Hawaiiana Management Company, Ltd. Kukui Grove Executive Center 4370 Kukui Grove Street, Suite #208 Lihue, Hawaii 96766 Tel: (808) 240-3218 Fax: (808) 245-6583 Internet: www.hmcmgt.com November 2017 Subject: Kuhio Shores at Poipu, 2018 Budget Aloha Owners of Kuhio Shores, The 2018 Operating Budget and reserve plan was approved by your Board of Directors on October 30, 2017. After careful review of the Association's current and long-range requirements and to conform to Hawaii State Reserve Funding Laws, the Board has found it necessary to increase total maintenance fees by 11.419% for 2018 and cable fees to $42 per unit per month, which will include Spectrum TV and high-speed internet. A copy of the budget and reserve plan is enclosed for your review. The budget was prepared on a cash basis and the association is using the cash flow analysis method to compute the reserve funding requirements. Payment by E-check, Credit Card or Debit Card: You can now pay your maintenance fees by E-check and credit/debit card. Go to Hawaiiana Management website at http://www.hmcmgt.com, click on Online Payments and follow the instructions. There is a nominal service fee for payment by E-check debit/credit card but it is less than the late fee and interest charges. As a friendly reminder, maintenance fee payments are due and payable on the first day of each month. If payment is not deposited by the end of the month, we are required to assess a late fee of $75 and interest of 1% on the outstanding account balance and 10% on the unpaid regular and special assessments. Further, the association has a priority of payment policy which requires that all payments will applied to owner accounts in the following order: 1. Payments will first be applied to legal charges, if any, charged to the account. 2. Remaining funds in the payment would then be applied to any late fees and interest. 3. Remaining funds in the payment would then be applied to any fines. 4. Remaining funds in the payment would then be applied to any special assessments. 5. Remaining funds in the payment would then be applied to any miscellaneous charges. 6. Remaining funds in the payment would then be applied to any maintenance fees on the account, applied to the oldest balances first. Acceptance and applications of such payment will not be construed as a waiver of any rights the association shall have against the delinquent owner. Should you have any questions, or require additional information, please feel free to contact me at (808) 203-5209, or email to lucyt@hmcmgt.com. Sincerely, FOR THE BOARD OF DIRECTORS AOAO Kuhio Shores at Poipu Lucy Taylor, CMCA, AMS, Management Executive.
Hawaiiana Management Company, Ltd 2018 Monthly Cash Operating Budget For Kuhio Shores at Poipu Approved by Board of Directors on October 30, 2017 Page 2 N DESCRIPTION JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC ANNUAL REVENUE 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 TOTAL MAINTENANCE FEES 47,502 47,502 47,502 47,502 47,502 47,502 47,502 47,502 47,502 47,502 47,502 47,502 570,026 RESERVE ASSESSMENT 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 132,000 LOAN ASSMT #1 4,479 4,479 4,479 4,479 4,479 4,479 4,479 4,479 4,479 4,479 4,479 4,479 53,748 LOAN ASSMT #2 1,191 1,191 1,191 1,191 1,191 1,191 1,191 1,191 1,191 1,191 1,191 1,191 14,292 CABLE/INTERNET 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 37,800 INVESTMENT INTEREST 150 150 150 150 150 150 150 150 150 150 150 150 1,800 LAUNDRY 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 2,050 24,600 TOTAL REVENUE 69,522 69,522 69,522 69,522 69,522 69,522 69,522 69,522 69,522 69,522 69,522 69,522 834,266 