Country Club - Sample Reserve Study, Account Country Club -- Version Sample January 01, Reserve Data Analyst

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1 , Account Country Club -- Version Sample January 01, 2020 Reserve Data Analyst Prepared By Quality Check By

2 Table of Contents Country Club - Sample Reserve Study Introduc on 3 Summary Page 4 Reserve Analyst Comments 5 What Components Are Included? 6 The Component List 7 Current Cost by Category Chart 9 How Much To Reserve? 10 About Percent Funded 11 Projected Percent Funded Chart 12 Projected Reserve Account Balance Chart 13 Recommended Funding - Summary 14 Recommended Funding - Projec ons 15 Baseline Funding - Summary 16 Baseline Funding - Projec ons 17 Current Funding - Summary 18 Current Funding - Projec ons 19 Projected Expenditures Chart 20 Annual Expenditure Report 21 Fully Funded Balance Calcula on Spreadsheet - Component Expenditures 100 Calcula ons Appendix 109 Defini ons Appendix 110 Disclosures Appendix 115 Component Index 118 Page 2

3 Introduc on Thank you for utilizing the services of Reserve Data Analyst for your reserve study. We strive to create a comprehensive report that can be utilized for your budgeting needs and for future replacement schedules but above all else we place an emphasis on a high level of customer service. If there are any questions, concerns, corrections or revisions needed please do not hesitate to call or us. While this study does have some explanations of the methodology used we have kept it to a minimum for brevity. More detailed explanations of methodology & concepts are explained in our Reserve Study Guidebook which can be found on our website at There are a couple of tips to consider that will help you both navigate this study and understand the different sections within the study: 1. To most easily navigate this study we recommend printing out the Table of Contents page at the beginning of the study and the Component Index pages at the rear of the study. This way you don t need to print out the whole study, you can have the PDF of this study open on the computer and can refer to the printed out Table of Contents and Component Index pages to scroll to or jump to pages within your PDF reader program on the computer. 2. We have created a video summary of a sample study to explain the different pages & reports within this study. You can view this video in a smaller browser window while navigating your study for an explanation of each page in the study. This is extremely helpful and answers the majority of questions that we receive from readers of our reserve studies. Link here: The below section summaries touch on the some of the more sought after sections of this study; these can be found on the following Table of Contents page. Summary Page - The Summary Page is a brief outline of the findings and recommendations found after the due diligence was conducted by the Reserve Analyst. A percent funded and summary of the finding models can be found on this page. Component List - Perhaps the most important section of the study is the Component List which is the basis for the recommendations found within the study. It is important that this list is comprehensive and accurate so that the funding models are helpful and accurate in their projections. Funding Plans & Percent Funded - Following the Component List are the Funding Models, Percent Funded Calculations and Projections. These are based on the component list developed earlier and each have a different goal in mind. Annual Expenditures Report - Following the Funding Plans is the Annual Expenditure Report which shows the projected replacement schedule of the components annually for the next 30 years. - The Component Detail Report section of this study gives recommendations for each component as well as shows the specifics of the component (e.g. quantity, location, special considerations, etc.). Page 3

4 Summary Page Profile Parameters Summary Name Country Club - Sample Reserve Study Location, # of Units 1 Base Year / Age January, Fiscal Year Ends December, Level of Service Level I Full Reserve Study (With Site-Visit) Prepared for Fiscal Year 2017 Last On Site Inspection Date January, Allocation Increase Rate ref. Funding Model Summary Page Contingency Rate ref. Component Detail Report Page Inflation Rate 3% Interest Rate 1% Tax Rate ref. Funding Model Summary Page Funding Plan - Method Cash Flow achieve 100% funded in 30 years *Current Reserve Allocation $17,500 per year *Estimated FY Start Balance $203,000 Fully Funded Balance $386,244 (ideal amount in reserve account) Percent Funded > 53% (Deficit) or Surplus Per Unit *Supplied by Client (-$183,244) per unit per year per month Recommended Funding Model - Achieve 100% funded in 30 years $43,300 $3,608 Baseline Funding Model - Keeps account above $0 in the 30 year timeline of this study $42,128 $3,511 Current Funding Model - Current data supplied by Client $17,500 $1,458 Page 4

5 Reserve Analyst Comments Loans & Special Assessments The below special assessment / loan information has been supplied by the Client and has not been independently verified. The amount and timing of them have been based on the Client's information supplied to the reserve analyst. Special Assessments A member special assessment of $75,000 has been approved for fiscal year This has been include and considered in all the funding models in this reserve study. The funds are reportedly going to be utilized for the pool deck replacement project and some additional outdoor furniture sets. Loans None approved for the fiscal Page 5

6 What Components Are Included? Included Components Reserve expenses for components are major expenses which must be budgeted for in advance in order to provide the necessary funds in time for their occurrence. Reserve expenses are reasonably predictable both in terms of frequency and cost. They are expenses that when incurred would have a significant impact on the smooth operation of the budgetary process from one year to the next if they were not reserved for in advance. A common concern when beginning this process is what components are to be included and funded for in the Reserve Study. Nationally recognized Reserve Study Standards indicates reserve components need to meet the following criteria: Excluded Common Area Components Some common area components may have been left out of the study or included in the component list but Unfunded and not considered in the mathematical models. These components will typically fall into one or more of the categories listed below. Below Threshold Costs - Component repair and/or replacement costs that are deemed too small to be considered reserve expenses are typically included in the operational or maintenance budget have not been funded for in this study. Operational Expenses - These occur at least annually and can be effectively budgeted for each year. They are characterized as being reasonably predictable both in terms of frequency and cost. Very Long or Unpredictable Useful Life Expectancy - Components which, when properly maintained, have a very long useful life with no predictable replacement cycle. Unit Improvements - Improvements made to the property that fall within the Governing Documents unit description summary (unit owner s responsibility). Other Non-Association/Organization Owned - Improvements installed on the property but which are owned by other parties such as governmental agencies, utility companies, the US Postal Service, etc. Page 6

