Fieldstone RESERVE STUDY UPDATE. John D. Beatty & Company OWNERS ASSOCIATION. for. Date Prepared: 12/4/2018 for fiscal year 2019.

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RESERVE STUDY UPDATE for Fieldstone OWNERS ASSOCIATION Date Prepared: 12/4/2018 for fiscal year 2019 Prepared By: John D. Beatty & Company 8425 Brentwood Blvd., Suite A7 Brentwood, CA 94513 (925) 831-1803 Fax (925) 831-2493

Contents Reserve Study Pages Introduction 1 Findings and Disclosures 2 Projected Expenditures 3-8 Funding Plan 9-11 Component Quantification 12-13 Accrued Liability 14-15 Copyright 1996-2018 John D. Beatty & Company

Reserve Study Update This report documents the results of a reserve study performed by John D. Beatty & Company for the following: Fieldstone Owners Association Murphys, California It provides an analysis of the repair and replacement requirements for the association's major components and recommends a funding plan to meet those obligations. This study was performed in compliance with California Civil Code sections 4178, 5300, 5550, 5560 & 5565. The intent of this legislation is to insure that the association maintains a plan to meet all future obligations for major component maintenance. The essential elements of this legislation are: 1. Identification of the major components which the association is obligated to maintain 2. Current estimate of the useful life of each component 3. Current estimate of the remaining life of each component 4. Current estimate of the replacement cost of each component 5. Current estimate of the total annual contribution necessary to maintain the major components 6. Current estimate of the amount of cash reserves necessary to maintain the major components 7. Disclosure of the current amount of accumulated cash reserves actually funded 8. Disclosure of the percentage of reserves actually funded 9. Disclosure of any determined or anticipated special assessments 10. A general statement of methodology SCOPE This study is aligned with the association's fiscal year and establishes January 1, 2019 through December 31, 2048 as the period of time for which reserve expenditures and reserve fund balances are projected. METHODOLOGY A cash flow methodology was used to determine the annual reserve contribution. The underlying premise of this reserve funding approach is to establish a contribution level that will allow the association to maintain a positive balance in the reserve fund while meeting all anticipated maintenance obligations. The cash flow method allows the association to achieve this goal without the unnecessary overfunding of reserves. Also, as the interest earned on the reserve fund will not totally offset inflation, projections were made using the current inflation factor and an average interest rate on fully insured certificates of deposit. In preparing this study, a comprehensive list of major components was developed and information was compiled on the type, number, age and cost of each of these components. In gathering this data, certain assumptions were made about costs, conditions, and future events and circumstances that may occur. Some assumptions inevitably will not materialize and unanticipated events and circumstances may occur subsequent to the date of this report. Therefore, the actual replacement costs and remaining lives may vary from this report and the variations could be material. All life expectancies were based on reasonable industry experience for equipment and material and, unless specifically noted, all components were in a reasonable and ordinary condition. No inspection was conducted of the major components. Information utilized to update the reserve study was obtained from management and the association s records. 12/4/2018 Page 1 Fieldstone Jan 2019 RSUb

For a component to be included in this study, the following criteria must be met: 1. The maintenance of the component is the responsibility of the association; 2. The maintenance of the component is not included in the annual operating budget; 3. The estimated useful life of the component is greater than one year; and 4. The estimated remaining life of the component is less than 30 years. This study is intended to reflect the estimated replacement cost of the components and is not intended to project the actual cost of the work when performed. This limitation is necessary, as it is virtually impossible to predict with any degree of certainty the myriad factors that will impact costs at a future date. Because of this qualification, it is necessary for the results of this study to be reviewed annually to reflect any meaningful changes in use or significant increases in labor and/or materials costs. The funding for this study has a threshold margin of 10%. This means that the projected ending balance for each fiscal year is at least 10% of the projected expenditures for the same year. This margin provides a contingency for any unforeseen or out of the ordinary repair or replacement expense. Additionally, it can be used in subsequent years as a source of funds for reallocation of the life cycles should the aging of any components be abnormally accelerated. FINDINGS The findings of this study indicate that it will be necessary to adjust the annual reserve contribution as indicated on pages 9-11 of this report in order to meet projected expenditures and keep pace with inflation. These findings are based on the following: DISCLOSURES 1. Projected reserve fund balance as of January 1, 2019 $ 534,387 2. Reserve contribution for fiscal year 2018 $ 65,400 3. Reserve contribution for fiscal year 2019 $ 72,986 4. Assumed annual inflation rate 3.0% 5. All "after tax" interest earned on reserve fund investments will be retained in the reserve fund. This plan provides adequate funds to meet projected expenditures without relying on special assessments or increases in regular assessments that require a vote of the membership. Based on the assumption that the association will fund reserves in accordance with this plan, which includes those increases indicated above, the percent funded was calculated in the following manner: Accumulated Cash Reserves (Numerator) Projected reserve fund balance as of January 1, 2019 $ 534,387 Accrued Liability (Denominator) (Refer to page 15 of this report) Estimate of the amount of cash necessary to repair, replace, restore or maintain the association's major components as of January 1, 2019 $ 866,666 Percent Funded 62% This Reserve Study was reviewed and approved by the Association's Board of Directors. 12/4/2018 Page 2 Fieldstone Jan 2019 RSUb

