Breckenridge, Colorado SHOA Current Assessment Funding Model Summary Report Date June 01, 2010 Budget Year Beginning October 01, 2010 Budget Year Ending September 30, 2011 Total Units 11 Report Parameters Inflation 3.00% Interest Rate on Reserve Deposit 3.00% Tax Rate on Interest 30.00% Contingency 3.00% 2010 Beginning Balance $100,155.00 This Townhome association's asset components comprise 5 luxury duplex buildings (10 duplex units total) plus 1 single family home, with common entrance asphalt roadway, individual asphalt driveways and fully landscaped areas. A separate hot tub room is located adjacent one of the buildings. Construction of the homes commenced in 1993 and was completed in 1994. With major repairs to the exterior being conducted over the last couple of years, primarily to the retaining walls and synthetic stucco facade, the complex appears in great condition overall. The asphalt surfaces, some exterior woodwork re-staining, and minor stucco repairs, appear to be the only reserve projects requiring imminent attention. The association has not previously contracted a professional reserve study, however, it has drafted its own budget based on many of the necessary parameters. Current Assessment Funding Model Summary of Calculations Required Monthly Contribution $1,583.33 $143.94 per unit monthly Average Net Monthly Interest Earned $191.86 Total Monthly Allocation to Reserves $1,775.19 $161.38 per unit monthly PAGE 2-1
SHOA Current Assessment Funding Model Projection Beginning Balance: $100,155 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribution Interest Expenditures Reserves Reserves Funded 2010 314,986 19,000 2,302 1,832 119,625 221,074 54% 2011 324,436 19,570 2,739 1,028 140,907 244,585 57% 2012 334,169 20,157 3,105 5,342 158,827 264,760 59% 2013 344,194 20,762 2,015 75,015 106,589 212,112 50% 2014 354,520 21,385 2,437 3,185 127,226 234,730 54% 2015 365,155 22,026 2,950 152,202 261,997 58% 2016 376,110 22,687 3,417 3,290 175,017 287,197 60% 2017 387,393 24,048 3,901 4,031 198,935 312,989 63% 2018 399,015 25,491 2,990 71,681 155,735 268,365 58% 2019 410,986 27,021 3,451 7,571 178,635 291,140 61% 2020 423,315 28,642 4,009 5,043 206,242 317,966 64% 2021 436,015 30,360 4,721 241,323 351,655 68% 2022 449,095 32,182 5,361 5,862 273,004 380,855 71% 2023 462,568 34,113 321,957-14,840 76,029-19% 2024 476,445 36,160 11 4,167 17,163 100,275 17% 2025 490,738 38,329 803 56,295 130,465 43% 2026 505,460 40,629 1,563 4,540 93,946 157,554 59% 2027 520,624 40,629 2,377 3,768 133,184 187,116 71% 2028 536,243 40,629 3,110 8,442 168,480 213,466 78% 2029 552,330 40,629 3,785 11,924 200,970 237,801 84% 2030 568,900 40,629 4,656 3,308 242,947 272,933 89% 2031 585,967 40,629 5,616 289,192 313,577 92% 2032 603,546 40,629 6,352 11,559 324,614 344,140 94% 2033 621,653 40,629 4,475 135,486 234,232 245,030 95% 2034 640,302 40,629 5,353 3,724 276,490 283,892 97% 2035 659,511 40,629 6,283 2,089 321,314 326,721 98% 2036 679,297 40,629 7,152 5,941 363,153 367,839 98% 2037 699,675 40,629 8,058 5,065 406,776 412,250 98% 2038 720,666 40,629 7,633 68,714 386,323 391,569 98% 2039 742,286 40,629 8,367 13,674 421,645 429,911 98% PAGE 2-2
SHOA Current Assessment Funding Model VS Fully Funded Chart The Current Assessment Funding Model is based on the current annual assessment, parameters, and reserve fund balance. Because it is calculated using the current annual assessment, it will give the accurate projection of how well the association is funded for the next 30 years of planned reserve expenditures. PAGE 2-3