UTILITIES JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL ELECTRICITY 3,678 3,678 3,678 3,678 3,678 3,678 3,678 3,678 3,678 3,678 3,678 3,678 44,136 WATER 935 935 935 935 935 935 935 935 935 935 935 935 11,220 TELEPHONE 350 350 350 350 350 350 350 350 350 350 350 350 4,200 TOTAL UTILITIES 4,963 4,963 4,963 4,963 4,963 4,963 4,963 4,963 4,963 4,963 4,963 4,963 59,556 CONTRACT SERVICES JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL SEWAGE/MAINT/REMOVAL 1,630 1,630 1,630 1,630 1,630 1,630 1,630 1,630 1,630 1,630 1,630 1,630 19,560 CONTRACT-ELEVATOR 1,164 1,164 1,164 1,164 1,164 1,164 1,164 1,164 1,164 1,164 1,164 1,164 13,968 PLANTS & TREES 467 467 467 467 467 467 467 467 467 467 467 467 5,604 CONTRACT-PEST CONTROL 290 290 290 290 290 290 290 290 290 290 290 290 3,480 CONTRACT-REFUSE 1,389 1,389 1,389 1,389 1,389 1,389 1,389 1,389 1,389 1,389 1,389 1,389 16,668 CONTRACT-CABLE 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 3,150 37,800 TOTAL CNTRCT SVCS 8,090 8,090 8,090 8,090 8,090 8,090 8,090 8,090 8,090 8,090 8,090 8,090 97,080 MAINTENANCE JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL BUILDING-MAINT/REPAIR 418 418 418 418 418 418 418 418 418 418 418 418 5,016 LAUNDRY MACHINES-MAINT/RPR 40 40 40 40 40 40 40 40 40 40 40 40 480 GROUNDS 610 610 610 610 610 610 610 610 610 610 610 610 7,320 PLUMBING 100 100 100 100 100 100 100 100 100 100 100 100 1,200 PAINT 150 150 150 150 150 150 150 150 150 150 150 150 1,800 FIRE SYSTEMS 100 100 100 100 100 100 100 100 100 100 100 100 1,200 BLDG MAINT-SUPPLIES 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 3,000 36,000 WINDOWS & DOORS RPR/MAINT 250 250 250 250 250 250 250 250 250 250 250 250 3,000 TOTAL MAINTENANCE 4,668 4,668 4,668 4,668 4,668 4,668 4,668 4,668 4,668 4,668 4,668 4,668 56,016
Approved by Board of Directors on October 30, 2017 2018 Monthly Operating Budget For Kuhio Shores at Poipu Page 3 DESCRIPTION JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC ANNUAL PROFESSIONAL SVCS 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 2018 TOTAL ADMIN SUPPLIES & SVCS 750 750 750 750 750 750 750 750 750 750 750 750 9,000 MANAGEMENT SRVCS 1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406 1,406 16,875 AUDIT 3,120 3,120 LEGAL FEES GENERAL 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 1,400 16,800 TOTAL PROF. SERVICES 6,676 3,556 3,556 3,556 3,556 3,556 3,556 3,556 3,556 3,556 3,556 3,556 45,795 PAYROLL & BENEFITS JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL PAYROLL-MANAGER 5,345 5,452 5,452 5,452 8,178 5,452 5,452 5,452 5,452 5,452 8,178 5,452 70,769 PAYROLL-MAINTENANCE 3,272 3,272 3,272 3,272 4,908 3,272 3,272 3,272 3,272 3,272 4,908 3,272 42,536 PAYROLL-SECURITY 3,333 3,333 3,333 3,333 5,000 3,333 3,333 3,333 3,333 3,333 5,000 3,333 43,332 WORKERS COMP 8,005 8,005 TDI 157 157 157 157 627 HEALTH CARE 3,003 3,003 3,003 3,003 3,003 3,003 3,003 3,003 3,003 3,003 3,003 3,003 36,039 PAYROLL TAXES 1,069 1,069 1,069 1,069 1,603 1,069 1,069 1,069 1,069 1,069 1,603 1,069 13,897 PAYROLL BONUS 485 485 485 485 485 485 485 485 485 485 485 485 5,820 GROUP IRA 210 210 210 210 210 210 210 210 210 210 210 210 2,520 TOTAL P/R & BENEFITS 24,879 16,824 16,824 16,981 23,388 16,824 16,981 16,824 16,824 16,981 23,388 16,824 223,544 OTHER EXPENSES JAN FEB MAR APR MAY JUNE JULY AUG SEPT OCT NOV DEC TOTAL INSURANCE-COMML PACKAGE 2,862 2,862 2,862 2,862 2,862 2,862 2,862 2,862 2,862 2,862 2,862 2,862 34,344 INSURANCE-FLOOD 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 8,024 96,288 INSURANCE-D&O 260 260 260 260 260 260 260 260 260 260 260 260 3,120 INSURANCE-FIDELITY 48 48 48 48 48 48 48 48 48 48 48 48 576 INSURANCE-UMBRELLA 