Capital Reserve Replacement Fund Analysis for Rolling Hills Condominium Association Lafayette, New Jersey February 2016

Transcription

1 Capital Reserve Replacement Fund Analysis for Rolling Hills Condominium Association Lafayette, New Jersey February 2016 prepared by: The Falcon Group Engineering, Architecture & Energy Consultants 682 US Highway 202/206 North Bridgewater, NJ (908) David Chesky P.R.A., R.S. #84

2 N-1 Table of Contents Narrative Report Table of Contents... N-1 Community Description... N-2 Overview... N-2 Association Considerations for a... N-2 Funding Goals... N-3 Methodology... N-4 Analysis... N-5 Limits of Inspection & Disclosures... N-5 Community Specific Conditions & Commentary... N-6 General Comments... N-6 Calculation Table Notes... N-7 Calculation Tables Executive Summary... C-1 Line Item Schedules... C-3 Expenditure Projection... C-5 Annual Funding Projection... C-13 Projection Graphs... C-15 Expenditure Calendar... C-17 Expenditure Distribution Charts... C-25 Appendix Calculation Table Explanatory Descriptions... A-1 Executive Summary... A-1 Line Item Schedules... A-2 Expenditure Projection... A-4 Annual Funding Projection... A-5 Projection Graphs... A-5 Expenditure Calendar... A-6 Please observe that this document consists of three sections which are independently page numbered; the Narrative Report (whose page numbers have an N prefix), the Calculation Tables (whose page numbers have a C prefix), and the Appendix (whose page numbers have an A prefix). Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

3 N-2 Community Description The Rolling Hills Condominium Association consists of 41 townhouse style buildings containing a total of 258 residences along with a single free-standing garage building, a clubhouse with various amenities including a swimming pool, concrete walkways throughout and asphalt paved roadways and parking areas. The community s domestic water supply is provided by its own private system consisting of two wells and a 100,000 gallon steel water tower. Access to the community is by way of McPeek Road onto several internal roadways with parking areas in the town of Lafayette, New Jersey. These internal roadways include Cheyenne Road, Seminole Road, Iroquois Court, Navajo Drive, Mohegan Circle, Cherokee Road, and Dakota Drive. Overview The function of a is to inform and advise the Community Association as to the likely capital expenditures for replacement of common elements over the time frame considered by the analysis and the annual contribution levels to the Capital Reserve Replacement Fund calculated as being sufficient to avoid having to levy special assessments or take out a loan in order to support the predicted capital expenditures. All Capital Reserve Replacement Analyses therefore assume that the Association is funding capital expenditures through the use of regular (e.g. annual, quarterly, or monthly), budgeted contributions to an account set aside for the sole purpose of funding the replacement of a designated set of common elements (often called the Capital Reserve Fund ). A Community Association can defer common element replacement projects. Such deferrals tend to result in the gradual decrease in property values as the infrastructure and appearance of the community facilities degrade over time. In addition, such deferrals often result in the final replacement costs increasing significantly due to more extensive deterioration and additional damage to other common elements resulting from the failure of the common element to be replaced. Association Considerations for a Each Association has a number of choices and options to consider during the process. Two of the most important decisions are the Methodology (q.v.) of the analysis and the Funding Goal (q.v.) of the Association, although there are a number of other considerations, including: Budget Thresholds the budget threshold is simply the lowest total project cost that the Association wants to fund using the Capital Reserve Fund. This is normally a function of the Association s proclivities, operating budget size, and administrative/fiscal history some communities will fund a $5,000 project through the maintenance or operating budget, while others prefer to schedule and fund a $500 project through the capital reserve budget. Many Associations never make a formal decision, leaving this to the professionals who prepare their Capital Reserve Replacement Analyses. Federal Housing Authority/Housing & Urban Development Limitations the federal government is a significant mortgage insurance provider. The FHA/HUD mortgage insurance programs currently require that community Associations fund replacement reserves for capital expenditures and deferred maintenance with at least 10% of the Association budget in order to meet eligibility requirements for FHA mortgage insurance failure to maintain this level of replacement reserve funding can trigger requests for a current (less than 12 month old) reserve study or a Fannie Mae form 1073a from lenders (see HUD Mortgagee Letter B). Maintenance Budget no project should be funded in two places. Any and all maintenance contracts for common elements should be reviewed, and any common element whose complete replacement is included in the maintenance contract should be removed from consideration in the, since the Association is already allocating funds to replace the element. Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

4 N-3 Operating Budget no project should be funded in two places. Any common elements that the Association is planning to replace in a series of incremental projects on an annual or irregular (as-needed) basis using the operating budget funds should be removed from consideration in the, since the Association is already allocating funds to replace the element. Preventive or Deferred Maintenance Budget no project should be funded in two places. The Association should compare its capital reserve budget to its preventive/deferred maintenance budget. Line items existing in both schedules should be removed from one or the other, since the Association is already allocating funds to replace the element. Statutory Requirements some jurisdictions may require that certain elements are included in a reserve fund analysis, and other municipalities agree to accept responsibility for some elements (most commonly roadways). Such factors cannot be determined by site inspection the Association should have documentation indicating any such factors, and should certainly inform the professionals performing the of these factors. Time Window the time window is simply the time span that the Association desires to consider its capital reserve expenditures over. Typically, Associations do not consider common elements with a condition assessed remaining life cycle of longer than 30 years as part of the. As a general rule, longer time windows are more conservative (resulting in higher annual contribution levels), with the longer time windows allows the Association a longer lead-time to accumulate funds for large projects. Interest and Inflation interest (sometimes called the rate of return) and inflation can have significant influence on the capital reserve budget. Increasing interest rates tends to reduce the necessary annual contributions, as the Association is essentially collecting additional funding from investment of its capital reserve fund. Increasing inflation rates tends to increase the necessary annual contributions, as the Association needs to collect additional funds to account for the decreasing purchasing power of money. The Falcon Group generally recommends that most Associations are better served by assuming interest and inflation rates of zero and updating their Capital Reserve Replacement Analysis every two to three years (thus correcting for the effects of interest and inflation every second or third year), rather than making assumptions about factors that vary significantly and unpredictably with market forces. That being said, if the Association desires, The Falcon Group can certainly assume whatever average annual interest and inflation rates the Association requests. Besides the above considerations, there are two decisions that the Association will need to make: Funding Goals The funding goal helps to determine the methodology used in the and also is the principal reflection of the Association s fiscal policy. Funding goals can be categorized by their fiscal aggressiveness (willingness to risk the need to levy a special assessment or take out a loan) more aggressive funding goals tend to result in lower annual levels of contribution to the capital reserve fund, with associated higher risks of shortfalls requiring special assessments or loans. There are four basic funding goals used by communities when determining Capital Reserve Fund requirements: Baseline Funding is the most aggressive funding goal commonly used by Associations. Baseline funding is essentially a special case of threshold funding, where the goal is to never have a negative capital reserve fund balance (in other words the threshold is zero). As this funding goal provides no margin for errors, unexpected or unforeseeable expenses, or market forces that are not in the Association s favor, The Falcon Group does not recommend this as a funding goal for the Association s capital reserve budget. Full Funding is the most conservative funding goal commonly used by Associations. Full funding is best understood as an attempt to maintain the capital reserve fund at or near 100% of the accumulated common element depreciation. As an example: assuming element X has a life cycle of 10 years, is presently 5 years old, Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

5 N-4 and has a replacement cost of $10,000, then the full funding goal would be to have $5,000 (5/10 x $10,000) in the capital reserve fund for this item. Full funding, as defined by GAP Report #24 ( A Complete Guide to Reserve Funding & Reserve Investment Strategies, 4th ed., produced by CAI), appears simpler than it actually is in practice, and tends to result in over-funding if the community is starting with a capital reserve fund balance less than the current depreciation of its common elements, or to result in under-funding if the community is starting with a capital reserve fund balance greater than the current depreciation of its common elements, unless applied carefully and with the understanding that annual contributions will change over the course of time as overages and shortages are corrected, resulting in an annual contribution recommendation that decreases or increases with the passage of time in all except the simplest cases. Statutory Funding is a funding goal (and/or methodology) that the community is legally obligated to meet or exceed. Such funding goals are typically the result of state or local statutes or the result of one or more provisions in the governing documents of the Community Association. The relative aggressiveness of such funding goals will vary depending upon the statute or provision involved. Threshold Funding is normally a moderate funding goal. The essential goal of threshold funding is to avoid having a capital reserve fund balance below some predetermined level (the threshold or threshold balance ), which can be determined as a percentage of the total cost to replace the considered common elements, by decree as some absolute value (e.g. the community decides that $100,000 is the threshold balance because that is a number it is comfortable with), or as some multiple of the annual contribution (e.g. the community wants to have a capital reserve fund balance of no less than 9 months of capital reserve fund contributions). Note that Baseline Funding is essentially a threshold funding goal where the threshold balance equals zero. Methodology There are essentially three methods used in Capital Reserve Analyses performed for most communities. The decision of which methodology to use is made by the Community Association, often under the advisement of its accountant, lawyer, and/or engineer. These three methodologies are: Cash Flow methodologies are based upon a projection of the future expenditures that the Community Association is likely to experience. The cash flow is then determined, based upon these expenditures, so that the resulting Capital Reserve Fund balances over the time window meet the funding goal. Component methodologies are based upon calculating the yearly contribution necessary to fund the replacement of each common element that is being considered. Each element is considered separately, producing a series of distinct line item entries of necessary contributions, which are summed to produce the total annual contribution to meet the funding goal. Statutory methodologies, like Statutory Funding Goals, are determined entirely by the statutes and/or governing document provisions that create the methodology. Statutory methodologies will most commonly resemble cash flow or component methodologies, but can theoretically be based upon any fiscal or legal conceptualization of the capital reserve funding. Methodology and funding goal are normally related closely to each other. As a rule, baseline and threshold funding goals are most easily calculated using a cash flow methodology, full funding goals are normally calculated using a component methodology, and statutory funding goals and methodologies are often found together (e.g. the local government legislates both what the funding goal is and how the community calculates its reserve fund contribution to insure that the funding goal is met). Please note that cash flow methodologies and component methodologies cannot be easily compared on a line item by line item basis, as cash flow methodologies do not generate a definite line item breakdown of how the annual funding is distributed between the various line items. Likewise, cash flow methodologies do not lend themselves to division of common element responsibilities between various entities. For instance, if an Association is internally divided between several sub-groups that do not share all common elements (for instance, an Association where owners of detached Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

