Brookwood Homeowners Association, Inc.

RESERVE STUDY Full Study Brookwood Homeowners Association, Inc. Published - February 05, 2013 Browning Reserve Group / Emmett, ID 83617 Office (208) 365-0977 Tony@BrowningRG.com / www.browningrg.com Browning Reserve Group 2013 1693 2/5/2013 12fs4.4.68-462:nad.d Version 2/5/2013 12:20:33 PM

Brookwood Homeowners Association, Inc. Table of Contents Section Report Page Section I: of Association Reserves 1 Section II: 30 Year Expense Forecast Detailed 5 Section III: 30 Year Reserve Funding Plan Cash Flow Method {c} 17 Section III-a: 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances Chart 20 Section IV: 30 Year Reserve Funding Plan Fully Funded Balance and % Funded 21 Section V: Reserve Fund Balance Forecast Component Method 22 Section VI: Component Listing Included Components 29 Section VII: Tabular Component Listing Included Components 73 Section VII-a: Expenditures by Year - Next 3 Years 78 Section IX: Directory of Reserve Study Contractors Section X: Auditor Notes 85 Section X-a: Supplementary Information for Auditor Component Method Section XI: Glossary Reserve Study Terms 91 81 87 Addendum: Homeowner Distribution Materials See Page ii for Details 1693 Version 2/5/2013 12fs4.4.68-462:nad.d 2/5/2013 12:20:33 PM Browning Reserve Group 2013 TOC - i

Brookwood Homeowners Association, Inc. Homeowner Distribution Materials The following Reserve Study sections should be provided to each Homeowner. Section Report Idaho: Member Section III: 30 Year Reserve Funding Plan Cash Flow Method {c} 1693 Version 2/5/2013 12fs4.4.68-462:nad.d 2/5/2013 12:20:33 PM Browning Reserve Group 2013 TOC - ii

Section I Full Study Brookwood Homeowners Association, Inc. Published - February 05, 2013 Reserve Study A Reserve Study was conducted of (the "Association"). A Full Study 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 370 Lots. 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. 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. 1693 2/5/2013 12fs4.4.68-462:nad.d Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 / Emmett, ID 83617 Office (208) 365-0977 Tony@BrowningRG.com / www.browningrg.com

Reserve Study - Full Study 2 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 $169,434. [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, 2013 is estimated to be $120,831, constituting 71.3% 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 $12,200 [$8.24 per Lot per quarter (average)] for the fiscal year ending December 31, 2013 (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. Funding Assessment Based on the 30 year cash flow projection, the Association's reserves are inadequately funded as the reserve fund ending balances may fail to remain positive throughout the replacement of all major components during the next 30 years. Additional reserve funding including some combination of increased contributions, special assessments and loans may be necessary to meet all reserve obligations. Idaho statute imposes no reserve funding level requirements nor does it address funding level adequacy. Percent Funded Status Based on paragraphs 1-3 above, the Association is 71.3% 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%

Reserve Study - Full Study 3 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. 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, and no destructive testing was performed. The costs outlined in the study are for budgetary and planning purposes only, and 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. 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.

Reserve Study - Full Study 4 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 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 Current Replacement Life Useful / Reserve Component Cost Remaining 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 00010 - Common Area 10 01000 - Paving 110 - Asphalt Repairs & Sealing 8,928 Sq. Ft. Ball Field Parking Lot 111 - Asphalt Repairs & Sealing 10,499 Sq. Ft. Asphalt Pathway 600 - Brick Pavers Gazebo 02000 - Concrete Total 01000 - Paving 3,026 900 - Miscellaneous Common Area, Pool & Total 02000 - Concrete 2,000 03000 - Painting: Exterior 120 - Surface Restoration Barn 140 - Mid Cycle Touch-Up All Association Structures 400 - Wrought Iron 349 Lin. Ft. Gazebo & Ditch/Creek Banks 450 - Wood Fencing 2,035 Lin. Ft. Perimeter Fencing 500 - Light Poles 53 Street Lights 520 - Fire Hydrants 52 Fire Hydrants 555 - Gazebo Gazebo 990 - Miscellaneous Pump Houses #1, #2 & #3 Total 03000 - Painting: Exterior 18,899 04000 - Structural Repairs 195 - Siding & Trim Barn 220 - Masonry Repairs Monument Signs & All Structures 550 - Bridge Maintenance Common Area Bridges 805 - Gazebo Repairs Gazebo 910 - Building Maintenance Pump Houses & Garbage Enclosure Total 04000 - Structural Repairs 3,100 1,161 4 3 1,268 1,427 1,607 1,365 10 2 1,448 1,946 500 10 8 633 1,448 1,268 1,427 633 1,607 1,946 2,000 5 2 2,122 2,460 2,852 2,122 2,460 2,852 2,200 8 4 2,476 3,137 1,000 8 8 1,267 2,094 10 3 2,288 3,075 4,405 4 0 4,405 4,958 5,580 6,280 5,300 8 1 5,459 6,915 2,600 10 8 3,294 800 8 1 824 1,044 500 8 4 563 713 4,405 6,283 2,288 7,997 10,140 7,959 10,130 3,075 500 8 4 563 713 500 5 8 633 734 1,000 5 5 1,159 1,344 500 8 9 652 600 15 10 806 563 1,159 633 652 2,150 713 734 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2012 to 2026 5

Current Replacement Life Useful / 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 05000 - Roofing 440 - Pitched: Dimensional Composition 22 Squares- Barn 441 - Pitched: Dimensional Composition 7 Squares- Gazebo 442 - Pitched: Dimensional Composition 8 Squares- Pump Houses #1, #2 & #3 700 - Gutters / Downspouts 142 Lin. Ft. Barn 900 - Roofing: Inspections & Repairs All Association Structures[nr:6] Total 05000 - Roofing 10,058 17500 - Basketball / Sport Court 200 - Seal & Striping Basketball Courts 900 - Miscellaneous Concrete Court[nr:1] Total 17500 - Basketball / Sport Court 18000 - Landscaping 104 - Irrigation: Controllers Common Area 200 - Irrigation: Valves 450 Common Area (2%) 340 - Irrigation: Pumps Pump House #1 341 - Irrigation: Pumps Pump House #2 342 - Irrigation: Pumps Pump House #1-2012 Repair[nr:1] 343 - Irrigation: Pumps Pump House #1 - Failed Re-Circulating Pumps[nr:2] 450 - Drainage System Maint. 3 Common Area[nr:10] 490 - Bark Replacement Common Area 501 - Tree Maintenance Common Area - Structural Maintenance 600 - Major Renovation Ball Field - New Sod[nr:1] 920 - Miscellaneous Filtration System - Pump House #1 921 - Miscellaneous Filtration System - Pump House #2 5,698 30 13 8,367 1,400 30 13 2,056 1,500 30 13 2,203 710 20 9 926 750 2 2 796 844 896 950 1,008 1,069 796 844 896 950 926 1,008 1,069 12,626 1,500 3 3 1,639 1,791 1,957 2,139 24,402 1 0 24,402 25,902 Total 18000 - Landscaping 95,138 18500 - Lakes / Ponds 300 - Pumps / Mechanical Pump House #3 - Pond #6 990 - Miscellaneous Waterfalls, Fountain & Creek Beds Total 18500 - Lakes / Ponds 4,200 24,402 1,639 1,791 1,957 2,139 1,800 1 2 1,910 1,967 2,026 2,087 2,149 2,214 2,280 2,349 2,419 2,492 2,566 2,643 2,723 3,600 1 2 3,819 3,934 4,052 4,173 4,299 4,428 4,560 4,697 4,838 4,983 5,133 5,287 5,445 2,000 1 1 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 2,768 2,852 2,937 3,025 2,000 1 1 2,060 2,122 2,185 2,251 2,319 2,388 2,460 2,534 2,610 2,688 2,768 2,852 2,937 3,025 2,318 1 0 2,318 5,000 1 0 5,000 5,150 6,600 1 1 6,798 7,002 7,212 7,428 7,651 7,881 8,117 8,361 8,612 8,870 9,000 1 1 9,270 9,548 9,835 10,130 10,433 10,746 11,069 11,401 11,743 12,095 12,458 12,832 13,217 13,613 14,000 3 2 14,853 16,230 17,735 19,379 21,176 24,820 1 0 24,820 12,000 15 5 13,911 12,000 15 7 14,758 32,138 25,338 41,375 27,318 28,138 59,123 29,851 45,505 49,404 32,619 33,598 44,849 26,234 27,021 49,008 3,000 5 3 3,278 3,800 4,406 1,200 8 5 1,391 1,762 3,278 1,391 3,800 6,168 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2012 to 2026 6

Current Replacement Life Useful / 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 19000 - Fencing 200 - Wrought Iron 349 Lin. Ft. Gazebo & Ditch/Creek Banks 340 - Wood: 6' 322 Lin. Ft. East Perimeter Fence @ Pond #6 20000 - Lighting 205 - Street: Poles & Fixtures 5 Common Area 21000 - Signage 100 - Miscellaneous Common Area & Pool Total 19000 - Fencing 18,520 Total 20000 - Lighting 10,000 792 - Monument 3 Community Identity Monuments Total 21000 - Signage 4,700 23000 - Mechanical Equipment 830 - Sump Pump Ball Field Total 23000 - Mechanical Equipment 30000 - Miscellaneous 060 - Fountain: Mechanical Common Area Fountain 10,470 30 18 8,050 25 13 11,822 10,000 5 18 1,700 5 1 1,751 2,030 2,353 3,000 10 2 3,183 4,277 1,751 3,183 2,030 2,353 4,277 3,000 10 10 4,032 3,000 Total 30000 - Miscellaneous 600 600 15 3 656 656 4,032 11,822 Total [Common Area] Expenditures Inflated @ 3.00% 60,945 33,372 48,923 36,448 37,541 61,673 34,568 49,393 65,562 44,114 40,788 48,809 49,360 61,446 49,008 00020-20 01000 - Paving 111 - Asphalt Repairs & Sealing 4,682 Sq. Ft. Pool Parking Lot Total 01000 - Paving 609 03000 - Painting: Exterior 121 - Surface Restoration Building 400 - Wrought Iron 330 Lin. Ft. Perimeter Fence 545 - Shade Structure West Shade Structure 546 - Shade Structure Eest Shade Structure Total 03000 - Painting: Exterior 5,450 03500 - Painting: Interior 400 - Restrooms Total 03500 - Painting: Interior 400 609 4 1 627 706 794 894 627 706 794 894 1,000 8 4 1,126 1,426 3,150 10 1 3,244 4,360 700 4 1 721 811 913 1,028 600 4 3 656 738 831 3,965 656 1,126 811 738 913 5,191 1,426 1,028 400 10 4 450 605 450 605 04000 - Structural Repairs Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2012 to 2026 7

