Reserve Data Analyst

Kennewick, WA Account 15588 -- Version Final September 19, 2017 Reserve Data Analyst info@reservedataanalyst.com 866-574-5115 www.reservedataanalyst.com Prepared By Quality Check By

Table of Contents Hansen Park HOA Introduc on 4 Summary Page 5 Reserve Analyst Comments 6 Site / Building Map 7 What Components Are Included? 8 The Component List 9 Excluded Components 10 Current Cost by Category Chart 11 How Much To Reserve? 12 About Percent Funded 13 Projected Percent Funded Chart 14 Projected Reserve Account Balance Chart 15 Recommended Funding - Summary 16 Recommended Funding - Projec ons 17 Baseline Funding - Summary 18 Baseline Funding - Projec ons 19 Current Funding - Summary 20 Current Funding - Projec ons 21 15% Increase Funding - Summary 22 15% Increase Funding - Projec ons 23 Special Assessment Funding - Summary 24 Special Assessment Funding - Projec on 25 Projected Expenditures Chart 26 Annual Expenditure Report 27 Fully Funded Balance Calcula on 32 Component Detail Reports 33 Spreadsheet - Component Expenditures 58 Page 2

Table of Contents Hansen Park HOA Calcula ons Appendix 61 Defini ons Appendix 62 Disclosures Appendix 67 Component Index 70 Page 3

Introduc on Thank you for utilizing the services of Reserve Data Analyst for your reserve study. We strive to create a comprehensive report that can be utilized for your budgeting needs and for future replacement schedules but above all else we place an emphasis on a high level of customer service. If there are any questions, concerns, corrections or revisions needed please do not hesitate to call or email us. While this study does have some explanations of the methodology used we have kept it to a minimum for brevity. More detailed explanations of methodology & concepts are explained in our Reserve Study Guidebook which can be found at https://www.reservedataanalyst.com/guidebook There are a couple of tips to consider that will help you both navigate this study and understand the different sections within the study: 1. To most easily navigate this study we recommend printing out the Table of Contents page at the beginning of the study and the Component Index pages at the rear of the study. This way you don t need to print out the whole study, you can have the PDF of this study open on the computer and can refer to the printed out Table of Contents and Component Index pages to scroll to or jump to pages within your PDF reader program on the computer. 2. We have created a video summary of a sample study to explain the different pages & reports within this study. You can view this video in a smaller browser window while navigating your study for an explanation of each page in the study. This can be extremely helpful and answers the majority of questions that we receive from readers of our reserve studies (with links to About Percent Funded and The Fully Funded Balance Explained). Link here: https://www.reservedataanalyst.com/video-rda-reserve-study/ The below section summaries touch on the some of the more sought after sections of this study; these can be found on the following Table of Contents page. Summary Page - The Summary Page is a brief outline of the findings and recommendations found after the due diligence was conducted by the Reserve Analyst. A percent funded and summary of the finding models can be found on this page. The Component List - Perhaps the most important section of the study is the Component List which is the basis for the recommendations found within the study. It is important that this list is comprehensive and accurate so that the funding models are helpful and accurate in their projections. Funding Plans & Percent Funded - Following the Component List are the Funding Models, Percent Funded Calculations and Projections. These are based on the component list developed earlier and each have a different goal in mind. Annual Expenditures Report - Following the Funding Plans is the Annual Expenditure Report which shows the projected replacement schedule of the components annually for the next 30 years. Component Detail Reports - The Component Detail Report section of this study gives recommendations for each component as well as shows the specifics of the component (e.g. quantity, location, special considerations, etc.). Page 4

Summary Page Profile Parameters Summary Name Hansen Park HOA Location Kennewick, WA 98336 # of Units 510 Base Year / Age June, 1 2002 Fiscal Year Ends December, 31 2018 Level of Service Prepared for Fiscal Year 2018 Last On Site Inspection Date September, 19 2017 Allocation Increase Rate Level I Full Reserve Study (With Site-Visit) ref. Funding Model Summary Page Contingency Rate ref. Component Detail Report Page Inflation Rate 3% Interest Rate 1% Tax Rate ref. Funding Model Summary Page Funding Plan - Method Cash Flow achieve 100% funded in 30 years *Current Reserve Allocation $0 per year *Estimated FY Start Balance $35,159 Fully Funded Balance Percent Funded $468,556 (ideal amount in reserve account) --> 8% 0-30% Low 30-70% Fair 70-100% Good (Deficit) or Surplus Per Unit *Supplied by Client (-$850) per unit Recommended Funding Model per year per month avg per unit a month - Achieve 100% funded in 30 years $106,000 $8,833 $17 Baseline Funding Model - Keeps account above $0 in the 30 year timeline of this study $97,479 $8,123 $16 Current Funding Model - Current data supplied by Client $0 $0 $0 Page 5

Reserve Analyst Comments Reserve Analyst Comments Per the Clients interpretation of their governing documents the concrete surfaces (walkways/curbs) not located within the Association Common Area Tracts has been excluded from the measurements for the Concrete Surface - Repair component. Also per the Clients interpretation of their governing documents only the Privacy Walls that border the Association's common area tracts have been included in in the measurements for this components. Other areas that are at the perimeter of the community or between homes is reportedly the Homeowner's responsibility for any maintenance and/or repair. If at a future date the interpretation of whether to include either of the above two components where to change (e.g. inclusion of all perimeter wall or inclusion of all sidewalks/curbs in the community) there would be significant changes to all funding models and recommendations in this reserve study. Additional Funding Models Additional funding models have been included per the Client's request. The Summary and Projections for these funding models can be found by utilizing the Table of Contents for easy navigation. Loans & Special Assessments The below special assessment / loan information has been supplied by the Client and has not been independently verified. The amount and timing of them have been based on the Client's information supplied to the reserve analyst. Special Assessments None approved for fiscal year 2018. Loans None approved for fiscal year 2018. Page 6

