Vallarta Community Association

Transcription

1 Funding Reserve Analysis Update with Site Visit for Vallarta Community Association December 18, 2012 Page 1 of 59 Pages

2 Funding Reserve Analysis Update with Site Visit for Vallarta Community Association Table of Contents Pages Subject 1 Report Cover Sheet 2 Table of Contents 3 to 14 Reserve Study Summary 15 to 25 Reserve Item Summary 26 to 31 Reserve Item Listing 32 to 33 Cash Flow 34 to 35 Dues Summary 36 to 47 Revenue Report 48 to 53 Expense Report 54 to 59 Expense Summary Page 2 of 59 Pages

3 December 18, 2012 Mr. Chad Reed Vallarta Community Association 4236 N Verrado Way, Suite A-102l Buckeye, AZ Subject: Vallarta Community Association Dear Mr. Reed: Great Boards, LLC is pleased to present to Vallarta Community Association its requested reserve funding study update. Once you have had an opportunity to review this report, please feel free to call us at (602) or at info@greatboards.com with any questions you or your Board may have. The following is a summary of the reserve study report for Vallarta Community Association: Project Description Vallarta Community Association is a 107 unit townhome community within the Verrado master planned community in Buckeye, Arizona. The Vallarta Communty Association is responsible for maintaining building exteriors and roofing, entry gates and access systems, private streets, mailboxes, landscaping and recreational amenities. This report is an update to the October 20, 2008 reserve study prepared by Reserve Data Analysis, Inc. Date of Physical Inspection Vallarta Community Association was physically inspected by Great Boards, LLC on September 01, Depth of Study Reserve Study Update with Field Inspection A field inspection was made to visually verify the existing component conditions and to visually verify existing component quantities. In place testing, laboratory testing, and non-destructive testing of the reserve study components were not performed. Field measurements of some components was made to either verify improvement plan take offs or determine directly the quantities of a component. Photographs were taken of some of the site improvements. Fiscal Year This reserve study was prepared for the fiscal year beginning January 1, 2013 and ending December 31, Initial Reserves Initial reserves for this Reserve Study were known to be $181,548 on June 30, Based upon a study start date of January 1, 2013 a total of 185 days of accrued interest at 0.34 percent per annum were compounded to yield an initial reserve balance of $181,862. An implicit assumption has been made that the reserve accounts will not be drawn down between the date of the known reserve balance and the study start date. Inflation Estimate Inflation for the past year has been reviewed and a best estimate of the expected inflation for 2013 has been used to inflate future expenses. Page 3 of 59 Pages

4 Vallarta Community Association Funding Study Summary - Continued Reserve Funding Goal The reserve fund is set to be as close to fully funded as possible on an annual basis. Summary of Financial Assumptions The below table contains a partial summary of information provided by Mr. Chad Reed for the Vallarta Community Association funding study. Reserve Study by Calendar Year Starting January 1, 2013 Funding Study Length 30 Years Number of Dues Paying Members 107 Initial Reserves¹ $181,862 Annual Inflation Rate 2.50% Tax Rate on Reserve Interest ² 30.00% Minimum Reserve Account Balance $0 Dues Change Period 25 Years ¹ See Appendix A ² Taxed as an IRS exempt association Annual Operating Budget $0 Reserve Study Assumptions The following assumptions are implicit in this reserve study: Cost estimates and financial information are accurate and current; No unforeseen circumstances will cause a significant reduction of reserves; Sufficient comprehensive property insurance exists to protect from insurable risks; The association plans to continue to maintain the existing common areas and amenities; Reserve payments occur at the end of every calendar month; and, Expenses occur at the end of the expense year. Impact of Component Life The projected life expectancy of the major components and the Association's reserve funding needs are closely tied. Performing the appropriate routine maintenance for each major component generally increases component useful life, effectively moving the component expense into the future, which reduces the Association's reserve funding payments. Failure to perform such maintenance can shorten the remaining useful life of major components, bringing the replacement expense closer to the present, and increasing the Association's reserve funding payments. Financial Condition of Association Reserve balances and interest rates reported by Association as of June 30, 2012; plus reserve contributions of $1,171 through December, Client has advised that the total reserves contribution for 2012 is $57,091. Special Assessments A special assessment is not indicated for this study. Study Method In this study, we have used the "component" method because it is the only method which allows scrutiny of the funding details. The method is pragmatic, and allows human judgment and experience to enter into the equation. Page 4 of 59 Pages

5 Vallarta Community Association Funding Study Summary - Continued Unless noted otherwise, the present cost of every reserve item in this report has been estimated using national standards and modified by an area cost adjustment factor. Where possible, known costs have been used. In addition, every reserve item has been given an estimated remaining useful life, an estimated useful life when new, and has been cast into the future to determine the inflated cost. Equal annual payments are calculated for each reserve item based upon a payment starting year and a payment ending year using the end of period payment method. Interest earned on accumulated reserve funds and taxes on the reserve interest are also calculated. Initial reserve funds are consumed as expenses occur until fully depleted, reducing annual reserve payments to a minimum. Summary of Findings Great Boards, LLC has estimated future projected expenses for Vallarta Community Association based upon preservation of existing improvements. The attached funding study is limited in scope to those expense items listed in the attached "Vallarta Community Association Reserve Study Expense Items". Expense items which have an expected life of more than 30 Years are not included in this reserve study unless payment for these long lived items occurs within the 30 Years of the reserve study envelope. Of primary concern is the preservation of a positive funding balance with funds sufficient to meet projected expenses throughout the study life. Based upon the attached funding study, it is our professional opinion that member monthly fees as shown in the attached "Vallarta Community Association Dues Summary" will realize this goal. Some reserve items in the "Vallarta Community Association Revenue Summary Table" may not contain payments. In this analysis the initial reserves were used to make annual payments for expense items in their order of occurrence until the initial reserve was consumed. As a result reserve items without payments may be expected, particularly in the first few years of the funding study. Reserve items that have been paid with initial reserve funds are identified with a [FP] in the Expense Items Sheets. An item marked [PR] is partially paid with initial reserve funds. Reserve Funding Status Funding positions for reserve accounts generally fall into three categories. Reserves balances that fall between zero and 30% are considered "weak" as the special assessment probability of 26 to 53% is high. The second category is reserves within the 30 to 70% range. This funding position is classified as "fair" as the projected special assessment requirement is in the 3.50 to 17.60% range. When a funding position is referred to as "strong," reserves are between 70 and 100%, the risk of special assessment drops to between 2.40 and 1%. As of December 31, 2012, reserves for Vallarta Community Association will be at an estimated percent funding level; and a projected 75.0% funding level at the end of Accordingly, reserves for Vallarta Community Association are anticipated to be strong, and by following the recommended funding plan, the Association will have adequate funds to meet projected repair and replacement expenses. Percent Funded Many reserve studies use the concept of "Percent Funded" to measure the reserve account balance against a theoretically perfect value. Percent Funded is often used as a measure of the "Financial Health" of an association. The assumption is, the higher the percentage, the greater the "Financial Health". The question of substance is simply: "How much is enough?" To answer the question, some understanding of Percent Funded is required. Percent Funded is the ratio of current cash reserves divided by the Fully Funded value at any instant in time. Fully Funded is defined as the Future Value, multiplied by the number of years used, divided by the expected life for the sum of all reserve items. In essence, Fully Funded is simply the total of the average net present value of the association improvements. Percent Funded is then, the current reserve balance divided by the Fully Funded value multiplied by 100 (to give a percentage). The concept is Page 5 of 59 Pages