7 The Component List Descrip on Date in Service Replacement Year Useful Adjustment Remaining Units Cost Unit Cost Current Assorted Interior Chairs - Replace ea ,450 Assorted Interior Tables - Replace ls ,500 BBQ - Replace ea Bathrooms - Refurbish ls 10, ,000 Bench - Replace ea Bike Rack - Replace Unfunded Chain Link Fencing - Replace , ,655 Concrete Surfaces - 10 % Repair Con ngen ,444 Court Bench - Replace ea 1, ,500 Court Net Posts - Replace ea ,200 Court Nets - Replace ea ,000 Court Rebounder - Replace ea 1, ,200 Display Refrigerator (Glass Door) - Replace ea 1, ,800 Drinking Fountain (pool)- Replace ea Drinking Fountain (tennis)- Replace ea 4, ,500 Entry Acess - Replace ls 3, ,600 Entry Gates - Replace Unfunded Entry Sign & Structure - Refurbish ls 3, ,108 Exterior Doors - Replace , ,300 Exterior Light Fixtures - Replace , ,275 Exterior Surfaces - Paint/Seal ,721 sf ,204 Furnace - Replace ea 5, ,000 Gravel Surfaces - Refurbish ,125 sf ,731 Gu ers - Replace lf ,075 Interior Carpet - Replace sy ,357 Interior Doors - Replace ea 1, ,190 Interior Flagstone Flooring - Replace sf ,933 Interior Light Fixtures - Replace , ,360 Interior Surfaces - Paint ,069 sf ,054 Interior Tile Flooring - Replace sf ,823 Interior Vinyl Flooring - Replace sy ,472 Kitchen - Refurbish ls 10, ,000 Kitchen Appliances - Replace ea 3, ,500 Landscaping - Refurbish ,857 sf ,142 Picnic Table - Replace ea Ping Pong Table - Replace ea Playground Base - Replenish ,812 sf ,265 Playground Border - Replace lf ,104 Playground Equipment - Replace ls 17, ,500 Playground Swingset - Replace ls 3, ,500 Page 7

8 The Component List Descrip on Date in Service Replacement Year Useful Adjustment Remaining con nued... Pool - Resurface ,476 sf ,712 Pool Cover (Summer)- Replace ls 1, ,500 Pool Cover - Replace ls 9, ,000 Pool Deck - Refurbish ,348 sf ,392 Pool Deck - Replace ,348 sf ,079 Pool Filter - Replace ea 1, ,600 Pool Furniture - Replace ls 6, ,380 Pool Heater - Replace ea 5, ,000 Pool Pumps/Valves Unfunded Pool Tile/Coping - Replace lf ,540 Recrea on / Entry - Refurbish ls 8, ,000 Roof Comp Sh. - Replace sq ,525 Salt Water Chlorinator - Replace ls 2, ,500 Security Systerm - Replace ls 4, ,800 Shed - Replace ea 3, ,500 Storm Drains - Maintain Unfunded Tennis Courts - Replace ,862 sf ,204 Tennis Courts - Resurface ,862 sf ,894 Tetherball - Replace Unfunded Trails - Refurbish ,602 sf ,002 Tree Maintenance ls 2, ,000 Water Heater - Replace ea 3, ,051 Window Shades - Replace ea ,800 Windows - Replace sf ,264 Wood Siding - 10% Con ngency - Replace sf ,770 Wood Storage - Replace each 1, ,000 - Total $509,756 Units Cost Unit Cost Current Total Asset Summary $509,756 Page 8

9 Current Cost by Category Chart The above chart illustrates the current cost breakdown percentage of the Component Categories in this reserve study. Special attention should be given to those component categories which take up a bulk of the % of the current cost as these may require significant planning to adequately budget for their replacement. These large expenses may be well into the future during "Peak Year" cycles. Refer to the Cash Flow Projections and the Annual Expenditure Report for the projected timeline of expected expenditures. Page 9

10 How Much To Reserve? There is no right or wrong answer to How Much Should We Reserve? as the reserve contributions in all the funding models in this study are based on different funding goals. Each Client has different risk tolerances and challenges in enacting whatever funding plan is most appropriate to them. This being said any funding model that projects the reserve account balance to dip into a deficit would not, in our opinion, be appropriate or fiscally responsible as future special assessments, loans or deferred maintains are typically the outcome of any funding model that projects a deficit in the reserve account. Below are some of the more common funding models utilized: Page 10

11 About Percent Funded Percent funded is a calculation of how much is in the reserve account versus an ideal amount known as the Fully Funded Balance. The different ranges in levels of funding are explained below % Funded - Good At this level, the reserve balance is considered to be at a good level of funding. The risk for reliance on special assessments, loans and deferred maintenance is minimized. While the goal is to reach and remain at the 100% funded mark the actual funding level will likely fluctuate above and below 100% due to changing component expenses in any given period of time covered in this reserve study % Funded - Fair A fairly funded reserve account is typically one on the right path to becoming fully funded but one that can also run into trouble if large expenses arise such as unexpected component failures or rapidly rising costs, specifically in years when large expenditures come to fruition. Additionally it is important that the Client is vigilant with their goal to reach a higher percent funded level as there is often pressure to reduce the reserve allocation rate or utilize money elsewhere as the reserve account balance grows to a level which is perceived to be large. Boards often have difficulties in continuing with the longer term goals in years of economic downturn when there is greater difficulty in continuing to allocation to the reserve account with regular annual increases to offset inflationary factors % Funded Low A low funding level often forces an Association/Organization to rely on special assessments and/or loans. With insufficient funds the Client may not be able to meet predictable component project expenditures. At this level of funding many Clients choose to defer component projects which results in condition deficiencies and over time will cause significant deferred maintenance issues which in turn hurt property values and aesthetic appeal of the property. Note that Associations/Organizations can often stay within a poor funding range for many years before any apparent negative impact. The reality of the financial position of the Association/Organization will often become apparent in "peak" expense years when one or several large expense component projects occur (e.g. roofing, asphalt, siding, windows) which will require special assessments to be implemented or loans secured. Page 11