Projected Expenditures Current Estimated Fiscal Year (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Repair Repr/Repl Usfl Rmng Jan 1.. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 % Cost Life Life Dec 31.. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 BUILDING EXTERIOR: 1 - Awning Replace 1,093 15 4 1,194 2 - Door Replace 2,131 20 7 2,544 3 - Stucco Paint NOTE: Per BOD they choose not to paint the stucco as they have colored stucco. 4 - Stucco Repr/Repl NOTE: Individual owners are responsible for the maint of this component. 5 - Tile Shower Repair 10% 64 10 1 64 6 - Wood & Trim Paint/Touch Up 25,750 5 1 25,750 29,851 7 - Wood & Trim Paint 50,918 5 3 54,019 62,622 8 - Wood & Trim Repr/Repl 2% 16,011 10 8 19,691 9 - Wood Railing Paint NOTE: Paint cost included in Wood & Trim Paint line. 10 - Wood Railing Repr/Repl 5% 2,059 10 8 2,533 BUILDING INTERIOR: 11 - Remodel Restrooms & Shower 7,957 25 12 12 - Restroom Paint 630 10 8 775 FENCING/WALL: 13 - Masonry Wall Repr/Repl 10% 8,661 10 3 9,188 14 - Masonry Retaining Wall Repr/Re 10% 6,145 10 3 6,520 15 - Wood Fence Stain - Res 25,884 6 2 26,660 31,834 16 - Wood Fence Repr/Repl - Res 5% 6,614 12 2 6,812 17 - Wood Fence Replace - Res 132,280 24 14 18 - Wood Fence Stain - Pool 2,858 6 2 2,943 3,515 19 - Wood Fence Repr/Repl - Pool 5% 730 12 2 752 20 - Wood Fence Replace - Pool 14,604 24 14 21 - Wrought Iron Fence Paint - Pool 3,240 5 3 3,437 3,985 22 - Wrought Iron Fence Repr/Repl - P 5% 555 10 8 682 23 - Wrought Iron Fence Replace 11,092 25 13 FURNISHINGS: 24 - WI Chaise Lounge Replace 506 10 1 506 25 - WI Table Replace 1,182 10 1 1,182 26 - Plastic Chair Replace 507 5 1 507 587 27 - Chaise Lounge Replace 1,351 5 1 1,351 1,566 28 - WI Chair Replace 2,026 10 1 2,026 LANDSCAPING: 29 - Irrigation Timer Replace - Front 11% 4,355 5 2 4,486 5,200 30 - Irrigation Valve Replace 9% 1,784 2 0 1,784 1,892 2,007 2,130 2,259 31 - Plant Stock Replenish 2,652 1 1 2,652 2,732 2,814 2,898 2,985 3,075 3,167 3,262 3,360 3,461 32 - Tree Trimming/Add/Removal NOTE: Funding is handled via the association's operating budget. LIGHTING: 33 - Bollard Light Replace 3,715 20 7 4,436 34 - Fluorescent Fixture Replace 208 25 12 35 - Lantern Fixture Replace 656 20 7 783 36 - Spot Light Fixture Replace 219 25 12 12/4/2018 Page 3 Fieldstone Jan 2019 RSUb

Projected Expenditures Current Estimated Fiscal Year (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Repair Repr/Repl Usfl Rmng Jan 1.. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 % Cost Life Life Dec 31.. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 PAVED SURFACES: 37 - Asphalt Overlay 97,395 25 16 38 - Asphalt Major Repair 10% 20,814 10 1 20,814 39 - Asphalt Sealcoat & Repair 11,865 5 1 11,865 13,755 40 - Asphalt Striping 983 5 1 983 1,140 41 - Concrete Sidewalk,Curb&Gutter 2% 8,749 5 1 8,749 10,143 42 - Concrete Driveway Repr/Repl 2% 19,672 5 1 19,672 22,806 43 - Concrete Pool Deck Repr/Repl 3% 3,525 5 1 3,525 4,087 44 - Concrete Pool Deck Replace 117,504 30 17 RECREATIONAL FACITILITES: 45 - Chlorinator Replace 4,456 5 1 4,456 5,165 46 - Filter Replace 1,437 8 1 1,437 1,820 47 - Heater Replace 1,858 10 7 2,218 48 - Pump Motor 2hp Replace 2,087 7 2 2,149 2,643 49 - Pump Motor 1hp Replace 869 7 2 896 1,101 50 - Resurface Pool 16,635 10 9 21,072 51 - Tile & Coping Replace 6,159 10 9 7,803 ROOFING SYSTEM: 52 - Composition Roof Replace 880,341 30 17 53 - Metal Roof Replace - Pool 4,500 50 37 54 - Metal Roof Replace - BBQ 9,750 50 37 55 - Gutter & Downspout Replace 200,369 25 12 56 - Gutter Guard Replace 6,139 25 20 57 - Gutter Guard Replace 22,098 10 6 25,618 58 - Gutter Guard Replace 31,456 10 7 37,560 59 - Gutter Guard Replace 31,456 10 8 38,687 60 - Roof Inspection & Repair 13,640 5 1 13,640 15,812 OTHER: 61 - BBQ Replace 1,910 10 8 2,349 62 - Drinking Fountain Replace 1,351 18 5 1,520 63 - Refrigerator Replace 675 8 1 675 855 64 - Message Board Replace 328 25 12 65 - Mailbox Cluster Replace NOTE: United States postal service maintains this component. 66 - Storm Drain Maintenance 67 - Wood Trellis/Arbor Stain 835 5 3 886 1,027 68 - Wood Trellis/Arbor Repr/Repl 10% 2,402 10 8 2,954 69 - Wood Trellis/Arbor Replace 24,021 25 13 70 - Monument Signage 1,311 10 1 1,311 71 - Governing Doc Revisions 7,752 10 1 7,752 72 - Reserve Study Update 400 1 1 400 412 424 437 450 464 478 492 507 522 73 - Reserve Study Update Inspection 1,030 3 1 1,030 1,126 1,230 1,344 UNSCHEDULED... 5% 3,649 1 1 3,649 4,073 4,545 5,072 5,661 6,317 7,050 7,868 8,781 9,799 TOTAL EXPENDITURES 1,897,855 135,781 51,915 83,725 10,727 12,623 140,386 66,796 182,275 50,202 15,126 12/4/2018 Page 4 Fieldstone Jan 2019 RSUb