6 Vallarta Community Association Funding Study Summary - Continued useful when the reserve study is comprehensive, but misleading when the reserve study is superficial or constrained. As a result, we recommend that the statement "Percent Funded" be used with caution. Keeping Your Reserve Study Current Great Boards, LLC believes that funding studies are an essential part of property management. People and property are constantly changing and evolving. As a result, the useful life of a funding study is at best a few years, and certainly not more than five years. This reserve study should be updated: At changes in interest rates At changes in inflation rates At changes in the number of dues paying members Before starting new improvements Before making changes to the property After a flood or fire After the change of ownership or management After annexation or incorporation. Items Beyond the Scope of this Report Items beyond the scope of this report include: Building or land appraisals for any purpose State or local zoning ordinance violations Building code violations Soils conditions, soils contamination or geological stability of site Engineering analysis or structural stability of site Air quality, asbestos, electromagnetic radiation, formaldehyde, lead, mercury, radon, water quality or other environmental hazards Invasions by pests, termites and any or all other destroying organisms, insects, birds, bats or animals to buildings or site--this study is not a pest inspection Adequacy or efficiency of any system or component on site Specifically excluded reserve items Septic systems and septic tanks Buried or concealed portions of swimming pools, pool liners, Jacuzzis and spas or similar items Items concealed by signs, carpets or other things are also excluded from this study Missing or omitted information supplied by client for the purposes of reserve study preparation Hidden improvements such as sewer lines, water lines, irrigation lines or other buried or concealed items Statement of Qualifications Kerry-Lynn Goto of Great Boards, LLC is a professional in the business of preparing reserve studies for community associations and is familiar with construction practices, construction costs, and contracting practices in the state of Arizona. The preparer of this reserve study is a CAI-certified Reserve Study Specialist. Conflict of Interest As the preparer of this reserve study, Great Boards, LLC certifies that it does not have any vested interests, financial interests, or other interests that would cause a conflict of interest in the preparation of this reserve study. This Reserve Study is a reflection of information provided to the reserve study preparer and created for the Association's use, not for the purpose of an audit, background checks of historical records, or forensic/quality analyses. Any on-site inspection is not a project audit or quality inspection. Page 6 of 59 Pages

7 Vallarta Community Association Funding Study Summary - Continued Great Boards, LLC would like to thank Vallarta Community Association for the opportunity to be of service in the preparation of the attached reserve study. Again, please feel free to call us at (602) or at info@greatboards.com with any questions. Prepared by: Kerry-Lynn Goto, RS Reserve Study Consultant Enclosures: 5 Pages of Photographs Attached APPENDIX "A" - Summary of Reserve Accounts Expense Summary for - Pool and Spa Deck Recoating Page 7 of 59 Pages

8 Vallarta Community Association Funding Study Summary - Continued Access Phone Gate Operator Typical Concrete Walkway Typical Asphalt Street Pool Area Wrought Iron Entryway Wrought Iron Gates Page 8 of 59 Pages

9 Vallarta Community Association Funding Study Summary - Continued Wall-mounted light fixture Bollard Light Fixture Wall-mounted mailboxes BBQ grill and countertop Elastomeric pool deck staining Pool chaise lounges Page 9 of 59 Pages

10 Vallarta Community Association Funding Study Summary - Continued Pool brunch table, chairs and fabric umbrella Pool tea table Concrete tables with benches Pool filter Pool Pool heater Page 10 of 59 Pages

11 Vallarta Community Association Funding Study Summary - Continued Pool pumps and motors Spa filter Spa Spa heater Spa pumps and motors Residential wall Page 11 of 59 Pages

12 Vallarta Community Association Funding Study Summary - Continued Residential wrought iron Page 12 of 59 Pages

13 Vallarta Community Association Funding Study Summary - Continued APPENDIX "A" Summary of Reserve Accounts Account Description Amount Interest Rate Statement Date Reserves - CAB Money Market $144, % June 30, 2012 Reserves - CAB Fixed CD $35, % June 30, 2012 Budgeted Reserve Deposits - June - $1, % December 31, 2012 Reserve Values Used : $181, % January 1, 2013 Initial reserve balances have been provided by client and have not been audited for use in this report. Evaluation of Initial Reserve Account: Reserve balances and interest rates reported by Association as of June 30, 2012; plus reserve contributions of $1,171 through December, Client has advised that the total reserves contribution for 2012 is $57,091. Initial reserve funds are contained in 3 seperate funding accounts. The future value of each account was calculated based upon the account interest rate and the number of elapsed days until the study start date (January 1, 2013). The future value of the accounts was totaled and the interest rates were blended to yield a weighted average interest rate of 0.34%. The implicit assumption has been made that the reserve accounts were not drawn down between the date of the known reserve balance and the study start date. Page 13 of 59 Pages

