsheet. For interest rates, we analyze the historical data provided by the Board of Governors of the Federal Reserve. The average annual interest rate since 1987 is 3.44%. The interest for associations is typically lower than average due to conservative investing options that are usually employed by associations. Interest is applied to Year 0 only in the constant spreadsheet so that the starting reserve fund balance in Year 1 is the same for both the constant and inflated spreadsheets, as illustrated on the following page. Inflation and Interest Rate Projections for Somerset Creek. Years Applied Contribution Inflation Inflation Interest Year 0 (2018) through Year 1 (2019) 0% 3% 2% Year 2 (2020) through Year 10 (2028) 3% 3% 2% Year 11 (2029) through Year 30 (2048) 4% 4% 3% 8

11 Starting Reserve Fund Balance for Year 1 (2019) The starting reserve fund balance for 2019 has been estimated by combining the following figures that were provided by an association representative: $412,523 reserve fund balance as of March 31, ($0) anticipated remaining maintenance expenses in $0 planned special assessment in $74,300 remaining reserve contributions for $6,745 projected interest on the 2018 reserve fund balance $493,568 estimated beginning balance for fiscal year 2019 There are no anticipated remaining maintenance expenses for The actual or projected total reserve fund balance presented in the Reserve Study is based on information provided to RCL and was not audited. 9

12 ASSOCIATION OVERVIEW Somerset Creek is a 51-unit residential community located in Bellevue, Washington. The community has twelve two-story wood framed buildings with single story detached garages. The buildings have vinyl siding, wood trim and asphalt shingle roofs. Construction of the community was completed in about The Association has asphalt driveways concrete curbs and sidewalks. The units feature exterior decks or patios. A wood bridge crosses a creek that runs through the community, which leads to a park area with a sports court, picnic table and brick barbeque for residents use. The overall appearance of the community was very good. The asphalt paving was repaired and seal coated in. Sidewalks and curbs were last repaired in. The grounds and landscaping seemed to be regularly maintained. The exterior XXXX siding appeared to be in good condition; the paint on the siding and trim was weathering as expected. Replacing the windows is the responsibility of the unit owner/association; the windows were original to the building / were replaced in. Repaired and recoated in, the exterior decks looked as if they are performing as expected. There were no issues reported with the XXXX roofs. No problems were reported with the plumbing, electrical or drainage systems. Minor and major repairs have been conducted on a regular basis. XXXX was in progress at the time of our inspection. 10

13 COMPONENTS INCLUDED IN THE RESERVE STUDY Reserve studies for condominiums are required to include roofing, painting, paving, decks, siding, plumbing, windows, and any other reserve component that would cost more than one percent of the annual budget for major maintenance, repair or replacement (RCW ). While the law defines the inclusion threshold to be $3,176, components valued less than the legal threshold may be included to better capture reserve funding for Somerset Creek. Component Funding Excluded from the Reserve Study Operating Budget The following components may qualify for inclusion within the Reserve Study, but have been excluded from the budget because they are maintained with funds from the operating budget: lawns/landscaping creek reserve studies Unit Owner Responsibility There are items that individual unit owners are responsible to maintain and pay for, including, but not limited to: damage by residents or their pets interior finishes within the residence skylights exterior decks Not all components that are the individual unit owners responsibility are described in the report. The costs for items maintained by individual unit owners are not included in the budget for the reserve account contribution recommendations. Individual owners are financially responsible for repairs for elements that are not the responsibility of the Association to maintain. We recommend that associations establish policies and processes regarding the maintenance on these owner responsibility items. Adjustments to Component Reserve Recommendations This reserve study provides updated information on the components from prior reserve studies. All cost estimates were adjusted to reflect the actual inflation rate for construction work in the Pacific Northwest, and costs actually experienced by Somerset Creek or others in the area. To complete the report, we were provided with a record of recent expenditures on reserve components. We use those figures, where applicable, for updating component cost projections, applying an appropriate inflation factor. Where updated figures from actual work performed are not available, cost projections from the previous reserve study are updated for inflation and rounded to the nearest $10, using the RS Means 2017 to 2018 inflation figure of 2.06% for construction work. 11

14 RESERVE COMPONENT SUMMARY 12

15 Somerset Creek xlsx Asphalt Paving - Seal Coat & Repair Maintenance Cycle: 6 years Next Maintenance: Year 5 (2023) Quantity: 37,270 Square Feet Unit Cost: $0.98 / SF Estimate: 37,270 SF X 100% X $0.98/SF = $36,518 + tax = $40,170 The Association reported that the asphalt was repaired and seal coated in 2017 for a cost of $39,398. We have adjusted the cost and next maintenance accordingly Sports Court - Maintenance Maintenance Cycle: 10 years Next Maintenance: Year 1 (2019) Quantity: 1 Lump Sum Unit Cost: $5, / LS Estimate: $5,160 We continue to budget funds to resurface and restripe the sports court. The work is not reported as budgetd and anticipated in 2018, so we have moved the next maintenance to This is a discretionary item and should be adjusted to meet the needs of the Association Fencing - Repair Maintenance Cycle: 6 years Next Maintenance: Year 1 (2019) Quantity: 3,150 Linear Feet Unit Cost: $28.80 / LF Estimate: 3,150 LF X 15% X $28.80/LF = $13,609 + tax = $14,970 A significant amount of wood and vinyl fencing and vinyl lattice work can be found throughout the Association. We maintain a repair contingency to repair or replace sections of the fencing as needed, rather than budgeting to replace all of the fencing and lattice work all at once Tree - Maintenance Maintenance Cycle: 3 years Next Maintenance: Year 1 (2019) Quantity: 1 Lump Sum Unit Cost: $5, / LS Estimate: $5,160 It was reported that an arborist trimmed trees at the end of We have budgeted funds for similar visits every 3 years since the community has a significant amount of mature trees on the property. The anticipated trimming in 2018 is not reported to be budgeted, so we have moved the next maintenance to Component Summary Page 1 of 6

16 Somerset Creek xlsx Site Fixtures - Repair Contingency Maintenance Cycle: 10 years Next Maintenance: Year 2 (2020) Quantity: 1 Lump Sum Unit Cost: $6, / LS Estimate: $6,210 We have budgeted funds to maintain the bridge, picnic table, volleyball net and brick barbeque in the small park across the creek from the main entrances to the community. We intend for the funds to be drawn as needed, and should be adjusted to meet the needs of the Association Concrete Paving - Repair Maintenance Cycle: 7 years Next Maintenance: Year 2 (2020) Quantity: 3,840 Square Feet Unit Cost: $11.60 / SF Estimate: 3,840 SF X 3% X $11.60/SF = $1,336 + tax = $1,470 We budget to repair approximately 3% of the concrete paving every 7 years. Repairs are typically made to remove trip hazards or to replace sections of concrete curbs or flatwork that is damaged to the point that it is no longer functional Exterior Siding & Trim - Repair Contingency Maintenance Cycle: 8 years Next Maintenance: Year 1 (2019) Quantity: 78,000 Square Feet Unit Cost: $14.92 / SF Estimate: 78,000 SF X 1% X $14.92/SF = $11,636 + tax = $12,800 The Association did not indicate that they would be repairing the exterior siding again in We have moved the next repair cycle out to This component budgets funds to repair approximately 1% of the siding and trim in conjunction with each paint cycle Exterior Siding - Cleaning Maintenance Cycle: 4 years Next Maintenance: Year 5 (2023) Quantity: 78,000 Lump Sum Unit Cost: $5, / LS Estimate: $5,300 We have updated this component to take place between the budgeted paint cycles since the buildings should be cleaned prior to painting. This way the buildings will be cleaned once every four years. Since painting has been moved to 2019, and exterior cleaning is not budgeted this year, the next cleaning cycle has been moved to Component Summary Page 2 of 6

17 Somerset Creek xlsx Exterior Siding - Replace Maintenance Cycle: 40 years Next Maintenance: Year 10 (2028) Quantity: 78,000 Square Feet Unit Cost: $14.92 / SF Estimate: 78,000 SF X 100% X $14.92/SF = $1,163,473 + tax = $1,279,820 We have budgeted for replacing the vinyl siding when it is approximately 40 years old, the typical useful life. As vinyl ages is becomes brittle and the finish becomes damaged by UV exposure. Associations often find that they can no longer match the texture of their existing siding and/or the color has faded to such an extent that it no longer matches the newly manufactured components Gutters & Downspouts - Repair Maintenance Cycle: 7 years Next Maintenance: Year 5 (2023) Quantity: 11,500 Linear Feet Unit Cost: Estimate: 11,500 LF X 10% X $5.66/LF = $6,509 + tax = $7,160 $5.66 / LF We maintain a budget for repairing approximately 10% of the gutters and downspouts, with the budget resetting every 7 years. Funds should be used as needed Gutters & Downspouts - Replace Maintenance Cycle: 25 years Next Maintenance: Year 14 (2032) Quantity: 11,500 Linear Feet Unit Cost: $5.66 / LF Estimate: 11,500 LF X 100% X $5.66/LF = $65,064 + tax = $71,570 We have budgeted to replace the gutters and downspouts with the roof replacement, since the gutters should be removed to properly integrate the gutters with the new roofing surface Roofing - Repair Maintenance Cycle: 5 years Next Maintenance: Year 4 (2022) Quantity: 920 Roofing Squares Unit Cost: $ / SQ Estimate: 920 SQ X 2% X $351.78/SQ = $6,473 + tax = $7,120 It was reported that approximately $2,241 was spent on roof repairs in 2017, in addition to the complete roof replacement at Building Component Summary Page 3 of 6

18 Somerset Creek xlsx Roofing - Demoss Maintenance Cycle: 5 years Next Maintenance: Year 2 (2020) Quantity: 920 Lump Sum Unit Cost: $5, / LS Estimate: $5,790 We continue to budget for applying products to deter moss growth on the roofs, which helps to ensure that the shingles reach their full useful life Roofing - Replace Phase 1 Maintenance Cycle: 25 years Next Maintenance: Year 24 (2042) Quantity: 77 Roofing Squares Unit Cost: $ / SQ Estimate: 77 SQ X 100% X $352.07/SQ = $27,109 + tax = $29,820 It was reported that Building had a complete roof replacement in 2017 at a cost of approximately $26,800. We have moved this building onto its own component since the next replacement will differ from the remaining buildings Roofing - Replace Maintenance Cycle: 25 years Next Maintenance: Year 14 (2032) Quantity: 843 Roofing Squares Unit Cost: $ / SQ Estimate: 843 SQ X 100% X $352.11/SQ = $296,827 + tax = $326,510 We continue to budget for replacing the remaining roofs when they have been in service approximately 25 years, with the exception of Building which is on a separate maintenance cycle Exterior Windows - Replace Maintenance Cycle: 40 years Next Maintenance: Year 10 (2028) Quantity: 6,885 Square Feet Unit Cost: $44.23 / SF Estimate: 6,885 SF X 100% X $44.23/SF = $304,555 + tax = $335,010 We maintain a budget for window replacement with the siding replacement. Completing replacement of both at the same time helps to ensure that industry standard waterproofing details are used. Component Summary Page 4 of 6

19 Somerset Creek xlsx Exterior Paint - Maintenance Maintenance Cycle: 8 years Next Maintenance: Year 1 (2019) Quantity: 51 Lump Sum Unit Cost: $16, / LS Estimate: $16,530 The Association did not indicate that they would be painting the exteriors this year. We have moved the next paint cycle out to Refer to component Exterior Siding & Trim - Repair Contingency which budgets for replacing components that are damaged or show signs of dry rot Chimney Chases - Maintenance Maintenance Cycle: 25 years Next Maintenance: Year 14 (2032) Quantity: 51 Each Unit Cost: $1, / EA Estimate: 51 EA X 100% X $1,234.40/EA = $62,955 + tax = $69,250 This budget funds to repair and maintain the chimney chases every 25 years. Most often this work is completed in conjunction with the roof shingle replacement to integrate flashing between the shingles and chimney chases Signage - Replace Maintenance Cycle: 12 years Next Maintenance: Year 1 (2019) Quantity: 1 Lump Sum Unit Cost: $2, / LS Estimate: $2,710 We still budget for replacing both signs by This is another discretionary expense that should be adjusted to meet the needs of the Association Mailboxes - Replace Maintenance Cycle: 20 years Next Maintenance: Year 1 (2019) Quantity: 12 Each Unit Cost: $ / EA Estimate: 12 EA X 100% X $977.27/EA = $11,727 + tax = $12,900 We budget for replacing the mailboxes at the end of their typical useful life, but the timing for replacement can vary. Component Summary Page 5 of 6