Projected Expenditures Current Estimated Fiscal Year Repair Repr/Repl Usfl Rmng Jan 1.. % Cost Life Life Dec 31.. (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 BUILDING EXTERIOR: 1 - Awning Replace 1,093 15 4 2 - Door Replace 2,131 20 7 3 - Stucco Paint 4 - Stucco Repr/Repl 5 - Tile Shower Repair 10% 64 10 1 6 - Wood & Trim Paint/Touch Up 25,750 5 1 7 - Wood & Trim Paint 50,918 5 3 8 - Wood & Trim Repr/Repl 2% 16,011 10 8 9 - Wood Railing Paint 10 - Wood Railing Repr/Repl 5% 2,059 10 8 BUILDING INTERIOR: 11 - Remodel Restrooms & Shower 7,957 25 12 12 - Restroom Paint 630 10 8 FENCING/WALL: 13 - Masonry Wall Repr/Repl 10% 8,661 10 3 14 - Masonry Retaining Wall Repr/Re 10% 6,145 10 3 15 - Wood Fence Stain - Res 25,884 6 2 16 - Wood Fence Repr/Repl - Res 5% 6,614 12 2 17 - Wood Fence Replace - Res 132,280 24 14 18 - Wood Fence Stain - Pool 2,858 6 2 19 - Wood Fence Repr/Repl - Pool 5% 730 12 2 20 - Wood Fence Replace - Pool 14,604 24 14 21 - Wrought Iron Fence Paint - Pool 3,240 5 3 22 - Wrought Iron Fence Repr/Repl - P 5% 555 10 8 23 - Wrought Iron Fence Replace 11,092 25 13 FURNISHINGS: 24 - WI Chaise Lounge Replace 506 10 1 25 - WI Table Replace 1,182 10 1 26 - Plastic Chair Replace 507 5 1 27 - Chaise Lounge Replace 1,351 5 1 28 - WI Chair Replace 2,026 10 1 LANDSCAPING: 29 - Irrigation Timer Replace - Front 11% 4,355 5 2 30 - Irrigation Valve Replace 9% 1,784 2 0 31 - Plant Stock Replenish 2,652 1 1 32 - Tree Trimming/Add/Removal LIGHTING: 33 - Bollard Light Replace 3,715 20 7 34 - Fluorescent Fixture Replace 208 25 12 35 - Lantern Fixture Replace 656 20 7 36 - Spot Light Fixture Replace 219 25 12 NOTE: Per BOD they choose not to paint the stucco as they have colored stucco. NOTE: Individual owners are responsible for the maint of this component. 86 34,606 40,118 72,596 84,159 26,463 NOTE: Paint cost included in Wood & Trim Paint line. 3,404 11,014 1,041 1,860 12,348 8,762 38,011 45,387 9,713 194,258 4,197 5,011 1,072 21,447 4,619 5,355 917 15,814 681 1,588 681 789 1,815 2,104 2,723 6,029 6,989 2,397 2,543 2,698 2,862 3,036 3,564 3,671 3,781 3,895 4,012 4,132 4,256 4,384 4,515 4,651 NOTE: Funding is handled via the association's operating budget. 287 303 12/4/2018 Page 5 Fieldstone Jan 2019 RSUb

Projected Expenditures Current Estimated Fiscal Year Repair Repr/Repl Usfl Rmng Jan 1.. % Cost Life Life Dec 31.. (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 PAVED SURFACES: 37 - Asphalt Overlay 97,395 25 16 38 - Asphalt Major Repair 10% 20,814 10 1 39 - Asphalt Sealcoat & Repair 11,865 5 1 40 - Asphalt Striping 983 5 1 41 - Concrete Sidewalk,Curb&Gutter 2% 8,749 5 1 42 - Concrete Driveway Repr/Repl 2% 19,672 5 1 43 - Concrete Pool Deck Repr/Repl 3% 3,525 5 1 44 - Concrete Pool Deck Replace 117,504 30 17 RECREATIONAL FACITILITES: 45 - Chlorinator Replace 4,456 5 1 46 - Filter Replace 1,437 8 1 47 - Heater Replace 1,858 10 7 48 - Pump Motor 2hp Replace 2,087 7 2 49 - Pump Motor 1hp Replace 869 7 2 50 - Resurface Pool 16,635 10 9 51 - Tile & Coping Replace 6,159 10 9 ROOFING SYSTEM: 52 - Composition Roof Replace 880,341 30 17 53 - Metal Roof Replace - Pool 4,500 50 37 54 - Metal Roof Replace - BBQ 9,750 50 37 55 - Gutter & Downspout Replace 200,369 25 12 56 - Gutter Guard Replace 6,139 25 20 57 - Gutter Guard Replace 22,098 10 6 58 - Gutter Guard Replace 31,456 10 7 59 - Gutter Guard Replace 31,456 10 8 60 - Roof Inspection & Repair 13,640 5 1 OTHER: 61 - BBQ Replace 1,910 10 8 62 - Drinking Fountain Replace 1,351 18 5 63 - Refrigerator Replace 675 8 1 64 - Message Board Replace 328 25 12 65 - Mailbox Cluster Replace 66 - Storm Drain Maintenance 67 - Wood Trellis/Arbor Stain 835 5 3 68 - Wood Trellis/Arbor Repr/Repl 10% 2,402 10 8 69 - Wood Trellis/Arbor Replace 24,021 25 13 70 - Monument Signage 1,311 10 1 71 - Governing Doc Revisions 7,752 10 1 72 - Reserve Study Update 400 1 1 73 - Reserve Study Update Inspection 1,030 3 1 UNSCHEDULED... 5% 3,649 1 1 TOTAL EXPENDITURES 1,897,855 151,738 27,972 15,946 18,486 1,322 1,532 11,759 13,631 26,438 30,649 4,737 5,492 5,988 6,942 277,357 3,251 1,355 34,428 18,331 21,251 454 NOTE: United States postal service maintains this component. 188,559 2,306 2,981 1,412,689 50,477 1,084 51,992 3,156 28,319 10,486 10,764 1,191 1,381 3,970 34,248 1,762 10,418 538 554 570 587 605 623 642 661 681 701 1,469 1,605 1,754 10,936 12,204 13,620 15,200 16,963 18,931 21,127 7,606 7,819 8,038 184,287 311,873 171,562 288,380 24,278 357,056 1,693,972 194,489 58,470 74,552 12/4/2018 Page 6 Fieldstone Jan 2019 RSUb

