RESERVE STUDY & MAINTENANCE PLAN ReserveStudyUpdate.com, LLC P.O. Box Portland, Oregon Phone: Fax:

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1 9998 Beach Drive Birkenfeld, Oregon Account Version 8 Fiscal Year: October 1, 2015 to September 30, 2016 RESERVE STUDY & MAINTENANCE PLAN ReserveStudyUpdate.com, LLC P.O. Box Portland, Oregon Phone: Fax:

2 TABLE OF CONTENTS Fishhawk Lake Resource and Community, Inc. PART I INFORMATION ABOUT YOUR RESERVE STUDY Important Information 1-1 Introduction 1-2 Funding Options 1-2 Types of Reserve Studies 1-3 Developing a Component List 1-3 Operational Expenses 1-4 Reserve Expenses 1-4 Funding Methods 1-5 Funding Strategies 1-6 Distribution of Reserves 1-7 User s Guide to Your Reserve Study 1-9 Definitions 1-9 Your Reserve Study is a Multi-Purpose Tool 1-12 PART II RESERVE STUDY Current Funding Model - Executive Summary 2-1 Current Assessment Funding Model Summary 2-3 Current Assessment Funding Model Projection 2-4 Current Assessment Funding Model vs Fully Funded Chart 2-5 Current Funding Model - Component Summary by Category 2-6 Current Funding Model - Capital vs Non-Capital Summary 2-10 Threshold Funding Model - Executive Summary 2-12 Threshold Funding Model Summary 2-14 Threshold Funding Model Projection 2-15 Threshold Funding Model vs Fully Funded Chart 2-16 Threshold Funding Model - Component Summary by Category 2-17 Threshold Funding Model - Capital vs Non-Capital Summary 2-21 Component Funding Model - Executive Summary 2-23 Component Funding Model Summary 2-26 Component Funding Model Projection 2-27 Component Funding Model vs Fully Funded Chart 2-28

3 TABLE OF CONTENTS Fishhawk Lake Resource and Community, Inc. Component Funding Model Assessment & Category Summary 2-29 Component Funding Model - Component Summary by Category 2-32 Component Funding Model - Capital vs Non-Capital Summary 2-36 Annual Expenditure Detail 2-38 Detail Report by Category (Threshold Funding Model) 2-45 Category Detail Index Annual Expenditure Chart Funding Model Reserve Ending Balance Comparison Chart Funding Model Comparison by Percent Funded Funding Model Assessment Comparison Chart Spread Sheet Asset Current Cost by Category IRS Revenue Ruling for Community Associations Part III MAINTENANCE PLAN Maintenance Plan Detail 3-1

4 Important Information Fishhawk Lake Resource and Community, Inc. ReserveStudyUpdate.com, LLC Part One This document has been provided pursuant to an agreement containing restrictions on its use. The client shall have the right to reproduce and distribute copies of this report, or the information contained within, as may be required for compliance with all applicable regulations. This reserve analysis study and the parameters under which it has been completed are based upon information provided to us in part by representatives of the association, its contractors, assorted vendors, specialist and independent contractors, the Community Association Institute, and various construction pricing and scheduling manuals including, but not limited to: Marshall & Swift Valuation Service, RS Means Facilities Maintenance & Repair Cost Data, RS Means Repair & Remodeling Cost Data, National Construction Estimator, National Repair & Remodel Estimator, Dodge Cost Manual and McGraw-Hill Professional. Additionally, costs are obtained from numerous vendor catalogues, actual quotations or historical costs, and our own experience in the field of property management and reserve study preparation. It has been assumed, unless otherwise noted in this report, that all assets have been designed and constructed properly and that each estimated useful life will approximate that of the norm per industry standards and/or manufacturer s specifications. In some cases, estimates may have been used on assets, which have an indeterminable but potential liability to the association. The decision for the inclusion of these as well as all assets considered is left to the client. We recommend that your reserve analysis study be updated on an annual basis due to fluctuating interest rates, inflationary changes, and the unpredictable nature of the lives of many of the assets under consideration. All of the information collected during our inspection of the association and computations made subsequently in preparing this reserve analysis study are retained in our computer files. Therefore, annual updates may be completed quickly and inexpensively each year. ReserveStudyUpdate.com, LLC would like to thank you for using our services. We invite you to call us at any time, should you have questions, comments or need assistance. In addition, any of the parameters and estimates used in this study may be changed at your request, after which we will provide a revised study. This reserve analysis study is provided as an aid for planning purposes and not as an accounting tool. Since it deals with events yet to take place, there is no assurance that the results enumerated within it will, in fact, occur as described. Conditions reported by the reserve study are applicable to the immediate time frame of the report and these conditions, over time, may change. Is impossible to envisage thirty years into the future to establish the cost of repair or replacement of any of the components, let alone the value of money, fluctuation in the cost of fuel, delivery/installation costs, changing building code requirements and other potential unknowns. The probability that it may project in its reserve study, or that the Board could project in its disclosures, future costs or actual future remaining useful lives of components having useful lives extended beyond one year with precision is the functional equivalent of winning a national sweepstake; while it may happen in atypical instances by chance, one may not reasonably expect it to happen. The reserve study shall not be used as health and safety concerns, evidence of construction defects, damage, potential damage, water intrusion inspection, or as a construction-quality inspection. This reserve study specifically exclude issues having to do with unpredictable natural events and environmental hazards; including but not limited to lead paint, asbestos, mold, mildew, radon, etc. PAGE 1-1

5 ReserveStudyUpdate.com, LLC Part One Part I Introduction Preparing the annual budget and overseeing the association s finances are perhaps the most important responsibilities of board members. The annual operating and reserve budgets reflect the planning and goals of the association and set the level and quality of service for all of the association s activities. Funding Options When a major repair or replacement is required in a community, an association has essentially four options available to address the expenditure: The first, and only logical means that the Board of Directors has to ensure its ability to maintain the assets for which it is obligated, is by assessing an adequate level of reserves as part of the regular membership assessment, thereby distributing the cost of the replacements uniformly over the entire membership. The community is not only comprised of present members, but also future members. Any decision by the Board of Directors to adopt a calculation method or funding plan which would disproportionately burden future members in order to make up for past reserve deficits, would be a breach of its fiduciary responsibility to those future members. Unlike individuals determining their own course of action, the board is responsible to the community as a whole. Whereas, if the association was setting aside reserves for this purpose, using the vehicle of the regularly assessed membership dues, it would have had the full term of the life of the roof, for example, to accumulate the necessary moneys. Additionally, those contributions would have been evenly distributed over the entire membership and would have earned interest as part of that contribution. The second option is for the association to acquire a loan from a lending institution in order to effect the required repairs. In many cases, banks will lend to an association using future homeowner assessments as collateral for the loan. With this method, the current board is pledging the future assets of an association. They are also incurring the additional expense of interest fees along with the original principal amount. In the case of a $150,000 roofing replacement, the association may be required to pay back the loan over a three to five year period, with interest. The third option, too often used, is simply to defer the required repair or replacement. This option, which is not recommended, can create an environment of declining property values due to expanding lists of deferred maintenance items and the association s financial inability to keep pace with the normal aging process of the common area components. This, in turn, can have a seriously negative impact on sellers in the association by making it difficult, or even impossible, for potential buyers to obtain financing from lenders. Increasingly, lending institutions are requesting copies of the association s most recent reserve study before granting loans, either for the association itself, a prospective purchaser, or for an individual within such an association. The fourth option is to pass a special assessment to the membership in an amount required to cover the expenditure. When a special assessment is passed, the association has the authority and responsibility to collect the assessments, even by means of foreclosure, if necessary. However, an association considering a special assessment cannot guarantee that an assessment, when needed, will be passed. Consequently, the association cannot guarantee its ability to perform the required repairs or replacements to those major components for which it is obligated when the need arises. Additionally, while relatively new communities require very little in the way of major reserve expenditures, associations reaching 12 to 15 years of age and older, find many components reaching the end of their effective useful lives. These required expenditures, all accruing at the same time, could be devastating to an association s overall budget. PAGE 1-2

6 Types of Reserve Studies Fishhawk Lake Resource and Community, Inc. ReserveStudyUpdate.com, LLC Part One Most reserve studies fit into one of three categories: Full Reserve Study; Update with site inspection; and Update without site inspection. In a Full Reserve Study, the reserve provider conducts a component inventory, a condition assessment (based upon onsite visual observations), and life and valuation estimates to determine both a fund status and funding plan. In an Update with site inspection, the reserve provider conducts a component inventory (verification only, not quantification unless new components have been added to the inventory), a condition assessment (based upon on-site visual observations), and life and valuation estimates to determine both the fund status and funding plan. In an Update without site inspection, the reserve provider conducts life and valuation estimates to determine the fund status and funding plan. The Reserve Study: A Physical and a Financial Analysis There are two components of a reserve study: a physical analysis and a financial analysis. Physical Analysis During the physical analysis, a reserve study provider evaluates information regarding the physical status and repair/replacement cost of the association s major common area components. To do so, the provider conducts a component inventory, a condition assessment, and life and valuation estimates. Developing a Component List The budget process begins with full inventory of all the major components for which the association is responsible. The determination of whether an expense should be labeled as operational, reserve, or excluded altogether is sometimes subjective. Since this labeling may have a major impact on the financial plans of the association, subjective determinations should be minimized. We suggest the following considerations when labeling an expense. PAGE 1-3

7 ReserveStudyUpdate.com, LLC Part One Operational Expenses Occur at least annually, no matter how large the expense, and can be budgeted for effectively each year. They are characterized as being reasonably predictable, both in terms of frequency and cost. Operational expenses include all minor expenses, which would not otherwise adversely affect an operational budget from one year to the next. Examples of operational expenses include: Utilities: Bank Service Charges Accounting Electricity Dues & Publications Reserve Study Gas Licenses, Permits & Fees Repair Expenses: Water Insurance(s) Tile Roof Repairs Telephone Services: Equipment Repairs Cable TV Landscaping Minor Concrete Repairs Administrative: Pool Maintenance Operating Contingency Supplies Street Sweeping Reserve Expenses These are major expenses that occur other than annually, and which must be budgeted for in advance in order to ensure the availability of the necessary funds in time for their use. Reserve expenses are reasonably predictable both in terms of frequency and cost. However, they may include significant assets that have an indeterminable but potential liability that may be demonstrated as a likely occurrence. They are expenses that, when incurred, would have a significant effect on the smooth operation of the budgetary process from one year to the next, if they were not reserved for in advance. Examples of reserve expenses include: Roof Replacements Painting Deck Resurfacing Fencing Replacement Asphalt Seal Coating Asphalt Repairs Asphalt Overlays Equipment Replacement Park/Play Equipment Pool/Spa Re-plastering Pool Equipment Replacement Pool Furniture Replacement Tennis Court Resurfacing Lighting Replacement Insurance(s) Reserve Study Interior Furnishings Budgeting is Normally Excluded for: Repairs or replacements of assets which are deemed to have an estimated useful life equal to or exceeding the estimated useful life of the facility or community itself, or exceeding the legal life of the community as defined in an association s governing documents. Examples include the complete replacement of elevators, tile roofs, wiring and plumbing. Also excluded are insignificant expenses that may be covered either by an operating or reserve contingency, or otherwise in a general maintenance fund. Expenses that are necessitated by acts of nature, accidents or other occurrences that are more properly insured for, rather than reserved for, are also excluded. PAGE 1-4

8 ReserveStudyUpdate.com, LLC Part One Financial Analysis The financial analysis assesses the association s reserve balance or fund status (measured in cash or as percent fully funded) to determine a recommendation for the appropriate reserve contribution rate in the future, known as the funding plan. Preparing the Reserve Study Once the reserve assets have been identified and quantified, their respective replacement costs, useful lives and remaining lives must be assigned so that a funding schedule can be constructed. Replacement costs and useful lives can be found in published manuals such as construction estimators, appraisal handbooks, and valuation guides. Remaining lives are calculated from the useful lives and ages of assets and adjusted according to conditions such as design, manufactured quality, usage, exposure to the elements and maintenance history. By following the recommendations of an effective reserve study, the association should avoid any major shortfalls. However, to remain accurate, the report should be updated on an annual basis to reflect such changes as shifts in economic parameters, additions of phases or assets, or expenditures of reserve funds. The association can assist in simplifying the reserve analysis update process by keeping accurate records of these changes throughout the year. Funding Methods From the simplest to the most complex, reserve analysis providers use many different computational processes to calculate reserve requirements. However, there are two basic processes identified as industry standards: the cash flow method and the component method. The cash flow method develops a reserve-funding plan where contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the actual anticipated schedule of reserve expenses until the desired funding goal is achieved. This method sets up a window in which all future anticipated replacement costs are computed, based upon the individual lives of the components under consideration. The ReserveStudyUpdate.com, LLC Threshold and the ReserveStudyUpdate.com, LLC Current Assessment funding models are based upon the cash flow method. The component method develops a reserve-funding plan where the total contribution is based upon the sum of contributions for individual components. The component method is the more conservative of the two funding options, and assures that the association will achieve and maintain an ideal level of reserve over time. This method also allows for computations on individual components in the analysis. The ReserveStudyUpdate.com, LLC Component Funding model is based upon the component methodology. PAGE 1-5

9 ReserveStudyUpdate.com, LLC Part One Funding Strategies Once an association has established its funding goals, the association can select an appropriate funding plan. There are four basic strategies from which most associations select. It is recommended that associations consult professionals to determine the best strategy or combination of plans that best suit the association s need. Additionally, associations should consult with their financial advisor to determine the tax implications of selecting a particular plan. Further, consultation with the American Institute of Certified Public Accountants (AICPA) for their reporting requirements is advisable. The four funding plans and descriptions of each are detailed below. Associations will have to update their reserve studies more or less frequently depending on the funding strategy they select. Full Funding---Given that the basis of funding for reserves is to distribute the costs of the replacements over the lives of the components in question, it follows that the ideal level of reserves would be proportionately related to those lives and costs. If an association has a component with an expected estimated useful life of ten years, it would set aside approximately one-tenth of the replacement cost each year. At the end of three years, one would expect three-tenths of the replacement cost to have accumulated, and if so, that component would be fully-funded. This model is important in that it is a measure of the adequacy of an association s reserves at any one point of time, and is independent of any particular method which may have been used for past funding or may be under consideration for future funding. This formula represents a snapshot in time and is based upon current replacement cost, independent of future inflationary or investment factors: Fully Funded Reserves = Age divided by Useful Life the results multiplied by Current Replacement Cost When an association s total accumulated reserves for all components meet this criterion, its reserves are considered fully-funded. The ReserveStudyUpdate.com, LLC Baseline Funding Model (Minimum Funding). The goal of this funding method is to keep the reserve cash balance above zero. This method describes the objective to have sufficient reserves on hand to never completely run out of money. This means that while each individual component may not be fully funded, the reserve balance overall does not drop below zero during the projected period. An association using this funding method must understand that even a minor reduction in a component s remaining useful life can result in a deficit in the reserve cash balance. This is sometimes described as a "cash-positive" plan. With less cash in reserves on-deposit, associations with a baseline funding objective have higher instances of special assessments and/or deferred maintenance. The ReserveStudyUpdate.com, LLC Threshold Funding Model. This method is based upon the cash flow funding concept. The minimum reserve cash balance in threshold funding, however, is set at a predetermined dollar amount (other than $0). Threshold funding describes an objective chosen by the board other than the 100% (full funding) level or just staying cash-positive (baseline funding). This may be a specific percent funded target or a cash balance target. Threshold funding is often a value chosen in between full funding and baseline funding. ReserveStudyUpdate.com, LLC recommends the Threshold Funding Model. The ReserveStudyUpdate.com, LLC Current Assessment Funding Model. This method is also based upon the cash flow funding concept. The initial reserve assessment is set at the association s current fiscal year funding level and a 30- year projection is calculated to illustrate the adequacy of the current funding over time. The Current Funding Model is often used as a user defined model. This model allows the Board of Directors to experiment and contemplate alternative funding approaches and scrutinize and consider the ramifications of these funding approaches. The ReserveStudyUpdate.com, LLC Component Funding Model. This is a straight-line funding model. It distributes the cash reserves to individual reserve components and then calculates what the reserve assessment and interest contribution (minus taxes) should be, again by each reserve component. The current annual assessment is then determined by summing all the individual component assessments, hence the name Component Funding Model. This is the most conservative funding model. It leads to or maintains the fully funded reserve position. The following details this calculation process. PAGE 1-6