20 Somerset Creek xlsx Plumbing System - Repair Contingency Maintenance Cycle: 10 years Next Maintenance: Year 5 (2023) Quantity: 1 Lump Sum Unit Cost: $6, / LS Estimate: $6,210 This repair contingency is intended to financially prepare the Association for maintenance to the Common Area sections of the plumbing system that run from the utility connection to each building. This contingency is intended to be drawn from as needed Site Water - Repair Contingency Maintenance Cycle: 10 years Next Maintenance: Year 4 (2022) Quantity: 1 Lump Sum Unit Cost: $12, / LS Estimate: $12,400 This component provides a repair contingency for site drainage and the creek as needed Electrical System - Repair Contingency Maintenance Cycle: 5 years Next Maintenance: Year 3 (2021) Quantity: 12 Lump Sum Unit Cost: $6, / LS Estimate: $6,210 The electrical meters are protected by exterior enclosures, which reduces the need to replace the meter bases. This component budgets a repair contingency for periodic inspections and needed repairs, which are recommended for buildings over 20 years old, and for unexpected repairs. This fund should be drawn from as needed Exterior Lighting - Replace Maintenance Cycle: 20 years Next Maintenance: Year 17 (2035) Quantity: 128 Fixtures Unit Cost: $ / FIXT Estimate: 128 FIXT X 50% X $128.13/FIXT = $8,200 + tax = $9,020 We understand that the exterior light fixtures were converted to LED in We have budgeted for future replacement in 20 years; the true life expectancy for LED fixtures is still unknown since it is newer technology. Component Summary Page 6 of 6

21 FINANCIAL ANALYSIS & RESERVE CONTRIBUTION RECOMMENDATIONS The contribution as a percentage of average unit value is calculated to provide a way for owners, and prospective owners, to compare the reserve requirements of one association with that of another association or of single-family home ownership. Using an average unit value of $513,000, the average contribution per unit per year as a percentage of the average unit value at Somerset Creek is 0.65%.Typically, condominium associations in the Puget Sound area need to set aside from 1/2% to 1% of their average unit value, homeowners associations need to put aside 1/3% to 1/2% and single family homeowners should put aside 1% to 2% each year. Somerset Creek should determine the best reserve funding level for their association based on their maintenance needs and risk aversion. Recommended 2019 Contribution $169,000* Recommended Contribution per Month $14,083 Average Contribution per Unit per Year $3,314 Average Contribution per Unit Per Month $276 For budgeting purposes, we recommend that Somerset Creek set the contribution rate at $169,000 for reserves beginning in 2019 (*with an adjustment in the reserve contribution in 2030 to $99,000 in constant dollars). The annual reserve contribution should increase annually with inflation. This amount is determined using the Cash Flow method with a Threshold Funding plan, to provide adequate reserves each time an expense is anticipated, with a minimum level of reserves (the threshold) equal to at least $105,000 at all times during the study period, so that no special assessments will be required. *Note: We expect that the contribution to reserves can be adjusted in 2030 to $99,000 in constant dollars and still cover the anticipated expenses for the duration of the study. FUNDING PLANS THRESHOLD FUNDING $169,000 (with an adjustment in the reserve contribution in 2030 to $99,000 in constant dollars) A starting annual contribution of $169,000 (with an adjustment in the reserve contribution in 2030 to $99,000 in constant dollars) fulfills the definition of a Threshold Funding plan which provides funding as expenses are incurred over time, while always maintaining a minimum reserve fund balance of at least $105,000. This is our recommended funding plan. BASELINE FUNDING $152,000, not including the anticipated contribution adjustment An alternative strategy Somerset Creek could employ is Baseline Funding. This provides for necessary expenditures without maintaining a minimum reserve fund balance. To pursue such a strategy, the recommended Baseline Funding contribution rate would be $152,000, not including the anticipated contribution adjustment. FULLY FUNDED $152,000, not including the anticipated contribution adjustment Somerset Creek could also consider contributions to obtain and maintain the level of reserves to be Fully Funded, so that the Percent Fully Funded is 100% by Year 30. The recommended Full Funding contribution rate would be $152,000, not including the anticipated contribution adjustment. 13

22 Below is a graph illustrating the projected year end reserve fund balance using both the current (2018) budgeted annual contribution and the recommended starting (2019) contribution (with an adjustment in the reserve contribution in 2030 to $99,000 in constant dollars). Somerset Creek Owners Association Inflated Year End Reserve Fund Balance Comparison of the $89,700 Current Contribution with the $169,000 Recommended Starting Contribution $5,000,000 Recommended Contribution $4,000,000 Current Contribution $3,000,000 $2,000,000 $1,000,000 $0 ($1,000,000) ($2,000,000) We recommend that Somerset Creek adopt a policy regarding their reserve funding which would address the level of funding that the Association would strive to maintain, as well as methods of investing reserve funds to best match risk with return and investment length with expected. 14

23 Five Year Funding Plan Comparison Below is a comparison of the fully funded balance and year end reserve fund balance using the budgeted reserve funding for the current 2018 fiscal year and the three funding plans presented in the report. The calculations include inflated values, interest and special assessments (if applicable) through Year 5 (2023). $89,700 Current Funding Plan Year Annual Reserve Contribution Somerset Creek Owners Association Five Year Funding Plan Comparison Including Inflated Values, Interest and Special Assessments Special Assessment Year End Reserve Balance % Funded Funding Status 1 (2019) $89,700 $0 $520,976 34% Adequately Funded 2 (2020) $92,391 $0 $610,277 37% Adequately Funded 3 (2021) $95,163 $0 $711,744 40% Adequately Funded 4 (2022) $98,018 $0 $796,921 42% Adequately Funded 5 (2023) $100,958 $0 $845,933 43% Adequately Funded $152,000 Baseline Funding Plan Year Annual Reserve Contribution Special Assessment Year End Reserve Balance % Funded Funding Status 1 (2019) $152,000 $0 $586,193 38% Adequately Funded 2 (2020) $156,560 $0 $741,609 45% Adequately Funded 3 (2021) $161,257 $0 $912,457 51% Adequately Funded 4 (2022) $166,095 $0 $1,070,406 56% Adequately Funded 5 (2023) $171,077 $0 $1,195,708 60% Well Funded $169,000 Recommended (Threshold) Funding Plan Year Annual Reserve Contribution Special Assessment Year End Reserve Balance % Funded Funding Status 1 (2019) $169,000 $0 $601,069 39% Adequately Funded 2 (2020) $174,070 $0 $774,468 47% Adequately Funded 3 (2021) $179,292 $0 $964,189 54% Adequately Funded 4 (2022) $184,671 $0 $1,141,935 60% Well Funded 5 (2023) $190,211 $0 $1,287,993 65% Well Funded $152,000 Full Funding Plan Year Annual Reserve Contribution Special Assessment Year End Reserve Balance % Funded Funding Status 1 (2019) $152,000 $0 $586,193 38% Adequately Funded 2 (2020) $156,560 $0 $741,609 45% Adequately Funded 3 (2021) $161,257 $0 $912,457 51% Adequately Funded 4 (2022) $166,095 $0 $1,070,406 56% Adequately Funded 5 (2023) $171,077 $0 $1,195,708 60% Well Funded 15

24 Reserve Study Projections using Constant Dollar Values Teal Line Graph: The year-end running reserve fund balance is shown as a line graph in teal. Our recommended funding plan is a threshold funding plan which ensures that the reserve account balance does not dip below a designated threshold, which is set to at least $105,000. Mint Green Bars: The annual reserve fund contributions are shown as mint green bars. This chart depicts the annual contribution in constant dollars, so the contributions are constantly $169,000 over the 30 year timeline of the study, with exception of the anticipated contribution adjustment in Brick Red Bars: The anticipated yearly maintenance expenses are shown as brick red bars, depicting the anticipated expenses over the next 30 years. Below is a graph depicting the projected fiscal year end running reserve fund balance over 30 years, the annual contribution and the anticipated yearly maintenance expenses using constant dollar values. Somerset Creek Owners Association Reserve Study Projections at the Recommended Starting Funding of $169,000 Using 2018 Constant Dollars $2,000,000 $1,800,000 $1,600,000 Reserve Fund Balance Contribution Maintenance Expenses $1,400,000 $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ YEARS 16

25 Reserve Study Projections at the Starting Recommended Funding of $169,000 Using Constant Dollar Values 17

26 Somerset Creek xlsx TE: Somerset Creek Owners Association Reserve Study Projections at Reserve 30-YEAR SPREADSHEET PER YEAR EXPENSES IN Recommended Funding of $169,000 Consultants LLC WITH CONSTANT DOLLARS 2018 DOLLARS 17-Apr MAINT. NEXT # COMPONENT NAME CYCLE MAINT Asphalt Paving - Seal Coat & Repair 6 5 $0 $0 $0 $0 $40, Sports Court - Maintenance 10 1 $5,160 $0 $0 $0 $ Fencing - Repair 6 1 $14,970 $0 $0 $0 $ Tree - Maintenance 3 1 $5,160 $0 $0 $5,160 $ Site Fixtures - Repair Contingency 10 2 $0 $6,210 $0 $0 $ Concrete Paving - Repair 7 2 $0 $1,470 $0 $0 $ Exterior Siding & Trim - Repair Contingency 8 1 $12,800 $0 $0 $0 $ Exterior Siding - Cleaning 4 5 $0 $0 $0 $0 $5, Exterior Siding - Replace Gutters & Downspouts - Repair 7 5 $0 $0 $0 $0 $7, Gutters & Downspouts - Replace Roofing - Repair 5 4 $0 $0 $0 $7,120 $ Roofing - Demoss 5 2 $0 $5,790 $0 $0 $ Roofing - Replace Phase Roofing - Replace Exterior Windows - Replace Exterior Paint - Maintenance 8 1 $16,530 $0 $0 $0 $ Chimney Chases - Maintenance Signage - Replace 12 1 $2,710 $0 $0 $0 $ Mailboxes - Replace 20 1 $12,900 $0 $0 $0 $ Plumbing System - Repair Contingency 10 5 $0 $0 $0 $0 $6, Site Water - Repair Contingency 10 4 $0 $0 $0 $12,400 $ Electrical System - Repair Contingency 5 3 $0 $0 $6,210 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR $70,230 $13,470 $6,210 $24,680 $58,840 CARRY OVER RESERVES $493,568 $592,338 $747,868 $910,658 $1,054,978 ANNUAL RESERVE CONTRIB $169,000 $169,000 $169,000 $169,000 $169,000 RESERVE EXPENDITURES $70,230 $13,470 $6,210 $24,680 $58,840 ACCUMULATED RESERVES $592,338 $747,868 $910,658 $1,054,978 $1,165,138 INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE $592,338 $747,868 $910,658 $1,054,978 $1,165,138 STUDY YEAR 1 (2019 ) 2 (2020 ) 3 (2021 ) 4 (2022 ) 5 (2023 ) COPYRIGHT 2018 Reserve Consultants LLC Constant Dollar Cash Flow Page 1 of 6

27 Somerset Creek xlsx TE: Somerset Creek Owners Association Reserve Study Projections at Reserve 30-YEAR SPREADSHEET PER YEAR EXPENSES IN 17-Apr MAINT. NEXT # COMPONENT NAME CYCLE MAINT. Recommended Funding of $169,000 Consultants LLC WITH CONSTANT DOLLARS 2018 DOLLARS Asphalt Paving - Seal Coat & Repair Sports Court - Maintenance Fencing - Repair 6 1 $0 $14,970 $0 $0 $ Tree - Maintenance 3 1 $0 $5,160 $0 $0 $5, Site Fixtures - Repair Contingency Concrete Paving - Repair 7 2 $0 $0 $0 $1,470 $ Exterior Siding & Trim - Repair Contingency 8 1 $0 $0 $0 $12,800 $ Exterior Siding - Cleaning 4 5 $0 $0 $0 $5,300 $ Exterior Siding - Replace $0 $0 $0 $0 $1,279, Gutters & Downspouts - Repair Gutters & Downspouts - Replace Roofing - Repair 5 4 $0 $0 $0 $7,120 $ Roofing - Demoss 5 2 $0 $5,790 $0 $0 $ Roofing - Replace Phase Roofing - Replace Exterior Windows - Replace $0 $0 $0 $0 $335, Exterior Paint - Maintenance 8 1 $0 $0 $0 $16,530 $ Chimney Chases - Maintenance Signage - Replace Mailboxes - Replace Plumbing System - Repair Contingency Site Water - Repair Contingency Electrical System - Repair Contingency 5 3 $0 $0 $6,210 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE STUDY YEAR $0 $25,920 $6,210 $43,220 $1,619,990 $1,165,138 $1,334,138 $1,477,218 $1,640,008 $1,765,788 $169,000 $169,000 $169,000 $169,000 $169,000 $0 $25,920 $6,210 $43,220 $1,619,990 $1,334,138 $1,477,218 $1,640,008 $1,765,788 $314,798 $1,334,138 $1,477,218 $1,640,008 $1,765,788 $314,798 6 (2024 ) 7 (2025 ) 8 (2026 ) 9 (2027 ) 10 (2028 ) COPYRIGHT 2018 Reserve Consultants LLC Constant Dollar Cash Flow Page 2 of 6