Projected Expenditures Current Estimated Fiscal Year Repair Repr/Repl Usfl Rmng Jan 1.. % Cost Life Life Dec 31.. (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 BUILDING EXTERIOR: 1 - Awning Replace 1,093 15 4 2 - Door Replace 2,131 20 7 3 - Stucco Paint 4 - Stucco Repr/Repl 5 - Tile Shower Repair 10% 64 10 1 6 - Wood & Trim Paint/Touch Up 25,750 5 1 7 - Wood & Trim Paint 50,918 5 3 8 - Wood & Trim Repr/Repl 2% 16,011 10 8 9 - Wood Railing Paint 10 - Wood Railing Repr/Repl 5% 2,059 10 8 BUILDING INTERIOR: 11 - Remodel Restrooms & Shower 7,957 25 12 12 - Restroom Paint 630 10 8 FENCING/WALL: 13 - Masonry Wall Repr/Repl 10% 8,661 10 3 14 - Masonry Retaining Wall Repr/Re 10% 6,145 10 3 15 - Wood Fence Stain - Res 25,884 6 2 16 - Wood Fence Repr/Repl - Res 5% 6,614 12 2 17 - Wood Fence Replace - Res 132,280 24 14 18 - Wood Fence Stain - Pool 2,858 6 2 19 - Wood Fence Repr/Repl - Pool 5% 730 12 2 20 - Wood Fence Replace - Pool 14,604 24 14 21 - Wrought Iron Fence Paint - Pool 3,240 5 3 22 - Wrought Iron Fence Repr/Repl - P 5% 555 10 8 23 - Wrought Iron Fence Replace 11,092 25 13 FURNISHINGS: 24 - WI Chaise Lounge Replace 506 10 1 25 - WI Table Replace 1,182 10 1 26 - Plastic Chair Replace 507 5 1 27 - Chaise Lounge Replace 1,351 5 1 28 - WI Chair Replace 2,026 10 1 LANDSCAPING: 29 - Irrigation Timer Replace - Front 11% 4,355 5 2 30 - Irrigation Valve Replace 9% 1,784 2 0 31 - Plant Stock Replenish 2,652 1 1 32 - Tree Trimming/Add/Removal LIGHTING: 33 - Bollard Light Replace 3,715 20 7 34 - Fluorescent Fixture Replace 208 25 12 35 - Lantern Fixture Replace 656 20 7 36 - Spot Light Fixture Replace 219 25 12 4,595 NOTE: Per BOD they choose not to paint the stucco as they have colored stucco. NOTE: Individual owners are responsible for the maint of this component. 116 46,507 53,915 97,564 113,103 35,565 NOTE: Paint cost included in Wood & Trim Paint line. 4,574 16,595 11,775 54,195 13,848 5,983 1,529 1,399 6,208 7,197 1,232 915 2,134 915 1,061 2,439 2,828 3,659 8,102 9,392 3,221 3,417 3,626 3,846 4,081 4,790 4,934 5,082 5,234 5,391 5,553 5,720 5,891 6,068 6,250 NOTE: Funding is handled via the association's operating budget. 8,012 1,414 12/4/2018 Page 7 Fieldstone Jan 2019 RSUb

