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SAGUARO CANYON SUBDIVISION HOMEOWNERS ASSOCIATION R E S E R V E S T U D Y Full Study Published - May 27, 2010 B R O W N I N G R E S E R V E G R O U P ~ Emmett, ID 83617 ~ Office (208) 365-0977 Fax (208) 365-3158 www.browningrg.com 1608 Version 5/27/2010 12fs4.0.22 5/27/2010 10:43:03 AM Browning Reserve Group 2010

SAGUARO CANYON SUBDIVISION Table of Contents Section Report Page Section I: of Association Reserves 1 Section II: 30 Year Expense Forecast Detailed 6 Section III: 30 Year Reserve Funding Plan Cash Flow Method {c} 13 Section III-a: 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances Chart 14 Section IV: 30 Year Reserve Funding Plan Fully Funded Balance and % Funded 15 Section V: Reserve Fund Balance Forecast Component Method 16 Section VI: Component Listing Included Components 20 Section VII: Tabular Component Listing Included Components 47 Section VII-a: Expenditures by Year For 1 Year 50 Section IX: Directory of Reserve Study Contractors 52 Section X: Auditor Notes 55 Section X-a: Supplementary Information for Auditor Component Method 57 Section XI: Glossary Reserve Study Terms 60 Addendum: Homeowner Distribution Materials See Page ii for Details 1608 Version 5/27/2010 12fs4.0.22 5/27/2010 10:43:03 AM Browning Reserve Group 2010 TOC - i

SAGUARO CANYON SUBDIVISION Homeowner Distribution Materials The following Reserve Study sections should be provided to each Homeowner. Section Report Page Idaho: Homeowner 64 1608 Version 5/27/2010 12fs4.0.22 5/27/2010 10:43:03 AM Browning Reserve Group 2010 TOC - ii

Section I Reserve Study Full Study Saguaro Canyon Subdivision Homeowners Association A Reserve Study was conducted of (the "Association"). This study is a Full Study which includes an on-site review upon where the following tasks are performed: development of a reserve component inventory; condition assessment based upon on-site visual observation; life and valuation estimates; fund status; and a funding plan. is a Planned Development with a total of 425 LotLots. Physical Inspection Browning Reserve Group ("BRG") conducted a physical inspection of the Association. The inspection encompassed those major components that the Association is required to maintain. For this study components are determined to be major components if: 1. As of the date of the study, they have a remaining useful life of less than 30 years, and a value greater than $1,000. 2. Such additional components, if any, determined by the Board of Directors. During the inspection, BRG utilized the services of our own construction cost estimator. In addition, independent contractors were retained to render opinions on selected components as indicated in Section VI, Included Component Listing. 1608 5/27/2010 12fs4.0.22 ~ Emmett, ID 83617 ~ Office (208) 365-0977 Fax (208) 365-3158 www.browningrg.com Browning Reserve Group 2010

Reserve Study - Full Study 2 Supplemental information to the physical inspection may have been obtained from the following sources: 1. Project plans where available. 2. Maintenance records of the reserve components where available. 3. Association board members, management and staff. of Reserves For the first year of the Reserve Study, the reserve contribution is based upon the existing budget unless otherwise noted in Section III, Reserve Funding Plan. In addition BRG relied on the Association to provide an accurate Beginning Reserve Balance. The status of the Association's reserves, as reflected in the following Reserve Study, is as follows: 1. The Expenditure Forecast of the following Reserve Study identifies the major components which the Association is obligated to repair, replace, restore or maintain, as determined in accordance with the criteria specified above, and specifies for each such component: a. Its current estimated replacement cost; b. Its estimated useful life; and c. Its estimated remaining useful life. 2. It is estimated that the total cash reserves necessary to repair, replace, restore or maintain such major components (in the aggregate) during and at the end of their first remaining useful life is $129,510. [For purposes of this calculation, necessary is defined as the Fully Funded Balance (FFB) (Component Current Cost X Effective Age / Useful Life, including a provision for interest and inflation in future years.)] 3. The current amount of accumulated cash reserves actually set aside to repair, replace, restore, or maintain such major components as of the fiscal year ending December 31, 2011 is estimated to be $59,635, constituting 46.0% of the total expenditures anticipated for all such major components through their first end of useful life replacement. 4. Based upon the schedule of annual reserve contributions necessary to defray the cost of repairing, replacing, restoring or maintaining such major components in the years such expenditures are estimated to be required, it is estimated that annual reserve contributions in the initial amount of $36,771 [$7.21 per Lot per month (average)] for the fiscal year ending December 31, 2011 (the first full fiscal year following first distribution of this report) will be necessary in order to meet all such reserve expenditures when they are projected to come due.

Reserve Study - Full Study 3 Funding Assessment Based on the 30 year cash flow projection, the Association's reserves appear adequately funded as the reserve fund ending balances remain positive throughout the replacement of all major components during the next 30 years. Idaho statute imposes no reserve funding level requirements nor does it address funding level adequacy, and although one or more of the reserve fund percentages expressed in this report may be less than one hundred percent, those percentages do not necessarily indicate that the Association's reserves are inadequately funded. Percent Funded Status Based on paragraphs 1-3 above, the Association is 46.0% funded. The following scale can be used as a measure to determine the association s financial picture whereas the lower the percentage, the higher the likelihood of the Association requiring a special assessment, or other large increases to the reserve contribution in the future. Percent Funded --------------- Poor --------------- 30% -------------------- Fair --------------------- 70% ----------- Strong ------------ 100% Methodology The above recommended reserve contribution for the next fiscal year (and future fiscal years as outlined in Section III, Reserve Fund Balance Forecast) was developed using the cash flow method. This is a method of developing a reserve funding plan where the contributions to the reserve fund are designed to offset the variable annual expenditures from the reserve fund. Different reserve funding plans are tested against the anticipated schedule of reserve expenses until the desired funding goal is achieved. Funding Goals The funding goal employed for is Threshold Funding: Establishing a Reserve funding goal of keeping the Reserve balance above a specified dollar or Percent Funded amount. Depending on the threshold, this may be more or less conservative than Fully Funding.

Reserve Study - Full Study 4 Limitations The intention of the Reserve Study is to forecast the Association's ability to repair or replace major components as they wear out in future years. The Reserve Study is not an engineering report. The costs outlined in the study are for budgetary and planning purposes only. Actual bid costs would depend upon the defined scope of work at the time repairs are made. Also, any latent defects are excluded from this report. It should be noted no destructive testing was performed. Statutory Disclosures Compliance The Reserve Study complies with or exceeds all applicable statutes, if any. General: Supplemental Disclosures BRG has no other involvement(s) with the Association which could result in actual or perceived conflicts of interest. Personnel Credentials: N. Anthony Dann graduated from Cal State Northridge with Bachelors & Master of Science degrees in Business Administration, Management and Finance. Diane M. Dann has a Certified Property Manager designation from the Institute of Real Estate Management. Completeness: BRG has found no material issues which, if not disclosed, would cause a distortion of the Association's situation. Reliance on Client Data: Information provided by the official representative of the Association regarding financial, physical, quantity, or historical issues will be deemed reliable by BRG. Scope: This Reserve Study is a reflection of information provided to BRG and assembled for the Association's use, not for the purpose of performing an audit, quality/forensic analysis, health and safety inspection, or background checks of historical records. Reserve Balance: The actual beginning reserve fund balance in this Reserve Study is based upon information provided and was not audited.