Hansen Park HOA Site / Building Map Page 7

What Components Are Included? Included Components Reserve expenses for components are major expenses which must be budgeted for in advance in order to provide the necessary funds in time for their occurrence. Reserve expenses are reasonably predictable both in terms of frequency and cost. They are expenses that when incurred would have a significant impact on the smooth operation of the budgetary process from one year to the next if they were not reserved for in advance. A common concern when beginning this process is what components are to be included and funded for in the Reserve Study. Nationally recognized Reserve Study Standards indicates reserve components need to meet the following criteria: Excluded Common Area Components Some components may have been left out of the study or included in the component list but Unfunded and not considered in the mathematical models. These components will typically fall into one or more of the categories listed below. Below Threshold Costs - Component repair and/or replacement costs that are deemed too small to be considered reserve expenses are typically included in the operational or maintenance budget have not been funded for in this study. Operational Expenses - These occur at least annually and can be effectively budgeted for each year. They are characterized as being reasonably predictable both in terms of frequency and cost. Very Long or Unpredictable Useful Life Expectancy - Components which, when properly maintained, have a very long useful life with no predictable replacement cycle. Unit Improvements - Improvements made to the property that fall within the Governing Documents unit description summary (unit owner s responsibility). Other Non-Association/Organization Owned - Improvements installed on the property but which are owned by other parties such as governmental agencies, utility companies, the US Postal Service, etc. Page 8

The Component List Descrip on Date in Service Replacement Year Useful Pond Pond - Fountain Pump - Replace 2002 2018 15 0 0 1 ea 1,500.00 1,500 Pond - Liner - Replace 2007 2042 35 0 24 94,013 sf 3.85 361,950 Pond - Maintenance Unfunded Pond Circula on Pump 1 HP - Replace 2002 2018 15 0 0 1 ea 2,500.00 2,500 Pond - Total $365,950 Adjustment Remaining Units Cost Unit Cost Current Basketball Equipment - Replace 2002 2027 25 0 9 1 each 2,100.00 2,100 Benches - Replace 2002 2022 20 0 4 6 ea 450.00 2,700 Concrete Surfaces - 3% Repair 2002 2027 5 20 9 2,776 sf 23.00 63,863 Fence - 4' Chain Link - Replace Unfunded Fence - Metal 4' - Paint 2002 2019 17 0 1 2,025 lf 2.80 5,670 Fence - Metal 4' - Replace 2002 2036 34 0 18 2,025 lf 60.25 122,006 Fence - Privacy Wall - 5% Replace 2002 2032 5 25 14 698 lf 65.00 45,393 Irriga on Control Panels - Replace 2002 2042 40 0 24 7 ea 1,250.00 8,750 Irriga on Controllers - Replace 2002 2022 20 0 4 7 ea 750.00 5,250 Irriga on Piping / Landscaping - 20% Repair 2002 2027 5 20 9 101,064 sf 2.75 277,927 Irriga on Shutoff & Backflow Devices - Repl.. 2002 2022 20 0 4 8 ea 775.00 6,200 Landscaping - Tree Care 2002 2022 3 17 4 1 ls 12,000.00 12,000 Lights - Pole - Replace 2002 2027 25 0 9 1 ea 1,750.00 1,750 Pet Waste Sta ons - Replace 2002 2027 25 0 9 5 each 750.00 3,750 Playground Structure - Replace 2002 2027 25 0 9 1 ls 13,250.00 13,250 Playground Surface - Replenish 2016 2019 3 0 1 2,290 sf 0.95 2,175 Retaining Walls - Pavers - Replace Unfunded Sign - Entry Monument - Refurbish 2002 2027 25 0 9 1 ls 7,500.00 7,500 Storm Drains - Maintain Unfunded Trash Receptacles- Replace 2002 2022 20 0 4 3 ea 450.00 1,350 - Total $581,635 Total Asset Summary $947,585 Page 9

Excluded Components Unless noted otherwise the below components have been excluded from funding in this reserve study. Note that the inclusion of any of these items at a later date via a revision or update to this study will impact the funding strategies developed by the Reserve Analyst. Long Life Components The below components are long life components at this time, have no predictable useful life, predictable remaining useful life or associated costs within the timeframe of this reserve study. 1. Retaining Walls - Concrete & Pavers 2. Underground Storm water System at the Pond Not Association Responsibility The below components are the Unit Owner's responsibility per the Board's interpretation of their governing documents. 1. Asphalt Roads - City Maintained 2. Storm Sewer System at Roads - City Maintained 3. Mailbox Clusters - Owned by the United States Postal Service 4. Privacy Walls Not Bordering Common Areas - Homeowner's Responsibility - Per Client's Interpretation of their Governing Documents 5. Concrete Surfaces outside of Common Areas - Homeowner's Responsibility - Per Client's Interpretation of their Governing Documents 6. Street Lighting - City Maintained Page 10

Current Cost by Category Chart The above chart illustrates the current cost breakdown percentage of the Component Categories in this reserve study. Special attention should be given to those component categories which take up a bulk of the % of the current cost as these may require significant planning to adequately budget for their replacement. These large expenses may be well into the future during "Peak Year" cycles. Refer to the Cash Flow Projections and the Annual Expenditure Report for the projected timeline of expected expenditures. Page 11

Hansen Park HOA How Much To Reserve? There is no right or wrong answer to How Much Should We Reserve? as the reserve contributions in all the funding models in this study are based on different funding goals. Each Client has different risk tolerances and challenges in enacting whatever funding plan is most appropriate to them. This being said, any funding model that projects the reserve account balance to dip to zero, in our opinion, would not be appropriate or fiscally responsible as future emergency financing or deferred maintains are typically the outcome of any funding model that projects a deficit in the reserve account. Below are some of the more common funding models utilized: Page 12

About Percent Funded Percent funded is a calculation of how much is in the reserve account versus an ideal amount known as the Fully Funded Balance. The different ranges in levels of funding are explained below and video links have been provided which explain the Percent Funded and Fully Funded Balance calculations in more detail. 0-30% Low 30-70% Fair 70-100% Good 70-100 % Funded - Good At this level, the reserve balance is considered to be at a good level of funding. The risk for reliance on emergency financing and deferred maintenance is minimized. While the goal is to reach and remain at the 100% funded mark the actual funding level will likely fluctuate above and below 100% due to changing component expenses in any given period of time covered in this reserve study. 30 70 % Funded - Fair A fairly funded reserve account is typically one on the right path to becoming fully funded but one that can also run into trouble if large expenses arise such as unexpected component failures or rapidly rising costs, specifically in years when large expenditures come to fruition. It is also important that the Client remains vigilant with their goal to reach a higher percent funded level as there is often pressure to reduce the reserve allocation rate or utilize money elsewhere as the reserve account balance grows to a level which is perceived to be large. Boards often have difficulties in continuing with the longer term goals in years of economic downturn when there is greater difficulty in continuing to allocate to the reserve account with regular annual increases to offset inflationary factors. 0 30 % Funded Low A low funding level often forces an Association/Organization to rely on emergency financing or to defer projects. With insufficient funds the Client may not be able to meet predictable component project expenditures. At this level of funding many Clients choose to defer component projects which results in condition deficiencies and over time will cause significant deferred maintenance issues which in turn hurt property values and the aesthetic appeal of the site/building. Note that a reserve account can often stay within a poor funding range for many years before any apparent negative impact. The reality of the financial position of the reserve account will often become apparent in "peak" expense years when one or several large expense component projects occur (e.g. roofing, asphalt, siding, windows) and it becomes apparent the reserve account is not adequate to meet these expenses. Video Link - About Percent Funded: https://www.reservedataanalyst.com/percent-funded Video Link - Fully Funded Balance Explained: https://www.reservedataanalyst.com/fully-funded-balance Page 13