12 Projected Percent Funded Chart The chart above compares the funding models by the percentage funded, annually, over the 30 year timeframe of this reserve study at the end of each fiscal year. The Recommended Funding or Full Funding Models increase the Client's reserve account Percent Funded Level to 100% funding within the timeframe of this study. Once this 100% funded level is reached it is a good indicator that the Client is on track to meet its future obligations with minimal risk of reliance on loans/special assessments. The Baseline Funding Model has only a goal of keeping the reserve account cash positive within the timeframe of the reserve study so it will not typically reach a high level of percent funded over long periods of time within the timeframe of the study. This model carries significant risk for reliance on loans, special assessments or deferred maintenance due to components failing earlier than projected or costs increasing more rapidly than projected. The Current Funding Model is based on information provided to RDA regarding the current allocation rate to the reserve account. The provided allocation rate has then been projected out 30 years, while taking into account annual increases. Page 12

13 Projected Reserve Account Balance Chart The chart above compares the annual year end balance of the reserve account for each funding models over the 30 years covered in this reserve study. Note than even though balances cannot realistically be in the negative territory these have been shown (if applicable) as a visual for the level of deficiency. Page 13

14 Recommended Funding - Summary Report Parameters Report Date January 01, 2020 Account Number Country Club Version Sample Budget Year Beginning January 01, 2017 Budget Year Ending December 31, 2017 Total Units 1 Infla on 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 0.70% Tax Rate Included in Interest Rate 2017 Beginning Balance $128,000 We have developed a funding plan which will help steer the reserve account into a high funded range over a period of 30 years. This funding model is very realistic and helps to guide the reserve account out of the current poor/fair funding range in a relatively short period of time. This Recommended Funding Model requires the Client to allocate the recommended allocation amount into the reserve account with annual increases over the 30 years covered in this study. In the following pages you will find the recommended allocation rates to the reserve account, annual projected expenditures and the percent funded of the reserve account if following this Recommended Funding Model. This Recommended Funding Plan Takes into Account 4 Basic Principles: 1. There are adequate reserves when needed. 2. The budget should remain stable but increasing to offset inflationary factors. 3. The costs are fairly distributed over time. 4. The funding plan must allow the Client to be fiscally responsible. Includes the a special Assessment of $75,000 in year The funding model, projections and recommendations have been adjusted to reflected this special assessment which has been approved by the Board and has passed a member vote. Recomended Funding Model Summary of Calcula ons Required Month Contribu on $3, Average Net Month Interest Earned $15.91 Total Month Alloca on to Reserves $3, Page 14

15 Recommended Funding - Projec ons Beginning Balance: $128,000 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded ,000 Pool Special Assessment ,756 43, ,236 47, ,056 21% ,049 44, ,193 30, ,347 15% ,800 45,937 72,030 4, ,022 3% ,024 47, ,806 25, ,380 14% ,735 48, ,489 67, ,200 30% ,947 50, ,242 87, ,769 37% ,675 51, , , ,731 44% ,936 53, , , ,435 47% ,744 54, , , ,945 51% ,116 56, , , ,915 54% ,069 58,192 1,154 20, , ,267 61% ,621 59,937 1,224 50, , ,909 63% ,790 61,735 1,536 17, , ,803 68% ,594 63,588 1,574 58, , ,206 69% ,052 65,495 1,965 10, , ,845 74% ,183 67,460 1,900 77, , ,466 74% ,009 69,484 2,145 35, , ,001 77% ,549 71,568 1, , , ,678 76% ,825 73,715 2,416 5, , ,038 80% ,860 75,927 2,544 59, , ,438 82% ,676 78,205 2,787 45, , ,481 84% ,296 80,551 3,119 35, , ,857 85% ,745 82,967 3,247 66, , ,880 86% ,863 85,456 3,661 28, , ,398 90% ,689 88,020 4,210 12, , ,606 92% ,019,380 90,661 3, , , ,147 93% ,049,961 93,380 4,113 52, , ,061 95% ,081,460 96,182 3, , , ,414 97% ,113,904 99,067 3, , , ,877 99% ,147, ,039 4,075 73, , , % Page 15

16 Baseline Funding - Summary Report Parameters Report Date January 01, 2020 Account Number Country Club Version Sample Budget Year Beginning January 01, 2017 Budget Year Ending December 31, 2017 Total Units 1 Infla on 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 0.70% Tax Rate Included in Interest Rate 2017 Beginning Balance $128,000 The Baseline Funding Model is considered a bare minimum approach which has a goal of only keeping the reserve account balance above $0 and long term does not result in a good funding range (above 70%) for much of the time period over the 30 years covered in this reserve study. We do not recommend following this funding model due to the higher risk of the reserve account reaching a $0 balance specifically in years when there are large expenses or due to components failing earlier than projected. Includes the a special Assessment of $75,000 in year The funding model, projections and allocation amounts have been adjusted to reflected this special assessment which has been approved by the Board and has passed a member vote. Baseline Threshold Funding Model Summary of Calcula ons Required Month Contribu on $3, Average Net Month Interest Earned $15.54 Total Month Alloca on to Reserves $3, Page 16