Current Replacement Life Useful / 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 810 - Shade Structure East & West Shade Structures 911 - Building Maintenance Building Total 04000 - Structural Repairs 1,100 05000 - Roofing 443 - Pitched: Dimensional Composition 14 Squares- Building 701 - Gutters / Downspouts 116 Lin. Ft. Building 08000 - Rehab 220 - Bathrooms Restrooms 12000 - Pool 110 - Resurface 298 Lin. Ft. 205 - Tile 298 Lin. Ft. 600 - Deck: Re-Surface 700 - Equipment: Replacement 701 - Equipment: Replacement - Chlorinator 720 - Heater 750 - Pool Cover 900 - Furniture Total 05000 - Roofing 3,097 Total 08000 - Rehab 2,000 990 - Miscellaneous - Epoxy Paint[nr:1] 19000 - Fencing Total 12000 - Pool 59,086 240 - Wrought Iron: 8' 330 Lin. Ft. Perimeter Fence Total 19000 - Fencing 14,850 23000 - Mechanical Equipment 600 - Water Heater Total 23000 - Mechanical Equipment 30000 - Miscellaneous 540 - Access Control System 500 4 8 633 713 600 10 8 760 1,393 713 2,633 30 13 3,866 464 20 10 624 2,000 20 10 2,688 28,310 20 9 36,938 3,576 20 9 4,666 2,000 5 1 2,060 2,388 2,768 624 3,866 1,000 1 1 1,030 1,061 1,093 1,126 1,159 1,194 1,230 1,267 1,305 1,344 1,384 1,426 1,469 1,513 2,000 12 1 2,060 2,937 11,000 20 10 14,783 5,000 15 5 5,796 1,000 5 5 1,159 1,344 5,200 5 4 5,853 14,850 30 20 5,150 1,061 1,093 6,978 8,115 3,582 1,230 1,267 42,909 17,471 4,153 1,426 4,406 1,513 400 15 5 464 400 Total 30000 - Miscellaneous 2,000 2,000 15 5 2,319 464 2,319 2,688 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2012 to 2026 8

Current Replacement Life Useful / 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total [] Expenditures Inflated @ 3.00% 9,742 1,061 1,748 8,554 12,414 3,582 1,968 2,660 44,616 20,782 9,343 3,564 10,193 2,118 00030-30 01000 - Paving 112 - Asphalt Repairs & Sealing 3,633 Sq. Ft. Parking Lot 601 - Brick Pavers Total 01000 - Paving 972 03000 - Painting: Exterior 122 - Surface Restoration Total 03000 - Painting: Exterior 1,500 03500 - Painting: Interior 300 - Interior Total 03500 - Painting: Interior 1,575 04000 - Structural Repairs 196 - Siding & Trim 670 - Metal Railings 47 Lin. Ft. 912 - Doors 2 930 - Windows Total 04000 - Structural Repairs 13,760 05000 - Roofing 444 - Pitched: Dimensional Composition 25 Squares- 702 - Gutters / Downspouts 100 Lin. Ft. 08000 - Rehab 240 - Total 05000 - Roofing 5,178 Total 08000 - Rehab 4,500 22000 - Office Equipment 100 - Miscellaneous Office Total 22000 - Office Equipment 500 472 4 1 486 548 616 694 500 10 8 633 486 548 633 616 694 1,500 8 4 1,688 2,139 1,688 2,139 1,575 10 9 2,055 500 8 4 563 713 1,410 30 18 1,000 5 13 1,469 10,850 30 18 2,055 563 713 1,469 4,778 30 13 7,016 400 20 9 522 522 7,016 4,500 25 13 6,608 500 5 5 580 672 580 672 6,608 23000 - Mechanical Equipment 200 - HVAC 600 - Water Heater Total 23000 - Mechanical Equipment 24000 - Furnishings 5,300 15 3 5,791 800 10 2 849 1,141 6,100 849 5,791 1,141 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2012 to 2026 9

Current Replacement Life Useful / 30 Year Expense Forecast - Detailed Reserve Component Cost Remaining 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500 - Furnishings 25000 - Flooring Total 24000 - Furnishings 800 200 - Carpeting 101 Sq. Yds. 27000 - Appliances 200 - Refrigerator GE Side by Side 230 - Stove GE True Temp 240 - Dishwasher GE Triton Profile Total 25000 - Flooring 2,879 Total 27000 - Appliances 1,900 800 5 10 1,075 2,879 10 9 3,756 1,000 20 8 1,267 400 20 8 507 500 15 3 546 546 1,773 3,756 1,075 Total [] Expenditures Inflated @ 3.00% Total Expenditures Inflated @ 3.00% 486 849 6,338 2,251 1,127 2,407 6,949 1,747 3,992 15,786 60,945 43,601 50,833 44,534 48,346 75,215 38,150 51,360 70,629 95,680 63,317 58,152 56,916 87,425 51,126 Total Current Replacement Cost 327,796 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2012 to 2026 10

30 Year Expense Forecast - Detailed Reserve Component 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 00010 - Common Area 10 01000 - Paving 110 - Asphalt Repairs & Sealing 8,928 Sq. Ft. Ball Field Parking Lot 111 - Asphalt Repairs & Sealing 10,499 Sq. Ft. Asphalt Pathway 600 - Brick Pavers Gazebo Total 01000 - Paving 1,808 2,035 2,291 2,578 2,615 851 1,144 1,808 851 2,035 2,615 2,291 2,578 1,144 02000 - Concrete 900 - Miscellaneous Common Area, Pool & Total 02000 - Concrete 03000 - Painting: Exterior 120 - Surface Restoration Barn 140 - Mid Cycle Touch-Up All Association Structures 400 - Wrought Iron 349 Lin. Ft. Gazebo & Ditch/Creek Banks 450 - Wood Fencing 2,035 Lin. Ft. Perimeter Fencing 500 - Light Poles 53 Street Lights 520 - Fire Hydrants 52 Fire Hydrants 555 - Gazebo Gazebo 990 - Miscellaneous Pump Houses #1, #2 & #3 Total 03000 - Painting: Exterior 04000 - Structural Repairs 195 - Siding & Trim Barn 220 - Masonry Repairs Monument Signs & All Structures 550 - Bridge Maintenance Common Area Bridges 805 - Gazebo Repairs Gazebo 910 - Building Maintenance Pump Houses & Garbage Enclosure Total 04000 - Structural Repairs 3,306 3,832 4,443 3,306 3,832 4,443 3,973 5,033 1,605 2,033 4,133 7,069 7,956 8,954 10,078 8,760 11,097 4,426 5,949 1,322 1,675 903 1,144 8,673 10,082 4,426 12,832 4,133 10,987 12,772 22,204 903 1,144 851 987 1,144 1,558 1,806 2,094 826 1,047 1,256 1,558 826 851 2,709 987 4,397 2,288 05000 - Roofing 440 - Pitched: Dimensional Composition 22 Squares- Barn 441 - Pitched: Dimensional Composition 7 Squares- Gazebo 442 - Pitched: Dimensional Composition 8 Squares- Pump Houses #1, #2 & #3 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2027 to 2041 11

30 Year Expense Forecast - Detailed Reserve Component 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 700 - Gutters / Downspouts 142 Lin. Ft. Barn 900 - Roofing: Inspections & Repairs All Association Structures[nr:6] Total 05000 - Roofing 1,673 1,673 17500 - Basketball / Sport Court 200 - Seal & Striping Basketball Courts 900 - Miscellaneous Concrete Court[nr:1] Total 17500 - Basketball / Sport Court 18000 - Landscaping 104 - Irrigation: Controllers Common Area 200 - Irrigation: Valves 450 Common Area (2%) 340 - Irrigation: Pumps Pump House #1 341 - Irrigation: Pumps Pump House #2 342 - Irrigation: Pumps Pump House #1-2012 Repair[nr:1] 343 - Irrigation: Pumps Pump House #1 - Failed Re-Circulating Pumps[nr:2] 450 - Drainage System Maint. 3 Common Area[nr:10] 490 - Bark Replacement Common Area 501 - Tree Maintenance Common Area - Structural Maintenance 600 - Major Renovation Ball Field - New Sod[nr:1] 920 - Miscellaneous Filtration System - Pump House #1 921 - Miscellaneous Filtration System - Pump House #2 Total 18000 - Landscaping 18500 - Lakes / Ponds 300 - Pumps / Mechanical Pump House #3 - Pond #6 990 - Miscellaneous Waterfalls, Fountain & Creek Beds Total 18500 - Lakes / Ponds 19000 - Fencing 200 - Wrought Iron 349 Lin. Ft. Gazebo & Ditch/Creek Banks 340 - Wood: 6' 322 Lin. Ft. East Perimeter Fence @ Pond #6 Total 19000 - Fencing 2,337 2,554 2,790 3,049 3,332 2,337 2,554 2,790 3,049 3,332 2,804 2,888 2,975 3,064 3,156 3,251 3,349 3,449 3,552 3,659 3,769 3,882 3,998 4,118 4,242 5,609 5,777 5,950 6,129 6,313 6,502 6,697 6,898 7,105 7,318 7,538 7,764 7,997 8,237 8,484 3,116 3,209 3,306 3,405 3,507 3,612 3,721 3,832 3,947 4,066 4,188 4,313 4,443 4,576 4,713 3,116 3,209 3,306 3,405 3,507 3,612 3,721 3,832 3,947 4,066 4,188 4,313 4,443 4,576 4,713 14,022 14,442 14,876 15,322 15,782 16,255 16,743 17,245 17,762 18,295 18,844 19,409 19,992 20,591 21,209 23,140 25,286 27,630 30,192 32,992 21,673 22,993 28,667 29,527 53,552 31,325 32,265 80,191 34,229 58,250 63,944 37,403 38,526 69,874 40,872 42,098 76,353 5,107 5,921 6,864 2,232 2,828 5,107 2,232 5,921 6,864 2,828 17,824 17,824 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2027 to 2041 12