Breckenridge, Colorado SHOA Threshold Funding Model Summary Report Date June 01, 2010 Budget Year Beginning October 01, 2010 Budget Year Ending September 30, 2011 Total Units 11 Report Parameters Inflation 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 3.00% Tax Rate on Interest 30.00% Contingency 3.00% 2010 Beginning Balance $100,155.00 This Townhome association's asset components comprise 5 luxury duplex buildings (10 duplex units total) plus 1 single family home, with common entrance asphalt roadway, individual asphalt driveways and fully landscaped areas. A separate hot tub room is located adjacent one of the buildings. Construction of the homes commenced in 1993 and was completed in 1994. With major repairs to the exterior being conducted over the last couple of years, primarily to the retaining walls and synthetic stucco facade, the complex appears in great condition overall. The asphalt surfaces, some exterior woodwork re-staining, and minor stucco repairs, appear to be the only reserve projects requiring imminent attention. The association has not previously contracted a professional reserve study, however, it has drafted its own budget based on many of the necessary parameters. Threshold Funding Model Summary of Calculations Required Monthly Contribution $1,893.48 $172.13 per unit monthly Average Net Monthly Interest Earned $195.41 Total Monthly Allocation to Reserves $2,088.89 $189.90 per unit monthly PAGE 2-4
SHOA Threshold Funding Model Projection Beginning Balance: $100,155 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribution Interest Expenditures Reserves Reserves Funded 2010 314,986 22,722 2,345 1,832 123,390 221,074 55% 2011 324,436 23,403 2,862 1,028 148,628 244,585 60% 2012 334,169 24,106 3,314 5,342 170,706 264,760 64% 2013 344,194 24,829 2,313 75,015 122,833 212,112 57% 2014 354,520 25,574 2,830 3,185 148,052 234,730 63% 2015 365,155 26,341 3,441 177,833 261,997 67% 2016 376,110 27,131 4,012 3,290 205,686 287,197 71% 2017 387,393 27,945 4,596 4,031 234,195 312,989 74% 2018 399,015 28,783 3,775 71,681 195,073 268,365 72% 2019 410,986 29,647 4,315 7,571 221,464 291,140 76% 2020 423,315 30,536 4,938 5,043 251,895 317,966 79% 2021 436,015 31,452 5,701 289,048 351,655 82% 2022 449,095 32,396 6,375 5,862 321,957 380,855 84% 2023 462,568 26,010 298 321,957 26,308 76,029 34% 2024 476,445 26,790 776 4,167 49,707 100,275 49% 2025 490,738 27,594 1,370 78,670 130,465 60% 2026 505,460 28,422 1,897 4,540 104,448 157,554 66% 2027 520,624 29,274 2,470 3,768 132,424 187,116 70% 2028 536,243 30,152 2,974 8,442 157,108 213,466 73% 2029 552,330 31,057 3,434 11,924 179,675 237,801 75% 2030 568,900 31,989 4,106 3,308 212,461 272,933 77% 2031 585,967 32,948 4,882 250,291 313,577 79% 2032 603,546 33,937 5,450 11,559 278,119 344,140 80% 2033 621,653 34,955 3,424 135,486 181,013 245,030 73% 2034 640,302 36,004 4,171 3,724 217,464 283,892 76% 2035 659,511 37,084 4,991 2,089 257,450 326,721 78% 2036 679,297 38,196 5,770 5,941 295,475 367,839 80% 2037 699,675 39,342 6,608 5,065 336,361 412,250 81% 2038 720,666 40,522 6,139 68,714 314,307 391,569 80% 2039 742,286 41,738 6,852 13,674 349,224 429,911 81% PAGE 2-5
SHOA Threshold Funding Model VS Fully Funded Chart The Threshold Funding Model calculates the minimum reserve assessments, with the restriction that the reserve balance is not allowed to go below $0 or other predetermined threshold, during the period of time examined. All funds for planned reserve expenditures will be available on the first day of each fiscal year. The Threshold Funding Model allows the client to choose the level of conservative funding they desire by choosing the threshold dollar amount. PAGE 2-6