10 ReserveStudyUpdate.com, LLC Part One Component Funding Model Distribution of Accumulated Reserves The Distribution of Accumulated Reserves Report is a Component Funding Model calculation. This distribution does not apply to the cash flow funding models. When calculating reserves based upon the component methodology, a beginning reserve balance must be allocated for each of the individual components considered in the analysis, before the individual calculations can be completed. When this distribution is not available, or of sufficient detail, the following method is suggested for allocating reserves: The first step the program performs in this process is subtracting, from the total accumulated reserves, any amounts for assets that have predetermined (fixed) reserve balances. The user can fix the accumulated reserve balance within the program on the individual asset s detail page. If, by error, these amounts total more than the amount of funds available, then the remaining assets are adjusted accordingly. A provision for a contingency reserve is then deducted by the determined percentage used, and if there are sufficient remaining funds available. The second step is to identify the ideal level of reserves for each asset. As indicated in the prior section, this is accomplished by evaluating the component s age proportionate to its estimated useful life and current replacement cost. Again, the equation used is as follows: Fully Funded Reserves = (Age/Useful Life) x Current Replacement Cost The Reserve Analyst software program performs the above calculations to the actual month the component was placed-in-service. The program projects that the accumulation of necessary reserves for repairs or replacements will be available on the first day of the fiscal year in which they are scheduled to occur. The next step the program performs is to arrange all of the assets used in the study in ascending order by remaining life, and alphabetically within each grouping of remaining life items. These assets are then assigned their respective ideal level of reserves until the amount of funds available is depleted, or until all assets are appropriately funded. If any assets are assigned a zero remaining life (scheduled for replacement in the current fiscal year), then the amount assigned equals the current replacement cost and funding begins for the next cycle of replacement. If there are insufficient funds available to accomplish this, then the software automatically adjusts the zero remaining life items to one year, and that asset assumes its new grouping position alphabetically in the final printed report. If, at the completion of this task, there are additional moneys that have not been distributed, the remaining reserves are then assigned, in ascending order, to a level equal to, but not exceeding, the current replacement cost for each component. If there are sufficient moneys available to fund all assets at their current replacement cost levels, then any excess funds are designated as such and are not factored into any of the report computations. If, at the end of this assignment process there are designated excess funds, they can be used to offset the monthly contribution requirements recommended, or used in any other manner the client may desire. Assigning the reserves in this manner defers the make-up period for any under-funding over the longest remaining life of all assets under consideration, thereby minimizing the impact of any deficiency. For example, if the report indicates an under funding of $50,000, this under-funding will be assigned to components with the longest remaining lives in order to give more time to replenish the account. If the $50,000 under-funding were to be assigned to short remaining life items, the impact would be felt immediately. If the reserves are under-funded, the monthly contribution requirements, as outlined in this report, can be expected to be higher than normal. In future years, as individual assets are replaced, the funding requirements will return to their normal levels. In the case of a large deficiency, a special assessment may be considered. The program can easily generate revised reports outlining how the monthly contributions would be affected by such an adjustment, or by any other changes that may be under consideration. PAGE 1-7

11 Funding Reserves Fishhawk Lake Resource and Community, Inc. ReserveStudyUpdate.com, LLC Part One Three assessment and contribution figures are provided in the report, the Monthly Reserve Assessment Required, the Average Net Monthly Interest Earned contribution and the Total Monthly Allocation to Reserves. The association should allocate the Monthly Reserve Assessment Required amount to reserves each month when the interest earned on the reserves is left in the reserve accounts as part of the contribution. Any interest earned on reserve deposits, must be left in reserves and only amounts set aside for taxes should be removed. The second alternative is to allocate the Total Monthly Allocation to reserves (this is the member assessment plus the anticipated interest earned for the fiscal year). This method assumes that all interest earned will be assigned directly as operating income. This allocation takes into consideration the anticipated interest earned on accumulated reserves regardless of whether or not it is actually earned. When taxes are paid, the amount due will be taken directly from the association s operating accounts as the reserve accounts are allocated only those moneys net of taxes. Users Guide to your Reserve Analysis Study Part II of your ReserveStudyUpdate.com, LLC Report contains the reserve analysis study for your association. There are seven types of reports in the study as described below. Report Summaries The Report Summary for all funding models lists all of the parameters that were used in calculating the report as well as the summary of your reserve analysis study. Index Reports The Distribution of Accumulated Reserves report lists all assets in remaining life order. It also identifies the ideal level of reserves that should have accumulated for the association as well as the actual reserves available. This information is valid only for the Component Funding Model calculation. PAGE 1-8

12 ReserveStudyUpdate.com, LLC Part One The Component Listing/Summary lists all assets by category (i.e. roofing, painting, lighting, etc.) together with their remaining life, current cost, monthly reserve contribution, and net monthly allocation. Detail Reports The Detail Report itemizes each asset and lists all measurements, current and future costs, and calculations for that asset. Provisions for percentage replacements, salvage values, and one-time replacements can also be utilized. These reports can be sorted by category or group. The numerical listings for each asset are enhanced by extensive narrative detailing factors such as design, manufactured quality, usage, exposure to elements and maintenance history. The ReserveStudyUpdate.com, LLC Detail Index is an alphabetical listing of all assets, together with the page number of the asset s detail report, the projected replacement year, and the asset number. Projections Thirty-year projections add to the usefulness of your reserve analysis study. Definitions Report I.D. Includes the Report Date (example: November 15, 1992), Account Number (example: 9773), and Version (example: 1.0). Please use this information (displayed on the summary page) when referencing your report. Budget Year Beginning/Ending The budgetary year for which the report is prepared. For associations with fiscal years ending December 31 st, the monthly contribution figures indicated are for the 12-month period beginning 1/1/20xx and ending 12/31/20xx. Number of Units and/or Phases If applicable, the number of units and/or phases included in this version of the report. Inflation This figure is used to approximate the future cost to repair or replace each component in the report. The current cost for each component is compounded on an annual basis by the number of remaining years to replacement, and the total is used in calculating the monthly reserve contribution that will be necessary to accumulate the required funds in time for replacement. Annual Assessment Increase This represents the percentage rate at which the association will increase its assessment to reserves at the end of each year. For example, in order to accumulate $10,000 in 10 years, you could set aside $1,000 per year. As an alternative, you could set aside $795 the first year and increase that amount by 5% each year until the year of replacement. In either case you arrive at the same amount. The idea is that you start setting aside a lower amount and increase that number each year in accordance with the planned percentage. Ideally this figure should be equal to the rate of inflation. It can, however, be used to aide those associations that have not set aside appropriate reserves in the past, by making the initial year s allocation less formidable. PAGE 1-9

13 ReserveStudyUpdate.com, LLC Part One Investment Yield Before Taxes The average interest rate anticipated by the association based upon its current investment practices. Taxes on Interest Yield The estimated percentage of interest income that will be set aside to pay income taxes on the interest earned. Projected Reserve Balance The anticipated reserve balance on the first day of the fiscal year for which this report has been prepared. This is based upon information provided and not audited. Percent Fully Funded The ratio, at the beginning of the fiscal year, of the actual (or projected) reserve balance to the calculated fully funded balance, expressed as a percentage. Phase Increment Detail and/or Age Comments regarding aging of the components on the basis of construction date or date of acceptance by the association. Monthly Assessment The assessment to reserves required by the association each month. Interest Contribution (After Taxes) The interest that should be earned on the reserves, net of taxes, based upon their beginning reserve balance and monthly contributions for one year. This figure is averaged for budgeting purposes. Total Monthly Allocation The sum of the monthly assessment and interest contribution figures. Group and Category The report may be prepared and sorted either by group (location, building, phase, etc.) or by category (roofing, painting, etc.). The standard report printing format is by category. Percentage of Replacement or Repairs In some cases, an asset may not be replaced in its entirety or the cost may be shared with a second party. Examples are budgeting for a percentage of replacement of streets over a period of time, or sharing the expense to replace a common wall with a neighboring party. Placed-In-Service Date The month and year that the asset was placed-in-service. This may be the construction date, the first escrow closure date in a given phase, or the date of the last servicing or replacement. Estimated Useful Life The estimated useful life of an asset based upon industry standards, manufacturer specifications, visual inspection, location, usage, association standards and prior history. All of these factors are taken into consideration when tailoring the estimated useful life to the particular asset. For example, the carpeting in a hallway or elevator (a heavy traffic area) will not have the same life as the identical carpeting in a seldom-used meeting room or office. Adjustment to Useful Life Once the useful life is determined, it may be adjusted, up or down, by this separate figure for the current cycle of replacement. This will allow for a current period adjustment without affecting the estimated replacement cycles for future replacements. Estimated Remaining Life This calculation is completed internally based upon the report s fiscal year date and the date the asset was placed-inservice. PAGE 1-10

14 ReserveStudyUpdate.com, LLC Part One Replacement Year The year that the asset is scheduled to be replaced. The appropriate funds will be available by the first day of the fiscal year for which replacement is anticipated. Annual Fixed Reserves An optional figure which, if used, will override the normal process of allocating reserves to each asset. Fixed Assessment An optional figure which, if used, will override all calculations and set the assessment at this amount. This assessment can be set for monthly, quarterly or annually as necessary. Salvage Value The salvage value of the asset at the time of replacement, if applicable. One-Time Replacement Notation if the asset is to be replaced on a one-time basis. Current Replacement Cost The estimated replacement cost effective at the beginning of the fiscal year for which the report is being prepared Future Replacement Cost The estimated cost to repair or replace the asset at the end of its estimated useful life based upon the current replacement cost and inflation. Component Inventory The task of selecting and qualifying reserve components. This task can be accomplished through on-site visual, review of association design and organizational documents, a review of established association precedents, and discussion with appropriate association representative(s). PAGE 1-11

15 A Multi-Purpose Tool Fishhawk Lake Resource and Community, Inc. ReserveStudyUpdate.com, LLC Part One Your ReserveStudyUpdate.com, LLC Report is an important part of your association s budgetary process. Following its recommendations should ensure the association s smooth budgetary transitions from one fiscal year to the next, and either decrease or eliminate the need for special assessments. In addition, your ReserveStudyUpdate.com, LLC reserve study serves a variety of useful purposes: Following the recommendations of a reserve study performed by a professional consultant can protect the Board of Directors in a community from personal liability concerning reserve components and reserve funding. A reserve analysis study is required by your accountant during the preparation of the association s annual audit. The ReserveStudyUpdate.com, LLC reserve study is often requested by lending institutions during the process of loan applications, both for the community and, in many cases, the individual owners. Your ReserveStudyUpdate.com, LLC Report is also a detailed inventory of the association s major assets and serves as a management tool for scheduling, coordinating and planning future repairs and replacements. Your ReserveStudyUpdate.com, LLC Report is a tool that can assist the Board in fulfilling its legal and fiduciary obligations for maintaining the community in a state of good repair. If a community is operating on a special assessment basis, it cannot guarantee that an assessment, when needed, will be passed. Therefore, it cannot guarantee its ability to perform the required repairs or replacements to those major components for which the association is obligated. Since the ReserveStudyUpdate.com, LLC reserve analysis study includes measurements and cost estimates of the client s assets, the detail reports may be used to evaluate the accuracy and price of contractor bids when assets are due to be repaired or replaced. The ReserveStudyUpdate.com, LLC reserve study is an annual disclosure to the membership concerning the financial condition of the association, and may be used as a consumers guide by prospective purchasers. The ReserveStudyUpdate.com, LLC Owners Summary meets the disclosure requirements of the California Civil Code and also the recently adopted ECHO standards. Your ReserveStudyUpdate.com, LLC Report provides a record of the time, cost, and quantities of past reserve replacements. At times the association s management company and board of directors are transitory which may result in the loss of these important records. Sincerely, Brian A. Owens Brian A. Owens, RSS, PRA, RS Reserve Analyst ReserveStudyUpdate.com, LLC PO Box Portland, Oregon Pacific Northwest: FIX ( ) West South Central: BUDGET ( ) RSS (Reserve Study Specialist - State of Nevada - Licensed Reserve Analyst #RSS ) PRA (Professional Reserve Analyst # Association of Professional Reserve Analysts) RS (Reserve Specialist #279 - Community Associations Institute) PAGE 1-12

16 ReserveStudyUpdate.com, LLC Current Funding Model - Executive Summary EXECUTIVE SUMMARY - CURRENT FUNDING MODEL CURRENT FUNDING MODEL OVERVIEW The "Current Funding Model" is also based upon the cash flow funding concept. The initial reserve assessment is set at the association s current fiscal year funding level and a 30-year projection is calculated to illustrate the adequacy of the current funding over time. PROPERTY INFORMATION ORIGINAL STARTING DATE OF RESERVE STUDY: This reserve study was prepared for the fiscal year October 1, 2015 and ending September 30, Unless otherwise indicated, we have used May 29, 1967 to begin aging the original components in this reserve study. NUMBER OF UNITS/LOTS & LOCATION: This reserve study is a total of 250 units located in Birkenfeld, Oregon. DATE OF LAST RESERVE STUDY: (if applicable) ReserveStudyUpdate.com, LLC was completed on April 27, The last on-site physical analysis done by NOTE: All interest accrued from reserve savings account(s) must remain in the reserve savings account(s) and not used as an off-set for operating expenses. Income tax factors were not considered due to variables affecting net taxable income and the election of tax form to be filed. RESERVE FUNDS ON HAND: For the purpose of this reserve study, it is anticipated that the association will have a projected beginning reserve balance of $610,000 as of October 1, The actual or projected (estimated) total presented in this reserve study is based upon information provided to ReserveStudyUpdate.com, LLC and was not audited. FUNDING REQUIRED: The reserve study has an annual contribution increase of 3.00% per year. INFLATION RATE: An inflation rate of 2.30% was used for all thirty years of the reserve study report. This is based on an equally weighted ten-year historical inflation rate average. THE NATIONAL PERCENT FUNDED RATING IN THE RESERVE STUDY INDUSTRY IS: 0% to 29.99% - Poor 30% to 69.99% - Fair 70% to 100% - Good This association is 70.16% funded the end of the first fiscal year contingent that the funding model described in this section is implemented. PAGE 2-1

17 ReserveStudyUpdate.com, LLC Current Funding Model - Executive Summary DISCLOSURES GENERAL: Fishhawk Lake Resource and Community, Inc. and ReserveStudyUpdate.com, LLC have no professional or personal involvements with each other, other than the scope of work identified in the reserve study contract. This relationship cannot be perceived as a conflict of interest. This reserve study is for budget and planning purposes and identifies the status of the reserve fund and schedules the anticipated major commonly owned item replacements in accordance with Oregon State Law(s). This reserve study will estimate the expected useful life and remaining useful life of the building and site components or systems, and will provide an estimate replacement or refurbishment cost for those components or systems. PHYSICAL ANALYSIS: If an on-site reserve study was performed observations were limited to visual observations only. Destructive testing (invasive testing) was not performed. Any items that were not clearly visible at the time of the site observation were not viewed, and therefore were not included in the drafting of this reserve study. A grand total of 53 assets were included in this reserve study report; of these considered, 50 were funded and 3 components were unfunded. Often times components not funded are estimated to be outside the scope of the thirty year scope of the reserve study; while other components are sometimes omitted by property management, association representative, and/or Declarant. MEASUREMENTS: Measuring and inventory (+/- 10%) were identified via a combination of onsite physical measurements, previous reserve study and/or drawing take-offs. Drawing sets (if used) were provided by the property manager, Board of Directors or Declarant for our use relating only to the reserve study scope of work. RELIANCE ON CLIENT DATA: Data received from property management, Association Representatives and/or Declarant is deemed reliable by ReserveStudyUpdate.com, LLC. Such data may include financial information, physical deficiencies or physical conditions, quantity of physical assets, or historical issues. Financial information received from property management, Association Representative, Declarant was not audited for accuracy. The Association needs to carefully review each line item in the reports to be certain corrections are made from information you may possess that we are not aware of. It is assumed in our reserve study, no work, or expenditures from the reserve funds will occurred for the balance of the fiscal year. If this is not correct, you need to let ReserveStudyUpdate.com, LLC know what extra work was done and how much money will be spent. SCOPE OF RESERVE STUDY: The Reserve Study is a reflection of information provided to the Consultant and assembled for the Association's use, not for the purpose of performing an audit, quality/forensic analysis, or background checks of historical records. Report Version 8. PAGE 2-2

18 Birkenfeld, Oregon ReserveStudyUpdate.com, LLC Current Assessment Funding Model Summary Report Date June 17, 2015 Account Number 733 Version 8 Budget Year Beginning October 01, 2015 Budget Year Ending September 30, 2016 Total Units 250 Phase Development 1 of 1 Report Parameters Inflation 2.30% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 0.40% 2015 Beginning Balance $610, Current Assessment Funding Model Summary of Calculations Required Month Contribution $6, $25.00 per unit monthly Average Net Month Interest Earned $ Total Month Allocation to Reserves $6, $25.69 per unit monthly PAGE 2-3

19 ReserveStudyUpdate.com, LLC Current Assessment Funding Model Projection Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Beginning Balance: $610,000 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribution Interest Expenditures Reserves Reserves Funded ,295,650 75,000 2, , , ,182 70% ,325,450 77,250 2,147 58, , ,677 71% ,355,936 79,567 2,387 20, , ,521 72% ,387,122 81,955 2,640 20, , ,871 74% ,419,026 84,413 2,708 68, , ,017 74% ,451,663 86,946 2,854 51, ,032 1,021,702 74% ,485,052 89,554 2, , ,614 1,020,044 73% ,519,208 92,241 3,115 15, ,726 1,109,729 74% ,554,150 95,008 3, , ,930 1,094,863 73% ,589,895 97,858 3,140 66, ,542 1,144,315 73% ,626, , , , ,940 39% ,663, , , , ,246 44% ,702, ,932 1,027 65, , ,972 48% ,741, ,140 1,368 24, , ,155 54% ,781, ,444 1, , , ,601 48% ,822, ,848 1,142 95, , ,231 49% ,864, ,353 1,498 31, , ,134 55% ,907, ,964 1, , , ,873 56% ,950, ,682 1,835 55, , ,074 59% ,995, ,513 2,295 16, , ,020 64% ,041, ,458 1, , , ,613 60% ,088, ,522 1, , , ,234 59% ,136, ,708 2,246 32, , ,410 63% ,185, ,019 2,545 73, ,406 1,066,517 66% ,236, ,460 2,922 58, ,934 1,162,257 69% ,287, ,033 2, , ,235 1,172,355 69% ,340, ,744 3,389 54, ,236 1,281,302 72% ,394, ,597 3,965 24,021 1,069,777 1,425,996 75% ,449, ,595 4,305 88,369 1,157,308 1,512,873 76% ,505, ,742 4,715 76,382 1,262,383 1,617,682 78% PAGE 2-4

20 ReserveStudyUpdate.com, LLC Current Assessment Funding Model vs Fully Funded Chart The Current Assessment Funding Model is based on the current annual assessment, parameters, and reserve fund balance. Because it is calculated using the current annual assessment, it will give the accurate projection of how well the association is funded for the next 30 years of planned reserve expenditures. PAGE 2-5