14 Vallarta Community Association Funding Study Summary - Continued Reserve Category - Staining on elastomeric pool deck Reserve Item - Pool and Spa Deck Recoating Unit Cost No Units Current Cost When New Expected Life When New Estimated Remaining Life Expense Year Estimated Future Cost 3 Years 2016 $9, $10,536 $1.75 / sf 4690 sf $8, Years 6 Years 2028 $12, $14, $16, $19,186 Client has advised that recoating maintenance was performed in Funding has been included for recoating of the pool's elastomeric deck surface on a 6-year cycle. Some staining was noted at the time of our site visit. Cost source: AFI Database Page 14 of 59 Pages

15 Vallarta Community Association Reserve Study Expense Item Summary Reserve Items Current Cost When New Estimated Remaining Life Expected Life When New First Cost Repeating Item? (D) Access Control Access Phone East Entry (D) Access Control Access Phone West Entry (D) Access Control Gate Operators East Entry (D) Access Control Gate Operators West Entry (D) Asphalt and Concrete Asphalt Cracksealing and Minor Repairs (D) Asphalt and Concrete Asphalt Overlay (D) Asphalt and Concrete Asphalt Sealcoating (D) Asphalt and Concrete Concrete Walkways Partial (D) Fencing and Gates Fencing Wrought Iron Pool (D) Fencing and Gates Gates Wrought Iron E. Entry (D) Fencing and Gates Gates Wrought Iron W. Entry (D) Landscaping and Irrigation Granite Replenishment Unfunded (D) Landscaping and Irrigation Irrigation Controllers $4,500 8 Years 15 Years $5,634 Yes $4,500 8 Years 15 Years $5,634 Yes $14,000 5 Years 12 Years $16,263 Yes $14,000 5 Years 12 Years $16,263 Yes $2,109 1 Years 4 Year $2,217 Yes $169, Years 28 Years $293,350 Yes $10,547 1 Years 4 Year $11,087 Yes $1,200 5 Years 10 Years $1,394 Yes $10, Years 30 Years $19,719 Yes $11, Years 30 Years $21,986 Yes $11, Years 30 Years $21,444 Yes $ Years 30 Years $0 No $7,470 8 Years 15 Years $9,353 Yes Page 15 of 59 Pages

16 Vallarta Community Association Funding Study Expense Item Summary - Continued Reserve Items Current Cost When New Estimated Remaining Life Expected Life When New First Cost Repeating Item? (D) Landscaping and Irrigation Irrigation System Unfunded (D) Landscaping and Irrigation Tree Trimming Unfunded (D) Lighting Bollards (D) Lighting Fixtures Wall Mounted (A) (D) Lighting Miscellaneous Unfunded (D) Mailboxes and Signage Mailboxes Wall Mounted (D) Mailboxes and Signage Monument Sign Unfunded (D) Mailboxes and Signage Street and Traffic Signs (D) Painting Common Area Buildings and Walls (D) Painting Stucco and Wrought ron at Entryways (D) Painting Wrought Iron Pool Area (D) Pool and Spa BBQ Grill and Countertop (D) Pool and Spa Deck Recoating (D) Pool and Spa Deck Resurfacing (D) Pool and Spa Furniture (D) Pool and Spa Furniture Restrapping $ Years 30 Years $0 No $ Years 30 Years $0 No $2, Years 2 Years $2,837 Yes $3, Years 25 Years $5,063 Yes $ Years 30 Years $0 No $16, Years 25 Years $26,133 Yes $250 3 Years 10 Years $276 Yes $400 0 Years 3 Years $410 Yes $5,500 1 Years 8 Year $5,782 Yes $1,500 1 Years 4 Year $1,577 Yes $2,000 1 Years 4 Year $2,102 No $2,500 8 Years 15 Years $3,130 Yes $8,208 3 Years 6 Years $9,070 Yes $18, Years 18 Years $26,612 Yes $16, Years 20 Years $21,466 Yes $2,995 0 Years 10 Years $3,071 Yes Page 16 of 59 Pages

17 Vallarta Community Association Funding Study Expense Item Summary - Continued Reserve Items Current Cost When New Estimated Remaining Life Expected Life When New First Cost Repeating Item? (D) Pool and Spa Pool Filter (D) Pool and Spa Pool Heater (D) Pool and Spa Pool Resurfacing (D) Pool and Spa Pumps and Motors (D) Pool and Spa Restrooms Remodeling (D) Pool and Spa Spa Filter (D) Pool and Spa Spa Heater (D) Pool and Spa Spa Resurfacing (D) Roofing Tile Underlayment Common Areas $950 0 Years 12 Years $974 Yes $2,700 1 Years 8 Year $2,838 Yes $12,238 5 Years 12 Years $14,216 Yes $2,000 3 Years 5 Years $2,210 Yes $7, Years 25 Years $11,251 Yes $750 0 Years 12 Years $769 Yes $2,200 1 Years 8 Year $2,313 Yes $2,529 5 Years 12 Years $2,938 Yes $1, Years 30 Years $3,107 No Residential (D) Lighting Fixtures Wall Mounted (B) (D) Painting Townhouses and Yard Walls Roofing Gutters and Downspouts Unfunded $4, Years 2 Years $7,275 Yes $119,000 2 Years 8 Years $128,258 Yes $ Years 30 Years $0 No Months Remaining in Calendar Year 2013: 12 Expected annual inflation: 2.50% Interest earned on reserve funds: 0.34% Initial Reserve: $181,862 (D) Indicates Tabulated Reserve Item Description. R e s e r v e I t e m D e s c r i p t i o n s Page 17 of 59 Pages

