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

Transcription

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

2 TABLE OF CONTENTS Section 1 General Information Section 2 Common Areas Section 3 Clubhouse Section 4 Photographs

3 August 5, 2013 Board of Directors The Bear Creek Crossing Owner's Association, Inc. Bear Haven Way Sevierville, Tennessee Re: Reserve Study Report Dear Board Members: As authorized, this reserve study report has been prepared on The Bear Creek Crossing Owner's Association, Inc. property, located at Bear Haven Way in Sevierville, Tennessee. A summary of our recommendations and findings can be found on the first page of each section. Your report has been divided into sections for easier referencing. The first section includes all of your general information such as report definitions, accounting formulas used, statutory requirements, etc. The graphs show in graph form the reserve schedules we have calculated and should give you a better understanding of the numbers. In this report we have taken two approaches to calculating the 2014 reserve contribution amount. The schedule uses straight line accounting method. This schedule will give you the recommended 2014 straight line contribution amount. The cash flow calculates the annual contribution amount based on a thirty year positive cash flow. The total recommended 2014 contribution amount using this method is based on pooling all of the reserve funds and creating one general reserve fund. For further explanation of these two funding methods, please refer to the Reserve Study Accounting page in section 1. Thank you for allowing my Company the opportunity of serving you and your Association. Upon your review of this report, should there be any questions, please do not hesitate to contact me. Prepared By, Reviewed By, D.J. Muehlstedt, Jr. Sr. Reserve Analyst/Insurance Appraiser CCI, CCC, Certified Marshall & Swift Dreux Isaac President Dreux Isaac & Associates, Inc. Page 1-1 Reserve Study Report

4 REPORT PROCESS The purpose of this report is to provide The Bear Creek Crossing Owner's Association, Inc. with specific information necessary in establishing a capital reserves program for the current budget year beginning January 1, 2014 and ending December 31, The process of preparing this report began with an on-site inspection of the Association's property. During this inspection, an initial review was made of past reserve expenditures and the current reserve plan. From there, a complete inventory was made of the common area elements and a reserve component list was developed. Using this list, a takeoff was then made of each component through a review of available construction drawings, checking maintenance records, taking pertinent measurements and noting its current observed physical condition. Additional background information on the property was obtained through discussions with various contact personnel. Using the information gathered during the site inspection, calculations were then performed to determine the correct quantity of each component. From there cost estimates were then prepared based on a combination of local contractor information, any available bid proposals, and our own database of construction costs. Asset lives have been determined using a combination of published guidelines and our review of the properties climatic conditions and the components observed physical condition noted during our site inspection. Based on the latest available financial records, projections were made as to what the Association's end of year reserve balances would be. However, accumulating interest on the varying reserve balance amounts and/or unplanned expenditures may cause the actual end of year reserve balances to differ from what is presented in this report. Dreux Isaac & Associates, Inc. Page 1-2 Reserve Study Report

5 RESERVE STUDY ACCOUNTING This reserve study report calculates the annual reserve contribution using two methods. These are as follows: Straight Line Funding Plan This plan utilizes straight line accounting formulas. Straight line accounting is based on current costs and neither interest or inflation is factored into the calculations. Straight line accounting takes each individual line item component listed in the reserve schedule breakdown and computes its' annual contribution amount by taking its' unfunded balance (current replacement cost minus projected year end reserve balance) and divides it s by the component's remaining life. This is the amount that should be contributed into the reserves accounts over the component's remaining life. 30 Year Pooled Cash Flow Plan To calculate the annual contribution amount using this method, a thirty year cash flow analysis is performed to determine that there will be adequate reserve funds on deposit as the reserve components of the property age and are repaired and/or replaced. This analysis takes the total beginning year reserve balance along with the projected annual reserve expenditures over a thirty year period, and through pooling of all of the reserve funds and creating one general reserve fund, arrives at an annual contribution amount so as to provide a positive cash flow and adequate reserve account balance over the next thirty years. Unlike straight line accounting, the numbers calculated in the thirty year cash flow plan factor in both interest and inflation as well as any annual contribution increases. Dreux Isaac & Associates, Inc. Page 1-3 Reserve Study Report

6 REPORT TERMINOLOGY & DEFINITIONS RESERVES - Monies set aside for the projected repair and/or replacement of the associations common elements. COMPONENT - A specific item or element which is part of the association's common area assets and is considered to require reserve funding. QUANTITY - The quantity or amount of each reserve component element. UNITS - The unit of measurement for each quantity. COST PER UNIT - The estimated cost to replace a reserve component per unit of measurement. CURRENT COST - The estimated current cost to replace a reserve component. USEFUL LIFE - The total average estimated life, in years, of a component to maintain its useful purpose. REMG (REMAINING) LIFE - The estimated remaining useful life, in years, of a reserve component as of the current budget year. 12/31/2013 BALANCE - A projection of estimated reserve funds at the end of the previous budget year. UNFUNDED BALANCE - The total remaining amount of reserve funds that are required to fully fund a component. Calculated by subtracting the component's current replacement cost from its' year end reserve balance CONTRIBUTION - This is the total annual contribution amount for the current budget year calculated by dividing every component's unfunded balance by its' remaining life. Dreux Isaac & Associates, Inc. Page 1-4 Reserve Study Report

7 RESERVE SCHEDULE UNIT ABBREVIATIONS Sq Ft - Square Feet Lp Sm - Lump Sum Dbl Ct - Double Tennis Court Ln Ft - Linear Feet Allow - Allowance Court - Court Each - Each Hp - Horsepower Units - Units Sq Yds - Square Yards Cu Ft - Cubic Feet Cu Yds - Cubic Yards Kw - Kilowatts Pair - Pair Squares - Squares (roofing) ANNUAL UPDATE REPORTS Inflation, labor rates, material availability, taxes, insurance and asset lives are just but a few of the ever changing variables addressed in your reserve study report. Now that your "First Time" reserve study has been completed, it is important that you keep your program on target with our annual "Update" reports. Since the initial calculations on the property have now been performed, we can offer this service to you (with or without site re-inspection) at just a percentage of the cost of your "First Time" reserve study. We recommend annual "Update" reports (without site re-inspection) for the first three years following your "First Time" reserve study. In performing these reports, we will take the information from your computer file and calculate current replacement cost values, asset lives and financial figures based on the latest available information. Then in the fourth year we suggest making a brief site re-inspection to observe the present physical condition of your reserve components to determine if any adjustments should be made to the remaining life expectancies, or unit costs of each component. Once completed we can then repeat this four year cycle of your reserve program for as long as you wish. By following this recommended plan, your reserve program will have the most accurate information available each year from which you can make sound budget decisions. It is also our recommendation that the Association contact our office annually to inquire about having an "Update" report prepared for the coming year. However, you can request an "Update" report at any time by contacting us. Dreux Isaac & Associates, Inc. Page 1-5 Reserve Study Report