30 Year Expense Forecast - Detailed Reserve Component 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 20000 - Lighting 205 - Street: Poles & Fixtures 5 Common Area Total 20000 - Lighting 17,024 19,736 22,879 17,024 19,736 22,879 21000 - Signage 100 - Miscellaneous Common Area & Pool 792 - Monument 3 Community Identity Monuments Total 21000 - Signage 2,728 3,163 3,666 2,728 3,163 5,748 3,666 5,748 23000 - Mechanical Equipment 830 - Sump Pump Ball Field Total 23000 - Mechanical Equipment 30000 - Miscellaneous 060 - Fountain: Mechanical Common Area Fountain Total 30000 - Miscellaneous 1,021 1,021 5,418 5,418 Total [Common Area] Expenditures Inflated @ 3.00% 34,370 40,928 67,767 80,985 34,300 101,151 42,415 70,445 97,011 51,440 55,694 73,540 51,224 97,477 80,854 00020-20 01000 - Paving 111 - Asphalt Repairs & Sealing 4,682 Sq. Ft. Pool Parking Lot Total 01000 - Paving 1,006 1,132 1,274 1,434 1,006 1,132 1,274 1,434 03000 - Painting: Exterior 121 - Surface Restoration Building 400 - Wrought Iron 330 Lin. Ft. Perimeter Fence 545 - Shade Structure West Shade Structure 546 - Shade Structure Eest Shade Structure Total 03000 - Painting: Exterior 03500 - Painting: Interior 400 - Restrooms Total 03500 - Painting: Interior 04000 - Structural Repairs 810 - Shade Structure East & West Shade Structures 911 - Building Maintenance Building Total 04000 - Structural Repairs 1,806 2,288 5,860 1,157 1,302 1,466 1,650 935 1,052 1,184 1,333 935 1,157 1,052 1,806 7,162 1,184 1,466 1,333 2,288 1,650 813 813 802 903 1,016 1,144 1,021 1,373 802 1,021 903 1,016 2,517 05000 - Roofing Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2027 to 2041 13

30 Year Expense Forecast - Detailed Reserve Component 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 443 - Pitched: Dimensional Composition 14 Squares- Building 701 - Gutters / Downspouts 116 Lin. Ft. Building 08000 - Rehab Total 05000 - Roofing 220 - Bathrooms Restrooms Total 08000 - Rehab 12000 - Pool 110 - Resurface 298 Lin. Ft. 205 - Tile 298 Lin. Ft. 600 - Deck: Re-Surface 700 - Equipment: Replacement 701 - Equipment: Replacement - Chlorinator 720 - Heater 750 - Pool Cover 900 - Furniture 990 - Miscellaneous - Epoxy Paint[nr:1] 19000 - Fencing Total 12000 - Pool 240 - Wrought Iron: 8' 330 Lin. Ft. Perimeter Fence Total 19000 - Fencing 23000 - Mechanical Equipment 600 - Water Heater Total 23000 - Mechanical Equipment 30000 - Miscellaneous 540 - Access Control System Total 30000 - Miscellaneous Total [] Expenditures Inflated @ 3.00% 66,714 8,427 3,209 3,721 4,313 1,558 1,605 1,653 1,702 1,754 1,806 1,860 1,916 1,974 2,033 2,094 2,157 2,221 2,288 2,357 4,188 9,031 1,558 1,806 2,094 3,116 4,814 1,653 1,702 1,754 12,643 5,581 1,916 1,974 2,033 8,375 6,470 2,221 2,288 77,498 26,821 26,821 722 722 3,612 3,612 4,051 5,616 3,816 2,724 2,806 46,507 13,875 1,916 3,158 3,862 11,115 6,470 3,554 7,093 80,582 00030-30 01000 - Paving 112 - Asphalt Repairs & Sealing 3,633 Sq. Ft. Parking Lot 601 - Brick Pavers 781 879 989 1,113 851 1,144 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2027 to 2041 14

30 Year Expense Forecast - Detailed Reserve Component 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Total 01000 - Paving 781 851 879 989 1,144 1,113 03000 - Painting: Exterior 122 - Surface Restoration Total 03000 - Painting: Exterior 03500 - Painting: Interior 300 - Interior Total 03500 - Painting: Interior 04000 - Structural Repairs 196 - Siding & Trim 670 - Metal Railings 47 Lin. Ft. 912 - Doors 2 930 - Windows Total 04000 - Structural Repairs 05000 - Roofing 444 - Pitched: Dimensional Composition 25 Squares- 702 - Gutters / Downspouts 100 Lin. Ft. Total 05000 - Roofing 2,709 3,432 2,709 3,432 2,762 3,712 2,762 3,712 903 1,144 2,400 1,702 1,974 2,288 18,471 22,574 903 1,974 3,432 943 943 08000 - Rehab 240 - Total 08000 - Rehab 22000 - Office Equipment 100 - Miscellaneous Office Total 22000 - Office Equipment 23000 - Mechanical Equipment 200 - HVAC 600 - Water Heater Total 23000 - Mechanical Equipment 24000 - Furnishings 500 - Furnishings 25000 - Flooring Total 24000 - Furnishings 200 - Carpeting 101 Sq. Yds. 779 903 1,047 779 903 1,047 9,023 1,533 9,023 1,533 1,246 1,445 1,675 1,246 1,445 1,675 5,047 6,783 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2027 to 2041 15

30 Year Expense Forecast - Detailed Reserve Component 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 Total 25000 - Flooring 5,047 6,783 27000 - Appliances 200 - Refrigerator GE Side by Side 230 - Stove GE True Temp 240 - Dishwasher GE Triton Profile Total 27000 - Appliances Total [] Expenditures Inflated @ 3.00% Total Expenditures Inflated @ 3.00% 2,288 915 851 851 3,203 2,025 781 33,300 7,809 5,960 879 1,533 1,974 3,711 11,211 12,551 40,446 46,544 72,363 117,008 44,915 153,619 57,168 73,894 102,142 55,302 70,520 80,010 54,778 115,780 173,986 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 2027 to 2041 16

Section III 30 Year Reserve Funding Plan Cash Flow Method *See Important footnotes at end of this Section III. Beginning Balance Inflated Expenditures @ 3.0% Reserve Contribution Lots/quarter @ 370 Percentage Increase Special Assessments / Other Interest Pre Tax @ 0.00% Ending Balance 1) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 140,0321 152,232 120,831 94,398 86,465 93,019 100,154 144,354 175,343 187,065 60,945 43,601 50,833 44,534 48,346 75,215 38,150 51,360 70,629 95,680 12,2002 12,200 24,400 36,600 54,900 82,350 82,350 82,350 82,350 82,350 8.24 8.24 16.49 24.73 37.09 55.64 55.64 55.64 55.64 55.64 0.0% 100.0% 50.0% 50.0% 50.0% 0.0% 0.0% 0.0% 0.0% 60,9453 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 152,232 120,831 94,398 86,465 93,019 100,154 144,354 175,343 187,065 173,735 Beginning Balance of $140,032 provided by Choice One HOAS. Balance consists of Operating Reserve MM1 $41,299.91; Asphalt Resealing MM2 $3,000; Fence/Bldg. Staining MM2 $24,000; Irrigation Pump Replacement MM2 $12,140; Pool Resurfacing MM2 $9,000; Pool Shade Fund in MM2 $2,093.91; US Bank Capiral Reserve MM2 - Other $48,498.16; Beginning Balance Inflated Expenditures @ 3.0% Reserve Contribution Lots/quarter @ 370 Percentage Increase Special Assessments / Other Interest Pre Tax @ 0.00% Ending Balance 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 173,735 192,768 216,966 242,399 237,324 268,548 310,453 346,258 356,245 321,587 63,317 58,152 56,916 87,425 51,126 40,446 46,544 72,363 117,008 44,915 82,350 82,350 82,350 82,350 82,350 82,350 82,350 82,350 82,350 82,350 55.64 55.64 55.64 55.64 55.64 55.64 55.64 55.64 55.64 55.64 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 192,768 216,966 242,399 237,324 268,548 310,453 346,258 356,245 321,587 359,022 Beginning Balance Inflated Expenditures @ 3.0% Reserve Contribution Lots/quarter @ 370 Percentage Increase Special Assessments / Other Interest Pre Tax @ 0.00% Ending Balance 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 359,022 287,753 312,935 321,391 301,599 328,646 340,476 342,816 370,388 336,958 153,619 57,168 73,894 102,142 55,302 70,520 80,010 54,778 115,780 173,986 82,350 82,350 82,350 82,350 82,350 82,350 82,350 82,350 82,350 82,350 55.64 55.64 55.64 55.64 55.64 55.64 55.64 55.64 55.64 55.64 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 287,753 312,935 321,391 301,599 328,646 340,476 342,816 370,388 336,958 245,321 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 17

30 Year Reserve Funding PlanCash Flow Method Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 18

30 Year Reserve Funding PlanCash Flow Method 2) 3) Period / Year 00 / 2012 Reserve Funding Plan - Footnotes Reserve Contribution of $12,200 provided by Choice One HOAS. Transfer from Operating Account of $60,945 to fund reserve expenses of 2012. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 19

Fund Balance Section III-a 30 Year Reserve Funding Plan Cash Flow Method - Ending Balances $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 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 2040 2041 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 20 Years

Section IV 30 Year Reserve Funding Plan Including Fully Funded Balance and % Funded Year Beginning Balance Fully Funded Balance Percent Funded Inflated Expenditures @ 3.00% Reserve Contribution Special Assessments & Other Contributions 2012 140,032 188,333 80.8% 60,945 12,200 60,945 0 152,232 2013 152,232 169,434 71.3% 43,601 12,200 0 0 120,831 2014 120,831 178,036 53.0% 50,833 24,400 0 0 94,398 2015 94,398 183,926 47.0% 44,534 36,600 0 0 86,465 2016 86,465 198,089 47.0% 48,346 54,900 0 0 93,019 2017 93,019 209,301 47.9% 75,215 82,350 0 0 100,154 2018 100,154 194,967 74.0% 38,150 82,350 0 0 144,354 2019 144,354 220,265 79.6% 51,360 82,350 0 0 175,343 2020 175,343 234,501 79.8% 70,629 82,350 0 0 187,065 2021 187,065 231,165 75.2% 95,680 82,350 0 0 173,735 2022 173,735 204,050 94.5% 63,317 82,350 0 0 192,768 2023 192,768 202,291 107.3% 58,152 82,350 0 0 216,966 2024 216,966 207,576 116.8% 56,916 82,350 0 0 242,399 2025 242,399 215,604 110.1% 87,425 82,350 0 0 237,324 2026 237,324 194,404 138.1% 51,126 82,350 0 0 268,548 2027 268,548 214,425 144.8% 40,446 82,350 0 0 310,453 2028 310,453 248,053 139.6% 46,544 82,350 0 0 346,258 2029 346,258 278,473 127.9% 72,363 82,350 0 0 356,245 2030 356,245 285,340 112.7% 117,008 82,350 0 0 321,587 2031 321,587 248,620 144.4% 44,915 82,350 0 0 359,022 2032 359,022 287,313 100.2% 153,619 82,350 0 0 287,753 2033 287,753 217,525 143.9% 57,168 82,350 0 0 312,935 2034 312,935 247,382 129.9% 73,894 82,350 0 0 321,391 2035 321,391 263,374 114.5% 102,142 82,350 0 0 301,599 2036 301,599 253,291 129.8% 55,302 82,350 0 0 328,646 2037 328,646 293,767 115.9% 70,520 82,350 0 0 340,476 2038 340,476 322,478 106.3% 80,010 82,350 0 0 342,816 2039 342,816 345,053 107.3% 54,778 82,350 0 0 370,388 2040 370,388 397,152 84.8% 115,780 82,350 0 0 336,958 2041 336,958 390,926 62.8% 173,986 82,350 0 0 245,321 Interest Ending Balance Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 21