18 Vallarta Community Association Funding Study Expense Item Summary - Continued Category Reserve Item Name Reserve Item Description Access Control Access Phone East Entry funding for one "Sentex" hands-free entry access phone located at the community's east entry has been included on a 15-year cycle. Cost source: Park Pro Access Control Access Phone West Entry funding for one "Sentex" hands-free entry access phone located at the community's west entry has been included on a 15-year cycle. Cost source: Park Pro Access Control Gate Operators East Entry funding for four "Elite" model CSW200ULDC3 swing gate operators located at the community's east entryway has been included on a 12-year cycle. Cost source: Park Pro Access Control Gate Operators West Entry Asphalt and Concrete Asphalt Cracksealing and Minor Repairs funding for four "Elite" model CSW200ULDC3 swing gate operators located at the community's west entryway has been included on a 12-year cycle. Cost source: Park Pro Funding has been included for cracksealing and minor repairs in conjunction with each asphalt sealcoating cycle. The cost for this maintenance is typically 20% of the sealcoating price. Cost source: Ace Asphalt of Arizona This component consists of: Asphalt and Concrete Asphalt Overlay 95,880 - sq. ft. of 1.5" $1.50 sq. ft. 25 valve cover $325 ea. 32 manhole cover $450 ea. 1 - equipment $3,000 ea. Asphalt and Concrete Asphalt Sealcoating Cost source: Ace Asphalt of Arizona This component is for a continuous four year seal coating cycle commencing in For inventory purposes, this component consists of: 95,880 sq. ft. of asphalt $0.11 per sq. ft. Cost source: Ace Asphalt of Arizona Page 18 of 59 Pages

19 Vallarta Community Association Funding Study Expense Item Summary - Continued Category Reserve Item Name Reserve Item Description Although concrete walkways are designed to last the life of the project, some repairs will be required during the 30-year life of this study. Accordingly, we have included funding for repairs/replacements of: Asphalt and Concrete Concrete Walkways Partial 100 sq. ft. of concrete $12.00 sq. ft. on a 10-year cycle. Cost source: AFI Database Funding has been included for replacement of the pool area wrought iron fencing and gates on a 30-year cycle. For inventory purposes, this component consists of: Fencing and Gates Fencing Wrought Iron Pool lin. ft. of 5'0" wrought iron fencing $26.00 lin. ft. 1-5'6" x 3'3" wrought iron $20.00 sq. ft. 1-5'9" x 4'0" wrought iron $20.00 sq. ft. 1-6'0" x 3'2" wrought iron $20.00 sq. ft. 1-6'0" x 4'0" wrought iron $20.00 sq. ft. Fencing and Gates Gates Wrought Iron E. Entry Cost source: AFI Database Funding has been included for replacement of the following east entry wrought iron gates on a 30-year cycle: 4-8'4" x 11 '0" vehicle $32.00 sq. ft. Fencing and Gates Gates Wrought Iron W. Entry Cost source: AFI Database Funding has been included for replacement of the following west entry wrought iron gates on a 30-year cycle: 4-8'4" x 11 '0" vehicle $32.00 sq. ft. Cost source: AFI Database Landscaping and Irrigation Granite Replenishment Unfunded Funding has been excluded for periodic replenishment of common area granite as it is anticipated that this maintenance will be performed under the Association's annual operating budget. Page 19 of 59 Pages

20 Vallarta Community Association Funding Study Expense Item Summary - Continued Category Reserve Item Name Reserve Item Description Funding has been included for replacement of the following irrigation controllers on a 15-year cycle: Landscaping and Irrigation Irrigation Controllers 2 - Hunter ICC, 24 station $1,800 ea. 1 - Hunter ICC, 32 station $1,890 ea. 1 - Hunter ICC, 40 station $1,980 ea. Cost source: Sprinkler Warehouse Landscaping and Irrigation Irrigation System Unfunded Landscaping and Irrigation Tree Trimming Unfunded Funding has been excluded for replacement of underground irrigation lines as this is considered infrastructure that is designed to last the life of the project with routine repairs. If client wishes to include contingency funding for irrigation system replacement, please advise of a dollar amount and replacement year for inclusion in the final report. Funding has been excluded for tree trimming as this maintenance is generally performed on an annual basis under the Association's operating budget. This component is to replace: 58-3' high bollard light fixtures Lighting Bollards located at the community entryways, pool area, center walkway, and.at the ramada/tower structure. For purposes of this report, we have assumed replacement at the rate of 5 fixtures per year every 2 years commencing in Lighting Fixtures Wall Mounted (A) Lighting Miscellaneous Unfunded Mailboxes and Signage Mailboxes Wall Mounted Cost source: AFI Database Funding has been included for replacement of the wall-mounted lantern fixtures affixed to the pool building structures and at the community entryways. Cost source: AFI Database As with the prior reserve study report, funding has been excluded for replacement of ground level pagoda or spot lighting as it is anticipated that such replacements will be performed under the Association's annual operating budget. Funding has been included for replacement of the following wallmounted residential mailboxes: 8-2 x 5 box $1,070 ea. 7-7 box sets w/1 parcel $1,100 ea. Cost source: AFI Database Page 20 of 59 Pages

21 Vallarta Community Association Funding Study Expense Item Summary - Continued Category Reserve Item Name Reserve Item Description Mailboxes and Signage Monument Sign Unfunded No entry monument signage was noted at the time of our site visit. Funding in the amount of $400 every 3 years commencing in 2013 has been included for replacement of: Mailboxes and Signage Street and Traffic Signs 14 - street sign blades 8 - stop signs Some of the stop signs are beginning to fade from sun exposure. Funding has been included for painting of the following elements: 3 - Pool area buildings/structures (3) Pool equipment enclosure stucco walls Painting Buildings and Walls Stucco walls associated with the pool wrought iron fencing Common area,ramada/tower Because no measurements were provided in the prior reserve study report, we have relied upon the cost stated in that report. Painting Stucco and Wrought ron at Entryways Cost source: RDA Report, October 20, 2008 Funding has been included for painting of the entryway stucco walls and wrought iron gates. Because no measurements were provided in the prior reserve study report, we have relied upon the cost stated in that report. Cost source: RDA Report, October 20, 2008 Painting Wrought Iron Pool Area Funding has been included for painting of the pool area wrought iron fencing and gates. Because no measurements were provided in the prior reserve study report, we have relied upon the cost stated in that report. Cost source: RDA Report, October 20, 2008 Pool and Spa BBQ Grill and Countertop Funding has been included for replacement of the "Titanium X" built-in, gas BBQ grill and ceramic tile counter top. Because measurements were not included, we have used the cost indicated in the prior reserve study. Cost source: RDA Report, October 20, 2008 Page 21 of 59 Pages