Projected Percent Funded Chart The chart above compares the funding models by the percentage funded, annually, over the 30 year timeframe of this reserve study at the end of each fiscal year. The Recommended Funding or Full Funding Models increase the Client's reserve account Percent Funded Level to 100% funding within the timeframe of this study. Once this 100% funded level is reached it is a good indicator that the Client is on track to meet its future obligations with minimal risk of reliance on loans/special assessments. The Baseline Funding Model has only a goal of keeping the reserve account cash positive within the timeframe of the reserve study so it will not typically reach a high level of percent funded over long periods of time within the timeframe of the study. This model carries significant risk for reliance on loans, special assessments or deferred maintenance due to components failing earlier than projected or costs increasing more rapidly than projected. The Current Funding Model is based on information provided to RDA regarding the current allocation rate to the reserve account. The provided allocation rate has then been projected out 30 years, while taking into account annual increases. Page 14

Projected Reserve Account Balance Chart The chart above compares the annual year end balance of the reserve account for each funding models over the 30 years covered in this reserve study. Note than even though balances cannot realistically be in the negative territory these have been shown (if applicable) as a visual for the level of deficiency. Page 15

Recommended Funding - Summary Report Parameters Report Date September 19, 2017 Account Number 15588 Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 We have developed a funding plan which will help steer the reserve account into a high funded range over a period of 30 years. This funding model is very realistic and helps to guide the reserve account out of the current poor/fair funding range in a relatively short period of time. This Recommended Funding Model requires the Client to allocate the recommended allocation amount into the reserve account with annual increases over the 30 years covered in this study. In the following pages you will find the recommended allocation rates to the reserve account, annual projected expenditures and the percent funded of the reserve account if following this Recommended Funding Model. This Recommended Funding Plan Takes into Account 4 Basic Principles: 1. There are adequate reserves when needed. 2. The budget should remain stable but increasing to offset inflationary factors. 3. The costs are fairly distributed over time. 4. The funding plan must allow the Client to be fiscally responsible. Recomended Funding Model Summary of Calcula ons Required Month Contribu on $8,833.33 $17.32 per unit monthly Average Net Month Interest Earned $51.80 Total Month Alloca on to Reserves $8,885.13 $17.42 per unit monthly Page 16

Recommended Funding - Projec ons Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded 2018 947,585 106,000 622 4,000 137,781 512,656 27% 2019 976,012 109,180 1,326 8,081 240,205 554,900 43% 2020 1,005,293 112,455 2,114 354,775 607,425 58% 2021 1,035,451 115,829 2,932 473,536 662,791 71% 2022 1,066,515 119,304 3,544 33,400 562,984 690,471 82% 2023 1,098,510 122,883 4,420 690,287 754,650 91% 2024 1,131,466 126,570 5,328 822,185 822,058 100% 2025 1,165,410 130,367 6,147 17,434 941,264 874,874 108% 2026 1,200,372 134,278 7,120 1,082,662 948,615 114% 2027 1,236,383 138,306 4,737 482,949 742,757 602,050 123% 2028 1,273,474 142,455 5,624 19,051 871,785 726,576 120% 2029 1,311,679 146,729 6,680 1,025,193 878,242 117% 2030 1,351,029 151,131 7,774 1,184,097 1,038,354 114% 2031 1,391,560 155,665 8,761 20,817 1,327,705 1,185,840 112% 2032 1,433,307 160,335 5,820 585,649 908,211 771,895 118% 2033 1,476,306 165,145 6,962 6,232 1,074,086 946,942 113% 2034 1,520,595 170,099 8,029 22,748 1,229,466 1,114,978 110% 2035 1,566,213 175,202 9,300 1,413,968 1,316,377 107% 2036 1,613,199 180,458 9,157 207,707 1,395,875 1,314,918 106% 2037 1,661,595 185,872 5,566 703,784 883,529 807,646 109% 2038 1,711,443 191,448 6,932 1,081,909 1,015,398 107% 2039 1,762,786 197,191 8,347 1,287,447 1,234,889 104% 2040 1,815,670 203,107 9,622 27,162 1,473,014 1,438,659 102% 2041 1,870,140 209,200 11,139 1,693,354 1,682,359 101% 2042 1,926,244 215,476 1,670 1,572,128 338,372 320,095 106% 2043 1,984,032 221,940 3,011 29,680 533,643 511,881 104% 2044 2,043,553 228,599 4,616 766,858 746,374 103% 2045 2,104,859 235,457 6,280 1,008,595 994,475 101% 2046 2,168,005 242,520 7,777 32,433 1,226,459 1,223,386 100% 2047 2,233,045 249,796 3,154 912,422 566,988 559,749 101% Page 17

Baseline Funding - Summary Report Parameters Report Date September 19, 2017 Account Number 15588 Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 The Baseline Funding Model is considered a bare minimum approach which has a goal of only keeping the reserve account balance above $0. We do not recommend following this funding model due to the higher risk of the reserve account reaching a $0 balance specifically in years when there are large expenses or due to components failing earlier than projected. Due to the starting point of being at a very low Percent Funded this model is only marginally less than the recommended Funding Model but is projected to reach just above a zero balance in the last 10 years of the study. (See Baseline Funding Projections). Baseline Threshold Funding Model Summary of Calcula ons Required Month Contribu on $8,123.25 $15.93 per unit monthly Average Net Month Interest Earned $49.10 Total Month Alloca on to Reserves $8,172.35 $16.02 per unit monthly Page 18