Breckenridge, Colorado SHOA Component Funding Model Summary Report Date June 01, 2010 Budget Year Beginning October 01, 2010 Budget Year Ending September 30, 2011 Total Units 11 Report Parameters Inflation 3.00% Interest Rate on Reserve Deposit 3.00% Tax Rate on Interest 30.00% Contingency 3.00% 2010 Beginning Balance $100,155.00 This Townhome association's asset components comprise 5 luxury duplex buildings (10 duplex units total) plus 1 single family home, with common entrance asphalt roadway, individual asphalt driveways and fully landscaped areas. A separate hot tub room is located adjacent one of the buildings. Construction of the homes commenced in 1993 and was completed in 1994. With major repairs to the exterior being conducted over the last couple of years, primarily to the retaining walls and synthetic stucco facade, the complex appears in great condition overall. The asphalt surfaces, some exterior woodwork re-staining, and minor stucco repairs, appear to be the only reserve projects requiring imminent attention. The association has not previously contracted a professional reserve study, however, it has drafted its own budget based on many of the necessary parameters. Component Funding Model Summary of Calculations Required Monthly Contribution $2,192.71 $199.34 per unit monthly Average Net Monthly Interest Earned $198.83 Total Monthly Allocation to Reserves $2,391.55 $217.41 per unit monthly PAGE 2-7
SHOA Component Funding Model Projection Beginning Balance: $100,155 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribution Interest Expenditures Reserves Reserves Funded 2010 314,986 26,313 2,386 1,832 127,022 221,074 57% 2011 324,436 26,786 2,978 1,028 155,759 244,585 63% 2012 334,169 27,353 3,502 5,342 181,273 264,760 68% 2013 344,194 28,780 2,582 75,015 137,620 212,112 64% 2014 354,520 28,965 3,182 3,185 166,583 234,730 70% 2015 365,155 29,384 3,869 199,835 261,997 76% 2016 376,110 29,889 4,510 3,290 230,944 287,197 80% 2017 387,393 30,429 5,160 4,031 262,501 312,989 83% 2018 399,015 31,895 4,411 71,681 227,126 268,365 84% 2019 410,986 31,213 5,013 7,571 255,781 291,140 87% 2020 423,315 30,362 5,664 5,043 286,764 317,966 90% 2021 436,015 28,261 6,404 321,429 351,655 91% 2022 449,095 28,100 7,013 5,862 350,679 380,855 92% 2023 462,568 33,070 988 321,957 62,780 76,029 82% 2024 476,445 32,019 1,609 4,167 92,240 100,275 91% 2025 490,738 32,361 2,326 126,928 130,465 97% 2026 505,460 32,839 2,971 4,540 158,198 157,554 100% 2027 520,624 32,788 3,650 3,768 190,867 187,116 102% 2028 536,243 31,832 4,232 8,442 218,490 213,466 102% 2029 552,330 32,873 4,756 11,924 244,195 237,801 102% 2030 568,900 32,843 5,484 3,308 279,214 272,933 102% 2031 585,967 32,209 6,289 317,712 313,577 101% 2032 603,546 33,400 6,874 11,559 346,426 344,140 100% 2033 621,653 37,896 4,906 135,486 253,743 245,030 103% 2034 640,302 36,839 5,723 3,724 292,582 283,892 103% 2035 659,511 37,142 6,585 2,089 334,220 326,721 102% 2036 679,297 37,954 7,395 5,941 373,627 367,839 101% 2037 699,675 37,527 8,244 5,065 414,335 412,250 100% 2038 720,666 42,691 7,817 68,714 396,128 391,569 101% 2039 742,286 42,633 8,597 13,674 433,684 429,911 100% PAGE 2-8
SHOA Component Funding Model VS Fully Funded Chart The Component Funding Model s long-term objective is to provide a plan to a fully funded reserve position over the longest period of time practical. This is the most conservative funding model. PAGE 2-9