8 TERMS AND CONDITIONS Dreux Isaac & Associates, Inc. uses various sources to accumulate data on construction material and labor prices in order to arrive at its opinion of cost. The information obtained from these sources is considered to be correct and reasonable, but is not guaranteed. No liability is assumed as a result of inaccuracies or errors in such information or estimates, although reasonable efforts have been made to confirm them. Unless noted, each component cost is based on replacing that component as a complete unit at one time. While all cost data is believed to be accurate and reliable to within reasonable limits, other factors such as inflation, and availability of materials and qualified personnel and/or acts of nature as well as catastrophic conditions, could significantly affect current prices. No consideration has been given to labor bonuses; material premiums; additional costs to conform property replaced to building codes, ordinances or other legal restrictions; or the cost of demolition in connection with replacement or the removal of destroyed property. No value of land has been included. We have no present or contemplated future interest in the property that is the subject of this report and that we have no personal interest or bias with respect to the subject matter of this report or the parties involved. We certify that neither the employment to prepare this report, nor the compensation, is contingent upon the estimates of value contained herein. In the event that complete construction plans/blueprints were not available for use in the completion of this report, assumptions were made regarding unseen construction components, based on our experience with properties similar to the subject. In the event that these assumptions are in error, we reserve the right to modify this appraisal, including value conclusions. Information, estimates, and opinions furnished and contained in the report, were obtained from sources considered reliable and are believed to be true and correct. However, for accuracy of such items furnished we can assume no responsibility. Our assessment of the useful and remaining lives and/or physical condition of the assets described within has been based upon visual inspection. No testing has been performed. No warranty is made and no liability is assumed for the soundness of the structure or its components. The report data derived and expressed within is not applicable to any other property regardless of similarity. The authors of this report shall not be required to give testimony or appear in court or at any administrative proceeding relating to this report, unless this report is, by agreement, made in anticipation of litigation. The liability of Dreux Isaac & Associates, Inc., the author(s) of this report, and any other employees of Dreux Isaac & Associates, Inc. is limited in total to the fee collected for preparation of this report. According to the best of our knowledge and belief, the statements of fact contained in this report which are used as the basis of the analysis, opinions and conclusions stated herein, are true and correct. Acceptance of, and/or use of, this report constitutes acceptance of the above conditions. Dreux Isaac & Associates, Inc. Page 1-6 Reserve Study Report

9 REPORT NOTES 1. On the straight line plan summary page the range of useful life and remaining life numbers shown on this "Reserve Schedule Summary" page reflect the minimum and maximum life expectancies of the individual items within each category. 2. The current reserve schedule does not include any funding for the force main sand filtration system which handles the waste water from all cabins where it's collected, treated, and sent to a drip field area. While a portion of the system consisting of holding tanks and piping running between the cabins does fall under the association no reserve funding has been established as it's believed to fall under normal operating and maintenance. Should this change in the future an allowance could be established to offset any unexpected costs beyond what is under the O&M budget. 3. No reserve funding has been established for replacement of the stormwater system. It is believed to be a lifetime system that will require periodic cleaning. It is possible that a failure or breakdown in a section of the system may occur, but the location, timing and scope of such an occurrence is unknown and generally unpredictable. A periodic inspection of the system is recommended. 4. Allowances established in the current reserve schedule are based on what is typically observed at other similar properties. These allowance lives and costs are subjective in nature and can be adjusted in a future update report to better reflect this particular property once a documented history and frequency of spending is better known for each of the asset allowances as currently shown in this reserve schedule. 5. The current board has asked to include a General Reserve for any unexpected items which may come up and serve as a catch all; it is based on 5% to 10% of the total reserve. Dreux Isaac & Associates, Inc. Page 1-7 Reserve Study Report

10 Summary of Recommendations & Findings 1. General Information Property Name: The Bear Creek Crossing Owner's Association, Inc. Property Location: Sevierville, Tennessee Property Number: 3943 Report Run Date: 08/02/2013 Property Type: Other Report No: 2921 Version 2 Total Units: 104 Budget Year Begins: 01/01/2014 Phase: Common Areas (1 of 2) Budget Year Ends: 12/31/ Report Findings Total number of categories set up in reserve schedule: 8 Total number of components scheduled for reserve funding: 61 Total current cost of all scheduled reserve components: $599,475 Estimated Beginning Year Reserve Balance: $129,869 Total number of components scheduled for replacement in the 2014 Budget Year: 19 Total cost of components scheduled for replacement in the 2014 Budget Year: $55, Straight Line Reserve Funding Plan Analysis Current Annual Reserve Funding Contribution Amount: $0 Recommended Annual Reserve Funding Contribution Amount: $49,631 Increase (decrease) between Current & Recommended Contribution Amounts: $49,631 Increase (decrease) between Current & Recommended Contribution Amounts: Year Pooled Cash Flow Funding Plan Analysis Current Annual Reserve Funding Contribution Amount: $0 Recommended 2014 Reserve Funding Contribution Amount: $47,437 Recommended 2014 Planned Special Assessment Amount: $0 Total 2014 Reserve Funding and Planned Special Assessment Amount: $47,437 Increase (decrease) between Current & Recommended Contribution Amounts: $47,437 Increase (decrease) between Current & Recommended Contribution Amounts: -- Dreux Isaac & Associates, Inc. Page 2-1 Reserve Study Report

11 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Chart A 2014 Current Reserve Component Costs 7,253 (1.21%) Furniture, Fixtures & Equipment 28,546 (4.76%) General Reserve 18,105 (3.02%) Roofs 11,008 (1.84%) Painting & Waterproofing 209,384 (34.93%) Misc Site Improvements 298,577 (49.81%) Paving 11,087 (1.85%) Misc Building Components 15,515 (2.59%) Mechanical & Electrical Dreux Isaac & Associates, Inc. Page 2-2 Reserve Study Report

12 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Chart B 2014 Actual vs. 100% Funded Straight Line Reserve Balances 297,550 Thousands , Total Estimated 2014 Beginning Year Balances 100% Funded Straight Line 2014 Beginning Year Balances Actual beginning year balances are estimates only based on the latest financial information. 100% funded straight line beginning year balances are based on straight line accounting formulas. Dreux Isaac & Associates, Inc. Page 2-3 Reserve Study Report

13 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Chart C 2014 Funding Contribution Comparisons 0 49,631 47,437 Thousands Total 2013 Annual Contribution Proposed 2014 Straight Line Contribution Proposed 2014 Cash Flow Plan Contribution Proposed 2014 Straight Line Contribution = Unfunded Balance / Remaining Life Dreux Isaac & Associates, Inc. Page 2-4 Reserve Study Report