6 N-5 dwelling units do not own a share of the common elements of multifamily buildings in the Association and vice versa, but all owners share responsibility for the recreational facilities and site improvements), then the proper application a cash flow methodology would require multiple analyses, with one analysis for each division of responsibility (in the aforesaid case, there would need to be an analysis for detached dwelling unit buildings, an analysis for multifamily buildings, and an analysis for the recreational facilities and site improvements), and each analysis requiring a distinct set of initial conditions (most notably initial capital reserve fund balances). Analysis A consists of a series of calculations, which essentially attempt to create a mathematical model of the Association s capital reserve fund expenditures/cash flows over a designated time window, and then determine the annual contributions to the capital reserve fund necessary to support the modeled expenditures/cash flows. Capital Reserve Replacement Analyses, as performed by The Falcon Group, performs several sets of separate, distinct, and independent calculations upon the same basic information. This permits the analysis to include a component methodology full funding calculation and several cash flow methodology threshold funding calculations (using different threshold balances) to permit the Association to more fully examine its possible capital reserve funding options. Please note that the cash flow and component methodologies cannot be directly compared on a line item by line item basis, due to the significant differences between the underlying mathematics of these methodologies. The calculations and results are shown in a series of tables and graphs that demonstrate the general viability and end results of the various scenarios. These tables and graphs allow the Association to verify that one or more of the scenarios considered meet Association requirements and do not engage in unacceptable levels of over- or under-funding, as well as allowing the Association to inspect the underlying assumptions and numerical bases of the various scenarios and compare the costs (annual contributions over the time window of the analysis) of achieving these scenarios. Please note that this is a guide, not a legally binding document. The Association should not allow itself to feel constrained from performing necessary or desirable projects simply because they are not included in this analysis, nor should it feel itself forced to perform any project simply because it has been scheduled in this analysis. If work needs to be done, then do it, and likewise, if the common element condition does not justify replacement or refurbishment, then refrain from performing the work until it needs to be done. The Falcon Group believes and recommends that every Association should have a reserve analysis performed no less than once every three years to allow the updating of estimated replacement costs to reflect inflation, technological advances, changes in the construction industry, and current market forces, as well to allow alterations in life cycle information to reflect any significant alterations in the Association s common element conditions or quantities, as well as any significant changes in industry standards or market forces. Limits of Inspection & Disclosures The Falcon Group will not accept responsibility for the detection or analysis of conditions not visible to the naked eye under normal lighting conditions, or conditions located in areas which cannot be accessed by inspectors. On-site inspections include walking the improved areas of the site and visual inspection of representative samples of the observable common elements and accessible areas of the clubhouse interior. Please note that The Falcon Group cannot accept responsibility for detection of non-representative conditions as part of the on-site inspections. On-site inspections are limited, most notably by the following: Unless otherwise stated in the Common Element Descriptions & General Comments, no non-visual examinations were conducted. Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

7 N-6 No destructive or invasive testing of any kind was undertaken. At no time was any private residence entered, nor were the interior conditions of any private residence examined. No security measures (locks, alarms, etc.) were circumvented, and areas within security perimeters were examined from outside said perimeter. No area of the site inaccessible to pedestrian traffic was examined and no areas requiring special tools to access or necessitating specific equipment or training to work in safely were entered. Conditions stated in the report are representative of the general observed conditions of each item. Isolated areas of above or below average conditions may exist for any item. This analysis is not meant to be, nor should it be used as, a detailed condition evaluation of the common elements or a construction defect investigation. No attempt has been made to predict either the rate of inflation or the rate of return on investments and savings that can be achieved by the Association. The Falcon Group assumes that the Association can achieve a consistent rate of return on investments and savings that equals or exceeds inflation, and that any investment income above and beyond the rate of inflation will be retained within the Capital Reserve Fund, but, for budgeting purposes, assumes that the annual rate of cost inflation and the annual rate of investment return seen by the Association is zero (0%). The Association should consult with its accountant to verify the viability of these assumptions. If the Association desires inclusion of non-zero inflation and investment return, please contact The Falcon Group with the desired annual rates of inflation and investment return so that a revised analysis can be prepared to reflect the Association s desired assumptions in this regard. Information provided by official representatives of the Association is assumed to be reliable and accurate. This analysis is a reflection of the information supplied to The Falcon Group, and has been assembled for the Association s use; this analysis is not meant to be an audit, quality/forensic analysis, or background check of historical information. Similarly, onsite inspections performed as part of this analysis should not be considered a project audit or quality inspection of any reserve project. Community Specific Conditions & Commentary General Comments Please note that, based upon professional judgment and information provided by the Association or the Association s management professionals, the following have not been considered as part of this Capital Reserve Replacement Analysis: Annual maintenance tasks (e.g. filling pot-holes & sealing pavement cracks). Building-mounted light fixtures (e.g. entrance lights & security lights). Doors and windows, both exterior and interior. Drainage repairs or enhancements. Fire suppression systems (e.g. fire sprinkler heads and valves). Landscaping and irrigation systems, including maintenance, replacement, or enhancement. Painting, sealing, or staining of exterior or interior wooden components. Painting of exterior or interior metal components. Preventive maintenance tasks (e.g. power-washing siding, annual inspections). Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

8 N-7 Protected or concealed structural components, such as foundations, wall framing, floor/ceiling framing, roof framing, and similar components. Radon mitigation systems. Routine (e.g. sweeping stoops, snow clearing) and emergency (e.g. repairing broken stair treads) maintenance tasks. Underground utilities. Siding and adhered masonry veneer. Complete replacement of water storage tower. Replacement of well head and casing. Decks/Patios Homeowner responsibility. Should the above list be incorrect, please notify The Falcon Group so that the analysis can be appropriately amended. These items are excluded from this analysis because they are typically considered to be either maintenance or operating expenses, and are therefore expected to be accounted for in those budgets, or have predicted remaining life cycles that exceed the analysis time window, and are therefore not typically considered a capital expenditure (at this point in time), or are not common elements, and are therefore not the Association s responsibility. The Association should review all maintenance and operating budgets to confirm that sufficient funding is being allocated toward all maintenance and operating budget items, and the Association s legal professionals should verify the responsibilities of both Association and individual unit owners to confirm that the common element list used in the analysis is accurate. Calculation Table Notes The following are notes that provide specific comments for use with the Association s current Capital Reserve Replacement Analysis. These notes are numbered and correspond to the numbers given in the analysis Calculation Tables, which immediately follow these notes. 1. Many of the items vary slightly in age and/or condition; however, the items have been given an average remaining useful life based upon observed general conditions. Single or isolated replacements may be needed and should be funded through reserves as the need arises (such as-needed replacement may be especially prevalent for furniture, clubhouse interior items, entry stoops, walkways, etc.). For purposes of establishing a funding plan, single (total) replacement projects are assumed in most cases (with exceptions for projects of exceptional scope and/or expense, where phasing is often used to reflect financial or other practical limitations). Performing capital reserve replacement projects as unified scopes of work will likely decrease costs from economies of scale and mobilization costs. Similarly, unit costs are typical average costs for the item understanding that specific costs can be expected to vary both above and below the unit cost used in the analysis. 2. The current analysis uses field-measured Line Item Quantities. Field measurements performed as part of this analysis are not meant or intended to be used for contractor bidding, design work/calculations, or any function other than budget calculation. 3. It is our understanding, based upon information provided by management that the decks are not common elements and each individual unit owner is ultimately responsible for the maintenance and replacement responsibility of their deck. The Association should verify this information. Please note that decks and balconies are areas that are subject to failure from overloading due to furniture, equipment, and/or resident/guest usage in excess of design intent. This issue is often exacerbated by deterioration of wood structural members, which occurs in wood exposed to the elements at a rate dependent Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

9 N-8 upon the species and quality of the lumber used in the construction, local weather conditions and climate, usage and loading patterns, and maintenance practices. Note that we have not performed any inspections of the decks in the community as part of this scope of work and detailed inspections would be required to verify the structural integrity/stability of each. 4. We have included a line item for gutters and leaders as full scale replacement will likely be required or desired during the roof replacement project as the gutters will become damaged over time from ice and snow accumulations and physical abuse from ladders. 5. Based upon review of records and our inspections, the association has been replacing individual unit or building roof sections rather than entire buildings. This is typically not recommended due to increased costs overall from contractors as a result of the lack of economies of scale and multiple mobilization costs as well as issues and difficulties with incorporating new and old sections of roofing which normally produces vulnerabilities in the roof systems and ultimately leads to leaks and failures. In addition, this mode of replacement results in significant disconnect and confusion in tracking which roofs have been replaced and which have not over significant time periods particularly when management or boards change. We highly recommend that the Association address the remaining roof areas on a building by building basis so entire building roof systems are of the same age. The roof areas that have not yet been replaced have exceeded their useful life cycle and should be replaced proactively prior to failure to avoid damage to the building structure, particularly the remaining low slope areas. It is also highly recommended that the Association procure professionally developed bid documents and details so that the work can be competitively bid and a quality work product is achieved. We have split the remaining roof areas into four equal phases to be completed over the next four (4) years. The cost used in this analysis assumes complete replacement of the existing roof systems with allowances for flashing, underlayment, and ventilation enhancements. Please note that detailed roof/attic inspections were not performed as part of this scope of work and the remaining useful life given for the roofing is based solely on the age of the roof system, information provided by the Association, and general visual observations. 6. The elevated concrete stoops will eventually require replacement. The existing stoops vary in size so for funding purposes an average replacement cost is used (q.v., note 1). 7. Vinyl siding can be expected to be typically structurally sound for years. Based upon the age of the siding, funding has not been included in this analysis at this time; however, each subsequent update should review conditions and incorporate funding as needed. Please note that unless otherwise noted, no testing or removal of materials has been performed as part of the preparation of any reserve analysis performed by The Falcon Group for this community and conditions may exist behind concealed components of the exterior wall systems that may result in reduced life cycles as a result of inadequate construction such as underlayment and flashing deficiencies which may exist. The remaining life cycle used has been based solely on the age of the community, visual observations of a representative sampling of the community and information provided by the Association. The Association should routinely monitor the maintenance activities and conditions of the vinyl siding and may find it prudent to have detailed inspections of the system performed to verify proper installation and the condition of concealed materials/details. 8. The clubhouse structure requires significant upgrade and remodeling particularly on the interior areas where substantial water infiltration evidence was observed. We have scheduled this work to occur once the roadway and roof replacement projects have been completed. 9. Please note that playgrounds are areas that are subject to deterioration from weathering and use. The rate of deterioration of impact attenuation surfacing materials and playground equipment will vary depending upon local climate/exposure and maintenance practices. Loose fill impact attenuation surfacing materials require regular maintenance (actual frequency depends upon usage and material characteristics). Detailed inspection of the playground impact attenuation surfacing materials, the playground equipment, or playground accessibility for conformance to U.S. Consumer Product Safety Commission guidelines (publication 325) and Uniform Construction Code requirements is not part of the scope of this analysis. Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