Reserve Study - Full Study 5 Reserve Projects: Information provided about reserve projects will be considered reliable. Any on-site inspection should not be considered a project audit, quality inspection, or health and safety review. Browning Reserve Group

Section II 30 Year Expense Forecast - Detailed Reserve Component 01000 - Paving 100 - Asphalt: Sealing {5,388 Sq. Ft. Pool Parking Lot} 102 - Asphalt: Sealing {62,209 Sq. Ft. Asphalt Pathways} 200 - Asphalt: Repairs: On-going {Pool Parking Lot & Pathways} 02000 - Concrete Current Replacement Total 01000 - Paving 9,734 200 - Sidewalks, Curbs & Gutters {160 Sq. Ft. Residential Sidewalks, Curbs & Gutters} 360 - Stamped {160 Sq. Ft. Redhorse Sidewalks & Red Paver} Total 02000 - Concrete 1,440 03000 - Painting: Exterior 150 - Stain {219 Lin. Ft. Decorative Wood Fencing/Redhorse Way} 152 - Stain {1,450 Wood Posts @ Fences/Phase I (50%)} 153 - Stain {1,450 Lin. Ft. Wood @ Posts Fences /Phase II (50%)} 300 - Trim {Pool Bldg Appurtenances, Shade Structures, Turrets} 400 - Wrought Iron {9,586 Lin. Ft. Pathways & Pool Area/Phase I (50%)} 401 - Wrought Iron {9,586 Lin. Ft. Pathways & Pool Area/Phase II (50%)} Life Useful / Cost Remaining 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 647 4 2 679 750 828 914 8,087 4 0 8,087 8,927 9,853 10,876 1,000 4 0 1,000 1,104 1,218 1,345 9,087 679 10,031 750 11,072 828 12,221 914 480 2 5 543 571 599 630 662 960 2 0 960 1,009 1,060 1,113 1,170 1,229 1,291 1,356 960 1,009 1,060 543 1,113 571 1,170 599 1,229 630 1,291 662 1,356 296 6 2 311 360 418 3,625 6 0 3,625 4,204 4,875 3,625 6 1 3,716 4,309 4,997 1,500 5 1 1,538 1,740 1,968 28,758 6 1 29,477 34,184 39,643 28,758 6 2 30,214 35,039 40,634 510 - Mailboxes {425 Residential Mailboxes} 6,375 15 11 8,365 520 - Fire Hydrants {51 Fire Hydrants} 1,275 15 10 1,632 540 - Utility Boxes {Utility Boxes} 3,000 15 10 3,840 990 - Miscellaneous {Entrance Monument} 1,350 6 1 1,384 1,605 1,861 Total 03000 - Painting: Exterior 78,562 3,625 36,114 30,524 5,943 40,098 35,399 5,472 10,333 4,875 46,501 41,052 04000 - Structural Repairs 300 - Trellis {Pool Area & Bus Stop} 7,000 25 21 Total 04000 - Structural Repairs 7,000 18000 - Landscaping 100 - Irrigation: Misc. {Irrigation System} 1,000 1 1 1,025 1,051 1,077 1,104 1,131 1,160 1,189 1,218 1,249 1,280 1,312 1,345 1,379 1,413 490 - Bark Replacement {Common Area} 1,500 1 0 1,500 1,538 1,576 1,615 1,656 1,697 1,740 1,783 1,828 1,873 1,920 1,968 2,017 2,068 2,119 Browning Reserve Group 2010 2010 to 2024 6

30 Year Expense Forecast - Detailed Reserve Component Current Replacement Life Useful / Cost Remaining 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500 - Tree Maintenance {Common Area} 1,500 2 0 1,500 1,576 1,656 1,740 1,828 1,920 2,017 2,119 530 - Plant Replacement {Common Area} 1,800 1 1 1,845 1,891 1,938 1,987 2,037 2,087 2,140 2,193 2,248 2,304 2,362 2,421 2,481 2,543 532 - Plant Replacement {Cactus} 2,000 2 0 2,000 2,101 2,208 2,319 2,437 2,560 2,690 2,826 920 - Miscellaneous {Perma Bark/Rock - Common Area} Total 18000 - Landscaping 8,800 18500 - Lakes / Ponds 240 - Fountain {Fountain} 3,500 20 16 1,000 2 1 1,025 1,077 1,131 1,189 1,249 1,312 1,379 600 - Pump / Motor {Fountain} 1,500 10 5 1,697 990 - Miscellaneous {Fountain}[nr:1] 1,000 1 0 1,000 5,000 5,433 8,195 5,708 8,610 5,996 9,046 6,300 9,504 6,619 9,985 6,954 10,490 7,306 11,021 Total 18500 - Lakes / Ponds 6,000 1,000 1,697 19000 - Fencing 350 - Wood: Repair {1,450 Pathway & Pool Fence Posts (5.0%)} 370 - Wood: Decorative {219 Lin. Ft. Redhorse Decorative Wood Fence} 6,126 2 0 6,126 6,436 6,761 7,104 7,463 7,841 8,238 8,655 4,380 20 16 390 - Vinyl {Perimeter Fencing} 1,200 1 0 1,200 1,230 1,261 1,292 1,325 1,358 1,392 1,426 1,462 1,499 1,536 1,575 1,614 1,654 1,696 Total 19000 - Fencing 11,706 7,326 1,230 7,696 1,292 8,086 1,358 8,495 1,426 8,925 1,499 9,377 1,575 9,852 1,654 10,351 20000 - Lighting 200 - Street Lights {2 Street Lights} 3,300 2 21 210 - Street: Paint & Bulbs {88 Light Poles/Phase I (50%)} 211 - Street: Paint & Bulbs {88 Light Poles/Phase II (50%)} 260 - Bollard Lights {38 Common Area & Pool (10.5%)} 300 - Common Area {293 Various Light Fixture Types (5.1%)} Total 20000 - Lighting 20,500 26000 - Outdoor Equipment 100 - Tot Lot {Pool & Redhorse Way} 51,076 20 15 Total 26000 - Outdoor Equipment 51,076 30000 - Miscellaneous 960 - Misc. Maint. Repairs {Stone Benches, Walls, Pedestals, Building Décor} Total 30000 - Miscellaneous 500 32000 - Undesignated 100 - Miscellaneous {66 Bollard Lights & Barrier Posts} Total 32000 - Undesignated 990 Common Area Pool 03000 - Painting: Exterior 7,700 10 7 9,153 7,700 10 8 9,382 1,200 2 2 1,261 1,325 1,392 1,463 1,537 1,614 1,696 600 1 1 615 630 646 662 679 696 713 731 749 768 787 807 827 848 615 1,892 646 1,987 679 2,088 9,866 11,575 749 2,305 787 2,421 827 2,544 500 1 0 500 513 525 538 552 566 580 594 609 624 640 656 672 689 706 500 513 525 538 552 566 580 594 609 624 640 656 672 689 706 990 10 5 1,120 1,120 Browning Reserve Group 2010 2010 to 2024 7

30 Year Expense Forecast - Detailed Current Life Replacement Useful / Reserve Component Cost Remaining 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 110 - Stucco {Pool Buildings} 1,100 8 4 1,214 1,479 Total 03000 - Painting: Exterior 1,100 1,214 1,479 04000 - Structural Repairs 910 - Building Maintenance {Storage, Pool Equip & Restroom Buildings} Total 04000 - Structural Repairs 1,000 05000 - Roofing 200 - Low Slope: BUR {10 Squares- Storage, Pool Equip & RR Buildings} 12000 - Pool Total 05000 - Roofing 2,000 1,000 3 3 1,077 1,160 1,249 1,345 1,077 1,160 1,249 1,345 2,000 15 11 2,624 110 - Resurface {228 Lin. Ft. Pool} 14,820 12 8 18,057 600 - Deck: Re-Surface {80 Sq. Ft. Pool Area} 700 - Equipment: Replacement {Pool Equipment (50%)} 720 - Heater {Pool Heater #1}[nr:1] 600 1 0 600 960 5 10 1,229 2,250 5 2 2,364 2,675 3,026 722 - Heater {2 Pool Heater #1 & #2} 5,000 10 5 5,657 910 - Furniture: Chairs {35 Pool Area (48.5%)} 990 - Miscellaneous {Entrance Gate}[nr:1] 2,300 1 0 2,300 2,546 5 2 2,675 3,027 3,424 990 - Miscellaneous {Pool Cover} 6,000 10 6 6,958 2,624 Total 12000 - Pool 34,476 2,900 5,039 5,657 6,958 5,701 18,057 1,229 6,450 19000 - Fencing 200 - Wrought Iron {361 Lin. Ft. Pool Fence}[nr:1] Total 19000 - Fencing 14,440 26000 - Outdoor Equipment 14,440 40 0 14,440 14,440 280 - Picnic Tables {3 Pool Area} 2,337 15 10 2,992 306 - Benches {6 Pool Area & Redhorse Tot Lot} Total 26000 - Outdoor Equipment 4,731 30000 - Miscellaneous 915 - Security System {Pool Area}[nr:1] 2,500 1 0 2,500 2,394 15 10 3,065 6,056 Total 30000 - Miscellaneous 2,500 2,500 32000 - Undesignated 100 - Miscellaneous {Pool & Buildings} 1,200 2 4 1,325 1,392 1,462 1,536 1,614 1,696 Total 32000 - Undesignated 1,200 Total [Common Area Pool] Expenditures Inflated @ 2.50% 1,325 1,392 1,462 1,536 1,614 1,696 19,840 5,039 1,077 2,539 5,657 9,509 5,701 19,519 1,249 8,821 2,624 10,889 1,696 Reserve Study 31000 - Reserve Study Browning Reserve Group 2010 2010 to 2024 8