14 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Chart D 30 Year Pooled Cash Flow Plan (Refer to Section 4 or Report For Data) Thousands , , ,895 65, ,667 Beginning Year Balance Annual Expenditures Annual Contribution 65, ,667 Dreux Isaac & Associates, Inc. Page 2-5 Reserve Study Report

15 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Straight Line Plan Summary Description Current Cost Useful Life Remg Life 12/31/2013 Balance Unfunded Balance 2014 Contribution Roofs 18, ,105 1,508 Painting & Waterproofing 11, ,908 1, Paving 298, , ,577 24,464 Mechanical & Electrical 15, ,000 2,143 Misc Building Components 11, , Misc Site Improvements 209, , ,737 20,600 Furniture, Fixtures & Equipment 7, , General Reserve 28, , Grand Total 599, , ,606 49,631 Dreux Isaac & Associates, Inc. Page 2-6 Reserve Study Report

16 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Description Quantity Units Straight Line Plan Detail Cost Per Unit Current Cost Useful Life Remg Life 12/31/13 Balance Unfunded Balance 2014 Contribution Roofs Roof, Architectural Shingle - Covered Bridge 9 Squares , , Roof, Architectural Shingle - Maintenance Bldg 7 Squares , , Roof, Architectural Shingle - Pool Bldg 35 Squares , ,425 1,035 Roofs Total 3 Components 18, ,105 1,508 Painting & Waterproofing Paint Exterior Gate, Metal Picket - (3 Locations) 468 Sq Ft , , Paint Interior - Pool Bldg 1 Total 1, , , Paint/Stain Exterior and Waterproof - Covered Bridge 1 Total 1, , , Paint/Stain Exterior and Waterproof - Maintenance Bldg 1 Total 1, , , Paint/Stain Exterior and Waterproof - Pool Bldg 1 Total 3, , , Paint/Stain Fence/Railing - Between Cabins (Allowance) 368 Sq Ft Paint/Stain Fence/Railing - Pool Deck 1,176 Sq Ft , , Paint/Stain Wood Interior - Pool Bldg 1 Total 1, , , Painting & Waterproofing Total 8 Components 11, ,908 1, Paving Asphalt Overlay, 1" Milled - Bear Creek Falls Way 2,294 Sq Yds , ,312 1,776 Asphalt Overlay, 1" Milled - Bear Creek Way 9,065 Sq Yds , ,214 7,018 Asphalt Overlay, 1" Milled - Bear Haven Way 1,976 Sq Yds , ,358 1,530 Asphalt Overlay, 1" Milled - Clubhouse Lot 915 Sq Yds , , Asphalt Overlay, 1" Milled - Cougar Crossing Way 10,875 Sq Yds , ,029 8,419 Asphalt Overlay, 1" Milled - Panther Path Way 2,528 Sq Yds , ,486 1,957 Asphalt Overlay, 1" Milled - Timber Wolf Way 3,948 Sq Yds , ,677 3,056 Concrete Sidewalk & Curbing Repair Allowance 1 Total 5, , , Paving Total 8 Components 298, , ,577 24,464 Mechanical & Electrical Dectron System - Indoor Pool 1 Each 15, , ,000 2,143 Water Heater, Electric - Pool Bldg 1 Each Mechanical & Electrical Total 2 Components 15, ,000 2,143 Misc Building Components Maintenance Wood Siding/Fascia/Soffit//Trim Allowance - Maint Bldg 1 Sq Ft 4, , , Dreux Isaac & Associates, Inc. Page 2-7 Reserve Study Report

17 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Description Quantity Units Pool Cost Per Unit Current Cost Useful Life Remg Life 12/31/13 Balance Unfunded Balance 2014 Contribution Gutters & Downspouts - Pool Bldg 144 Ln Ft Restroom Renovation Allowance - Pool Bldg 1 Total 2, , , Wood Fascia/Soffit//Trim Allowance - Pool Bldg 1 Sq Ft 2, , , Misc Building Components Total 4 Components 11, , Misc Site Improvements Access Control Systems Access Control, Gate Operator - Bear Creek Falls 2 Each 4, , , Access Control, Gate Operator - Bear Creek Way 2 Each 4, , , Access Control, Gate Operator - Cougar Crossing 2 Each 4, , , Access Control, Key Pad - Bear Creek Falls 1 Each Access Control, Key Pad - Bear Creek Way 1 Each Access Control, Key Pad - Cougar Crossing 1 Each Gate, Alum Steel Picket, 12' x 6' - Bear Creek Way 2 Each 2, , , Gate, Alum Steel Picket, 13' x 6' - Cougar Crossing 2 Each 2, , , Gate, Alum Steel Picket, 14' x 6' - Bear Creek Falls 2 Each 2, , , Covered Bridge Decking, PT Wood - Covered Bridge Deck 363 Sq Ft , , Railing, Wood Picket - Covered Bridge 50 Ln Ft , , Fence/Railings Fence, Wood, 2 Rail Split - Putt Putt 180 Ln Ft , , Fence/Railing, Wood Picket - Between Cabins (Allow) 100 Ln Ft , , Fence/Railing, Wood Picket - Pool Deck 280 Ln Ft , , Gate, Alum Picket, 32" x 48" - Pool Deck 2 Each , , Guard Rail, Wood - Bear Creek Falls 260 Ln Ft , ,665 1,095 Pool Light Pole & Fixture, Lantern - Pool Deck 3 Each , , Pool Deck Repair Allowance 1 Total 5, , , Pool Equipment, Pump/Motor/Filter Allowance 1 Total 2, , , Pool Finish, Ceramic Tile Trim - Indoor 1 Total 1, , , Pool Finish, Ceramic Tile Trim - Outdoor 1 Total 2, , , Pool Finish, Exposed Aggregate - Indoor 1 Total 4, , , Pool Finish, Exposed Aggregate - Outdoor 1 Total 10, , , Putt Putt Finish, Carpet, Indoor/Outdoor - Putt Putt 210 Sq Yds , , Light Pole & Fixture - Putt Putt 1 Each 2, , , Retaining Walls Retaining Wall Allowance - Between Cabins 12,702 Sq Ft , ,417 71,225 14,245 Retaining Wall, PT Wood - Cougar Crossing Way 80 Sq Ft , , Retaining Wall, Stacked Stone - Outdoor Pool 283 Sq Ft , , Signage Signage Refurbishment Allowance - Entry Monument 1 Total 3, , , Dreux Isaac & Associates, Inc. Page 2-8 Reserve Study Report