28 Somerset Creek xlsx TE: Somerset Creek Owners Association Reserve Study Projections at Reserve 30-YEAR SPREADSHEET PER YEAR EXPENSES IN 17-Apr MAINT. NEXT # COMPONENT NAME CYCLE MAINT. Recommended Funding of $169,000 Consultants LLC WITH CONSTANT DOLLARS 2018 DOLLARS Asphalt Paving - Seal Coat & Repair 6 5 $40,170 $0 $0 $0 $ Sports Court - Maintenance 10 1 $5,160 $0 $0 $0 $ Fencing - Repair 6 1 $0 $0 $14,970 $0 $ Tree - Maintenance 3 1 $0 $0 $5,160 $0 $ Site Fixtures - Repair Contingency 10 2 $0 $6,210 $0 $0 $ Concrete Paving - Repair Exterior Siding & Trim - Repair Contingency Exterior Siding - Cleaning 4 5 $0 $0 $5,300 $0 $ Exterior Siding - Replace Gutters & Downspouts - Repair 7 5 $0 $7,160 $0 $0 $ Gutters & Downspouts - Replace $0 $0 $0 $71,570 $ Roofing - Repair 5 4 $0 $0 $0 $7,120 $ Roofing - Demoss 5 2 $0 $5,790 $0 $0 $ Roofing - Replace Phase Roofing - Replace $0 $0 $0 $326,510 $ Exterior Windows - Replace Exterior Paint - Maintenance Chimney Chases - Maintenance $0 $0 $0 $69,250 $ Signage - Replace 12 1 $0 $0 $2,710 $0 $ Mailboxes - Replace Plumbing System - Repair Contingency 10 5 $0 $0 $0 $0 $6, Site Water - Repair Contingency 10 4 $0 $0 $0 $12,400 $ Electrical System - Repair Contingency 5 3 $0 $0 $6,210 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE STUDY YEAR $45,330 $19,160 $34,350 $486,850 $6,210 $314,798 $438,468 $518,308 $582,958 $195,108 $169,000 $99,000 $99,000 $99,000 $99,000 $45,330 $19,160 $34,350 $486,850 $6,210 $438,468 $518,308 $582,958 $195,108 $287,898 $438,468 $518,308 $582,958 $195,108 $287, (2029 ) 12 (2030 ) 13 (2031 ) 14 (2032 ) 15 (2033 ) COPYRIGHT 2018 Reserve Consultants LLC Constant Dollar Cash Flow Page 3 of 6

29 Somerset Creek xlsx TE: Somerset Creek Owners Association Reserve Study Projections at Reserve 30-YEAR SPREADSHEET PER YEAR EXPENSES IN 17-Apr MAINT. NEXT # COMPONENT NAME CYCLE MAINT. Recommended Funding of $169,000 Consultants LLC WITH CONSTANT DOLLARS 2018 DOLLARS Asphalt Paving - Seal Coat & Repair 6 5 $0 $40,170 $0 $0 $ Sports Court - Maintenance Fencing - Repair 6 1 $0 $0 $0 $14,970 $ Tree - Maintenance 3 1 $5,160 $0 $0 $5,160 $ Site Fixtures - Repair Contingency Concrete Paving - Repair 7 2 $1,470 $0 $0 $0 $ Exterior Siding & Trim - Repair Contingency 8 1 $0 $12,800 $0 $0 $ Exterior Siding - Cleaning 4 5 $0 $5,300 $0 $0 $ Exterior Siding - Replace Gutters & Downspouts - Repair 7 5 $0 $0 $0 $7,160 $ Gutters & Downspouts - Replace Roofing - Repair 5 4 $0 $0 $0 $7,120 $ Roofing - Demoss 5 2 $0 $5,790 $0 $0 $ Roofing - Replace Phase Roofing - Replace Exterior Windows - Replace Exterior Paint - Maintenance 8 1 $0 $16,530 $0 $0 $ Chimney Chases - Maintenance Signage - Replace Mailboxes - Replace Plumbing System - Repair Contingency Site Water - Repair Contingency Electrical System - Repair Contingency 5 3 $0 $0 $6,210 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE STUDY YEAR $0 $9,020 $0 $0 $0 $6,630 $89,610 $6,210 $34,410 $0 $287,898 $380,268 $389,658 $482,448 $547,038 $99,000 $99,000 $99,000 $99,000 $99,000 $6,630 $89,610 $6,210 $34,410 $0 $380,268 $389,658 $482,448 $547,038 $646,038 $380,268 $389,658 $482,448 $547,038 $646, (2034 ) 17 (2035 ) 18 (2036 ) 19 (2037 ) 20 (2038 ) COPYRIGHT 2018 Reserve Consultants LLC Constant Dollar Cash Flow Page 4 of 6

30 Somerset Creek xlsx TE: Somerset Creek Owners Association Reserve Study Projections at Reserve 30-YEAR SPREADSHEET PER YEAR EXPENSES IN 17-Apr MAINT. NEXT # COMPONENT NAME CYCLE MAINT. Recommended Funding of $169,000 Consultants LLC WITH CONSTANT DOLLARS 2018 DOLLARS Asphalt Paving - Seal Coat & Repair 6 5 $0 $0 $40,170 $0 $ Sports Court - Maintenance 10 1 $5,160 $0 $0 $0 $ Fencing - Repair 6 1 $0 $0 $0 $0 $14, Tree - Maintenance 3 1 $0 $5,160 $0 $0 $5, Site Fixtures - Repair Contingency 10 2 $0 $6,210 $0 $0 $ Concrete Paving - Repair 7 2 $0 $0 $1,470 $0 $ Exterior Siding & Trim - Repair Contingency 8 1 $0 $0 $0 $0 $12, Exterior Siding - Cleaning 4 5 $5,300 $0 $0 $0 $5, Exterior Siding - Replace Gutters & Downspouts - Repair Gutters & Downspouts - Replace $0 $0 $0 $ Roofing - Repair 5 4 $0 $0 $0 $7,120 $ Roofing - Demoss 5 2 $0 $5,790 $0 $0 $ Roofing - Replace Phase $0 $0 $0 $29,820 $ Roofing - Replace Exterior Windows - Replace Exterior Paint - Maintenance 8 1 $0 $0 $0 $0 $16, Chimney Chases - Maintenance Signage - Replace 12 1 $0 $0 $0 $0 $2, Mailboxes - Replace 20 1 $12,900 $0 $0 $0 $ Plumbing System - Repair Contingency 10 5 $0 $0 $0 $0 $6, Site Water - Repair Contingency 10 4 $0 $0 $0 $12,400 $ Electrical System - Repair Contingency 5 3 $0 $0 $6,210 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE STUDY YEAR $23,360 $17,160 $47,850 $49,340 $63,680 $646,038 $721,678 $803,518 $854,668 $904,328 $99,000 $99,000 $99,000 $99,000 $99,000 $23,360 $17,160 $47,850 $49,340 $63,680 $721,678 $803,518 $854,668 $904,328 $939,648 $721,678 $803,518 $854,668 $904,328 $939, (2039 ) 22 (2040 ) 23 (2041 ) 24 (2042 ) 25 (2043 ) COPYRIGHT 2018 Reserve Consultants LLC Constant Dollar Cash Flow Page 5 of 6

31 Somerset Creek xlsx TE: Somerset Creek Owners Association Reserve Study Projections at Reserve 30-YEAR SPREADSHEET PER YEAR EXPENSES IN 17-Apr MAINT. NEXT # COMPONENT NAME CYCLE MAINT. Recommended Funding of $169,000 Consultants LLC WITH CONSTANT DOLLARS 2018 DOLLARS Asphalt Paving - Seal Coat & Repair 6 5 $0 $0 $0 $40,170 $ Sports Court - Maintenance Fencing - Repair Tree - Maintenance 3 1 $0 $0 $5,160 $0 $ Site Fixtures - Repair Contingency Concrete Paving - Repair 7 2 $0 $0 $0 $0 $1, Exterior Siding & Trim - Repair Contingency Exterior Siding - Cleaning 4 5 $0 $0 $0 $5,300 $ Exterior Siding - Replace Gutters & Downspouts - Repair 7 5 $7,160 $0 $0 $0 $ Gutters & Downspouts - Replace Roofing - Repair 5 4 $0 $0 $0 $7,120 $ Roofing - Demoss 5 2 $0 $5,790 $0 $0 $ Roofing - Replace Phase Roofing - Replace Exterior Windows - Replace Exterior Paint - Maintenance Chimney Chases - Maintenance Signage - Replace 12 1 $0 $0 $0 $ Mailboxes - Replace Plumbing System - Repair Contingency Site Water - Repair Contingency Electrical System - Repair Contingency 5 3 $0 $0 $6,210 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE STUDY YEAR $7,160 $5,790 $11,370 $52,590 $1,470 $939,648 $1,031,488 $1,124,698 $1,212,328 $1,258,738 $99,000 $99,000 $99,000 $99,000 $99,000 $7,160 $5,790 $11,370 $52,590 $1,470 $1,031,488 $1,124,698 $1,212,328 $1,258,738 $1,356,268 $1,031,488 $1,124,698 $1,212,328 $1,258,738 $1,356, (2044 ) 27 (2045 ) 28 (2046 ) 29 (2047 ) 30 (2048 ) COPYRIGHT 2018 Reserve Consultants LLC Constant Dollar Cash Flow Page 6 of 6

32 Reserve Study Projections using Inflated Dollar Values Teal Line Graph: The year-end running reserve fund balance is shown as a line graph in teal and includes compound interest. Our recommended funding plan is a threshold funding plan which ensures that the reserve account balance does not dip below a designated threshold, which is set to at least $105,000. Mint Green Bars: The annual reserve fund contributions are shown as mint green bars. This chart depicts the annual contribution in inflated dollars, so the contributions are increasing over the 30 year timeline of the study, with exception of the anticipated contribution adjustment in Brick Red Bars: The anticipated yearly maintenance expenses are shown as brick red bars, depicting the anticipated inflated expenses over the next 30 years. Below is a graph depicting the projected fiscal year end running reserve fund balance over 30 years with interest, the annual inflated contribution and the anticipated yearly maintenance expenses using inflated dollar values. Somerset Creek Owners Association Reserve Study Projections at the Starting Recommended Funding of $169,000 Using Inflated Dollars $4,500,000 $4,000,000 $3,500,000 Reserve Fund Balance Contribution Maintenance Expenses $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $ YEARS 18

33 Reserve Study Projections at the Starting Recommended Funding of $169,000 Using Inflated Dollar Values 19

34 Somerset Creek xlsx Somerset Creek Owners Association Reserve Study Projections at Recommended Funding of $169,000 Reserve Consultants LLC 30-YEAR SPREADSHEET WITH INFLATED DOLLARS PER YEAR EXPENSES IN 2018 DOLLARS DATE: 17-Apr-18 MAINT. NEXT # COMPONENT NAME CYCLE MAINT Asphalt Paving - Seal Coat & Repair 6 5 $0 $0 $0 $0 $46, Sports Court - Maintenance 10 1 $5,315 $0 $0 $0 $ Fencing - Repair 6 1 $15,419 $0 $0 $0 $ Tree - Maintenance 3 1 $5,315 $0 $0 $5,808 $ Site Fixtures - Repair Contingency 10 2 $0 $6,588 $0 $0 $ Concrete Paving - Repair 7 2 $0 $1,560 $0 $0 $ Exterior Siding & Trim - Repair Contingency 8 1 $13,184 $0 $0 $0 $ Exterior Siding - Cleaning 4 5 $0 $0 $0 $0 $6, Exterior Siding - Replace Gutters & Downspouts - Repair 7 5 $0 $0 $0 $0 $8, Gutters & Downspouts - Replace Roofing - Repair 5 4 $0 $0 $0 $8,014 $ Roofing - Demoss 5 2 $0 $6,143 $0 $0 $ Roofing - Replace Phase Roofing - Replace Exterior Windows - Replace Exterior Paint - Maintenance 8 1 $17,026 $0 $0 $0 $ Chimney Chases - Maintenance Signage - Replace 12 1 $2,791 $0 $0 $0 $ Mailboxes - Replace 20 1 $13,287 $0 $0 $0 $ Plumbing System - Repair Contingency 10 5 $0 $0 $0 $0 $7, Site Water - Repair Contingency 10 4 $0 $0 $0 $13,956 $ Electrical System - Repair Contingency 5 3 $0 $0 $6,786 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR $72,337 $14,290 $6,786 $27,778 $68,212 CARRY OVER RESERVES $493,568 $601,069 $774,468 $964,189 $1,141,935 ANNUAL RESERVE CONTRIB $169,000 $174,070 $179,292 $184,671 $190,211 RESERVE EXPENDITURES $72,337 $14,290 $6,786 $27,778 $68,212 ACCUMULATED RESERVES $590,231 $760,849 $946,974 $1,121,082 $1,263,934 INTEREST EARNED $10,838 $13,619 $17,214 $20,853 $24,059 SPECIAL ASSESSMENT YEAR-END BALANCE $601,069 $774,468 $964,189 $1,141,935 $1,287,993 YEARS (2019 ) 2 (2020 ) 3 (2021 ) 4 (2022 ) 5 (2023 ) CONTRIBUTION INFLATION 0% 3% 4% 0% 3% 3% 3% 3% COMPONENT COMPOUND INFLATION 3% 3% 4% 103% 106% 109% 113% 116% INTEREST RATE MULTIPLIER 2% 2% 3% 2% 2% 2% 2% 2% COPYRIGHT 2018 Reserve Consultants LLC Inflated Dollar Cash Flow Page 1 of 6