Section V Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Life Remaining Life Estimated Future Replacement Costs Per Year 2012 Fully Funded Balance 2013 Fully Funded Balance % Per Year Straight Line 2013 Line Item Contribution based on Cash Flow Method 00010-01000 - Paving Common Area 110 - Asphalt Repairs & Sealing 8,928 Sq. Ft. Ball Field Parking Lot 111 - Asphalt Repairs & Sealing 10,499 Sq. Ft. Asphalt Pathway 600 - Brick Pavers Gazebo 1,161 4 3 1,268 317 290 598 0.71% 87 1,365 10 2 1,448 145 1,092 1,265 0.32% 40 500 10 8 633 63 100 155 0.14% 17 Sub-total [01000 - Paving] 3,026 3,350 525 1,482 2,017 1.18% 144 02000 - Concrete 900 - Miscellaneous Common Area, Pool & 03000 - Painting: Exterior 120 - Surface Restoration Barn 140 - Mid Cycle Touch-Up All Association Structures 400 - Wrought Iron 349 Lin. Ft. Gazebo & Ditch/Creek Banks 450 - Wood Fencing 2,035 Lin. Ft. Perimeter Fencing 500 - Light Poles 53 Street Lights 520 - Fire Hydrants 52 Fire Hydrants 555 - Gazebo Gazebo 990 - Miscellaneous Pump Houses #1, #2 & #3 2,000 5 2 2,122 424 1,200 1,648 0.95% 116 2,200 8 4 2,476 310 1,100 1,416 0.69% 85 1,000 8 8 1,267 141 111 129 0.32% 38 2,094 10 3 2,288 229 1,466 1,725 0.51% 63 4,405 4 0 4,405 1,101 4,405 1,134 2.47% 301 5,300 8 1 5,459 682 4,638 5,459 1.53% 187 2,600 10 8 3,294 329 520 803 0.74% 90 800 8 1 824 103 700 824 0.23% 28 500 8 4 563 70 250 322 0.16% 19 Sub-total [03000 - Painting: Exterior] 18,899 20,575 2,965 13,189 11,813 6.65% 811 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 22

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Life Remaining Life Estimated Future Replacement Costs Per Year 2012 Fully Funded Balance 2013 Fully Funded Balance % Per Year Straight Line 2013 Line Item Contribution based on Cash Flow Method 00010 - Common Area 04000 - Structural Repairs 195 - Siding & Trim Barn 220 - Masonry Repairs Monument Signs & All Structures 550 - Bridge Maintenance Common Area Bridges 805 - Gazebo Repairs Gazebo 910 - Building Maintenance Pump Houses & Garbage Enclosure 500 8 4 563 70 250 322 0.16% 19 500 5 8 633 70 56 64 0.16% 19 1,000 5 5 1,159 193 167 206 0.43% 53 500 8 9 652 65 50 57 0.15% 18 600 15 10 806 54 200 247 0.12% 15 Sub-total [04000 - Structural Repairs] 3,100 3,814 453 722 897 1.02% 124 05000 - Roofing 440 - Pitched: Dimensional Composition 22 Squares- Barn 441 - Pitched: Dimensional Composition 7 Squares- Gazebo 442 - Pitched: Dimensional Composition 8 Squares- Pump Houses #1, #2 & #3 700 - Gutters / Downspouts 142 Lin. Ft. Barn 900 - Roofing: Inspections & Repairs All Association Structures[nr:6] 5,698 30 13 8,367 279 3,229 3,521 0.63% 76 1,400 30 13 2,056 69 793 865 0.15% 19 1,500 30 13 2,203 73 850 927 0.16% 20 710 20 9 926 46 391 439 0.10% 13 750 2 2 796 265 250 386 0.59% 73 Sub-total [05000 - Roofing] 10,058 14,348 732 5,512 6,138 1.64% 200 17500 - Basketball / Sport Court 200 - Seal & Striping Basketball Courts 900 - Miscellaneous Concrete Court[nr:1] 1,500 3 3 1,639 410 375 515 0.92% 112 24,402 1 0 0 0 24,402 0 0.00% 0 Sub-total [17500 - Basketball / Sport Court] 25,902 1,639 410 24,777 515 0.92% 112 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 23

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Life Remaining Life Estimated Future Replacement Costs Per Year 2012 Fully Funded Balance 2013 Fully Funded Balance % Per Year Straight Line 2013 Line Item Contribution based on Cash Flow Method 00010 - Common Area 18000 - Landscaping 104 - Irrigation: Controllers Common Area 200 - Irrigation: Valves 450 Common Area (2%) 340 - Irrigation: Pumps Pump House #1 341 - Irrigation: Pumps Pump House #2 342 - Irrigation: Pumps Pump House #1-2012 Repair[nr:1] 343 - Irrigation: Pumps Pump House #1 - Failed Re-Circulating Pumps[nr:2] 450 - Drainage System Maint. 3 Common Area[nr:10] 490 - Bark Replacement Common Area 501 - Tree Maintenance Common Area - Structural Maintenance 600 - Major Renovation Ball Field - New Sod[nr:1] 920 - Miscellaneous Filtration System - Pump House #1 921 - Miscellaneous Filtration System - Pump House #2 1,800 1 2 1,910 637 600 927 1.43% 174 3,600 1 2 3,819 1,273 1,200 1,854 2.85% 348 2,000 1 1 2,060 1,030 1,000 2,060 2.31% 282 2,000 1 1 2,060 1,030 1,000 2,060 2.31% 282 2,318 1 0 0 0 2,318 0 0.00% 0 5,000 1 0 5,000 5,000 5,000 5,150 11.21% 1,367 6,600 1 1 6,798 3,399 3,300 6,798 7.62% 930 9,000 1 1 9,270 4,635 4,500 9,270 10.39% 1,268 14,000 3 2 14,853 4,951 4,667 9,613 11.10% 1,354 24,820 1 0 0 0 24,820 0 0.00% 0 12,000 15 5 13,911 927 8,000 9,064 2.08% 254 12,000 15 7 14,758 984 6,400 7,416 2.21% 269 Sub-total [18000 - Landscaping] 95,138 74,439 23,866 62,805 54,212 53.50% 6,527 18500 - Lakes / Ponds 300 - Pumps / Mechanical Pump House #3 - Pond #6 990 - Miscellaneous Waterfalls, Fountain & Creek Beds 3,000 5 3 3,278 656 1,200 1,854 1.47% 179 1,200 8 5 1,391 174 450 618 0.39% 48 Sub-total [18500 - Lakes / Ponds] 4,200 4,669 830 1,650 2,472 1.86% 227 19000 - Fencing 200 - Wrought Iron 349 Lin. Ft. Gazebo & Ditch/Creek Banks 340 - Wood: 6' 322 Lin. Ft. East Perimeter Fence @ Pond #6 10,470 30 18 17,824 594 4,188 4,673 1.33% 162 8,050 25 13 11,822 473 3,864 4,312 1.06% 129 Sub-total [19000 - Fencing] 18,520 29,646 1,067 8,052 8,985 2.39% 292 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 24

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Life Remaining Life Estimated Future Replacement Costs Per Year 2012 Fully Funded Balance 2013 Fully Funded Balance % Per Year Straight Line 2013 Line Item Contribution based on Cash Flow Method 00010 - Common Area 20000 - Lighting 205 - Street: Poles & Fixtures 5 Common Area 21000 - Signage 100 - Miscellaneous Common Area & Pool 792 - Monument 3 Community Identity Monuments 10,000 5 18 17,024 896 526 572 2.01% 245 1,700 5 1 1,751 350 1,360 1,751 0.79% 96 3,000 10 2 3,183 318 2,400 2,781 0.71% 87 Sub-total [21000 - Signage] 4,700 4,934 668 3,760 4,532 1.50% 183 23000 - Mechanical Equipment 830 - Sump Pump Ball Field 30000 - Miscellaneous 060 - Fountain: Mechanical Common Area Fountain 3,000 10 10 4,032 367 273 309 0.82% 100 600 15 3 656 44 480 536 0.10% 12 Sub-total Common Area 199,142 181,248 33,247 124,429 94,646 74.53% 9,093 00020-01000 - Paving 111 - Asphalt Repairs & Sealing 4,682 Sq. Ft. Pool Parking Lot 03000 - Painting: Exterior 121 - Surface Restoration Building 400 - Wrought Iron 330 Lin. Ft. Perimeter Fence 545 - Shade Structure West Shade Structure 546 - Shade Structure Eest Shade Structure 609 4 1 627 157 457 627 0.35% 43 1,000 8 4 1,126 141 500 644 0.32% 38 3,150 10 1 3,244 324 2,835 3,244 0.73% 89 700 4 1 721 180 525 721 0.40% 49 600 4 3 656 164 150 309 0.37% 45 Sub-total [03000 - Painting: Exterior] 5,450 5,746 809 4,010 4,918 1.81% 221 03500 - Painting: Interior 400 - Restrooms 400 10 4 450 45 240 288 0.10% 12 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 25