18 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Description Quantity Units Cost Per Unit Current Cost Useful Life Remg Life 12/31/13 Balance Unfunded Balance 2014 Contribution Signage Replacement Allowance - Traffic 1 Total 5, , , Waterfall Waterfall Basin Resurfacing 1,667 Sq Ft , , Waterfall, Pump/Motor/Filter Allowance 1 Total 2, , , Misc Site Improvements Total 32 Components 209, , ,737 20,600 Furniture, Fixtures & Equipment Furniture, Outdoor - Indoor Pool 1 Total 1, , , Furniture, Outdoor - Pool Deck 1 Total 4, , , Pool, Safety/Winter Cover - Outdoor Pool 1 Each 1, , , Furniture, Fixtures & Equipment Total 3 Components 7, , General Reserve General Reserve - 5% of Common Area Reserves 1 Total 28, , , General Reserve Total 1 Components 28, , Grand Total 61 Components 599, , ,606 49,631 Dreux Isaac & Associates, Inc. Page 2-9 Reserve Study Report

19 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Cash Flow Plan Summary No Year Beginning Year Balance Annual Reserve Contribution Annual Increase Planned Special Assessments Expenses Inflation Rate Earned Interest Interest Rate Ending Year Balance ,869 47, % 0 55, % % 122, ,635 48, % 0 60, % 1, % 112, ,627 50, % 0 2, % 3, % 164, ,049 51, % 0 12, % 6, % 209, ,760 53, % 0 94, % 5, % 173, ,666 54, % 0 6, % 6, % 228, ,426 56, % 0 49, % 7, % 242, ,720 58, % 0 29, % 8, % 280, ,179 60, % 0 48, % 8, % 300, ,271 61, % 0 3, % 10, % 369, ,847 63, % 0 16, % 12, % 430, ,004 65, % 0 485, % % 10, ,000 65, % 0 17, % 1, % 60, ,212 65, % 0 6, % 3, % 123, ,389 65, % 0 122, % 1, % 68, ,162 65, % 0 39, % 2, % 97, ,116 65, % 0 61, % 3, % 104, ,065 65, % 0 5, % 4, % 168, ,743 65, % 0 18, % 6, % 222, ,087 65, % 0 4, % 8, % 292, ,108 65, % 0 28, % 9, % 339, ,030 65, % 0 127, % 8, % 285, ,300 65, % 0 4, % 10, % 356, ,821 65, % 0 46, % 11, % 387, ,157 65, % 0 252, % 6, % 206, ,179 65, % 0 17, % 7, % 262, ,005 65, % 0 5, % 9, % 332, ,240 65, % 0 27, % 11, % 381, ,732 65, % 0 11, % 13, % 448, ,728 65, % 0 5, % 15, % 524,077 Grand Total 1,855, ,668, ,276 Dreux Isaac & Associates, Inc. Page 2-10 Reserve Study Report

20 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Cash Flow Plan Details Category Description Cost Year 1: 2014 Painting & Waterproofing Paint Interior - Pool Bldg 1,381 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Covered Bridge 1,013 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Maintenance Bldg 1,203 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Pool Bldg 3,409 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 346 Painting & Waterproofing Paint/Stain Fence/Railing - Pool Deck 1,106 Misc Site Improvements Access Control, Gate Operator - Bear Creek Falls 8,206 Misc Site Improvements Access Control, Gate Operator - Bear Creek Way 8,206 Misc Site Improvements Access Control, Gate Operator - Cougar Crossing 8,206 Misc Site Improvements Access Control, Key Pad - Bear Creek Falls 935 Misc Site Improvements Access Control, Key Pad - Bear Creek Way 935 Misc Site Improvements Access Control, Key Pad - Cougar Crossing 935 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,046 Misc Site Improvements Pool Equipment, Pump/Motor/Filter Allowance 2,790 Misc Site Improvements Pool Finish, Ceramic Tile Trim - Indoor 1,355 Misc Site Improvements Pool Finish, Exposed Aggregate - Indoor 4,759 Misc Site Improvements Waterfall, Pump/Motor/Filter Allowance 2,500 Furniture, Fixtures & Equipment Furniture, Outdoor - Indoor Pool 1,481 Furniture, Fixtures & Equipment Furniture, Outdoor - Pool Deck 4,772 Year 1 Total 55,584 Year 2: 2015 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 353 Paving Concrete Sidewalk & Curbing Repair Allowance 5,100 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,087 Misc Site Improvements Pool Finish, Ceramic Tile Trim - Outdoor 2,294 Misc Site Improvements Pool Finish, Exposed Aggregate - Outdoor 11,039 Misc Site Improvements Signage Refurbishment Allowance - Entry Monument 3,060 Misc Site Improvements Waterfall Basin Resurfacing 7,482 General Reserve General Reserve - 5% of Common Area Reserves 29,117 Year 2 Total 60,532 Year 3: 2016 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 364 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,150 Year 3 Total 2,514 Year 4: 2017 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 374 Painting & Waterproofing Paint/Stain Wood Interior - Pool Bldg 1,569 Mechanical & Electrical Water Heater, Electric - Pool Bldg 557 Dreux Isaac & Associates, Inc. Page 2-11 Reserve Study Report

21 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Category Description Cost Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,214 Misc Site Improvements Signage Replacement Allowance - Traffic 6,439 Furniture, Fixtures & Equipment Pool, Safety/Winter Cover - Outdoor Pool 1,082 Year 4 Total 12,235 Year 5: 2018 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 386 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,280 Misc Site Improvements Pool Equipment, Pump/Motor/Filter Allowance 3,110 Misc Site Improvements Retaining Wall Allowance - Between Cabins 88,767 Year 5 Total 94,543 Year 6: 2019 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 397 Painting & Waterproofing Paint/Stain Fence/Railing - Pool Deck 1,270 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,349 Misc Site Improvements Waterfall, Pump/Motor/Filter Allowance 2,870 Year 6 Total 6,886 Year 7: 2020 Painting & Waterproofing Paint Exterior Gate, Metal Picket - (3 Locations) 1,301 Painting & Waterproofing Paint Interior - Pool Bldg 1,633 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Covered Bridge 1,198 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Maintenance Bldg 1,422 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Pool Bldg 4,031 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 409 Mechanical & Electrical Dectron System - Indoor Pool 17,737 Misc Site Improvements Railing, Wood Picket - Covered Bridge 1,210 Misc Site Improvements Fence, Wood, 2 Rail Split - Putt Putt 2,224 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,419 Misc Site Improvements Fence/Railing, Wood Picket - Pool Deck 6,771 Misc Site Improvements Guard Rail, Wood - Bear Creek Falls 9,064 Year 7 Total 49,419 Year 8: 2021 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 421 Misc Site Improvements Gate, Alum Steel Picket, 12' x 6' - Bear Creek Way 6,704 Misc Site Improvements Gate, Alum Steel Picket, 13' x 6' - Cougar Crossing 7,003 Misc Site Improvements Gate, Alum Steel Picket, 14' x 6' - Bear Creek Falls 7,266 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,492 Misc Site Improvements Gate, Alum Picket, 32" x 48" - Pool Deck 1,245 Misc Site Improvements Finish, Carpet, Indoor/Outdoor - Putt Putt 3,913 Year 8 Total 29,044 Dreux Isaac & Associates, Inc. Page 2-12 Reserve Study Report