30 Year Expense Forecast - Detailed Reserve Component 100-3 Year Update with Site Visit {Full Reserve Study} Current Replacement Total 31000 - Reserve Study 1,200 Life Useful / Cost Remaining 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1,200 3 3 1,292 1,392 1,499 1,614 1,292 1,392 1,499 1,614 Total [Reserve Study] Expenditures Inflated @ 2.50% Total Expenditures Inflated @ 2.50% 1,292 1,392 1,499 1,614 47,338 43,904 55,560 10,554 32,864 17,616 38,916 64,557 97,773 12,838 38,657 23,559 54,326 57,640 69,640 Total Current Replacement Cost 258,955 Browning Reserve Group 2010 2010 to 2024 9

Reserve Component 30 Year Expense Forecast - Detailed 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 01000 - Paving 100 - Asphalt: Sealing {5,388 Sq. Ft. Pool Parking Lot} 102 - Asphalt: Sealing {62,209 Sq. Ft. Asphalt Pathways} 200 - Asphalt: Repairs: On-going {Pool Parking Lot & Pathways} 02000 - Concrete Total 01000 - Paving 200 - Sidewalks, Curbs & Gutters {160 Sq. Ft. Residential Sidewalks, Curbs & Gutters} 360 - Stamped {160 Sq. Ft. Redhorse Sidewalks & Red Paver} Total 02000 - Concrete 1,008 1,113 1,229 12,005 13,252 14,627 16,146 1,485 1,639 1,809 1,996 13,490 1,008 14,890 1,113 16,436 1,229 18,142 695 730 767 806 847 890 935 982 1,425 1,497 1,573 1,653 1,736 1,824 1,917 695 1,425 730 1,497 767 1,573 806 1,653 847 1,736 890 1,824 935 1,917 982 03000 - Painting: Exterior 150 - Stain {219 Lin. Ft. Decorative Wood Fencing/Redhorse Way} 152 - Stain {1,450 Wood Posts @ Fences/Phase I (50%)} 153 - Stain {1,450 Lin. Ft. Wood @ Posts Fences /Phase II (50%)} 300 - Trim {Pool Bldg Appurtenances, Shade Structures, Turrets} 400 - Wrought Iron {9,586 Lin. Ft. Pathways & Pool Area/Phase I (50%)} 401 - Wrought Iron {9,586 Lin. Ft. Pathways & Pool Area/Phase II (50%)} 484 562 5,654 6,557 5,795 6,721 2,227 2,519 2,850 45,974 53,316 47,123 54,649 510 - Mailboxes {425 Residential Mailboxes} 12,114 520 - Fire Hydrants {51 Fire Hydrants} 2,364 540 - Utility Boxes {Utility Boxes} 5,562 990 - Miscellaneous {Entrance Monument} 2,158 2,503 Total 03000 - Painting: Exterior 2,227 5,654 53,927 47,608 2,519 6,557 70,465 70,175 04000 - Structural Repairs 300 - Trellis {Pool Area & Bus Stop} 11,757 Total 04000 - Structural Repairs 11,757 18000 - Landscaping 100 - Irrigation: Misc. {Irrigation System} 1,448 1,485 1,522 1,560 1,599 1,639 1,680 1,722 1,765 1,809 1,854 1,900 1,948 1,996 2,046 490 - Bark Replacement {Common Area} 2,172 2,227 2,282 2,339 2,398 2,458 2,519 2,582 2,647 2,713 2,781 2,850 2,922 2,995 3,070 500 - Tree Maintenance {Common Area} 2,227 2,339 2,458 2,582 2,713 2,850 2,995 530 - Plant Replacement {Common Area} 2,607 2,672 2,739 2,807 2,878 2,950 3,023 3,099 3,176 3,256 3,337 3,421 3,506 3,594 3,684 532 - Plant Replacement {Cactus} 2,969 3,119 3,277 3,443 3,617 3,801 3,993 920 - Miscellaneous {Perma Bark/Rock - Common Area} Total 18000 - Landscaping 1,448 1,522 1,599 1,680 1,765 1,854 1,948 2,046 7,676 11,579 8,065 12,165 8,473 12,781 8,902 13,428 9,352 14,108 9,826 14,822 10,323 15,573 10,846 18500 - Lakes / Ponds Browning Reserve Group 2010 2025 to 2039 10

Reserve Component 30 Year Expense Forecast - Detailed 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 240 - Fountain {Fountain} 5,196 600 - Pump / Motor {Fountain} 2,172 2,781 990 - Miscellaneous {Fountain}[nr:1] Total 18500 - Lakes / Ponds 2,172 5,196 2,781 19000 - Fencing 350 - Wood: Repair {1,450 Pathway & Pool Fence Posts (5.0%)} 370 - Wood: Decorative {219 Lin. Ft. Redhorse Decorative Wood Fence} 9,093 9,554 10,037 10,546 11,079 11,640 12,230 6,502 390 - Vinyl {Perimeter Fencing} 1,738 1,781 1,826 1,872 1,918 1,966 2,015 2,066 2,118 2,170 2,225 2,280 2,337 2,396 2,456 Total 19000 - Fencing 1,738 17,377 1,826 11,425 1,918 12,004 2,015 12,611 2,118 13,250 2,225 13,921 2,337 14,625 2,456 20000 - Lighting 200 - Street Lights {2 Street Lights} 5,543 5,823 6,118 6,428 6,753 210 - Street: Paint & Bulbs {88 Light Poles/Phase I (50%)} 211 - Street: Paint & Bulbs {88 Light Poles/Phase II (50%)} 260 - Bollard Lights {38 Common Area & Pool (10.5%)} 300 - Common Area {293 Various Light Fixture Types (5.1%)} Total 20000 - Lighting 11,716 14,998 12,009 15,373 1,782 1,872 1,967 2,067 2,171 2,281 2,397 869 891 913 936 959 983 1,008 1,033 1,059 1,085 1,112 1,140 1,169 1,198 1,228 869 2,673 12,630 14,818 959 2,950 6,550 3,100 6,882 3,257 7,231 3,421 22,595 18,968 7,981 26000 - Outdoor Equipment 100 - Tot Lot {Pool & Redhorse Way} 73,973 Total 26000 - Outdoor Equipment 30000 - Miscellaneous 960 - Misc. Maint. Repairs {Stone Benches, Walls, Pedestals, Building Décor} Total 30000 - Miscellaneous 32000 - Undesignated 100 - Miscellaneous {66 Bollard Lights & Barrier Posts} Total 32000 - Undesignated 73,973 724 742 761 780 799 819 840 861 882 904 927 950 974 998 1,023 724 742 761 780 799 819 840 861 882 904 927 950 974 998 1,023 1,434 1,835 1,434 1,835 Common Area Pool 03000 - Painting: Exterior 110 - Stucco {Pool Buildings} 1,802 2,196 Total 03000 - Painting: Exterior 04000 - Structural Repairs 910 - Building Maintenance {Storage, Pool Equip & Restroom Buildings} Total 04000 - Structural Repairs 1,802 2,196 1,448 1,560 1,680 1,809 1,948 1,448 1,560 1,680 1,809 1,948 05000 - Roofing Browning Reserve Group 2010 2025 to 2039 11

Reserve Component 30 Year Expense Forecast - Detailed 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 200 - Low Slope: BUR {10 Squares- Storage, Pool Equip & RR Buildings} Total 05000 - Roofing 3,801 3,801 12000 - Pool 110 - Resurface {228 Lin. Ft. Pool} 24,284 600 - Deck: Re-Surface {80 Sq. Ft. Pool Area} 700 - Equipment: Replacement {Pool Equipment (50%)} 720 - Heater {Pool Heater #1}[nr:1] 1,390 1,573 1,780 3,424 3,874 4,383 722 - Heater {2 Pool Heater #1 & #2} 7,241 9,270 910 - Furniture: Chairs {35 Pool Area (48.5%)} 990 - Miscellaneous {Entrance Gate}[nr:1] 3,874 4,384 4,960 990 - Miscellaneous {Pool Cover} 8,907 11,402 Total 12000 - Pool 8,632 8,907 7,298 25,857 8,257 11,050 11,402 9,342 19000 - Fencing 200 - Wrought Iron {361 Lin. Ft. Pool Fence}[nr:1] Total 19000 - Fencing 26000 - Outdoor Equipment 280 - Picnic Tables {3 Pool Area} 4,333 306 - Benches {6 Pool Area & Redhorse Tot Lot} Total 26000 - Outdoor Equipment 4,438 8,771 30000 - Miscellaneous 915 - Security System {Pool Area}[nr:1] Total 30000 - Miscellaneous 32000 - Undesignated 100 - Miscellaneous {Pool & Buildings} 1,781 1,872 1,966 2,066 2,170 2,280 2,396 Total 32000 - Undesignated Total [Common Area Pool] Expenditures Inflated @ 2.50% Reserve Study 31000 - Reserve Study 100-3 Year Update with Site Visit {Full Reserve Study} Total 31000 - Reserve Study Total [Reserve Study] Expenditures Inflated @ 2.50% Total Expenditures Inflated @ 2.50% 1,781 1,872 1,966 2,066 2,170 2,280 2,396 10,080 10,688 7,298 3,431 29,626 1,680 10,323 3,979 19,821 17,483 11,290 4,592 1,738 1,872 2,015 2,170 2,337 1,738 1,872 2,015 2,170 2,337 1,738 1,872 2,015 2,170 2,337 101,100 65,397 31,309 52,650 66,844 122,252 37,085 43,089 20,081 62,398 116,000 123,825 50,791 74,815 23,288 Browning Reserve Group 2010 2025 to 2039 12