22 Vallarta Community Association Funding Study Expense Item Summary - Continued Category Reserve Item Name Reserve Item Description Pool and Spa Deck Recoating Client has advised that recoating maintenance was performed in Funding has been included for recoating of the pool's elastomeric deck surface on a 6-year cycle. Some staining was noted at the time of our site visit. Cost source: AFI Database Pool and Spa Deck Resurfacing Funding has been included for resurfacing of the pool's elastomeric deck surface on an 18-year cycle. Cost source: AFI Database Funding has been included for replacement and/or refurbishment of the following pool area furniture on a 20-year cycle: Pool and Spa Furniture 15 - strapped, iron, chaise $650 ea strapped, iron, brunch $200 ea. 4 - faux-surface 42" diameter brunch 550 ea. 4 - faux-surface tea $125 ea. 4 - fabric $165 ea. Funding has been excluded for replacement of: 4-46" diameter concrete tables with 3 benches each 4 - concrete trash receptacles as it is anticipated that these furnishings will last the life of the project. Pool and Spa Furniture Restrapping Cost source: Elegant Outdoor Living, Inc. The chaise lounges appeared to be in worn condition at the time of our site visit. Restrapping should be performed in Funding has been included for this maintenance on a 10-year cycle, and includes: 15 - chaise $125 ea brunch 70 ea. Cost source: AFI Database Page 22 of 59 Pages

23 Vallarta Community Association Funding Study Expense Item Summary - Continued Category Reserve Item Name Reserve Item Description Funding has been included for replacement of: Pool and Spa Pool Filter 1 - "Pentair" Clean & Clear Plus, 520 sq. ft. cartridge $950 ea. on a 12-year cycle. Client has advised that this filter will be replaced in Cost source: B&L Pools Funding has been included for replacement of: Pool and Spa Pool Heater 1 - "Pentair" Minimax NT, 400,000 BTU pool $2,700 ea. Cost source: B&L Pools Funding for this component consists of: Pool and Spa Pool Resurfacing 2,220 - sq. ft. of internal pool $4.00 sq. ft lin. ft. of trim $12.40 lin. ft lin. ft. of bench $9.40 lin. ft. Cost source: AFI Database This funding is for future repair/replacement of Pool and Spa Pumps and Motors the pool and spa pumps and motors. Because no specifics were included regarding these pumps and motors, we have used the funding indicated in the prior reserve study report. Cost source: RDA Report, October 20, 2008 Pool and Spa Restrooms Remodeling This funding is for remodeling of the pool restroom interiors ona 25- year cycle. Remodeling includes replacement of wall tile, floor tile, doors, plumbing fixtures and interior painting. Cost source: RDA Report, October 20, 2008 Page 23 of 59 Pages

24 Vallarta Community Association Funding Study Expense Item Summary - Continued Category Reserve Item Name Reserve Item Description Funding has been included for replacement of: Pool and Spa Spa Filter 1 - "Pentair" Clean & Clear Plus, 240 sq. ft. cartridge $750 ea. on a 12-year cycle. Client has advised that this filter will be replaced in Cost source: B&L Pools Funding has been included for replacement of: Pool and Spa Spa Heater 1 - "Pentair" Minimax NT, 250,000 BTU pool $2,200 ea. Cost source: B&L Pools Funding for this 10' diameter spa includes: Pool and Spa Spa Resurfacing sq. ft. of spa $4.00 sq. ft lin. ft. of trim $12.40 lin. ft lin. ft. of behch $9.40 lin. ft. Cost source: AFI Database Roofing Tile Underlayment Common Areas Tile roof systems are generally designed to last the life of the project. However, at some point during the lifecycle it may become necessary to replace some of the tile underlayment. We have included funding for a one-time replacement of 30% of the total tile underlayment on the pool area buildings/structures and the common area ramada/tower. Cost source: AFI Database Funding has been included for replacement of the wall-mounted lantern light fixtures on the residential buildings. For inventory purposes, we have assumed: Residential Lighting Fixtures Wall Mounted (B) 2-Plex Buildings: 6 fixtures per buiding 3-Plex Buildings: 8 fixtures per building For purposes of this report, we have assumed replacement at a rate of 28 fixtures every 2 years commencing in Cost source: AFI Database Page 24 of 59 Pages

25 Vallarta Community Association Funding Study Expense Item Summary - Continued Category Reserve Item Name Reserve Item Description Funding has been included for painting of the townhouse exteriors and associated yard walls on an 8-year cycle. Because no measurements were provided in the prior reserve study report, we have relied upon the cost stated in that report. Residential Painting Townhouses and Yard Walls The costs indicated in the RDA Report are: 2-Plex Buildings: $5,750 ea. 3-Plex Buildings: $8,000 ea. Cost source: RDA Report, October 20, 2008 Page 25 of 59 Pages

26 Vallarta Community Association Reserve Study Expense Item Listing Reserve Items Unit Cost No Units Access Control Access Phone East Entry Access Control Access Phone West Entry Access Control Gate Operators East Entry Access Control Gate Operators West Entry Asphalt and Concrete Asphalt Cracksealing and Minor Repairs Asphalt and Concrete Asphalt Overlay Asphalt and Concrete Asphalt Sealcoating Current Cost When New $4,500 ea 1 $4,500 $4,500 ea 1 $4,500 $3,500 ea 4 $14,000 $3,500 ea 4 $14,000 $2,109 ea 1 $2,109 $169,345 ea 1 $169,345 $0.11 / sf sf $10,547 Estimated Remaining Life 8 Years 15 Years 8 Years 15 Years 5 Years 12 Years 5 Years 12 Years 1 Year 4 Year Expected Life When New 15 Years 15 Years 12 Years 12 Years 4 Years Calendar Year Estimated Future Cost 2021 $5, $8, $11, $5, $8, $11, $16, $21, $29, $16, $21, $29, $2, $2, $2, $2, $3, $3, $4, $4, Years 2034 $293, Years 28 Years 2062 $590,304 1 Year 4 Year 4 Years 2014 $11, $12, $13, $14, $16, $18, $20, $22,310 Asphalt and $12.00 / ft² 100 ft² $1,200 5 Years 10 Years 2018 $1,394 Page 26 of 59 Pages