Projected Expenditures Current Estimated Fiscal Year Repair Repr/Repl Usfl Rmng Jan 1.. % Cost Life Life Dec 31.. PAVED SURFACES: 37 - Asphalt Overlay 97,395 25 16 38 - Asphalt Major Repair 10% 20,814 10 1 39 - Asphalt Sealcoat & Repair 11,865 5 1 40 - Asphalt Striping 983 5 1 41 - Concrete Sidewalk,Curb&Gutter 2% 8,749 5 1 42 - Concrete Driveway Repr/Repl 2% 19,672 5 1 43 - Concrete Pool Deck Repr/Repl 3% 3,525 5 1 44 - Concrete Pool Deck Replace 117,504 30 17 RECREATIONAL FACITILITES: 45 - Chlorinator Replace 4,456 5 1 46 - Filter Replace 1,437 8 1 47 - Heater Replace 1,858 10 7 48 - Pump Motor 2hp Replace 2,087 7 2 49 - Pump Motor 1hp Replace 869 7 2 50 - Resurface Pool 16,635 10 9 51 - Tile & Coping Replace 6,159 10 9 ROOFING SYSTEM: 52 - Composition Roof Replace 880,341 30 17 53 - Metal Roof Replace - Pool 4,500 50 37 54 - Metal Roof Replace - BBQ 9,750 50 37 55 - Gutter & Downspout Replace 200,369 25 12 56 - Gutter Guard Replace 6,139 25 20 57 - Gutter Guard Replace 22,098 10 6 58 - Gutter Guard Replace 31,456 10 7 59 - Gutter Guard Replace 31,456 10 8 60 - Roof Inspection & Repair 13,640 5 1 OTHER: 61 - BBQ Replace 1,910 10 8 62 - Drinking Fountain Replace 1,351 18 5 63 - Refrigerator Replace 675 8 1 64 - Message Board Replace 328 25 12 65 - Mailbox Cluster Replace 66 - Storm Drain Maintenance 67 - Wood Trellis/Arbor Stain 835 5 3 68 - Wood Trellis/Arbor Repr/Repl 10% 2,402 10 8 69 - Wood Trellis/Arbor Replace 24,021 25 13 70 - Monument Signage 1,311 10 1 71 - Governing Doc Revisions 7,752 10 1 72 - Reserve Study Update 400 1 1 73 - Reserve Study Update Inspection 1,030 3 1 UNSCHEDULED... 5% 3,649 1 1 TOTAL EXPENDITURES 1,897,855 (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 37,592 21,430 24,843 1,776 2,059 15,802 18,319 35,530 41,189 6,367 7,381 8,048 9,329 2,921 4,006 3,998 4,917 1,666 2,049 38,059 14,092 46,268 24,635 28,559 2,588 1,373 NOTE: United States postal service maintains this component. 67,837 69,872 4,242 1,600 1,855 5,336 2,368 14,001 722 744 766 789 813 838 863 889 915 943 1,916 2,094 2,288 8,263 8,494 8,732 8,976 9,228 9,486 9,752 10,025 10,305 10,594 241,233 24,190 159,992 15,000 25,445 327,184 115,438 263,468 73,520 24,753 12/4/2018 Page 8 Fieldstone Jan 2019 RSUb

Funding Plan 1,057,817 Projected Cash Balance 472,849 503,606 512,050 604,162 706,389 694,097 770,132 747,111 874,546 Fiscal Year (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Jan 1.. 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Dec 31.. _ 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 BEGINNING BALANCE 534,387 472,849 503,606 512,050 604,162 706,389 694,097 770,132 747,111 874,546 EXPENDITURES (inflated $) 3.0% 135,781 51,915 83,725 10,727 12,623 140,386 66,796 182,275 50,202 15,126 RESERVE CONTRIBUTION 72,986 81,453 90,901 101,446 113,214 126,346 141,003 157,359 175,613 195,984 Per Unit Per Month (46 units) 132.22 147.56 164.68 183.78 205.10 228.89 255.44 285.07 318.14 355.04 Percentage Increase to Reserves 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 11.6 SPECIAL ASSESSMENTS 0 0 0 0 0 0 0 0 0 0 INTEREST 0.3% 1,257 1,219 1,268 1,394 1,636 1,748 1,828 1,894 2,025 2,412 _ ENDING BALANCE 472,849 503,606 512,050 604,162 706,389 694,097 770,132 747,111 874,546 1,057,817 12/4/2018 Page 9 Fieldstone Jan 2019 RSUb

Funding Plan 1,470,081 1,495,348 1,094,934 1,029,803 1,133,344 1,151,819 Projected Cash Balance 226,066 184,204 282,691 369,706 Fiscal Year (11) (12) (13) (14) (15) (16) (17) (18) (19) (20) Jan 1.. 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 Dec 31.. _ 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 BEGINNING BALANCE 1,057,817 1,094,934 1,029,803 1,133,344 1,151,819 1,470,081 1,495,348 226,066 184,204 282,691 EXPENDITURES (inflated $) 3.0% 184,287 311,873 171,562 288,380 24,278 357,056 1,693,972 194,489 58,470 74,552 RESERVE CONTRIBUTION 218,718 244,089 272,403 304,002 339,266 378,621 422,541 152,115 156,374 160,753 Per Unit Per Month (46 units) 396.23 442.19 493.48 550.73 614.61 685.91 765.47 275.57 283.29 291.22 Percentage Increase to Reserves 11.6 11.6 11.6 11.6 11.6 11.6 11.6 (64.0) 2.8 2.8 SPECIAL ASSESSMENTS 0 0 0 0 0 0 0 0 0 0 INTEREST 0.3% 2,688 2,653 2,701 2,853 3,273 3,702 2,149 512 583 814 _ ENDING BALANCE 1,094,934 1,029,803 1,133,344 1,151,819 1,470,081 1,495,348 226,066 184,204 282,691 369,706 12/4/2018 Page 10 Fieldstone Jan 2019 RSUb

Funding Plan Projected Cash Balance 622,807 783,672 647,996 729,312 668,083 802,507 991,874 441,165 456,932 294,556 Fiscal Year (21) (22) (23) (24) (25) (26) (27) (28) (29) (30) Jan 1.. 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 Dec 31.. _ 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 BEGINNING BALANCE 369,706 294,556 441,165 456,932 622,807 783,672 647,996 729,312 668,083 802,507 EXPENDITURES (inflated $) 3.0% 241,233 24,190 159,992 15,000 25,445 327,184 115,438 263,468 73,520 24,753 RESERVE CONTRIBUTION 165,254 169,881 174,637 179,527 184,554 189,721 195,034 200,495 206,108 211,879 Per Unit Per Month (46 units) 299.37 307.75 316.37 325.23 334.34 343.70 353.32 363.21 373.38 383.84 Percentage Increase to Reserves 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 2.8 SPECIAL ASSESSMENTS 0 0 0 0 0 0 0 0 0 0 INTEREST 0.3% 829 919 1,121 1,348 1,756 1,787 1,719 1,745 1,836 2,240 _ ENDING BALANCE 294,556 441,165 456,932 622,807 783,672 647,996 729,312 668,083 802,507 991,874 12/4/2018 Page 11 Fieldstone Jan 2019 RSUb