17 Baseline Funding - Projec ons Beginning Balance: $128,000 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded ,000 Pool Special Assessment ,756 42, ,236 46, ,056 20% ,049 43, ,193 28, ,347 14% ,800 44,694 72,030 1, ,022 1% ,024 46,034 26,806 20, ,380 11% ,735 47, ,489 61, ,200 28% ,947 48, ,242 79, ,769 34% ,675 50, , , ,731 41% ,936 51, , , ,435 42% ,744 53, , , ,945 46% ,116 54, , , ,915 49% ,069 56,616 1,050 20, , ,267 56% ,621 58,315 1,108 50, , ,909 57% ,790 60,064 1,408 17, , ,803 63% ,594 61,866 1,434 58, , ,206 64% ,052 63,722 1,811 10, , ,845 68% ,183 65,634 1,732 77, , ,466 68% ,009 67,603 1,964 35, , ,001 71% ,549 69,631 1, , , ,678 69% ,825 71,720 2,205 5, , ,038 74% ,860 73,872 2,317 59, , ,438 75% ,676 76,088 2,543 45, , ,481 77% ,296 78,370 2,858 35, , ,857 79% ,745 80,722 2,969 66, , ,880 79% ,863 83,143 3,365 28, , ,398 83% ,689 85,637 3,895 12, , ,606 86% ,019,380 88,207 3, , , ,147 85% ,049,961 90,853 3,760 52, , ,061 87% ,081,460 93,578 3, , , ,414 88% ,113,904 96,386 3, , , ,877 90% ,147,321 99,277 3,658 73, , ,907 92% Page 17

18 Current Funding - Summary Report Parameters Report Date January 01, 2020 Account Number Country Club Version Sample Budget Year Beginning January 01, 2017 Budget Year Ending December 31, 2017 Total Units 1 Infla on 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 0.70% Tax Rate Included in Interest Rate 2017 Beginning Balance $128,000 The Current Funding Model does not adequately fund the reserve account within the timeframe of this reserve study. This funding model assumes a 3% increase to the Current reserve allocation rate annually which still does not meet the projected obligations over the 30 years of this study. Continuing with this funding model will likely lead to a high risk for reliance on special assessments, loans and/or deferred maintenance. Note that while reserve account balance and percent funded could not realistically be in a negative territory it has been reported this way as a visual representation of the amount that the reserve account is projected to be in shortfall. Includes the a special Assessment of $75,000 in year The funding model and projections have been adjusted to reflected this special assessment which has been approved by the Board and has passed a member vote. Current Assessment Funding Model Summary of Calcula ons Required Month Contribu on $1, Average Net Month Interest Earned $7.74 Total Month Alloca on to Reserves $1, Page 18

19 Current Funding - Projec ons Beginning Balance: $128,000 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded ,000 Pool Special Assessment ,756 17, ,236 21, ,056 9% ,049 18,025 61,193-21, ,347-11% ,800 18,566 72,030-75, ,022-44% ,024 19,123 26,806-82, ,380-45% ,735 19,696 6,489-69, ,200-31% ,947 20,287 31,242-80, ,769-34% ,675 20,896 24,627-84, ,731-33% ,936 21,523 49, , ,435-43% ,744 22,168 38, , ,945-48% ,116 22,834 41, , ,915-52% ,069 23,519 20, , ,267-45% ,621 24,224 50, , ,909-52% ,790 24,951 17, , ,803-44% ,594 25,699 58, , ,206-53% ,052 26,470 10, , ,845-43% ,183 27,264 77, , ,466-56% ,009 28,082 35, , ,001-54% ,549 28, , , ,678-76% ,825 29,793 5, , ,038-61% ,860 30,686 59, , ,438-65% ,676 31,607 45, , ,481-63% ,296 32,555 35, , ,857-59% ,745 33,532 66, , ,880-63% ,863 34,538 28, , ,398-57% ,689 35,574 12, , ,606-48% ,019,380 36, , , ,147-71% ,049,961 37,740 52, , ,061-70% ,081,460 38, , , ,414-86% ,113,904 40, , , , % ,147,321 41,240 73, , , % Page 19

20 Projected Expenditures Chart The above chart provides a visual of the reserve account projected expenditures over the 30 years covered in this study. We suggest making a note of large expenditure years (peak years) when there will be significant projected expenditures related to one or more costly component that will require repair/replacement. These large but infrequent component expenses during peak years are typically the most difficult to budget for as they are often overlooked or ignored due to the perception that the expenses are far in the future and there will be time to budget for them at a later date. Page 20

21 Annual Expenditure Report Descrip on Expenditures Replacement Year 2017 Bathrooms - Refurbish 20,000 Concrete Surfaces - 10 % Repair Con ngency 1,444 Court Net Posts - Replace 1,200 Court Nets - Replace 1,000 Display Refrigerator (Glass Door) - Replace 1,800 Drinking Fountain (pool)- Replace 800 Drinking Fountain (tennis)- Replace 4,500 Entry Acess - Replace 3,600 Exterior Surfaces - Paint/Seal 10,204 Furnace - Replace 5,000 Interior Doors - Replace 8,190 Interior Flagstone Flooring - Replace 4,933 Interior Light Fixtures - Replace 5,360 Interior Vinyl Flooring - Replace 2,472 Kitchen - Refurbish 10,000 Ping Pong Table - Replace 900 Pool Deck - Replace 56,079 Recrea on / Entry - Refurbish 8,000 Shed - Replace 3,500 Tennis Courts - Replace 47,204 Water Heater - Replace 3,051 Total for 2017 $199,236 Replacement Year 2018 Court Bench - Replace 2,575 Court Rebounder - Replace 1,236 Interior Carpet - Replace 8,608 Interior Surfaces - Paint 17,566 Playground Base - Replenish 2,333 Windows - Replace 27,052 Page 21