35 Somerset Creek xlsx Somerset Creek Owners Association Reserve Study Projections at Recommended Funding of $169,000 Reserve Consultants LLC 30-YEAR SPREADSHEET WITH INFLATED DOLLARS PER YEAR EXPENSES IN 2018 DOLLARS DATE: 17-Apr-18 MAINT. NEXT # COMPONENT NAME CYCLE MAINT Asphalt Paving - Seal Coat & Repair Sports Court - Maintenance Fencing - Repair 6 1 $0 $18,411 $0 $0 $ Tree - Maintenance 3 1 $0 $6,346 $0 $0 $6, Site Fixtures - Repair Contingency Concrete Paving - Repair 7 2 $0 $0 $0 $1,918 $ Exterior Siding & Trim - Repair Contingency 8 1 $0 $0 $0 $16,701 $ Exterior Siding - Cleaning 4 5 $0 $0 $0 $6,915 $ Exterior Siding - Replace $0 $0 $0 $0 $1,719, Gutters & Downspouts - Repair Gutters & Downspouts - Replace Roofing - Repair 5 4 $0 $0 $0 $9,290 $ Roofing - Demoss 5 2 $0 $7,121 $0 $0 $ Roofing - Replace Phase Roofing - Replace Exterior Windows - Replace $0 $0 $0 $0 $450, Exterior Paint - Maintenance 8 1 $0 $0 $0 $21,568 $ Chimney Chases - Maintenance Signage - Replace Mailboxes - Replace Plumbing System - Repair Contingency Site Water - Repair Contingency Electrical System - Repair Contingency 5 3 $0 $0 $7,867 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE YEARS CONTRIBUTION INFLATION 0% 3% 4% COMPONENT COMPOUND INFLATION 3% 3% 4% INTEREST RATE MULTIPLIER 2% 2% 3% $0 $31,878 $7,867 $56,392 $2,177,131 $1,287,993 $1,511,629 $1,713,477 $1,949,729 $2,147,992 $195,917 $201,795 $207,849 $214,084 $220,507 $0 $31,878 $7,867 $56,392 $2,177,131 $1,483,910 $1,681,546 $1,913,459 $2,107,421 $191,368 $27,719 $31,932 $36,269 $40,571 $23,394 $1,511,629 $1,713,477 $1,949,729 $2,147,992 $214,761 6 (2024 ) 7 (2025 ) 8 (2026 ) 9 (2027 ) 10 (2028 ) 3% 3% 3% 3% 3% 119% 123% 127% 130% 134% 2% 2% 2% 2% 2% COPYRIGHT 2018 Reserve Consultants LLC Inflated Dollar Cash Flow Page 2 of 6

36 Somerset Creek xlsx Somerset Creek Owners Association Reserve Study Projections at Recommended Funding of $169,000 Reserve Consultants LLC 30-YEAR SPREADSHEET WITH INFLATED DOLLARS PER YEAR EXPENSES IN 2018 DOLLARS DATE: 17-Apr-18 MAINT. NEXT # COMPONENT NAME CYCLE MAINT Asphalt Paving - Seal Coat & Repair 6 5 $56,145 $0 $0 $0 $ Sports Court - Maintenance 10 1 $7,212 $0 $0 $0 $ Fencing - Repair 6 1 $0 $0 $22,630 $0 $ Tree - Maintenance 3 1 $0 $0 $7,800 $0 $ Site Fixtures - Repair Contingency 10 2 $0 $9,027 $0 $0 $ Concrete Paving - Repair Exterior Siding & Trim - Repair Contingency Exterior Siding - Cleaning 4 5 $0 $0 $8,012 $0 $ Exterior Siding - Replace Gutters & Downspouts - Repair 7 5 $0 $10,408 $0 $0 $ Gutters & Downspouts - Replace $0 $0 $0 $112,522 $ Roofing - Repair 5 4 $0 $0 $0 $11,194 $ Roofing - Demoss 5 2 $0 $8,416 $0 $0 $ Roofing - Replace Phase Roofing - Replace $0 $0 $0 $513,336 $ Exterior Windows - Replace Exterior Paint - Maintenance Chimney Chases - Maintenance $0 $0 $0 $108,874 $ Signage - Replace 12 1 $0 $0 $4,097 $0 $ Mailboxes - Replace Plumbing System - Repair Contingency 10 5 $0 $0 $0 $0 $10, Site Water - Repair Contingency 10 4 $0 $0 $0 $19,495 $ Electrical System - Repair Contingency 5 3 $0 $0 $9,388 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE YEARS CONTRIBUTION INFLATION 0% 3% 4% COMPONENT COMPOUND INFLATION 3% 3% 4% INTEREST RATE MULTIPLIER 2% 2% 3% $63,357 $27,851 $51,928 $765,422 $10,154 $214,761 $389,664 $541,271 $679,716 $105,113 $229,327 $165,700 $172,328 $179,221 $186,390 $63,357 $27,851 $51,928 $765,422 $10,154 $380,732 $527,513 $661,671 $93,515 $281,350 $8,932 $13,758 $18,044 $11,598 $5,797 $389,664 $541,271 $679,716 $105,113 $287, (2029 ) 12 (2030 ) 13 (2031 ) 14 (2032 ) 15 (2033 ) 4% 4% 4% 4% 4% 140% 145% 151% 157% 164% 3% 3% 3% 3% 3% COPYRIGHT 2018 Reserve Consultants LLC Inflated Dollar Cash Flow Page 3 of 6

37 Somerset Creek xlsx Somerset Creek Owners Association Reserve Study Projections at Recommended Funding of $169,000 Reserve Consultants LLC 30-YEAR SPREADSHEET WITH INFLATED DOLLARS PER YEAR EXPENSES IN 2018 DOLLARS DATE: 17-Apr-18 MAINT. NEXT # COMPONENT NAME CYCLE MAINT Asphalt Paving - Seal Coat & Repair 6 5 $0 $71,041 $0 $0 $ Sports Court - Maintenance Fencing - Repair 6 1 $0 $0 $0 $28,635 $ Tree - Maintenance 3 1 $8,774 $0 $0 $9,870 $ Site Fixtures - Repair Contingency Concrete Paving - Repair 7 2 $2,500 $0 $0 $0 $ Exterior Siding & Trim - Repair Contingency 8 1 $0 $22,637 $0 $0 $ Exterior Siding - Cleaning 4 5 $0 $9,373 $0 $0 $ Exterior Siding - Replace Gutters & Downspouts - Repair 7 5 $0 $0 $0 $13,696 $ Gutters & Downspouts - Replace Roofing - Repair 5 4 $0 $0 $0 $13,619 $ Roofing - Demoss 5 2 $0 $10,240 $0 $0 $ Roofing - Replace Phase Roofing - Replace Exterior Windows - Replace Exterior Paint - Maintenance 8 1 $0 $29,233 $0 $0 $ Chimney Chases - Maintenance Signage - Replace Mailboxes - Replace Plumbing System - Repair Contingency Site Water - Repair Contingency Electrical System - Repair Contingency 5 3 $0 $0 $11,422 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE YEARS CONTRIBUTION INFLATION 0% 3% 4% COMPONENT COMPOUND INFLATION 3% 3% 4% INTEREST RATE MULTIPLIER 2% 2% 3% $0 $15,952 $0 $0 $0 $11,274 $158,475 $11,422 $65,820 $0 $287,147 $481,071 $539,274 $756,667 $933,881 $193,846 $201,599 $209,663 $218,050 $226,772 $11,274 $158,475 $11,422 $65,820 $0 $469,718 $524,195 $737,515 $908,897 $1,160,653 $11,353 $15,079 $19,152 $24,983 $31,418 $481,071 $539,274 $756,667 $933,881 $1,192, (2034 ) 17 (2035 ) 18 (2036 ) 19 (2037 ) 20 (2038 ) 4% 4% 4% 4% 4% 170% 177% 184% 191% 199% 3% 3% 3% 3% 3% COPYRIGHT 2018 Reserve Consultants LLC Inflated Dollar Cash Flow Page 4 of 6

38 Somerset Creek xlsx Somerset Creek Owners Association Reserve Study Projections at Recommended Funding of $169,000 Reserve Consultants LLC 30-YEAR SPREADSHEET WITH INFLATED DOLLARS PER YEAR EXPENSES IN 2018 DOLLARS DATE: 17-Apr-18 MAINT. NEXT # COMPONENT NAME CYCLE MAINT Asphalt Paving - Seal Coat & Repair 6 5 $0 $0 $89,889 $0 $ Sports Court - Maintenance 10 1 $10,676 $0 $0 $0 $ Fencing - Repair 6 1 $0 $0 $0 $0 $36, Tree - Maintenance 3 1 $0 $11,103 $0 $0 $12, Site Fixtures - Repair Contingency 10 2 $0 $13,362 $0 $0 $ Concrete Paving - Repair 7 2 $0 $0 $3,289 $0 $ Exterior Siding & Trim - Repair Contingency 8 1 $0 $0 $0 $0 $30, Exterior Siding - Cleaning 4 5 $10,965 $0 $0 $0 $12, Exterior Siding - Replace Gutters & Downspouts - Repair Gutters & Downspouts - Replace Roofing - Repair 5 4 $0 $0 $0 $16,570 $ Roofing - Demoss 5 2 $0 $12,458 $0 $0 $ Roofing - Replace Phase $0 $0 $0 $69,398 $ Roofing - Replace Exterior Windows - Replace Exterior Paint - Maintenance 8 1 $0 $0 $0 $0 $40, Chimney Chases - Maintenance Signage - Replace 12 1 $0 $0 $0 $0 $6, Mailboxes - Replace 20 1 $26,689 $0 $0 $0 $ Plumbing System - Repair Contingency 10 5 $0 $0 $0 $0 $15, Site Water - Repair Contingency 10 4 $0 $0 $0 $28,858 $ Electrical System - Repair Contingency 5 3 $0 $0 $13,896 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE YEARS CONTRIBUTION INFLATION 0% 3% 4% COMPONENT COMPOUND INFLATION 3% 3% 4% INTEREST RATE MULTIPLIER 2% 2% 3% $48,329 $36,922 $107,075 $114,825 $154,126 $1,192,071 $1,418,159 $1,672,183 $1,872,581 $2,081,482 $235,843 $245,276 $255,088 $265,291 $275,903 $48,329 $36,922 $107,075 $114,825 $154,126 $1,379,584 $1,626,513 $1,820,196 $2,023,047 $2,203,258 $38,575 $45,670 $52,386 $58,434 $64,271 $1,418,159 $1,672,183 $1,872,581 $2,081,482 $2,267, (2039 ) 22 (2040 ) 23 (2041 ) 24 (2042 ) 25 (2043 ) 4% 4% 4% 4% 4% 207% 215% 224% 233% 242% 3% 3% 3% 3% 3% COPYRIGHT 2018 Reserve Consultants LLC Inflated Dollar Cash Flow Page 5 of 6

39 Somerset Creek xlsx Somerset Creek Owners Association Reserve Study Projections at Recommended Funding of $169,000 Reserve Consultants LLC 30-YEAR SPREADSHEET WITH INFLATED DOLLARS PER YEAR EXPENSES IN 2018 DOLLARS DATE: 17-Apr-18 MAINT. NEXT # COMPONENT NAME CYCLE MAINT Asphalt Paving - Seal Coat & Repair 6 5 $0 $0 $0 $113,739 $ Sports Court - Maintenance Fencing - Repair Tree - Maintenance 3 1 $0 $0 $14,048 $0 $ Site Fixtures - Repair Contingency Concrete Paving - Repair 7 2 $0 $0 $0 $0 $4, Exterior Siding & Trim - Repair Contingency Exterior Siding - Cleaning 4 5 $0 $0 $0 $15,007 $ Exterior Siding - Replace Gutters & Downspouts - Repair 7 5 $18,023 $0 $0 $0 $ Gutters & Downspouts - Replace Roofing - Repair 5 4 $0 $0 $0 $20,160 $ Roofing - Demoss 5 2 $0 $15,157 $0 $0 $ Roofing - Replace Phase Roofing - Replace Exterior Windows - Replace Exterior Paint - Maintenance Chimney Chases - Maintenance Signage - Replace Mailboxes - Replace Plumbing System - Repair Contingency Site Water - Repair Contingency Electrical System - Repair Contingency 5 3 $0 $0 $16,907 $0 $ Exterior Lighting - Replace TOTAL EXPENDED BY YEAR CARRY OVER RESERVES ANNUAL RESERVE CONTRIB RESERVE EXPENDITURES ACCUMULATED RESERVES INTEREST EARNED SPECIAL ASSESSMENT YEAR-END BALANCE YEARS CONTRIBUTION INFLATION 0% 3% 4% COMPONENT COMPOUND INFLATION 3% 3% 4% INTEREST RATE MULTIPLIER 2% 2% 3% $18,023 $15,157 $30,955 $148,905 $4,329 $2,267,530 $2,608,505 $2,974,269 $3,347,085 $3,623,968 $286,939 $298,416 $310,353 $322,767 $335,678 $18,023 $15,157 $30,955 $148,905 $4,329 $2,536,446 $2,891,765 $3,253,666 $3,520,948 $3,955,317 $72,060 $82,504 $93,419 $103,020 $113,689 $2,608,505 $2,974,269 $3,347,085 $3,623,968 $4,069, (2044 ) 27 (2045 ) 28 (2046 ) 29 (2047 ) 30 (2048 ) 4% 4% 4% 4% 4% 252% 262% 272% 283% 294% 3% 3% 3% 3% 3% COPYRIGHT 2018 Reserve Consultants LLC Inflated Dollar Cash Flow Page 6 of 6