10 N No inspection of the existing swimming pool was made, as the facility was closed for the season during the inspection period of this analysis. It has been reported that there are no major cracks in or known water leakage from the swimming pool. For purposes of this analysis, it is assumed that these items have aged typically and consistently. 11. The pool filtration and circulation equipment line item cost estimates includes pumps, chlorinators, and miscellaneous pieces, but assumes that the majority of the existing piping, wiring, and building elements surrounding the pool equipment will remain viable and be reused as is significant alterations to building elements or piping, wiring, etc. would be expected to increase costs significantly. 12. Pool shell refurbishment could involve repairs and re-plastering, installation of a liner, or simple re-plastering (among the more common options) and actual cost is thus subject to wide variation, depending upon the precise methods and materials selected at time of refurbishment; this line item includes allowance for coping repairs/replacement. 13. The existing tennis court and fence has been abandoned and based upon our understanding, the association has no plans to reconstruct or reinstate same. Therefore, no funding for any components related to this amenity has been included in this analysis. 14. Site lighting fixture cost estimates anticipate replacement with fixtures of similar types, styles, and functionality. No testing or analysis of underground or otherwise concealed wiring has been performed; replacement cost estimates assume that the existing wiring and/or conduits are of acceptable capacity and condition and will be retained during fixture replacement. 15. The existing wood tie walls will require replacement in the very near future due to age and observed conditions. Wood tie retaining walls often suffer from prolonged contact with soil and dampness, resulting in rot on the inner surfaces (the surfaces facing the soil, and thus not apparent without destructive examination). The Falcon Group advocates replacing wood retaining walls in the future with segmental wall systems (specially designed concrete blocks, often with interlocking pins, designed for retaining wall applications), given the site disturbance and expense intrinsic in the replacement of retaining walls. Correctly designed and installed segmental retaining walls should not require replacement and require only minimal maintenance. Periodic, detailed inspection of the walls is recommended. 16. Many of the existing roadways and parking lots contain substantial areas of cracking and sub-grade failures and will require enhanced repairs during the pavement project. The costs shown in the funding schedule reflect these conditions as well as drainage inlet wall repairs that are needed at some locations. The cost for this item assumes milling for drainage and planar continuity purposes, as well as to maintain curb reveal. The cost also includes full depth repairs (as required), installation of a new 2 thick wearing course, and line striping to match the existing layout of the community. The Falcon Group has observed that a quality seal coat material (applied using a two coating application procedure) applied over the bituminous pavement surface approximately five (5) years after installation of the asphalt (and every four to six years thereafter until a new pavement surface is installed) to seal superficial cracks and prevent water infiltration is generally useful. In addition to its aesthetic appeal, sealcoating prevents water infiltration from occurring in small voids and small surface cracks. Large cracks in pavement should be cleaned of all debris and filled with a thicker sealant annually prior to the onset of winter as a matter of routine or preventive maintenance. 17. This item has been budgeted for future expenditures based upon the assumption that five (5%) of the gross element quantity will be replaced every three (3) years for the foreseeable future. Based upon actual replacement projects in the future, the Association may want to increase or decrease this number to reflect actual rates of failure propagation. Cost reflects a general average cost as there are some steps and railings that will increase the unit costs at some locations. Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

11 N Please note that, as a matter of best operating practice, all common area pedestrian walkways should be subjected to annual inspection for safety concerns, including trip hazards. This evaluation does not purport to be an inclusive or definitive walkway safety evaluation. 19. Please note that the life cycle and cost information has been based upon information and documentation provided by the Associations water system maintenance contractor. It is also our understanding that the Association is currently in the process of soliciting bids for the installation of an emergency generator set for the water system, of which currently does not exist. Since this component is currently not installed no funding has been included; however, once it is installed, the Association should have the reserve analysis updated to reflect and include funding for its future replacement need. 20. Please note that due to the reported initial fund balance and expenditures scheduled, modifications to the threshold funding scenarios were required in order to avoid over funding towards the end of the time window of the analysis. Please refer to sheets C-24 for more information. Y:\Clients\Falcon2010\10-375\2015 Reserve\R Reserve.Docx

12 Executive Summary C-1 Client Rolling Hills Condominium Association File Number Version February-16 Scope of Work Update without Site Visit Update with Site Visit Full Study with Measurement Other/Additional Work Scopes Included Revisions Community Information Description Check By Date Number of Units Date of Original Construction Location 258 Circa 1983 Lafayette, New Jersey Initial Conditions Initial Fiscal Year 2016 Initial Fund Balance Prior Year Annual Contribution Current Fund Balance Date of Current Fund Balance Last Day of Fiscal Year Initial Percent Funded Initial Estimated Total Replacement Cost PV Expenditure in Time Window Funding Schedule Full Funding %5 Threshold Funding %10 Threshold Funding $431,000 $50,000 $0 January 0, 1900 Analysis Calculation Constants December 31 Time Window % Annual Rate of Cost Inflation 0.00% $3,371,892 Annual Rate of Investment Return 0.00% Note $5,526,740 Summary of Funding Schedules Over Time Window see Funding Projection for annual contributions in other than initial fiscal year see Funding Projection for annual contributions in other than initial fiscal year see Funding Projection for annual contributions in other than initial fiscal year Initial Fiscal Year Annual Contribution $772,442 Maximum Fund Balance $1,753,028 $508,108 $1,107,262 $592,405 $1,298,133 Minimum Fund Balance $541,515 $168,595 $337,189

13 C-2 Executive Summary

14 Reserve Schedule C-3 Reserve Schedule Life Cycle Estimated Cost Line Item footnotes in parentheses at the end of each line item Typically Expected Condition Assessed Remaining (note 1) Quantity (note 2) Unit of Measure Unit Cost Line Item Occurrence Cost BUILDING-Deck-reconstruction, wood-[3] ,645 square foot $ $ - BUILDING-Roof-gutters, aluminum-[4] ,834 linear foot ,004 BUILDING-Roof-leaders, aluminum-[4] ,154 linear foot ,770 BUILDING-Roof-low slope membrane, 2009-[5] square ,200 BUILDING-Roof-low slope membrane, 2013-[5] square ,400 BUILDING-Roof-low slope membrane, remaining-[5] square ,800 BUILDING-Roof-low slope membrane-2008-[5] square ,200 BUILDING-Roof-steep slope shingle, 2009-[5] square ,250 BUILDING-Roof-steep slope shingle, 2010-[5] square ,350 BUILDING-Roof-steep slope shingle, 2011-[5] square ,450 BUILDING-Roof-steep slope shingle, 2012-[5] square ,350 BUILDING-Roof-steep slope shingle, 2013-[5] square ,850 BUILDING-Roof-steep slope shingle, 2014-[5] square ,100 BUILDING-Roof-steep slope shingle, remaining phase 1-[5] square ,900 BUILDING-Roof-steep slope shingle, remaining phase 2-[5] square ,900 BUILDING-Roof-steep slope shingle, remaining phase 3-[5] square ,900 BUILDING-Roof-steep slope shingle, remaining phase 4-[5] square ,900 BUILDING-Walkway-entry stoop, double, precast-[6] each 3, ,500 BUILDING-Walkway-entry stoop, single, precast-[6] each 2, ,200 BUILDING-Façade-siding-[7] square RECREATION-Clubhouse-electrical, lighting upgrade-[8] lump sum 5, ,000 RECREATION-Clubhouse-hvac, ptac-[8] each 1, ,200 RECREATION-Clubhouse-hvac, wall heaters-[8] each ,400 RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] lump sum 10, ,000 RECREATION-Clubhouse-interior finish, carpet-[8] square yard ,896 RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] lump sum 20, ,000 RECREATION-Clubhouse-interior finish, restroom refurbish-[8] each 15, ,000 RECREATION-Clubhouse-plumbing, hot water heater-[8] each 1, ,100 RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] square ,050 RECREATION-Clubhouse-roof, skylights-[8] each 1, ,000 RECREATION-Clubhouse-sauna refurbishment-[8] lump sum 15, ,000 RECREATION-Clubhouse-window/door fund-[8] lump sum 20, ,000 RECREATION-Playground-equipment/edging/surfacing-[9] lump sum 35, ,000 RECREATION-Swimming Pool-cover lump sum 4, ,500 RECREATION-Swimming Pool-deck, concrete ,655 square foot ,515 RECREATION-Swimming Pool-equipment fence, wood linear foot ,080 RECREATION-Swimming Pool-fence, 4' linear foot ,328 RECREATION-Swimming Pool-filters-[10,11] each 2, ,000 RECREATION-Swimming Pool-pumps-[10,11] each 1, ,000 RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] lump sum 15, ,500 RECREATION-Tennis Court-reconstruct incl. fence-[13] linear foot SITE WORK-Electrical-street lights-[14] each 2, ,600 SITE WORK-Furniture-pet waste receptacles each ,400 SITE WORK-Furniture-site benches each ,000 SITE WORK-Furniture-site trash receptacles each SITE WORK-Postal-mailbox pads square foot ,488 SITE WORK-Refuse-dumpster fence linear foot ,400 SITE WORK-Refuse-dumpster pads ,882 square foot ,348 SITE WORK-Refuse-recycling shed refurbish lump sum 8, ,000 SITE WORK-Refuse-trash compactor each 30, ,000