22 Annual Expenditure Report Descrip on Expenditures Replacement Year 2018 con nued... Wood Siding - 10% Con ngency - Replace 1,824 Total for 2018 $61,193 Replacement Year 2019 Assorted Interior Chairs - Replace 3,660 Chain Link Fencing - Replace 31,461 Court Nets - Replace 1,061 Entry Sign & Structure - Refurbish 3,297 Exterior Doors - Replace 18,354 Playground Swingset - Replace 3,713 Pool Cover (Summer)- Replace 1,591 Pool Furniture - Replace 6,769 Trails - Refurbish 2,124 Total for 2019 $72,030 Replacement Year 2020 Gravel Surfaces - Refurbish 15,005 Pool Cover - Replace 9,835 Window Shades - Replace 1,967 Total for 2020 $26,806 Replacement Year 2021 Court Nets - Replace 1,126 Picnic Table - Replace 563 Playground Base - Replenish 2,549 Tree Maintenance 2,251 Total for 2021 $6,489 Page 22

23 Annual Expenditure Report Descrip on Expenditures Replacement Year 2022 Concrete Surfaces - 10 % Repair Con ngency 1,674 Exterior Surfaces - Paint/Seal 11,829 Pool Heater - Replace 5,796 Salt Water Chlorinator - Replace 2,898 Security Systerm - Replace 5,565 Trails - Refurbish 2,321 Wood Storage - Replace 1,159 Total for 2022 $31,242 Replacement Year 2023 BBQ - Replace 955 Court Nets - Replace 1,194 Interior Surfaces - Paint 20,363 Wood Siding - 10% Con ngency - Replace 2,114 Total for 2023 $24,627 Replacement Year 2024 Playground Base - Replenish 2,786 Pool - Resurface 36,542 Pool Cover (Summer)- Replace 1,845 Pool Furniture - Replace 7,847 Total for 2024 $49,019 Replacement Year 2025 Court Nets - Replace 1,267 Exterior Light Fixtures - Replace 1,615 Kitchen Appliances - Replace 4,434 Page 23

24 Annual Expenditure Report Descrip on Expenditures Replacement Year 2025 con nued... Tennis Courts - Resurface 29,002 Trails - Refurbish 2,537 Total for 2025 $38,854 Replacement Year 2026 Assorted Interior Tables - Replace 1,957 Interior Carpet - Replace 10,904 Playground Border - Replace 2,745 Playground Equipment - Replace 22,834 Tree Maintenance 2,610 Total for 2026 $41,049 Replacement Year 2027 Concrete Surfaces - 10 % Repair Con ngency 1,940 Court Nets - Replace 1,344 Exterior Surfaces - Paint/Seal 13,713 Playground Base - Replenish 3,044 Total for 2027 $20,041 Replacement Year 2028 Gravel Surfaces - Refurbish 19,007 Interior Surfaces - Paint 23,607 Trails - Refurbish 2,772 Window Shades - Replace 2,492 Wood Siding - 10% Con ngency - Replace 2,451 Total for 2028 $50,328 Page 24

25 Annual Expenditure Report Descrip on Expenditures Replacement Year 2029 Bench - Replace 713 Court Nets - Replace 1,426 Pool Cover (Summer)- Replace 2,139 Pool Furniture - Replace 9,096 Water Heater - Replace 4,350 Total for 2029 $17,724 Replacement Year 2030 Gu ers - Replace 1,579 Landscaping - Refurbish 17,832 Playground Base - Replenish 3,326 Pool Cover - Replace 13,217 Roof Comp Sh. - Replace 22,799 Total for 2030 $58,753 Replacement Year 2031 BBQ - Replace 1,210 Court Net Posts - Replace 1,815 Court Nets - Replace 1,513 Trails - Refurbish 3,029 Tree Maintenance 3,025 Total for 2031 $10,592 Replacement Year 2032 Concrete Surfaces - 10 % Repair Con ngency 2,249 Display Refrigerator (Glass Door) - Replace 2,804 Entry Acess - Replace 5,609 Page 25

26 Annual Expenditure Report Descrip on Expenditures Replacement Year 2032 con nued... Exterior Surfaces - Paint/Seal 15,897 Ping Pong Table - Replace 1,402 Pool Filter - Replace 2,493 Pool Heater - Replace 7,790 Salt Water Chlorinator - Replace 3,895 Tennis Courts - Resurface 35,669 Total for 2032 $77,808 Replacement Year 2033 Court Nets - Replace 1,605 Interior Surfaces - Paint 27,366 Playground Base - Replenish 3,635 Wood Siding - 10% Con ngency - Replace 2,841 Total for 2033 $35,447 Replacement Year 2034 Interior Carpet - Replace 13,813 Pool - Resurface 49,109 Pool Cover (Summer)- Replace 2,479 Pool Furniture - Replace 10,545 Pool Tile/Coping - Replace 15,768 Security Systerm - Replace 7,934 Trails - Refurbish 3,310 Total for 2034 $102,958 Replacement Year 2035 Court Nets - Replace 1,702 Interior Vinyl Flooring - Replace 4,208 Total for 2035 $5,911 Page 26