Component Quantification Current Estimated Repair Repr/Repl Usfl Rmng % Cost Life Life BUILDING EXTERIOR: 1 - Awning Replace 1,093 15 4 2 - Door Replace 2,131 20 7 3 - Stucco Paint 4 - Stucco Repr/Repl 5 - Tile Shower Repair 10% 64 10 1 6 - Wood & Trim Paint/Touch Up 25,750 5 1 7 - Wood & Trim Paint 50,918 5 3 8 - Wood & Trim Repr/Repl 2% 16,011 10 8 9 - Wood Railing Paint 10 - Wood Railing Repr/Repl 5% 2,059 10 8 BUILDING INTERIOR: 11 - Remodel Restrooms & Shower 7,957 25 12 12 - Restroom Paint 630 10 8 FENCING/WALL: 13 - Masonry Wall Repr/Repl 10% 8,661 10 3 14 - Masonry Retaining Wall Repr/Re 10% 6,145 10 3 15 - Wood Fence Stain - Res 25,884 6 2 16 - Wood Fence Repr/Repl - Res 5% 6,614 12 2 17 - Wood Fence Replace - Res 132,280 24 14 18 - Wood Fence Stain - Pool 2,858 6 2 19 - Wood Fence Repr/Repl - Pool 5% 730 12 2 20 - Wood Fence Replace - Pool 14,604 24 14 21 - Wrought Iron Fence Paint - Pool 3,240 5 3 22 - Wrought Iron Fence Repr/Repl - P 5% 555 10 8 23 - Wrought Iron Fence Replace 11,092 25 13 FURNISHINGS: 24 - WI Chaise Lounge Replace 506 10 1 25 - WI Table Replace 1,182 10 1 26 - Plastic Chair Replace 507 5 1 27 - Chaise Lounge Replace 1,351 5 1 28 - WI Chair Replace 2,026 10 1 LANDSCAPING: 29 - Irrigation Timer Replace - Front 11% 4,355 5 2 30 - Irrigation Valve Replace 9% 1,784 2 0 31 - Plant Stock Replenish 2,652 1 1 32 - Tree Trimming/Add/Removal LIGHTING: 33 - Bollard Light Replace 3,715 20 7 34 - Fluorescent Fixture Replace 208 25 12 35 - Lantern Fixture Replace 656 20 7 36 - Spot Light Fixture Replace 219 25 12 Unit of Unit Quantity Measurement Cost Notes 1 awning 1,092.73 3 doors 710.27 1-Pump Rm, 2-Restrooms Per BOD they choose not to paint the stucco as they have colored stucco. Individual owners are responsible for the maint of this component. 28 square feet 22.95 Allows 10% of this component to be repaired / replaced every 10 years. 1 fund 25,750.00 touch up on porches and windows. 94,292 square feet 0.54 Paint cost $48K, includes all exterior wood. 94,292 square feet 8.49 Allows 2% of this component to be repaired / replaced every 5 years. Paint cost included in Wood & Trim Paint line. 1,346 linear feet 30.60 Allows 5% of this component to be repaired / replaced every 10 years. 1 fund 7,956.75 2 toilets, 2 sinks, partitions, fixtures, lighting, ventilation, tile, etc. 578 square feet 1.09 570 linear feet 151.94 Allows 10% of this component to be repaired / replaced every 10 years. 840 linear feet 73.16 Allows 10% of this component to be repaired / replaced every 10 years. 26,412 square feet 0.98 2,201 linear feet 60.10 Allows 5% of this component to be repaired / replaced every 12 years. 2,201 linear feet 60.10 2,916 square feet 0.98 243 linear feet 60.10 Allows 5% of this component to be repaired / replaced every 12 years. 243 linear feet 60.10 2,436 square feet 1.33 203 linear feet 54.64 Allows 5% of this component to be repaired / replaced every 10 years. 203 linear feet 54.64 3 lounges 168.83 6 tables 196.96 9 chairs 56.28 12 lounges 112.55 24 chairs 84.41 47 timers 874.18 Allows 10.5% of this component to be repaired / replaced every 5 years. 54 valves 355.14 Allows 9.3% of this component to be repaired / replaced every 2 years. 1 fund 2,652.25 Funding is handled via the association's operating budget. 4 bollards 928.82 2 fixtures 103.81 located in pump room. 4 fixtures 163.91 2 at cabana, 2 at arbor. 2 fixtures 109.27 2 at arbor. 12/4/2018 Page 12 Fieldstone Jan 2019 RSUb