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Life Remaining Life Estimated Future Replacement Costs Per Year 2012 Fully Funded Balance 2013 Fully Funded Balance % Per Year Straight Line 2013 Line Item Contribution based on Cash Flow Method 00020-04000 - Structural Repairs 810 - Shade Structure East & West Shade Structures 911 - Building Maintenance Building 500 4 8 633 70 56 64 0.16% 19 600 10 8 760 76 120 185 0.17% 21 Sub-total [04000 - Structural Repairs] 1,100 1,393 146 176 250 0.33% 40 05000 - Roofing 443 - Pitched: Dimensional Composition 14 Squares- Building 701 - Gutters / Downspouts 116 Lin. Ft. Building 2,633 30 13 3,866 129 1,492 1,627 0.29% 35 464 20 10 624 31 232 263 0.07% 9 Sub-total [05000 - Roofing] 3,097 4,489 160 1,724 1,890 0.36% 44 08000 - Rehab 220 - Bathrooms Restrooms 12000 - Pool 110 - Resurface 298 Lin. Ft. 205 - Tile 298 Lin. Ft. 600 - Deck: Re-Surface 700 - Equipment: Replacement 701 - Equipment: Replacement - Chlorinator 720 - Heater 750 - Pool Cover 900 - Furniture 990 - Miscellaneous - Epoxy Paint[nr:1] 2,000 20 10 2,688 134 1,000 1,133 0.30% 37 28,310 20 9 36,938 1,847 15,571 17,496 4.14% 505 3,576 20 9 4,666 233 1,967 2,210 0.52% 64 2,000 5 1 2,060 412 1,600 2,060 0.92% 113 1,000 1 1 1,030 515 500 1,030 1.15% 141 2,000 12 1 2,060 172 1,833 2,060 0.38% 47 11,000 20 10 14,783 739 5,500 6,232 1.66% 202 5,000 15 5 5,796 386 3,333 3,777 0.87% 106 1,000 5 5 1,159 193 167 206 0.43% 53 5,200 5 4 5,853 1,171 1,040 2,142 2.62% 320 Sub-total [12000 - Pool] 59,086 74,345 5,668 31,511 37,212 12.71% 1,550 19000 - Fencing 240 - Wrought Iron: 8' 330 Lin. Ft. Perimeter Fence 14,850 30 20 26,821 894 4,950 5,608 2.00% 245 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 26

Reserve Fund Balance Forecast Component Method Reserve Component Current Repl. Cost Useful Life Remaining Life Estimated Future Replacement Costs Per Year 2012 Fully Funded Balance 2013 Fully Funded Balance % Per Year Straight Line 2013 Line Item Contribution based on Cash Flow Method 00020-23000 - Mechanical Equipment 600 - Water Heater 30000 - Miscellaneous 540 - Access Control System 400 15 5 464 31 267 302 0.07% 8 2,000 15 5 2,319 155 1,333 1,511 0.35% 42 Sub-total 88,991 119,343 8,200 45,666 53,739 18.38% 2,242 00030-01000 - Paving 112 - Asphalt Repairs & Sealing 3,633 Sq. Ft. Parking Lot 601 - Brick Pavers 472 4 1 486 122 354 486 0.27% 33 500 10 8 633 63 100 155 0.14% 17 Sub-total [01000 - Paving] 972 1,120 185 454 641 0.41% 51 03000 - Painting: Exterior 122 - Surface Restoration 03500 - Painting: Interior 300 - Interior 04000 - Structural Repairs 196 - Siding & Trim 670 - Metal Railings 47 Lin. Ft. 912 - Doors 2 930 - Windows 1,500 8 4 1,688 211 750 966 0.47% 58 1,575 10 9 2,055 206 158 324 0.46% 56 500 8 4 563 70 250 322 0.16% 19 1,410 30 18 2,400 80 564 629 0.18% 22 1,000 5 13 1,469 105 71 79 0.24% 29 10,850 30 18 18,471 616 4,340 4,843 1.38% 168 Sub-total [04000 - Structural Repairs] 13,760 22,903 871 5,225 5,873 1.95% 238 05000 - Roofing 444 - Pitched: Dimensional Composition 25 Squares- 702 - Gutters / Downspouts 100 Lin. Ft. 4,778 30 13 7,016 234 2,707 2,952 0.52% 64 400 20 9 522 26 220 247 0.06% 7 Sub-total [05000 - Roofing] 5,178 7,538 260 2,927 3,200 0.58% 71 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 27

Section VI Component Listing Included Components 00010-01000 - Common Area Paving 110 - Asphalt Repairs & Sealing Useful Life 4 8,928 Sq. Ft. Ball Field Parking Lot Quantity 8,928 Unit of Measure Square Feet Cost /SqFt $0.130 100.00% Total Cost/Study $1,161 Replacement Year 2015 Future Cost $1,268 This is to apply two coats of Resurfacer XLR8 brand emulsion product. The square footage includes crackfill and other repair as needed, surface preparation prior to application and striping where applicable. Cost estimate and useful life provided by Shane Martin. Square footage is approximate by BRG. 3 Costing provided by AA Sealcoat Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 29

Component Listing Included Components 00010-01000 - Common Area Paving 111 - Asphalt Repairs & Sealing Useful Life 10 10,499 Sq. Ft. Asphalt Pathway Quantity 10,499 Unit of Measure Square Feet Cost /SqFt $0.130 100.00% Total Cost/Study $1,365 Replacement Year 2014 Future Cost $1,448 This is to apply two coats of Resurfacer XLR8 brand emulsion product. The square footage includes crackfill and other repair as needed, surface preparation prior to application and striping where applicable. Cost estimate and useful life provided by Shane Martin. Square footage is approximate by BRG. 2 Costing provided by AA Sealcoat Inc. 600 - Brick Pavers Useful Life 10 Gazebo Quantity 1 Unit of Measure Lump Sum Cost /LS $500 100.00% Total Cost/Study $500 Replacement Year 2020 Future Cost $633 This is to have funds available for periodic repair/replacement of brick pavers as needed. 8 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 30

Component Listing Included Components 00010-02000 - Common Area Concrete 900 - Miscellaneous Useful Life 5 Common Area, Pool & Quantity 1 Unit of Measure Lump Sum Cost /LS $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2014 Future Cost $2,122 This is to repair, replace or grind failed concrete flatwork to remove trip hazards and maintain functionality. Includes walkways, curbs, gutters, and basketball courts. Since the core concrete useful life exceeds the scope of this thirty year study, this is for repairs only and not full replacement. 2 03000 - Painting: Exterior 120 - Surface Restoration Useful Life 8 Barn Quantity 1 Unit of Measure Lump Sum Cost /LS $2,200 100.00% Total Cost/Study $2,200 Replacement Year 2016 Future Cost $2,476 This is to paint with a premium exterior 100% acrylic paint solid stain such as Sherwin Williams Wood Scapes. Includes preparation, power washing, sanding, scraping and caulking as needed. Cost estimate and useful life provided by Randy Brown. 4 Costing provided by Brush Works Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 31

Component Listing Included Components 00010-03000 - Common Area Painting: Exterior 140 - Mid Cycle Touch-Up Useful Life 8 All Association Structures Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 100.00% Total Cost/Study $1,000 Replacement Year 2020 Future Cost $1,267 This is to perform mid cycle touch-up painting midway between full painting cycles. Mid cycle painting is typically necessary with long duration full paint cycles. 8 400 - Wrought Iron Useful Life 10 349 Lin. Ft. Gazebo & Ditch/Creek Banks Quantity 349 Unit of Measure Linear Feet Cost /l.f. $6.00 100.00% Total Cost/Study $2,094 Replacement Year 2015 Future Cost $2,288 This is to paint the wrought iron with a direct to metal (DTM) material. Includes preparation, sanding, scraping and primer as necessary. Linear footage is approximate by BRG. 3 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 32

Component Listing Included Components 00010-03000 - Common Area Painting: Exterior 450 - Wood Fencing Useful Life 4 2,035 Lin. Ft. Perimeter Fencing Quantity 2,035 Unit of Measure Linear Feet Cost /l.f. $2.16 100.00% Total Cost/Study $4,405 Replacement Year 2012 Future Cost $4,405 This is to power wash and stain the cedar fence with a Cabot clear solution cedar tone brand stain. Includes approximately 322 linear feet of fence along the east side of pond #6. Cost estimate and useful life provided by Randy Brown. Linear footage is approximate by BRG. 0 Costing provided by Brush Works Inc. 500 - Light Poles Useful Life 8 53 Street Lights Quantity 53 Unit of Measure Items Cost /Itm $100 This is to prep and paint the association fiber glass light poles. 100.00% Total Cost/Study $5,300 Replacement Year 2013 Future Cost $5,459 1 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 33

Component Listing Included Components 00010-03000 - Common Area Painting: Exterior 520 - Fire Hydrants Useful Life 10 52 Fire Hydrants Quantity 52 Unit of Measure Items This is to prep and paint the fire hydrants. Cost /Itm $50.00 100.00% Total Cost/Study $2,600 Replacement Year 2020 Future Cost $3,294 8 555 - Gazebo Useful Life 8 Gazebo Quantity 1 Unit of Measure Lump Sum Cost /LS $800 100.00% Total Cost/Study $800 Replacement Year 2013 Future Cost $824 This is to prep and paint the gazebo. Cost estimate, useful and remaining life provided by Randy Brown. 1 Costing provided by Brush Works Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 34

Component Listing Included Components 00010-03000 - Common Area Painting: Exterior 990 - Miscellaneous Useful Life 8 Pump Houses #1, #2 & #3 Quantity 1 Unit of Measure Lump Sum Cost /LS $500 100.00% Total Cost/Study $500 Replacement Year 2016 Future Cost $563 This is to paint the pump houses with a premium exterior 100% acrylic solid stain such as Sherwin Williams Wood Scapes. Cost estimate and useful life provided by Randy Brown. 4 Costing provided by Brush Works Inc. 04000 - Structural Repairs 195 - Siding & Trim Useful Life 8 Barn Quantity 1 Unit of Measure Lump Sum Cost /LS $500 100.00% Total Cost/Study $500 Replacement Year 2016 Future Cost $563 This is to have funds available for repairs/replacement of siding and/or trim as needed in concert with the painting cycle. 4 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 35

Component Listing Included Components 00010-04000 - Common Area Structural Repairs 220 - Masonry Repairs Useful Life 5 Monument Signs & All Structures Quantity 1 Unit of Measure Lump Sum Cost /LS $500 100.00% Total Cost/Study $500 Replacement Year 2020 Future Cost $633 This is to have funds available as needed to make repairs to the existing rock finishes on the monument signs, the pool building and clubhouse. Since the useful life exceeds the scope of this study, this provides for repairs only and not full replacement. 8 550 - Bridge Maintenance Useful Life 5 Common Area Bridges Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 100.00% Total Cost/Study $1,000 Replacement Year 2017 Future Cost $1,159 This is to have funds available to maintain all of the bridges located in the common area including the one over Dry Creek. 5 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 36

Component Listing Included Components 00010-04000 - Common Area Structural Repairs 805 - Gazebo Repairs Useful Life 8 Gazebo Quantity 1 Unit of Measure Lump Sum This is for replacement and repairs of the gazebo. Cost /LS $500 100.00% Total Cost/Study $500 Replacement Year 2021 Future Cost $652 9 910 - Building Maintenance Useful Life 15 Pump Houses & Garbage Enclosure Quantity 1 Unit of Measure Lump Sum Cost /LS $600 10 100.00% Total Cost/Study $600 Replacement Year 2022 Future Cost $806 This is for on-going repairs, as needed to all three of the pump houses such as siding & trim, wood doors, metal roll up door, fencing, lights and utility services. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 37