27 Vallarta Community Association Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Asphalt and Concrete Concrete Walkways Current Cost When New Estimated Remaining Life Expected Life When New $12.00 / ft² 100 ft² $1, Years 10 Years Calendar Year Estimated Future Cost 2028 $1, $2, $2,949 Fencing and Gates Fencing Wrought Iron Pool Fencing and Gates Gates Wrought Iron E. Entry Fencing and Gates Gates Wrought Iron W. Entry $10,562 ea 1 $10,562 $2,944 ea 4 $11,776 $2,944 ea 4 $11, Years 2037 $19, Years 30 Years 2067 $41, Years 2037 $21, Years 30 Years 2067 $46, Years 2036 $21, Years 30 Years 2066 $45,361 Landscaping and Irrigation Granite Replenishment Unfunded $0.00 ea 1 $0 23 Years 30 Years 2036 $0 Landscaping and Irrigation Irrigation Controllers $7,470 ea 1 $7,470 8 Years 15 Years 15 Years 2021 $9, $13, $19,784 Landscaping and Irrigation Irrigation System Unfunded Landscaping and Irrigation Tree Trimming Unfunded $0.00 ea 1 $0 23 Years 30 Years 2036 $0 $0.00 ea 1 $0 23 Years 30 Years 2036 $0 Lighting Bollards $400 ea 5 $2, Years 2026 $2,837 2 Years 2 Years 2028 $2,982 Page 27 of 59 Pages

28 Vallarta Community Association Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Current Cost When New Estimated Remaining Life Expected Life When New Calendar Year Estimated Future Cost Lighting Bollards $400 ea 5 $2,000 2 Years 2 Years 2030 $3, $3, $3, $3, $3, $4, $4,231 Lighting Fixtures Wall Mounted (A) $150 ea 21 $3, Years 2031 $5, Years 25 Years 2056 $9,452 Lighting Miscellaneous Unfunded $0.00 ea 1 $0 23 Years 30 Years 2036 $0 Mailboxes and Signage Mailboxes Wall Mounted $16,260 ea 1 $16, Years 2031 $26, Years 25 Years 2056 $48,792 Mailboxes and Signage Monument Sign Unfunded $250 ea 1 $250 3 Years 10 Years 10 Years 2016 $ $ $ $584 0 Years 2013 $ $ $476 Mailboxes and Signage Street and Traffic Signs $400 ea 1 $400 3 Years 3 Years 2022 $ $ $ $ $ $ $ $868 Painting $5,500 ea 1 $5,500 1 Year 8 Years 2014 $5,782 Page 28 of 59 Pages

29 Vallarta Community Association Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Painting Buildings and Walls Painting Stucco and Wrought ron at Entryways Painting Wrought Iron Pool Area Pool and Spa BBQ Grill and Countertop Pool and Spa Deck Recoating Pool and Spa Deck Resurfacing Pool and Spa Furniture Pool and Spa Furniture Restrapping Current Cost When New Estimated Remaining Life Expected Life When New $5,500 ea 1 $5,500 8 Year 8 Years $1,500 ea 1 $1,500 1 Year 4 Year 4 Years Calendar Year Estimated Future Cost 2022 $7, $8, $10, $12, $1, $1, $1, $2, $2, $2, $2, $3,173 $2,000 ea 1 $2,000 1 Year 4 Years 2014 $2,102 $2,500 ea 1 $2,500 $1.75 / sf 4690 sf $8,208 $4.00 / sf 4690 sf $18,760 $16,310 ea 1 $16,310 $2,995 ea 1 $2,995 8 Years 15 Years 3 Years 6 Years 15 Years 6 Years 2021 $3, $4, $6, $9, $10, $12, $14, $16, $19, Years 2026 $26, Years 18 Years 2044 $41, Years 2023 $21, Years 20 Years 2043 $35,374 0 Years 10 Years 10 Years 2013 $3, $3, $5, $6,496 Page 29 of 59 Pages

30 Vallarta Community Association Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Pool and Spa Pool Filter Pool and Spa Pool Heater Pool and Spa Pool Resurfacing Pool and Spa Pumps and Motors Pool and Spa Restrooms Remodeling Pool and Spa Spa Filter Pool and Spa Spa Heater Pool and Spa Spa Current Cost When New $950 ea 1 $950 $2,700 ea 1 $2,700 $12,238 ea 1 $12,238 $2,000 ea 1 $2,000 $7,000 ea 1 $7,000 $750 ea 1 $750 $2,200 ea 1 $2,200 $2,529 ea 1 $2,529 Expected Estimated Life Calendar Estimated Remaining When Year Future Cost Life New 0 Years 2013 $ $1, Years 12 Years 2037 $1, $2,393 1 Year 2014 $2, $3,466 8 Year 8 Years 2030 $4, $5, $6,311 5 Years 2018 $14, Years 12 Years 2030 $19, $25,888 3 Years 2016 $2, $2, $2,837 5 Years 5 Years 2031 $3, $3, $4, $4, Years 2031 $11, Years 25 Years 2056 $21,005 0 Years 2013 $ $1, Years 12 Years 2037 $1, $1,890 1 Year 2014 $2, $2,824 8 Year 8 Years 2030 $3, $4, $5,143 5 Years 2018 $2, Years 12 Years 2030 $3,964 Page 30 of 59 Pages