275 275 275 275 275 275 275 275 275 275 275 275 3,300 INSURANCE-AUTO 93 93 93 93 93 93 93 93 93 93 93 93 1,116 LOAN INTEREST 1,456 1,456 1,456 1,456 1,456 1,456 1,456 1,456 1,456 1,456 1,456 1,456 17,472 LEASE RENT 100 100 100 100 100 100 100 100 100 100 100 100 1,200 STATE GENERAL EXCISE TAX 150 150 150 150 150 150 150 150 150 150 150 150 1,800 TOTAL OTHER EXP. 13,268 13,268 13,268 13,268 13,268 13,268 13,268 13,268 13,268 13,268 13,268 13,268 159,216 TOTAL OP EXPENSE 62,544 51,370 51,370 51,526 57,933 51,370 51,526 51,370 51,370 51,526 57,933 51,370 641,207 LOAN PAYMENTS 5,088 5,088 5,088 5,088 5,088 5,088 5,088 5,088 5,088 5,088 5,088 5,088 61,056 TRANSFER TO RESERVES 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 11,000 132,003
KUHIO SHORES AT POIPU YEAR 2018 RESERVE PROJECTS AS OF OCTOBER 30, 2017 COST NOW and NORM LIFE values are best estimates by Hawaiiana Management and vendors who were nice enough to inspect the property or give a best guess. Page 4 It may be advisable to employ an expert to evaluate those projects with high cost. RESERVE FUND STATUS - PERCENT FUNDED METHOD M. FEE RESERVE. MAINT. First Plan Year - Calendar 2018 Reference Year 2017 THE MODEL'S FINDINGS FOR % FUNDING 2017 Deficit CHANGE CONTRIB FEES Final Plan Year 2037 Recommended Reserve Funding 100% 596,031 97% 574,274 1,035,991 2017 Maintenance Fees 527,078 2018 Maint Fees 570,026 Target Reserve Funding Level 60% 243,220 31.27% 230,166 691,883 2017 Other Income 251,572 2018 Othr Inc 264,240 Minimum Reserve Funding Level 50% 155,018 15% 144,139 605,856 2017 Operating Expenses -599,012 2018 Exp -641,207 EOY 2018 Funding %@ Approved Lev 45.83% 8% 108,309 570,026 2017 Reserve Contribution 179,638 2018 Contribution 193,059 Condition Codes Source Codes Source Codes Projected Reserves At Start of 2018 285,995 Target Funding L 60% EXCELNT E Contractor Proposal 1 Cost at Similar Project 5 Projected Reserve % at Start of 2018 32.4% Tgt Ann Contrib 69,040 GOOD G Contractor Estimate 2 Statistical Guideline 6 Minimum Inflation 2.5% Req Contrib-Tgt 312,260 FAIR F Engineer/Arch Estimate 3 Inflate First Year? Yes Projected Savings Interest 0.4% App. % Change 8.1% POOR P Cost When Last Done 4 CAPITAL INVENTORY NORM DONE LAST CO NEXT COST COST FUNDING EOY ITEM ADJUSTMENT LIFE LAST COST ND DUE DATE NOW SRC RQMNT RES DEFICIT ELEVATOR CABS 8 15 1995 2018 25,750 24,630 24,630 SPALLING MAINTENANCE 1 2017 2018 25,000 24,390 24,390 WINDOWS - 2018-971 999 1990 2018 10,000 9,643 9,643 SEAWALL 10 3 2005 2018 5,000 4,615 4,615 WINDOW HARDWARE 1 1 2016 2018 5,000 4,878 4,878 FLATWORK 1 2017 2018 5,000 4,878 4,878 LAUNDRY CLOTHES DRYERS (3) 3 7 2008 2018 4,500 4,050 4,050 LAUNDRY - WASHING MACHINE (3) 6 2012 2018 4,500 3,750 3,750 EXTERIOR PAINTING - BUILDING 3 7 2009 2019 247,200 197,760 197,760 WINDOW SEALANT 3 7 2009 2019 12,360 9,888 7,400 2,488 SOLAR PANELS 1 10 2008 2019 10,300 8,427 8,427 HOT WATER HEATERS (2) 3 8 2008 2019 5,150 4,214 4,214 PARKING LOT -SLURRY SEAL COAT 5 2015 2020 20,703 8,281 8,281 LANDSCAPING/IRRIGATION IMPROVEMENTS 8 2012 2020 10,300 6,438 6,438 PUMPS - SEWER 15 2006 2021 87,550 64,203 64,203 MAIN LOBBY RENOVATIONS 2 20 1999 2021 30,000 24,545 24,545 DRY STANDPIPE 5 2017 2022 3,090 ELEVATOR MODERNIZATION 6 35 1982 2023 180,250 153,872 153,872 SEWER SYSTEM - EQUIPMENT 10 2013 2023 30,900 12,360 12,360 LAUNDRY - WASHING MACHINE (3) 6 2017 2023 6,000 LOBBY/ELECTRICAL/SEWAGE ROOF 15 2009 2024 20,600 10,987 10,987 LAUNDRY CLOTHES DRYERS (4) 7 2017 2024 4,500 PARKING LOT -ASPHALT OVERLAY 25 2000 2025 129,780 88,250 88,250 MAILBOXES 25 2000 2025 3,605 2,451 2,451 LIGHTING 10 2017 2027 30,000 TRUCK 10 2017 2027 12,000 