40 30 Year Summary at the Recommended Starting Funding of $169,000 Using Inflated Dollar Values Fiscal Year End Inflation & Interest Assumptions Percent Funded Inflation Interest Fully Funded f 100% and above Years 0-1 0% 2% Well Funded w 60% 99% Years % 2% Adequately Funded a 25% to 59% Years % 3% At Risk for Special Assessment r 0% to 24% Fiscal Year Beginning Reserve Balance Recommended Annual Reserve Contribution Projected Reserve Expenditures Special Assessment Projected Interest Earned Fiscal Year End Reserve Balance Projected Fully Funded Balance % Funded 1 (2019) $493,568 $169,000 ($72,337) $0 $10,838 $601,069 $1,526,921 a 39% 2 (2020) $601,069 $174,070 ($14,290) $0 $13,619 $774,468 $1,646,955 a 47% 3 (2021) $774,468 $179,292 ($6,786) $0 $17,214 $964,189 $1,780,519 a 54% 4 (2022) $964,189 $184,671 ($27,778) $0 $20,853 $1,141,935 $1,900,432 w 60% 5 (2023) $1,141,935 $190,211 ($68,212) $0 $24,059 $1,287,993 $1,987,491 w 65% 6 (2024) $1,287,993 $195,917 ($0) $0 $27,719 $1,511,629 $2,146,273 w 70% 7 (2025) $1,511,629 $201,795 ($31,878) $0 $31,932 $1,713,477 $2,281,845 w 75% 8 (2026) $1,713,477 $207,849 ($7,867) $0 $36,269 $1,949,729 $2,447,859 w 80% 9 (2027) $1,949,729 $214,084 ($56,392) $0 $40,571 $2,147,992 $2,574,898 w 83% 10 (2028) $2,147,992 $220,507 ($2,177,131) $0 $23,394 $214,761 $650,029 a 33% 11 (2029) $214,761 $229,327 ($63,357) $0 $8,932 $389,664 $730,586 a 53% 12 (2030) $389,664 $165,700 ($27,851) $0 $13,758 $541,271 $853,481 w 63% 13 (2031) $541,271 $172,328 ($51,928) $0 $18,044 $679,716 $962,743 w 71% 14 (2032) $679,716 $179,221 ($765,422) $0 $11,598 $105,113 $388,685 a 27% 15 (2033) $105,113 $186,390 ($10,154) $0 $5,797 $287,147 $530,157 a 54% 16 (2034) $287,147 $193,846 ($11,274) $0 $11,353 $481,071 $681,631 w 71% 17 (2035) $481,071 $201,599 ($158,475) $0 $15,079 $539,274 $701,899 w 77% 18 (2036) $539,274 $209,663 ($11,422) $0 $19,152 $756,667 $871,623 w 87% 19 (2037) $756,667 $218,050 ($65,820) $0 $24,983 $933,881 $1,001,432 w 93% 20 (2038) $933,881 $226,772 ($0) $0 $31,418 $1,192,071 $1,206,689 w 99% 21 (2039) $1,192,071 $235,843 ($48,329) $0 $38,575 $1,418,159 $1,379,843 f 103% 22 (2040) $1,418,159 $245,276 ($36,922) $0 $45,670 $1,672,183 $1,577,871 f 106% 23 (2041) $1,672,183 $255,088 ($107,075) $0 $52,386 $1,872,581 $1,722,857 f 109% 24 (2042) $1,872,581 $265,291 ($114,825) $0 $58,434 $2,081,482 $1,873,551 f 111% 25 (2043) $2,081,482 $275,903 ($154,126) $0 $64,271 $2,267,530 $1,999,848 f 113% 26 (2044) $2,267,530 $286,939 ($18,023) $0 $72,060 $2,608,505 $2,271,375 f 115% 27 (2045) $2,608,505 $298,416 ($15,157) $0 $82,504 $2,974,269 $2,564,907 f 116% 28 (2046) $2,974,269 $310,353 ($30,955) $0 $93,419 $3,347,085 $2,863,538 f 117% 29 (2047) $3,347,085 $322,767 ($148,905) $0 $103,020 $3,623,968 $3,068,643 f 118% 30 (2048) $3,623,968 $335,678 ($4,329) $0 $113,689 $4,069,007 $3,431,723 f 119% Note: The long term nature of this study requires that certain assumptions and predictions be made about future events. Since there can be no guarantee that these future events will occur as assumed, this analysis must be viewed in light of the circumstances under which it was conducted. Reasonable effort has been made to ensure that the conclusions of this report are based on reliable information and sound reasoning. 20

41 FULLY FUNDED BALANCE CALCULATIONS RCW (2)(j) states that a reserve study shall include: Projected reserve account balance for thirty years and a funding plan to pay for projected costs from those reserves without reliance on future unplanned special assessments. Furthermore, RCW (2)(e) stipulates that a reserve study shall include The percentage of the fully funded balance that the reserve account is funded. "Fully funded balance" means the current value of the deteriorated portion, not the total replacement value, of all the reserve components. The fully funded balance for each reserve component is calculated by multiplying the current replacement cost of that reserve component by its effective age, then dividing the result by that reserve component's useful life. The sum total of all reserve components' fully funded balances is the association's fully funded balance, as defined by RCW (22). The percent fully funded relates to how much the building has deteriorated, or been used up, compared to the cost of making it new again. Another way of thinking of this is the percent fully funded illustrates how much you should have saved thus far to pay for the future replacement of a component, based on the replacement cost and how many years you have to save. Example of how it works: A Roof Replacement SCENARIO If you have a roof that will last 10 years and cost $100,000 to replace: To pay for the future replacement in 10 years, you should save $10,000 each year to have enough money to cover the replacement cost. When it is 2 years old, it is 20% used up, and the Fully Funded Balance for its future replacement is $20,000. If you have saved $10,000 for the future replacement in 2 years, you are 50% fully funded. If you have saved $20,000, you are 100% fully funded. When the roof is 8 years old it will be 80% deteriorated, and its Fully Funded Balance would be $80,000. If you have saved only $10,000 by Year 8 you are 13% fully funded. If you have saved $20,000, you are at 25%, and at $80,000 you are at 100% fully funded. ANALYSIS A. In effect, the percent fully funded is a measure of how well an association can withstand the risk of unexpected expenses. Such unexpected expenses include: emergency expenses not covered by insurance, expenses that are higher than predicted, and expenses that are required earlier than anticipated. B. A higher percent funded means more money is in the bank, and that lowers the risk of special assessment when unexpected expenses occur. A poorly funded association would have less money available for unexpected expenses, and a higher risk of a special assessment to generate the needed funds. C. By looking at cash flow demands we are able to determine how much money is needed to fund anticipated replacement and maintenance of the reserve components and recommend a steady contribution over the 30 year span of the study. Budgeting to maintain a minimum balance, or threshold, helps to ensure that a special assessment will not be required if an unexpected expense arises. 21

42 We typically recommend that an association select a minimum reserve account balance (or Threshold) it wants to maintain and select a contribution rate to maintain that minimum rather than try to build their account to 100% fully funded. We usually recommend that an association consider a threshold equal to the recommended annual reserve contribution because this is the average maintenance expense over the thirty years. However, each association must judge their unique risk tolerance. The Fully Funded Balance for Somerset Creek is $1,512,941. The actual current funding is $412,523. The Association is approximately 27% funded. This means that based on a straight line savings for each reserve component, the Association saved 27% of the accumulated depreciation of the reserve components. At 27%, Somerset Creek is considered adequately funded. % Funded Considered 100% + Fully Funded 60% to 99% Reasonably Well Funded 25% to 59% Adequately Funded 24% or less At High Risk for a Special Assessment Below is a graph with the current and projected year-end percent fully funded calculated at the recommended starting annual reserve contribution of $169,000. Somerset Creek Owners Association Current & Projected Year-End Percent Fully Funded Graph at Recommended Funding % 35% % 40% % 46% % 53% % 61% 04/ % 73% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Projected Reserve Balance % Unfunded Balance % 22

43 The following chart illustrates the projected percent funded at year end over the next 30 years at the recommended starting contribution rate of $169,000. The values include interest and inflation rate assumptions, planned and recommended special assessments, and the anticipated contribution adjustment in % Somerset Creek Owners Association Inflated Percent Funded at Year End Over 30 Years at the Recommended Starting Contribution of $169, % 100% 80% 60% 40% 20% 0% 23

44 FULLY FUNDED BALANCE CALCULATION TABLE 24

45 Fully Funded Balance Calculations Somerset Creek Owners Association Component Description Quantity Unit Maintenance Cycle (Useful Life) Remaining Useful Life Effective Age Current Replacement Cost Fully Funded Balance Asphalt Paving - Seal Coat & Repair SF $40,170 $6, Sports Court - Maintenance 1 LS $5,160 $4, Fencing - Repair 3150 LF $14,970 $12, Tree - Maintenance 1 LS $5,160 $3, Site Fixtures - Repair Contingency 1 LS $6,210 $4, Concrete Paving - Repair 3840 SF $1,470 $1, Exterior Siding & Trim - Repair Contingency SF $12,800 $11, Exterior Siding - Cleaning SF $5,300 $ Exterior Siding - Replace SF $1,279,820 $959, Gutters & Downspouts - Repair LF $7,160 $2, Gutters & Downspouts - Replace LF $71,570 $31, Roofing - Repair 920 SQ $7,120 $1, Roofing - Demoss 920 SQ $5,790 $3, Roofing - Replace Phase 1 77 SQ $29,820 $1, Roofing - Replace 843 SQ $326,510 $143, Exterior Windows - Replace 6885 SF $335,010 $251, Exterior Paint - Maintenance 51 UNITS $16,530 $14, Chimney Chases - Maintenance 51 EA $69,250 $30, Signage - Replace 1 LS $2,710 $2, Mailboxes - Replace 12 EA $12,900 $12, Plumbing System - Repair Contingency 1 LS $6,210 $3, Site Water - Repair Contingency 1 LS $12,400 $7, Electrical System - Repair Contingency 12 BLDG $6,210 $2, Exterior Lighting - Replace 128 FIXT $9,020 $1,353 FULLY FUNDED BALANCE Total $1,512,941 CURRENT RESERVE BALANCE = $412,523 PERCENT FULLY FUNDED = 27% April 17, 2018 ABBREVIATION KEY EA each LF linear foot SQ roofing square BLDG building(s) LS lump sum SY square yard FIXT fixture(s) SF square feet ZN zone

46 SUPPLEMENTAL BUDGET INFORMATION (SBI) RCW states that within thirty days after adoption of any proposed budget for the condominium, the board of directors shall provide a summary of the budget to all the unit owners and shall set a date for a meeting of the unit owners to consider ratification of the budget not less than fourteen nor more than sixty days after mailing of the summary. As part of the summary of the budget to all owners, the board of directors shall disclose the supplemental budget information as outlined in RCW section (4), which we refer to as the Supplemental Budget Information (SBI). Below is a sample of the SBI we will compile when the association is ready to provide a summary of the budget to the unit owners. Please contact RCL one week before the Association plans on sending the budget summary to unit owners and we will issue a completed SBI at no additional charge within one year of issuing the draft of the reserve study report. 25

VILLAGE AT LAKE CHELAN

VILLAGE AT LAKE CHELAN VILLAGE AT LAKE CHELAN Manson, Washington STANDARD LEVEL 3 RESERVE STUDY UPDATE WITHOUT A SITE VISIT With funding recommendations for the 2019 fiscal year Issued October, 2018 Next Update: Level 3 by October,

More information

Level 3 Reserve Study without a Site a Site Visit Visit

Level 3 Reserve Study without a Site a Site Visit Visit Level 3 Reserve Study without a Site a Site Visit Visit We offer two types of reports for a Level 3 Reserve Study with a Site Visit, RS-3 - Standard Reserve Study without a site visit SMRS-3 - Statutory

More information

CAPE GEORGE COLONY CLUB MARINA RESERVES

CAPE GEORGE COLONY CLUB MARINA RESERVES CAPE GEORGE COLONY CLUB MARINA RESERVES Port Townsend, Washington STANDARD LEVEL 3 RESERVE STUDY UPDATE WITHOUT A SITE VISIT With funding recommendations for the 2019 fiscal year Issued October, 2018 Next

More information

FIR RIDGE II CONDOMINIUM

FIR RIDGE II CONDOMINIUM FIR RIDGE II CONDOMINIUM BELLINGHAM, WASHINGTON UPDATE WITHOUT SITE VISIT FEBRUARY 2014 FOR USE WITH THE FEBRUARY 2012 RESERVE STUDY PREPARED BY: DENISE DANA, RESERVE SPECIALIST M. ARCH, REGISTERED ARCHITECT

More information

Level 3 Reserve Study without a Site a Site Visit Visit

Level 3 Reserve Study without a Site a Site Visit Visit Level 3 Reserve Study without a Site a Site Visit Visit We offer two types of reports for a Level 3 Reserve Study with a Site Visit, RS-3 - Standard Reserve Study without a site visit SMRS-3 - Statutory