21 ReserveStudyUpdate.com, LLC Current Funding Model - Component Summary by Category Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Streets/Asphalt Asphalt: Overlay 436, ,593 1, ,158 Asphalt: Seal Coat & Repairs 39, , ,780 Streets/Asphalt - Total $476,727 $234,373 $1,742 $258,938 Roofing Roof Assemblies 24, , ,724 Roofing - Total $24,470 $22,724 $90 $22,724 Fencing/Security Fence: Tennis Court 10, , ,666 Fencing/Security - Total $10,696 $7,666 $19 $7,666 Recreation Playground Equipment: Replace 1, Tennis Court: Resurface 9, , ,859 Recreation - Total $10,943 $6,299 $38 $6,299 Equipment Backhoe 50, , ,000 Dredger 188, , ,143 Truck: 1992 Ford F-250 (Newer Make & Model) 15, , ,250 Truck: 2005 Chevy Colorado (Newer Make & Model) 19, ,750 Welder / Generator: Replace 3, ,432 Zero Turn Mower: (Capital Upgrade) 9, , ,200 Equipment - Total $285,921 $71,450 $1,447 $186,775 Building Components Decks: Clubhouse 30, ,000 Siding: Plywood 13, , ,980 Windows & Doors: Phased Replacement 4, , ,983 Building Components - Total $48,045 $12,963 $130 $14,963 PAGE 2-6

22 ReserveStudyUpdate.com, LLC Current Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Fire Extinguishers Fire Hydrants unfunded Mailboxes Mailboxes: Replace 8, , ,036 Mailboxes - Total $8,036 $8,036 $25 $8,036 Tree Trimming Arborist: Tree Work 15, , ,000 Tree Trimming - Total $15,345 $12,000 $180 $12,000 Underground Utilities Backflow Devices unfunded Bridges Bridge: Wood - Island Drive - Replace 93, , ,734 Bridge: Wood - North Shore Drive - Replace 145, ,992 Bridges - Total $238,414 $52,734 $813 $110,726 Dam Drain Valve: Dam 26, , ,000 Dam - Total $26,000 $26,000 $82 $26,000 Dredging Dredging: Spoils Pond 32, , ,000 Dredging - Total $32,857 $18,000 $198 $18,000 Wastewater Management Lift Station: Rebuild - Station 1 31, ,583 Lift Station: Rebuild - Station 2 36, ,292 Lift Station: Rebuild - Station 3 42, ,833 Lift Station: Rebuild - Station 4 48, ,861 Piping, Concrete, Partial Replacements - Sewage Treatment 7, , ,478 Pumps: Lift Station - Phase 1 3, , ,000 Pumps: Lift Station - Phase 2 3, , ,625 Pumps: Lift Station - Phase 3 3, , ,250 Pumps: Lift Station - Phase 4 3, , ,875 Pumps: Lift Station - Phase 5 3, , ,500 PAGE 2-7

23 ReserveStudyUpdate.com, LLC Current Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Wastewater Management continued... Pumps: Lift Station - Phase 6 3, , ,125 Pumps: Lift Station - Phase 7 3, Pumps: Lift Station - Phase 8 3, Rip Rap: Sewage Treatment Plant Shore 12, ,667 Settlement Lagoon (Removed) unfunded Sewage Treatment Plant: Replace/Rebuild 49, , ,793 Sewage Treatment Plant: Upgrades 32, , ,736 Wastewater Management - Total $286,633 $81,507 $852 $116,743 Concrete Concrete Repairs: Spillway, Wier, Fish Ladder 56, , ,637 Concrete - Total $56,616 $29,637 $237 $29,637 Water Treatment Filtration System: Package Unit 35, ,500 Laboratory Equipment: Phased Replacement 6, , ,600 Piping, Concrete, Partial Replacements - Water Treatment 7, , ,478 Pumps: Effluent - Clearwell #1 9, Pumps: Effluent - Clearwell #2 8, , ,000 Water Treatment - Total $66,618 $18,878 $319 $31,378 Clubhouse Appliances & Furniture: Phased Replacements 1, Interior Renovation: Phased Renovation 2, , ,200 Clubhouse - Total $3,774 $1,762 $36 $1,762 Docks Docks: Replace - Phase 1 2, , ,700 Docks: Replace - Phase 2 2, , ,545 Docks: Replace - Phase 3 2, , ,417 Docks: Replace - Phase 4 2, , ,308 Docks: Replace - Phase 5 2, ,214 Docks - Total $11,750 $5,970 $41 $7,184 PAGE 2-8

24 ReserveStudyUpdate.com, LLC Current Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Grand Total: $1,602,845 $610,000 $6,250 $858,832 Percent Fully Funded 71% Current Average Liability per Unit (Total Units: 250) -$995 PAGE 2-9

25 ReserveStudyUpdate.com, LLC Current Funding Model - Capital vs Non-Capital Summary Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Filtration System: Package Unit 35, ,500 Capital Appliances & Furniture: Phased Replacements 1, Asphalt: Overlay 436, ,593 1, ,158 Backflow Devices unfunded Backhoe 50, , ,000 Bridge: Wood - Island Drive - Replace 93, , ,734 Bridge: Wood - North Shore Drive - Replace 145, ,992 Concrete Repairs: Spillway, Wier, Fish Ladder 56, , ,637 Decks: Clubhouse 30, ,000 Docks: Replace - Phase 1 2, , ,700 Docks: Replace - Phase 2 2, , ,545 Docks: Replace - Phase 3 2, , ,417 Docks: Replace - Phase 4 2, , ,308 Docks: Replace - Phase 5 2, ,214 Drain Valve: Dam 26, , ,000 Dredger 188, , ,143 Fence: Tennis Court 10, , ,666 Fire Hydrants unfunded Laboratory Equipment: Phased Replacement 6, , ,600 Lift Station: Rebuild - Station 1 31, ,583 Lift Station: Rebuild - Station 2 36, ,292 Lift Station: Rebuild - Station 3 42, ,833 Lift Station: Rebuild - Station 4 48, ,861 Mailboxes: Replace 8, , ,036 Piping, Concrete, Partial Replacements - Sewage Treatment 7, , ,478 Piping, Concrete, Partial Replacements - Water Treatment 7, , ,478 Playground Equipment: Replace 1, Pumps: Effluent - Clearwell #1 9, Pumps: Effluent - Clearwell #2 8, , ,000 Pumps: Lift Station - Phase 1 3, , ,000 PAGE 2-10

26 ReserveStudyUpdate.com, LLC Current Funding Model - Capital vs Non-Capital Summary Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Capital continued... Pumps: Lift Station - Phase 2 3, , ,625 Pumps: Lift Station - Phase 3 3, , ,250 Pumps: Lift Station - Phase 4 3, , ,875 Pumps: Lift Station - Phase 5 3, , ,500 Pumps: Lift Station - Phase 6 3, , ,125 Pumps: Lift Station - Phase 7 3, Pumps: Lift Station - Phase 8 3, Roof Assemblies 24, , ,724 Sewage Treatment Plant: Replace/Rebuild 49, , ,793 Sewage Treatment Plant: Upgrades 32, , ,736 Siding: Plywood 13, , ,980 Truck: 1992 Ford F-250 (Newer Make & Model) 15, , ,250 Truck: 2005 Chevy Colorado (Newer Make & Model) 19, ,750 Welder / Generator: Replace 3, ,432 Windows & Doors: Phased Replacement 4, , ,983 Zero Turn Mower: (Capital Upgrade) 9, , ,200 Capital - Total $1,455,408 $533,161 $5,174 $766,826 Non Capital Arborist: Tree Work 15, , ,000 Asphalt: Seal Coat & Repairs 39, , ,780 Dredging: Spoils Pond 32, , ,000 Interior Renovation: Phased Renovation 2, , ,200 Rip Rap: Sewage Treatment Plant Shore 12, ,667 Settlement Lagoon (Removed) unfunded Tennis Court: Resurface 9, , ,859 Non Capital - Total $112,275 $76,839 $951 $79,506 Grand Total: $1,602,845 $610,000 $6,250 $858,832 Percent Fully Funded 71% Current Average Liability per Unit (Total Units: 250) -$995 PAGE 2-11

27 ReserveStudyUpdate.com, LLC Threshold Funding Model - Executive Summary EXECUTIVE SUMMARY - THRESHOLD FUNDING MODEL THRESHOLD FUNDING MODEL OVERVIEW The "Threshold Funding Model" method is based upon the cash flow funding concept. The minimum reserve cash balance in threshold funding, however, is set at a predetermined dollar amount (other than $0). Threshold funding describes an objective chosen by the board other than the 100% (full funding) level or just staying cash-positive (baseline funding). This may be a specific percent funded target or a cash balance target. Threshold funding is often a value chosen in between full funding and baseline funding. PROPERTY INFORMATION ORIGINAL STARTING DATE OF RESERVE STUDY: This reserve study was prepared for the fiscal year October 1, 2015 and ending September 30, Unless otherwise indicated, we have used May 29, 1967 to begin aging the original components in this reserve study. NUMBER OF UNITS/LOTS & LOCATION: This reserve study is a total of 250 units located in Birkenfeld, Oregon. DATE OF LAST RESERVE STUDY: (if applicable) The last on-site physical analysis done was completed on April 27, NOTE: All interest accrued from reserve savings account(s) must remain in the reserve savings account(s) and not used as an off-set for operating expenses. Income tax factors were not considered due to variables affecting net taxable income and the election of tax form to be filed. RESERVE FUNDS ON HAND: For the purpose of this reserve study, it is anticipated that the association will have a projected beginning reserve balance of $610,000 as of October, The actual or projected (estimated) total presented in this reserve study is based upon information provided to ReserveStudyUpdate.com, LLC and was not audited. FUNDING REQUIRED: A minimum balance threshold of $211,733 has been used over the thirty years of this reserve study. The reserve study has an annual contribution increase of 3.00% per year. INFLATION RATE: An inflation rate of 2.30% was used for all thirty years of the reserve study report. This is based on an equally weighted ten-year historical inflation rate average. THE NATIONAL PERCENT FUNDED RATING IN THE RESERVE STUDY INDUSTRY IS: 0% to 29.99% - Poor 30% to 69.99% - Fair 70% to 100% - Good This association is 68.08% funded the end of the first fiscal year contingent that the funding model described in this section is implemented. PAGE 2-12

28 ReserveStudyUpdate.com, LLC Threshold Funding Model - Executive Summary DISCLOSURES GENERAL: Fishhawk Lake Resource and Community, Inc. and ReserveStudyUpdate.com, LLC have no professional or personal involvements with each other, other than the scope of work identified in the reserve study contract. This relationship cannot be perceived as a conflict of interest. This reserve study is for budget and planning purposes and identifies the status of the reserve fund and schedules the anticipated major commonly owned item replacements in accordance with Oregon State Law(s). This reserve study will estimate the expected useful life and remaining useful life of the building and site components or systems, and will provide an estimate replacement or refurbishment cost for those components or systems. PHYSICAL ANALYSIS: If an on-site reserve study was performed observations were limited to visual observations only. Destructive testing (invasive testing) was not performed. Any items that were not clearly visible at the time of the site observation were not viewed, and therefore were not included in the drafting of this reserve study. A grand total of 53 assets were included in this reserve study report; of these considered, 50 were funded and 3 components were unfunded. Often times components not funded are estimated to be outside the scope of the thirty year scope of the reserve study; while other components are sometimes omitted by property management, Association Representative, and/or Declarant. MEASUREMENTS: Measuring and inventory (+/- 10%) were identified via a combination of onsite physical measurements, previous reserve study and/or drawing take-offs. Drawing sets (if used) were provided by the property manager, Board of Directors or Declarant for our use relating only to the reserve study scope of work. RELIANCE ON CLIENT DATA: Data received from property management, Association Representatives and/or Declarant is deemed reliable by ReserveStudyUpdate.com, LLC. Such data may include financial information, physical deficiencies or physical conditions, quantity of physical assets, or historical issues. Financial information received from property management, association representative, Declarant was not audited for accuracy. The Association needs to carefully review each line item in the reports to be certain corrections are made from information you may possess that we are not aware of. It is assumed in our reserve study, no work, or expenditures from the reserve funds will occurred for the balance of the fiscal year. If this is not correct, you need to let ReserveStudyUpdate.com, LLC know what extra work was done and how much money will be spent. SCOPE OF RESERVE STUDY: The Reserve Study is a reflection of information provided to the Consultant and assembled for the Association's use, not for the purpose of performing an audit, quality/forensic analysis, or background checks of historical records. Report Version 8. PAGE 2-13

29 ReserveStudyUpdate.com, LLC Threshold Funding Model Summary Report Date June 17, 2015 Account Number 733 Version 8 Budget Year Beginning October 01, 2015 Budget Year Ending September 30, 2016 Total Units 250 Phase Development 1 of 1 Report Parameters Inflation 2.30% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 0.40% Contingency 3.00% 2015 Beginning Balance $610, Threshold Funding Model Summary of Calculations Required Month Contribution $6, $25.07 per unit monthly Average Net Month Interest Earned $ Total Month Allocation to Reserves $6, $25.76 per unit monthly PAGE 2-14

30 ReserveStudyUpdate.com, LLC Threshold Funding Model Projection Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Beginning Balance: $610,000 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribution Interest Expenditures Reserves Reserves Funded ,295,650 75,208 2, , , ,528 68% ,325,450 77,464 2,149 58, , ,781 69% ,355,936 79,788 2,389 20, , ,599 70% ,387,122 82,182 2,643 20, , ,124 72% ,419,026 84,647 2,712 68, ,199 1,004,142 72% ,451,663 87,186 2,859 51, ,392 1,053,301 72% ,485,052 89,802 2, , ,228 1,051,592 71% ,519,208 92,496 3,122 15, ,603 1,144,051 72% ,554,150 95,271 3, , ,078 1,128,725 71% ,589,895 98,129 3,149 66, ,970 1,179,706 71% ,626, , , , ,639 38% ,663, , , , ,748 43% ,702, ,228 1,040 65, , ,888 47% ,741, ,445 1,382 24, , ,861 52% ,781, ,759 1, , , ,124 47% ,822, ,171 1,159 95, , ,547 48% ,864, ,686 1,516 31, , ,324 54% ,907, ,307 1, , , ,581 55% ,950, ,036 1,856 55, , ,138 58% ,995, ,877 2,317 16, ,032 1,024,763 63% ,041, ,834 1, , , ,962 59% ,088, ,909 1, , , ,427 58% ,136, ,106 2,273 32, ,680 1,021,041 62% ,185, ,429 2,574 73, ,873 1,099,502 65% ,236, ,882 2,953 58, ,854 1,198,203 68% ,287, ,468 2, , ,622 1,208,614 68% ,340, ,192 3,423 54, ,106 1,320,930 71% ,394, ,058 4,001 24,021 1,079,145 1,470,099 73% ,449, ,070 4,344 88,369 1,167,190 1,559,662 75% ,505, ,232 4,756 76,382 1,272,796 1,667,713 76% PAGE 2-15

31 ReserveStudyUpdate.com, LLC Threshold Funding Model vs Fully Funded Chart The Threshold Funding Model calculates the minimum reserve assessments, with the restriction that the reserve balance is not allowed to go below $0 or other predetermined threshold, during the period of time examined. All funds for planned reserve expenditures will be available on the first day of each fiscal year. The Threshold Funding Model allows the client to choose the level of conservative funding they desire by choosing the threshold dollar amount. PAGE 2-16

32 ReserveStudyUpdate.com, LLC Threshold Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Streets/Asphalt Asphalt: Overlay 436, ,293 1, ,158 Asphalt: Seal Coat & Repairs 39, , ,780 Streets/Asphalt - Total $476,727 $216,073 $1,765 $258,938 Roofing Roof Assemblies 24, , ,724 Roofing - Total $24,470 $22,724 $87 $22,724 Fencing/Security Fence: Tennis Court 10, , ,666 Fencing/Security - Total $10,696 $7,666 $18 $7,666 Recreation Playground Equipment: Replace 1, Tennis Court: Resurface 9, , ,859 Recreation - Total $10,943 $6,299 $36 $6,299 Equipment Backhoe 50, , ,000 Dredger 188, ,143 Truck: 1992 Ford F-250 (Newer Make & Model) 15, , ,250 Truck: 2005 Chevy Colorado (Newer Make & Model) 19, ,750 Welder / Generator: Replace 3, ,432 Zero Turn Mower: (Capital Upgrade) 9, , ,200 Equipment - Total $285,921 $71,450 $1,385 $186,775 Building Components Decks: Clubhouse 30, ,000 Siding: Plywood 13, , ,980 Windows & Doors: Phased Replacement 4, , ,983 Building Components - Total $48,045 $12,963 $125 $14,963 Fire Extinguishers Fire Hydrants unfunded PAGE 2-17

33 ReserveStudyUpdate.com, LLC Threshold Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Mailboxes Mailboxes: Replace 8, , ,036 Mailboxes - Total $8,036 $8,036 $24 $8,036 Tree Trimming Arborist: Tree Work 15, , ,000 Tree Trimming - Total $15,345 $12,000 $173 $12,000 Underground Utilities Backflow Devices unfunded Bridges Bridge: Wood - Island Drive - Replace 93, , ,734 Bridge: Wood - North Shore Drive - Replace 145, ,992 Bridges - Total $238,414 $52,734 $778 $110,726 Dam Drain Valve: Dam 26, , ,000 Dam - Total $26,000 $26,000 $78 $26,000 Dredging Dredging: Spoils Pond 32, , ,000 Dredging - Total $32,857 $18,000 $189 $18,000 Wastewater Management Lift Station: Rebuild - Station 1 31, ,583 Lift Station: Rebuild - Station 2 36, ,292 Lift Station: Rebuild - Station 3 42, ,833 Lift Station: Rebuild - Station 4 48, ,861 Piping, Concrete, Partial Replacements - Sewage Treatment 7, , ,478 Pumps: Lift Station - Phase 1 3, , ,000 Pumps: Lift Station - Phase 2 3, , ,625 Pumps: Lift Station - Phase 3 3, , ,250 Pumps: Lift Station - Phase 4 3, , ,875 Pumps: Lift Station - Phase 5 3, , ,500 Pumps: Lift Station - Phase 6 3, , ,125 Pumps: Lift Station - Phase 7 3, Pumps: Lift Station - Phase 8 3, PAGE 2-18