15 C-4 Reserve Schedule Reserve Schedule Life Cycle Estimated Cost Line Item footnotes in parentheses at the end of each line item Typically Expected Condition Assessed Remaining (note 1) Quantity (note 2) Unit of Measure Unit Cost Line Item Occurrence Cost SITE WORK-Refuse-trash compactor each 30, ,000 SITE WORK-Retaining Wall-stone, 3'-[15] linear foot SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] linear foot ,185 SITE WORK-Retaining Wall-wood tie, 2'-[15] linear foot ,820 SITE WORK-Retaining Wall-wood tie, 3'-[15] linear foot ,750 SITE WORK-Retaining Wall-wood tie, 4'-[15] linear foot ,130 SITE WORK-Roadway/Parking-asphalt reconstruction-[16] ,015 square yard ,420 SITE WORK-Roadway/Parking-asphalt reconstruction-[16] ,544 square yard ,232 SITE WORK-Roadway/Parking-asphalt seal coat-[16] ,015 square yard ,125 SITE WORK-Roadway/Parking-asphalt seal coat-[16] ,544 square yard ,998 SITE WORK-Security-closed circuit tv system lump sum 4, ,500 SITE WORK-Signage-entry sign placard each 2, ,000 SITE WORK-Signage-pier repair each 1, ,000 SITE WORK-Walkway-asphalt path square yard ,650 SITE WORK-Walkway-concrete-[17,18] 3 1 2,557 square foot ,292 SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] lump sum 25, ,000 SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] lump sum 3, ,000 SITE WORK-Water Supply-pump house #1, pump/controls-[19] lump sum 20, ,000 SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] lump sum 3, ,000 SITE WORK-Water Supply-pump house #2, pump house structure-[19] lump sum 3, ,500 SITE WORK-Water Supply-pump house #2, pump/controls-[19] lump sum 12, ,500

16 Reserve Schedule C-5 Full Funding Schedule Line Item footnotes in parentheses at the end of each line item BUILDING-Deck-reconstruction, wood-[3] BUILDING-Roof-gutters, aluminum-[4] BUILDING-Roof-leaders, aluminum-[4] BUILDING-Roof-low slope membrane, 2009-[5] BUILDING-Roof-low slope membrane, 2013-[5] BUILDING-Roof-low slope membrane, remaining-[5] BUILDING-Roof-low slope membrane-2008-[5] BUILDING-Roof-steep slope shingle, 2009-[5] BUILDING-Roof-steep slope shingle, 2010-[5] BUILDING-Roof-steep slope shingle, 2011-[5] BUILDING-Roof-steep slope shingle, 2012-[5] BUILDING-Roof-steep slope shingle, 2013-[5] BUILDING-Roof-steep slope shingle, 2014-[5] BUILDING-Roof-steep slope shingle, remaining phase 1-[5] BUILDING-Roof-steep slope shingle, remaining phase 2-[5] BUILDING-Roof-steep slope shingle, remaining phase 3-[5] BUILDING-Roof-steep slope shingle, remaining phase 4-[5] BUILDING-Walkway-entry stoop, double, precast-[6] BUILDING-Walkway-entry stoop, single, precast-[6] BUILDING-Façade-siding-[7] RECREATION-Clubhouse-electrical, lighting upgrade-[8] RECREATION-Clubhouse-hvac, ptac-[8] RECREATION-Clubhouse-hvac, wall heaters-[8] RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] RECREATION-Clubhouse-interior finish, carpet-[8] RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] RECREATION-Clubhouse-interior finish, restroom refurbish-[8] RECREATION-Clubhouse-plumbing, hot water heater-[8] RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] RECREATION-Clubhouse-roof, skylights-[8] RECREATION-Clubhouse-sauna refurbishment-[8] RECREATION-Clubhouse-window/door fund-[8] RECREATION-Playground-equipment/edging/surfacing-[9] RECREATION-Swimming Pool-cover RECREATION-Swimming Pool-deck, concrete RECREATION-Swimming Pool-equipment fence, wood RECREATION-Swimming Pool-fence, 4' RECREATION-Swimming Pool-filters-[10,11] RECREATION-Swimming Pool-pumps-[10,11] RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] RECREATION-Tennis Court-reconstruct incl. fence-[13] SITE WORK-Electrical-street lights-[14] SITE WORK-Furniture-pet waste receptacles SITE WORK-Furniture-site benches SITE WORK-Furniture-site trash receptacles SITE WORK-Postal-mailbox pads SITE WORK-Refuse-dumpster fence SITE WORK-Refuse-dumpster pads SITE WORK-Refuse-recycling shed refurbish SITE WORK-Refuse-trash compactor Total Line Item Cost Current Theoretical Full Funding Line Item Balance Initial Fund Allocation (pooling) Current Overage (+) or Shortage (-) Effective Age of Component Current Theoretical Full Funding Line Item Annual Contribution $ 47,004 41,364 - (41,364) 22 1,880 40,770 35,878 - (35,878) 22 1,631 19,200 6,720 - (6,720) , (240) ,800 15,960 11,724 (4,236) ,200 6,720 - (6,720) ,250 4,620 - (4,620) ,350 7,070 - (7,070) 5 1,414 9,450 1,512 - (1,512) ,350 5,082 - (5,082) 3 1,694 38,850 3,108 - (3,108) 2 1,554 23, (924) , , ,052 (40,492) 24 6, , ,188 - (146,188) 23 6, , ,832 - (139,832) 22 6, , ,476 - (133,476) 21 6, , ,413 - (101,413) 19 5, ,200 68,970 - (68,970) 19 3,630 5,000 4,167 - (4,167) ,200 3,500 - (3,500) ,400 2,000 - (2,000) ,000 5,000 - (5,000) 5 1,000 16,896 11,264 - (11,264) 10 1,126 20,000 16,667 - (16,667) ,000 25,000 - (25,000) 25 1,000 1,100 1, (273) ,050 7,938 - (7,938) ,000 8,100 - (8,100) ,000 12,500 - (12,500) ,000 17,143 - (17,143) ,000 28,000 - (28,000) 24 1,167 4,500 3,375 - (3,375) ,515 48,412 - (48,412) 24 2,017 1, (173) ,328 16,750 12,304 (4,446) , (500) ,000 1,250 - (1,250) ,500 14,208 10,437 (3,772) 11 1, ,600 65,613 - (65,613) 19 3,453 1, (700) ,000 5,600 - (5,600) (383) ,488 3,476 - (3,476) ,400 9,120 - (9,120) ,348 43,287 - (43,287) 19 2,278 8,000 6,133 - (6,133) ,000 27,600 - (27,600) 23 1,200

17 C-6 Reserve Schedule Full Funding Schedule Line Item footnotes in parentheses at the end of each line item Total Line Item Cost Current Theoretical Full Funding Line Item Balance Initial Fund Allocation (pooling) Current Overage (+) or Shortage (-) Effective Age of Component Current Theoretical Full Funding Line Item Annual Contribution SITE WORK-Refuse-trash compactor SITE WORK-Retaining Wall-stone, 3'-[15] SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] SITE WORK-Retaining Wall-wood tie, 2'-[15] SITE WORK-Retaining Wall-wood tie, 3'-[15] SITE WORK-Retaining Wall-wood tie, 4'-[15] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Security-closed circuit tv system SITE WORK-Signage-entry sign placard SITE WORK-Signage-pier repair SITE WORK-Walkway-asphalt path SITE WORK-Walkway-concrete-[17,18] SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #1, pump/controls-[19] SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #2, pump house structure-[19] SITE WORK-Water Supply-pump house #2, pump/controls-[19] 30,000 16,800 - (16,800) 14 1,200 21,185 19,067 - (19,067) ,820 7,038 - (7,038) ,750 10,575 - (10,575) ,130 25,317 - (25,317) , , ,038 (97,221) 14 26, , ,934 - (352,934) 13 27,149 23,125 4,625 23,998 4,800 4,500 2,400 - (2,400) ,000 1,000 - (1,000) ,000 1,500 - (1,500) ,650 18,585 - (18,585) 18 1, ,754 8,097 - (8,097) 1 8,097 25,000 20,000 14,691 (5,309) 4 5,000 3,000 1,500 - (1,500) ,000 7,000 - (7,000) 7 1,000 3, (600) ,500 2,538 - (2,538) ,500 1,250 - (1,250) 2 625

18 Expenditure Schedule C-7 Line Item Fiscal Year Nominal Expenditure (in Future Dollars) in Fiscal Present Year Value of Line Item Expenditures In Time Window BUILDING-Deck-reconstruction, wood-[3] - BUILDING-Roof-gutters, aluminum-[4] $ 94,008 47,004 BUILDING-Roof-leaders, aluminum-[4] $ 81,540 40,770 BUILDING-Roof-low slope membrane, 2009-[5] $ 19,200 - BUILDING-Roof-low slope membrane, 2013-[5] $ 2,400 - BUILDING-Roof-low slope membrane, remaining-[5] $ 33,600 16,800 BUILDING-Roof-low slope membrane-2008-[5] $ 19,200 - BUILDING-Roof-steep slope shingle, 2009-[5] $ 19,250 - BUILDING-Roof-steep slope shingle, 2010-[5] $ 35,350 - BUILDING-Roof-steep slope shingle, 2011-[5] $ 9,450 - BUILDING-Roof-steep slope shingle, 2012-[5] $ 42,350 - BUILDING-Roof-steep slope shingle, 2013-[5] $ 38,850 - BUILDING-Roof-steep slope shingle, 2014-[5] $ 23,100 - BUILDING-Roof-steep slope shingle, remaining phase 1-[5] $ 317, ,900 BUILDING-Roof-steep slope shingle, remaining phase 2-[5] $ 317, ,900 - BUILDING-Roof-steep slope shingle, remaining phase 3-[5] $ 317, ,900 BUILDING-Roof-steep slope shingle, remaining phase 4-[5] $ 317,800 - BUILDING-Walkway-entry stoop, double, precast-[6] $ 213,500 - BUILDING-Walkway-entry stoop, single, precast-[6] $ 145,200 - BUILDING-Façade-siding-[7] - RECREATION-Clubhouse-electrical, lighting upgrade-[8] $ 5,000 - RECREATION-Clubhouse-hvac, ptac-[8] $ 4,200 - RECREATION-Clubhouse-hvac, wall heaters-[8] $ 2,400 - RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] $ 30,000 - RECREATION-Clubhouse-interior finish, carpet-[8] $ 33,792 - RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] $ 20,000 - RECREATION-Clubhouse-interior finish, restroom refurbish-[8] $ 30,000 - RECREATION-Clubhouse-plumbing, hot water heater-[8] $ 3,300 1,100 RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] $ 22,050 - RECREATION-Clubhouse-roof, skylights-[8] $ 9,000 - RECREATION-Clubhouse-sauna refurbishment-[8] $ 15,000 - RECREATION-Clubhouse-window/door fund-[8] $ 20,000 - RECREATION-Playground-equipment/edging/surfacing-[9] $ 35,000 - RECREATION-Swimming Pool-cover $ 18,000-4,500 - RECREATION-Swimming Pool-deck, concrete $ 60,515 - RECREATION-Swimming Pool-equipment fence, wood $ 1,080 - RECREATION-Swimming Pool-fence, 4' $ 34,656 17,328 RECREATION-Swimming Pool-filters-[10,11] $ 5,000 - RECREATION-Swimming Pool-pumps-[10,11] $ 9,000 - RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] $ 46,500 15,500 RECREATION-Tennis Court-reconstruct incl. fence-[13] - SITE WORK-Electrical-street lights-[14] $ 103,600 - SITE WORK-Furniture-pet waste receptacles $ 1,400 - SITE WORK-Furniture-site benches $ 6,000-6,000 - SITE WORK-Furniture-site trash receptacles $ SITE WORK-Postal-mailbox pads $ 5,488 - SITE WORK-Refuse-dumpster fence $ 14,400 - SITE WORK-Refuse-dumpster pads $ 68,348 - SITE WORK-Refuse-recycling shed refurbish $ 8,000 - SITE WORK-Refuse-trash compactor $ 60,000-30,000 - $ 627,048 $ 651,574 $ 315,559