22 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Category Description Cost Year 9: 2022 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 434 Misc Site Improvements Access Control, Gate Operator - Bear Creek Falls 10,294 Misc Site Improvements Access Control, Gate Operator - Bear Creek Way 10,294 Misc Site Improvements Access Control, Gate Operator - Cougar Crossing 10,294 Misc Site Improvements Access Control, Key Pad - Bear Creek Falls 1,173 Misc Site Improvements Access Control, Key Pad - Bear Creek Way 1,173 Misc Site Improvements Access Control, Key Pad - Cougar Crossing 1,173 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,567 Misc Site Improvements Pool Equipment, Pump/Motor/Filter Allowance 3,500 Furniture, Fixtures & Equipment Furniture, Outdoor - Indoor Pool 1,858 Furniture, Fixtures & Equipment Furniture, Outdoor - Pool Deck 5,986 Year 9 Total 48,746 Year 10: 2023 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 447 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,644 Year 10 Total 3,091 Year 11: 2024 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 460 Painting & Waterproofing Paint/Stain Fence/Railing - Pool Deck 1,472 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,723 Misc Site Improvements Pool Finish, Ceramic Tile Trim - Indoor 1,803 Misc Site Improvements Pool Finish, Exposed Aggregate - Indoor 6,334 Misc Site Improvements Waterfall, Pump/Motor/Filter Allowance 3,327 Year 11 Total 16,119 Year 12: 2025 Roofs Roof, Architectural Shingle - Covered Bridge 4,380 Roofs Roof, Architectural Shingle - Maintenance Bldg 3,406 Roofs Roof, Architectural Shingle - Pool Bldg 17,032 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 474 Paving Asphalt Overlay, 1" Milled - Bear Creek Falls Way 29,214 Paving Asphalt Overlay, 1" Milled - Bear Creek Way 115,440 Paving Asphalt Overlay, 1" Milled - Bear Haven Way 25,165 Paving Asphalt Overlay, 1" Milled - Clubhouse Lot 11,653 Paving Asphalt Overlay, 1" Milled - Cougar Crossing Way 138,490 Paving Asphalt Overlay, 1" Milled - Panther Path Way 32,194 Paving Asphalt Overlay, 1" Milled - Timber Wolf Way 50,277 Paving Concrete Sidewalk & Curbing Repair Allowance 6,854 Misc Building Components Restroom Renovation Allowance - Pool Bldg 3,964 Dreux Isaac & Associates, Inc. Page 2-13 Reserve Study Report

23 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Category Description Cost Misc Site Improvements Decking, PT Wood - Covered Bridge Deck 5,674 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,805 Misc Site Improvements Pool Deck Repair Allowance 6,854 Misc Site Improvements Pool Finish, Ceramic Tile Trim - Outdoor 3,083 Misc Site Improvements Pool Finish, Exposed Aggregate - Outdoor 14,836 Misc Site Improvements Signage Refurbishment Allowance - Entry Monument 4,112 Misc Site Improvements Waterfall Basin Resurfacing 10,055 Year 12 Total 485,962 Year 13: 2026 Painting & Waterproofing Paint Interior - Pool Bldg 1,950 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Covered Bridge 1,430 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Maintenance Bldg 1,699 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Pool Bldg 4,813 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 489 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,889 Misc Site Improvements Pool Equipment, Pump/Motor/Filter Allowance 3,939 Year 13 Total 17,209 Year 14: 2027 Painting & Waterproofing Paint Exterior Gate, Metal Picket - (3 Locations) 1,600 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 503 Misc Building Components Gutters & Downspouts - Pool Bldg 1,006 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 2,975 Year 14 Total 6,084 Year 15: 2028 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 518 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,065 Misc Site Improvements Retaining Wall Allowance - Between Cabins 119,296 Year 15 Total 122,879 Year 16: 2029 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 534 Painting & Waterproofing Paint/Stain Fence/Railing - Pool Deck 1,706 Painting & Waterproofing Paint/Stain Wood Interior - Pool Bldg 2,237 Mechanical & Electrical Water Heater, Electric - Pool Bldg 795 Misc Building Components Wood Siding/Fascia/Soffit//Trim Allowance - Maint Bldg 7,077 Misc Building Components Wood Fascia/Soffit//Trim Allowance - Pool Bldg 4,499 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,157 Misc Site Improvements Finish, Carpet, Indoor/Outdoor - Putt Putt 4,957 Misc Site Improvements Signage Replacement Allowance - Traffic 9,180 Misc Site Improvements Waterfall, Pump/Motor/Filter Allowance 3,857 Dreux Isaac & Associates, Inc. Page 2-14 Reserve Study Report

24 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Category Description Cost Furniture, Fixtures & Equipment Pool, Safety/Winter Cover - Outdoor Pool 1,543 Year 16 Total 39,542 Year 17: 2030 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 550 Misc Site Improvements Access Control, Gate Operator - Bear Creek Falls 13,040 Misc Site Improvements Access Control, Gate Operator - Bear Creek Way 13,040 Misc Site Improvements Access Control, Gate Operator - Cougar Crossing 13,040 Misc Site Improvements Access Control, Key Pad - Bear Creek Falls 1,486 Misc Site Improvements Access Control, Key Pad - Bear Creek Way 1,486 Misc Site Improvements Access Control, Key Pad - Cougar Crossing 1,486 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,251 Misc Site Improvements Pool Equipment, Pump/Motor/Filter Allowance 4,434 Furniture, Fixtures & Equipment Furniture, Outdoor - Indoor Pool 2,353 Furniture, Fixtures & Equipment Furniture, Outdoor - Pool Deck 7,583 Year 17 Total 61,749 Year 18: 2031 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 566 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,349 Misc Site Improvements Light Pole & Fixture, Lantern - Pool Deck 1,989 Year 18 Total 5,904 Year 19: 2032 Painting & Waterproofing Paint Interior - Pool Bldg 2,328 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Covered Bridge 1,708 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Maintenance Bldg 2,028 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Pool Bldg 5,747 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 583 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,449 Misc Site Improvements Retaining Wall, PT Wood - Cougar Crossing Way 2,949 Year 19 Total 18,792 Year 20: 2033 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 601 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,553 Year 20 Total 4,154 Year 21: 2034 Painting & Waterproofing Paint Exterior Gate, Metal Picket - (3 Locations) 1,967 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 619 Painting & Waterproofing Paint/Stain Fence/Railing - Pool Deck 1,978 Dreux Isaac & Associates, Inc. Page 2-15 Reserve Study Report