Component Quantification Current Estimated Repair Repr/Repl Usfl Rmng % Cost Life Life PAVED SURFACES: 37 - Asphalt Overlay 97,395 25 16 38 - Asphalt Major Repair 10% 20,814 10 1 39 - Asphalt Sealcoat & Repair 11,865 5 1 40 - Asphalt Striping 983 5 1 41 - Concrete Sidewalk,Curb&Gutter 2% 8,749 5 1 42 - Concrete Driveway Repr/Repl 2% 19,672 5 1 43 - Concrete Pool Deck Repr/Repl 3% 3,525 5 1 44 - Concrete Pool Deck Replace 117,504 30 17 RECREATIONAL FACITILITES: 45 - Chlorinator Replace 4,456 5 1 46 - Filter Replace 1,437 8 1 47 - Heater Replace 1,858 10 7 48 - Pump Motor 2hp Replace 2,087 7 2 49 - Pump Motor 1hp Replace 869 7 2 50 - Resurface Pool 16,635 10 9 51 - Tile & Coping Replace 6,159 10 9 ROOFING SYSTEM: 52 - Composition Roof Replace 880,341 30 17 53 - Metal Roof Replace - Pool 4,500 50 37 54 - Metal Roof Replace - BBQ 9,750 50 37 55 - Gutter & Downspout Replace 200,369 25 12 56 - Gutter Guard Replace 6,139 25 20 57 - Gutter Guard Replace 22,098 10 6 58 - Gutter Guard Replace 31,456 10 7 59 - Gutter Guard Replace 31,456 10 8 60 - Roof Inspection & Repair 13,640 5 1 OTHER: 61 - BBQ Replace 1,910 10 8 62 - Drinking Fountain Replace 1,351 18 5 63 - Refrigerator Replace 675 8 1 64 - Message Board Replace 328 25 12 65 - Mailbox Cluster Replace 66 - Storm Drain Maintenance 67 - Wood Trellis/Arbor Stain 835 5 3 68 - Wood Trellis/Arbor Repr/Repl 10% 2,402 10 8 69 - Wood Trellis/Arbor Replace 24,021 25 13 70 - Monument Signage 1,311 10 1 71 - Governing Doc Revisions 7,752 10 1 72 - Reserve Study Update 400 1 1 73 - Reserve Study Update Inspection 1,030 3 1 Unit of Unit Quantity Measurement Cost Notes 49,439 square feet 1.97 49,439 square feet 4.21 Allows 10% of this component to be repaired / replaced every 10 years. 49,439 square feet 0.24 1 fund 983.45 19,062 square feet 22.95 Allows 2% of this component to be repaired / replaced every 5 years. 42,859 square feet 22.95 Allows 2% of this component to be repaired / replaced every 5 years. 5,120 square feet 22.95 Allows 3% of this component to be repaired / replaced every 5 years. 5,120 square feet 22.95 1 chlorinator 4,455.78 Liquid injection 1 filter 1,436.96 Triton II sand filter. 1 heater 1,857.64 Minimax pool heater. 2 pumps 1,043.35 Pentair 2hp 1 pump 869.46 1hp pump motor 1 fund 16,634.50 130 linear feet 47.38 122,100 square feet 7.21 600 square feet 7.50 Raised seam metal roof at pool building. 1,300 square feet 7.50 Metal roof at bbq area. 13,096 linear feet 15.30 882 square feet 6.96 Installation of gutter guards (Advanced Roof Design). 3,175 square feet 6.96 4,520 square feet 6.96 4,520 square feet 6.96 124,000 square feet 0.11 1 bbq 1,909.62 Grand Turbo 7-burner barbecue. 1 fountain 1,350.61 2 refrigerators 337.65 1 board 327.82 United States postal service maintains this component. Murphy Sanitation maintains. 628 square feet 1.33 628 square feet 38.25 Allows 10% of this component to be repaired / replaced every 10 years. 628 square feet 38.25 1 square feet 1,311.27 1 fund 7,752.02 1 fund 400.00 1 fund 1,030.00 12/4/2018 Page 13 Fieldstone Jan 2019 RSUb

Accrued Liability Current Estimated Repair Repr/Repl Usfl Rmng % Cost Life Life BUILDING EXTERIOR: 1 - Awning Replace 1,093 15 4 2 - Door Replace 2,131 20 7 3 - Stucco Paint 4 - Stucco Repr/Repl 5 - Tile Shower Repair 10% 64 10 1 6 - Wood & Trim Paint/Touch Up 25,750 5 1 7 - Wood & Trim Paint 50,918 5 3 8 - Wood & Trim Repr/Repl 2% 16,011 10 8 9 - Wood Railing Paint 10 - Wood Railing Repr/Repl 5% 2,059 10 8 BUILDING INTERIOR: 11 - Remodel Restrooms & Shower 7,957 25 12 12 - Restroom Paint 630 10 8 FENCING/WALL: 13 - Masonry Wall Repr/Repl 10% 8,661 10 3 14 - Masonry Retaining Wall Repr/Re 10% 6,145 10 3 15 - Wood Fence Stain - Res 25,884 6 2 16 - Wood Fence Repr/Repl - Res 5% 6,614 12 2 17 - Wood Fence Replace - Res 132,280 24 14 18 - Wood Fence Stain - Pool 2,858 6 2 19 - Wood Fence Repr/Repl - Pool 5% 730 12 2 20 - Wood Fence Replace - Pool 14,604 24 14 21 - Wrought Iron Fence Paint - Pool 3,240 5 3 22 - Wrought Iron Fence Repr/Repl - P 5% 555 10 8 23 - Wrought Iron Fence Replace 11,092 25 13 FURNISHINGS: 24 - WI Chaise Lounge Replace 506 10 1 25 - WI Table Replace 1,182 10 1 26 - Plastic Chair Replace 507 5 1 27 - Chaise Lounge Replace 1,351 5 1 28 - WI Chair Replace 2,026 10 1 LANDSCAPING: 29 - Irrigation Timer Replace - Front 11% 4,355 5 2 30 - Irrigation Valve Replace 9% 1,784 2 0 31 - Plant Stock Replenish 2,652 1 1 32 - Tree Trimming/Add/Removal LIGHTING: 33 - Bollard Light Replace 3,715 20 7 34 - Fluorescent Fixture Replace 208 25 12 35 - Lantern Fixture Replace 656 20 7 36 - Spot Light Fixture Replace 219 25 12 Straight Line Cash Flow Annual Accrued Proration PUPM Annual Accrued Liability Liability Percentage Funding Liability Liability 73 801 0.06% 0.08 46 503 107 1,385 0.09% 0.12 67 870 6 58 0.01% 0.01 4 36 5,150 20,600 4.43% 5.86 3,234 12,938 10,184 20,367 8.76% 11.59 6,396 12,791 1,601 3,202 1.38% 1.82 1,006 2,011 206 412 0.18% 0.23 129 259 318 4,138 0.27% 0.36 200 2,599 63 126 0.05% 0.07 40 79 866 6,062 0.75% 0.99 544 3,807 615 4,302 0.53% 0.70 386 2,702 4,314 17,256 3.71% 4.91 2,709 10,837 551 5,512 0.47% 0.63 346 3,462 5,512 55,117 4.74% 6.27 3,462 34,616 476 1,905 0.41% 0.54 299 1,197 61 609 0.05% 0.07 38 382 609 6,085 0.52% 0.69 382 3,822 648 1,296 0.56% 0.74 407 814 55 111 0.05% 0.06 35 70 444 5,324 0.38% 0.50 279 3,344 51 456 0.04% 0.06 32 286 118 1,064 0.10% 0.13 74 668 101 405 0.09% 0.12 64 254 270 1,080 0.23% 0.31 170 679 203 1,823 0.17% 0.23 127 1,145 871 2,613 0.75% 0.99 547 1,641 892 1,784 0.77% 1.01 560 1,120 2,652 0 2.28% 3.02 1,666 0 186 2,415 0.16% 0.21 117 1,517 8 108 0.01% 0.01 5 68 33 426 0.03% 0.04 21 268 9 114 0.01% 0.01 5 71 12/4/2018 Page 14 Fieldstone Jan 2019 RSUb