30 Year Reserve Funding Plan Cash Flow Method Section III Beginning Balance Inflated Expenditures @ 2.5% Reserve Contribution Lots/month @ 425 Percentage Increase Special Assessments / Other Interest Pre Tax @ 2.50% Ending Balance 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 75,131 65,226 59,635 43,219 73,111 82,347 108,471 114,940 96,905 46,120 47,338 43,904 55,560 10,554 32,864 17,616 38,916 64,557 97,773 12,838 35,700 36,771 37,874 39,010 40,180 41,385 42,627 43,906 45,223 46,580 7.00 7.21 7.43 7.65 7.88 8.11 8.36 8.61 8.87 9.13 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 0 0 0 0 0 0 0 0 0 0 1,733 1,541 1,270 1,436 1,919 2,356 2,758 2,615 1,766 1,575 65,226 59,635 43,219 73,111 82,347 108,471 114,940 96,905 46,120 81,437 Beginning Balance Inflated Expenditures @ 2.5% Reserve Contribution Lots/month @ 425 Percentage Increase Special Assessments / Other Interest Pre Tax @ 2.50% Ending Balance 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 81,437 92,910 121,413 120,977 118,722 105,852 62,448 55,798 85,235 95,594 38,657 23,559 54,326 57,640 69,640 101,100 65,397 31,309 52,650 66,844 47,977 49,416 50,898 52,425 53,998 55,618 57,287 59,006 60,776 62,599 9.41 9.69 9.98 10.28 10.59 10.91 11.23 11.57 11.92 12.27 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 0 0 0 0 0 0 0 0 0 0 2,152 2,646 2,992 2,959 2,773 2,078 1,460 1,741 2,232 2,337 92,910 121,413 120,977 118,722 105,852 62,448 55,798 85,235 95,594 93,685 Beginning Balance Inflated Expenditures @ 2.5% Reserve Contribution Lots/month @ 425 Percentage Increase Special Assessments / Other Interest Pre Tax @ 2.50% Ending Balance 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 93,685 37,530 68,160 95,495 148,886 162,906 125,210 80,917 111,803 121,546 122,252 37,085 43,089 20,081 62,398 116,000 123,825 50,791 74,815 23,288 64,477 66,411 68,403 70,455 72,569 74,746 76,988 79,298 81,677 84,127 12.64 13.02 13.41 13.81 14.23 14.66 15.10 15.55 16.02 16.50 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 0 0 0 0 0 0 0 0 0 0 1,620 1,305 2,020 3,017 3,849 3,557 2,545 2,379 2,881 3,799 37,530 68,160 95,495 148,886 162,906 125,210 80,917 111,803 121,546 186,184 Browning Reserve Group 2010 13

Fund Balance 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances Section III-a $200,000 $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Years Browning Reserve Group 2010 14

Year Beginning Balance 30 Year Reserve Funding Plan Including Fully Funded Balance and % Funded Fully Funded Balance Percent Funded Inflated Expenditures @ 2.50% Reserve Contribution Special Assessments & Other Contributions Interest Section IV Ending Balance 2010 75,131 139,111 46.9% 47,338 35,700 0 1,733 65,226 2011 65,226 129,510 46.0% 43,904 36,771 0 1,541 59,635 2012 59,635 126,912 34.1% 55,560 37,874 0 1,270 43,219 2013 43,219 113,409 64.5% 10,554 39,010 0 1,436 73,111 2014 73,111 147,198 55.9% 32,864 40,180 0 1,919 82,347 2015 82,347 160,196 67.7% 17,616 41,385 0 2,356 108,471 2016 108,471 190,236 60.4% 38,916 42,627 0 2,758 114,940 2017 114,940 200,488 48.3% 64,557 43,906 0 2,615 96,905 2018 96,905 185,853 24.8% 97,773 45,223 0 1,766 46,120 2019 46,120 137,970 59.0% 12,838 46,580 0 1,575 81,437 2020 81,437 177,145 52.4% 38,657 47,977 0 2,152 92,910 2021 92,910 192,063 63.2% 23,559 49,416 0 2,646 121,413 2022 121,413 224,089 54.0% 54,326 50,898 0 2,992 120,977 2023 120,977 226,672 52.4% 57,640 52,425 0 2,959 118,722 2024 118,722 227,252 46.6% 69,640 53,998 0 2,773 105,852 2025 105,852 216,916 28.8% 101,100 55,618 0 2,078 62,448 2026 62,448 175,488 31.8% 65,397 57,287 0 1,460 55,798 2027 55,798 171,088 49.8% 31,309 59,006 0 1,741 85,235 2028 85,235 203,059 47.1% 52,650 60,776 0 2,232 95,594 2029 95,594 215,625 43.4% 66,844 62,599 0 2,337 93,685 2030 93,685 215,943 17.4% 122,252 64,477 0 1,620 37,530 2031 37,530 162,911 41.8% 37,085 66,411 0 1,305 68,160 2032 68,160 197,520 48.3% 43,089 68,403 0 2,020 95,495 2033 95,495 228,555 65.1% 20,081 70,455 0 3,017 148,886 2034 148,886 285,705 57.0% 62,398 72,569 0 3,849 162,906 2035 162,906 302,709 41.4% 116,000 74,746 0 3,557 125,210 2036 125,210 267,043 30.3% 123,825 76,988 0 2,545 80,917 2037 80,917 224,355 49.8% 50,791 79,298 0 2,379 111,803 2038 111,803 257,398 47.2% 74,815 81,677 0 2,881 121,546 2039 121,546 268,631 69.3% 23,288 84,127 0 3,799 186,184 Browning Reserve Group 2010 15

Reserve Fund Balance Forecast Component Method Section V Reserve Component Current Repl. Cost Useful Life Remaining Life Estimated Future Replacement Costs Per Year 2010 Fully Funded Balance 2011 Fully Funded Balance % Per Year Straight Line 2011 Line Item Contribution based on Cash Flow Method 01000 - Paving 100 - Asphalt: Sealing {5,388 Sq. Ft. Pool Parking Lot} 647 4 2 679 170 323 497 0.44% 160 102 - Asphalt: Sealing {62,209 Sq. Ft. Asphalt Pathways} 8,087 4 0 8,087 2,022 8,087 2,072 5.18% 1,906 200 - Asphalt: Repairs: On-going {Pool Parking Lot & Pathways} 1,000 4 0 1,000 250 1,000 256 0.64% 236 Sub-total [01000 - Paving] 9,734 9,766 2,442 9,410 2,826 6.26% 2,302 02000 - Concrete 200 - Sidewalks, Curbs & Gutters {160 Sq. Ft. Residential Sidewalks, Curbs & Gutters} 480 2 5 543 91 80 98 0.23% 85 360 - Stamped {160 Sq. Ft. Redhorse Sidewalks & Red Paver} 960 2 0 960 480 960 492 1.23% 453 Sub-total [02000 - Concrete] 1,440 1,503 571 1,040 590 1.46% 538 03000 - Painting: Exterior 150 - Stain {219 Lin. Ft. Decorative Wood Fencing/Redhorse Way} 296 6 2 311 52 197 253 0.13% 49 152 - Stain {1,450 Wood Posts @ Fences/Phase I (50%)} 3,625 6 0 3,625 604 3,625 619 1.55% 570 153 - Stain {1,450 Lin. Ft. Wood @ Posts Fences /Phase II (50%)} 3,625 6 1 3,716 619 3,021 3,716 1.59% 584 300 - Trim {Pool Bldg Appurtenances, Shade Structures, Turrets} 1,500 5 1 1,538 308 1,200 1,538 0.79% 290 400 - Wrought Iron {9,586 Lin. Ft. Pathways & Pool Area/Phase I (50%)} 401 - Wrought Iron {9,586 Lin. Ft. Pathways & Pool Area/Phase II (50%)} 28,758 6 1 29,477 4,913 23,965 29,477 12.60% 4,632 28,758 6 2 30,214 5,036 19,172 24,564 12.91% 4,748 510 - Mailboxes {425 Residential Mailboxes} 6,375 15 11 8,365 558 1,700 2,178 1.43% 526 520 - Fire Hydrants {51 Fire Hydrants} 1,275 15 10 1,632 109 425 523 0.28% 103 540 - Utility Boxes {Utility Boxes} 3,000 15 10 3,840 256 1,000 1,230 0.66% 241 990 - Miscellaneous {Entrance Monument} 1,350 6 1 1,384 231 1,125 1,384 0.59% 217 Sub-total [03000 - Painting: Exterior] 78,562 84,100 12,684 55,430 65,481 32.52% 11,960 04000 - Structural Repairs 300 - Trellis {Pool Area & Bus Stop} 7,000 25 21 11,757 470 1,120 1,435 1.21% 443 Browning Reserve Group 2010 16