19 C-8 Expenditure Schedule Line Item Fiscal Year Nominal Expenditure (in Future Dollars) in Fiscal Present Year Value of Line Item Expenditures In Time Window SITE WORK-Refuse-trash compactor $ 30,000 - SITE WORK-Retaining Wall-stone, 3'-[15] - SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] $ 21,185 21,185 SITE WORK-Retaining Wall-wood tie, 2'-[15] $ 7,820 7,820 SITE WORK-Retaining Wall-wood tie, 3'-[15] $ 11,750 11,750 SITE WORK-Retaining Wall-wood tie, 4'-[15] $ 28,130 28,130 SITE WORK-Roadway/Parking-asphalt reconstruction-[16] $ 1,177, ,420 SITE WORK-Roadway/Parking-asphalt reconstruction-[16] $ 814, ,232 - SITE WORK-Roadway/Parking-asphalt seal coat-[16] $ 92,499 - SITE WORK-Roadway/Parking-asphalt seal coat-[16] $ 95,990 - SITE WORK-Security-closed circuit tv system $ 9,000 - SITE WORK-Signage-entry sign placard $ 2,000 - SITE WORK-Signage-pier repair $ 3,000 - SITE WORK-Walkway-asphalt path $ 41,300-20,650 - SITE WORK-Walkway-concrete-[17,18] $ 242,915-24,292 - SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] $ 175,000 25,000 SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] $ 9,000 - SITE WORK-Water Supply-pump house #1, pump/controls-[19] $ 20,000 - SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] $ 9,000 - SITE WORK-Water Supply-pump house #2, pump house structure-[19] $ 3,500 - SITE WORK-Water Supply-pump house #2, pump/controls-[19] $ 12, $ 627,048 $ 651,574 $ 315,559

20 Expenditure Schedule C Line Item $ 158,900 $ 159,788 $ 143,640 $ 39,998 BUILDING-Deck-reconstruction, wood-[3] BUILDING-Roof-gutters, aluminum-[4] BUILDING-Roof-leaders, aluminum-[4] BUILDING-Roof-low slope membrane, 2009-[5] BUILDING-Roof-low slope membrane, 2013-[5] BUILDING-Roof-low slope membrane, remaining-[5] BUILDING-Roof-low slope membrane-2008-[5] BUILDING-Roof-steep slope shingle, 2009-[5] BUILDING-Roof-steep slope shingle, 2010-[5] BUILDING-Roof-steep slope shingle, 2011-[5] BUILDING-Roof-steep slope shingle, 2012-[5] BUILDING-Roof-steep slope shingle, 2013-[5] BUILDING-Roof-steep slope shingle, 2014-[5] BUILDING-Roof-steep slope shingle, remaining phase 1-[5] BUILDING-Roof-steep slope shingle, remaining phase 2-[5] BUILDING-Roof-steep slope shingle, remaining phase 3-[5] BUILDING-Roof-steep slope shingle, remaining phase 4-[5] BUILDING-Walkway-entry stoop, double, precast-[6] BUILDING-Walkway-entry stoop, single, precast-[6] BUILDING-Façade-siding-[7] RECREATION-Clubhouse-electrical, lighting upgrade-[8] RECREATION-Clubhouse-hvac, ptac-[8] RECREATION-Clubhouse-hvac, wall heaters-[8] RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] RECREATION-Clubhouse-interior finish, carpet-[8] RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] RECREATION-Clubhouse-interior finish, restroom refurbish-[8] RECREATION-Clubhouse-plumbing, hot water heater-[8] RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] RECREATION-Clubhouse-roof, skylights-[8] RECREATION-Clubhouse-sauna refurbishment-[8] RECREATION-Clubhouse-window/door fund-[8] RECREATION-Playground-equipment/edging/surfacing-[9] RECREATION-Swimming Pool-cover RECREATION-Swimming Pool-deck, concrete RECREATION-Swimming Pool-equipment fence, wood RECREATION-Swimming Pool-fence, 4' RECREATION-Swimming Pool-filters-[10,11] RECREATION-Swimming Pool-pumps-[10,11] RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] RECREATION-Tennis Court-reconstruct incl. fence-[13] SITE WORK-Electrical-street lights-[14] SITE WORK-Furniture-pet waste receptacles SITE WORK-Furniture-site benches SITE WORK-Furniture-site trash receptacles SITE WORK-Postal-mailbox pads SITE WORK-Refuse-dumpster fence SITE WORK-Refuse-dumpster pads SITE WORK-Refuse-recycling shed refurbish SITE WORK-Refuse-trash compactor 158, ,000-4,200-2,400-10,000-16,896-20,000-30,000-9,000-15,000-20,000 35,000-60, , ,000

21 C-10 Expenditure Schedule Line Item $ 158,900 $ 159,788 $ 143,640 $ 39,998 SITE WORK-Refuse-trash compactor SITE WORK-Retaining Wall-stone, 3'-[15] SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] SITE WORK-Retaining Wall-wood tie, 2'-[15] SITE WORK-Retaining Wall-wood tie, 3'-[15] SITE WORK-Retaining Wall-wood tie, 4'-[15] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Security-closed circuit tv system SITE WORK-Signage-entry sign placard SITE WORK-Signage-pier repair SITE WORK-Walkway-asphalt path SITE WORK-Walkway-concrete-[17,18] SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #1, pump/controls-[19] SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #2, pump house structure-[19] SITE WORK-Water Supply-pump house #2, pump/controls-[19] 23, ,998-4,500-24,292 25, ,000

22 Expenditure Schedule C Line Item $ 27,292 $ 4,500 $ 297,752 BUILDING-Deck-reconstruction, wood-[3] BUILDING-Roof-gutters, aluminum-[4] BUILDING-Roof-leaders, aluminum-[4] BUILDING-Roof-low slope membrane, 2009-[5] BUILDING-Roof-low slope membrane, 2013-[5] BUILDING-Roof-low slope membrane, remaining-[5] BUILDING-Roof-low slope membrane-2008-[5] BUILDING-Roof-steep slope shingle, 2009-[5] BUILDING-Roof-steep slope shingle, 2010-[5] BUILDING-Roof-steep slope shingle, 2011-[5] BUILDING-Roof-steep slope shingle, 2012-[5] BUILDING-Roof-steep slope shingle, 2013-[5] BUILDING-Roof-steep slope shingle, 2014-[5] BUILDING-Roof-steep slope shingle, remaining phase 1-[5] BUILDING-Roof-steep slope shingle, remaining phase 2-[5] BUILDING-Roof-steep slope shingle, remaining phase 3-[5] BUILDING-Roof-steep slope shingle, remaining phase 4-[5] BUILDING-Walkway-entry stoop, double, precast-[6] BUILDING-Walkway-entry stoop, single, precast-[6] BUILDING-Façade-siding-[7] RECREATION-Clubhouse-electrical, lighting upgrade-[8] RECREATION-Clubhouse-hvac, ptac-[8] RECREATION-Clubhouse-hvac, wall heaters-[8] RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] RECREATION-Clubhouse-interior finish, carpet-[8] RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] RECREATION-Clubhouse-interior finish, restroom refurbish-[8] RECREATION-Clubhouse-plumbing, hot water heater-[8] RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] RECREATION-Clubhouse-roof, skylights-[8] RECREATION-Clubhouse-sauna refurbishment-[8] RECREATION-Clubhouse-window/door fund-[8] RECREATION-Playground-equipment/edging/surfacing-[9] RECREATION-Swimming Pool-cover RECREATION-Swimming Pool-deck, concrete RECREATION-Swimming Pool-equipment fence, wood RECREATION-Swimming Pool-fence, 4' RECREATION-Swimming Pool-filters-[10,11] RECREATION-Swimming Pool-pumps-[10,11] RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] RECREATION-Tennis Court-reconstruct incl. fence-[13] SITE WORK-Electrical-street lights-[14] SITE WORK-Furniture-pet waste receptacles SITE WORK-Furniture-site benches SITE WORK-Furniture-site trash receptacles SITE WORK-Postal-mailbox pads SITE WORK-Refuse-dumpster fence SITE WORK-Refuse-dumpster pads SITE WORK-Refuse-recycling shed refurbish SITE WORK-Refuse-trash compactor 4, ,600-5,488-14,400-68,348

23 C-12 Expenditure Schedule Line Item $ 27,292 $ 4,500 $ 297,752 SITE WORK-Refuse-trash compactor SITE WORK-Retaining Wall-stone, 3'-[15] SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] SITE WORK-Retaining Wall-wood tie, 2'-[15] SITE WORK-Retaining Wall-wood tie, 3'-[15] SITE WORK-Retaining Wall-wood tie, 4'-[15] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Security-closed circuit tv system SITE WORK-Signage-entry sign placard SITE WORK-Signage-pier repair SITE WORK-Walkway-asphalt path SITE WORK-Walkway-concrete-[17,18] SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #1, pump/controls-[19] SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #2, pump house structure-[19] SITE WORK-Water Supply-pump house #2, pump/controls-[19] - 30,000-23,125 24,292 24,292-25,000 3, ,500