25 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Category Description Cost Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,659 Misc Site Improvements Pool Equipment, Pump/Motor/Filter Allowance 4,990 Misc Site Improvements Pool Finish, Ceramic Tile Trim - Indoor 2,424 Misc Site Improvements Pool Finish, Exposed Aggregate - Indoor 8,512 Misc Site Improvements Waterfall, Pump/Motor/Filter Allowance 4,471 Year 21 Total 28,620 Year 22: 2035 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 637 Paving Concrete Sidewalk & Curbing Repair Allowance 9,211 Mechanical & Electrical Dectron System - Indoor Pool 27,633 Misc Site Improvements Railing, Wood Picket - Covered Bridge 1,885 Misc Site Improvements Fence, Wood, 2 Rail Split - Putt Putt 3,465 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,769 Misc Site Improvements Fence/Railing, Wood Picket - Pool Deck 10,549 Misc Site Improvements Guard Rail, Wood - Bear Creek Falls 14,121 Misc Site Improvements Pool Finish, Ceramic Tile Trim - Outdoor 4,143 Misc Site Improvements Pool Finish, Exposed Aggregate - Outdoor 19,938 Misc Site Improvements Retaining Wall, Stacked Stone - Outdoor Pool 13,316 Misc Site Improvements Signage Refurbishment Allowance - Entry Monument 5,527 Misc Site Improvements Waterfall Basin Resurfacing 13,513 Year 22 Total 127,707 Year 23: 2036 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 657 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,882 Year 23 Total 4,539 Year 24: 2037 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 676 Misc Site Improvements Gate, Alum Steel Picket, 12' x 6' - Bear Creek Way 10,757 Misc Site Improvements Gate, Alum Steel Picket, 13' x 6' - Cougar Crossing 11,238 Misc Site Improvements Gate, Alum Steel Picket, 14' x 6' - Bear Creek Falls 11,660 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 3,999 Misc Site Improvements Gate, Alum Picket, 32" x 48" - Pool Deck 1,997 Misc Site Improvements Finish, Carpet, Indoor/Outdoor - Putt Putt 6,280 Year 24 Total 46,607 Year 25: 2038 Painting & Waterproofing Paint Interior - Pool Bldg 2,780 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Covered Bridge 2,039 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Maintenance Bldg 2,422 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Pool Bldg 6,863 Dreux Isaac & Associates, Inc. Page 2-16 Reserve Study Report

26 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Category Description Cost Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 697 Misc Site Improvements Access Control, Gate Operator - Bear Creek Falls 16,519 Misc Site Improvements Access Control, Gate Operator - Bear Creek Way 16,519 Misc Site Improvements Access Control, Gate Operator - Cougar Crossing 16,519 Misc Site Improvements Access Control, Key Pad - Bear Creek Falls 1,882 Misc Site Improvements Access Control, Key Pad - Bear Creek Way 1,882 Misc Site Improvements Access Control, Key Pad - Cougar Crossing 1,882 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 4,119 Misc Site Improvements Pool Equipment, Pump/Motor/Filter Allowance 5,616 Misc Site Improvements Retaining Wall Allowance - Between Cabins 160,324 Furniture, Fixtures & Equipment Furniture, Outdoor - Indoor Pool 2,981 Furniture, Fixtures & Equipment Furniture, Outdoor - Pool Deck 9,606 Year 25 Total 252,650 Year 26: 2039 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 717 Painting & Waterproofing Paint/Stain Fence/Railing - Pool Deck 2,293 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 4,242 Misc Site Improvements Light Pole & Fixture - Putt Putt 5,036 Misc Site Improvements Waterfall, Pump/Motor/Filter Allowance 5,184 Year 26 Total 17,472 Year 27: 2040 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 739 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 4,370 Year 27 Total 5,109 Year 28: 2041 Painting & Waterproofing Paint Exterior Gate, Metal Picket - (3 Locations) 2,420 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 761 Painting & Waterproofing Paint/Stain Wood Interior - Pool Bldg 3,190 Mechanical & Electrical Water Heater, Electric - Pool Bldg 1,133 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 4,501 Misc Site Improvements Signage Replacement Allowance - Traffic 13,088 Furniture, Fixtures & Equipment Pool, Safety/Winter Cover - Outdoor Pool 2,200 Year 28 Total 27,293 Year 29: 2042 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 784 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 4,636 Misc Site Improvements Pool Equipment, Pump/Motor/Filter Allowance 6,321 Year 29 Total 11,741 Dreux Isaac & Associates, Inc. Page 2-17 Reserve Study Report

27 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Version 2 Phase 1 of 2 Phase: Common Areas Category Description Cost Year 30: 2043 Painting & Waterproofing Paint/Stain Fence/Railing - Between Cabins (Allowance) 807 Misc Site Improvements Fence/Railing, Wood Picket - Between Cabins (Allow) 4,775 Year 30 Total 5,582 Dreux Isaac & Associates, Inc. Page 2-18 Reserve Study Report

28 Summary of Recommendations & Findings 1. General Information Property Name: The Bear Creek Crossing Owner's Association, Inc. Property Location: Sevierville, Tennessee Property Number: 3943 Report Run Date: 08/02/2013 Property Type: Other Report No: 2921 Version 2 Total Units: 104 Budget Year Begins: 01/01/2014 Phase: Clubhouse (2 of 2) Budget Year Ends: 12/31/ Report Findings Total number of categories set up in reserve schedule: 5 Total number of components scheduled for reserve funding: 16 Total current cost of all scheduled reserve components: $82,325 Estimated Beginning Year Reserve Balance: $0 Total number of components scheduled for replacement in the 2014 Budget Year: 1 Total cost of components scheduled for replacement in the 2014 Budget Year: $5, Straight Line Reserve Funding Plan Analysis Current Annual Reserve Funding Contribution Amount: $0 Recommended Annual Reserve Funding Contribution Amount: $17,992 Increase (decrease) between Current & Recommended Contribution Amounts: $17,992 Increase (decrease) between Current & Recommended Contribution Amounts: Year Pooled Cash Flow Funding Plan Analysis Current Annual Reserve Funding Contribution Amount: $0 Recommended 2014 Reserve Funding Contribution Amount: $8,248 Recommended 2014 Planned Special Assessment Amount: $0 Total 2014 Reserve Funding and Planned Special Assessment Amount: $8,248 Increase (decrease) between Current & Recommended Contribution Amounts: $8,248 Increase (decrease) between Current & Recommended Contribution Amounts: -- Dreux Isaac & Associates, Inc. Page 3-1 Reserve Study Report