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Life Remaining Life Estimated Future Replacement Costs Per Year 2010 Fully Funded Balance 2011 Fully Funded Balance % Per Year Straight Line 2011 Line Item Contribution based on Cash Flow Method 18000 - Landscaping 100 - Irrigation: Misc. {Irrigation System} 1,000 1 1 1,025 513 500 1,025 1.31% 483 490 - Bark Replacement {Common Area} 1,500 1 0 1,500 1,500 1,500 1,538 3.85% 1,414 500 - Tree Maintenance {Common Area} 1,500 2 0 1,500 750 1,500 769 1.92% 707 530 - Plant Replacement {Common Area} 1,800 1 1 1,845 923 900 1,845 2.37% 870 532 - Plant Replacement {Cactus} 2,000 2 0 2,000 1,000 2,000 1,025 2.56% 943 920 - Miscellaneous {Perma Bark/Rock - Common Area} 1,000 2 1 1,025 513 500 1,025 1.31% 483 Sub-total [18000 - Landscaping] 8,800 8,895 5,198 6,900 7,226 13.33% 4,901 18500 - Lakes / Ponds 240 - Fountain {Fountain} 3,500 20 16 5,196 260 700 897 0.67% 245 600 - Pump / Motor {Fountain} 1,500 10 5 1,697 170 750 923 0.44% 160 990 - Miscellaneous {Fountain}[nr:1] 1,000 1 0 0 0 1,000 0 0.00% 0 Sub-total [18500 - Lakes / Ponds] 6,000 6,893 429 2,450 1,819 1.10% 405 19000 - Fencing 350 - Wood: Repair {1,450 Pathway & Pool Fence Posts (5.0%)} 6,126 2 0 6,126 3,063 6,126 3,139 7.85% 2,888 370 - Wood: Decorative {219 Lin. Ft. Redhorse Decorative Wood Fence} 4,380 20 16 6,502 325 876 1,122 0.83% 307 390 - Vinyl {Perimeter Fencing} 1,200 1 0 1,200 1,200 1,200 1,230 3.08% 1,131 Sub-total [19000 - Fencing] 11,706 13,828 4,588 8,202 5,492 11.76% 4,326 20000 - Lighting 200 - Street Lights {2 Street Lights} 3,300 2 21 5,543 252 150 161 0.65% 238 210 - Street: Paint & Bulbs {88 Light Poles/Phase I (50%)} 7,700 10 7 9,153 915 2,310 3,157 2.35% 863 211 - Street: Paint & Bulbs {88 Light Poles/Phase II (50%)} 7,700 10 8 9,382 938 1,540 2,368 2.41% 885 260 - Bollard Lights {38 Common Area & Pool (10.5%)} 1,200 2 2 1,261 420 400 615 1.08% 396 300 - Common Area {293 Various Light Fixture Types (5.1%)} 600 1 1 615 308 300 615 0.79% 290 Sub-total [20000 - Lighting] 20,500 25,953 2,833 4,700 6,916 7.27% 2,671 26000 - Outdoor Equipment 100 - Tot Lot {Pool & Redhorse Way} 51,076 20 15 73,973 3,699 12,769 15,706 9.48% 3,487 30000 - Miscellaneous Browning Reserve Group 2010 17

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Life Remaining Life Estimated Future Replacement Costs Per Year 2010 Fully Funded Balance 2011 Fully Funded Balance % Per Year Straight Line 2011 Line Item Contribution based on Cash Flow Method 960 - Misc. Maint. Repairs {Stone Benches, Walls, Pedestals, Building Décor} 500 1 0 500 500 500 513 1.28% 471 32000 - Undesignated 100 - Miscellaneous {66 Bollard Lights & Barrier Posts} 990 10 5 1,120 112 495 609 0.29% 106 Common Area Pool 03000 - Painting: Exterior 110 - Stucco {Pool Buildings} 1,100 8 4 1,214 152 550 705 0.39% 143 04000 - Structural Repairs 910 - Building Maintenance {Storage, Pool Equip & Restroom Buildings} 1,000 3 3 1,077 269 250 342 0.69% 254 05000 - Roofing 200 - Low Slope: BUR {10 Squares- Storage, Pool Equip & RR Buildings} 2,000 15 11 2,624 175 533 683 0.45% 165 12000 - Pool 110 - Resurface {228 Lin. Ft. Pool} 14,820 12 8 18,057 1,505 4,940 6,329 3.86% 1,419 600 - Deck: Re-Surface {80 Sq. Ft. Pool Area} 960 5 10 1,229 112 87 98 0.29% 105 700 - Equipment: Replacement {Pool Equipment (50%)} 2,250 5 2 2,364 473 1,350 1,845 1.21% 446 720 - Heater {Pool Heater #1}[nr:1] 600 1 0 0 0 600 0 0.00% 0 722 - Heater {2 Pool Heater #1 & #2} 5,000 10 5 5,657 566 2,500 3,075 1.45% 533 910 - Furniture: Chairs {35 Pool Area (48.5%)} 2,546 5 2 2,675 535 1,528 2,088 1.37% 504 990 - Miscellaneous {Entrance Gate}[nr:1] 2,300 1 0 0 0 2,300 0 0.00% 0 990 - Miscellaneous {Pool Cover} 6,000 10 6 6,958 696 2,400 3,075 1.78% 656 Sub-total [12000 - Pool] 34,476 36,940 3,886 15,705 16,511 9.96% 3,664 19000 - Fencing Browning Reserve Group 2010 18

Saguaro Canyon Subdivision Homeowners Association Component Listing Included Components Section VI 01000 - Paving 100 - Asphalt: Sealing Useful Life 4 5,388 Sq. Ft. Pool Parking Lot Quantity 5,388 Unit of Measure Square Feet Cost /SqFt $0.120 100.00% Total Cost/Study $647 Replacement Year 2012 Future Cost $679 This is to apply two coats of an asphalt emulsion product such as Armor Seal #A-150. Includes asphalt surface preparation prior to application. Square footage is approximate and based on ground measurements by BRG. Cost and useful life provided by Cameron Brown of Bregg Asphalt Co. 2 Costing provided by Bregg Asphalt Co. Browning Reserve Group 2010 20

Component Listing Included Components 01000 - Paving 102 - Asphalt: Sealing Useful Life 4 62,209 Sq. Ft. Asphalt Pathways Quantity 62,209 Unit of Measure Square Feet Cost /SqFt $0.130 100.00% Total Cost/Study $8,087 Replacement Year 2010 Future Cost $8,087 This is to apply two coats of an asphalt emulsion product such as Armor Seal #A-150. Includes asphalt surface preparation prior to application. The first application is by squeegee or broom and the second is by spraying. Cost per square foot assumes that grass is trimmed off of the asphalt edges by landscaper or other vendor. Square footage is approximate based on ground measurements by BRG. Cost estimate and useful life provided by Cameron Brown of Bregg Asphalt Co. 0 Costing provided by Bregg Asphalt Co. 200 - Asphalt: Repairs: On-going Useful Life 4 Pool Parking Lot & Pathways Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 100.00% Total Cost/Study $1,000 Replacement Year 2010 Future Cost $1,000 This is for miscellaneous repairs including crackfill, skin patching and minor dig out & fill for both the parking lot and the pathways. 0 Browning Reserve Group 2010 21