SHOA Component Funding Model Assessment & Category Summary Description Replacement Year Life Useful Adjustment Remaining Life Cost Current Assigned Reserves Fully Funded Streets/Asphalt Asphalt - Overlay 2013 20 0 3 30,530 25,950 25,950 Asphalt - Repairs 2010 4 0 0 1,832 1,832 1,832 Streets/Asphalt - Total $32,362 $27,782 $27,782 Roofing Roof - Repairs 2012 5 0 2 2,280 1,368 1,368 Roof - Replace 2023 30 0 13 180,120 5,621 102,068 Roofing - Total $182,400 $6,989 $103,436 Painting Painting - Stucco 2013 10 0 3 35,915 25,141 25,141 Painting - Wood Trim & Railings 2013 5 0 3 2,204 882 882 Painting - Total $38,119 $26,022 $26,022 Recreation/Pool Spa - replacement 2018 20 0 8 25,000 15,000 15,000 Recreation/Pool - Total $25,000 $15,000 $15,000 Building Components Siding - Stone Repair 2019 10 0 9 5,802 580 580 Siding - Stucco Repairs 2011 3 0 1 998 665 665 Siding - Trim & Railings replacement 2018 25 0 8 27,550 18,734 18,734 Siding - Trim repairs 2012 4 0 2 2,755 1,377 1,377 Building Components - Total $37,105 $21,357 $21,357 Total Asset Summary $314,986 $97,150 $193,598 Contingency at 3.00% $3,005 $5,988 Summary Total $100,155 $199,585 Fully Funded Level 50% Current Average Liability per Unit (Total Units: 11) -$9,039 PAGE 2-10
SHOA Distribution of Accumulated Reserves Description Remaining Replacement Assigned Life Year Reserves Fully Funded Reserves Asphalt - Repairs 0 2010 1,832 1,832 Siding - Stucco Repairs 1 2011 665 665 Roof - Repairs 2 2012 1,368 1,368 Siding - Trim repairs 2 2012 1,377 1,377 Asphalt - Overlay 3 2013 25,950 25,950 Painting - Stucco 3 2013 25,141 25,141 Painting - Wood Trim & Railings 3 2013 882 882 Siding - Trim & Railings replacement 8 2018 18,734 18,734 Spa - replacement 8 2018 15,000 15,000 Siding - Stone Repair 9 2019 580 580 Roof - Replace 13 2023 *5,621 102,068 Total Asset Summary $97,150 $193,598 Contingency at 3.00% $3,005 $5,988 Summary Total $100,155 $199,585 Fully Funded Level 50% Current Average Liability per Unit (Total Units: 11) -$9,039 '*' Indicates Partially Funded PAGE 2-11
SHOA Annual Expenditure Detail Description Expenditures Replacement Year 2010 Asphalt - Repairs 1,832 Total for 2010 $1,832 Replacement Year 2011 Siding - Stucco Repairs 1,028 Total for 2011 $1,028 Replacement Year 2012 Roof - Repairs 2,419 Siding - Trim repairs 2,923 Total for 2012 $5,342 Replacement Year 2013 Asphalt - Overlay 33,361 Painting - Stucco 39,246 Painting - Wood Trim & Railings 2,408 Total for 2013 $75,015 Replacement Year 2014 Asphalt - Repairs 2,062 Siding - Stucco Repairs 1,123 Total for 2014 $3,185 No Replacement in 2015 Replacement Year 2016 Siding - Trim repairs 3,290 Total for 2016 $3,290 Replacement Year 2017 Roof - Repairs 2,804 Siding - Stucco Repairs 1,227 Total for 2017 $4,031 Replacement Year 2018 Asphalt - Repairs 2,320 PAGE 2-12
SHOA Annual Expenditure Detail Description Expenditures Replacement Year 2018 continued... Painting - Wood Trim & Railings 2,792 Siding - Trim & Railings replacement 34,900 Spa - replacement 31,669 Total for 2018 $71,681 Replacement Year 2019 Siding - Stone Repair 7,571 Total for 2019 $7,571 Replacement Year 2020 Siding - Stucco Repairs 1,341 Siding - Trim repairs 3,702 Total for 2020 $5,043 No Replacement in 2021 Replacement Year 2022 Asphalt - Repairs 2,612 Roof - Repairs 3,251 Total for 2022 $5,862 Replacement Year 2023 Painting - Stucco 52,743 Painting - Wood Trim & Railings 3,237 Roof - Replace 264,512 Siding - Stucco Repairs 1,465 Total for 2023 $321,957 Replacement Year 2024 Siding - Trim repairs 4,167 Total for 2024 $4,167 No Replacement in 2025 Replacement Year 2026 Asphalt - Repairs 2,940 Siding - Stucco Repairs 1,601 Total for 2026 $4,540 PAGE 2-13