More information

Update With Site Visit

Update With Site Visit Update With Site Visit Le Chateau Bellevue, WA 10/28/2011 Report #1002 Phone: 253-241-8151 Fax: 360-872-8073 E-mail: jeremy@reservesolutions.net www.reservesolutions.net Le Chateau Client Info: REPORT

More information

CAPITAL RESERVE STUDY. Meadow Wood Commons. City, State

CAPITAL RESERVE STUDY. Meadow Wood Commons. City, State CAPITAL RESERVE STUDY FOR THE Meadow Wood Commons City, State Management Company: Any Management Company Contact Name: Mr. Bob Smith Date: July 28, 2014 Table of Contents Section Name Section # Executive

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY LEVEL 3 UPDATE Tamarack Village 10701 to 10798-221 st Lane NE, Redmond, WA 98053 For: Tamrack Village Homeowners Association c/o Tim Ambre, Property Manager econdoservices 1500-112

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY LEVEL 3 UPDATE Bridgewood Estates 2500 Jahn Avenue Northwest, Gig Harbor, WA 98335 For: Bridgewood Estates Homeowners Association c/o Juanita Carbaugh, Property Manager HOA Community

More information

Reserve Analysis Report

Reserve Analysis Report Reserve Analysis Report Soda Creek Condominiums Dillon, Colorado Version 2 Monday, August 19, 2013 6860 S. Yosemite Court, Suite 2000 Centennial, CO 80112 Phone (303) 953-2078 Facsimile (303) 953-2157

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Tamarack Village 10701 to 10798-221 st Lane NE, Redmond, WA 98053 For: Tamrack Village Homeowners Association c/o Tim Ambre, Property Manager econdoservices 1500-112 th Ave NE

More information

REPLACEMENT RESERVE REPORT FY 2010 WOODWIND ASSOCIATION. N & H Enterprises MILLER ~ DODSON ASSOCIATES. Community Management by:

REPLACEMENT RESERVE REPORT FY 2010 WOODWIND ASSOCIATION. N & H Enterprises MILLER ~ DODSON ASSOCIATES. Community Management by: REPLACEMENT RESERVE REPORT FY 2010 WOODWIND ASSOCIATION WOODWIND ASSOCIATION REPLACEMENT RESERVE REPORT FY 2010 Community Management by: N & H Enterprises PO Box 5539 Greenville, SC 29607 864-467-1600

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Tamarack Village 10701 to 10798-221 st Lane NE, Redmond, WA 98053 For: Tamrack Village Homeowners Association c/o Jason Kozleski Board President 10790-221 st Lane NE Redmond,

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Licorice Fern II Homeowners Association 16880 SE Licorice Way, Renton, WA 98059 For: Licorice Fern II Homeowners Association c/o Ann Hart, Property Manager Pinnacle 2801 Alaskan

More information

What are Capital Reserves?

What are Capital Reserves? Capital Reserves What are Capital Reserves? A separate account set up by the Association to fund large, non-annual repairs Stormwater pond repair, dredging and drainage improvements Fence repair, retaining

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Cambridge Court 9512-1 st Avenue Northeast, Seattle, WA 98115 For: Cambridge Court Homeowners Association c/o Tim Kammer, Property Manager Condo Managements, Inc. 1661 Harbor

More information

NEWTON PARISH REPLACEMENT RESERVE REPORT 2008 REPLACEMENT RESERVE REPORT FY CAS, Inc MILLER ~ DODSON ASSOCIATES. Community Management by:

NEWTON PARISH REPLACEMENT RESERVE REPORT 2008 REPLACEMENT RESERVE REPORT FY CAS, Inc MILLER ~ DODSON ASSOCIATES. Community Management by: REPLACEMENT RESERVE REPORT 2008 NEWTON PARISH NEWTON PARISH REPLACEMENT RESERVE REPORT FY 2008 Community Management by: CAS, Inc Mr. Dan Quartermane 1930 N. Salem Street, Suite 101 Apex, NC 27523 919-367-7711

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Heritage Park 3208-52 nd Place NE, Tacoma, WA 98422 For: Heritage Park Homeowners Association c/o Juanita Carbaugh, Property Manager HOA Community Solutions 5500 Olympic Drive,

More information

Reserve Analysis Report

Reserve Analysis Report Reserve Analysis Report Sample Condominium Association Laguna Hills, California Version 1 March 31, 2004 23201 Mill Creek Drive, Suite 100 Laguna Hills, California 92653 Phone (949) 474-9800 Facsimile

More information

- RS. D e sig n atio n

- RS. D e sig n atio n ALEXANDER LIU CAI - RS Reserve D e sig n atio n Specialist Sample Table Of HOA Contents Project Table of Contents Page Preface i Executive Summary 1 Membership Disclosure Summary 2 Disclosure Statement

More information

DRAFT CAPITAL RESERVE STUDY. The Piano Works Condominium Association. Deep River, Connecticut FOR THE. Project Number:

DRAFT CAPITAL RESERVE STUDY. The Piano Works Condominium Association. Deep River, Connecticut FOR THE. Project Number: CAPITAL RESERVE STUDY DRAFT FOR THE Management Company: Sound Real Estate Services, Contact Name: Josh Parsons Date: August 22, 2016 Table of Contents Section Name Section # Executive Summary... 1 Reserve

More information

Brookwood Homeowners Association, Inc.

Brookwood Homeowners Association, Inc. RESERVE STUDY Full Study Brookwood Homeowners Association, Inc. Published - February 05, 2013 Browning Reserve Group / Emmett, ID 83617 Office (208) 365-0977 Tony@BrowningRG.com / www.browningrg.com Browning

More information

CAPITAL RESERVE STUDY

CAPITAL RESERVE STUDY CAPITAL RESERVE STUDY FOR THE HIALEAH CONDOMINIUM WILDWOOD CREST, NEW JERSEY Project Number: 12-1066 W:\2012\12-1066\CORR\12-1066v1.doc Date: March 29, 2013 Table of Contents Section Page Executive Summary...

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Cascara at Redmond Ridge NE 112 th Place & Eastridge Drive NE, Redmond, WA 98052 For: Cascara at Redmond Ridge Homeowners Association c/o Luiza Limona Morris Management 325-118

More information

REPLACEMENT RESERVE REPORT FY 2016

REPLACEMENT RESERVE REPORT FY 2016 REPLACEMENT RESERVE REPORT FY 2016 VILLAS AT PARKWOOD ESTATES VILLAS AT PARKWOOD ESTATES REPLACEMENT RESERVE REPORT FY 2016 Community Management by: Community Management Professionals, LLC Beth Maurer

More information

Indian Peaks Townhomes 95 th Street Lafayette, CO 80026

Indian Peaks Townhomes 95 th Street Lafayette, CO 80026 Indian Peaks Townhomes 95 th Street Lafayette, CO 80026 Level 2, Premium Reserve Analysis Report Period 01/01/16 12/31/16 Client Reference Number - 4080 Property Type Townhome Development Number of Units

More information

Sea le, WA Account SAMPLE CONDO Version SAMPLE January 01, Bellevue Way NE, #483 Bellevue, WA

Sea le, WA Account SAMPLE CONDO Version SAMPLE January 01, Bellevue Way NE, #483 Bellevue, WA Sea le, WA Account SAMPLE CONDO Version SAMPLE January 01, 2017 227 Bellevue Way NE, #483 Bellevue, WA 98004 866 574 5115 www.rdanorthwest.com Prepared By Quality Check By Page 1 Disclosures Reserve Study

More information

REPLACEMENT RESERVE REPORT FY 2015 WOODBRIDGE CONDOMINIUM CHESAPEAKE BAY MANAGEMENT. Community Management by: Ms. Kimberly Marston

REPLACEMENT RESERVE REPORT FY 2015 WOODBRIDGE CONDOMINIUM CHESAPEAKE BAY MANAGEMENT. Community Management by: Ms. Kimberly Marston REPLACEMENT RESERVE REPORT FY 2015 WOODBRIDGE CONDOMINIUM WOODBRIDGE CONDOMINIUM REPLACEMENT RESERVE REPORT FY 2015 Community Management by: CHESAPEAKE BAY MANAGEMENT Ms. Kimberly Marston 100 Volvo Parkway,

More information

Reserve Analysis Report

Reserve Analysis Report Reserve Analysis Report Park Avenue 244 Quari St Denver, CO Level II Study with Site Inspection Fiscal Year End Date: 12/31/2016 Phone: 858-764-1895 Fax: 800-436-3816 brian@mccafferyreserveconsulting.com

More information

CONTENTS. Greens at Lochmere Cary, NC

CONTENTS. Greens at Lochmere Cary, NC CONTENTS 1.0 INTRODUCTION... 1 2.0 EXECUTIVE SUMMARY... 2 3.0 PURPOSE & SCOPE... 3 3.1 PURPOSE... 3 3.2 SCOPE... 3 3.3 SOURCES OF INFORMATION... 4 4.0 DESCRIPTION... 6 5.0 OBSERVATIONS... 6 6.0 RESERVE

More information

Initial Capital Reserve Funding Information provided by the Association and agreed Forecasting Assumptions

Initial Capital Reserve Funding Information provided by the Association and agreed Forecasting Assumptions Initial Capital Reserve Funding Information provided by the Association and agreed Forecasting Assumptions 1 Organization: Highlands Condominium Association 2 Address: Spokane, WA 3 Number of Units 46

More information

RESERVESTUDYUPDATE. The Villas at Blackberry Run Dallas, GA. Prepared for:

RESERVESTUDYUPDATE. The Villas at Blackberry Run Dallas, GA. Prepared for: RESERVESTUDYUPDATE Dallas, GA Prepared for: THE VILLAS AT BLACKBERRY RUN HOME OWNERS ASSOCIATION, INC. Carl Swanson-President Prepared by: CRITERIUM-CARUSO ENGINEERS 1065 POWERS PLACE, SUITE B ALPHARETTA,

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Raft Island Homeowners Association 200 Raft Island Drive Northwest, Gig Harbor, WA 98335 For: Raft Island Homeowners Association c/o Juanita Carbaugh, Property Manager P.O. Box

More information

RESERVE STUDY ANNUAL REPORT

RESERVE STUDY ANNUAL REPORT RESERVE STUDY ANNUAL REPORT PINELOCH SUN BEACH CLUB LEVEL III RESERVE STUDY UPDATE WITHOUT SITE VISIT Ronald, WA 98940 Report #50510500R FINANCIAL YEAR 01.2016 12.2016 701 Fifth Ave, Suite 4200, Seattle

More information

2014 Reserve Study. The Bear Creek Crossing Owner's Association, Inc. Bear Haven Way Sevierville, Tennessee Report No: 2921 Version 2

2014 Reserve Study. The Bear Creek Crossing Owner's Association, Inc. Bear Haven Way Sevierville, Tennessee Report No: 2921 Version 2 2014 Reserve Study The Bear Creek Crossing Owner's Association, Inc. Bear Haven Way Sevierville, Tennessee 37862 Report No: 2921 Version 2 For the Period From: January 1, 2014 To: December 31, 2014 TABLE

More information

REPLACEMENT RESERVE REPORT FY 2011 VILLAGE GREEN HOA. Ravenel Associates, Inc. Community Management by: Chad Hammond, Property Manager

REPLACEMENT RESERVE REPORT FY 2011 VILLAGE GREEN HOA. Ravenel Associates, Inc. Community Management by: Chad Hammond, Property Manager REPLACEMENT RESERVE REPORT FY 2011 VILLAGE GREEN HOA VILLAGE GREEN HOA REPLACEMENT RESERVE REPORT FY 2011 Community Management by: Ravenel Associates, Inc. Chad Hammond, Property Manager 3690 Bohicket

More information

Central Pointe HOA. Level I Reserve Study. Report Period 1/01/08 12/31/08

Central Pointe HOA. Level I Reserve Study. Report Period 1/01/08 12/31/08 Central Pointe HOA Level I Reserve Study Report Period 1/01/08 12/31/08 Client Reference Number.... 10870 Property Type...... Mid-Rise Number of Units............ 83 Fiscal Year End....... December 31

More information

Depreciation Report Level I

Depreciation Report Level I Depreciation Report Level I Prepared for Strata VIS 2720 s 2013 Fiscal Year Prepared by RBC STRATA CONSULTING LTD. Version 3.1 2014 RBC STRATA CONSULTING LTD. Have questions about this Depreciation Report.