34 ReserveStudyUpdate.com, LLC Threshold Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Wastewater Management continued... Rip Rap: Sewage Treatment Plant Shore 12, ,667 Settlement Lagoon (Removed) unfunded Sewage Treatment Plant: Replace/Rebuild 49, , ,793 Sewage Treatment Plant: Upgrades 32, , ,736 Wastewater Management - Total $286,633 $81,507 $816 $116,743 Concrete Concrete Repairs: Spillway, Wier, Fish Ladder 56, , ,637 Concrete - Total $56,616 $29,637 $227 $29,637 Water Treatment Filtration System: Package Unit 35, ,500 Laboratory Equipment: Phased Replacement 6, , ,600 Piping, Concrete, Partial Replacements - Water Treatment 7, , ,478 Pumps: Effluent - Clearwell #1 9, Pumps: Effluent - Clearwell #2 8, , ,000 Water Treatment - Total $66,618 $18,878 $305 $31,378 Clubhouse Appliances & Furniture: Phased Replacements 1, Interior Renovation: Phased Renovation 2, , ,200 Clubhouse - Total $3,774 $1,762 $35 $1,762 Docks Docks: Replace - Phase 1 2, , ,700 Docks: Replace - Phase 2 2, , ,545 Docks: Replace - Phase 3 2, , ,417 Docks: Replace - Phase 4 2, , ,308 Docks: Replace - Phase 5 2, ,214 Docks - Total $11,750 $5,970 $39 $7,184 PAGE 2-19

35 ReserveStudyUpdate.com, LLC Threshold Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Asset Summary Total: $1,602,845 $591,700 $6,079 $858,832 Contingency at 3.00% $18,300 $188 $26,562 Grand Total: $610,000 $6,267 $885,394 Percent Fully Funded 69% Current Average Liability per Unit (Total Units: 250) -$1,102 PAGE 2-20

36 ReserveStudyUpdate.com, LLC Threshold Funding Model - Capital vs Non-Capital Summary Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Filtration System: Package Unit 35, ,500 Capital Appliances & Furniture: Phased Replacements 1, Asphalt: Overlay 436, ,293 1, ,158 Backflow Devices unfunded Backhoe 50, , ,000 Bridge: Wood - Island Drive - Replace 93, , ,734 Bridge: Wood - North Shore Drive - Replace 145, ,992 Concrete Repairs: Spillway, Wier, Fish Ladder 56, , ,637 Decks: Clubhouse 30, ,000 Docks: Replace - Phase 1 2, , ,700 Docks: Replace - Phase 2 2, , ,545 Docks: Replace - Phase 3 2, , ,417 Docks: Replace - Phase 4 2, , ,308 Docks: Replace - Phase 5 2, ,214 Drain Valve: Dam 26, , ,000 Dredger 188, ,143 Fence: Tennis Court 10, , ,666 Fire Hydrants unfunded Laboratory Equipment: Phased Replacement 6, , ,600 Lift Station: Rebuild - Station 1 31, ,583 Lift Station: Rebuild - Station 2 36, ,292 Lift Station: Rebuild - Station 3 42, ,833 Lift Station: Rebuild - Station 4 48, ,861 Mailboxes: Replace 8, , ,036 Piping, Concrete, Partial Replacements - Sewage Treatment 7, , ,478 Piping, Concrete, Partial Replacements - Water Treatment 7, , ,478 Playground Equipment: Replace 1, Pumps: Effluent - Clearwell #1 9, Pumps: Effluent - Clearwell #2 8, , ,000 Pumps: Lift Station - Phase 1 3, , ,000 PAGE 2-21

37 ReserveStudyUpdate.com, LLC Threshold Funding Model - Capital vs Non-Capital Summary Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Capital continued... Pumps: Lift Station - Phase 2 3, , ,625 Pumps: Lift Station - Phase 3 3, , ,250 Pumps: Lift Station - Phase 4 3, , ,875 Pumps: Lift Station - Phase 5 3, , ,500 Pumps: Lift Station - Phase 6 3, , ,125 Pumps: Lift Station - Phase 7 3, Pumps: Lift Station - Phase 8 3, Roof Assemblies 24, , ,724 Sewage Treatment Plant: Replace/Rebuild 49, , ,793 Sewage Treatment Plant: Upgrades 32, , ,736 Siding: Plywood 13, , ,980 Truck: 1992 Ford F-250 (Newer Make & Model) 15, , ,250 Truck: 2005 Chevy Colorado (Newer Make & Model) 19, ,750 Welder / Generator: Replace 3, ,432 Windows & Doors: Phased Replacement 4, , ,983 Zero Turn Mower: (Capital Upgrade) 9, , ,200 Capital - Total $1,455,408 $514,861 $5,050 $766,826 Non Capital Arborist: Tree Work 15, , ,000 Asphalt: Seal Coat & Repairs 39, , ,780 Dredging: Spoils Pond 32, , ,000 Interior Renovation: Phased Renovation 2, , ,200 Rip Rap: Sewage Treatment Plant Shore 12, ,667 Settlement Lagoon (Removed) unfunded Tennis Court: Resurface 9, , ,859 Non Capital - Total $112,275 $76,839 $910 $79,506 Asset Summary Total: $1,602,845 $591,700 $6,079 $858,832 Contingency at 3.00% $18,300 $188 $26,562 Grand Total: $610,000 $6,267 $885,394 Percent Fully Funded 69% Current Average Liability per Unit (Total Units: 250) -$1,102 PAGE 2-22

38 ReserveStudyUpdate.com, LLC Component Funding Model - Executive Summary EXECUTIVE SUMMARY- COMPONENT FUNDING MODEL COMPONENT FUNDING MODEL OVERVIEW The "Component Funding Model" is a straight-line funding model, also known by the Full Funding Model. The objective of the model is to have on hand an amount of cash in the reserve account equal to the amount of depreciation that has occurred for each of the assets. It distributes the cash reserves to individual reserve components and then calculates what the reserve assessment and interest contribution (minus taxes) should be, again by each reserve component. The current annual assessment is then determined by summing all the individual component assessments, hence the name Component Funding Model. This is the most conservative funding model. It leads to or maintains the fully funded reserve position. "Full funding" describes the objective to have reserves on hand equivalent to the value of the deterioration of the each component in the reserve study. For example, for a $10,000 (current cost) pool resurface project with a useful life of ten years, after three years, when the pool's surface has deteriorated 3/10 of $10,000, to be fully funded the association should have $3000 set aside for this component (and on and on again for each component). "Full funding" describes an objective where ongoing deterioration is offset by the proportional accumulation of cash. One of the selling points that may be beneficial to Fishhawk Lake Resource and Community, Inc. is that the Component Funding Model compared to the other funding models is that the objective is to have an equal amount of cash on hand compared to the amount of depreciation that has occurred for each funded asset in the report. Funding models lacking a Full Funding criterion often result in funding strategies that shifts the burden of funding assets to future homeowners. Although the Association may be able to fund reserves perpetually employing such strategies, the Board of Directors should carefully consider the degree of risk that is acceptable to everyone. Multiple components which experience premature failure rates will likely result in special assessments which will ultimately burden current owners who have the misfortune of having a current ownership interest; while previous owners have avoided their financial responsibility. The "Component Funding Model" is recommended for Board of Directors who wish to mitigate this type of risk. PROPERTY INFORMATION ORIGINAL STARTING DATE OF RESERVE STUDY: This reserve study was prepared for the fiscal year October 1, 2015 and ending September 30, Unless otherwise indicated, we have used May, to begin aging the original components in this reserve study. NUMBER OF UNITS/LOTS & LOCATION: This reserve study is a total of 250 units located in Birkenfeld, Oregon. DATE OF LAST RESERVE STUDY: (if applicable) ReserveStudyUpdate.com, LLC was completed on April 27, The last on-site physical analysis done by NOTE: All interest accrued from reserve savings account(s) must remain in the reserve savings account(s) and not used as an off-set for operating expenses. Income tax factors were not considered due to variables affecting net taxable income and the election of tax form to be filed. PAGE 2-23

39 ReserveStudyUpdate.com, LLC Component Funding Model - Executive Summary RESERVE FUNDS ON HAND: For the purpose of this reserve study, it is anticipated that the association will have a projected beginning reserve balance of $610,000 as of October 1, The actual or projected (estimated) total presented in this reserve study is based upon information provided to ReserveStudyUpdate.com, LLC and was not audited. FUNDING REQUIRED: The reserve study has an annual contribution increase of 2.48% per year. INFLATION RATE: An inflation rate of 2.30% was used for all thirty years of the reserve study report. This is based on an equally weighted ten-year historical inflation rate average. THE NATIONAL PERCENT FUNDED RATING IN THE RESERVE STUDY INDUSTRY IS: 0% to 29.99% - Poor 30% to 69.99% - Fair 70% to 100% - Good This association is 71.96% funded the end of the first fiscal year contingent that the funding model described in this section is implemented. DISCLOSURES GENERAL: Fishhawk Lake Resource and Community, Inc. and ReserveStudyUpdate.com, LLC have no professional or personal involvements with each other, other than the scope of work identified in the reserve study contract. This relationship cannot be perceived as a conflict of interest. This reserve study is for budget and planning purposes and identifies the status of the reserve fund and schedules the anticipated major commonly owned item replacements in accordance with Oregon State Law(s). This reserve study will estimate the expected useful life and remaining useful life of the building and site components or systems, and will provide an estimate replacement or refurbishment cost for those components or systems. PHYSICAL ANALYSIS: If an on-site reserve study was performed observations were limited to visual observations only. Destructive testing (invasive testing) was not performed. Any items that were not clearly visible at the time of the site observation were not viewed, and therefore were not included in the drafting of this reserve study. A grand total of 53 assets were included in this reserve study report; of these considered, 50 were funded and 3 components were unfunded. Often times components not funded are estimated to be outside the scope of the thirty year scope of the reserve study; while other components are sometimes omitted by property management, association representative, and/or Declarant. MEASUREMENTS: Measuring and inventory (+/- 10%) were identified via a combination of onsite physical measurements, previous reserve study and/or drawing take-offs. Drawing sets (if used) were provided by the property manager, Board of Directors or Declarant for our use relating only to the reserve study scope of work. RELIANCE ON CLIENT DATA: Data received from property management, Association Representatives and/or Declarant is deemed reliable by ReserveStudyUpdate.com, LLC. Such data may include financial information, PAGE 2-24

40 ReserveStudyUpdate.com, LLC Component Funding Model - Executive Summary physical deficiencies or physical conditions, quantity of physical assets, or historical issues. Financial information received from property management, Association Representative, Declarant was not audited for accuracy. The Association needs to carefully review each line item in the reports to be certain corrections are made from information you may possess that we are not aware of. It is assumed in our reserve study, no work, or expenditures from the reserve funds will occurred for the balance of the fiscal year. If this is not correct, you need to let ReserveStudyUpdate.com, LLC know what extra work was done and how much money will be spent. SCOPE OF RESERVE STUDY: The Reserve Study is a reflection of information provided to the Consultant and assembled for the Association's use, not for the purpose of performing an audit, quality/forensic analysis, or background checks of historical records. Report Version 8. PAGE 2-25

41 ReserveStudyUpdate.com, LLC Component Funding Model Summary Report Date June 17, 2015 Account Number 733 Version 8 Budget Year Beginning October 01, 2015 Budget Year Ending September 30, 2016 Total Units 250 Phase Development 1 of 1 Report Parameters Inflation 2.30% Interest Rate on Reserve Deposit 0.40% Contingency 3.00% 2015 Beginning Balance $610, Component Funding Model Summary of Calculations Required Month Contribution $8, $35.55 per unit monthly Average Net Month Interest Earned $ Total Month Allocation to Reserves $9, $36.26 per unit monthly PAGE 2-26

42 ReserveStudyUpdate.com, LLC Component Funding Model Projection Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Beginning Balance: $610,000 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribution Interest Expenditures Reserves Reserves Funded ,295, ,657 2, , , ,528 72% ,325, ,819 2,341 58, , ,781 76% ,355, ,037 2,699 20, , ,599 80% ,387, ,762 3,068 20, , ,124 84% ,419, ,417 3,253 68, ,140 1,004,142 86% ,451, ,160 3,517 51, ,964 1,053,301 89% ,485, ,155 3, , ,922 1,051,592 90% ,519, ,737 3,999 15,243 1,056,415 1,144,051 92% ,554, ,439 4, ,810 1,058,044 1,128,725 94% ,589, ,867 4,264 66,386 1,129,789 1,179,706 96% ,626, ,815 1, , , ,639 96% ,663, ,015 2,227 49, , , % ,702, ,960 2,494 65, , , % ,741, ,352 2,908 24, , , % ,781, ,448 2, , , , % ,822, ,813 2,760 95, , , % ,864, ,199 3,141 31, , , % ,907, ,390 3, , , , % ,950, ,504 3,533 55, , , % ,995, ,557 3,987 16,945 1,055,581 1,024, % ,041, ,671 3, , , , % ,088, ,037 3, , , , % ,136, ,185 3,976 32,983 1,062,327 1,021, % ,185, ,907 4,278 73,810 1,138,702 1,099, % ,236, ,244 4,636 58,853 1,226,729 1,198, % ,287, ,098 4, ,687 1,240,801 1,208, % ,340, ,056 5,105 54,132 1,352,829 1,320, % ,394, ,943 5,676 24,021 1,496,428 1,470, % ,449, ,994 6,016 88,369 1,586,069 1,559, % ,505, ,503 6,420 76,382 1,686,609 1,667, % PAGE 2-27

43 ReserveStudyUpdate.com, LLC Component Funding Model vs Fully Funded Chart The Component Funding Model s long-term objective is to provide a plan to a fully funded reserve position over the longest period of time practical. This is the most conservative funding model. PAGE 2-28

44 ReserveStudyUpdate.com, LLC Component Funding Model Assessment & Category Summary Description Replacement Year Life Useful Adjustment Remaining Life Cost Current Assigned Reserves Fully Funded Streets/Asphalt Asphalt: Overlay , , ,158 Asphalt: Seal Coat & Repairs ,780 39,780 39,780 Streets/Asphalt - Total $387,855 $216,073 $258,938 Roofing Roof Assemblies ,920 22,724 22,724 Roofing - Total $23,920 $22,724 $22,724 Fencing/Security Fence: Tennis Court ,917 7,666 7,666 Fencing/Security - Total $8,917 $7,666 $7,666 Recreation Playground Equipment: Replace , Tennis Court: Resurface ,370 5,859 5,859 Recreation - Total $9,470 $6,299 $6,299 Equipment Backhoe ,000 50,000 50,000 Dredger , ,143 Truck: 1992 Ford F-250 (Newer Make & Model) ,000 14,250 14,250 Truck: 2005 Chevy Colorado (Newer Make & Model) , ,750 Welder / Generator: Replace , ,432 Zero Turn Mower: (Capital Upgrade) ,000 7,200 7,200 Equipment - Total $241,864 $71,450 $186,775 Building Components Decks: Clubhouse , ,000 Siding: Plywood ,045 9,980 9,980 Windows & Doors: Phased Replacement ,600 2,983 2,983 Building Components - Total $35,643 $12,963 $14,963 Fire Extinguishers Fire Hydrants Unfunded Mailboxes Mailboxes: Replace ,036 8,036 8,036 Mailboxes - Total $8,036 $8,036 $8,036 PAGE 2-29

45 ReserveStudyUpdate.com, LLC Component Funding Model Assessment & Category Summary Description Replacement Year Life Useful Adjustment Remaining Life Cost Current Assigned Reserves Fully Funded Tree Trimming Arborist: Tree Work ,000 12,000 12,000 Tree Trimming - Total $15,000 $12,000 $12,000 Underground Utilities Backflow Devices Unfunded Bridges Bridge: Wood - Island Drive - Replace ,550 52,734 52,734 Bridge: Wood - North Shore Drive - Replace , ,992 Bridges - Total $183,300 $52,734 $110,726 Dam Drain Valve: Dam ,000 26,000 26,000 Dam - Total $26,000 $26,000 $26,000 Dredging Dredging: Spoils Pond ,000 18,000 18,000 Dredging - Total $30,000 $18,000 $18,000 Wastewater Management Lift Station: Rebuild - Station , ,583 Lift Station: Rebuild - Station , ,292 Lift Station: Rebuild - Station , ,833 Lift Station: Rebuild - Station , ,861 Piping, Concrete, Partial Replacements - Sewage Treatment ,875 6,478 6,478 Pumps: Lift Station - Phase ,000 3,000 3,000 Pumps: Lift Station - Phase ,000 2,625 2,625 Pumps: Lift Station - Phase ,000 2,250 2,250 Pumps: Lift Station - Phase ,000 1,875 1,875 Pumps: Lift Station - Phase ,000 1,500 1,500 Pumps: Lift Station - Phase ,000 1,125 1,125 Pumps: Lift Station - Phase , Pumps: Lift Station - Phase , Rip Rap: Sewage Treatment Plant Shore , ,667 Settlement Lagoon (Removed) Unfunded Sewage Treatment Plant: Replace/Rebuild ,000 33,793 33,793 Sewage Treatment Plant: Upgrades ,000 27,736 27,736 Wastewater Management - Total $208,875 $81,507 $116,743 PAGE 2-30