27 Annual Expenditure Report Descrip on Expenditures Replacement Year 2036 Gravel Surfaces - Refurbish 24,078 Picnic Table - Replace 877 Playground Base - Replenish 3,972 Pool Deck - Refurbish 23,483 Tree Maintenance 3,507 Window Shades - Replace 3,156 Total for 2036 $59,073 Replacement Year 2037 Concrete Surfaces - 10 % Repair Con ngency 2,607 Court Nets - Replace 1,806 Exterior Surfaces - Paint/Seal 18,429 Furnace - Replace 9,031 Interior Light Fixtures - Replace 9,681 Trails - Refurbish 3,617 Total for 2037 $45,171 Replacement Year 2038 Interior Surfaces - Paint 31,725 Wood Siding - 10% Con ngency - Replace 3,294 Total for 2038 $35,019 Replacement Year 2039 BBQ - Replace 1,533 Court Nets - Replace 1,916 Playground Base - Replenish 4,340 Pool Cover (Summer)- Replace 2,874 Page 27

28 Annual Expenditure Report Descrip on Expenditures Replacement Year 2039 con nued... Pool Furniture - Replace 12,225 Tennis Courts - Resurface 43,868 Total for 2039 $66,756 Replacement Year 2040 Kitchen Appliances - Replace 6,908 Pool Cover - Replace 17,762 Trails - Refurbish 3,952 Total for 2040 $28,622 Replacement Year 2041 Court Nets - Replace 2,033 Tree Maintenance 4,066 Water Heater - Replace 6,202 Total for 2041 $12,300 Replacement Year 2042 Bathrooms - Refurbish 41,876 Concrete Surfaces - 10 % Repair Con ngency 3,023 Drinking Fountain (pool)- Replace 1,675 Exterior Surfaces - Paint/Seal 21,364 Interior Carpet - Replace 17,498 Kitchen - Refurbish 20,938 Playground Base - Replenish 4,742 Pool Heater - Replace 10,469 Recrea on / Entry - Refurbish 16,750 Salt Water Chlorinator - Replace 5,234 Shed - Replace 7,328 Total for 2042 $150,897 Page 28

29 Annual Expenditure Report Descrip on Expenditures Replacement Year 2043 Court Bench - Replace 5,391 Court Nets - Replace 2,157 Interior Surfaces - Paint 36,778 Trails - Refurbish 4,319 Wood Siding - 10% Con ngency - Replace 3,818 Total for 2043 $52,463 Replacement Year 2044 Bench - Replace 1,111 Gravel Surfaces - Refurbish 30,501 Pool - Resurface 65,999 Pool Cover (Summer)- Replace 3,332 Pool Furniture - Replace 14,172 Window Shades - Replace 3,998 Total for 2044 $119,113 Replacement Year 2045 Court Net Posts - Replace 2,746 Court Nets - Replace 2,288 Playground Base - Replenish 5,182 Tennis Courts - Replace 107,998 Total for 2045 $118,214 Replacement Year 2046 Assorted Interior Tables - Replace 3,535 Court Rebounder - Replace 2,828 Playground Border - Replace 4,958 Page 29

30 Annual Expenditure Report Descrip on Expenditures Replacement Year 2046 con nued... Playground Equipment - Replace 41,240 Security Systerm - Replace 11,312 Trails - Refurbish 4,719 Tree Maintenance 4,713 Total for 2046 $73,304 Page 30

31 Fully Funded Balance Calcula on Descrip on Remaining Replacement Assigned Life Year Reserves Fully Funded Reserves Bathrooms - Refurbish ,000 20,000 Concrete Surfaces - 10 % Repair Con ngency ,444 1,444 Court Net Posts - Replace ,200 1,200 Court Nets - Replace ,000 1,000 Display Refrigerator (Glass Door) - Replace ,800 1,800 Drinking Fountain (pool)- Replace Drinking Fountain (tennis)- Replace ,500 4,500 Entry Acess - Replace ,600 3,600 Exterior Surfaces - Paint/Seal ,204 10,204 Furnace - Replace ,000 5,000 Interior Doors - Replace ,190 8,190 Interior Flagstone Flooring - Replace ,933 4,933 Interior Light Fixtures - Replace ,360 5,360 Interior Vinyl Flooring - Replace ,472 2,472 Kitchen - Refurbish ,000 10,000 Ping Pong Table - Replace Pool Deck - Replace ,079 56,079 Recrea on / Entry - Refurbish ,000 8,000 Shed - Replace ,500 3,500 Tennis Courts - Replace ,204 47,204 Water Heater - Replace ,051 3,051 Windows - Replace * D 3,764 25,623 Wood Siding - 10% Con ngency - Replace D 1,475 Court Bench - Replace ,414 Court Rebounder - Replace ,159 Interior Carpet - Replace ,312 Interior Surfaces - Paint ,643 Playground Base - Replenish ,510 Assorted Interior Chairs - Replace ,220 Chain Link Fencing - Replace ,468 Entry Sign & Structure - Refurbish ,901 Exterior Doors - Replace ,608 Playground Swingset - Replace ,267 Pool Cover (Summer)- Replace Pool Furniture - Replace ,828 Trails - Refurbish Page 31

32 Fully Funded Balance Calcula on Descrip on Remaining Replacement Assigned Life Year Reserves Fully Funded Reserves Gravel Surfaces - Refurbish ,582 Pool Cover - Replace ,300 Window Shades - Replace ,125 Picnic Table - Replace Tree Maintenance Pool Heater - Replace ,500 Salt Water Chlorinator - Replace ,250 Security Systerm - Replace ,800 Wood Storage - Replace BBQ - Replace Pool - Resurface ,914 Exterior Light Fixtures - Replace Kitchen Appliances - Replace ,633 Tennis Courts - Resurface ,812 Assorted Interior Tables - Replace Playground Border - Replace ,157 Playground Equipment - Replace ,625 Bench - Replace Gu ers - Replace Landscaping - Refurbish ,881 Roof Comp Sh. - Replace ,434 Pool Filter - Replace Pool Tile/Coping - Replace ,431 Pool Deck - Refurbish Interior Tile Flooring - Replace ,515 Entry Gates - Replace Unfunded Pool Pumps/Valves Unfunded Storm Drains - Maintain Unfunded Tetherball - Replace Unfunded Bike Rack - Replace Unfunded Page 32