More information

CONTENTS. Sparger Springs Townhomes Durham, NC

CONTENTS. Sparger Springs Townhomes Durham, NC CONTENTS 1.0 INTRODUCTION... 1 2.0 EXECUTIVE SUMMARY... 2 3.0 PURPOSE & SCOPE... 3 3.1 PURPOSE... 3 3.2 SCOPE... 3 3.3 SOURCES OF INFORMATION... 4 4.0 DESCRIPTION... 5 5.0 OBSERVATIONS... 6 6.0 RESERVE

More information

MILL CREEK CONDOMINIUMS RESERVE STUDY

MILL CREEK CONDOMINIUMS RESERVE STUDY MILL CREEK CONDOMINIUMS RESERVE STUDY Fiscal Year 2016 Prepared by: Eric Harker, Assoc. AIA Alliance Project Engineers and Construction Consultants November 6, 2015 Project Number: OR14-017 MILL CREEK

More information

Cottonwoods at Vine. Reserve Study. October 2012

Cottonwoods at Vine. Reserve Study. October 2012 Reserve Study October 2012 Tab Table of Contents Reserve Study Analysis Executive Summary... Remaining Useful Life Analysis... Reserve Study Schedule... Annual Expenditures... Funding Plan Summary... Percentage

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Seavue Condominiums 130-5 th Avenue South, Edmonds, WA 98020 For: Seavue Homeowners Association c/o Jay Grant Board President (202) 351-9399 Prepared By: Jeff Samdal, PE, RS,

More information

CONTENTS. Twisted Creek Townhomes Holly Springs, NC

CONTENTS. Twisted Creek Townhomes Holly Springs, NC CONTENTS 1.0 INTRODUCTION... 1 2.0 EXECUTIVE SUMMARY... 2 3.0 PURPOSE & SCOPE... 3 3.1 PURPOSE... 3 3.2 SCOPE... 3 3.3 SOURCES OF INFORMATION... 4 4.0 DESCRIPTION... 5 5.0 OBSERVATIONS... 6 6.0 RESERVE

More information

DRAFT FOR BOARD REVIEW. Prepared for: SPARGER SPRINGS TOWNHOME OWNER S ASSOCIATION & ALLENTON MANAGEMENT. Prepared by:

DRAFT FOR BOARD REVIEW. Prepared for: SPARGER SPRINGS TOWNHOME OWNER S ASSOCIATION & ALLENTON MANAGEMENT. Prepared by: DRAFT FOR BOARD REVIEW FULL RESERVE STUDY SPARGER SPRINGS TOWNHOMES DURHAM, NC Prepared for: SPARGER SPRINGS TOWNHOME OWNER S ASSOCIATION DURHAM, NC & ALLENTON MANAGEMENT Prepared by: CRITERIUM GILES ENGINEERS

More information

REPLACEMENT RESERVE REPORT FY 2017 CAMDEN TOWNES ROCKTOWN REALTY. Community Management by: Bernard Hamann

REPLACEMENT RESERVE REPORT FY 2017 CAMDEN TOWNES ROCKTOWN REALTY. Community Management by: Bernard Hamann REPLACEMENT RESERVE REPORT FY 2017 CAMDEN TOWNES REPLACEMENT RESERVE REPORT FY 2017 CAMDEN TOWNES Community Management by: ROCKTOWN REALTY Bernard Hamann 218 Market Street Harrisonburg, VA 22801 40-70-7080

More information

HUDSON PARK ESTATES HOMEOWNERS ASSOCIATION HUDSON, OHIO

HUDSON PARK ESTATES HOMEOWNERS ASSOCIATION HUDSON, OHIO RESERVE FUND STUDY HUDSON PARK ESTATES HOMEOWNERS ASSOCIATION HUDSON, OHIO Criterium Liszkay Engineers 110 N. High St. Gahanna, OH 43230 614-418-7200 www.clengineers.com AUGUST 2016 CONTENTS 1.0 INTRODUCTION...

More information

TIMBERLAKE COMMUNITY ASSOCIATION

TIMBERLAKE COMMUNITY ASSOCIATION TIMBERLAKE COMMUNITY ASSOCIATION REPLACEMENT RESERVE REPORT FY 2014 TIMBERLAKE COMMUNITY ASSOCIATION REPLACEMENT RESERVE REPORT FY 2014 Community Management by: Mr. Phil Massa, AMS, PCAM 933 Windsor Oaks

More information

BUDGET APPROVED. GENERAL EXPENSES (158 Units)

BUDGET APPROVED. GENERAL EXPENSES (158 Units) TANGLEWOOD HILLS CONDOMINIUM Association name: Tanglewood Hills Condom Association number: 1457 General - Total # of Units 158 Fiscal year end: 12/31 Budget year: 2017 Budget type: M BUDGET APPROVED ACCT.

More information

Reserve Analysis Report

Reserve Analysis Report Reserve Analysis Report Sample HOA 2663 S Oakland St Los Angeles, CA Level I Study with Site Inspection Fiscal Year End: 11/30/2016 Phone: 858-764-1895 Fax: 800-436-3816 brian@mccafferyreserveconsulting.com

More information

RESERVE FUND STUDY VILLAS OF HUDSON HOMEOWNERS ASSOCIATION HUDSON, OHIO

RESERVE FUND STUDY VILLAS OF HUDSON HOMEOWNERS ASSOCIATION HUDSON, OHIO RESERVE FUND STUDY VILLAS OF HUDSON HOMEOWNERS ASSOCIATION HUDSON, OHIO Criterium Liszkay Engineers 110 N. High St. Gahanna, OH 43230 614-418-7200 www.clengineers.com AUGUST, 2009 1.0 INTRODUCTION... 1

More information

Update With Site-Visit Reserve Study

Update With Site-Visit Reserve Study Washington Office Corporate Office 505 South 336 th St., Ste 620 Calabasas, CA Federal Way, WA 98003 Regional Offices TEL 253/661-5437 Phoenix, AZ FAX 253/661-5430 San Francisco, CA arwa@reservestudy.com

More information

Agenda Item # 5b Page 1 of 43

Agenda Item # 5b Page 1 of 43 Page 1 of 43 Page 2 of 43 Page 3 of 43 Page 4 of 43 Page 5 of 43 Page 6 of 43 Page 7 of 43 Page 8 of 43 Page 9 of 43 Page 10 of 43 Page 11 of 43 Page 12 of 43 Page 13 of 43 Page 14 of 43 Page 15 of 43

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Bridgewood Estates 2500 Jahn Avenue Northwest, Gig Harbor, WA 98335 For: Bridgewood Estates Homeowners Association c/o Juanita Carbaugh, Property Manager HOA Community Solutions

More information

Update With Site-Visit Reserve Study

Update With Site-Visit Reserve Study Washington Office Corporate Office 505 South 336 th St., Ste 620 Calabasas, CA Federal Way, WA 98003 Regional Offices TEL 253/661-5437 Phoenix, AZ FAX 253/661-5430 San Francisco, CA arwa@reservestudy.com

More information

CONTENTS 1.0 INTRODUCTION EXECUTIVE SUMMARY... 2

CONTENTS 1.0 INTRODUCTION EXECUTIVE SUMMARY... 2 CONTENTS 1.0 INTRODUCTION... 1 2.0 EXECUTIVE SUMMARY... 2 3.0 PURPOSE & SCOPE... 3 3.1 PURPOSE... 3 3.2 SCOPE... 3 3.3 SOURCES OF INFORMATION... 4 4.0 DESCRIPTION... 6 5.0 OBSERVATIONS... 6 6.0 RESERVE

More information

Sun Peak Master Association

Sun Peak Master Association Sun Peak Master Association Level 1 Reserve Study Report Period 01/01/2014 12/31/2014 Client Reference Number Property Type Fiscal Year End 17547 Master 12/31 Date of Property Inspection Prepared By Analysis

More information

Prepared for: VILLAGE AT HIGHLANDS OWNERS ASSOCIATION CROZET, VA. Prepared by:

Prepared for: VILLAGE AT HIGHLANDS OWNERS ASSOCIATION CROZET, VA. Prepared by: RESERVE FUND STUDY THE VILLAGE AT HIGHLANDS CROZET, VA 22932 Prepared for: VILLAGE AT HIGHLANDS OWNERS ASSOCIATION CROZET, VA C/O ASSOCIA COMMUNITY GROUP 1828 PAVILION CIRCLE CHARLOTTESVILLE, VA 22911

More information

2013 Reserve Study. Sea Havens Homeowners Association, Inc Florida Shores Boulevard Daytona Beach Shores, Florida Report No: 2713 Version 2

2013 Reserve Study. Sea Havens Homeowners Association, Inc Florida Shores Boulevard Daytona Beach Shores, Florida Report No: 2713 Version 2 2013 Reserve Study Sea Havens Homeowners Association, Inc Florida Shores Boulevard Daytona Beach Shores, Florida 32118 Report No: 2713 Version 2 For the Period From: January 1, 2013 To: December 31, 2013

More information

TANGLEWOOD HILLS CONDOMINIUM

TANGLEWOOD HILLS CONDOMINIUM TANGLEWOOD HILLS CONDOMINIUM Association name: Tanglewood Hills Condom Association number: 1547 General - Total # of Units 158 Fiscal year end: 12/31 Budget year: 2018 Budget type: M BUDGET APPROVED ACCT.

More information

FOR BOARD REVIEW CARRBORO, NC. Prepared for: FENWAY PARK HOMEOWNERS ASSOCIATION, INC. Prepared by:

FOR BOARD REVIEW CARRBORO, NC. Prepared for: FENWAY PARK HOMEOWNERS ASSOCIATION, INC. Prepared by: FOR BOARD REVIEW RESERVE FUND STUDY FENWAY PARK CARRBORO, NC Prepared for: FENWAY PARK HOMEOWNERS ASSOCIATION, INC. CARRBORO, NC Prepared by: CRITERIUM GILES ENGINEERS 1150 SE MAYNARD ROAD, SUITE 220 CARY,

More information

CONTENTS 1.0 INTRODUCTION... 1

CONTENTS 1.0 INTRODUCTION... 1 CONTENTS 1.0 INTRODUCTION... 1 2.0 EXECUTIVE SUMMARY... 2 3.0 PURPOSE & SCOPE... 3 3.1 PURPOSE... 3 3.2 SCOPE... 3 3.3 SOURCES OF INFORMATION... 4 4.0 DESCRIPTION... 5 5.0 OBSERVATIONS... 6 6.0 RESERVE

More information

LEVEL 3 RESERVE STUDY UPDATE WOOLSEY CORNER CONDOMINIUM

LEVEL 3 RESERVE STUDY UPDATE WOOLSEY CORNER CONDOMINIUM LEVEL 3 RESERVE STUDY UPDATE FOR WOOLSEY CORNER CONDOMINIUM Portland, OR January 1, 2017 December 31, 2017 Prepared By: Carson M. Horton, RS Quality Check By: L. Law Broili Date: April 6, 2017 Copyright

More information

Reserve Analysis Report

Reserve Analysis Report Reserve Analysis Report Parkway Towers 1155 Ash St Denver, CO 80220 Level I Study with Site Inspection Fiscal Year End Date: 12/31/2014 8597 Via Mallorca Suite E La Jolla, CA 92037 Phone: 858-764-1895

More information

RESERVE STUDY SPECIALISTS

RESERVE STUDY SPECIALISTS RESERVE STUDY SPECIALISTS P.O. BOX 9178, CALABASAS, CA 91372 TEL: 818-992-1312 FAX: 818-992-1338 VILLAGE GREEN EAST HOMEOWNERS ASSOCIATION FULL RESERVE STUDY September 06, 2017 for Fiscal Year 2018 RESERVE

More information

CAPITAL RESERVE STUDY. Ellicott Meadows Condominium Association I. Ellicott City, Maryland

CAPITAL RESERVE STUDY. Ellicott Meadows Condominium Association I. Ellicott City, Maryland CAPITAL RESERVE STUDY FOR THE Ellicott Meadows Condominium Association I Ellicott City, Maryland Contact Name: Victor Brzozowski Date: October 3, 2017 Table of Contents Section Name Section # Executive

More information

Parkwood HOA. Level 1 Reserve Study. Report Period 1/1/ /31/2012. Date of Property Inspection. Report prepared on Saturday, August 11, 2012

Parkwood HOA. Level 1 Reserve Study. Report Period 1/1/ /31/2012. Date of Property Inspection. Report prepared on Saturday, August 11, 2012 Parkwood HOA Level 1 Reserve Study Report Period 1/1/2012 12/31/2012 Client Reference Number Property Type Number of Units Fiscal Year End 12784 Townhouse 8 12/31 Date of Property Inspection Prepared By

More information

LEVEL 3 RESERVE STUDY UPDATE WOOLSEY CORNER CONDOMINIUM

LEVEL 3 RESERVE STUDY UPDATE WOOLSEY CORNER CONDOMINIUM LEVEL 3 RESERVE STUDY UPDATE FOR WOOLSEY CORNER CONDOMINIUM Portland, OR January 1, 2014 December 31, 2014 Prepared By: Carson M. Horton, RS Quality Check By: L. Law Broili Date: January 1, 2014 Copyright

More information

REPLACEMENT RESERVE REPORT FY 2016

REPLACEMENT RESERVE REPORT FY 2016 REPLACEMENT RESERVE REPORT FY 2016 EVANS MILL POND REPLACEMENT RESERVE REPORT FY 2016 EVANS MILL POND Community Management by: EVANS MILL POND, HOA Evans Mill Road McLean, Virginia 22101 Consultant: 929

More information

REPLACEMENT RESERVE REPORT FY 2019 SANCTUARY AT FALSE CAPE. Prepared for: Ms. Rebecca Beamon

REPLACEMENT RESERVE REPORT FY 2019 SANCTUARY AT FALSE CAPE. Prepared for: Ms. Rebecca Beamon SANCTUARY AT FALSE CAPE REPLACEMENT RESERVE REPORT FY 2019 SANCTUARY AT FALSE CAPE REPLACEMENT RESERVE REPORT FY 2019 Prepared for: SANCTUARY AT FALSE CAPE Ms. Rebecca Beamon 3700 Sandpiper Road Virginia

More information

Reserve Analysis Report

Reserve Analysis Report Reserve Analysis Report Mountain Oaks Townhomes Flagstaff, Arizona Version 002 February 4, 2019 Advanced Reserve Solutions, Inc. 2761 E. Bridgeport Parkway - Gilbert, Arizona 85295 kthompson@arsinc.com

More information

DRAFT WILLOUGHBY PARK GREENVILLE, NC. Prepared for: WILLOUGHBY PARK CONDOMINIUM ASSOCIATION & HOA MANAGEMENT COMPANY, LLC.