46 ReserveStudyUpdate.com, LLC Component Funding Model Assessment & Category Summary Description Replacement Year Life Useful Adjustment Remaining Life Cost Current Assigned Reserves Fully Funded Concrete Concrete Repairs: Spillway, Wier, Fish Ladder ,395 29,637 29,637 Concrete - Total $49,395 $29,637 $29,637 Water Treatment Filtration System: Package Unit , ,500 Laboratory Equipment: Phased Replacement ,000 3,600 3,600 Piping, Concrete, Partial Replacements - Water Treatment ,875 6,478 6,478 Pumps: Effluent - Clearwell # , Pumps: Effluent - Clearwell # ,000 8,000 8,000 Water Treatment - Total $53,875 $18,878 $31,378 Clubhouse Appliances & Furniture: Phased Replacements , Interior Renovation: Phased Renovation ,000 1,200 1,200 Clubhouse - Total $3,500 $1,762 $1,762 Docks Docks: Replace - Phase ,000 1,700 1,700 Docks: Replace - Phase ,000 1,545 1,545 Docks: Replace - Phase ,000 1,417 1,417 Docks: Replace - Phase ,000 1,308 1,308 Docks: Replace - Phase , ,214 Docks - Total $10,000 $5,970 $7,184 Total Asset Summary $1,295,650 $591,700 $858,832 Contingency at 3.00% $18,300 $26,562 Summary Total $610,000 $885,394 Percent Fully Funded 69% Current Average Liability per Unit (Total Units: 250) -$1,102 PAGE 2-31

47 ReserveStudyUpdate.com, LLC Component Funding Model - Component Summary by Category Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Streets/Asphalt Asphalt: Overlay 436, ,293 1, ,158 Asphalt: Seal Coat & Repairs 39, , ,780 Streets/Asphalt - Total $476,727 $216,073 $2,581 $258,938 Roofing Roof Assemblies 24, , ,724 Roofing - Total $24,470 $22,724 $127 $22,724 Fencing/Security Fence: Tennis Court 10, , ,666 Fencing/Security - Total $10,696 $7,666 $26 $7,666 Recreation Playground Equipment: Replace 1, Tennis Court: Resurface 9, , ,859 Recreation - Total $10,943 $6,299 $53 $6,299 Equipment Backhoe 50, , ,000 Dredger 188, , ,143 Truck: 1992 Ford F-250 (Newer Make & Model) 15, , ,250 Truck: 2005 Chevy Colorado (Newer Make & Model) 19, ,750 Welder / Generator: Replace 3, ,432 Zero Turn Mower: (Capital Upgrade) 9, , ,200 Equipment - Total $285,921 $71,450 $2,025 $186,775 Building Components Decks: Clubhouse 30, ,000 Siding: Plywood 13, , ,980 Windows & Doors: Phased Replacement 4, , ,983 Building Components - Total $48,045 $12,963 $182 $14,963 PAGE 2-32

48 ReserveStudyUpdate.com, LLC Component Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Fire Extinguishers Fire Hydrants unfunded Mailboxes Mailboxes: Replace 8, , ,036 Mailboxes - Total $8,036 $8,036 $35 $8,036 Tree Trimming Arborist: Tree Work 15, , ,000 Tree Trimming - Total $15,345 $12,000 $252 $12,000 Underground Utilities Backflow Devices unfunded Bridges Bridge: Wood - Island Drive - Replace 93, , ,734 Bridge: Wood - North Shore Drive - Replace 145, ,992 Bridges - Total $238,414 $52,734 $1,138 $110,726 Dam Drain Valve: Dam 26, , ,000 Dam - Total $26,000 $26,000 $114 $26,000 Dredging Dredging: Spoils Pond 32, , ,000 Dredging - Total $32,857 $18,000 $277 $18,000 Wastewater Management Lift Station: Rebuild - Station 1 31, ,583 Lift Station: Rebuild - Station 2 36, ,292 Lift Station: Rebuild - Station 3 42, ,833 Lift Station: Rebuild - Station 4 48, ,861 Piping, Concrete, Partial Replacements - Sewage Treatment 7, , ,478 Pumps: Lift Station - Phase 1 3, , ,000 Pumps: Lift Station - Phase 2 3, , ,625 Pumps: Lift Station - Phase 3 3, , ,250 Pumps: Lift Station - Phase 4 3, , ,875 Pumps: Lift Station - Phase 5 3, , ,500 PAGE 2-33

49 ReserveStudyUpdate.com, LLC Component Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Wastewater Management continued... Pumps: Lift Station - Phase 6 3, , ,125 Pumps: Lift Station - Phase 7 3, Pumps: Lift Station - Phase 8 3, Rip Rap: Sewage Treatment Plant Shore 12, ,667 Settlement Lagoon (Removed) unfunded Sewage Treatment Plant: Replace/Rebuild 49, , ,793 Sewage Treatment Plant: Upgrades 32, , ,736 Wastewater Management - Total $286,633 $81,507 $1,192 $116,743 Concrete Concrete Repairs: Spillway, Wier, Fish Ladder 56, , ,637 Concrete - Total $56,616 $29,637 $331 $29,637 Water Treatment Filtration System: Package Unit 35, ,500 Laboratory Equipment: Phased Replacement 6, , ,600 Piping, Concrete, Partial Replacements - Water Treatment 7, , ,478 Pumps: Effluent - Clearwell #1 9, Pumps: Effluent - Clearwell #2 8, , ,000 Water Treatment - Total $66,618 $18,878 $447 $31,378 Clubhouse Appliances & Furniture: Phased Replacements 1, Interior Renovation: Phased Renovation 2, , ,200 Clubhouse - Total $3,774 $1,762 $51 $1,762 Docks Docks: Replace - Phase 1 2, , ,700 Docks: Replace - Phase 2 2, , ,545 Docks: Replace - Phase 3 2, , ,417 Docks: Replace - Phase 4 2, , ,308 Docks: Replace - Phase 5 2, ,214 Docks - Total $11,750 $5,970 $57 $7,184 PAGE 2-34

50 ReserveStudyUpdate.com, LLC Component Funding Model - Component Summary by Category Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Asset Summary Total: $1,602,845 $591,700 $8,888 $858,832 Contingency at 3.00% $18,300 $275 $26,562 Grand Total: $610,000 $9,163 $885,394 Percent Fully Funded 69% Current Average Liability per Unit (Total Units: 250) -$1,102 PAGE 2-35

51 ReserveStudyUpdate.com, LLC Component Funding Model - Capital vs Non-Capital Summary Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Filtration System: Package Unit 35, ,500 Capital Appliances & Furniture: Phased Replacements 1, Asphalt: Overlay 436, ,293 1, ,158 Backflow Devices unfunded Backhoe 50, , ,000 Bridge: Wood - Island Drive - Replace 93, , ,734 Bridge: Wood - North Shore Drive - Replace 145, ,992 Concrete Repairs: Spillway, Wier, Fish Ladder 56, , ,637 Decks: Clubhouse 30, ,000 Docks: Replace - Phase 1 2, , ,700 Docks: Replace - Phase 2 2, , ,545 Docks: Replace - Phase 3 2, , ,417 Docks: Replace - Phase 4 2, , ,308 Docks: Replace - Phase 5 2, ,214 Drain Valve: Dam 26, , ,000 Dredger 188, , ,143 Fence: Tennis Court 10, , ,666 Fire Hydrants unfunded Laboratory Equipment: Phased Replacement 6, , ,600 Lift Station: Rebuild - Station 1 31, ,583 Lift Station: Rebuild - Station 2 36, ,292 Lift Station: Rebuild - Station 3 42, ,833 Lift Station: Rebuild - Station 4 48, ,861 Mailboxes: Replace 8, , ,036 Piping, Concrete, Partial Replacements - Sewage Treatment 7, , ,478 Piping, Concrete, Partial Replacements - Water Treatment 7, , ,478 Playground Equipment: Replace 1, Pumps: Effluent - Clearwell #1 9, Pumps: Effluent - Clearwell #2 8, , ,000 Pumps: Lift Station - Phase 1 3, , ,000 PAGE 2-36

52 ReserveStudyUpdate.com, LLC Component Funding Model - Capital vs Non-Capital Summary Description Future Cost Life Useful Remaining Life Adjustment Distribution Required Contribution Ideally Funded Capital continued... Pumps: Lift Station - Phase 2 3, , ,625 Pumps: Lift Station - Phase 3 3, , ,250 Pumps: Lift Station - Phase 4 3, , ,875 Pumps: Lift Station - Phase 5 3, , ,500 Pumps: Lift Station - Phase 6 3, , ,125 Pumps: Lift Station - Phase 7 3, Pumps: Lift Station - Phase 8 3, Roof Assemblies 24, , ,724 Sewage Treatment Plant: Replace/Rebuild 49, , ,793 Sewage Treatment Plant: Upgrades 32, , ,736 Siding: Plywood 13, , ,980 Truck: 1992 Ford F-250 (Newer Make & Model) 15, , ,250 Truck: 2005 Chevy Colorado (Newer Make & Model) 19, ,750 Welder / Generator: Replace 3, ,432 Windows & Doors: Phased Replacement 4, , ,983 Zero Turn Mower: (Capital Upgrade) 9, , ,200 Capital - Total $1,455,408 $514,861 $7,383 $766,826 Non Capital Arborist: Tree Work 15, , ,000 Asphalt: Seal Coat & Repairs 39, , ,780 Dredging: Spoils Pond 32, , ,000 Interior Renovation: Phased Renovation 2, , ,200 Rip Rap: Sewage Treatment Plant Shore 12, ,667 Settlement Lagoon (Removed) unfunded Tennis Court: Resurface 9, , ,859 Non Capital - Total $112,275 $76,839 $1,331 $79,506 Asset Summary Total: $1,602,845 $591,700 $8,888 $858,832 Contingency at 3.00% $18,300 $275 $26,562 Grand Total: $610,000 $9,163 $885,394 Percent Fully Funded 69% Current Average Liability per Unit (Total Units: 250) -$1,102 PAGE 2-37

53 ReserveStudyUpdate.com, LLC Annual Expenditure Detail Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Description Expenditures Replacement Year Asphalt: Seal Coat & Repairs 39,780 Backhoe 50,000 Drain Valve: Dam 26,000 Mailboxes: Replace 8,036 Pumps: Effluent - Clearwell #2 8,000 Pumps: Lift Station - Phase 1 3,000 Total for $134,816 Replacement Year Arborist: Tree Work 15,345 Pumps: Lift Station - Phase 2 3,069 Roof Assemblies 24,470 Truck: 1992 Ford F-250 (Newer Make & Model) 15,345 Total for $58,229 Replacement Year Interior Renovation: Phased Renovation 2,093 Laboratory Equipment: Phased Replacement 6,279 Pumps: Lift Station - Phase 3 3,140 Zero Turn Mower: (Capital Upgrade) 9,419 Total for $20,931 Replacement Year Docks: Replace - Phase 1 2,141 Piping, Concrete, Partial Replacements - Sewage Treatment 7,360 Piping, Concrete, Partial Replacements - Water Treatment 7,360 Pumps: Lift Station - Phase 4 3,212 Total for $20,074 Replacement Year Dredging: Spoils Pond 32,857 PAGE 2-38

54 ReserveStudyUpdate.com, LLC Annual Expenditure Detail Description Expenditures Replacement Year continued... Pumps: Lift Station - Phase 5 3,286 Sewage Treatment Plant: Upgrades 32,857 Total for $68,999 Replacement Year Appliances & Furniture: Phased Replacements 1,681 Asphalt: Seal Coat & Repairs 44,570 Docks: Replace - Phase 2 2,241 Pumps: Lift Station - Phase 6 3,361 Total for $51,853 Replacement Year Arborist: Tree Work 17,193 Concrete Repairs: Spillway, Wier, Fish Ladder 56,616 Pumps: Lift Station - Phase 7 3,439 Siding: Plywood 13,806 Tennis Court: Resurface 9,594 Windows & Doors: Phased Replacement 4,126 Total for $104,773 Replacement Year Docks: Replace - Phase 3 2,345 Interior Renovation: Phased Renovation 2,345 Laboratory Equipment: Phased Replacement 7,035 Pumps: Lift Station - Phase 8 3,518 Total for $15,243 Replacement Year Bridge: Wood - Island Drive - Replace 93,022 Fence: Tennis Court 10,696 Piping, Concrete, Partial Replacements - Sewage Treatment 8,247 Piping, Concrete, Partial Replacements - Water Treatment 8,247 Pumps: Lift Station - Phase 1 3,599 Total for $123,810 PAGE 2-39

55 ReserveStudyUpdate.com, LLC Annual Expenditure Detail Description Expenditures Replacement Year Docks: Replace - Phase 4 2,454 Playground Equipment: Replace 1,350 Pumps: Effluent - Clearwell #1 9,817 Pumps: Lift Station - Phase 2 3,681 Sewage Treatment Plant: Replace/Rebuild 49,084 Total for $66,386 Replacement Year Asphalt: Overlay 436,947 Asphalt: Seal Coat & Repairs 49,937 Dredger 188,299 Lift Station: Rebuild - Station 1 31,383 Pumps: Effluent - Clearwell #2 10,043 Pumps: Lift Station - Phase 3 3,766 Welder / Generator: Replace 3,595 Total for $723,970 Replacement Year Arborist: Tree Work 19,263 Docks: Replace - Phase 5 2,568 Pumps: Lift Station - Phase 4 3,853 Truck: 2005 Chevy Colorado (Newer Make & Model) 19,263 Windows & Doors: Phased Replacement 4,623 Total for $49,570 Replacement Year Interior Renovation: Phased Renovation 2,627 Laboratory Equipment: Phased Replacement 7,882 Pumps: Lift Station - Phase 5 3,941 Sewage Treatment Plant: Upgrades 39,412 Zero Turn Mower: (Capital Upgrade) 11,824 Total for $65,687 Replacement Year Appliances & Furniture: Phased Replacements 2,016 PAGE 2-40

56 ReserveStudyUpdate.com, LLC Annual Expenditure Detail Description Expenditures Replacement Year continued... Piping, Concrete, Partial Replacements - Sewage Treatment 9,240 Piping, Concrete, Partial Replacements - Water Treatment 9,240 Pumps: Lift Station - Phase 6 4,032 Total for $24,527 Replacement Year Bridge: Wood - North Shore Drive - Replace 145,392 Dredging: Spoils Pond 41,246 Pumps: Lift Station - Phase 7 4,125 Total for $190,762 Replacement Year Asphalt: Seal Coat & Repairs 55,950 Filtration System: Package Unit 35,162 Pumps: Lift Station - Phase 8 4,219 Total for $95,331 Replacement Year Arborist: Tree Work 21,582 Pumps: Lift Station - Phase 1 4,316 Windows & Doors: Phased Replacement 5,180 Total for $31,079 Replacement Year Interior Renovation: Phased Renovation 2,944 Laboratory Equipment: Phased Replacement 8,832 Lift Station: Rebuild - Station 2 36,798 Pumps: Lift Station - Phase 2 4,416 Sewage Treatment Plant: Replace/Rebuild 58,877 Total for $111,866 Replacement Year Decks: Clubhouse 30,113 Piping, Concrete, Partial Replacements - Sewage Treatment 10,352 PAGE 2-41

57 ReserveStudyUpdate.com, LLC Annual Expenditure Detail Description Expenditures Replacement Year continued... Piping, Concrete, Partial Replacements - Water Treatment 10,352 Pumps: Lift Station - Phase 3 4,517 Total for $55,334 Replacement Year Pumps: Effluent - Clearwell #1 12,323 Pumps: Lift Station - Phase 4 4,621 Total for $16,945 Replacement Year Asphalt: Seal Coat & Repairs 62,687 Backhoe 78,792 Pumps: Effluent - Clearwell #2 12,607 Pumps: Lift Station - Phase 5 4,728 Rip Rap: Sewage Treatment Plant Shore 12,607 Sewage Treatment Plant: Upgrades 47,275 Total for $218,695 Replacement Year Appliances & Furniture: Phased Replacements 2,418 Arborist: Tree Work 24,181 Concrete Repairs: Spillway, Wier, Fish Ladder 79,629 Pumps: Lift Station - Phase 6 4,836 Roof Assemblies 38,561 Truck: 1992 Ford F-250 (Newer Make & Model) 24,181 Windows & Doors: Phased Replacement 5,804 Total for $179,611 Replacement Year Interior Renovation: Phased Renovation 3,298 Laboratory Equipment: Phased Replacement 9,895 Pumps: Lift Station - Phase 7 4,947 Zero Turn Mower: (Capital Upgrade) 14,842 Total for $32,983 PAGE 2-42

58 ReserveStudyUpdate.com, LLC Annual Expenditure Detail Description Expenditures Replacement Year Docks: Replace - Phase 1 3,374 Lift Station: Rebuild - Station 3 42,177 Piping, Concrete, Partial Replacements - Sewage Treatment 11,599 Piping, Concrete, Partial Replacements - Water Treatment 11,599 Pumps: Lift Station - Phase 8 5,061 Total for $73,810 Replacement Year Dredging: Spoils Pond 51,777 Playground Equipment: Replace 1,898 Pumps: Lift Station - Phase 1 5,178 Total for $58,853 Replacement Year Asphalt: Seal Coat & Repairs 70,235 Docks: Replace - Phase 2 3,531 Pumps: Lift Station - Phase 2 5,297 Sewage Treatment Plant: Replace/Rebuild 70,624 Total for $149,687 Replacement Year Arborist: Tree Work 27,093 Pumps: Lift Station - Phase 3 5,419 Tennis Court: Resurface 15,118 Windows & Doors: Phased Replacement 6,502 Total for $54,132 Replacement Year Docks: Replace - Phase 3 3,695 Interior Renovation: Phased Renovation 3,695 Laboratory Equipment: Phased Replacement 11,086 Pumps: Lift Station - Phase 4 5,543 Total for $24,021 PAGE 2-43

59 ReserveStudyUpdate.com, LLC Annual Expenditure Detail Description Expenditures Replacement Year Piping, Concrete, Partial Replacements - Sewage Treatment 12,995 Piping, Concrete, Partial Replacements - Water Treatment 12,995 Pumps: Lift Station - Phase 5 5,671 Sewage Treatment Plant: Upgrades 56,707 Total for $88,369 Replacement Year Appliances & Furniture: Phased Replacements 2,901 Docks: Replace - Phase 4 3,867 Lift Station: Rebuild - Station 4 48,343 Pumps: Effluent - Clearwell #1 15,470 Pumps: Lift Station - Phase 6 5,801 Total for $76,382 PAGE 2-44