Component Listing Included Components 02000 - Concrete 200 - Sidewalks, Curbs & Gutters 160 Sq. Ft. Residential Sidewalks, Curbs & Gutters Useful Life 2 Quantity 160 Unit of Measure Square Feet Cost /SqFt $3.00 100.00% Total Cost/Study $480 Replacement Year 2015 Future Cost $543 This is to have funds available for periodic repair, replacement or grinding of failed concrete located at residential sidewalks, curbs and gutters to remove trip hazards and maintain functionality. Since the concrete useful life exceeds the scope of this study, this provides for repairs only and not full replacement. Cost estimate provided by Rich Stephens of Stephens Construction. 5 Costing provided by Stephens Construction 360 - Stamped 160 Sq. Ft. Redhorse Sidewalks & Red Paver Useful Life 2 Quantity 160 Unit of Measure Square Feet Cost /SqFt $6.00 100.00% Total Cost/Study $960 Replacement Year 2010 Future Cost $960 0 This is to replace the stamped concrete sidewalks along Redhorse Way as well as the red paver look concrete at the 14 handicap corner ramps and red paver circles at 2 intersections. Since the concrete useful life exceeds the scope of this study, this provides for repairs only and not full replacement. Cost estimate is provided by Rich Stephens of Stephens Construction. Costing provided by Stephens Construction Browning Reserve Group 2010 22

Component Listing Included Components 03000 - Painting: Exterior 150 - Stain 219 Lin. Ft. Decorative Wood Fencing/Redhorse Way Useful Life 6 Quantity 219 Unit of Measure Linear Feet Cost /l.f. $1.35 100.00% Total Cost/Study $296 Replacement Year 2012 Future Cost $311 2 This is to paint the decorative wood portion of the fence with a premium full body stain such as Sherwin Williams Wood Guard semi-transparent stain or equal. Includes preparation, power washing, sanding, scraping and caulking as needed. Linear footage is approximate and based on ground measurements by BRG. Cost estimate and useful life provided by Rich Stephens of Stephens Construction. 152 - Stain Costing provided by Stephens Construction Useful Life 6 1,450 Wood Posts @ Fences/Phase I (50%) Quantity 1,450 Unit of Measure Items Cost /Itm $5.00 Qty * $/Itm $7,250 50.00% Total Cost/Study $3,625 Replacement Year 2010 Future Cost $3,625 This is to prep and paint the wood posts that are part of the wrought iron fencing with a premium full body stain such as Sherwin Williams Wood Guard semi-transparent stain or equal. Post count is approximate by BRG. Cost estimate and useful life provided by Rich Stephens, Stephens Construction. 0 Costing provided by Stephens Construction Browning Reserve Group 2010 23

Component Listing Included Components 03000 - Painting: Exterior 153 - Stain 1,450 Lin. Ft. Wood @ Posts Fences /Phase II (50%) Useful Life 6 Quantity 1,450 Unit of Measure Linear Feet Cost /l.f. $5.00 Qty * $/l.f. $7,250 50.00% Total Cost/Study $3,625 Replacement Year 2011 Future Cost $3,716 This is to prep and paint the wood posts that are part of the wrought iron fences with a premium full body stain such as Sherwin Williams Wood Guard clear stain or equal. Includes preparation, power washing, sanding, scraping and caulking as needed. Post count is approximate by BRG. Cost estimate and useful life provided by Rich Stephens, Stephens Construction. 1 Costing provided by Stephens Construction 300 - Trim Pool Bldg Appurtenances, Shade Structures, Turrets Useful Life 5 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,500 100.00% Total Cost/Study $1,500 Replacement Year 2011 Future Cost $1,537 1 This is to paint the wood trim & appurtenances on the pool buildings, the shade structures at the pool and bus stop, and wood appurtenances on both turrets. Material to be used is Sherwin Williams Wood Guard semitransparent stain or equal. Cost estimate and useful life provided by Rich Stephens of Stephens Construction. Costing provided by Stephens Construction Browning Reserve Group 2010 24

Component Listing Included Components 03000 - Painting: Exterior 400 - Wrought Iron 9,586 Lin. Ft. Pathways & Pool Area/Phase I (50%) Useful Life 6 Quantity 9,586 Unit of Measure Linear Feet Cost /l.f. $6.00 Qty * $/l.f. $57,516 50.00% Total Cost/Study $28,758 Replacement Year 2011 Future Cost $29,477 This is to paint the wrought iron. Includes preparation, sanding, scraping and primer as necessary. Linear footage is approximate and based on ground measurements by BRG. Cost and useful life provided by Rich Stephens of Stephens Construction 1 Costing provided by Stephens Construction 401 - Wrought Iron 9,586 Lin. Ft. Pathways & Pool Area/Phase II (50%) Useful Life 6 Quantity 9,586 Unit of Measure Linear Feet Cost /l.f. $6.00 Qty * $/l.f. $57,516 50.00% Total Cost/Study $28,758 Replacement Year 2012 Future Cost $30,214 This is to paint the wrought iron. Includes preparation, sanding, scraping and primer as necessary. Linear footage is approximate and based on ground measurements by BRG. Cost and useful life provided by Rich Stephens of Stephens Construction 2 Costing provided by Stephens Construction Browning Reserve Group 2010 25

Component Listing Included Components 03000 - Painting: Exterior 510 - Mailboxes Useful Life 15 425 Residential Mailboxes Quantity 425 Unit of Measure Items Cost /Itm $15.00 11 100.00% Total Cost/Study $6,375 Replacement Year 2021 Future Cost $8,365 This is to prep and paint the mailboxes in the common area. Cost estimate provided by Rich Stephens of Stephens Construction. Costing provided by Stephens Construction 520 - Fire Hydrants Useful Life 15 51 Fire Hydrants Quantity 51 Unit of Measure Items Cost /Itm $25.00 10 100.00% Total Cost/Study $1,275 Replacement Year 2020 Future Cost $1,632 This is to prep and paint the fire hydrants with an industrial primer and exterior semi-gloss industrial enamel. Count is approximate by BRG. Browning Reserve Group 2010 26

Component Listing Included Components 03000 - Painting: Exterior 540 - Utility Boxes Useful Life 15 Utility Boxes Quantity 1 Unit of Measure Lump Sum Cost /LS $3,000 10 100.00% Total Cost/Study $3,000 Replacement Year 2020 Future Cost $3,840 This is to prep and paint the common area utility boxes with an industrial primer and exterior semi-gloss industrial enamel. An exact count was not determined therefore a lump sum was provided as an estimate. 990 - Miscellaneous Useful Life 6 Entrance Monument Quantity 1 Unit of Measure Lump Sum Cost /LS $1,350 100.00% Total Cost/Study $1,350 Replacement Year 2011 Future Cost $1,384 This is to paint the monument beam with Sherwin Williams Wood Guard semi-transparent stain or equal material. Cost estimate and useful life provided by Rich Stephens of Stephens Construction. 1 Costing provided by Stephens Construction Browning Reserve Group 2010 27

Component Listing Included Components 04000 - Structural Repairs 300 - Trellis Useful Life 25 Pool Area & Bus Stop Quantity 1 Unit of Measure Lump Sum Cost /LS $7,000 21 100.00% Total Cost/Study $7,000 Replacement Year 2031 Future Cost $11,757 This is to replace both of the shade structures/trellis. Material to be of like quality. Cost estimate and useful life provided by Rich Stephens of Stephens Construction. Costing provided by Stephens Construction 18000 - Landscaping 100 - Irrigation: Misc. Useful Life 1 Irrigation System Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 100.00% Total Cost/Study $1,000 Replacement Year 2011 Future Cost $1,025 This is to have funds available to replace the 1 1/2" valves and the 6 and 12 station timers/controllers as needed. Valve costs are $90 each and timers/controllers are $159 each (6 station); $256 each (12 station). Cost provided by Dean Duckett of Sunshine Landscape, Inc. 1 Costing provided by Sunshine Landscape Inc. Browning Reserve Group 2010 28

Component Listing Included Components 18000 - Landscaping 490 - Bark Replacement Useful Life 1 Common Area Quantity 1 Unit of Measure Lump Sum Cost /LS $1,500 100.00% Total Cost/Study $1,500 Replacement Year 2010 Future Cost $1,500 This is for replacing landscape bark in the bedding areas above the maintenance contract. Cost estimate and useful life provided by Dean Duckett of Sunshine Landscape, Inc. 0 Costing provided by Sunshine Landscape Inc. 500 - Tree Maintenance Useful Life 2 Common Area Quantity 1 Unit of Measure Lump Sum Cost /LS $1,500 100.00% Total Cost/Study $1,500 Replacement Year 2010 Future Cost $1,500 This is to prune, remove and replace trees as needed to enhance the association's landscaping and to avoid branch and root damage to nearby objects. This is in excess of the operating budget. 0 Browning Reserve Group 2010 29

Component Listing Included Components 18000 - Landscaping 530 - Plant Replacement Useful Life 1 Common Area Quantity 1 Unit of Measure Lump Sum Cost /LS $1,800 100.00% Total Cost/Study $1,800 Replacement Year 2011 Future Cost $1,845 This is for landscape plant replacement on an as needed basis above the maintenance contract and excluding cactus. Cost estimate and useful life provided by Dean Duckett of Sunshine Landscape, Inc. 1 Costing provided by Sunshine Landscape Inc. 532 - Plant Replacement Useful Life 2 Cactus Quantity 1 Unit of Measure Lump Sum Cost /LS $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2010 Future Cost $2,000 This is to have funds available to replace the various types of cactus as needed. 0 Browning Reserve Group 2010 30