24 Expenditure Schedule C Line Item $ 23,998 $ 73,900 $ 24,292 $ 19,400 BUILDING-Deck-reconstruction, wood-[3] BUILDING-Roof-gutters, aluminum-[4] BUILDING-Roof-leaders, aluminum-[4] BUILDING-Roof-low slope membrane, 2009-[5] BUILDING-Roof-low slope membrane, 2013-[5] BUILDING-Roof-low slope membrane, remaining-[5] BUILDING-Roof-low slope membrane-2008-[5] BUILDING-Roof-steep slope shingle, 2009-[5] BUILDING-Roof-steep slope shingle, 2010-[5] BUILDING-Roof-steep slope shingle, 2011-[5] BUILDING-Roof-steep slope shingle, 2012-[5] BUILDING-Roof-steep slope shingle, 2013-[5] BUILDING-Roof-steep slope shingle, 2014-[5] BUILDING-Roof-steep slope shingle, remaining phase 1-[5] BUILDING-Roof-steep slope shingle, remaining phase 2-[5] BUILDING-Roof-steep slope shingle, remaining phase 3-[5] BUILDING-Roof-steep slope shingle, remaining phase 4-[5] BUILDING-Walkway-entry stoop, double, precast-[6] BUILDING-Walkway-entry stoop, single, precast-[6] BUILDING-Façade-siding-[7] RECREATION-Clubhouse-electrical, lighting upgrade-[8] RECREATION-Clubhouse-hvac, ptac-[8] RECREATION-Clubhouse-hvac, wall heaters-[8] RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] RECREATION-Clubhouse-interior finish, carpet-[8] RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] RECREATION-Clubhouse-interior finish, restroom refurbish-[8] RECREATION-Clubhouse-plumbing, hot water heater-[8] RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] RECREATION-Clubhouse-roof, skylights-[8] RECREATION-Clubhouse-sauna refurbishment-[8] RECREATION-Clubhouse-window/door fund-[8] RECREATION-Playground-equipment/edging/surfacing-[9] RECREATION-Swimming Pool-cover RECREATION-Swimming Pool-deck, concrete RECREATION-Swimming Pool-equipment fence, wood RECREATION-Swimming Pool-fence, 4' RECREATION-Swimming Pool-filters-[10,11] RECREATION-Swimming Pool-pumps-[10,11] RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] RECREATION-Tennis Court-reconstruct incl. fence-[13] SITE WORK-Electrical-street lights-[14] SITE WORK-Furniture-pet waste receptacles SITE WORK-Furniture-site benches SITE WORK-Furniture-site trash receptacles SITE WORK-Postal-mailbox pads SITE WORK-Refuse-dumpster fence SITE WORK-Refuse-dumpster pads SITE WORK-Refuse-recycling shed refurbish SITE WORK-Refuse-trash compactor - 19,200-19,200-10,000-15,500-1,400

25 C-14 Expenditure Schedule Line Item $ 23,998 $ 73,900 $ 24,292 $ 19,400 SITE WORK-Refuse-trash compactor SITE WORK-Retaining Wall-stone, 3'-[15] SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] SITE WORK-Retaining Wall-wood tie, 2'-[15] SITE WORK-Retaining Wall-wood tie, 3'-[15] SITE WORK-Retaining Wall-wood tie, 4'-[15] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Security-closed circuit tv system SITE WORK-Signage-entry sign placard SITE WORK-Signage-pier repair SITE WORK-Walkway-asphalt path SITE WORK-Walkway-concrete-[17,18] SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #1, pump/controls-[19] SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #2, pump house structure-[19] SITE WORK-Water Supply-pump house #2, pump/controls-[19] 23, ,000-3,000 24, ,000-20,000

26 Expenditure Schedule C Line Item $ 440,570 $ 431,524 $ 22,400 $ 22,250 BUILDING-Deck-reconstruction, wood-[3] BUILDING-Roof-gutters, aluminum-[4] BUILDING-Roof-leaders, aluminum-[4] BUILDING-Roof-low slope membrane, 2009-[5] BUILDING-Roof-low slope membrane, 2013-[5] BUILDING-Roof-low slope membrane, remaining-[5] BUILDING-Roof-low slope membrane-2008-[5] BUILDING-Roof-steep slope shingle, 2009-[5] BUILDING-Roof-steep slope shingle, 2010-[5] BUILDING-Roof-steep slope shingle, 2011-[5] BUILDING-Roof-steep slope shingle, 2012-[5] BUILDING-Roof-steep slope shingle, 2013-[5] BUILDING-Roof-steep slope shingle, 2014-[5] BUILDING-Roof-steep slope shingle, remaining phase 1-[5] BUILDING-Roof-steep slope shingle, remaining phase 2-[5] BUILDING-Roof-steep slope shingle, remaining phase 3-[5] BUILDING-Roof-steep slope shingle, remaining phase 4-[5] BUILDING-Walkway-entry stoop, double, precast-[6] BUILDING-Walkway-entry stoop, single, precast-[6] BUILDING-Façade-siding-[7] RECREATION-Clubhouse-electrical, lighting upgrade-[8] RECREATION-Clubhouse-hvac, ptac-[8] RECREATION-Clubhouse-hvac, wall heaters-[8] RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] RECREATION-Clubhouse-interior finish, carpet-[8] RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] RECREATION-Clubhouse-interior finish, restroom refurbish-[8] RECREATION-Clubhouse-plumbing, hot water heater-[8] RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] RECREATION-Clubhouse-roof, skylights-[8] RECREATION-Clubhouse-sauna refurbishment-[8] RECREATION-Clubhouse-window/door fund-[8] RECREATION-Playground-equipment/edging/surfacing-[9] RECREATION-Swimming Pool-cover RECREATION-Swimming Pool-deck, concrete RECREATION-Swimming Pool-equipment fence, wood RECREATION-Swimming Pool-fence, 4' RECREATION-Swimming Pool-filters-[10,11] RECREATION-Swimming Pool-pumps-[10,11] RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] RECREATION-Tennis Court-reconstruct incl. fence-[13] SITE WORK-Electrical-street lights-[14] SITE WORK-Furniture-pet waste receptacles SITE WORK-Furniture-site benches SITE WORK-Furniture-site trash receptacles SITE WORK-Postal-mailbox pads SITE WORK-Refuse-dumpster fence SITE WORK-Refuse-dumpster pads SITE WORK-Refuse-recycling shed refurbish SITE WORK-Refuse-trash compactor 2, ,250 1,100-22,050-4, ,000

27 C-16 Expenditure Schedule Line Item $ 440,570 $ 431,524 $ 22,400 $ 22,250 SITE WORK-Refuse-trash compactor SITE WORK-Retaining Wall-stone, 3'-[15] SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] SITE WORK-Retaining Wall-wood tie, 2'-[15] SITE WORK-Retaining Wall-wood tie, 3'-[15] SITE WORK-Retaining Wall-wood tie, 4'-[15] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Security-closed circuit tv system SITE WORK-Signage-entry sign placard SITE WORK-Signage-pier repair SITE WORK-Walkway-asphalt path SITE WORK-Walkway-concrete-[17,18] SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #1, pump/controls-[19] SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #2, pump house structure-[19] SITE WORK-Water Supply-pump house #2, pump/controls-[19] 392, ,232-24,292 25,000-3,000-12,500 -

28 Expenditure Schedule C Line Item $ 76,538 $ 434,155 $ 91,498 $ 63,142 BUILDING-Deck-reconstruction, wood-[3] BUILDING-Roof-gutters, aluminum-[4] BUILDING-Roof-leaders, aluminum-[4] BUILDING-Roof-low slope membrane, 2009-[5] BUILDING-Roof-low slope membrane, 2013-[5] BUILDING-Roof-low slope membrane, remaining-[5] BUILDING-Roof-low slope membrane-2008-[5] BUILDING-Roof-steep slope shingle, 2009-[5] BUILDING-Roof-steep slope shingle, 2010-[5] BUILDING-Roof-steep slope shingle, 2011-[5] BUILDING-Roof-steep slope shingle, 2012-[5] BUILDING-Roof-steep slope shingle, 2013-[5] BUILDING-Roof-steep slope shingle, 2014-[5] BUILDING-Roof-steep slope shingle, remaining phase 1-[5] BUILDING-Roof-steep slope shingle, remaining phase 2-[5] BUILDING-Roof-steep slope shingle, remaining phase 3-[5] BUILDING-Roof-steep slope shingle, remaining phase 4-[5] BUILDING-Walkway-entry stoop, double, precast-[6] BUILDING-Walkway-entry stoop, single, precast-[6] BUILDING-Façade-siding-[7] RECREATION-Clubhouse-electrical, lighting upgrade-[8] RECREATION-Clubhouse-hvac, ptac-[8] RECREATION-Clubhouse-hvac, wall heaters-[8] RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] RECREATION-Clubhouse-interior finish, carpet-[8] RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] RECREATION-Clubhouse-interior finish, restroom refurbish-[8] RECREATION-Clubhouse-plumbing, hot water heater-[8] RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] RECREATION-Clubhouse-roof, skylights-[8] RECREATION-Clubhouse-sauna refurbishment-[8] RECREATION-Clubhouse-window/door fund-[8] RECREATION-Playground-equipment/edging/surfacing-[9] RECREATION-Swimming Pool-cover RECREATION-Swimming Pool-deck, concrete RECREATION-Swimming Pool-equipment fence, wood RECREATION-Swimming Pool-fence, 4' RECREATION-Swimming Pool-filters-[10,11] RECREATION-Swimming Pool-pumps-[10,11] RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] RECREATION-Tennis Court-reconstruct incl. fence-[13] SITE WORK-Electrical-street lights-[14] SITE WORK-Furniture-pet waste receptacles SITE WORK-Furniture-site benches SITE WORK-Furniture-site trash receptacles SITE WORK-Postal-mailbox pads SITE WORK-Refuse-dumpster fence SITE WORK-Refuse-dumpster pads SITE WORK-Refuse-recycling shed refurbish SITE WORK-Refuse-trash compactor - 16,800 35, ,450 42, , , ,200 16, ,080

29 C-18 Expenditure Schedule Line Item $ 76,538 $ 434,155 $ 91,498 $ 63,142 SITE WORK-Refuse-trash compactor SITE WORK-Retaining Wall-stone, 3'-[15] SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] SITE WORK-Retaining Wall-wood tie, 2'-[15] SITE WORK-Retaining Wall-wood tie, 3'-[15] SITE WORK-Retaining Wall-wood tie, 4'-[15] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Security-closed circuit tv system SITE WORK-Signage-entry sign placard SITE WORK-Signage-pier repair SITE WORK-Walkway-asphalt path SITE WORK-Walkway-concrete-[17,18] SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #1, pump/controls-[19] SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #2, pump house structure-[19] SITE WORK-Water Supply-pump house #2, pump/controls-[19] - 23,125 23,998-4,500-20,650-24,292 24,292-25,000