60 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Report Date June 17, 2015 Beginning Fiscal Year October 01, 2015 Account Number 733 Version Number 8 Asphalt: Overlay Asset ID 1001 Capital Streets/Asphalt Placed in Service May 1999 Useful Life 30 Adjustment -3 Replacement Year Remaining Life ,900 Square $1.75 Asset Cost $348, Percent Replacement 100% Future Cost $436, Assigned Reserves $176, Monthly Assessment $1, Interest Contribution $61.70 Reserve Allocation $1, This line item is for the replacement of the asphalt overlay. Current overlay is in a variety of conditions from good to fair. Timing is based on Director of Operations Travis Graham. ReserveStudyUpdate.com, LLC strongly recommends that the Board obtain at least two or three estimates and/or competitive bids to affirm this estimate. As with any component listed in any of our reserve studies, should the Board and/or management find that these cost projection need to be revised, ReserveStudyUpdate.com, LLC is more than happy to make these changes to the electronic file (PDF) and provide the updated report completely free of charge prior to or during the fiscal year that the study is prepared for. This measure will aid in maintaining proper reserve funding equilibrium and aid in proper contribution to reserves. PAGE 2-45

61 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Asphalt: Seal Coat & Repairs Asset ID 1002 Non Capital Streets/Asphalt Placed in Service May 1999 Useful Life 5 Adjustment 12 Replacement Year Remaining Life 0 198,900 Square $0.20 Asset Cost $39, Percent Replacement 100% Future Cost $39, Assigned Reserves $39, Monthly Assessment $ Interest Contribution $1.00 Reserve Allocation $ This line item is for the asphalt seal coat which protects the asphalt overlay. According to Travis Graham, a new seal coat is planned during the next 12 months as the existing sealant has diminished almost entirely. Timing is based on Fishhawk Lake Director of Operations Travis Graham. Cost is based on a bid that has been obtained by the Board of Directors. ReserveStudyUpdate.com, LLC strongly recommends that the Board obtain at least two or three estimates and/or competitive bids to affirm this estimate. As with any component listed in any of our reserve studies, should the Board and/or management find that these cost projection need to be revised, ReserveStudyUpdate.com, LLC is more than happy to make these changes to the electronic file (PDF) and provide the updated report completely free of charge prior to or during the fiscal year that the study is prepared for. This measure will aid in maintaining proper reserve funding equilibrium and aid in proper contribution to reserves. PAGE 2-46

62 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Streets/Asphalt - Total Current Cost $387,855 Assigned Reserves $216,073 Fully Funded Reserves $258,938 PAGE 2-47

63 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Roof Assemblies Asset ID 1038 Capital Roofing Placed in Service June 1997 Useful Life 20 Replacement Year Remaining Life 1 8,000 Square $2.99 Asset Cost $23, Percent Replacement 100% Future Cost $24, Assigned Reserves $22, Monthly Assessment $86.60 Interest Contribution $7.78 Reserve Allocation $94.38 This line item is for the replacement of the roofing assemblies and related components every 20 years or as necessary. This asset is scheduled to be replaced in the next 24 months as the component's useful life has been exhausted. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-48

64 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Roofing - Total Current Cost $23,920 Assigned Reserves $22,724 Fully Funded Reserves $22,724 PAGE 2-49

65 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Fence: Tennis Court Asset ID 1011 Capital Fencing/Security Placed in Service May 1967 Useful Life 40 Adjustment 17 Replacement Year Remaining Life Linear $24.77 Asset Cost $8, Percent Replacement 100% Future Cost $10, Assigned Reserves $7, Monthly Assessment $17.94 Interest Contribution $2.60 Reserve Allocation $20.54 This line item is for the fence surrounding the tennis court. Fence appears to be in good condition and may be extended beyond 2023 as circumstances permit. This component should be reevaluated in future reserve study updates. ReserveStudyUpdate.com, LLC strongly recommends that the Board obtain at least two or three estimates and/or competitive bids to affirm this estimate. As with any component listed in any of our reserve studies, should the Board and/or management find that these cost projection need to be revised, ReserveStudyUpdate.com, LLC is more than happy to make these changes to the electronic file (PDF) and provide the updated report completely free of charge prior to or during the fiscal year that the study is prepared for. This measure will aid in maintaining proper reserve funding equilibrium and aid in proper contribution to reserves. PAGE 2-50

66 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Fencing/Security - Total Current Cost $8,917 Assigned Reserves $7,666 Fully Funded Reserves $7,666 PAGE 2-51

67 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Playground Equipment: Replace Asset ID 1008 Capital Recreation Placed in Service May 2010 Useful Life 15 Replacement Year Remaining Life 9 1 $1, Asset Cost $1, Percent Replacement 100% Future Cost $1, Assigned Reserves $ Monthly Assessment $5.11 Interest Contribution $0.16 Reserve Allocation $5.27 This line item is for the replacement of the playground equipment in the common area. Existing structure is in fair condition. Safety repairs should occur regular and deficiencies addressed immediately. Cost and timing provided by Travis Graham. Labor will be performed by on-site buildings/crew (in house) with similar products available at Home Depot. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-52

68 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Tennis Court: Resurface Asset ID 1010 Non Capital Recreation Placed in Service May 2002 Useful Life 20 Replacement Year Remaining Life 6 6,975 Square $1.20 Asset Cost $8, Percent Replacement 100% Future Cost $9, Assigned Reserves $5, Monthly Assessment $31.02 Interest Contribution $2.02 Reserve Allocation $33.04 This line item is for the resurfacing of the tennis court every 20 years beginning in the year Existing asset appears to be in fair condition. Cost may be slightly higher than typical jobs as materials may need to be transported to the court via wheelbarrows. Timing provided by Travis Graham. ReserveStudyUpdate.com, LLC strongly recommends that the Board obtain at least two or three estimates and/or competitive bids to affirm this estimate. As with any component listed in any of our reserve studies, should the Board and/or management find that these cost projection need to be revised, ReserveStudyUpdate.com, LLC is more than happy to make these changes to the electronic file (PDF) and provide the updated report completely free of charge prior to or during the fiscal year that the study is prepared for. This measure will aid in maintaining proper reserve funding equilibrium and aid in proper contribution to reserves. PAGE 2-53

69 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Recreation - Total Current Cost $9,470 Assigned Reserves $6,299 Fully Funded Reserves $6,299 PAGE 2-54

70 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Backhoe Asset ID 1013 Capital Equipment Placed in Service May 1996 Useful Life 20 Replacement Year Remaining Life 0 1 $50, Asset Cost $50, Percent Replacement 100% Future Cost $50, Assigned Reserves $50, Monthly Assessment $ Interest Contribution $0.43 Reserve Allocation $ This line item is the replacement of the backhoe which serves the community every 20 years. The existing component life has exhausted and according to Travis Graham, should be replaced within the next 12 months. Cost is according to recent pricing information obtained for the necessary replacement unit from Operations Director Travis Graham. This reserve study does not contemplate resale, salvage, or recycling proceeds from disposal of old unit. ReserveStudyUpdate.com, LLC strongly recommends that the Board obtain at least two or three estimates and/or competitive bids to affirm this estimate. As with any component listed in any of our reserve studies, should the Board and/or management find that these cost projection need to be revised, ReserveStudyUpdate.com, LLC is more than happy to make these changes to the electronic file (PDF) and provide the updated report completely free of charge prior to or during the fiscal year that the study is prepared for. This measure will aid in maintaining proper reserve funding equilibrium and aid in proper contribution to reserves. PAGE 2-55

71 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Dredger Asset ID 1014 Capital Equipment Placed in Service May 1991 Useful Life 25 Adjustment 10 Replacement Year Remaining Life 10 1 $150, Asset Cost $150, Percent Replacement 100% Future Cost $188, Assigned Reserves none Monthly Assessment $ Interest Contribution $2.10 Reserve Allocation $ This line item is for the dredge that serves the lake and is utilized for ongoing dredging. According to Fishhawk Lake Director Travis Graham, the equipment in good condition and should last 10 more years with periodic maintenance. ReserveStudyUpdate.com, LLC strongly recommends that the Board obtain at least two or three estimates and/or competitive bids to affirm this estimate. As with any component listed in any of our reserve studies, should the Board and/or management find that these cost projection need to be revised, ReserveStudyUpdate.com, LLC is more than happy to make these changes to the electronic file (PDF) and provide the updated report completely free of charge prior to or during the fiscal year that the study is prepared for. This measure will aid in maintaining proper reserve funding equilibrium and aid in proper contribution to reserves. PAGE 2-56

72 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Truck: 1992 Ford F-250 (Newer Make & Model) Asset ID 1016 Capital Equipment Placed in Service May 1997 Useful Life 20 Replacement Year Remaining Life 1 1 $15, Asset Cost $15, Percent Replacement 100% Future Cost $15, Assigned Reserves $14, Monthly Assessment $54.31 Interest Contribution $4.88 Reserve Allocation $59.18 This line item is for the replacement of the 1992 Ford F-250 truck with a newer model. Past practice is that the Association purchases a vehicle that is 2 or 3 years old that is mechanically sound as brand new vehicles are not needed for the work that is required around the property. However, as the vehicles age, it is no longer cost effective to continuously repair older vehicles. The existing vehicle is in fair condition. Specific vehicle history is unknown. This reserve study does not contemplate resale, salvage, or recycling proceeds from disposal of old unit. PAGE 2-57

73 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Truck: 2005 Chevy Colorado (Newer Make & Model) Asset ID 1015 Capital Equipment Placed in Service May 2007 Useful Life 20 Replacement Year Remaining Life 11 1 $15, Asset Cost $15, Percent Replacement 100% Future Cost $19, Assigned Reserves none Monthly Assessment $89.81 Interest Contribution $0.19 Reserve Allocation $90.00 This line item is for the replacement of the 2005 Chevy truck with a newer model. Past practice is that the Association purchases a vehicle that is 2 or 3 years old that is mechanically sound as brand new vehicles are not needed for the work that is required around the property. However, as the vehicles age, it is no longer cost effective to continuously repair older vehicles. The existing vehicle is in fair condition. Specific vehicle history is unknown. This reserve study does not contemplate resale, salvage, or recycling proceeds from disposal of old unit. PAGE 2-58

74 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Welder / Generator: Replace Asset ID 1051 Capital Equipment Placed in Service May 2006 Useful Life 20 Replacement Year Remaining Life 10 1 $2, Asset Cost $2, Percent Replacement 100% Future Cost $3, Assigned Reserves none Monthly Assessment $18.48 Interest Contribution $0.04 Reserve Allocation $18.52 This is for the welder/generator which is a dual-purpose equipment used for remote areas around the lake. Component placed in service approximately 10 years ago and is expected to last an additional 10 years. Is in good condition. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-59

75 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Zero Turn Mower: (Capital Upgrade) Asset ID 1044 Capital Equipment Placed in Service May 2008 Useful Life 10 Replacement Year Remaining Life 2 1 $9, Asset Cost $9, Percent Replacement 100% Future Cost $9, Assigned Reserves $7, Monthly Assessment $56.42 Interest Contribution $2.53 Reserve Allocation $58.95 This is for the upgrade of the existing mower to a commercial Grade Zero Turn Mower. Price and timing researched by Travis Graham. The current household grade style equipment is insufficient for the workload at the property according to Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-60

76 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Equipment - Total Current Cost $241,864 Assigned Reserves $71,450 Fully Funded Reserves $186,775 PAGE 2-61

77 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Decks: Clubhouse Asset ID 1037 Capital Building Components Placed in Service July 2014 Useful Life 20 Replacement Year Remaining Life 18 1,100 Square $18.18 Asset Cost $19, Percent Replacement 100% Future Cost $30, Assigned Reserves none Monthly Assessment $84.59 Interest Contribution $0.18 Reserve Allocation $84.78 About 60% of the decks were replaced sealed in 2014, which according to Travis a rejuvenation of this asset which should last an additional years for all decks. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-62

78 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Siding: Plywood Asset ID 1039 Capital Building Components Placed in Service May 1987 Useful Life 35 Replacement Year Remaining Life 6 7,300 Square $1.65 Asset Cost $12, Percent Replacement 100% Future Cost $13, Assigned Reserves $9, Monthly Assessment $30.94 Interest Contribution $3.40 Reserve Allocation $34.34 This line item is for the replacement of the plywood siding on the various clubhouse/office buildings in the community every 35 years beginning in the year Existing siding is in fair condition. Cost is based on materials available from Home Depot and timing provided by Travis Graham. Labor will be performed by on-site buildings/crew (in house). Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-63

79 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Windows & Doors: Phased Replacement Asset ID 1040 Capital Building Components Placed in Service May 1987 Useful Life 5 Adjustment 30 Replacement Year Remaining Life 6 1 Lump $24, Asset Cost $3, Percent Replacement 15% Future Cost $4, Assigned Reserves $2, Monthly Assessment $9.25 Interest Contribution $1.02 Reserve Allocation $10.26 This line item is for the phased replacement of the various windows and doors on the clubhouse and office buildings. Existing components appear to be in good to fair condition. Timing and cost affirmed by Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-64

80 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Building Components - Total Current Cost $35,643 Assigned Reserves $12,963 Fully Funded Reserves $14,963 PAGE 2-65

81 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Fire Hydrants Asset ID 1052 Capital Fire Extinguishers Placed in Service May 1967 No Useful Life Asset Cost Percent Replacement 100% Future Cost Assigned Reserves none No Future Assessments This line item is for the replacement of the fire hydrants. Per the Board, this line item is funded through the operating budget, therefore, this line item should not funded per the reserve study. This line item is not funded in the context of the reserve study. PAGE 2-66

82 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Fire Extinguishers - Total Current Cost $0 Assigned Reserves $0 Fully Funded Reserves $0 PAGE 2-67

83 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Mailboxes: Replace Asset ID 1007 Capital Mailboxes Placed in Service May 1967 Useful Life 40 Adjustment 9 Replacement Year Remaining Life 0 7 $1, Asset Cost $8, Percent Replacement 100% Future Cost $8, Assigned Reserves $8, Monthly Assessment $24.12 Interest Contribution $0.05 Reserve Allocation $24.17 This line item is for the gang-cluster mailbox units serving the community. This work is needed immediately as existing units have deteriorated and should be performed in Cost and timing provided by Travis Graham. Labor will be performed by on-site buildings/crew (in house). Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-68

84 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Mailboxes - Total Current Cost $8,036 Assigned Reserves $8,036 Fully Funded Reserves $8,036 PAGE 2-69

85 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Arborist: Tree Work Asset ID 1045 Non Capital Tree Trimming Placed in Service June 2012 Useful Life 5 Replacement Year Remaining Life 1 1 $15, Asset Cost $15, Percent Replacement 100% Future Cost $15, Assigned Reserves $12, Monthly Assessment $ Interest Contribution $4.38 Reserve Allocation $ This line item is for any tree-trimming from time-to-time that is outside of the scope of the a typical landscape annual contract. Costs may include but not limited to; injections, control of diseased trees, removal, reforestation, stump grinding and other related services. The Association should obtain a bid from a local certified, licensed, and bonded contractor in order to determine if this estimate and timing is sufficient to meet the needs of the Association.. Cost presented herein assume that the full quantity specified will be addressed simultaneously in order to avoid possible overlap in mobilization charges and fees. ReserveStudyUpdate.com, LLC strongly recommends that the Board obtain at least two or three estimates and/or competitive bids to affirm this estimate. As with any component listed in any of our reserve studies, should the Board and/or management find that these cost projection need to be revised, ReserveStudyUpdate.com, LLC is more than happy to make these changes to the electronic file (PDF) and provide the updated report completely free of charge prior to or during the fiscal year that the study is prepared for. This measure will aid in maintaining proper reserve funding equilibrium and aid in proper contribution to reserves. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-70

86 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Tree Trimming - Total Current Cost $15,000 Assigned Reserves $12,000 Fully Funded Reserves $12,000 PAGE 2-71

87 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Backflow Devices Asset ID 1053 Capital Underground Utilities Placed in Service May 1967 No Useful Life Asset Cost Percent Replacement 100% Future Cost Assigned Reserves none No Future Assessments This line item is for the replacement of the backflow devices. Per the Board, this line item is funded through the operating budget, therefore, this line item should not funded per the reserve study. This line item is not funded in the context of the reserve study. PAGE 2-72

88 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Underground Utilities - Total Current Cost $0 Assigned Reserves $0 Fully Funded Reserves $0 PAGE 2-73

89 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Bridge: Wood - Island Drive - Replace Asset ID 1003 Capital Bridges Placed in Service May 1999 Useful Life 25 Replacement Year Remaining Life Square $ Asset Cost $77, Percent Replacement 100% Future Cost $93, Assigned Reserves $52, Monthly Assessment $ Interest Contribution $18.15 Reserve Allocation $ This line item is for the vehicle bridge from Beach Drive onto the island. Installation date of component is unknown. Board should affirm this cost. Labor for replacement will be performed by outside licensed contractor/engineer. Timing is based on Fishhawk Lake Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-74

90 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Bridge: Wood - North Shore Drive - Replace Asset ID 1004 Capital Bridges Placed in Service May 1999 Useful Life 25 Adjustment 6 Replacement Year Remaining Life Square $ Asset Cost $105, Percent Replacement 100% Future Cost $145, Assigned Reserves none Monthly Assessment $ Interest Contribution $1.15 Reserve Allocation $ This line item is for the vehicle bridge over Boxler Creek. Installation date of component is unknown. Board should affirm this cost. Labor for replacement will be performed by outside licensed contractor/engineer. However, some spot repairs, replacement of decking and other components was performed in 2014 according to Fishhawk Lake Director of Operations Travis Graham. ReserveStudyUpdate.com, LLC strongly recommends that the Board obtain at least two or three estimates and/or competitive bids to affirm this estimate. As with any component listed in any of our reserve studies, should the Board and/or management find that these cost projection need to be revised, ReserveStudyUpdate.com, LLC is more than happy to make these changes to the electronic file (PDF) and provide the updated report completely free of charge prior to or during the fiscal year that the study is prepared for. This measure will aid in maintaining proper reserve funding equilibrium and aid in proper contribution to reserves. PAGE 2-75