Baseline Funding - Projec ons Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded 2018 947,585 97,479 589 4,000 129,227 512,656 25% 2019 976,012 100,403 1,232 8,081 222,782 554,900 40% 2020 1,005,293 103,416 1,957 328,155 607,425 54% 2021 1,035,451 106,518 2,709 437,382 662,791 66% 2022 1,066,515 109,714 3,254 33,400 516,950 690,471 75% 2023 1,098,510 113,005 4,060 634,014 754,650 84% 2024 1,131,466 116,395 4,895 755,304 822,058 92% 2025 1,165,410 119,887 5,637 17,434 863,394 874,874 99% 2026 1,200,372 123,484 6,532 993,410 948,615 105% 2027 1,236,383 127,188 4,068 482,949 641,717 602,050 107% 2028 1,273,474 131,004 4,870 19,051 758,540 726,576 104% 2029 1,311,679 134,934 5,840 899,314 878,242 102% 2030 1,351,029 138,982 6,844 1,045,139 1,038,354 101% 2031 1,391,560 143,151 7,737 20,817 1,175,210 1,185,840 99% 2032 1,433,307 147,446 4,700 585,649 741,708 771,895 96% 2033 1,476,306 151,869 5,742 6,232 893,087 946,942 94% 2034 1,520,595 156,425 6,706 22,748 1,033,471 1,114,978 93% 2035 1,566,213 161,118 7,870 1,202,459 1,316,377 91% 2036 1,613,199 165,952 7,616 207,707 1,168,319 1,314,918 89% 2037 1,661,595 170,930 3,912 703,784 639,377 807,646 79% 2038 1,711,443 176,058 5,159 820,594 1,015,398 81% 2039 1,762,786 181,340 6,452 1,008,385 1,234,889 82% 2040 1,815,670 186,780 7,600 27,162 1,175,604 1,438,659 82% 2041 1,870,140 192,383 8,987 1,376,974 1,682,359 82% 2042 1,926,244 198,155 1,572,128 3,001 320,095 1% 2043 1,984,032 204,099 588 29,680 178,008 511,881 35% 2044 2,043,553 210,222 2,049 390,279 746,374 52% 2045 2,104,859 216,529 3,564 610,372 994,475 61% 2046 2,168,005 223,025 4,906 32,433 805,870 1,223,386 66% 2047 2,233,045 229,716 125 912,422 123,289 559,749 22% Page 19

Current Funding - Summary Report Parameters Report Date September 19, 2017 Account Number 15588 Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 The Client has stated there is currently no approved reserve allocation rate in the budget. Continuing with this funding scenario will likely lead to a high risk for reliance on special assessments, loans and/or deferred maintenance. In newer communities there is often an initial period of 10-20 years with very limited costs related to reserve projects. With time and additional deterioration there will be significant expenses - the purpose of the reserve study is to budget for these expense well in advance of their replacement/refurbishment date and to spread the cost fairly amongst all the homeowners over time. Note that while reserve account balance and percent funded could not realistically be in a negative territory it has been reported this way as a visual representation of the amount that the reserve account is projected to be in shortfall. Current Assessment Funding Model Summary of Calcula ons No Required Month Contribu on Average Net Month Interest Earned $18.23 Total Month Alloca on to Reserves $18.23 Page 20

Current Funding - Projec ons Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded 2018 947,585 219 4,000 31,378 512,656 6% 2019 976,012 164 8,081 23,461 554,900 4% 2020 1,005,293 165 23,625 607,425 4% 2021 1,035,451 166 23,791 662,791 4% 2022 1,066,515 33,400-9,609 690,471 2023 1,098,510-9,609 754,650 2024 1,131,466-9,609 822,058 2025 1,165,410 17,434-27,043 874,874 2026 1,200,372-27,043 948,615 2027 1,236,383 482,949-509,992 602,050 2028 1,273,474 19,051-529,042 726,576 2029 1,311,679-529,042 878,242 2030 1,351,029-529,042 1,038,354 2031 1,391,560 20,817-549,860 1,185,840 2032 1,433,307 585,649-1,135,508 771,895 2033 1,476,306 6,232-1,141,740 946,942 2034 1,520,595 22,748-1,164,488 1,114,978 2035 1,566,213-1,164,488 1,316,377 2036 1,613,199 207,707-1,372,195 1,314,918 2037 1,661,595 703,784-2,075,979 807,646 2038 1,711,443-2,075,979 1,015,398 2039 1,762,786-2,075,979 1,234,889 2040 1,815,670 27,162-2,103,141 1,438,659 2041 1,870,140-2,103,141 1,682,359 2042 1,926,244 1,572,128-3,675,269 320,095 2043 1,984,032 29,680-3,704,950 511,881 2044 2,043,553-3,704,950 746,374 2045 2,104,859-3,704,950 994,475 2046 2,168,005 32,433-3,737,382 1,223,386 2047 2,233,045 912,422-4,649,804 559,749 Page 21

15% Increase Funding - Summary Report Parameters Report Date September 19, 2017 Account Number 15588 Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 This funding model has been included per the Client's request. It assumes an annual 15% increase to the reserve account allocation rate for the first 15 years before dropping to 1% increases for the last 15 years of the reserve study so as to not significantly overfund the reserve account in the last half of the reserve study timetable. 15% for Fi een Years Funding Model Summary of Calcula ons Required Month Contribu on $2,500.00 $4.90 per unit monthly Average Net Month Interest Earned $27.73 Total Month Alloca on to Reserves $2,527.73 $4.96 per unit monthly Page 22

15% Increase Funding - Projec ons Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded 2018 947,585 30,000 333 4,000 61,492 512,656 12% 2019 976,012 34,500 506 8,081 88,417 554,900 16% 2020 1,005,293 39,675 772 128,864 607,425 21% 2021 1,035,451 45,626 1,078 175,568 662,791 26% 2022 1,066,515 52,470 1,198 33,400 195,836 690,471 28% 2023 1,098,510 60,341 1,605 257,782 754,650 34% 2024 1,131,466 69,392 2,074 329,247 822,058 40% 2025 1,165,410 79,801 2,493 17,434 394,107 874,874 45% 2026 1,200,372 91,771 3,116 488,994 948,615 52% 2027 1,236,383 105,536 443 482,949 112,025 602,050 19% 2028 1,273,474 121,367 1,114 19,051 215,455 726,576 30% 2029 1,311,679 139,572 2,043 357,070 878,242 41% 2030 1,351,029 160,508 3,117 520,695 1,038,354 50% 2031 1,391,560 184,584 4,212 20,817 688,673 1,185,840 58% 2032 1,433,307 212,271 1,530 585,649 316,826 771,895 41% 2033 1,476,306 244,112 3,109 6,232 557,814 946,942 59% 2034 1,520,595 245,943 4,692 22,748 785,701 1,114,978 70% 2035 1,566,213 247,787 6,459 1,039,948 1,316,377 79% 2036 1,613,199 249,646 6,793 207,707 1,088,679 1,314,918 83% 2037 1,661,595 251,518 3,659 703,784 640,072 807,646 79% 2038 1,711,443 253,404 5,458 898,934 1,015,398 89% 2039 1,762,786 255,305 7,283 1,161,521 1,234,889 94% 2040 1,815,670 257,220 8,943 27,162 1,400,523 1,438,659 97% 2041 1,870,140 259,149 10,820 1,670,492 1,682,359 99% 2042 1,926,244 261,092 1,683 1,572,128 361,139 320,095 113% 2043 1,984,032 263,051 3,327 29,680 597,836 511,881 117% 2044 2,043,553 265,024 5,205 868,065 746,374 116% 2045 2,104,859 267,011 7,111 1,142,187 994,475 115% 2046 2,168,005 269,014 8,815 32,433 1,387,584 1,223,386 113% 2047 2,233,045 271,031 4,367 912,422 750,560 559,749 134% Page 23