Accrued Liability Current Estimated Repair Repr/Repl Usfl Rmng % Cost Life Life PAVED SURFACES: 37 - Asphalt Overlay 97,395 25 16 38 - Asphalt Major Repair 10% 20,814 10 1 39 - Asphalt Sealcoat & Repair 11,865 5 1 40 - Asphalt Striping 983 5 1 41 - Concrete Sidewalk,Curb&Gutter 2% 8,749 5 1 42 - Concrete Driveway Repr/Repl 2% 19,672 5 1 43 - Concrete Pool Deck Repr/Repl 3% 3,525 5 1 44 - Concrete Pool Deck Replace 117,504 30 17 RECREATIONAL FACITILITES: 45 - Chlorinator Replace 4,456 5 1 46 - Filter Replace 1,437 8 1 47 - Heater Replace 1,858 10 7 48 - Pump Motor 2hp Replace 2,087 7 2 49 - Pump Motor 1hp Replace 869 7 2 50 - Resurface Pool 16,635 10 9 51 - Tile & Coping Replace 6,159 10 9 ROOFING SYSTEM: 52 - Composition Roof Replace 880,341 30 17 53 - Metal Roof Replace - Pool 4,500 50 37 54 - Metal Roof Replace - BBQ 9,750 50 37 55 - Gutter & Downspout Replace 200,369 25 12 56 - Gutter Guard Replace 6,139 25 20 57 - Gutter Guard Replace 22,098 10 6 58 - Gutter Guard Replace 31,456 10 7 59 - Gutter Guard Replace 31,456 10 8 60 - Roof Inspection & Repair 13,640 5 1 OTHER: 61 - BBQ Replace 1,910 10 8 62 - Drinking Fountain Replace 1,351 18 5 63 - Refrigerator Replace 675 8 1 64 - Message Board Replace 328 25 12 65 - Mailbox Cluster Replace 66 - Storm Drain Maintenance 67 - Wood Trellis/Arbor Stain 835 5 3 68 - Wood Trellis/Arbor Repr/Repl 10% 2,402 10 8 69 - Wood Trellis/Arbor Replace 24,021 25 13 70 - Monument Signage 1,311 10 1 71 - Governing Doc Revisions 7,752 10 1 72 - Reserve Study Update 400 1 1 73 - Reserve Study Update Inspection 1,030 3 1 UNSCHEDULED... 5% 3,649 1 1 1,897,855 Straight Line Cash Flow Annual Accrued Proration PUPM Annual Accrued Liability Liability Percentage Funding Liability Liability 3,896 35,062 3.35% 4.43 2,447 22,021 2,081 18,732 1.79% 2.37 1,307 11,765 2,373 9,492 2.04% 2.70 1,490 5,962 197 787 0.17% 0.22 124 494 1,750 7,000 1.51% 1.99 1,099 4,396 3,934 15,738 3.39% 4.48 2,471 9,884 705 2,820 0.61% 0.80 443 1,771 3,917 50,918 3.37% 4.46 2,460 31,979 891 3,565 0.77% 1.01 560 2,239 180 1,257 0.15% 0.20 113 790 186 557 0.16% 0.21 117 350 298 1,491 0.26% 0.34 187 936 124 621 0.11% 0.14 78 390 1,663 1,663 1.43% 1.89 1,045 1,045 616 616 0.53% 0.70 387 387 29,345 381,481 25.25% 33.39 18,430 239,587 90 1,170 0.08% 0.10 57 735 195 2,535 0.17% 0.22 122 1,592 8,015 104,192 6.90% 9.12 5,034 65,437 246 1,228 0.21% 0.28 154 771 2,210 8,839 1.90% 2.51 1,388 5,551 3,146 9,437 2.71% 3.58 1,976 5,927 3,146 6,291 2.71% 3.58 1,976 3,951 2,728 10,912 2.35% 3.10 1,713 6,853 191 382 0.16% 0.22 120 240 75 975 0.06% 0.09 47 613 84 591 0.07% 0.10 53 371 13 170 0.01% 0.01 8 107 167 334 0.14% 0.19 105 210 240 480 0.21% 0.27 151 302 961 11,530 0.83% 1.09 603 7,241 131 1,180 0.11% 0.15 82 741 775 6,977 0.67% 0.88 487 4,382 400 0 0.34% 0.46 251 0 343 687 0.30% 0.39 216 431 3,649 0 3.14% 4.15 2,292 0 116,212 866,666 100% 132.22 72,986 544,305 12/4/2018 Page 15 Fieldstone Jan 2019 RSUb