30 Expenditure Schedule C Line Item $ 23,100 $ 28,500 $ 235,816 $ 217,898 BUILDING-Deck-reconstruction, wood-[3] BUILDING-Roof-gutters, aluminum-[4] BUILDING-Roof-leaders, aluminum-[4] BUILDING-Roof-low slope membrane, 2009-[5] BUILDING-Roof-low slope membrane, 2013-[5] BUILDING-Roof-low slope membrane, remaining-[5] BUILDING-Roof-low slope membrane-2008-[5] BUILDING-Roof-steep slope shingle, 2009-[5] BUILDING-Roof-steep slope shingle, 2010-[5] BUILDING-Roof-steep slope shingle, 2011-[5] BUILDING-Roof-steep slope shingle, 2012-[5] BUILDING-Roof-steep slope shingle, 2013-[5] BUILDING-Roof-steep slope shingle, 2014-[5] BUILDING-Roof-steep slope shingle, remaining phase 1-[5] BUILDING-Roof-steep slope shingle, remaining phase 2-[5] BUILDING-Roof-steep slope shingle, remaining phase 3-[5] BUILDING-Roof-steep slope shingle, remaining phase 4-[5] BUILDING-Walkway-entry stoop, double, precast-[6] BUILDING-Walkway-entry stoop, single, precast-[6] BUILDING-Façade-siding-[7] RECREATION-Clubhouse-electrical, lighting upgrade-[8] RECREATION-Clubhouse-hvac, ptac-[8] RECREATION-Clubhouse-hvac, wall heaters-[8] RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] RECREATION-Clubhouse-interior finish, carpet-[8] RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] RECREATION-Clubhouse-interior finish, restroom refurbish-[8] RECREATION-Clubhouse-plumbing, hot water heater-[8] RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] RECREATION-Clubhouse-roof, skylights-[8] RECREATION-Clubhouse-sauna refurbishment-[8] RECREATION-Clubhouse-window/door fund-[8] RECREATION-Playground-equipment/edging/surfacing-[9] RECREATION-Swimming Pool-cover RECREATION-Swimming Pool-deck, concrete RECREATION-Swimming Pool-equipment fence, wood RECREATION-Swimming Pool-fence, 4' RECREATION-Swimming Pool-filters-[10,11] RECREATION-Swimming Pool-pumps-[10,11] RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] RECREATION-Tennis Court-reconstruct incl. fence-[13] SITE WORK-Electrical-street lights-[14] SITE WORK-Furniture-pet waste receptacles SITE WORK-Furniture-site benches SITE WORK-Furniture-site trash receptacles SITE WORK-Postal-mailbox pads SITE WORK-Refuse-dumpster fence SITE WORK-Refuse-dumpster pads SITE WORK-Refuse-recycling shed refurbish SITE WORK-Refuse-trash compactor 23, , ,900-10,000 4, ,000-15,500-30,000

31 C-20 Expenditure Schedule Line Item $ 23,100 $ 28,500 $ 235,816 $ 217,898 SITE WORK-Refuse-trash compactor SITE WORK-Retaining Wall-stone, 3'-[15] SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] SITE WORK-Retaining Wall-wood tie, 2'-[15] SITE WORK-Retaining Wall-wood tie, 3'-[15] SITE WORK-Retaining Wall-wood tie, 4'-[15] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Security-closed circuit tv system SITE WORK-Signage-entry sign placard SITE WORK-Signage-pier repair SITE WORK-Walkway-asphalt path SITE WORK-Walkway-concrete-[17,18] SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #1, pump/controls-[19] SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #2, pump house structure-[19] SITE WORK-Water Supply-pump house #2, pump/controls-[19] 23, ,998 24,292-25, ,000

32 Expenditure Schedule C Line Item $ 249,674 $ 183,192 $ 438,848 BUILDING-Deck-reconstruction, wood-[3] BUILDING-Roof-gutters, aluminum-[4] BUILDING-Roof-leaders, aluminum-[4] BUILDING-Roof-low slope membrane, 2009-[5] BUILDING-Roof-low slope membrane, 2013-[5] BUILDING-Roof-low slope membrane, remaining-[5] BUILDING-Roof-low slope membrane-2008-[5] BUILDING-Roof-steep slope shingle, 2009-[5] BUILDING-Roof-steep slope shingle, 2010-[5] BUILDING-Roof-steep slope shingle, 2011-[5] BUILDING-Roof-steep slope shingle, 2012-[5] BUILDING-Roof-steep slope shingle, 2013-[5] BUILDING-Roof-steep slope shingle, 2014-[5] BUILDING-Roof-steep slope shingle, remaining phase 1-[5] BUILDING-Roof-steep slope shingle, remaining phase 2-[5] BUILDING-Roof-steep slope shingle, remaining phase 3-[5] BUILDING-Roof-steep slope shingle, remaining phase 4-[5] BUILDING-Walkway-entry stoop, double, precast-[6] BUILDING-Walkway-entry stoop, single, precast-[6] BUILDING-Façade-siding-[7] RECREATION-Clubhouse-electrical, lighting upgrade-[8] RECREATION-Clubhouse-hvac, ptac-[8] RECREATION-Clubhouse-hvac, wall heaters-[8] RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] RECREATION-Clubhouse-interior finish, carpet-[8] RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] RECREATION-Clubhouse-interior finish, restroom refurbish-[8] RECREATION-Clubhouse-plumbing, hot water heater-[8] RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] RECREATION-Clubhouse-roof, skylights-[8] RECREATION-Clubhouse-sauna refurbishment-[8] RECREATION-Clubhouse-window/door fund-[8] RECREATION-Playground-equipment/edging/surfacing-[9] RECREATION-Swimming Pool-cover RECREATION-Swimming Pool-deck, concrete RECREATION-Swimming Pool-equipment fence, wood RECREATION-Swimming Pool-fence, 4' RECREATION-Swimming Pool-filters-[10,11] RECREATION-Swimming Pool-pumps-[10,11] RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] RECREATION-Tennis Court-reconstruct incl. fence-[13] SITE WORK-Electrical-street lights-[14] SITE WORK-Furniture-pet waste receptacles SITE WORK-Furniture-site benches SITE WORK-Furniture-site trash receptacles SITE WORK-Postal-mailbox pads SITE WORK-Refuse-dumpster fence SITE WORK-Refuse-dumpster pads SITE WORK-Refuse-recycling shed refurbish SITE WORK-Refuse-trash compactor 47,004-40, , ,900-1,100-17,328-3,000

33 C-22 Expenditure Schedule Line Item $ 249,674 $ 183,192 $ 438,848 SITE WORK-Refuse-trash compactor SITE WORK-Retaining Wall-stone, 3'-[15] SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] SITE WORK-Retaining Wall-wood tie, 2'-[15] SITE WORK-Retaining Wall-wood tie, 3'-[15] SITE WORK-Retaining Wall-wood tie, 4'-[15] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt reconstruction-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Roadway/Parking-asphalt seal coat-[16] SITE WORK-Security-closed circuit tv system SITE WORK-Signage-entry sign placard SITE WORK-Signage-pier repair SITE WORK-Walkway-asphalt path SITE WORK-Walkway-concrete-[17,18] SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #1, pump/controls-[19] SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] SITE WORK-Water Supply-pump house #2, pump house structure-[19] SITE WORK-Water Supply-pump house #2, pump/controls-[19] - 392,420-24,292-25,000 3,000 -

34 Fund Projections C-23 Fiscal Year Nominal Expenditure (in Future Dollars) in Fiscal Year Full Funding Scenario Projection Start of Year Fund Balance Projected Contribution End of Year Fund Balance 2016 $ 627,048 $ 431,000 $ 772,442 $ 576, , , , , , , , , , , , , , , , , , , , , , , , , , , ,670 1,022, ,022, ,670 1,198, ,500 1,198, ,670 1,369, ,752 1,369, ,670 1,247, ,998 1,247, ,835 1,385, ,900 1,385, ,835 1,473, ,292 1,473, ,835 1,610, ,400 1,610, ,835 1,753, ,570 1,753, ,835 1,474, ,524 1,474, ,321 1,203, ,400 1,203, ,321 1,341, ,250 1,341, ,321 1,479, ,538 1,479, ,321 1,562, ,155 1,562, ,321 1,289, ,498 1,289, ,384 1,348, ,142 1,348, ,384 1,437, ,100 1,437, ,384 1,565, ,500 1,565, ,384 1,688, ,816 1,688, ,384 1,603, ,898 1,603, ,246 1,537, ,674 1,537, ,246 1,438, ,192 1,438, ,246 1,406, ,406, ,246 1,558, ,848 1,558, ,246 1,270,520

35 C-24 Fund Projections Fiscal Year Nominal Expenditure (in Future Dollars) in Fiscal Year 5% Threshold Funding Scenario Projection Start of Year Fund Balance Initial Year Threshold of $168,595 Projected Contribution End of Year Fund Balance Nominal Threshold in Year 10% Threshold Funding Scenario Projection Start of Year Fund Balance Initial Year Threshold of $337,189 Projected Contribution End of Year Fund Balance Nominal Threshold in Year 2016 $ 627, , , , , , , , , , , , , , , , , , , , , , , , , , , , ,848 $ 431,000 $ 508,108 $ 312,060 $ 168,595 $ 431,000 $ 592,405 $ 396,357 $ 337, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,937 1,019, , , , , ,595 1,019, ,937 1,156, , , ,344 1,107, ,595 1,156, ,937 1,298, ,189 1,107, , , ,595 1,298, ,937 1,018, , , , , ,595 1,018, , , , , , , , , , , , , , , , , ,937 1,025, , , , , ,595 1,025, ,937 1,109, , , , , ,595 1,109, , , , , , , , , , , , , , , , , ,937 1,003, , , , , ,595 1,003, ,937 1,141, , , ,344 1,067, ,595 1,141, ,937 1,273, ,189 1,067, , , ,595 1,273, ,937 1,198, , , , , ,595 1,198, ,937 1,141, , , , , ,595 1,141, ,937 1,053, , , , , ,595 1,053, ,937 1,031, , , , , ,595 1,031, ,937 1,191, , , , , ,595 1,191, , , ,189

36 Fund Projection Graphs C-25 End of Fiscal Year Fund Projection Graph $2,000,000 $1,800,000 $1,600,000 $1,400,000 End of Year Fund Balance $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $ Fiscal Year Full Funding Projection 5% Threshold Projection 10% Threshold Projection 5% Threshold Level 10% Threshold Level

37 C-26 Fund Projection Graphs Annual Contribution in Fiscal Year Graph $900,000 $800,000 $700,000 $600,000 Annual Contribution $500,000 $400,000 $300,000 $200,000 $100,000 $ Fiscal Year Full Funding Annual Contribution 5% Threshold Funding Annual Contribution 10% Threshold Funding Annual Contribution