Component Listing Included Components 00010-05000 - Common Area Roofing 440 - Pitched: Dimensional Composition Useful Life 30 22 Squares- Barn Quantity 22 Unit of Measure Squares Cost /Sqrs $265 13 100.00% Total Cost/Study $5,698 Replacement Year 2025 Future Cost $8,367 This is to replace the existing 30 year Architectural Dimensional Composition shingle roof with a similar product. Square count, cost estimate, useful and remaining life provided by Chad Argon. Costing provided by Northwest Roof Restoration 441 - Pitched: Dimensional Composition Useful Life 30 7 Squares- Gazebo Quantity 7 Unit of Measure Squares Cost /Sqrs $200 13 100.00% Total Cost/Study $1,400 Replacement Year 2025 Future Cost $2,056 This is to replace the existing 30 year Architectural Dimensional Composition shingle roof with a similar product. Square count, cost estimate, useful and remaining life provided by Chad Argon. Costing provided by Northwest Roof Restoration Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 38

Component Listing Included Components 00010-05000 - Common Area Roofing 442 - Pitched: Dimensional Composition Useful Life 30 8 Squares- Pump Houses #1, #2 & #3 Quantity 8 Unit of Measure Squares Cost /Sqrs $200 13 100.00% Total Cost/Study $1,500 Replacement Year 2025 Future Cost $2,203 This is to replace the existing 30 year Architectural Dimensional Composition shingle roof with a similar product. Square count, cost estimate, useful and remaining life provided by Chad Argon. Costing provided by Northwest Roof Restoration 700 - Gutters / Downspouts Useful Life 20 142 Lin. Ft. Barn Quantity 142 Unit of Measure Linear Feet This is to replace the 6" gutters and downspouts. Linear footage is approximate by BRG. Cost /l.f. $5.00 100.00% Total Cost/Study $710 Replacement Year 2021 Future Cost $926 9 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 39

Component Listing Included Components 00010-05000 - Common Area Roofing 900 - Roofing: Inspections & Repairs Useful Life 2 All Association Structures Quantity 1 Unit of Measure Lump Sum Cost /LS $750 100.00% 2 Treatment [nr:6] Total Cost/Study $750 Replacement Year 2014 Future Cost $796 This is to inspect and perform rudimentary maintenance as needed to the roofing of all association structures. Inspection to include the barn, clubhouse, gazebo, pool building and all three pump houses. Includes replacement of pipe jacks and vents where applicable. Cost estimate provided by Chad Argon. Costing provided by Northwest Roof Restoration 17500 - Basketball / Sport Court 200 - Seal & Striping Useful Life 3 Basketball Courts Quantity 1 Unit of Measure Lump Sum Cost /LS $1,500 100.00% Total Cost/Study $1,500 Replacement Year 2015 Future Cost $1,639 This is to seal the courts with a transparent concrete sealant such as Burke by Edoco brand or equal. The projected cost includes striping ($800) which may not have to be done on a three year cycle. Cost estimate and useful life provided by Tim Peppersack. 3 Costing provided by Wright Brothers The Building Co. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 40

Component Listing Included Components 00010-17500 - Common Area Basketball / Sport Court 900 - Miscellaneous Useful Life 1 Concrete Court Quantity 1 Unit of Measure Lump Sum Cost /LS $24,402 100.00% 0 Treatment [nr:1] Total Cost/Study $24,402 Replacement Year 2012 Future Cost $24,402 This was to replace the asphalt court with concrete and install new drains. Includes 4 new backboards, striping and sealing. Cost provided by Leann Hingsberger of Choice One HOAS. 18000 - Landscaping 104 - Irrigation: Controllers Useful Life 1 Common Area Quantity 1 Unit of Measure Items Cost /Itm $1,800 100.00% Total Cost/Study $1,800 Replacement Year 2014 Future Cost $1,910 This is to replace the older Rainbird controllers with new Hunter Icore timer/controllers. There are a total of 11 on the property with an average of 1 to 2 replaced annually. Count and cost estimate provided by Juan Morales. 2 Costing provided by Summer Lawns, Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 41

Component Listing Included Components 00010-18000 - Common Area Landscaping 200 - Irrigation: Valves Useful Life 1 450 Common Area (2%) Quantity 450 Unit of Measure Items Cost /Itm $400 Qty * $/Itm $180,000 2.00% Total Cost/Study $3,600 Replacement Year 2014 Future Cost $3,819 This is for replacement of the irrigation valves, on a percentage basis as they generally have varying serviceable life's. Average annual replacement count and cost estimate provided by Juan Morales. 2 Costing provided by Summer Lawns, Inc. 340 - Irrigation: Pumps Useful Life 1 Pump House #1 Quantity 1 Unit of Measure Lump Sum Cost /LS $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2013 Future Cost $2,060 This is to have funds available annually to repair/replace the mechanical and electrical components of the pressurized irrigation system. Includes Berkeley submersible pumps, VFD LAG and pony pumps, 2" & 5" valmatic check valves, process logic, pressure differential and VFD controls, various coils, fuses, relays, fans, etc. Pump motors can be replaced twice to extend the useful life before an entire pump must be replaced. Annual funds are provided due to varying useful lives of the above components. BRG consulted with Dan Byler. 1 Costing provided by Dan's Pump & Filter LLC Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 42

Component Listing Included Components 00010-18000 - Common Area Landscaping 341 - Irrigation: Pumps Useful Life 1 Pump House #2 Quantity 1 Unit of Measure Lump Sum Cost /LS $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2013 Future Cost $2,060 This is to have funds available annually to repair/replace the mechanical and electrical components of the pressurized irrigation system. Includes Berkeley submersible pumps, VFD LAG and pony pumps, 10hp well pump, 2" & 5" valmatic check valves, process logie, pressure differential and VFD controls, various coils, fuses, relays, fans, etc. Pump motors can be replaced twice to extend the useful life before an entire pump must be replaced. Annual funds are provided due to varying useful lives of the above components. BRG consulted with Dan Byler. 1 Costing provided by Dan's Pump & Filter LLC 342 - Irrigation: Pumps Useful Life 1 Pump House #1-2012 Repair Quantity 1 Unit of Measure Lump Sum Cost /LS $2,318 100.00% 0 Treatment [nr:1] Total Cost/Study $2,318 Replacement Year 2012 Future Cost $2,318 This was to replace a Berkeley submersible pump that failed. Cost estimate provided by Dan Byler. Costing provided by Dan's Pump & Filter LLC Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 43

Component Listing Included Components 00010-18000 - Common Area Landscaping 343 - Irrigation: Pumps Pump House #1 - Failed Re-Circulating Pumps Useful Life 1 Quantity 1 Unit of Measure Lump Sum Cost /LS $5,000 100.00% 0 Treatment [nr:2] Total Cost/Study $5,000 Replacement Year 2012 Future Cost $5,000 This was to replace a failed re-circulation pump. Costing provided by Dan's Pump & Filter LLC 450 - Drainage System Maint. Useful Life 1 3 Common Area Quantity 3 Unit of Measure Items Cost /Itm $2,200 100.00% 1 Treatment [nr:10] Total Cost/Study $6,600 Replacement Year 2013 Future Cost $6,798 This is to have funds available to remodel existing/or install new common area drains to improve overall drainage efficiency. According to Juan Morales the current count is 3 drains/year at an average cost of $1,500 - $3,000/drain ($2,200 average). History will dictate if this component will need to be extended beyond 10 years. Costing provided by Summer Lawns, Inc. 490 - Bark Replacement Useful Life 1 Common Area Quantity 1 Unit of Measure Lump Sum Cost /LS $9,000 100.00% Total Cost/Study $9,000 Replacement Year 2013 Future Cost $9,270 This is for replenishing landscaped bedding areas with 3/4" - 1" of bark as needed. Cost estimate and useful life provided by Juan Morales. 1 Costing provided by Summer Lawns, Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 44

Component Listing Included Components 00010-18000 - Common Area Landscaping 501 - Tree Maintenance Useful Life 3 Common Area - Structural Maintenance Quantity 1 Unit of Measure Lump Sum Cost /LS $14,000 100.00% Total Cost/Study $14,000 Replacement Year 2014 Future Cost $14,853 This is to perform major pruning as necessary. Cost estimate and useful life provided by Juan Morales. 2 Costing provided by Summer Lawns, Inc. 600 - Major Renovation Useful Life 1 Ball Field - New Sod Quantity 1 Unit of Measure Lump Sum Cost /LS $24,820 100.00% 0 Treatment [nr:1] Total Cost/Study $24,820 Replacement Year 2012 Future Cost $24,820 This is to rehabilitate the ball field including installation of top soil, new sod and several drains in the field and near the path along Eagle Rd. Also includes sprinkler adjustments and repair work on lawn and cleanup. Cost estimate provided by Juan Morales. Costing provided by Summer Lawns, Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 45

Component Listing Included Components 00010-18000 - Common Area Landscaping 920 - Miscellaneous Useful Life 15 Filtration System - Pump House #1 Quantity 1 Unit of Measure Lump Sum Cost /LS $12,000 100.00% Total Cost/Study $12,000 Replacement Year 2017 Future Cost $13,911 This is to replace the Amiad SAM 4500 automatic filtration system. With proper maintenance the useful life may be extended to approximately 20 years. Cost estimate and useful life provided by Dan Byler. 5 Costing provided by Dan's Pump & Filter LLC 921 - Miscellaneous Useful Life 15 Filtration System - Pump House #2 Quantity 1 Unit of Measure Lump Sum Cost /LS $12,000 100.00% Total Cost/Study $12,000 Replacement Year 2019 Future Cost $14,758 This is to replace the Amiad SAF 3000 automatic filtration system. With proper maintenance the useful life may be extended to approximately 20 years. Cost estimate and useful life provided by Dan Byler. 7 Costing provided by Dan's Pump & Filter LLC Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 46

Component Listing Included Components 00010-18500 - Common Area Lakes / Ponds 300 - Pumps / Mechanical Useful Life 5 Pump House #3 - Pond #6 Quantity 1 Unit of Measure Lump Sum Cost /LS $3,000 100.00% Total Cost/Study $3,000 Replacement Year 2015 Future Cost $3,278 This is to have funds available periodically to repair/replace components of the pond waterfall circulation system. Includes 2 Triton pumps, 3 diffusers, self cleaning intake screen, and electrical control panels. Also includes repair of the sleeve distribution system as needed. 3 990 - Miscellaneous Useful Life 8 Waterfalls, Fountain & Creek Beds Quantity 1 Unit of Measure Lump Sum Cost /LS $1,200 100.00% Total Cost/Study $1,200 Replacement Year 2017 Future Cost $1,391 This is to have funds available for replenishment of the decorative rock and liner repairs where applicable. 5 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 47