29 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Chart A 2014 Current Reserve Component Costs 8,533 (10.37%) Furniture, Fixtures & Equipment 12,070 (14.66%) Roofs 9,569 (11.62%) Painting & Waterproofing 5,555 (6.75%) Mechanical & Electrical 46,598 (56.60%) Misc Building Components Dreux Isaac & Associates, Inc. Page 3-2 Reserve Study Report

30 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Chart B 2014 Actual vs. 100% Funded Straight Line Reserve Balances 42,452 Thousands Total Estimated 2014 Beginning Year Balances 100% Funded Straight Line 2014 Beginning Year Balances Actual beginning year balances are estimates only based on the latest financial information. 100% funded straight line beginning year balances are based on straight line accounting formulas. Dreux Isaac & Associates, Inc. Page 3-3 Reserve Study Report

31 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Chart C 2014 Funding Contribution Comparisons 17,992 Thousands , Total 2013 Annual Contribution Proposed 2014 Straight Line Contribution Proposed 2014 Cash Flow Plan Contribution Proposed 2014 Straight Line Contribution = Unfunded Balance / Remaining Life Dreux Isaac & Associates, Inc. Page 3-4 Reserve Study Report

32 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Chart D 30 Year Pooled Cash Flow Plan (Refer to Section 4 or Report for Data) Thousands , , ,764 11, ,420 11, Beginning Year Balance Annual Expenditures Annual Contribution ,420 Dreux Isaac & Associates, Inc. Page 3-5 Reserve Study Report

33 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Straight Line Plan Summary Description Current Cost Useful Life Remg Life 12/31/2013 Balance Unfunded Balance 2014 Contribution Roofs 12, ,070 1,006 Painting & Waterproofing 9, ,569 6,582 Mechanical & Electrical 5, ,555 1,389 Misc Building Components 46, ,598 6,882 Furniture, Fixtures & Equipment 8, ,533 2,133 Grand Total 82, ,325 17,992 Dreux Isaac & Associates, Inc. Page 3-6 Reserve Study Report

34 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Description Quantity Units Straight Line Plan Detail Cost Per Unit Current Cost Useful Life Remg Life 12/31/13 Balance Unfunded Balance 2014 Contribution Roofs Roof, Architectural Shingle - Clubhouse Bldg 34 Squares , ,070 1,006 Roofs Total 1 Components 12, ,070 1,006 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Clubhouse Bldg 1 Total 5, , ,586 5,586 Paint/Stain Wood Interior - Clubhouse Bldg 1 Total 3, , , Painting & Waterproofing Total 2 Components 9, ,569 6,582 Mechanical & Electrical A/C Air Handler Unit, 4 Ton - Clubhouse Bldg 1 Each 2, , , A/C Condensing Unit, 4 Ton - Clubhouse Bldg 1 Each 2, , , Water Heater, Electric - Clubhouse Bldg 1 Each Mechanical & Electrical Total 3 Components 5, ,555 1,389 Misc Building Components Clubhouse Built-In Cabinets & Counters - Clubhouse Kitchen 1 Total 11, , , Decking, PT Wood - Clubhouse Deck 676 Sq Ft , ,707 3,854 Fence/Railing, Wood Picket - Clubhouse Deck 102 Ln Ft , , Finish, Ceramic Tile Floor - Clubhouse Restrooms 90 Sq Ft Finish, Wood Floor - Clubhouse 1,470 Sq Ft , ,376 1,448 Gutters & Downspouts - Clubhouse Bldg 171 Ln Ft Restroom Renovation Allowance - Clubhouse Bldg 1 Total 2, , , Wood Fascia/Soffit//Trim Allowance - Clubhouse Bldg 1 Sq Ft 3, , , Misc Building Components Total 8 Components 46, ,598 6,882 Furniture, Fixtures & Equipment Appliance Allowance - Clubhouse Kitchen 1 Each 3, , , Furnishings Allowance - Clubhouse Bldg 1 Total 5, , ,000 1,250 Furniture, Fixtures & Equipment Total 2 Components 8, ,533 2,133 Grand Total 16 Components 82, ,325 17,992 Dreux Isaac & Associates, Inc. Page 3-7 Reserve Study Report

35 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Cash Flow Plan Summary No Year Beginning Year Balance Annual Reserve Contribution Annual Increase Planned Special Assessments Expenses Inflation Rate Earned Interest Interest Rate Ending Year Balance , % 0 5, % % 2, ,682 8, % 0 7, % % 3, ,366 8, % % % 12, ,388 9, % 0 19, % % 1, ,900 9, % % % 11, ,518 9, % % % 21, ,712 9, % 0 9, % % 23, ,164 10, % % % 34, ,308 10, % % 1, % 46, ,101 10, % % 1, % 58, ,571 11, % % 2, % 71, ,748 11, % 0 54, % % 29, ,123 11, % 0 7, % % 33, ,636 11, % 0 1, % 1, % 45, ,178 11, % % 1, % 58, ,296 11, % 0 52, % % 18, ,116 11, % % % 30, ,422 11, % % 1, % 43, ,097 11, % 0 9, % 1, % 46, ,453 11, % % 1, % 59, ,609 11, % % 2, % 73, ,160 11, % 0 18, % 1, % 68, ,535 11, % % 2, % 82, ,354 11, % % 2, % 96, ,587 11, % 0 11, % 2, % 99, ,665 11, % % 3, % 114, ,418 11, % % 3, % 129, ,613 11, % 0 39, % 3, % 104, ,319 11, % % 3, % 119, ,211 11, % % 3, % 134,550 Grand Total 322, ,631 48,557 Dreux Isaac & Associates, Inc. Page 3-8 Reserve Study Report

36 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Cash Flow Plan Details Category Description Cost Year 1: 2014 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Clubhouse Bldg 5,586 Year 1 Total 5,586 Year 2: 2015 Misc Building Components Decking, PT Wood - Clubhouse Deck 7,861 Year 2 Total 7,861 Year 3: 2016 No Expenses Year 4: 2017 Painting & Waterproofing Paint/Stain Wood Interior - Clubhouse Bldg 4,310 Mechanical & Electrical A/C Air Handler Unit, 4 Ton - Clubhouse Bldg 2,691 Mechanical & Electrical A/C Condensing Unit, 4 Ton - Clubhouse Bldg 2,763 Mechanical & Electrical Water Heater, Electric - Clubhouse Bldg 557 Furniture, Fixtures & Equipment Appliance Allowance - Clubhouse Kitchen 3,823 Furniture, Fixtures & Equipment Furnishings Allowance - Clubhouse Bldg 5,411 Year 4 Total 19,555 Year 5: 2018 No Expenses Year 6: 2019 No Expenses Year 7: 2020 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Clubhouse Bldg 6,605 Misc Building Components Fence/Railing, Wood Picket - Clubhouse Deck 2,467 Year 7 Total 9,072 Year 8: 2021 No Expenses Year 9: 2022 No Expenses Year 10: 2023 No Expenses Year 11: 2024 No Expenses Year 12: 2025 Roofs Roof, Architectural Shingle - Clubhouse Bldg 16,545 Misc Building Components Decking, PT Wood - Clubhouse Deck 10,565 Misc Building Components Finish, Wood Floor - Clubhouse 23,819 Dreux Isaac & Associates, Inc. Page 3-9 Reserve Study Report