Component Listing Included Components 18000 - Landscaping 920 - Miscellaneous Useful Life 2 Perma Bark/Rock - Common Area Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 100.00% Total Cost/Study $1,000 Replacement Year 2011 Future Cost $1,025 This is to have funds available in excess of the operating budget to refurbish the existing perma bark/rock bedding in the common area planters. 1 18500 - Lakes / Ponds 240 - Fountain Useful Life 20 Fountain Quantity 1 Unit of Measure Lump Sum Cost /LS $3,500 16 100.00% Total Cost/Study $3,500 Replacement Year 2026 Future Cost $5,196 This to repair or replace fountain components including liner and operating equipment other than the pump. Browning Reserve Group 2010 31

Component Listing Included Components 18500 - Lakes / Ponds 600 - Pump / Motor Useful Life 10 Fountain Quantity 1 Unit of Measure Items Cost /Itm $1,500 100.00% Total Cost/Study $1,500 Replacement Year 2015 Future Cost $1,697 This is to replace the pump impeller without replacing the entire pump. A full replacement may be required at some future time (today's cost is $4,000). Cost estimate provided by Dean Duckett from Sunshine Landscape Inc. 5 Costing provided by Sunshine Landscape Inc. 990 - Miscellaneous Useful Life 1 Fountain Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 100.00% 0 Treatment [nr:1] Total Cost/Study $1,000 Replacement Year 2010 Future Cost $1,000 This is to add cobblestone rocks on both sides of the fountain in order to keep the liner from rising. Cost estimate provided by Rich Stephens of Stephens Construction. Costing provided by Stephens Construction Browning Reserve Group 2010 32

Component Listing Included Components 19000 - Fencing 350 - Wood: Repair Useful Life 2 1,450 Pathway & Pool Fence Posts (5.0%) Quantity 1,450 Unit of Measure Items Cost /Itm $85.00 Qty * $/Itm $123,250 4.97% Total Cost/Study $6,126 Replacement Year 2010 Future Cost $6,126 This is to replace the wood fence posts supporting the wrought iron sections. Count is approximate by BRG. Cost estimate provided by Rich Stephens of Stephens Construction. 0 Costing provided by Stephens Construction 370 - Wood: Decorative 219 Lin. Ft. Redhorse Decorative Wood Fence Useful Life 20 Quantity 219 Unit of Measure Linear Feet Cost /l.f. $20.00 16 100.00% Total Cost/Study $4,380 Replacement Year 2026 Future Cost $6,502 This is to replace the decorative wood fencing material. Linear footage approximate and based on ground measurements by BRG. Cost estimate provided by Rich Stephens of Stephens Construction. Costing provided by Stephens Construction Browning Reserve Group 2010 33

Component Listing Included Components 19000 - Fencing 390 - Vinyl Useful Life 1 Perimeter Fencing Quantity 1 Unit of Measure Lump Sum Cost /LS $1,200 100.00% Total Cost/Study $1,200 Replacement Year 2010 Future Cost $1,200 This is to repair/replace approximately five 8 foot sections @$30 per linear foot of fencing annually. The frequency is based on the current level of vandalism as well as information regarding the inadequate development grading of the ground/base that is causing buckling, sagging and leaning in many sections. Cost estimate provided by Mark at Boise River Fence. 0 Costing provided by Boise River Fence 20000 - Lighting 200 - Street Lights Useful Life 2 2 Street Lights Quantity 2 Unit of Measure Items Cost /Itm $1,650 21 100.00% Total Cost/Study $3,300 Replacement Year 2031 Future Cost $5,543 This is to replace a percentage of the association street lights. Since the core light standard and fixture useful life exceeds the scope of this study, this component is for partial replacement only. Count is approximate by BRG. Antique Pendant Style: 35 Standard Light Style: 53 Browning Reserve Group 2010 34

Component Listing Included Components 20000 - Lighting 210 - Street: Paint & Bulbs Useful Life 10 88 Light Poles/Phase I (50%) Quantity 88 Unit of Measure Items Cost /Itm $175 Qty * $/Itm $15,400 50.00% Total Cost/Study $7,700 Replacement Year 2017 Future Cost $9,153 This is to paint the light poles with a high quality exterior metal enamel. Includes funds for replacement of the bulbs if needed. Cost is $140 for bulbs and $110 to paint. Count is approximate by BRG. Cost estimate provided by Rich Stephens of Stephens Construction. Antique Pendant Style: 35 Standard Light Style: 53 7 Costing provided by Stephens Construction 211 - Street: Paint & Bulbs Useful Life 10 88 Light Poles/Phase II (50%) Quantity 88 Unit of Measure Items Cost /Itm $175 Qty * $/Itm $15,400 50.00% Total Cost/Study $7,700 Replacement Year 2018 Future Cost $9,382 This is to paint the light poles with a high quality exterior metal enamel. Includes funds for replacement of the bulbs if needed. Cost is $140 for bulbs and $110 to paint. Count is approximate by BRG. Cost estimate provided by Rich Stephens of Stephens Construction. 8 Antique Pendant Style: 35 Standard Light Style: 53 Costing provided by Stephens Construction Browning Reserve Group 2010 35

Component Listing Included Components 20000 - Lighting 260 - Bollard Lights Useful Life 2 38 Common Area & Pool (10.5%) Quantity 38 Unit of Measure Items Cost /Itm $300 Qty * $/Itm $11,400 10.53% Total Cost/Study $1,200 Replacement Year 2012 Future Cost $1,261 This is to repair and/or replace the bollard lights. This component assumes that existing wiring and conduits will be reused. Count is approximate by BRG. 2 300 - Common Area Useful Life 1 293 Various Light Fixture Types (5.1%) Quantity 293 Unit of Measure Items Cost /Itm $40.00 Qty * $/Itm $11,720 5.12% Total Cost/Study $600 Replacement Year 2011 Future Cost $615 This is to have funds available to replace a percentage of all of the common area lights as needed on an annual basis. Count is approximate by BRG. Monument Entry Lights: 2 Landscaping Flood Lights: 237 Landscaping Spot Lights: 34 Large Flood Lights on McMillan: 20 1 Browning Reserve Group 2010 36

Component Listing Included Components 26000 - Outdoor Equipment 100 - Tot Lot Useful Life 20 Pool & Redhorse Way Quantity 1 Unit of Measure Lump Sum Cost /LS $51,076 This is to replace the tot lot equipment at both locations. Redhorse Way - $15,926; Manuf Ref #0512042 Pool Area - $35,150; Manuf Ref #0512045 Purchase was 2005 with a 10 year warranty. 15 100.00% Total Cost/Study $51,076 Replacement Year 2025 Future Cost $73,973 Costing provided by Playwood Systems, Inc. 30000 - Miscellaneous 960 - Misc. Maint. Repairs Stone Benches, Walls, Pedestals, Building Décor Useful Life 1 Quantity 1 Unit of Measure Lump Sum Cost /LS $500 100.00% Total Cost/Study $500 Replacement Year 2010 Future Cost $500 This is for on-going masonry re-mortar, repairs and maintenance at all referenced locations including the stone pad at the bus stop and rock retaining walls in the common area planters. The repairs will include use of liquidnail adhesive. Repairs are scheduled on an annual basis due to the heavy use at several locations and will be a continuing problem. Since the core masonry useful life exceeds the scope of this thirty year study, this component provides for repairs only and not full replacement. Cost estimate provided by Rich Stephens of Stephens Construction. 0 Costing provided by Stephens Construction Browning Reserve Group 2010 37

Component Listing Included Components 32000 - Undesignated 100 - Miscellaneous Useful Life 10 66 Bollard Lights & Barrier Posts Quantity 66 Unit of Measure Items Cost /Itm $15.00 100.00% Total Cost/Study $990 Replacement Year 2015 Future Cost $1,120 This is to have funds available to paint the bollard lights and barrier posts. 38 2' Bollard lights in common areas; 1 3' Bollard light at bus stop; 27 Barrier posts at pathways; 5 Common Area Pool 03000 - Painting: Exterior 110 - Stucco Useful Life 8 Pool Buildings Quantity 1 Unit of Measure Lump Sum Cost /LS $1,100 100.00% Total Cost/Study $1,100 Replacement Year 2014 Future Cost $1,214 This is to paint the stucco surfaces with an elastomeric type material. Cost and useful life provided by Rich Stephens of Stephens Construction. 4 Costing provided by Stephens Construction Browning Reserve Group 2010 38