Component Listing Included Components 00010-19000 - Common Area Fencing 200 - Wrought Iron Useful Life 30 349 Lin. Ft. Gazebo & Ditch/Creek Banks Quantity 349 Unit of Measure Linear Feet Cost /l.f. $30.00 18 100.00% Total Cost/Study $10,470 Replacement Year 2030 Future Cost $17,824 This is to replace the wrought iron fencing. With aggressive paint maintenance, this component s life may be extended. Painting is provided for within another component. 340 - Wood: 6' 322 Lin. Ft. East Perimeter Fence @ Pond #6 Useful Life 25 Quantity 322 Unit of Measure Linear Feet Cost /l.f. $25.00 13 100.00% Total Cost/Study $8,050 Replacement Year 2025 Future Cost $11,822 This is to replace the 6' wood fencing including discarded fence material removal and disposal. This fence is located along the east side of pond #6 and is assumed the responsibility of the Association. Useful life is contingent upon periodic staining. Linear footage is approximate by BRG. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 48

Component Listing Included Components 00010-20000 - Common Area Lighting 205 - Street: Poles & Fixtures Useful Life 5 5 Common Area Quantity 5 Unit of Measure Items Cost /Itm $2,000 18 100.00% Total Cost/Study $10,000 Replacement Year 2030 Future Cost $17,024 This is to replace the fiberglass pole and fixture. The life of the poles and fixtures should exceed the scope of this study. As such, we are projecting to replace 1 pole and fixture every 5 years. Repairs can also be made from this line item. BRG consulted with Tom Brown in making this projection. History will dictate the number of street poles to be replaced periodically. Costing provided by B & B Electric 21000 - Signage 100 - Miscellaneous Useful Life 5 Common Area & Pool Quantity 1 Unit of Measure Lump Sum Cost /LS $1,700 100.00% Total Cost/Study $1,700 Replacement Year 2013 Future Cost $1,751 This is to have funds available to replace miscellaneous association signage. 1 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 49

Component Listing Included Components 00010-21000 - Common Area Signage 792 - Monument Useful Life 10 3 Community Identity Monuments Quantity 3 Unit of Measure Items Cost /Itm $1,000 This is to have the stucco, concrete cap, lettering and logo repainted. 100.00% Total Cost/Study $3,000 Replacement Year 2014 Future Cost $3,183 2 23000-830 - Sump Pump Mechanical Equipment Useful Life 10 Ball Field Quantity 1 Unit of Measure Lump Sum Cost /LS $3,000 10 100.00% Total Cost/Study $3,000 Replacement Year 2022 Future Cost $4,032 This is to have funds available periodically to repair/replace the 3hp Goulds sump pumps, Rhombus control panel and distribution lines for the ball field drainage. This assumes installation of a back-up system that is provided for in another component. BRG consulted with Dan Byler. Costing provided by Dan's Pump & Filter LLC Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 50

Component Listing Included Components 00010-30000 - Common Area Miscellaneous 060 - Fountain: Mechanical Useful Life 15 Common Area Fountain Quantity 1 Unit of Measure Lump Sum Cost /LS $600 100.00% Total Cost/Study $600 Replacement Year 2015 Future Cost $656 This is to replace the mechanical equipment for the fountain including pumps, motors & fittings. 3 00020-01000 - Paving 111 - Asphalt Repairs & Sealing Useful Life 4 4,682 Sq. Ft. Pool Parking Lot Quantity 4,682 Unit of Measure Square Feet Cost /SqFt $0.130 100.00% Total Cost/Study $609 Replacement Year 2013 Future Cost $627 This is to apply two coats of Resurfacer XLR8 brand emulsion product. The square footage includes crackfill and other repair as needed, surface preparation prior to application and striping where applicable. Cost estimate and useful life provided by Shane Martin. Square footage is approximate by BRG. 1 Costing provided by AA Sealcoat Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 51

Component Listing Included Components 00020-03000 - Painting: Exterior 121 - Surface Restoration Useful Life 8 Building Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 100.00% Total Cost/Study $1,000 Replacement Year 2016 Future Cost $1,126 This is to paint with a premium exterior 100% acrylic solid stain such as Sherwin Williams Wood Scapes. Includes preparation, power washing, sanding, scraping and caulking as needed. Cost estimate and useful life provided by Randy Brown. 4 Costing provided by Brush Works Inc. 400 - Wrought Iron 330 Lin. Ft. Perimeter Fence Useful Life 10 Quantity 330 Unit of Measure Linear Feet Cost /l.f. $9.55 100.00% Total Cost/Study $3,150 Replacement Year 2013 Future Cost $3,244 1 This is to paint by hand the wrought iron fencing with a direct to metal (DTM) product. Includes preparation, sanding, scraping and primer as necessary. Cost estimate, useful and remaining life provided by Randy Brown. Linear footage is approximate by BRG. Costing provided by Brush Works Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 52

Component Listing Included Components 00020-03000 - Painting: Exterior 545 - Shade Structure Useful Life 4 West Shade Structure Quantity 1 Unit of Measure Lump Sum Cost /LS $700 100.00% Total Cost/Study $700 Replacement Year 2013 Future Cost $721 This is to prep and stain the wood portion of the west shade structure with a Cabot clear solution cedar tone brand stain. The metal posts to be painted with a direct to metal (DTM) material. Cost estimate by Randy Brown. 1 Costing provided by Brush Works Inc. 546 - Shade Structure Useful Life 4 Eest Shade Structure Quantity 1 Unit of Measure Lump Sum Cost /LS $600 100.00% Total Cost/Study $600 Replacement Year 2015 Future Cost $656 This is to prep and stain the wood portion of the east shade structure with a Cabot clear solution cedar tone brand stain. The metal posts to be painted with a direct to metal (DTM) material. Cost estimate by Randy Brown. 3 Costing provided by Brush Works Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 53

Component Listing Included Components 00020-03500 - 400 - Restrooms Painting: Interior Useful Life 10 Quantity 1 Unit of Measure Lump Sum Cost /LS $400 This is to paint restroom interiors with a latex product. 100.00% Total Cost/Study $400 Replacement Year 2016 Future Cost $450 4 04000 - Structural Repairs 810 - Shade Structure Useful Life 4 East & West Shade Structures Quantity 1 Unit of Measure Lump Sum Cost /LS $500 This is for replacement and repairs of the shade structures as needed. 100.00% Total Cost/Study $500 Replacement Year 2020 Future Cost $633 8 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 54

Component Listing Included Components 00020-04000 - Structural Repairs 911 - Building Maintenance Useful Life 10 Building Quantity 1 Unit of Measure Lump Sum Cost /LS $600 100.00% Total Cost/Study $600 Replacement Year 2020 Future Cost $760 This is for on-going repairs, as needed such as siding & trim, minor tile repair, doors, lights and utility services. 8 05000 - Roofing 443 - Pitched: Dimensional Composition Useful Life 30 14 Squares- Building Quantity 14 Unit of Measure Squares Cost /Sqrs $195 13 100.00% Total Cost/Study $2,633 Replacement Year 2025 Future Cost $3,866 This is to replace the existing 30 year Architectural Dimensional Composition shingle roof with a similar product. Square count, cost estimate, useful and remaining life provided by Chad Argon. Costing provided by Northwest Roof Restoration Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 55

Component Listing Included Components 00020-05000 - Roofing 701 - Gutters / Downspouts Useful Life 20 116 Lin. Ft. Building Quantity 116 Unit of Measure Linear Feet This is to replace the 6" gutters and downspouts. Linear footage is approximate by BRG. Cost /l.f. $4.00 10 100.00% Total Cost/Study $464 Replacement Year 2022 Future Cost $624 08000 - Rehab 220 - Bathrooms Useful Life 20 Restrooms Quantity 1 Unit of Measure Lump Sum Cost /LS $2,000 10 100.00% Total Cost/Study $2,000 Replacement Year 2022 Future Cost $2,688 This is to rehab and re-decorate the bathrooms. Includes items such as partitions, fixtures, lighting, tile, etc. This item can be further defined with association input. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 56

Component Listing Included Components 00020-12000 - Pool 110 - Resurface Useful Life 20 298 Lin. Ft. Quantity 298 Unit of Measure Linear Feet Cost /l.f. $95.00 100.00% Total Cost/Study $28,310 Replacement Year 2021 Future Cost $36,938 This is to resurface the pool after two applications of the epoxy paint material. Includes start-up costs. Cost estimate and remaining life provided by Dan Huff. Linear footage is approximate by BRG. 9 Costing provided by Treasure Valley Pool Maintenance 205 - Tile Useful Life 20 298 Lin. Ft. Quantity 298 Unit of Measure Linear Feet Cost /l.f. $12.00 100.00% Total Cost/Study $3,576 Replacement Year 2021 Future Cost $4,666 This is to remove and replace the existing tile. Cost estimate and remaining life provided by Dan Huff. Linear footage is approximate by BRG. 9 Costing provided by Treasure Valley Pool Maintenance Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 57

Component Listing Included Components 00020-12000 - Pool 600 - Deck: Re-Surface Useful Life 5 Quantity 1 Unit of Measure Lump Sum This is to patch as needed and seal the deck. Cost /LS $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2013 Future Cost $2,060 1 700 - Equipment: Replacement Useful Life 1 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 100.00% Total Cost/Study $1,000 Replacement Year 2013 Future Cost $1,030 This is to have funds available periodically to replace and service as needed the pool equipment. BRG consulted with Dan Huff in making this projection. 3 (1 Whisperflow & 2 A.O. Smith) 3hp pumps @ $1,000 ea. The useful life of the pumps can be extended by replacing bearings, impellers and seals; Replace sand in the 3 Pentair Triton II filters every 5 years @ $350/filter; Rebuild multi-port valves in sand filters @ $200/filter; Miscellaneous valves, gauges, etc. @ $300; 1 Costing provided by Treasure Valley Pool Maintenance Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 58

Component Listing Included Components 00020-12000 - Pool 701 - Equipment: Replacement Useful Life 12 - Chlorinator Quantity 1 Unit of Measure Lump Sum Cost /LS $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2013 Future Cost $2,060 This is to upgrade by replacing the existing pool pilot salt chlorine generator with a liquid chlorinator feeder. Cost estimate, useful and remaining life provided by Dan Huff. 1 Costing provided by Treasure Valley Pool Maintenance 720 - Heater Useful Life 20 Quantity 1 Unit of Measure Items Cost /Itm $11,000 10 100.00% Total Cost/Study $11,000 Replacement Year 2022 Future Cost $14,783 This is to replace the original PacFab MiniMax commercial series heater. Dan Huff has continued to replace/rebuild certain components in order to extend its useful life. These include the heat exchanger, headers and seals. Cost estimate and remaining life provided by Dan Huff. Costing provided by Treasure Valley Pool Maintenance Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 59