Special Assessment Funding - Summary Report Parameters Report Date September 19, 2017 Account Number 15588 Version Final Budget Year Beginning January 1, 2018 Budget Year Ending December 31, 2018 Total Units 510 Infla on 3.00% Annual Assessment Increase 3.00% Interest Rate on Reserve Deposit 1.00% Tax Rate on Interest 30.00% 2018 Beginning Balance $35,159 This funding model has been included at the request of the Client for a model which incorporates a special assessment in 2018 of $1,000 per home ($510,000 total). The regular reserve allocation rate increases at 3% per year in this funding model. Special Assessment Funding Model Summary of Calcula ons Required Month Contribu on $2,500.00 $4.90 per unit monthly Average Net Month Interest Earned $624.65 Total Month Alloca on to Reserves $3,124.65 $6.13 per unit monthly Page 24

Special Assessment Funding - Projec on Beginning Balance: $35,159 Projected Fully Current Annual Annual Annual Ending Funded Percent Year Cost Contribu on Interest Expenditures Reserves Reserves Funded 2018 510,000 Special Assessment 2018 947,585 30,000 7,496 4,000 1,088,655 512,656 212% 2019 976,012 30,900 7,706 8,081 1,119,180 554,900 202% 2020 1,005,293 31,827 7,980 1,158,987 607,425 191% 2021 1,035,451 32,782 8,264 1,200,032 662,791 181% 2022 1,066,515 33,765 8,321 33,400 1,208,719 690,471 175% 2023 1,098,510 34,778 8,620 1,252,117 754,650 166% 2024 1,131,466 35,822 8,929 1,296,868 822,058 158% 2025 1,165,410 36,896 9,125 17,434 1,325,455 874,874 152% 2026 1,200,372 38,003 9,452 1,372,911 948,615 145% 2027 1,236,383 39,143 6,398 482,949 935,503 602,050 155% 2028 1,273,474 40,317 6,589 19,051 963,359 726,576 133% 2029 1,311,679 41,527 6,923 1,011,809 878,242 115% 2030 1,351,029 42,773 7,268 1,061,850 1,038,354 102% 2031 1,391,560 44,056 7,478 20,817 1,092,567 1,185,840 92% 2032 1,433,307 45,378 3,732 585,649 556,028 771,895 72% 2033 1,476,306 46,739 4,039 6,232 600,574 946,942 63% 2034 1,520,595 48,141 4,241 22,748 630,208 1,114,978 57% 2035 1,566,213 49,585 4,614 684,408 1,316,377 52% 2036 1,613,199 51,073 3,542 207,707 531,315 1,314,918 40% 2037 1,661,595 52,605 703,784-119,864 807,646 2038 1,711,443 54,183-65,681 1,015,398 2039 1,762,786 55,809-9,872 1,234,889 2040 1,815,670 57,483 27,162 20,449 1,438,659 1% 2041 1,870,140 59,208 369 80,026 1,682,359 5% 2042 1,926,244 60,984 1,572,128-1,431,119 320,095 2043 1,984,032 62,813 29,680-1,397,986 511,881 2044 2,043,553 64,698-1,333,288 746,374 2045 2,104,859 66,639-1,266,649 994,475 2046 2,168,005 68,638 32,433-1,230,444 1,223,386 2047 2,233,045 70,697 912,422-2,072,169 559,749 Page 25

Projected Expenditures Chart The above chart provides a visual of the reserve account projected expenditures over the 30 years covered in this study. We suggest making a note of large expenditure years (peak years) when there will be significant projected expenditures related to one or more costly component that will require repair/replacement. These large but infrequent component expenses during peak years are typically the most difficult to budget for as they are often overlooked or ignored due to the perception that the expenses are far in the future and there will be time to budget for them at a later date. Page 26

Annual Expenditure Report Descrip on Expenditures Replacement Year 2018 Pond Pond - Fountain Pump - Replace 1,500 Pond Circula on Pump 1 HP - Replace 2,500 Total for 2018 $4,000 Replacement Year 2019 Fence - Metal 4' - Paint 5,840 Playground Surface - Replenish 2,241 Total for 2019 $8,081 No Replacement in 2020 No Replacement in 2021 Replacement Year 2022 Benches - Replace 3,039 Irriga on Controllers - Replace 5,909 Irriga on Shutoff & Backflow Devices - Replace 6,978 Landscaping - Tree Care 13,506 Playground Surface - Replenish 2,449 Trash Receptacles- Replace 1,519 Total for 2022 $33,400 No Replacement in 2023 No Replacement in 2024 Replacement Year 2025 Landscaping - Tree Care 14,758 Playground Surface - Replenish 2,676 Total for 2025 $17,434 Page 27

Annual Expenditure Report Descrip on Expenditures No Replacement in 2026 Replacement Year 2027 Basketball Equipment - Replace 2,740 Concrete Surfaces - 3% Repair 83,327 Irriga on Piping / Landscaping - 20% Repair 362,632 Lights - Pole - Replace 2,283 Pet Waste Sta ons - Replace 4,893 Playground Structure - Replace 17,288 Sign - Entry Monument - Refurbish 9,786 Total for 2027 $482,949 Replacement Year 2028 Landscaping - Tree Care 16,127 Playground Surface - Replenish 2,924 Total for 2028 $19,051 No Replacement in 2029 No Replacement in 2030 Replacement Year 2031 Landscaping - Tree Care 17,622 Playground Surface - Replenish 3,195 Total for 2031 $20,817 Replacement Year 2032 Concrete Surfaces - 3% Repair 96,598 Fence - Privacy Wall - 5% Replace 68,661 Page 28