31 Vallarta Community Association Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Current Cost When New Estimated Remaining Life Expected Life When New Calendar Year Estimated Future Cost Pool and Spa $2,529 ea 1 $2, Years 12 Years 2042 $5,350 Roofing Tile Underlayment s $3.25 / sf 525 sf $1, Years 30 Years 2036 $3,107 Residential 21 Years 2034 $7,275 Lighting Fixtures Wall Mounted (B) $150 ea 28 $4,200 2 Years 2 Years 2036 $7, $8, $8, $8,884 2 Years 2015 $128,258 Painting Townhouses and Yard Walls $119,000 ea 1 $119,000 8 Years 8 Years 2023 $156, $191, $233, $285,206 Roofing Gutters and Downspouts Unfunded $0.00 ea 1 $0 23 Years 30 Years 2036 $0 Months Remaining in Calendar Year 2013: 12 Expected annual inflation: 2.50% Interest earned on reserve funds: 0.34% Initial Reserve: $181,862 Page 31 of 59 Pages

32 Vallarta Community Association Funding Study Modified Cash Flow Analysis Calendar Annual Annual Annual Annual Net Reserve Year Payment Interest Expenses Income Tax Funds % Funded 2013 $57,091 $707 $5,224 $212 $234, % 2014 $57,091 $885 $27,916 $266 $264, % 2015 $57,091 $987 $128,258 $296 $193, % 2016 $57,091 $747 $11,998 $224 $239, % 2017 $57,091 $902 $271 $296, % 2018 $57,091 $1,098 $67,519 $330 $287, % 2019 $57,091 $1,066 $476 $320 $344, % 2020 $57,091 $1,261 $378 $402, % 2021 $57,091 $1,458 $26,255 $437 $434, % 2022 $57,091 $1,566 $42,571 $470 $450, % 2023 $57,091 $1,619 $182,031 $486 $326, % 2024 $57,091 $1,198 $359 $384, % 2025 $57,091 $1,395 $2,905 $419 $439, % 2026 $57,091 $1,583 $52,722 $475 $444, % 2027 $57,091 $1,601 $480 $503, % 2028 $57,091 $1,799 $17,607 $540 $543, % 2029 $57,091 $1,938 $581 $602, % 2030 $57,091 $2,137 $108,669 $641 $552, % 2031 $69,284 $1,985 $237,563 $596 $385, % 2032 $69,284 $1,418 $3,296 $425 $452, % 2033 $69,284 $1,646 $5,060 $494 $517, % 2034 $69,284 $1,868 $343,522 $560 $244, % 2035 $69,284 $940 $282 $314, % 2036 $69,284 $1,178 $74,482 $353 $310, % 2037 $69,284 $1,163 $45,626 $349 $334, % 2038 $69,284 $1,246 $61,171 $374 $343, % 2039 $69,284 $1,277 $233,556 $383 $180, % 2040 $69,284 $721 $29,797 $216 $220, % 2041 $69,284 $857 $4,126 $257 $286, % 2042 $69,284 $1,081 $133,527 $324 $222, % 2043 $69,284 $865 $42,737 $259 $249, % Totals : $1,928,330 $40,190 $1,888,615 $12,057 The cash distribution shown in this table applies to repair and replacment cash reserves only. Basis of Funding Study - Modified Cash Flow Cash reserves have been set to a minimum of $0 Cash Flow has been modified with the forced Fixed Payments. Months Remaining in Calendar Year 2013: 12 Inflation = 2.50 % Interest = 0.34 % Study Life = 30 years Initial Reserve Funds = $181, Final Reserve Value = $249, Annual Payments Held Constant for 25 years Page 32 of 59 Pages

33 Vallarta Community Association Funding Study Cash Flow by Calendar Year - Continued Cash Reserves in Thousands of Dollars Calendar Years 110% 100% 80% Percent Funded Percent Funded Cash Reserves Expenses $0 Minimum Cash Reserve Page 33 of 59 Pages 60% 40% 20% 0%

34 Vallarta Community Association Modified Reserve Dues Summary Projected Dues by Month and by Calendar Year Calendar Year Member Monthly Operations Payment Member Monthly Reserve Payment Member Total Monthly Payment Member Total Annual Payment Monthly Reserve Payment Annual Reserve Payment 2013 NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $44.46 $44.46 $ $4,758 $57, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69, NA $53.96 $53.96 $ $5,774 $69,284 Dues Summary has been modified with forced Fixed Payments. In the context of the Reserve Payment Summary, the ''Annual Reserve Payment'' corresponds with the ''Annual Revenue'' in the Cash Flow report. Page 34 of 59 Pages

35 Vallarta Community Association Funding Study Payment Summary by Calendar Year - Continued Number of Payment Months in Calendar Year 2013: 12 Number of Years of Constant Payments: 25 No of Dues Paying Members: 107 Page 35 of 59 Pages

36 Vallarta Community Association Funding Unadjusted Revenue by Calendar Year Item Name Reserve Category : Lighting Fixtures Wall Mounted (B) $319 $319 $319 $319 $319 $319 $319 $319 $319 $319 $319 $319 $319 $319 Painting Townhouses and Yard Walls $42,541 $42,541 $42,541 $19,316 $19,316 $19,316 $19,316 $19,316 $19,316 $19,316 $19,316 $23,587 $23,587 $23,587 Roofing Gutters and Downspouts Unfunded $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Residential Subtotal : $42,860 $42,860 $42,860 $19,635 $19,635 $19,635 $19,635 $19,635 $19,635 $19,635 $19,635 $23,906 $23,906 $23,906 Reserve Category : Residential Access Control Access Phone East Entry $617 $617 $617 $617 $617 $617 $617 $617 $617 $533 $533 $533 $533 $533 Access Control Access Phone West Entry $617 $617 $617 $617 $617 $617 $617 $617 $617 $533 $533 $533 $533 $533 Access Control Gate Operators East Entry $2,683 $2,683 $2,683 $2,683 $2,683 $2,683 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 Access Control Gate Operators West Entry $2,683 $2,683 $2,683 $2,683 $2,683 $2,683 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 $1,792 Asphalt and Concrete Asphalt Cracksealing and Minor Repairs $1,105 $1,105 $608 $608 $608 $608 $672 $672 $672 $672 $743 $743 $743 $743 Asphalt and Concrete Asphalt Overlay $12,843 $12,843 $12,843 $12,843 $12,843 $12,843 $12,843 $12,843 $12,843 $12,843 $12,843 $12,843 $12,843 $12,843 Asphalt and Concrete Asphalt Sealcoating $5,525 $5,525 $3,043 $3,043 $3,043 $3,043 $3,362 $3,362 $3,362 $3,362 $3,715 $3,715 $3,715 $3,715 Payments made with Initial Reserves Unadjusted Revenue does not include earned interest, tax adjustments, or salvage. Page 36 of 59 Pages