91 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Bridges - Total Current Cost $183,300 Assigned Reserves $52,734 Fully Funded Reserves $110,726 PAGE 2-76

92 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Drain Valve: Dam Asset ID 1005 Capital Dam Placed in Service May 1976 Useful Life 40 Replacement Year Remaining Life 0 1 $26, Asset Cost $26, Percent Replacement 100% Future Cost $26, Assigned Reserves $26, Monthly Assessment $78.04 Interest Contribution $0.17 Reserve Allocation $78.21 This line item has currently exceeded the predictable useful life, however according to Travis Graham does not show noticeable signs of eminent failure. Cost is based on information provided by Fishhawk Lake Director of Operations Travis Graham. This line item should be indexed in the first fiscal year of subsequent reserve study reports until this component was replaced. That way, the money is kept 'on-hand' at all times ready for disbursement. The Board should contemplate the consequences of failure of this asset with an specialist. ReserveStudyUpdate.com, LLC strongly recommends that the Board obtain at least two or three estimates and/or competitive bids to affirm this estimate. This measure will aid in maintaining proper reserve funding equilibrium and aid in proper contribution to reserves. PAGE 2-77

93 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Dam - Total Current Cost $26,000 Assigned Reserves $26,000 Fully Funded Reserves $26,000 PAGE 2-78

94 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Dredging: Spoils Pond Asset ID 1006 Non Capital Dredging Placed in Service May 2010 Useful Life 10 Replacement Year Remaining Life 4 1 $30, Asset Cost $30, Percent Replacement 100% Future Cost $32, Assigned Reserves $18, Monthly Assessment $ Interest Contribution $6.42 Reserve Allocation $ This line item for a thorough cleanout of the spoils pond. This is beyond the scope of routine work. This work is performed by an outside contractor and was perfumed last approximately 5 years ago. Cost and timing is based on information provided by Fishhawk Lake Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-79

95 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Dredging - Total Current Cost $30,000 Assigned Reserves $18,000 Fully Funded Reserves $18,000 PAGE 2-80

96 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Lift Station: Rebuild - Station 1 Asset ID 1025 Capital Wastewater Management Placed in Service May 2002 Useful Life 24 Replacement Year Remaining Life 10 1 $25, Asset Cost $25, Percent Replacement 100% Future Cost $31, Assigned Reserves none Monthly Assessment $ Interest Contribution $0.35 Reserve Allocation $ This funds replacement of major components of the lift stations (other than the pumps) which includes the wiring, pipes, valves, switches, floats. Components are in a variety of conditions, but should be reevaluated on a periodic basis. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-81

97 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Lift Station: Rebuild - Station 2 Asset ID 1026 Capital Wastewater Management Placed in Service May 2009 Useful Life 24 Replacement Year Remaining Life 17 1 $25, Asset Cost $25, Percent Replacement 100% Future Cost $36, Assigned Reserves none Monthly Assessment $ Interest Contribution $0.24 Reserve Allocation $ This funds replacement of major components of the lift stations (other than the pumps) which includes the wiring, pipes, valves, switches, floats. Components are in a variety of conditions, but should be reevaluated on a periodic basis. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-82

98 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Lift Station: Rebuild - Station 3 Asset ID 1027 Capital Wastewater Management Placed in Service May 2009 Useful Life 24 Adjustment 6 Replacement Year Remaining Life 23 1 $25, Asset Cost $25, Percent Replacement 100% Future Cost $42, Assigned Reserves none Monthly Assessment $91.79 Interest Contribution $0.20 Reserve Allocation $91.99 This funds replacement of major components of the lift stations (other than the pumps) which includes the wiring, pipes, valves, switches, floats. Components are in a variety of conditions, but should be reevaluated on a periodic basis. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-83

99 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Lift Station: Rebuild - Station 4 Asset ID 1028 Capital Wastewater Management Placed in Service May 2009 Useful Life 24 Adjustment 12 Replacement Year Remaining Life 29 1 $25, Asset Cost $25, Percent Replacement 100% Future Cost $48, Assigned Reserves none Monthly Assessment $82.43 Interest Contribution $0.18 Reserve Allocation $82.61 This funds replacement of major components of the lift stations (other than the pumps) which includes the wiring, pipes, valves, switches, floats. Components are in a variety of conditions, but should be reevaluated on a periodic basis. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-84

100 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Piping, Concrete, Partial Replacements - Sewage Treatment Asset ID 1029 Capital Wastewater Management Placed in Service May 1967 Useful Life 5 Adjustment 47 Replacement Year Remaining Life Linear $ Asset Cost $6, Percent Replacement 5% Future Cost $7, Assigned Reserves $6, Monthly Assessment $13.96 Interest Contribution $2.19 Reserve Allocation $16.16 This line item is for sporadic replacements for the infrastructure of the wastewater collection system. Some of the components are buried underground making an accurate lifespan prediction impossible. As ground shifts due to a variety of factors, the components may become damaged and require earlier replacement. This line item provides for approximately 5% replacement of components on a 5-year interval. This assumption is based upon historical information about expenses from the Director of Operations. However, it is acknowledged that the costs may vary according to the magnitude of work required at each service interval. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-85

101 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Lift Station - Phase 1 Asset ID 1017 Capital Wastewater Management Placed in Service May 2008 Useful Life 8 Replacement Year Remaining Life 0 1 $3, Asset Cost $3, Percent Replacement 100% Future Cost $3, Assigned Reserves $3, Monthly Assessment $23.21 Interest Contribution $0.05 Reserve Allocation $23.26 This line item is for the rebuild of each of the pumps every 8 years, on an 8 year cycle. There is 2 pumps in each lift station. Pumps can be set in a manner/schedule so that the wear on the pumps is distributed, which also allows technician to remove and rebuild without downtime. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-86

102 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Lift Station - Phase 2 Asset ID 1018 Capital Wastewater Management Placed in Service May 2009 Useful Life 8 Replacement Year Remaining Life 1 1 $3, Asset Cost $3, Percent Replacement 100% Future Cost $3, Assigned Reserves $2, Monthly Assessment $22.68 Interest Contribution $0.93 Reserve Allocation $23.61 This line item is for the rebuild of each of the pumps every 8 years, on an 8 year cycle. There is 2 pumps in each lift station. Pumps can be set in a manner/schedule so that the wear on the pumps is distributed, which also allows technician to remove and rebuild without downtime. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-87

103 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Lift Station - Phase 3 Asset ID 1019 Capital Wastewater Management Placed in Service May 2010 Useful Life 8 Replacement Year Remaining Life 2 1 $3, Asset Cost $3, Percent Replacement 100% Future Cost $3, Assigned Reserves $2, Monthly Assessment $22.76 Interest Contribution $0.80 Reserve Allocation $23.56 This line item is for the rebuild of each of the pumps every 8 years, on an 8 year cycle. There is 2 pumps in each lift station. Pumps can be set in a manner/schedule so that the wear on the pumps is distributed, which also allows technician to remove and rebuild without downtime. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-88

104 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Lift Station - Phase 4 Asset ID 1020 Capital Wastewater Management Placed in Service May 2011 Useful Life 8 Replacement Year Remaining Life 3 1 $3, Asset Cost $3, Percent Replacement 100% Future Cost $3, Assigned Reserves $1, Monthly Assessment $22.83 Interest Contribution $0.68 Reserve Allocation $23.51 This line item is for the rebuild of each of the pumps every 8 years, on an 8 year cycle. There is 2 pumps in each lift station. Pumps can be set in a manner/schedule so that the wear on the pumps is distributed, which also allows technician to remove and rebuild without downtime. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-89

105 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Lift Station - Phase 5 Asset ID 1021 Capital Wastewater Management Placed in Service May 2012 Useful Life 8 Replacement Year Remaining Life 4 1 $3, Asset Cost $3, Percent Replacement 100% Future Cost $3, Assigned Reserves $1, Monthly Assessment $22.90 Interest Contribution $0.55 Reserve Allocation $23.45 This line item is for the rebuild of each of the pumps every 8 years, on an 8 year cycle. There is 2 pumps in each lift station. Pumps can be set in a manner/schedule so that the wear on the pumps is distributed, which also allows technician to remove and rebuild without downtime. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-90

106 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Lift Station - Phase 6 Asset ID 1022 Capital Wastewater Management Placed in Service May 2013 Useful Life 8 Replacement Year Remaining Life 5 1 $3, Asset Cost $3, Percent Replacement 100% Future Cost $3, Assigned Reserves $1, Monthly Assessment $22.98 Interest Contribution $0.43 Reserve Allocation $23.41 This line item is for the rebuild of each of the pumps every 8 years, on an 8 year cycle. There is 2 pumps in each lift station. Pumps can be set in a manner/schedule so that the wear on the pumps is distributed, which also allows technician to remove and rebuild without downtime. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-91

107 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Lift Station - Phase 7 Asset ID 1023 Capital Wastewater Management Placed in Service May 2014 Useful Life 8 Replacement Year Remaining Life 6 1 $3, Asset Cost $3, Percent Replacement 100% Future Cost $3, Assigned Reserves $ Monthly Assessment $23.06 Interest Contribution $0.30 Reserve Allocation $23.36 This line item is for the rebuild of each of the pumps every 8 years, on an 8 year cycle. There is 2 pumps in each lift station. Pumps can be set in a manner/schedule so that the wear on the pumps is distributed, which also allows technician to remove and rebuild without downtime. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-92

108 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Lift Station - Phase 8 Asset ID 1024 Capital Wastewater Management Placed in Service May 2015 Useful Life 8 Replacement Year Remaining Life 7 1 $3, Asset Cost $3, Percent Replacement 100% Future Cost $3, Assigned Reserves $ Monthly Assessment $23.13 Interest Contribution $0.18 Reserve Allocation $23.31 This line item is for the rebuild of each of the pumps every 8 years, on an 8 year cycle. There is 2 pumps in each lift station. Pumps can be set in a manner/schedule so that the wear on the pumps is distributed, which also allows technician to remove and rebuild without downtime. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-93

109 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Rip Rap: Sewage Treatment Plant Shore Asset ID 1009 Non Capital Wastewater Management Placed in Service May 2006 Useful Life 30 Replacement Year Remaining Life 20 1 Lump $8, Asset Cost $8, Percent Replacement 100% Future Cost $12, Assigned Reserves none Monthly Assessment $31.74 Interest Contribution $0.07 Reserve Allocation $31.81 This line item is for the rip-rap at the storage treatment plant. This will prevent further erosion of the of the bank below the dam due to water flow (pressure). Placed in service date reflects maintenance interval, not full component installation. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-94

110 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Settlement Lagoon (Removed) Asset ID 1032 Non Capital Wastewater Management Placed in Service May 1967 No Useful Life Asset Cost Percent Replacement 100% Future Cost Assigned Reserves none No Future Assessments Per Travis Graham, pictured above is the site of the lagoon which has since been decommissioned. This line item should be purged from the future reserve study as this line item simply acknowledges the asset which was once funded and since been removed from the component inventory. This line item is no longer funded. PAGE 2-95

111 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Sewage Treatment Plant: Replace/Rebuild Asset ID 1030 Capital Wastewater Management Placed in Service May 1967 Useful Life 8 Adjustment 50 Replacement Year Remaining Life 9 1 $40, Asset Cost $40, Percent Replacement 100% Future Cost $49, Assigned Reserves $33, Monthly Assessment $80.40 Interest Contribution $11.46 Reserve Allocation $91.86 This line item is for any structural rebuilds and facilities improvements needed for the sewage treatment plant on an ongoing 8-year cycle. Funding has been structured so that disbursements to address these issues can be made on a 8 year cycle, which is at the approximate midpoint of the upgrade line item per a separate line item in this report. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-96

112 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Sewage Treatment Plant: Upgrades Asset ID 1031 Capital Wastewater Management Placed in Service May 1967 Useful Life 8 Adjustment 45 Replacement Year Remaining Life 4 1 $30, Asset Cost $30, Percent Replacement 100% Future Cost $32, Assigned Reserves $27, Monthly Assessment $60.77 Interest Contribution $9.39 Reserve Allocation $70.16 This line item is for any incremental upgrades needed for the sewage treatment plant including code enforcement requirements, related component purchases, and other upgrades to the facilities. Board is unaware of any deficiencies in these components and plans to revisit this area of the study on an annual basis. Funding has been structured so that disbursements to address these issues can be made on a 8 year cycle, beginning in the year Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-97

113 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Wastewater Management - Total Current Cost $208,875 Assigned Reserves $81,507 Fully Funded Reserves $116,743 PAGE 2-98

114 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Concrete Repairs: Spillway, Wier, Fish Ladder Asset ID 1012 Capital Concrete Placed in Service May 2007 Useful Life 15 Replacement Year Remaining Life 6 8,900 Square $5.55 Asset Cost $49, Percent Replacement 100% Future Cost $56, Assigned Reserves $29, Monthly Assessment $ Interest Contribution $10.39 Reserve Allocation $ A fish ladder is a structure that allows migrating fish passage over or around an obstacle on a river or other body of water. This line item funds repairs needed from time-to-time to the concrete and other related components. Existing asset is purported to be in good condition. Cost and timing provided by Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-99

115 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Concrete - Total Current Cost $49,395 Assigned Reserves $29,637 Fully Funded Reserves $29,637 PAGE 2-100

116 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Filtration System: Package Unit Asset ID 1033 Water Treatment Placed in Service May 2001 Useful Life 30 Replacement Year Remaining Life 15 1 Lump $25, Asset Cost $25, Percent Replacement 100% Future Cost $35, Assigned Reserves none Monthly Assessment $ Interest Contribution $0.26 Reserve Allocation $ This line item is for any purchases needed to replace or major rebuild of the filtration system package unit. Component is believed to be in fair condition and at the midpoint of the component life cycle. This asset should be reviewed carefully during each reserve study cycle in order to determine the proper timing and condition of these components. Cost and timing information is based on information provided by Fishhawk Lake Director of Operations Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-101

117 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Laboratory Equipment: Phased Replacement Asset ID 1043 Capital Water Treatment Placed in Service May 2013 Useful Life 5 Replacement Year Remaining Life 2 1 $6, Asset Cost $6, Percent Replacement 100% Future Cost $6, Assigned Reserves $3, Monthly Assessment $69.20 Interest Contribution $1.35 Reserve Allocation $70.55 This line item funds the replacement of various incubators, sealing machine, sampling/testing equipment, and other related supplies. Equipment is in fair condition and is replaced approximately every 5 years on an as-needed basis and as components expire. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-102

118 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Piping, Concrete, Partial Replacements - Water Treatment Asset ID 1034 Capital Water Treatment Placed in Service May 1967 Useful Life 5 Adjustment 47 Replacement Year Remaining Life Linear $ Asset Cost $6, Percent Replacement 5% Future Cost $7, Assigned Reserves $6, Monthly Assessment $13.96 Interest Contribution $2.19 Reserve Allocation $16.16 This line item is for sporadic replacements for the infrastructure of the water distribution system. Some of the components are buried underground making an accurate lifespan prediction impossible. As ground shifts due to a variety of factors, the components may become damaged and require earlier replacement. This line item provides for approximately 5% replacement of components on a 5-year interval. This assumption is based upon historical information about expenses from the Director of Operations. However, it is acknowledged that the costs may vary according to the magnitude of work required at each service interval. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-103

119 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Effluent - Clearwell #1 Asset ID 1035 Capital Water Treatment Placed in Service June 2015 Useful Life 10 Replacement Year Remaining Life 9 1 $8, Asset Cost $8, Percent Replacement 100% Future Cost $9, Assigned Reserves $ Monthly Assessment $51.42 Interest Contribution $0.38 Reserve Allocation $51.80 Pump #1 is currently being replaced, and and the second pump will be addressed in This pumps drinking water from the water plant to the water tower. Upon publication, this work was ongoing and new pump will be in good condition. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-104

120 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Pumps: Effluent - Clearwell #2 Asset ID 1036 Capital Water Treatment Placed in Service June 2006 Useful Life 10 Replacement Year Remaining Life 0 1 $8, Asset Cost $8, Percent Replacement 100% Future Cost $8, Assigned Reserves $8, Monthly Assessment $51.61 Interest Contribution $0.11 Reserve Allocation $51.72 Pump #1 is currently being replaced, and this second pump will be addressed in This pumps drinking water from the water plant to the water tower. Upon publication, this work is planned for Existing pump condition requires replacement. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-105

121 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Water Treatment - Total Current Cost $53,875 Assigned Reserves $18,878 Fully Funded Reserves $31,378 PAGE 2-106

122 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Appliances & Furniture: Phased Replacements Asset ID 1041 Capital Clubhouse Placed in Service May 2013 Useful Life 8 Replacement Year Remaining Life 5 1 Lump $5, Asset Cost $1, Percent Replacement 30% Future Cost $1, Assigned Reserves $ Monthly Assessment $11.49 Interest Contribution $0.21 Reserve Allocation $11.70 This component is for the phased replacement of the appliances and furniture in the office and clubhouse rooms on a periodic basis. This line item specifically sets aside the spending equivalent of $1500 every 8 years for the components. The existing furniture and appliances have an approximate replacement value of approximately $5000 for similar items. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-107

123 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Interior Renovation: Phased Renovation Asset ID 1042 Non Capital Clubhouse Placed in Service May 2013 Useful Life 5 Replacement Year Remaining Life 2 1 Lump $2, Asset Cost $2, Percent Replacement 100% Future Cost $2, Assigned Reserves $1, Monthly Assessment $23.07 Interest Contribution $0.45 Reserve Allocation $23.52 This line item is for the renovation which includes, but not limited to carpet, cabinet, countertop, and light fixture replacements inside the clubhouse and office buildings. This line item also addresses painting of the buildings on a periodic basis. Cost assumes that a lion's share of the work will be performed in-house. Cost and timing affirmed by Travis Graham. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-108