Annual Expenditure Report Descrip on Expenditures Replacement Year 2032 con nued... Irriga on Piping / Landscaping - 20% Repair 420,390 Total for 2032 $585,649 Replacement Year 2033 Pond Pond - Fountain Pump - Replace 2,337 Pond Circula on Pump 1 HP - Replace 3,895 Total for 2033 $6,232 Replacement Year 2034 Landscaping - Tree Care 19,256 Playground Surface - Replenish 3,491 Total for 2034 $22,748 No Replacement in 2035 Replacement Year 2036 Fence - Metal 4' - Replace 207,707 Total for 2036 $207,707 Replacement Year 2037 Concrete Surfaces - 3% Repair 111,984 Fence - Privacy Wall - 5% Replace 79,596 Irriga on Piping / Landscaping - 20% Repair 487,347 Landscaping - Tree Care 21,042 Playground Surface - Replenish 3,815 Total for 2037 $703,784 Page 29

Annual Expenditure Report Descrip on Expenditures No Replacement in 2038 No Replacement in 2039 Replacement Year 2040 Landscaping - Tree Care 22,993 Playground Surface - Replenish 4,168 Total for 2040 $27,162 No Replacement in 2041 Replacement Year 2042 Pond Pond - Liner - Replace 735,770 Benches - Replace 5,489 Concrete Surfaces - 3% Repair 129,820 Fence - Privacy Wall - 5% Replace 92,274 Irriga on Control Panels - Replace 17,787 Irriga on Controllers - Replace 10,672 Irriga on Piping / Landscaping - 20% Repair 564,969 Irriga on Shutoff & Backflow Devices - Replace 12,603 Trash Receptacles- Replace 2,744 Total for 2042 $1,572,128 Replacement Year 2043 Landscaping - Tree Care 25,125 Playground Surface - Replenish 4,555 Total for 2043 $29,680 No Replacement in 2044 Page 30

Annual Expenditure Report Descrip on Expenditures No Replacement in 2045 Replacement Year 2046 Landscaping - Tree Care 27,455 Playground Surface - Replenish 4,977 Total for 2046 $32,433 Replacement Year 2047 Concrete Surfaces - 3% Repair 150,497 Fence - Privacy Wall - 5% Replace 106,971 Irriga on Piping / Landscaping - 20% Repair 654,953 Total for 2047 $912,422 Page 31

Fully Funded Balance Calcula on Descrip on Remaining Life Replacement Year Fully Funded Reserves Pond - Fountain Pump - Replace 0 2018 1,500 Pond Circula on Pump 1 HP - Replace 0 2018 2,500 Playground Surface - Replenish 1 2019 1,450 Fence - Metal 4' - Paint 1 2019 5,336 Trash Receptacles- Replace 4 2022 1,080 Benches - Replace 4 2022 2,160 Irriga on Controllers - Replace 4 2022 4,200 Irriga on Shutoff & Backflow Devices - Repla.. 4 2022 4,960 Landscaping - Tree Care 4 2022 9,600 Lights - Pole - Replace 9 2027 1,120 Basketball Equipment - Replace 9 2027 1,344 Pet Waste Sta ons - Replace 9 2027 2,400 Sign - Entry Monument - Refurbish 9 2027 4,800 Playground Structure - Replace 9 2027 8,480 Concrete Surfaces - 3% Repair 9 2027 40,872 Irriga on Piping / Landscaping - 20% Repair 9 2027 177,873 Fence - Privacy Wall - 5% Replace 14 2032 24,209 Fence - Metal 4' - Replace 18 2036 57,415 Irriga on Control Panels - Replace 24 2042 3,500 Pond - Liner - Replace 24 2042 113,756 Pond - Maintenance Unfunded Retaining Walls - Pavers - Replace Unfunded Fence - 4' Chain Link - Replace Unfunded Storm Drains - Maintain Unfunded Page 32

Component Detail Reports Pond - Fountain Pump - Replace - 2018 Pond Category Pond Placed in Service June 2002 Useful Life 15 Replacement Year 2018 Remaining Life 0 1 ea @ $1,500.00 Asset Cost $1,500.00 Percent Replacement 100% Future Cost $1,500.00 Pond fountain pump reportedly in working order. We recommend budgeting for replacement at the timeframe indicated. Page 33

Component Detail Reports Pond - Liner - Replace - 2042 Pond Category Pond Placed in Service August 2007 Useful Life 35 Replacement Year 2042 Remaining Life 24 94,013 sf @ $3.85 Asset Cost $361,950.05 Percent Replacement 100% Future Cost $735,769.93 Pond liner is assumed to be intact and not leaking. We recommend a pond assessment be conducted, by a qualified vendor, to determine the most appropriate and cost efficient method to replace liners which complying with all required government regulations. The cost estimate in this study is based on removal of the old liner and replacement with a new one of similar quality and mil. We suggest obtaining bids and replacing these liners per the pond assessment recommendations and incorporating actual costs and useful life estimates, which will depend on the mil (thickness) of the new membrane liner, into future reserve studies. Page 34

Component Detail Reports Pond - Maintenance Pond Category Pond Placed in Service June 2002 Useful Life 1 Replacement Year 2018 Remaining Life 0 1 ls @ $3,600.00 Asset Cost $3,600.00 Percent Replacement 100% Future Cost $3,600.00 No reported problems with the Pond system at this time. We recommend having a qualified Vendor inspect and complete maintenance annually. We strongly suggest setting up an contract with a Vendor and completing the maintenance and inspection of this system annually, paid for from the operating budget. Note that it has been our experience that communities which do no maintain pond systems on a regular cycle typically have large expenses related to these facilities which may need refurbishment at some point when they stop functioning as they were designed. There is no anticipation of large scale replacement or repair needs on site at this time so no funding is recommended. Future reserve studies can be updated to incorporate funding scenarios if there is invasive testing conducted that determines a replacement or refurbishment project is likely to be needed. Since this is assumed to be an annual expense we assume it is being paid for from the Operating Account so this component has been Unfunded in the reserve study. Page 35

Component Detail Reports Pond Circula on Pump 1 HP - Replace - 2018 Pond Category Pond Placed in Service June 2002 Useful Life 15 Replacement Year 2018 Remaining Life 0 1 ea @ $2,500.00 Asset Cost $2,500.00 Percent Replacement 100% Future Cost $2,500.00 Circulation pump reportedly in working condition. We recommend budgeting for replacement at the timeframe indicated. Page 36

Component Detail Reports Basketball Equipment - Replace - 2027 Category Recrea on Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 1 each @ $2,100.00 Asset Cost $2,100.00 Percent Replacement 100% Future Cost $2,740.02 No instability at this time but nearing the end of its useful life. Inspect regularly, tighten connections, clean and treat for corrosion, repair promptly as needed from operating budget. Reserve funding recommend for replacement at time frame indicated. Page 37