SHOA Annual Expenditure Detail Description Expenditures Replacement Year 2027 Roof - Repairs 3,768 Total for 2027 $3,768 Replacement Year 2028 Painting - Wood Trim & Railings 3,752 Siding - Trim repairs 4,690 Total for 2028 $8,442 Replacement Year 2029 Siding - Stone Repair 10,175 Siding - Stucco Repairs 1,749 Total for 2029 $11,924 Replacement Year 2030 Asphalt - Repairs 3,308 Total for 2030 $3,308 No Replacement in 2031 Replacement Year 2032 Roof - Repairs 4,369 Siding - Stucco Repairs 1,912 Siding - Trim repairs 5,279 Total for 2032 $11,559 Replacement Year 2033 Asphalt - Overlay 60,254 Painting - Stucco 70,882 Painting - Wood Trim & Railings 4,350 Total for 2033 $135,486 Replacement Year 2034 Asphalt - Repairs 3,724 Total for 2034 $3,724 Replacement Year 2035 Siding - Stucco Repairs 2,089 Total for 2035 $2,089 PAGE 2-14
SHOA Annual Expenditure Detail Description Expenditures Replacement Year 2036 Siding - Trim repairs 5,941 Total for 2036 $5,941 Replacement Year 2037 Roof - Repairs 5,065 Total for 2037 $5,065 Replacement Year 2038 Asphalt - Repairs 4,191 Painting - Wood Trim & Railings 5,043 Siding - Stucco Repairs 2,283 Spa - replacement 57,198 Total for 2038 $68,714 Replacement Year 2039 Siding - Stone Repair 13,674 Total for 2039 $13,674 PAGE 2-15
SHOA Annual Expenditure Chart PAGE 2-16
SHOA Funding Model Reserve Ending Balance Comparison Chart The chart above compares the projected reserve ending balances of the three funding models (Current Assessment Funding Model, Threshold Funding Model and Component Funding Model) over 30 years. PAGE 2-17
SHOA Funding Model Comparison by Percent Funded The chart above compares the three funding models (Current Assessment Funding Model, Threshold Funding Model and Component Funding Model) by the percentage fully funded over 30 years. This allows your association to view and then choose the funding model that might best fit your community s needs. PAGE 2-18
SHOA Funding Model Assessment Comparison Chart The chart above compares the annual assessment of the three funding models (Current Assessment Funding Model, Threshold Funding Model and Component Funding Model) over 30 years. PAGE 2-19
SHOA Spread Sheet 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Description Asphalt - Overlay 33,361 Asphalt - Repairs 1,832 2,062 2,320 Painting - Stucco 39,246 Painting - Wood Trim & Railings 2,408 2,792 Roof - Repairs 2,419 2,804 Roof - Replace Siding - Stone Repair 7,571 Siding - Stucco Repairs 1,028 1,123 1,227 Siding - Trim & Railings replacement 34,900 Siding - Trim repairs 2,923 3,290 Spa - replacement 31,669 Year Total: 1,832 1,028 5,342 75,015 3,185 3,290 4,031 71,681 7,571 PAGE 2-20
SHOA Spread Sheet 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Description Asphalt - Overlay Asphalt - Repairs 2,612 2,940 Painting - Stucco 52,743 Painting - Wood Trim & Railings 3,237 3,752 Roof - Repairs 3,251 3,768 Roof - Replace 264,512 Siding - Stone Repair 10,175 Siding - Stucco Repairs 1,341 1,465 1,601 1,749 Siding - Trim & Railings replacement Siding - Trim repairs 3,702 4,167 4,690 Spa - replacement Year Total: 5,043 5,862 321,957 4,167 4,540 3,768 8,442 11,924 PAGE 2-21
SHOA Spread Sheet 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 Description Asphalt - Overlay 60,254 Asphalt - Repairs 3,308 3,724 4,191 Painting - Stucco 70,882 Painting - Wood Trim & Railings 4,350 5,043 Roof - Repairs 4,369 5,065 Roof - Replace Siding - Stone Repair 13,674 Siding - Stucco Repairs 1,912 2,089 2,283 Siding - Trim & Railings replacement Siding - Trim repairs 5,279 5,941 Spa - replacement 57,198 Year Total: 3,308 11,559 135,486 3,724 2,089 5,941 5,065 68,714 13,674 PAGE 2-22