124 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Clubhouse - Total Current Cost $3,500 Assigned Reserves $1,762 Fully Funded Reserves $1,762 PAGE 2-109

125 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Docks: Replace - Phase 1 Asset ID 1046 Capital Docks Placed in Service May 1999 Useful Life 20 Replacement Year Remaining Life 3 5 $2, Asset Cost $2, Percent Replacement 20% Future Cost $2, Assigned Reserves $1, Monthly Assessment $7.31 Interest Contribution $0.58 Reserve Allocation $7.89 This is for the phased replacements of the docks. Docks generally have a 20-year lifespan and will be replaced in 5 phases. Various rebuilds have occurred over the years which have made establishing an exact 'placed in service date' impossible. Some work has been performed by volunteers at various intervals. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-110

126 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Docks: Replace - Phase 2 Asset ID 1047 Capital Docks Placed in Service May 1999 Useful Life 20 Adjustment 2 Replacement Year Remaining Life 5 5 $2, Asset Cost $2, Percent Replacement 20% Future Cost $2, Assigned Reserves $1, Monthly Assessment $6.89 Interest Contribution $0.53 Reserve Allocation $7.43 This is for the phased replacements of the docks. Docks generally have a 20-year lifespan and will be replaced in 5 phases. Various rebuilds have occurred over the years which have made establishing an exact 'placed in service date' impossible. Some work has been performed by volunteers at various intervals. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-111

127 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Docks: Replace - Phase 3 Asset ID 1048 Capital Docks Placed in Service May 1999 Useful Life 20 Adjustment 4 Replacement Year Remaining Life 7 5 $2, Asset Cost $2, Percent Replacement 20% Future Cost $2, Assigned Reserves $1, Monthly Assessment $6.56 Interest Contribution $0.49 Reserve Allocation $7.05 This is for the phased replacements of the docks. Docks generally have a 20-year lifespan and will be replaced in 5 phases. Various rebuilds have occurred over the years which have made establishing an exact 'placed in service date' impossible. Some work has been performed by volunteers at various intervals. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-112

128 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Docks: Replace - Phase 4 Asset ID 1049 Capital Docks Placed in Service May 1999 Useful Life 20 Adjustment 6 Replacement Year Remaining Life 9 5 $2, Asset Cost $2, Percent Replacement 20% Future Cost $2, Assigned Reserves $1, Monthly Assessment $6.29 Interest Contribution $0.45 Reserve Allocation $6.74 This is for the phased replacements of the docks. Docks generally have a 20-year lifespan and will be replaced in 5 phases. Various rebuilds have occurred over the years which have made establishing an exact 'placed in service date' impossible. Some work has been performed by volunteers at various intervals. The useful life of this component is predicated on the assumption the component was properly installed or applied. Costs projected assume that maintenance is performed on a periodic basis, which will significantly aid in components reaching the estimated life expectancy. These costs do not take into consideration any possible future increase in permit costs and fees that may be required. PAGE 2-113

129 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Docks: Replace - Phase 5 Asset ID 1050 Capital Docks Placed in Service May 1999 Useful Life 20 Adjustment 8 Replacement Year Remaining Life 11 5 $2, Asset Cost $2, Percent Replacement 20% Future Cost $2, Assigned Reserves none Monthly Assessment $11.97 Interest Contribution $0.03 Reserve Allocation $12.00 This is for the phased replacements of the docks. Docks generally have a 20-year lifespan and will be replaced in 5 phases. Various rebuilds have occurred over the years which have made establishing an exact 'placed in service date' impossible. Some work has been performed by volunteers at various intervals. Note: This line item is a provision for an anticipated expense. Should the Association determine that the cost of this item is less than or greater than the amount provided for herein, this reserve study should be updated to reflect the actual component cost. This cost is an estimate and will be updated when the full scope of work is known. PAGE 2-114

130 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Docks - Total Current Cost $10,000 Assigned Reserves $5,970 Fully Funded Reserves $7,184 PAGE 2-115

131 ReserveStudyUpdate.com, LLC Detail Report by Category (Threshold Funding Model) Detail Report Summary Total of All Assets Assigned Reserves $591, Monthly Contribution $6, Monthly Interest $ Monthly Allocation $6, Contingency at 3.00% Assigned Reserves $18, Monthly Contribution $ Monthly Interest $5.13 Monthly Allocation $ Grand Total Assigned Reserves $610, Monthly Contribution $6, Monthly Interest $ Monthly Allocation $6, PAGE 2-116

132 ReserveStudyUpdate.com, LLC Category Detail Index Asset IDDescription Replacement Page 1041 Appliances & Furniture: Phased Replacements Arborist: Tree Work Asphalt: Overlay Asphalt: Seal Coat & Repairs Backflow Devices Unfunded Backhoe Bridge: Wood - Island Drive - Replace Bridge: Wood - North Shore Drive - Replace Concrete Repairs: Spillway, Wier, Fish Ladder Decks: Clubhouse Docks: Replace - Phase Docks: Replace - Phase Docks: Replace - Phase Docks: Replace - Phase Docks: Replace - Phase Drain Valve: Dam Dredger Dredging: Spoils Pond Fence: Tennis Court Filtration System: Package Unit Fire Hydrants Unfunded Interior Renovation: Phased Renovation Laboratory Equipment: Phased Replacement Lift Station: Rebuild - Station Lift Station: Rebuild - Station Lift Station: Rebuild - Station Lift Station: Rebuild - Station Mailboxes: Replace Piping, Concrete, Partial Replacements - Sewage Treatment Piping, Concrete, Partial Replacements - Water Treatment Playground Equipment: Replace Pumps: Effluent - Clearwell # PAGE 2-117

133 ReserveStudyUpdate.com, LLC Category Detail Index Asset IDDescription Replacement Page 1036 Pumps: Effluent - Clearwell # Pumps: Lift Station - Phase Pumps: Lift Station - Phase Pumps: Lift Station - Phase Pumps: Lift Station - Phase Pumps: Lift Station - Phase Pumps: Lift Station - Phase Pumps: Lift Station - Phase Pumps: Lift Station - Phase Rip Rap: Sewage Treatment Plant Shore Roof Assemblies Settlement Lagoon (Removed) Unfunded Sewage Treatment Plant: Replace/Rebuild Sewage Treatment Plant: Upgrades Siding: Plywood Tennis Court: Resurface Truck: 1992 Ford F-250 (Newer Make & Model) Truck: 2005 Chevy Colorado (Newer Make & Model) Welder / Generator: Replace Windows & Doors: Phased Replacement Zero Turn Mower: (Capital Upgrade) Total Funded Assets 50 Total Unfunded Assets 3 Total Assets 53 PAGE 2-118

134 ReserveStudyUpdate.com, LLC Annual Expenditure Chart PAGE 2-119

135 ReserveStudyUpdate.com, LLC Funding Model Reserve Ending Balance Comparison Chart The chart above compares the projected reserve ending balances of the three funding models (Current Assessment Funding Model, Threshold Funding Model and Component Funding Model) over 30 years. PAGE 2-120

136 ReserveStudyUpdate.com, LLC Funding Model Comparison by Percent Funded The chart above compares the three funding models (Current Assessment Funding Model, Threshold Funding Model and Component Funding Model) by the percentage fully funded over 30 years. This allows your association to view and then choose the funding model that might best fit your community s needs. PAGE 2-121

137 ReserveStudyUpdate.com, LLC Funding Model Assessment Comparison Chart The chart above compares the annual assessment of the three funding models (Current Assessment Funding Model, Threshold Funding Model and Component Funding Model) over 30 years. PAGE 2-122

138 ReserveStudyUpdate.com, LLC Spread Sheet Description Appliances & Furniture: Phased Replacements 1,681 Arborist: Tree Work 15,345 17,193 Asphalt: Overlay Asphalt: Seal Coat & Repairs 39,780 44,570 Backflow Devices Unfunded Backhoe 50,000 Bridge: Wood - Island Drive - Replace 93,022 Bridge: Wood - North Shore Drive - Replace Concrete Repairs: Spillway, Wier, Fish Ladder 56,616 Decks: Clubhouse Docks: Replace - Phase 1 2,141 Docks: Replace - Phase 2 2,241 Docks: Replace - Phase 3 2,345 Docks: Replace - Phase 4 Docks: Replace - Phase 5 Drain Valve: Dam 26,000 Dredger Dredging: Spoils Pond 32,857 Fence: Tennis Court 10,696 Filtration System: Package Unit Fire Hydrants Unfunded Interior Renovation: Phased Renovation 2,093 2,345 Laboratory Equipment: Phased Replacement 6,279 7,035 Lift Station: Rebuild - Station 1 Lift Station: Rebuild - Station 2 Lift Station: Rebuild - Station 3 Lift Station: Rebuild - Station 4 Mailboxes: Replace 8,036 Piping, Concrete, Partial Replacements - Sewage Treatment 7,360 8,247 Piping, Concrete, Partial Replacements - Water Treatment 7,360 8,247 Playground Equipment: Replace PAGE 2-123

139 ReserveStudyUpdate.com, LLC Spread Sheet Description Pumps: Lift Station - Phase 1 3,000 3,599 Pumps: Lift Station - Phase 2 3,069 Pumps: Lift Station - Phase 3 3,140 Pumps: Lift Station - Phase 4 3,212 Pumps: Lift Station - Phase 5 3,286 Pumps: Lift Station - Phase 6 3,361 Pumps: Lift Station - Phase 7 3,439 Pumps: Lift Station - Phase 8 3,518 Rip Rap: Sewage Treatment Plant Shore Roof Assemblies 24,470 Settlement Lagoon (Removed) Unfunded Sewage Treatment Plant: Replace/Rebuild Sewage Treatment Plant: Upgrades 32,857 Siding: Plywood 13,806 Tennis Court: Resurface 9,594 Truck: 1992 Ford F-250 (Newer Make & Model) 15,345 Truck: 2005 Chevy Colorado (Newer Make & Model) Welder / Generator: Replace Windows & Doors: Phased Replacement 4,126 Zero Turn Mower: (Capital Upgrade) 9,419 Year Total: 134,816 58,229 20,931 20,074 68,999 51, ,773 15, ,810 PAGE 2-124

140 ReserveStudyUpdate.com, LLC Spread Sheet Description Appliances & Furniture: Phased Replacements 2,016 Arborist: Tree Work 19,263 21,582 Asphalt: Overlay 436,947 Asphalt: Seal Coat & Repairs 49,937 55,950 Backflow Devices Unfunded Backhoe Bridge: Wood - Island Drive - Replace Bridge: Wood - North Shore Drive - Replace 145,392 Concrete Repairs: Spillway, Wier, Fish Ladder Decks: Clubhouse Docks: Replace - Phase 1 Docks: Replace - Phase 2 Docks: Replace - Phase 3 Docks: Replace - Phase 4 2,454 Docks: Replace - Phase 5 2,568 Drain Valve: Dam Dredger 188,299 Dredging: Spoils Pond 41,246 Fence: Tennis Court Filtration System: Package Unit 35,162 Fire Hydrants Unfunded Interior Renovation: Phased Renovation 2,627 2,944 Laboratory Equipment: Phased Replacement 7,882 8,832 Lift Station: Rebuild - Station 1 31,383 Lift Station: Rebuild - Station 2 36,798 Lift Station: Rebuild - Station 3 Lift Station: Rebuild - Station 4 Mailboxes: Replace Piping, Concrete, Partial Replacements - Sewage Treatment 9,240 Piping, Concrete, Partial Replacements - Water Treatment 9,240 Playground Equipment: Replace 1,350 PAGE 2-125

141 ReserveStudyUpdate.com, LLC Spread Sheet Description Pumps: Lift Station - Phase 1 4,316 Pumps: Lift Station - Phase 2 3,681 4,416 Pumps: Lift Station - Phase 3 3,766 Pumps: Lift Station - Phase 4 3,853 Pumps: Lift Station - Phase 5 3,941 Pumps: Lift Station - Phase 6 4,032 Pumps: Lift Station - Phase 7 4,125 Pumps: Lift Station - Phase 8 4,219 Rip Rap: Sewage Treatment Plant Shore Roof Assemblies Settlement Lagoon (Removed) Unfunded Sewage Treatment Plant: Replace/Rebuild 49,084 58,877 Sewage Treatment Plant: Upgrades 39,412 Siding: Plywood Tennis Court: Resurface Truck: 1992 Ford F-250 (Newer Make & Model) Truck: 2005 Chevy Colorado (Newer Make & Model) 19,263 Welder / Generator: Replace 3,595 Windows & Doors: Phased Replacement 4,623 5,180 Zero Turn Mower: (Capital Upgrade) 11,824 Year Total: 66, ,970 49,570 65,687 24, ,762 95,331 31, ,866 PAGE 2-126

142 ReserveStudyUpdate.com, LLC Spread Sheet Description Appliances & Furniture: Phased Replacements 2,418 Arborist: Tree Work 24,181 27,093 Asphalt: Overlay Asphalt: Seal Coat & Repairs 62,687 70,235 Backflow Devices Unfunded Backhoe 78,792 Bridge: Wood - Island Drive - Replace Bridge: Wood - North Shore Drive - Replace Concrete Repairs: Spillway, Wier, Fish Ladder 79,629 Decks: Clubhouse 30,113 Docks: Replace - Phase 1 3,374 Docks: Replace - Phase 2 3,531 Docks: Replace - Phase 3 Docks: Replace - Phase 4 Docks: Replace - Phase 5 Drain Valve: Dam Dredger Dredging: Spoils Pond 51,777 Fence: Tennis Court Filtration System: Package Unit Fire Hydrants Unfunded Interior Renovation: Phased Renovation 3,298 Laboratory Equipment: Phased Replacement 9,895 Lift Station: Rebuild - Station 1 Lift Station: Rebuild - Station 2 Lift Station: Rebuild - Station 3 42,177 Lift Station: Rebuild - Station 4 Mailboxes: Replace Piping, Concrete, Partial Replacements - Sewage Treatment 10,352 11,599 Piping, Concrete, Partial Replacements - Water Treatment 10,352 11,599 Playground Equipment: Replace 1,898 PAGE 2-127

143 ReserveStudyUpdate.com, LLC Spread Sheet Description Pumps: Lift Station - Phase 1 5,178 Pumps: Lift Station - Phase 2 5,297 Pumps: Lift Station - Phase 3 4,517 5,419 Pumps: Lift Station - Phase 4 4,621 Pumps: Lift Station - Phase 5 4,728 Pumps: Lift Station - Phase 6 4,836 Pumps: Lift Station - Phase 7 4,947 Pumps: Lift Station - Phase 8 5,061 Rip Rap: Sewage Treatment Plant Shore 12,607 Roof Assemblies 38,561 Settlement Lagoon (Removed) Unfunded Sewage Treatment Plant: Replace/Rebuild 70,624 Sewage Treatment Plant: Upgrades 47,275 Siding: Plywood Tennis Court: Resurface 15,118 Truck: 1992 Ford F-250 (Newer Make & Model) 24,181 Truck: 2005 Chevy Colorado (Newer Make & Model) Welder / Generator: Replace Windows & Doors: Phased Replacement 5,804 6,502 Zero Turn Mower: (Capital Upgrade) 14,842 Year Total: 55,334 16, , ,611 32,983 73,810 58, ,687 54,132 PAGE 2-128

144 ReserveStudyUpdate.com, LLC Spread Sheet Description Appliances & Furniture: Phased Replacements 2,901 Arborist: Tree Work Asphalt: Overlay Asphalt: Seal Coat & Repairs Backflow Devices Unfunded Backhoe Bridge: Wood - Island Drive - Replace Bridge: Wood - North Shore Drive - Replace Concrete Repairs: Spillway, Wier, Fish Ladder Decks: Clubhouse Docks: Replace - Phase 1 Docks: Replace - Phase 2 Docks: Replace - Phase 3 3,695 Docks: Replace - Phase 4 3,867 Docks: Replace - Phase 5 Drain Valve: Dam Dredger Dredging: Spoils Pond Fence: Tennis Court Filtration System: Package Unit Fire Hydrants Unfunded Interior Renovation: Phased Renovation 3,695 Laboratory Equipment: Phased Replacement 11,086 Lift Station: Rebuild - Station 1 Lift Station: Rebuild - Station 2 Lift Station: Rebuild - Station 3 Lift Station: Rebuild - Station 4 48,343 Mailboxes: Replace Piping, Concrete, Partial Replacements - Sewage Treatment 12,995 Piping, Concrete, Partial Replacements - Water Treatment 12,995 Playground Equipment: Replace PAGE 2-129

145 ReserveStudyUpdate.com, LLC Spread Sheet Description Pumps: Lift Station - Phase 1 Pumps: Lift Station - Phase 2 Pumps: Lift Station - Phase 3 Pumps: Lift Station - Phase 4 5,543 Pumps: Lift Station - Phase 5 5,671 Pumps: Lift Station - Phase 6 5,801 Pumps: Lift Station - Phase 7 Pumps: Lift Station - Phase 8 Rip Rap: Sewage Treatment Plant Shore Roof Assemblies Settlement Lagoon (Removed) Unfunded Sewage Treatment Plant: Replace/Rebuild Sewage Treatment Plant: Upgrades 56,707 Siding: Plywood Tennis Court: Resurface Truck: 1992 Ford F-250 (Newer Make & Model) Truck: 2005 Chevy Colorado (Newer Make & Model) Welder / Generator: Replace Windows & Doors: Phased Replacement Zero Turn Mower: (Capital Upgrade) Year Total: 24,021 88,369 76,382 PAGE 2-130

146 ReserveStudyUpdate.com, LLC Asset Current Cost by Category This is the distribution of reserves by category PAGE 2-131