33 Fully Funded Balance Calcula on Descrip on Remaining Replacement Assigned Life Year Reserves Fully Funded Reserves Total Asset Summary $203,000 $386,244 Percent Fully Funded 53% Current Average Liability per Unit (Total Units: 1) -$183,244 '*' Indicates Par ally Funded 'D' Indicates Deferred Funding Page 33

34 Assorted Interior Chairs - Replace Category Furniture Placed in Service May 1989 Useful Life 30 Replacement Year 2019 Remaining Life 2 69 $50.00 Asset Cost $3, Future Cost $3, Fair condition of assorted interior chairs. Plan for replacement at regular intervals due to heavy wear. Page 34

35 Assorted Interior Tables - Replace Category Furniture Placed in Service May 2006 Useful Life 20 Replacement Year 2026 Remaining Life 9 15 $ Asset Cost $1, Future Cost $1, Fair condition of assorted tables. Plan for regular cycles of replacement due to heavy wear. Page 35

36 BBQ - Replace Category Recrea on Placed in Service May 2015 Useful Life 8 Replacement Year 2023 Remaining Life 6 1 $ Asset Cost $ Future Cost $ Component is in fair condition. We suggest inspection and cleaning as needed annually. The BBQ also has a cover which is an inexpensive item that can be paid for from the operating budget. Page 36

37 Bathrooms - Refurbish Category Building Interiors Placed in Service May 1989 Useful Life 25 Replacement Year 2017 Remaining Life 0 2 $10, Asset Cost $20, Future Cost $20, Fair condition with no reported problems at this time but outdated appearance apparent. Inspect regularly, perform any needed repairs promptly utilizing operating budget. Typically durable components, however, prudent planning suggests setting aside\ funds for regular intervals of refurbishing which may include items such as fixtures, cabinetry, shower, wall treatments, fans, etc. Page 37

38 Bench - Replace Category Grounds Components Placed in Service May 2014 Useful Life 15 Replacement Year 2029 Remaining Life 12 1 $ Asset Cost $ Future Cost $ Fair condition of composite bench. We recommend inspecting and cleaning annually. Plan for replacement at the time intervals indicated. Page 38

39 Bike Rack - Replace Category Grounds Components Placed in Service May 1969 Useful Life 60 Replacement Year 2029 Remaining Life 12 2 $ Asset Cost $ Future Cost $1, Fair condition noted. This is a long life component that has no expected replacement cycle. We recommend cleaning and inspecting annually but do not recommend funding for replacement at this time. Page 39

40 Chain Link Fencing - Replace Category Fencing Placed in Service May 1969 Useful Life 40 Adjustment 10 Replacement Year 2019 Remaining Life 2 Asset Cost $29, Future Cost $31, Fair/Poor condition with no instability noted but with widespread deterioration and areas of rust. The Facility Manager stated the current fence is not up to code as the openings are wider than 2". This was temporarily fixed a number of years ago by adding wire fencing with a smaller opening to the existing chain link fence. This fence has areas of significant deterioration and we have adjusted the remaining life to 50 years as it appears to have lasted longer than is typical. Plan for replacement before failure and to retain/elevate the aesthetic appeal of the property. 518 lf - chain link 7' with barbed $28.08 = $14, lf - chain link 10' around tennis = 15, Total = $29, *Fencing around the Mirrormont Pea Patch has not been included in the above measurement as it is reportedly maintained by the members who lease this space. Page 40

41 Concrete Surfaces - 10 % Repair Con ngency Category Concrete Surfaces Placed in Service May 1969 Useful Life 5 Replacement Year 2017 Remaining Life 0 $12.00 Asset Cost $1, Percent Replacement 15% Future Cost $1, % Repair contingency for the concrete surfaces (walkways, porches, patios. Amount and cycle to be reviewed annually. No widespread damage or deterioration noted at time of site visit. Plan to fund for repairs to the aging concrete to patch cracks and grind trip hazards. Page 41

42 Court Bench - Replace Category Tennis Courts Placed in Service May 1989 Useful Life 25 Adjustment 4 Replacement Year 2018 Remaining Life 1 2 $1, Asset Cost $2, Future Cost $2, Fair condition of wood benches. We recommend annual cleaning and sealing as needed paid for from the operating account. Plan for replacement due to constant exposure to the elements at the time scale indicated. Page 42

43 Court Net Posts - Replace Category Tennis Courts Placed in Service May 1989 Useful Life 14 Replacement Year 2017 Remaining Life 0 2 $ Asset Cost $1, Future Cost $1, Fair condition of Net Posts/Pullers. We recommend inspecting annually for minor repair and replacement every 14 years to coincide with court resurfacing due to constant use. Page 43

44 Court Nets - Replace Category Tennis Courts Placed in Service May 2015 Useful Life 2 Replacement Year 2017 Remaining Life 0 2 $ Asset Cost $1, Future Cost $1, Fair condition of tennis court nets. We recommend storage of these nets indoors during the winter months if not being utilized. Plan for regular cycles of replacement at time scales indicated. Page 44