38 Expenditure Calendar C total expenditure $627, total expenditure $651, total expenditure $315, total expenditure $158,900 SITE WORK-Roadway/Parking-asphalt reconstruction-[16] $392,420 SITE WORK-Roadway/Parking-asphalt reconstruction-[16] $407,232 BUILDING-Roof-steep slope shingle, remaining phase 3-[5] $158,900 BUILDING-Roof-steep slope shingle, remaining phase 4-[5] $158,900 BUILDING-Roof-steep slope shingle, remaining phase 1-[5] $158,900 SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] $25,000 RECREATION-Swimming Pool-fence, 4' $17,328 BUILDING-Roof-steep slope shingle, remaining phase 2-[5] $158,900 SITE WORK-Refuse-trash compactor $30,000 SITE WORK-Walkway-concrete-[17,18] $24,292 BUILDING-Roof-gutters, aluminum-[4] $47,004 BUILDING-Roof-leaders, aluminum-[4] $40,770 SITE WORK-Retaining Wall-wood tie, 4'- [15] $28,130 BUILDING-Roof-low slope membrane, remaining-[5] $16,800 SITE WORK-Walkway-asphalt path $20,650 SITE WORK-Retaining Wall-wood tie, 1-1/2'-[15] $21,185 RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] $15,500 SITE WORK-Furniture-site benches $6,000 SITE WORK-Retaining Wall-wood tie, 3'- [15] $11,750 RECREATION-Clubhouse-plumbing, hot water heater-[8] $1,100 RECREATION-Swimming Pool-cover $4,500 SITE WORK-Retaining Wall-wood tie, 2'- [15] $7,820

39 C-28 Expenditure Calendar 2020 total expenditure $159, total expenditure $143, total expenditure $39, total expenditure $27,292 RECREATION-Clubhouse-interior finish, restroom refurbish-[8] $30,000 RECREATION-Swimming Pool-deck, concrete $60,515 SITE WORK-Roadway/Parking-asphalt seal coat-[16] $23,998 SITE WORK-Walkway-concrete-[17,18] $24,292 SITE WORK-Walkway-concrete-[17,18] $24,292 RECREATION-Clubhouse-window/door fund-[8] $20,000 RECREATION-Clubhouse-interior finish, kitchen refurbishment-[8] $20,000 RECREATION-Playgroundequipment/edging/surfacing-[9] $35,000 SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] $25,000 SITE WORK-Roadway/Parking-asphalt seal coat-[16] $23,125 SITE WORK-Refuse-recycling shed refurbish $8,000 SITE WORK-Security-closed circuit tv system $4,500 RECREATION-Swimming Pool-pumps- [10,11] $3,000 SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] $3,000 RECREATION-Clubhouse-interior finish, carpet-[8] $16,896 SITE WORK-Furniture-site trash receptacles $500 RECREATION-Clubhouse-sauna refurbishment-[8] $15,000 RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] $10,000 RECREATION-Clubhouse-roof, skylights- [8] $9,000 RECREATION-Clubhouse-electrical, lighting upgrade-[8] $5,000 RECREATION-Clubhouse-hvac, ptac-[8] $4,200 SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] $3,000 RECREATION-Clubhouse-hvac, wall heaters-[8] $2,400

40 Expenditure Calendar C total expenditure $ total expenditure $4, total expenditure $297, total expenditure $23,998 RECREATION-Swimming Pool-cover $4,500 SITE WORK-Electrical-street lights-[14] $103,600 SITE WORK-Roadway/Parking-asphalt seal coat-[16] $23,998 SITE WORK-Refuse-dumpster pads $68,348 SITE WORK-Refuse-trash compactor $30,000 SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] $25,000 SITE WORK-Walkway-concrete-[17,18] $24,292 SITE WORK-Roadway/Parking-asphalt seal coat-[16] $23,125 SITE WORK-Refuse-dumpster fence $14,400 SITE WORK-Postal-mailbox pads $5,488 SITE WORK-Water Supply-pump house #2, pump house structure-[19] $3,500

41 C-30 Expenditure Calendar 2028 total expenditure $73, total expenditure $24, total expenditure $19, total expenditure $440,570 SITE WORK-Water Supply-pump house #1, pump/controls-[19] $20,000 BUILDING-Roof-low slope membrane [5] $19,200 BUILDING-Roof-low slope membrane, 2009-[5] $19,200 SITE WORK-Walkway-concrete-[17,18] $24,292 RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] $10,000 SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] $3,000 SITE WORK-Signage-pier repair $3,000 SITE WORK-Roadway/Parking-asphalt reconstruction-[16] $392,420 SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] $25,000 RECREATION-Clubhouse-roof, shingles, asphalt-[5,8] $22,050 RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] $15,500 SITE WORK-Signage-entry sign placard $2,000 RECREATION-Clubhouse-plumbing, hot water heater-[8] $1,100 SITE WORK-Furniture-pet waste receptacles $1,400

42 Expenditure Calendar C total expenditure $431, total expenditure $22, total expenditure $22, total expenditure $76,538 SITE WORK-Roadway/Parking-asphalt reconstruction-[16] $407,232 SITE WORK-Water Supply-pump house #2, pump/controls-[19] $12,500 BUILDING-Roof-steep slope shingle, 2009-[5] $19,250 BUILDING-Roof-steep slope shingle, 2010-[5] $35,350 SITE WORK-Walkway-concrete-[17,18] $24,292 RECREATION-Swimming Pool-cover $4,500 RECREATION-Swimming Pool-pumps- [10,11] $3,000 SITE WORK-Walkway-concrete-[17,18] $24,292 SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] $3,000 RECREATION-Clubhouse-interior finish, carpet-[8] $16,896 BUILDING-Roof-low slope membrane, 2013-[5] $2,400

43 C-32 Expenditure Calendar 2036 total expenditure $434, total expenditure $91, total expenditure $63, total expenditure $23,100 BUILDING-Walkway-entry stoop, double, precast-[6] $213,500 BUILDING-Roof-steep slope shingle, 2012-[5] $42,350 BUILDING-Roof-steep slope shingle, 2013-[5] $38,850 BUILDING-Roof-steep slope shingle, 2014-[5] $23,100 BUILDING-Walkway-entry stoop, single, precast-[6] $145,200 SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] $25,000 SITE WORK-Roadway/Parking-asphalt seal coat-[16] $23,125 SITE WORK-Roadway/Parking-asphalt seal coat-[16] $23,998 SITE WORK-Walkway-asphalt path $20,650 SITE WORK-Security-closed circuit tv system $4,500 SITE WORK-Walkway-concrete-[17,18] $24,292 BUILDING-Roof-low slope membrane, remaining-[5] $16,800 BUILDING-Roof-steep slope shingle, 2011-[5] $9,450 RECREATION-Swimming Poolequipment fence, wood $1,080

44 Expenditure Calendar C total expenditure $28, total expenditure $235, total expenditure $217, total expenditure $249,674 RECREATION-Swimming Pool-shell refurbishment, liner-[10,12] $15,500 RECREATION-Clubhouse-interior finish, assembly/misc furniture-[8] $10,000 SITE WORK-Water Supply-pump house #1, chlorinator/tank-[19] $3,000 BUILDING-Roof-steep slope shingle, remaining phase 1-[5] $158,900 SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] $25,000 SITE WORK-Walkway-concrete-[17,18] $24,292 BUILDING-Roof-steep slope shingle, remaining phase 2-[5] $158,900 SITE WORK-Refuse-trash compactor $30,000 SITE WORK-Roadway/Parking-asphalt seal coat-[16] $23,998 BUILDING-Roof-steep slope shingle, remaining phase 3-[5] $158,900 BUILDING-Roof-gutters, aluminum-[4] $47,004 BUILDING-Roof-leaders, aluminum-[4] $40,770 SITE WORK-Roadway/Parking-asphalt seal coat-[16] $23,125 RECREATION-Swimming Pool-filters- [10,11] $5,000 SITE WORK-Water Supply-pump house #2, chlorinator/tank-[19] $3,000 RECREATION-Swimming Pool-cover $4,500

45 C-34 Expenditure Calendar 2044 total expenditure $183, total expenditure $ total expenditure $438,848 BUILDING-Roof-steep slope shingle, remaining phase 4-[5] $158,900 SITE WORK-Walkway-concrete-[17,18] $24,292 SITE WORK-Roadway/Parking-asphalt reconstruction-[16] $392,420 SITE WORK-Water Supply-elevated water tower repair/upgrade-[19] $25,000 RECREATION-Swimming Pool-fence, 4' $17,328 RECREATION-Swimming Pool-pumps- [10,11] $3,000 RECREATION-Clubhouse-plumbing, hot water heater-[8] $1,100

46 Expenditure Distribution Charts C-35 Present Value Expenditure Over Time Window by Line Item Category SITE WORK, $3,074,049, 56% BUILDING, $2,048,198, 37% RECREATION, $404,493, 7%

47 C-36 Expenditure Distribution Charts Present Value Expenditure Over Time Window for Building Category by Line Item Type Walkway, $358,700.00, 18% Roof, $1,689,498.00, 82%

48 Expenditure Distribution Charts C-37 Present Value Expenditure Over Time Window by Line Item Type Signage, $5,000, 0% Security, $9,000, 0% Water Supply, $229,000, 4% Deck, $0, 0% Roof, $1,689,498, 31% Roadway/Parking, $2,180,213, 39% Walkway, $642,915, 12% Retaining Wall, $68,885, 1% Refuse, $180,748, 3% Postal, $5,488, 0% Furniture, $7,900, 0% Electrical, $103,600, 2% Swimming Pool, $174,751, 3% Tennis Court, $0, 0% Façade, $0, 0% Clubhouse, $194,742, 4% playground, $35,000, 1%

49 C-38 Expenditure Distribution Charts Present Value Expenditure Over Time Window for Site Work Category by Line Item Type Security, $9,000.00, 0% Water Supply, $229,000.01, 7% Signage, $5,000.00, 0% Walkway, $284,215.01, 9% Electrical, $103,600.00, 3% Postal, $5,488.00, 0% Furniture, $7,900.00, 0% Refuse, $180,748.00, 6% Retaining Wall, $68,885.00, 2% Roadway/Parking, $2,180,213.41, 71%

50 Expenditure Distribution Charts C-39 Present Value Expenditure Over Time Window for Recreation Category by Line Item Type Swimming Pool, $174,751.01, 43% Clubhouse, $194,742.00, 48% playground, $35,000.00, 9%

51 C-40 Expenditure Distribution Charts