37 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Category Description Cost Misc Building Components Restroom Renovation Allowance - Clubhouse Bldg 3,964 Year 12 Total 54,893 Year 13: 2026 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Clubhouse Bldg 7,887 Year 13 Total 7,887 Year 14: 2027 Misc Building Components Gutters & Downspouts - Clubhouse Bldg 1,194 Year 14 Total 1,194 Year 15: 2028 No Expenses Year 16: 2029 Painting & Waterproofing Paint/Stain Wood Interior - Clubhouse Bldg 6,145 Mechanical & Electrical A/C Air Handler Unit, 4 Ton - Clubhouse Bldg 3,837 Mechanical & Electrical A/C Condensing Unit, 4 Ton - Clubhouse Bldg 3,939 Mechanical & Electrical Water Heater, Electric - Clubhouse Bldg 795 Misc Building Components Built-In Cabinets & Counters - Clubhouse Kitchen 17,511 Misc Building Components Finish, Ceramic Tile Floor - Clubhouse Restrooms 1,476 Misc Building Components Wood Fascia/Soffit//Trim Allowance - Clubhouse Bldg 5,260 Furniture, Fixtures & Equipment Appliance Allowance - Clubhouse Kitchen 5,451 Furniture, Fixtures & Equipment Furnishings Allowance - Clubhouse Bldg 7,714 Year 16 Total 52,128 Year 17: 2030 No Expenses Year 18: 2031 No Expenses Year 19: 2032 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Clubhouse Bldg 9,417 Year 19 Total 9,417 Year 20: 2033 No Expenses Year 21: 2034 No Expenses Year 22: 2035 Misc Building Components Decking, PT Wood - Clubhouse Deck 14,198 Misc Building Components Fence/Railing, Wood Picket - Clubhouse Deck 3,843 Year 22 Total 18,041 Dreux Isaac & Associates, Inc. Page 3-10 Reserve Study Report

38 The Bear Creek Crossing Owner's Association, Inc. Budget Year: 1/1/ /31/2014 Bear Haven Way Report Date: 8/2/2013 Sevierville, TN Report No: 2921 Ver. 2 Phase 2 of 2 Phase: Clubhouse Category Description Cost Year 23: 2036 No Expenses Year 24: 2037 No Expenses Year 25: 2038 Painting & Waterproofing Paint/Stain Exterior and Waterproof - Clubhouse Bldg 11,245 Year 25 Total 11,245 Year 26: 2039 No Expenses Year 27: 2040 No Expenses Year 28: 2041 Painting & Waterproofing Paint/Stain Wood Interior - Clubhouse Bldg 8,761 Mechanical & Electrical A/C Air Handler Unit, 4 Ton - Clubhouse Bldg 5,471 Mechanical & Electrical A/C Condensing Unit, 4 Ton - Clubhouse Bldg 5,616 Mechanical & Electrical Water Heater, Electric - Clubhouse Bldg 1,133 Furniture, Fixtures & Equipment Appliance Allowance - Clubhouse Kitchen 7,772 Furniture, Fixtures & Equipment Furnishings Allowance - Clubhouse Bldg 10,999 Year 28 Total 39,752 Year 29: 2042 No Expenses Year 30: 2043 No Expenses Dreux Isaac & Associates, Inc. Page 3-11 Reserve Study Report

39 Pool Bldg Indoor Pool Dreux Isaac & Associates, Inc. Page 4-1 Reserve Study Report

40 Pool Equipment Waterfall Equipment Dreux Isaac & Associates, Inc. Page 4-2 Reserve Study Report

41 Heating Equip - Indoor Pool Waterfall Dreux Isaac & Associates, Inc. Page 4-3 Reserve Study Report

42 Swimming Pool Pool Deck & Fence/Railing Dreux Isaac & Associates, Inc. Page 4-4 Reserve Study Report

43 Putt Putt Course Lighting Dreux Isaac & Associates, Inc. Page 4-5 Reserve Study Report

44 Retaining Wall - Pool Area Fence - Putt Putt Dreux Isaac & Associates, Inc. Page 4-6 Reserve Study Report

45 Covered Bridge Clubhouse Bldg Dreux Isaac & Associates, Inc. Page 4-7 Reserve Study Report

46 Clubhouse Deck Railing Clubhouse Dreux Isaac & Associates, Inc. Page 4-8 Reserve Study Report

47 Parking Lot - Clubhouse Access Gate - Bear Creek Falls Dreux Isaac & Associates, Inc. Page 4-9 Reserve Study Report

48 Entry Monument Guard Rails Dreux Isaac & Associates, Inc. Page 4-10 Reserve Study Report

49 Maintenance Bldg Access Gate - Beaver Creek Dreux Isaac & Associates, Inc. Page 4-11 Reserve Study Report

50 Beaver Creek Way Signage - Traffic Dreux Isaac & Associates, Inc. Page 4-12 Reserve Study Report

51 Bear Haven Way Wastewater - Collection System Dreux Isaac & Associates, Inc. Page 4-13 Reserve Study Report

52 Bear Haven Way Bear Creek Falls Way Dreux Isaac & Associates, Inc. Page 4-14 Reserve Study Report

53 Bear Haven Way Access Gate - Cougar Crossing Dreux Isaac & Associates, Inc. Page 4-15 Reserve Study Report

54 Cougar Crossing Way Cougar Crossing Way Dreux Isaac & Associates, Inc. Page 4-16 Reserve Study Report

55 Timber Wolf Way Timber Wolf Way Dreux Isaac & Associates, Inc. Page 4-17 Reserve Study Report

56 Panther Path Way Panther Path Way Dreux Isaac & Associates, Inc. Page 4-18 Reserve Study Report

57 Paving Repair Building Railings Dreux Isaac & Associates, Inc. Page 4-19 Reserve Study Report

58 Roadway/Parking Area Railing Repairs Dreux Isaac & Associates, Inc. Page 4-20 Reserve Study Report

59 Stucco Damage - Ret Walls Retaining Wall - Addition/Repair Dreux Isaac & Associates, Inc. Page 4-21 Reserve Study Report

60 Curbing/Drainage Repair Curbing/Drainage Repair Dreux Isaac & Associates, Inc. Page 4-22 Reserve Study Report

61 Stucco Damage - Ret Walls Retaining Wall - Bear Creek Falls Dreux Isaac & Associates, Inc. Page 4-23 Reserve Study Report