Component Listing Included Components 00020-12000 - Pool 750 - Pool Cover Useful Life 15 Quantity 1 Unit of Measure Items Cost /Itm $5,000 100.00% Total Cost/Study $5,000 Replacement Year 2017 Future Cost $5,796 This is to replace the pool cover. When not in use the pool cover is stored off site by Dan Huff. Cost estimate and remaining life provided by Dan Huff. Costing provided by Treasure Valley Pool Maintenance 5 900 - Furniture Useful Life 5 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,000 100.00% Total Cost/Study $1,000 Replacement Year 2017 Future Cost $1,159 This is to have funds available periodically for replacement of broken or damaged pool furniture. It is not anticipated that very much of this metal furniture will need replacement as with regular painting maintenance the useful life may be extended. History will dictate how many will need to be replaced over time. 5 Tables; 6 Umbrellas; 20 Barrel chairs; 22 Chaise lounge chairs; 8 Side tables; 20 Straight back chairs; 4 Trash receptacles; 5 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 60

Component Listing Included Components 00020-12000 - Pool 990 - Miscellaneous Useful Life 5 - Epoxy Paint Quantity 1 Unit of Measure Lump Sum Cost /LS $5,200 100.00% 4 Treatment [nr:1] Total Cost/Study $5,200 Replacement Year 2016 Future Cost $5,853 This is to paint the surface with an Olympic brand epoxy paint material. This process is relatively new and the useful life is not exactly known at this time. Dan Huff believes it should be approximately 5 years. The application should extend the useful life of the original surface. Cost estimate and useful life provided by Dan Huff. Costing provided by Treasure Valley Pool Maintenance 19000 - Fencing 240 - Wrought Iron: 8' 330 Lin. Ft. Perimeter Fence Useful Life 30 Quantity 330 Unit of Measure Linear Feet Cost /l.f. $45.00 20 100.00% Total Cost/Study $14,850 Replacement Year 2032 Future Cost $26,821 This is to replace the 8 wrought iron fencing. With aggressive paint maintenance, this component s life may be extended. Painting is provided for within another component. Linear footage is approximate by BRG. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 61

Component Listing Included Components 00020-23000 - Mechanical Equipment 600 - Water Heater Useful Life 15 Quantity 1 Unit of Measure Items Cost /Itm $400 100.00% Total Cost/Study $400 Replacement Year 2017 Future Cost $464 This is to replace the Bradford White 12 gallon restroom supply water heater. 5 30000 - Miscellaneous 540 - Access Control System Useful Life 15 Quantity 1 Unit of Measure Items Cost /Itm $2,000 100.00% Total Cost/Study $2,000 Replacement Year 2017 Future Cost $2,319 This is to replace the access control system with a technologically updated unit. Includes master control panel, card reader and exit release. Cost estimate and useful life provided by David Thompson. 5 Costing provided by Alarm Systems Integration Inc. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 62

Component Listing Included Components 00030-01000 - Paving 112 - Asphalt Repairs & Sealing Useful Life 4 3,633 Sq. Ft. Parking Lot Quantity 3,633 Unit of Measure Square Feet Cost /SqFt $0.130 100.00% Total Cost/Study $472 Replacement Year 2013 Future Cost $486 This is to apply two coats of Resurfacer XLR8 brand emulsion product. The square footage includes crackfill and other repair as needed, surface preparation prior to application and striping where applicable. Cost estimate and useful life provided by Shane Martin. Square footage is approximate by BRG. 1 Costing provided by AA Sealcoat Inc. 601 - Brick Pavers Useful Life 10 Quantity 1 Unit of Measure Lump Sum Cost /LS $500 100.00% Total Cost/Study $500 Replacement Year 2020 Future Cost $633 This is to have funds available for periodic repair/replacement of brick pavers as needed. 8 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 63

Component Listing Included Components 00030-03000 - Painting: Exterior 122 - Surface Restoration Useful Life 8 Quantity 1 Unit of Measure Lump Sum Cost /LS $1,500 100.00% Total Cost/Study $1,500 Replacement Year 2016 Future Cost $1,688 This is to paint with a premium exterior 100% acrylic solid stain such as Sherwin Williams Wood Scape. Includes preparation, power washing, sanding, scraping and caulking as needed. Cost estimate and useful life provided by Randy Brown. 4 Costing provided by Brush Works Inc. 03500-300 - Painting: Interior Useful Life 10 Interior Quantity 1 Unit of Measure Lump Sum Cost /LS $1,575 100.00% Total Cost/Study $1,575 Replacement Year 2021 Future Cost $2,055 This is to paint the clubhouse interior with a high quality latex paint material such as Sherwin Williams or equal. Cost estimate and useful life provided by Chad Walker. 9 Costing provided by Walker Painting LLC Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 64

Component Listing Included Components 00030-04000 - Structural Repairs 196 - Siding & Trim Useful Life 8 Quantity 1 Unit of Measure Lump Sum Cost /LS $500 100.00% Total Cost/Study $500 Replacement Year 2016 Future Cost $563 This is to have funds available for repairs/replacement of siding and/or trim as needed in concert with the painting cycle. 4 670 - Metal Railings Useful Life 30 47 Lin. Ft. Quantity 47 Unit of Measure Linear Feet Cost /l.f. $30.00 18 100.00% Total Cost/Study $1,410 Replacement Year 2030 Future Cost $2,400 This is to replace the existing railings with new metal. With aggressive paint maintenance, this component's life may be extended. Painting is provided for within another component. Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 65

Component Listing Included Components 00030-04000 - 912 - Doors Structural Repairs Useful Life 5 2 Quantity 2 Unit of Measure Items Cost /Itm $500 13 100.00% Total Cost/Study $1,000 Replacement Year 2025 Future Cost $1,469 This is to have funds available to replace interior and exterior clubhouse doors as needed. Includes 5 interior doors, 1 exterior solid and two 1/2 lite exterior doors. 930 - Windows Useful Life 30 Quantity 1 Unit of Measure Lump Sum Cost /LS $10,850 This is to replace 29 exterior windows made up of three different sizes. 18 100.00% Total Cost/Study $10,850 Replacement Year 2030 Future Cost $18,471 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 66

Component Listing Included Components 00030-05000 - Roofing 444 - Pitched: Dimensional Composition Useful Life 30 25 Squares- Quantity 25 Unit of Measure Squares Cost /Sqrs $195 13 100.00% Total Cost/Study $4,778 Replacement Year 2025 Future Cost $7,016 This is to replace the existing 30 year Architectural Dimensional Composition shingle roof with a similar product. Square count, cost estimate, useful and remaining life provided by Chad Argon. Costing provided by Northwest Roof Restoration 702 - Gutters / Downspouts Useful Life 20 100 Lin. Ft. Quantity 100 Unit of Measure Linear Feet This is to replace the 6" gutters and downspouts. Linear footage is approximate by BRG. Cost /l.f. $4.00 100.00% Total Cost/Study $400 Replacement Year 2021 Future Cost $522 9 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 67

Component Listing Included Components 00030-08000 - Rehab 240 - Useful Life 25 Quantity 1 Unit of Measure Lump Sum Cost /LS $4,500 13 100.00% Total Cost/Study $4,500 Replacement Year 2025 Future Cost $6,608 This is for a general rehab of the clubhouse including the restrooms, kitchen, blinds, light fixtures, sconces, ceiling fan, art work, vinyl flooring, pot belly stove, etc. 22000 - Office Equipment 100 - Miscellaneous Useful Life 5 Office Quantity 1 Unit of Measure Lump Sum Cost /LS $500 This is to replace miscellaneous office equipment such as: 1 HP Printer; 1 Compaq Presario PC; 2 Arm chairs; 1 Executive chair; 1 Large executive desk; 2 2 Drawer lateral file cabinets; 100.00% Total Cost/Study $500 Replacement Year 2017 Future Cost $580 5 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 68

Component Listing Included Components 00030-23000 - 200 - HVAC Mechanical Equipment Useful Life 15 Quantity 1 Unit of Measure Lump Sum Cost /LS $5,300 100.00% Total Cost/Study $5,300 Replacement Year 2015 Future Cost $5,791 This is to replace the gas fired Amana Model #80SSE Air Command package furnace/air conditioning unit with a Lennox or equal and Honeywell thermostat if needed. Cost estimate and useful life provided by Robert Davis. 3 Costing provided by Ultimate Heating 600 - Water Heater Useful Life 10 Quantity 1 Unit of Measure Items Cost /Itm $800 This is to replace the Bradford White 40 gallon gas fired water heater. 100.00% Total Cost/Study $800 Replacement Year 2014 Future Cost $849 2 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 69

Component Listing Included Components 00030-24000 - Furnishings 500 - Furnishings Useful Life 5 Quantity 1 Unit of Measure Lump Sum This is to replace various furnishings as needed. 4 Stuffed chairs; 2 End tables; 1 Sharp 24" TV; 2 Table lamps; 40 Samsonite folding chairs; 6 Six foot folding tables; 2 Five foot folding tables; Cost /LS $800 10 100.00% Total Cost/Study $800 Replacement Year 2022 Future Cost $1,075 25000 - Flooring 200 - Carpeting Useful Life 10 101 Sq. Yds. Quantity 101 Unit of Measure Square Yard Cost /SqYd $28.50 100.00% Total Cost/Study $2,879 Replacement Year 2021 Future Cost $3,756 This is to replace the nylon Sequence style commercial grade carpet and pad. Square yards, cost estimate and useful life provided by Nancy Mortenson. 9 Costing provided by Majestic Flooring & Design Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 70

Component Listing Included Components 00030-27000 - Appliances 200 - Refrigerator Useful Life 20 GE Side by Side Quantity 1 Unit of Measure Items This is to replace the refrigerator. Cost /Itm $1,000 100.00% Total Cost/Study $1,000 Replacement Year 2020 Future Cost $1,267 8 230 - Stove Useful Life 20 GE True Temp Quantity 1 Unit of Measure Items This is to replace the stove. Cost /Itm $400 100.00% Total Cost/Study $400 Replacement Year 2020 Future Cost $507 8 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 71

Component Listing Included Components 00030-27000 - Appliances 240 - Dishwasher Useful Life 15 GE Triton Profile Quantity 1 Unit of Measure Items This is to replace the automatic dishwasher. Cost /Itm $500 100.00% Total Cost/Study $500 Replacement Year 2015 Future Cost $546 3 Version 2/5/2013 12:20:33 PM Browning Reserve Group 2013 72