Component Listing Included Components Common Area Pool 04000 - Structural Repairs 910 - Building Maintenance Useful Life 3 Storage, Pool Equip & Restroom Buildings Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 This is for on-going repairs as needed to the buildings. Such as: Repair stucco; Repair/replace wood appurtenances; Repair/replace doors - 8; Repair/replace windows - 14; Repair/replace interior/exterior wood benches & shelves; 100.00% Total Cost/Study $1,000 Replacement Year 2013 Future Cost $1,077 3 05000 - Roofing 200 - Low Slope: BUR 10 Squares- Storage, Pool Equip & RR Buildings Useful Life 15 Quantity 10 Unit of Measure Squares Cost /Sqrs $200 11 100.00% Total Cost/Study $2,000 Replacement Year 2021 Future Cost $2,624 This is to replace the existing torch down roof with a thermoplastic polyolefin (TPO) rubber type material applied with heat weld. Square count is approximate and based on ground measurements by BRG. Cost estimate and useful life provided by Rich Stephens of Stephens Construction. Costing provided by Stephens Construction Browning Reserve Group 2010 39

Component Listing Included Components Common Area Pool 12000 - Pool 110 - Resurface Useful Life 12 228 Lin. Ft. Pool Quantity 228 Unit of Measure Linear Feet Cost /l.f. $65.00 100.00% Total Cost/Study $14,820 Replacement Year 2018 Future Cost $18,057 This is to resurface the pool including replacing the row of waterline tile. Includes start-up costs. Linear footage is approximate based on ground measurements by BRG. Cost and useful life provided by Scott Heusser at Custom Pools & Patio. 8 Costing provided by Custom Pools & Patio 600 - Deck: Re-Surface Useful Life 5 80 Sq. Ft. Pool Area Quantity 80 Unit of Measure Square Feet Cost /SqFt $12.00 10 100.00% Total Cost/Study $960 Replacement Year 2020 Future Cost $1,229 This is to have funds available for concrete deck repairs on an ongoing basis. Since the concrete useful life exceeds the scope of this study, this provides for repairs only and not full replacement. Browning Reserve Group 2010 40

Component Listing Included Components Common Area Pool 12000 - Pool 700 - Equipment: Replacement Useful Life 5 Pool Equipment (50%) Quantity 1 Unit of Measure Lump Sum Cost /LS $4,500 Qty * $/LS $4,500 50.00% Total Cost/Study $2,250 Replacement Year 2012 Future Cost $2,364 This is to replace the pool equipment. Since not all equipment will fail simultaneously, this component provides for one half replacement every five years. Cost estimate and useful life provided by Dan Huff of Treasure Valley Pool Maintenance. 2 Triton II Sand Filters @ $400 each = $800 Sand replacement 2 @ $150 each = $300 2 Pentair Whisperflo 1 1/2 HP pumps @ $800 each = $1,600 Saline system cells 2 @ $700 each = $1,400 Various valves @ $400 Total replacement cost = $4,500 2 Costing provided by Treasure Valley Pool Maintenance 720 - Heater Useful Life 1 Pool Heater #1 Quantity 1 Unit of Measure Lump Sum Cost /LS $600 100.00% 0 Treatment [nr:1] Total Cost/Study $600 Replacement Year 2010 Future Cost $600 This is to replace the heat exchanger in heater #1 in 2010. Cost provided by Dan Huff of Treasure Valley Pool Maintenance. Costing provided by Treasure Valley Pool Maintenance Browning Reserve Group 2010 41

Component Listing Included Components Common Area Pool 12000 - Pool 722 - Heater Useful Life 10 2 Pool Heater #1 & #2 Quantity 2 Unit of Measure Items Cost /Itm $2,500 100.00% Total Cost/Study $5,000 Replacement Year 2015 Future Cost $5,657 This is to replace both Pentair Minimax NT heaters. Cost estimate and useful life provided by Dan Huff of Treasure Valley Pool Maintenance. 5 Costing provided by Treasure Valley Pool Maintenance 910 - Furniture: Chairs Useful Life 5 35 Pool Area (48.5%) Quantity 35 Unit of Measure Items Cost /Itm $150 Qty * $/Itm $5,250 48.50% Total Cost/Study $2,546 Replacement Year 2012 Future Cost $2,675 This is to replace the chairs (14) and chaise lounges (21). Count is approximate by BRG. The projection is based on replacing 50% of the pool furniture every five years. 2 Browning Reserve Group 2010 42

Component Listing Included Components Common Area Pool 12000 - Pool 990 - Miscellaneous Useful Life 1 Entrance Gate Quantity 1 Unit of Measure Lump Sum Cost /LS $2,300 100.00% 0 Treatment [nr:1] Total Cost/Study $2,300 Replacement Year 2010 Future Cost $2,300 This is to replace the pool entrance gate with heavy metal. Cost includes adaptation of existing key entry system to new gate. Cost from Selmir Alic of Boise Iron Works. Costing provided by Boise Iron Works 990 - Miscellaneous Useful Life 10 Pool Cover Quantity 1 Unit of Measure Lump Sum Cost /LS $6,000 100.00% Total Cost/Study $6,000 Replacement Year 2016 Future Cost $6,958 This is to replace the pool cover. Cost estimate and useful life provided by Dan Huff of Treasure Valley Pool & Maintenance. 6 Costing provided by Treasure Valley Pool Maintenance Browning Reserve Group 2010 43

Component Listing Included Components Common Area Pool 19000 - Fencing 200 - Wrought Iron Useful Life 40 361 Lin. Ft. Pool Fence Quantity 361 Unit of Measure Linear Feet Cost /l.f. $40.00 100.00% 0 Treatment [nr:1] Total Cost/Study $14,440 Replacement Year 2010 Future Cost $14,440 This is to replace the existing 5' pool wrought iron fencing with 7' wrought iron fencing for security purposes. Cost includes tear out and removal of existing fencing. Linear footage is approximate and based on ground measurements by BRG. Cost estimate and useful life provided by Selmir Alic of Boise Iron Works. Costing provided by Boise Iron Works 26000 - Outdoor Equipment 280 - Picnic Tables Useful Life 15 3 Pool Area Quantity 3 Unit of Measure Items This is to replace the picnic tables. Cost /Itm $779 10 100.00% Total Cost/Study $2,337 Replacement Year 2020 Future Cost $2,992 Manufacturers warranty is 5 years, 1 year remaining as equipment was not delivered until late in 2005 as per Jessica of Playwood Systems, Inc. Costing provided by Playwood Systems, Inc. Browning Reserve Group 2010 44

Component Listing Included Components Common Area Pool 26000 - Outdoor Equipment 306 - Benches Useful Life 15 6 Pool Area & Redhorse Tot Lot Quantity 6 Unit of Measure Items This is to replace the benches. Cost /Itm $399 10 100.00% Total Cost/Study $2,394 Replacement Year 2020 Future Cost $3,065 Manufacturers warranty is five years, 1 year remaining due to delivery in late 2005 as per Jessica of Playwood Systems, Inc. Costing provided by Playwood Systems, Inc. 30000 - Miscellaneous 915 - Security System Useful Life 1 Pool Area Quantity 1 Unit of Measure Lump Sum Cost /LS $2,500 100.00% 0 Treatment [nr:1] Total Cost/Study $2,500 Replacement Year 2010 Future Cost $2,500 This is to install a motion detection lighting system around the pool area. Browning Reserve Group 2010 45

Component Listing Included Components Common Area Pool 32000 - Undesignated 100 - Miscellaneous Useful Life 2 Pool & Buildings Quantity 1 Unit of Measure Lump Sum Cost /LS $1,200 100.00% Total Cost/Study $1,200 Replacement Year 2014 Future Cost $1,325 This is to have funds available for repair and/or replacement of miscellaneous items regarding the pool and the surrounding buildings such as: 3 - Wall heaters 2-6 gallon water heaters 4 - Exterior lights 13 - Interior lights 2 - Drinking fountains 2 - Garbage receptacles Tile flooring in restrooms Pool signage Bike rack Pet station Exterior shower Interior painting - Restrooms, storage rooms & pool mechanical room Plumbing fixtures - toilet, sink Roof inspection & minor repairs i.e. resealing seams 4 Reserve Study 31000 - Reserve Study 100-3 Year Update with Site Visit Useful Life 3 Full Reserve Study Quantity 1 Unit of Measure Lump Sum Cost /LS $1,200 100.00% Total Cost/Study $1,200 Replacement Year 2013 Future Cost $1,292 This is for the 3 year full study which includes a visual observation of the accessible reserve components. 3 Browning Reserve Group 2010 46