37 Vallarta Community Association Funding Unadjusted Revenue by Calendar Year - Continued Item Name Asphalt and Concrete Concrete Walkways Partial $230 $230 $230 $230 $230 $230 $176 $176 $176 $176 $176 $176 $176 $176 Fencing and Gates Fencing Wrought Iron Pool $756 $756 $756 $756 $756 $756 $756 $756 $756 $756 $756 $756 $756 $756 Fencing and Gates Gates Wrought Iron E. Entry $843 $843 $843 $843 $843 $843 $843 $843 $843 $843 $843 $843 $843 $843 Fencing and Gates Gates Wrought Iron W. Entry $858 $858 $858 $858 $858 $858 $858 $858 $858 $858 $858 $858 $858 $858 Landscaping and Irrigation Granite Replenishment Unfunded $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Landscaping and Irrigation Irrigation Controllers $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $1,024 $884 $884 $884 $884 $884 Landscaping and Irrigation Irrigation System Unfunded $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Landscaping and Irrigation Tree Trimming Unfunded $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Lighting Bollards $198 $198 $198 $198 $198 $198 $198 $198 $198 $198 $198 $198 $198 $198 Lighting Fixtures Wall Mounted (A) $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 $258 Lighting Miscellaneous Unfunded $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Payments made with Initial Reserves Unadjusted Revenue does not include earned interest, tax adjustments, or salvage. Page 37 of 59 Pages

38 Vallarta Community Association Funding Unadjusted Revenue by Calendar Year - Continued Item Name Mailboxes and Signage Mailboxes Wall Mounted $1,332 $1,332 $1,332 $1,332 $1,332 $1,332 $1,332 $1,332 $1,332 $1,332 $1,332 $1,332 $1,332 $1,332 Mailboxes and Signage Monument Sign Unfunded $69 $69 $69 $69 $35 $35 $35 $35 $35 $35 $35 $35 $35 $35 Mailboxes and Signage Street and Traffic Signs $409 $147 $147 $147 $158 $158 $158 $170 $170 $170 $184 $184 $184 $198 Painting Common Area Buildings and Walls $2,881 $2,881 $871 $871 $871 $871 $871 $871 $871 $871 $1,063 $1,063 $1,063 $1,063 Painting Stucco and Wrought ron at Entryways $786 $786 $433 $433 $433 $433 $478 $478 $478 $478 $528 $528 $528 $528 Painting Wrought Iron Pool Area $1,048 $1,048 Pool and Spa BBQ Grill and Countertop $343 $343 $343 $343 $343 $343 $343 $343 $343 $296 $296 $296 $296 $296 Pool and Spa Deck Recoating $2,252 $2,252 $2,252 $2,252 $1,738 $1,738 $1,738 $1,738 $1,738 $1,738 $2,019 $2,019 $2,019 $2,019 Pool and Spa Deck Resurfacing $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 $1,856 Pool and Spa Furniture $1,916 $1,916 $1,916 $1,916 $1,916 $1,916 $1,916 $1,916 $1,916 $1,916 $1,916 $1,709 $1,709 $1,709 Pool and Spa Furniture Restrapping $3,066 $388 $388 $388 $388 $388 $388 $388 $388 $388 $388 $498 $498 $498 Pool and Spa Pool Filter $973 $107 $107 $107 $107 $107 $107 $107 $107 $107 $107 $107 $107 $145 Payments made with Initial Reserves Unadjusted Revenue does not include earned interest, tax adjustments, or salvage. Page 38 of 59 Pages

39 Vallarta Community Association Funding Unadjusted Revenue by Calendar Year - Continued Item Name Pool and Spa Pool Heater $1,415 $1,415 $427 $427 $427 $427 $427 $427 $427 $427 $522 $522 $522 $522 Pool and Spa Pool Resurfacing $2,346 $2,346 $2,346 $2,346 $2,346 $2,346 $1,567 $1,567 $1,567 $1,567 $1,567 $1,567 $1,567 $1,567 Pool and Spa Pumps and Motors $549 $549 $549 $549 $497 $497 $497 $497 $497 $563 $563 $563 $563 $563 Pool and Spa Restrooms Remodeling $573 $573 $573 $573 $573 $573 $573 $573 $573 $573 $573 $573 $573 $573 Pool and Spa Spa Filter $768 $85 $85 $85 $85 $85 $85 $85 $85 $85 $85 $85 $85 $114 Pool and Spa Spa Heater $1,153 $1,153 $348 $348 $348 $348 $348 $348 $348 $348 $425 $425 $425 $425 Pool and Spa Spa Resurfacing $485 $485 $485 $485 $485 $485 $324 $324 $324 $324 $324 $324 $324 $324 Roofing Tile Underlayment s $124 $124 $124 $124 $124 $124 $124 $124 $124 $124 $124 $124 $124 $124 Subtotal : $54,584 $50,095 $41,912 $41,912 $41,323 $41,323 $38,975 $38,987 $38,987 $38,698 $39,831 $39,734 $39,734 $39,815 Total Revenue : $97,441 $92,951 $84,769 $61,543 $60,955 $60,955 $58,607 $58,619 $58,619 $58,331 $59,463 $63,639 $63,639 $63,720 Payments made with Initial Reserves Unadjusted Revenue does not include earned interest, tax adjustments, or salvage. Page 39 of 59 Pages