DRAFT WILLOUGHBY PARK GREENVILLE, NC. Prepared for: WILLOUGHBY PARK CONDOMINIUM ASSOCIATION & HOA MANAGEMENT COMPANY, LLC. DRAFT FULL RESERVE STUDY WILLOUGHBY PARK GREENVILLE, NC Prepared for: WILLOUGHBY PARK CONDOMINIUM ASSOCIATION GREENVILLE, NC & HOA MANAGEMENT COMPANY, LLC Prepared by: CRITERIUM GILES ENGINEERS, INC. 1150

More information

Full Reserve Study. The Ridge at Rock Creek Marysville, WA 11/13/2012

Full Reserve Study. The Ridge at Rock Creek Marysville, WA 11/13/2012 Full Reserve Study The Ridge at Rock Creek Marysville, WA 11/13/2012 Report # 1100 Phone: 253-241-8151 E-mail: jeremy@reservesolutions.net www.reservesolutions.net The Ridge at Rock Creek Client Info:

More information

PROFESSIONAL RESERVE STUDY

PROFESSIONAL RESERVE STUDY PROFESSIONAL RESERVE STUDY Sammamish Landing Condominiums 4214 West Lake Sammamish Parkway NE, Redmond, WA 98052 For: Sammamish Landing Homeowners Association c/o Scott McCue, Property Manager McCue &

More information

Quail Ridge THCA W. 17 th Ave Lakewood, CO 80224

Quail Ridge THCA W. 17 th Ave Lakewood, CO 80224 Quail Ridge THCA 11131-11167 W. 17 th Ave Lakewood, CO 80224 Level 1, Limited Reserve Analysis Report Period 5/01/16-4/30/17 Client Reference Number - 8173 Property Type Townhomes Number of Units 112 Fiscal

More information

Reserve Analysis Report

Reserve Analysis Report Reserve Analysis Report Smoky Ridge 19902 E Red Fox Ln Centennial, CO Level I Study with Site Inspection Fiscal Year End Date: 12/31/2017 Phone: 858-764-1895 Fax: 800-436-3816 brian@mccafferyreserveconsulting.com

More information

Reserve Study Transmittal Letter

Reserve Study Transmittal Letter Reserve Study Transmittal Letter Date: August 15, 215 To: Lorrie Olson, Caughlin Creek HOA From: Browning Reserve Group (BRG) Re: Caughlin Creek HOA; Full Study Attached, please find the reserve study

More information

Ashleigh Commons Condominiums Association, Inc.

Ashleigh Commons Condominiums Association, Inc. RESERVE STUDY Full Study Ashleigh Commons Condominiums Association, Inc. Published - January 14, 2016 Browning Reserve Group / Emmett, ID 83617 Office (208) 365-0977 Tony@BrowningRG.com / www.browningrg.com

More information

2019 Reserve Study. Pebble Shores Condominium Association, Inc. Pebble Shores Drive Naples, FL A Service of:

2019 Reserve Study. Pebble Shores Condominium Association, Inc. Pebble Shores Drive Naples, FL A Service of: Pebble Shores Drive Naples, FL 34410 A Service of: 5036 Dr. Phillips Blvd, Suite 207, Orlando FL 32819 www.lcamresources.com October 31, 2018 Pebble Shores Condominium Pebble Shores Drive Naples, FL 34410

More information

CAPITAL RESERVE STUDY

CAPITAL RESERVE STUDY Arizona Texas Nevada Utah New Mexico CAPITAL RESERVE STUDY Prepared for: Quail Creek HOA Date of Report: 6/7/2018 Capital Reserve Analysts Bringing the future into the present Capital Reserve Analysts,

More information

RESERVE STUDY LEVEL I - Full Reserve Study. ABC Condominium Association, Inc.

RESERVE STUDY LEVEL I - Full Reserve Study. ABC Condominium Association, Inc. Insurance Appraisals Reserve Studies Wind Mitigation RESERVE STUDY LEVEL I - Full Reserve Study Prepared for: ABC Condominium Association, Inc. For the period of January 1, 214 - December 31, 214 71 Enterprise

More information

Hyde Park Place Owners' Association, Inc.

Hyde Park Place Owners' Association, Inc. RESERVE STUDY Full Study Hyde Park Place Owners' Association, Inc. Published - February 10, 2016 Browning Reserve Group / Emmett, ID 83617 Office (208) 365-0977 Tony@BrowningRG.com / www.browningrg.com

More information

21289 E. Lords Way Queen Creek, AZ Tel: (480) Fax: (888) October 27, Sample Association

21289 E. Lords Way Queen Creek, AZ Tel: (480) Fax: (888) October 27, Sample Association 21289 E. Lords Way Queen Creek, AZ 85142 support@azreservestudy.com Tel: (480) 840-7130 Fax: (888) 842-9319 October 27, 2012 Sample Association Regarding: 2013 - Level I Capital Replacement Reserve Study

More information

Pacific Tower Condominium Association

Pacific Tower Condominium Association www.hoacpa.com Pacific Tower Condominium Association Audit Report Financial Statements & Supplementary Information December 31, 2016 Cagianut & Company CERTIFIED PUBLIC ACCOUNTANT www.hoacpa.com Members

More information

.USI.COMMERCIAL. (888) Funding Reserve Analysis. for. The Retreat at Gleannloch Farms Homeowners Association Spring, TX

.USI.COMMERCIAL. (888) Funding Reserve Analysis. for. The Retreat at Gleannloch Farms Homeowners Association Spring, TX .USI.COMMERCIAL (888)225-3755 www.usicommercial.com Funding Reserve Analysis for The Retreat at Gleannloch Farms Homeowners Association Spring, TX October 14, 2014 Page 1 of 31 Pages Funding Reserve Analysis

More information

Shadow Ridge. Level 2 Reserve Study. Report Period 01/01/ /31/2015. Date of Property Inspection 8/21/2014

Shadow Ridge. Level 2 Reserve Study. Report Period 01/01/ /31/2015. Date of Property Inspection 8/21/2014 Shadow Ridge Level 2 Reserve Study Report Period 01/01/2015 12/31/2015 Client Reference Number 10160 Property Type Condominium Number of Units 168 Fiscal Year End 12/31 Date of Property Inspection 8/21/2014

More information

OAK CREEK CONDOMINIUMS

OAK CREEK CONDOMINIUMS 1515 Heritage Dr., Suite 204 McKinney, Texas75069 (972) 562-1011 TEL (972) 540-1031 FAX Firm Reg. No F-4577 www.criteriumdotson.com RESERVE FUND STUDY OAK CREEK CONDOMINIUMS 1700 BAIRD FARM CIRCLE ARLINGTON,

More information

NEW ALBANY COUNTRY CLUB MASTER ASSOCIATION, INC NEW ALBANY, OHIO

NEW ALBANY COUNTRY CLUB MASTER ASSOCIATION, INC NEW ALBANY, OHIO RESERVE FUND STUDY NEW ALBANY COUNTRY CLUB MASTER ASSOCIATION, INC NEW ALBANY, OHIO Criterium Liszkay Engineers 110 N. High St. Gahanna, OH 43230 614-418-7200 www.clengineers.com NOVEMBER 2013 1.0 INTRODUCTION...1

More information

WHAT IS A RESERVE STUDY AND WHY ARE THEY IMPORTANT?

WHAT IS A RESERVE STUDY AND WHY ARE THEY IMPORTANT? WHAT IS A RESERVE STUDY AND WHY ARE THEY IMPORTANT? Tom Larson, PE, RS, PRA Facility Engineering Associates, PC What is a Reserve Study? A budget planning tool which identifies the current status of the

More information

RESERVE STUDY Component Analysis and Reserve Fund Plan Annual Review Study 2016/17 For Middlefield Meadows HOA Mountain View, CA Prepared By RESERVE ANALYSIS CONSULTING, LLC 1750 Bridgeway, Suite B106

More information

August 19, Raintree HOA Attn: Emily Bresina HOA Simple PO Box Denver, CO Regarding: Reserve Study Draft.

August 19, Raintree HOA Attn: Emily Bresina HOA Simple PO Box Denver, CO Regarding: Reserve Study Draft. August 19, 2015 Raintree HOA Attn: Emily Bresina HOA Simple PO Box 13823 Denver, CO 80201 Regarding: Reserve Study Draft Dear Emily: Please find enclosed a Draft version of the Reserve Study for Summerhill

More information

Commercial Assessments

Commercial Assessments Commercial Assessments (888) 225-3755 www.commercialassessments.com Funding Reserve Analysis for Timberlake Crossing Condominium Unit Owners Association Hardy, VA January 15, 2013 Page 1 of 24 Pages Funding

More information

Reserve Study Transmittal Letter

Reserve Study Transmittal Letter Reserve Study Transmittal Letter Date: October 09, 2016 To: Joleen Cline, Cline & Associates From: Browning Reserve Group (BRG) Re: Whitehawk Townhomes Association; Update w/ Site Visit Review Attached,

More information

Pinewood, A Condominium Sample Policy Resolution # Reserve Study & Funding

Pinewood, A Condominium Sample Policy Resolution # Reserve Study & Funding Reserve Study & Funding Policy Planning for future repairs and replacements is one of the most critical things a homeowner association should do. A Reserve Study is a long range planning tool that identifies

More information

THE VINEYARDS AT DUBLIN GREENE OWNERS ASSOCIATION

THE VINEYARDS AT DUBLIN GREENE OWNERS ASSOCIATION THE VINEYARDS AT DUBLIN GREENE OWNERS ASSOCIATION Full Reserve Study With On-site Visual Inspection October 3, 2018 Reserve Study for Fiscal Year: 01/01/2019 through 12/31/2019 2059 Camden Ave. Suite 151

More information

Year Per Manor Per Month Assessment Total Contribution United Laguna Woods Mutual 2019 RESERVES PLAN Reserve 30-Year Funding Plan Interest Earnings Th

Year Per Manor Per Month Assessment Total Contribution United Laguna Woods Mutual 2019 RESERVES PLAN Reserve 30-Year Funding Plan Interest Earnings Th Year Per Manor Per Month Assessment Total Contribution United Laguna Woods Mutual 2019 RESERVES PLAN Reserve 30-Year Funding Plan Interest Earnings Threshold (Min Balance): $ 10,400,000 Indexed for projected

More information

GLOBAL Solution Partners, LLC - Toll free phone and fax: (844)

GLOBAL Solution Partners, LLC - Toll free phone and fax: (844) GLOBAL Solution Partners, LLC info@globalreservestudies.com - Toll free phone and fax: (844) 477-7883 - www.globalsolutionpartners.com Funding Reserve Analysis for Oak Crest Farms November 2, 2016 Page

More information

FULL RESERVE STUDY Ameri-Cana Resorts Co-op, Inc. Rockledge, Florida April 13, 2017

FULL RESERVE STUDY Ameri-Cana Resorts Co-op, Inc. Rockledge, Florida April 13, 2017 FULL RESERVE STUDY Ameri-Cana Resorts Co-op, Inc. Rockledge, Florida April 13, 2017 This Report contains intellectual property developed by Reserve Advisors, Inc. and cannot be reproduced or distributed

More information

Reserve Fund Study My Condominium Plan

Reserve Fund Study My Condominium Plan Reserve Fund Study My Condominium Plan 12 3456 Number of Units 36 Number of Buildings 1 Building Construction 21 Contact Ima Happy Position(s) President Contact Phone 43.555.4321 Report Date August 8,

More information

LEVEL 2 RESERVE STUDY UPDATE POINTE WOODWORTH HOMEOWNERS ASSOCIATION

LEVEL 2 RESERVE STUDY UPDATE POINTE WOODWORTH HOMEOWNERS ASSOCIATION LEVEL 2 RESERVE STUDY UPDATE POINTE WOODWORTH HOMEOWNERS ASSOCIATION Tacoma, WA January 1, 2014 December 31, 2014 Prepared By: Carson M. Horton, RS Quality Check By: L. Law Broili Date: July 20, 2013 Copyright

More information

Do-It-Yourself Reserve Study

Do-It-Yourself Reserve Study Washington Office Corporate Office 505 South 336 th St., Ste 620 Calabasas, CA Federal Way, WA 98003 Regional Offices TEL 253/661-5437 Phoenix, AZ FAX 253/661-5430 San Francisco, CA arwa@reservestudy.com

More information