45 Court Rebounder - Replace Category Tennis Courts Placed in Service May 1989 Useful Life 28 Adjustment 1 Replacement Year 2018 Remaining Life 1 1 $1, Asset Cost $1, Future Cost $1, Fair condition of tennis court rebounder. Plan for annual inspection, painting and net replacement paid for from the operating account. Plan for replacement to coincide with the court replacement cycles of every 28 years. Page 45

46 Display Refrigerator (Glass Door) - Replace Category Appliances Placed in Service May 1969 Useful Life 15 Replacement Year 2017 Remaining Life 0 1 $1, Asset Cost $1, Future Cost $1, Fair appearance with no reported problems. Refrigerator data plate indicates installation in 2000, however, other appliances are significantly older. Assumed to be in functional operating condition. Prudent planning suggests setting aside funds for the periodic replacement of recreation building appliances at regular intervals. Page 46

47 Drinking Fountain (pool) - Replace Category Building Exteriors Placed in Service May 1969 Useful Life 25 Replacement Year 2017 Remaining Life 0 1 $ Asset Cost $ Future Cost $ Unknown if this drinking fountain is operational as it is not connected to the plumbing of the building. Areas of rust and deterioration noted. We recommend replacement to retain aesthetic appeal of the club. Page 47

48 Drinking Fountain (tennis) - Replace Category Grounds Components Placed in Service May 1969 Useful Life 35 Replacement Year 2017 Remaining Life 0 1 $4, Asset Cost $4, Future Cost $4, Drinking fountain at tennis courts does not appear to be operational. We recommend funding for replacement including piping to this component as it appears it has not been functional for some time. Page 48

49 Entry Acess - Replace Category Building Exteriors Placed in Service May 2000 Useful Life 15 Replacement Year 2017 Remaining Life 0 1 $3, Asset Cost $3, Future Cost $3, Fair appearance with no significant damage observed and no reported problems at this time. We recommend professional inspections and maintenance. Wipe down surfaces periodically with an appropriate cleaner, being careful to avoid control buttons. Plan for replacement at the typical life expectancy interval indicated, due to constant usage and exposure to weather elements. *Clubhouse entrance and gate entrance into pool area. Page 49

50 Entry Gates - Replace Category Grounds Components Placed in Service May 1969 No Useful Life 3 $ Asset Cost $2, Future Cost $2, Fair condition of wire & concrete entry gates. This is a long life component with no expected replacement cycle. We recommend annual inspection, cleaning and painting paid for from the operating budget. Page 50

51 Entry Sign & Structure - Refurbish Category Signage Placed in Service January 1989 Useful Life 30 Replacement Year 2019 Remaining Life 2 1 $3, Asset Cost $3, Future Cost $3, Fair condition of entry signs with general deterioration and poor condition of wood shingles. As routine maintenance, inspect regularly, clean/touch up for appearance and repair from operating budget. Reserve funding recommended for regular intervals of refurbishment/replacement to maintain a consistent, quality appearance. Page 51

52 Exterior Doors - Replace Category Building Exteriors Placed in Service May 1969 Useful Life 50 Replacement Year 2019 Remaining Life 2 Asset Cost $17, Future Cost $18, Fair condition with no significant damage or deterioration observed. Inspect regularly, repair hardware as needed from maintenance budget. Reserve funding recommended at level indicated. We recommend funding for the replacement of these doors to coincide with other updates/remodels to the clubhouse for cost efficiency. 1 - double $3, = $3, double 3, = 3, exterior 2, = 2, exterior 2, = 4, exterior 2, = 4, Total = $17, Page 52

53 Exterior Light Fixtures - Replace Category Building Exteriors Placed in Service May 2000 Useful Life 25 Replacement Year 2025 Remaining Life 8 Asset Cost $1, Future Cost $1, Fair to poor condition of assorted fixtures with general deterioration evident. Observed during daylight hours; assumed to be in functional operating condition. As routine maintenance, clean by wiping down with an appropriate cleaner, change bulbs and repair as needed. Best to plan for replacement at roughly the time frame below for periodic aesthetic updating, cost efficiency and consistent quality/appearance throughout association. Time project to coincide with clean/seal/paint cycles for cost efficiency. 1 - medium quality $ = $ single security = double security = medium quality = single security = Total = $1, Page 53

54 Exterior Surfaces - Paint/Seal Category Paint/Stain/Seal Placed in Service May 1969 Useful Life 5 Replacement Year 2017 Remaining Life 0 2,721 $3.75 Asset Cost $10, Future Cost $10, Fair condition of painted surfaces - general wear, aging/fading. Exterior surfaces consist primarily of wood siding. As routine maintenance, inspect regularly and touch up/repair locally as needed using operating funds. Typical Northwest paint cycles are between five to seven years depending upon surface preparation, material quality, application methods, site and weather conditions. Removal and replacement of sealants where applicable with high quality product is important part of surface preparation. Repair areas as needed prior to painting. *Measurements include soffits, siding, fascia and doors. Page 54

55 Furnace - Replace Category Mechanical Placed in Service May 1989 Useful Life 20 Replacement Year 2017 Remaining Life 0 1 $5, Asset Cost $5, Future Cost $5, No reported problems. Professional inspections and maintenance are recommended. Best to plan for replacement at roughly the time frame below. this gas furnace was reportedly last replaced in Page 55

56 Gravel Surfaces - Refurbish Category Driveway/Parking Placed in Service May 2012 Useful Life 8 Replacement Year 2020 Remaining Life 3 21,125 $0.65 Asset Cost $13, Future Cost $15, Generally fair condition with no significant erosion, settling or other indications that large scale refurbish work is needed at this time. Assumed to have been correctly installed with adequate base, compaction and surrounding drainage. As routine maintenance, inspect biannually and fill low spots, repair locally as needed from the operating budget. Page 56