LIGHTING-GROUNDS 10 2017 2027 3,000 GUTTERS AND DOWNSPOUTS 10 2017 2027 2,500 RAILING POST REPAIRS - LANAIS 1 35 1993 2029 154,500 103,000 103,000 ROOF 1 20 2008 2029 133,900 57,386 57,386 ELEVATOR LOBBY & LAUNDRY RM TILE FLOOR 20 2012 2032 21,000 5,250 5,250 BBQ/TRASH AREA 25 2008 2033 30,900 11,124 11,124 LANDSCAPE UPGRADE 25 2008 2033 25,750 9,270 9,270 RAILING POST REPAIRS - CORRIDORS 25 2011 2036 61,800 14,832 14,832 FIRE SYSTEM 25 2013 2038 30,900 4,944 4,944 EMERGENCY GENERATOR 30 2011 2041 18,540 3,708 3,708 2017 End Yr Totals 1,411,828 882,026 285,995 596,031 1268BGT18 FINAL &R10/30/2017
1268 Kuhio Shores at Poipu Board Approved 2018 Cash Flow Plan Prepared By: Lucy Taylor and Hawaiiana Management Company, Ltd Maintenance Fee Plan to Accomplish All Known Improvements and Repairs For Next 30 Years Assumed Rate of Inflation: 2.5% Assumed Savings Interest Rate: 0.4% 30 Year Projection of Maintenance Fee Changes 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 Maint Fee Resv Exp Balance 100% Reserve 60% Reserve Contingency Reserve Fund $0. CY Starting -Reserve -Loan -Operating +Maint. +Other +Interest =Ending % Maint. Fee Net Reserve Percent Year Balance Expense Payments Expenses Fees Income Income Balance Change Contrib. Funded 2018 285,995 84,750 61,056 641,207 570,026 264,240 Included 333,248 8.1% 47,253 39% 2019 333,248 317,761 61,056 657,237 587,127 262,440 960 147,721 3.0% (186,487) 21% 2020 147,721 69,344 0 673,668 604,741 262,440 839 272,729 3.0% 124,169 35% 2021 272,729 169,664 0 690,510 622,883 262,440 1,141 299,019 3.0% 25,149 38% 2022 299,019 42,045 0 707,773 641,570 262,440 1,504 454,716 3.0% 154,192 50% 2023 454,716 285,285 0 725,467 660,817 262,440 1,644 368,864 3.0% (87,495) 47% 2024 368,864 80,715 0 743,604 680,641 262,440 1,713 489,340 3.0% 118,763 56% 2025 489,340 230,115 0 762,194 701,060 262,440 1,900 462,431 3.0% (28,808) 56% 2026 462,431 358,893 0 781,248 715,082 262,440 1,524 301,336 2.0% (162,620) 46% 2027 301,336 119,567 0 800,780 729,383 262,440 1,348 374,161 2.0% 71,476 52% 2028 374,161 57,988 0 820,799 743,971 262,440 1,752 503,536 2.0% 127,624 60% 2029 503,536 445,716 0 841,319 758,850 262,440 1,483 239,274 2.0% (265,745) 41% 2030 239,274 87,691 0 862,352 781,616 262,440 1,145 334,432 3.0% 94,013 48% 2031 334,432 54,453 0 883,911 805,064 262,440 1,596 465,168 3.0% 129,140 55% 2032 465,168 89,851 0 906,009 829,216 262,440 2,052 563,017 3.0% 95,796 59% 2033 563,017 547,253 0 928,659 854,093 262,440 1,533 205,171 3.0% (359,379) 36% 2034 205,171 0 0 951,875 879,715 262,440 1,201 396,652 3.0% 190,280 54% 2035 396,652 48,468 0 975,672 906,107 262,440 1,875 542,934 3.0% 144,407 64% 2036 542,934 263,814 0 1,000,064 933,290 262,440 2,035 476,822 3.0% (68,148) 63% 2037 476,822 80,875 0 1,025,066 961,289 262,440 2,143 596,752 3.0% 117,788 70% 2038 596,752 58,008 0 1,050,692 990,127 262,440 2,675 743,294 3.0% 143,867 76% 2039 743,294 67,856 0 1,076,960 1,019,831 262,440 3,248 883,998 3.0% 137,456 81% 2040 883,998 482,491 0 1,103,884 1,050,426 262,440 2,989 613,479 3.0% (273,508) 76% 2041 613,479 96,242 0 1,131,481 1,081,939 262,440 2,687 732,822 3.0% 116,656 81% 2042 732,822 22,772 0 1,159,768 1,114,397 262,440 3,320 930,439 3.0% 194,297 86% 2043 930,439 66,837 0 1,188,762 1,136,685 262,440 4,009 1,077,974 2.0% 143,526 89% 2044 1,077,974 19,571 0 1,218,481 1,159,419 262,440 4,680 1,266,461 2.0% 183,807 90% 2045 1,266,461 58,832 0 1,248,943 1,182,607 262,440 5,340 1,409,073 2.0% 137,272 89% 2046 1,409,073 8,984 0 1,280,167 1,206,259 262,440 5,995 1,594,617 2.0% 179,549 89% 2047 1,594,617 646,967 0 1,312,171 1,230,385 262,440 5,446 1,133,750 2.0% (466,313) 81% Page 5 10/30/2017 11:01 AM