Component Detail Reports Benches - Replace - 2022 Category Components Placed in Service June 2002 Useful Life 20 Replacement Year 2022 Remaining Life 4 6 ea @ $450.00 Asset Cost $2,700.00 Percent Replacement 100% Future Cost $3,038.87 Composite and metal benches appear to be deteriorating at a rate typical of their age. We recommend planning for replacement at the time frame indicated due to constant exposure. Clean and inspect annually - paint/stain from paid for from the the Operating budget as necessary. Page 38

Component Detail Reports Concrete Surfaces - 3% Repair - 2027 Category Concrete Surfaces Placed in Service June 2002 Useful Life 5 Adjustment 20 Replacement Year 2027 Remaining Life 9 92,555 sf @ $23.00 Asset Cost $63,862.95 Percent Replacement 3% Future Cost $83,326.66 3% Repair contingency for the concrete surfaces on site. Amount and cycle to be reviewed annually. No widespread damage or deterioration noted at time of site visit however there are a few small areas which need repair. We recommend repairing trip hazards immediately to limit liability. Square footage measurement includes only the concrete surfaces located on the common areas. Per the Associations interpretation of their governing documents, concrete walkways/surfaces that are not located within the common area tracts are the Homeowner's responsibility. Life adjustment given so this component begins to cycle after the concrete is 25 years of age. Page 39

Component Detail Reports Fence - 4' Chain Link - Replace Category Fencing Placed in Service June 2015 Useful Life 45 Replacement Year 2060 Remaining Life 42 685 lf @ $21.00 Asset Cost $14,385.00 Percent Replacement 100% Future Cost $49,782.11 4' chain link fencing at the retaining walls appears to be deteriorating at a rate typical of its age. Sturdy component that can last for extended period of time if not damaged or abused. Clean, repair as needed from operating funds. Best to plan for eventual replacement at roughly the time frame indicated. This component is reportedly the responsibility of the city and has been Unfunded in this reserve study. It has been removed from all mathematical models. Page 40

Component Detail Reports Fence - Metal 4' - Paint - 2019 Category Fencing Placed in Service June 2002 Useful Life 17 Replacement Year 2019 Remaining Life 1 2,025 lf @ $2.80 Asset Cost $5,670.00 Percent Replacement 100% Future Cost $5,840.10 4' metal fence paint appears to be deteriorating at a rate typical of its age; areas of fading and deterioration noted. Cost estimate includes cleaning, wire brush, primer and one coat paint. Page 41

Component Detail Reports Fence - Metal 4' - Replace - 2036 Category Fencing Placed in Service June 2002 Useful Life 34 Replacement Year 2036 Remaining Life 18 2,025 lf @ $60.25 Asset Cost $122,006.25 Percent Replacement 100% Future Cost $207,707.47 4' metal fence appears to be deteriorating at a rate typical of its age. As routine maintenance, inspect regularly for any damage, repair as needed. Plan to replace at roughly the time frame indicated. Cost estimate includes the three gates. Fence replacement supersedes the fence paint component. Page 42

Component Detail Reports Fence - Privacy Wall - 5% Replace - 2032 Category Fencing Placed in Service June 2002 Useful Life 5 Adjustment 25 Replacement Year 2032 Remaining Life 14 13,967 lf @ $65.00 Asset Cost $45,392.75 Percent Replacement 5% Future Cost $68,660.61 The privacy wall appears to be deteriorating at a rate typical of its age. Limited areas of mortar at blovks and columns for support will require repointing as necessary and can be paid for from the Operating account as an ongoing maintenance expense. This component is for a 5% repair of these walls which over time typically become unstable in areas due to settling, mortar deterioration, root intrusion issues and damage caused by a variety of factors. We recommend budgeting for 5% repairs to these walls beginning after 25 years of age and cycling every 5 years thereafter. If at a future date it appears these walls are deteriorating to a degree that larger scale replacement is warranted then the reserve study can be updated accordingly. No desire to seal these concrete/block surfaces so this has not been included in this reserve study. Linear foot measurement includes only the privacy walls that border Association common areas. Per the Associations interpretation of their governing documents, privacy walls that do not border common areas are the Homeowner's responsibility. Life adjustment given so this component begins to cycle after 35 years of age. Page 43

Component Detail Reports Irriga on Control Panels - Replace - 2042 Category Landscaping Placed in Service June 2002 Useful Life 40 Replacement Year 2042 Remaining Life 24 7 ea @ $1,250.00 Asset Cost $8,750.00 Percent Replacement 100% Future Cost $17,786.95 Reported to be functioning properly with no significant repair/replacement history. We recommend budgeting for replacement at the timeframe indicated. Page 44

Component Detail Reports Irriga on Controllers - Replace - 2022 Category Landscaping Placed in Service June 2002 Useful Life 20 Replacement Year 2022 Remaining Life 4 7 ea @ $750.00 Asset Cost $5,250.00 Percent Replacement 100% Future Cost $5,908.92 Reported to be functioning properly with no significant repair/replacement history. We recommend budgeting for replacement at the timeframe indicated. Page 45

Component Detail Reports Irriga on Piping / Landscaping - 20% Repair - 2027 Category Landscaping Placed in Service June 2002 Useful Life 5 Adjustment 20 Replacement Year 2027 Remaining Life 9 505,322 sf @ $2.75 Asset Cost $277,927.10 Percent Replacement 20% Future Cost $362,631.83 No reported problems at this time. As routine maintenance, inspect and test system regularly, perform any minor repairs as necessary from maintenance budget. Although the failure rate of the elements within this component are typically difficult to predict, prudent planning suggests to set aside funding, for larger scale partial refurbishing of irrigation systems (I.E. piping, valves, etc.), on a cyclical basis. This component includes costs estimate to refurbish the landscaping as well which will be torn up during the process of replacing the underground irrigation piping. Life adjustment given so component begins to cycle after 25 years of age, when piping will typically have deteriorated to a degree that larger portions of the system will begin to not function as designed as well as root intrusion issues as trees age and grow in the community. Note that this component cost is not for regular annual repairs to the system (e.g. sprinkler head repair) which are assumed to be covered under annual maintenance contracts and paid from the Operating Account. Page 46

Component Detail Reports Irriga on Shutoff & Backflow Devices - Replace - 2022 Category Landscaping Placed in Service June 2002 Useful Life 20 Replacement Year 2022 Remaining Life 4 8 ea @ $775.00 Asset Cost $6,200.00 Percent Replacement 100% Future Cost $6,978.15 Reported to be functioning properly with no significant repair/replacement history. We recommend budgeting for replacement at the timeframe indicated. Page 47

Component Detail Reports Landscaping - Tree Care - 2022 Category Landscaping Placed in Service June 2002 Useful Life 3 Adjustment 17 Replacement Year 2022 Remaining Life 4 1 ls @ $12,000.00 Asset Cost $12,000.00 Percent Replacement 100% Future Cost $13,506.11 This component may be utilized for medium to large tree care projects which do not occur on a annual basis. If the Client has not already done so, we recommend consulting with a qualified arborist for a long term plan for the care and management of the trees on site; balancing aesthetics with protection of asset as well as following a plan which is most cost effective for long term budgeting of the reserve account. This component is for tree care of the larger trees in the community. These larger trees require regular trimming/thinning/root control and/or removal to prevent damage to nearby walkways, roads, structures and underground piping. The provided cost estimate is based on our estimation for the total expected cost for each tree on site and based on similar sized sites (and tree count) we have worked with in the past. It is assumed annual trimming and thinning of the trees are paid for from the Operating Account. We suggest updating future reserve studies with actual cost figures and timeframes for projects. Tree Count: Small: 153 Medium/Large: 490 As the trees in the community age and grow there will be a much greater need to budget for tree care expenses. Page 48

Component Detail Reports Landscaping - Tree Care con nued... It is strongly suggested the Client find a qualified Arborist to create a long term plan for tree care projects before there is significant damage to concrete walkways, privacy wall and underground sprinkler systems. It has been our experience that it's a much cheaper option for communities to be proactive towards tree care expenses rather than play a wait and see approach which typically results in larger expenses, reduced marketability and having to special assess and/or defer projects that are due. Life adjustment given so this component begins to cycle after the trees reach 20 years old. Page 49

Component Detail Reports Lights - Pole - Replace - 2027 Category Ligh ng Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 1 ea @ $1,750.00 Asset Cost $1,750.00 Percent Replacement 100% Future Cost $2,283.35 Pole lights appear to be deteriorating at a rate typical of their age. Observed during daylight hours and assumed to be in functional operating condition. As routine maintenance, inspect, repair/change bulbs as needed. Best to plan for large scale replacement at roughly the time frame below, for cost efficiency and consistent quality/appearance. Cost estimated based on a licensed professional removing and installing new fixtures. Page 50

Component Detail Reports Pet Waste Sta ons - Replace - 2027 Category Components Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 5 each @ $750.00 Asset Cost $3,750.00 Percent Replacement 100% Future Cost $4,892.90 Pet waste stations appear to be deteriorating at a rate typical of their age. Clean annually and paint as necessary from the operating budget as this is a minimal maintenance expense. Plan for replacement at the time from indicated. Page 51

Component Detail Reports Playground Structure - Replace - 2027 Category Recrea on Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 1 ls @ $13,250.00 Asset Cost $13,250.00 Percent Replacement 100% Future Cost $17,288.24 Play structure appears to be deteriorating at a rate typical of its age. We recommend budgeting for replacement at the timeframe indicated to limit liability issues that arise from old structures that require ongoing repairs and have safety issues and before actual failure of the structure. There is a very wide range in cost figures for this type of component due to significant quality variations. The estimate in this reserve study is based on replacement with a similar quality structure. 2 - rockers @ $1,500.00 = $3,000.00 1 - tube @ 1,750.00 = 1,750.00 1 - small two station play structure @ 8,500.00 = 8,500.00 Total = $13,250.00 Page 52

Component Detail Reports Playground Surface - Replenish - 2019 Category Recrea on Placed in Service June 2016 Useful Life 3 Replacement Year 2019 Remaining Life 1 2,290 sf @ $0.95 Asset Cost $2,175.50 Percent Replacement 100% Future Cost $2,240.76 We recommend budgeting for replenishment at the time scale indicated to limit liability and safety issues. Page 53

Component Detail Reports Retaining Walls - Pavers - Replace Category Landscaping Placed in Service June 2002 Useful Life 50 Replacement Year 2052 Remaining Life 34 21 lf @ $45.00 Asset Cost $945.00 Percent Replacement 100% Future Cost $2,581.65 Paver retaining walls on site appear to be in generally fair and stable condition; no significant instability noted. We assume that retaining walls were designed and installed properly with adequate base and surrounding drainage. Monitor closely and if areas of instability emerge, consult with civil or geotechnical engineer for repair scope. No predictable basis for reserve funding at this time so this component has been Unfunded (removed from mathematical models) in this reserve study but included for inventory purposes only. Page 54

Component Detail Reports Sign - Entry Monument - Refurbish - 2027 Category Signs Placed in Service June 2002 Useful Life 25 Replacement Year 2027 Remaining Life 9 1 ls @ $7,500.00 Asset Cost $7,500.00 Percent Replacement 100% Future Cost $9,785.80 Entry monument appears to be deteriorating at a rate typical of its age and is typically a long life component. As routine maintenance, inspect regularly, clean/touch up for appearance and complete minor repairs, paid from operating budget. Reserve funding for refurbishment of this monument recommended to maintain a consistent, quality appearance. Page 55

Component Detail Reports Storm Drains - Maintain Category Stormwater Placed in Service June 2002 Useful Life 60 Replacement Year 2062 Remaining Life 44 1 ls Asset Cost Percent Replacement 100% Future Cost No reported problems with this system at this time. Inspect regularly, keep drains and grates free of debris and free flowing to ensure water evacuating as designed. Pump out sediments if needed utilizing mobile evacuator service; fund from operating budget annually. We recommend setting up an contract with a vendor and completing the maintenance and inspection of this system annually, paid for from the operating budget. Note that it has been our experience that communities which do no maintain storm water systems on a regular cycle typically have large expenses related to these facilities which may need refurbishment at some point when they stop functioning as they were designed. There is no anticipation of large scale replacement or repair needs on site at this time so no funding is recommended. Future reserve studies can be updated to incorporate funding scenarios if there is invasive testing conducted that determines a replacement or refurbishment project is likely to be needed. Page 56

Component Detail Reports Trash Receptacles- Replace - 2022 Category Miscellaneous Placed in Service June 2002 Useful Life 20 Replacement Year 2022 Remaining Life 4 3 ea @ $450.00 Asset Cost $1,350.00 Percent Replacement 100% Future Cost $1,519.44 Trash receptacles appear to be deteriorating at a a rate typical of their age. Inspect and clean annually - paint/stain from the Operating budget as becomes necessary. Page 57