Florida Reserve Study and Appraisal, Inc. 12407 N. Florida Avenue Tampa, FL 33612 Phone: 813.932.1588 Fax: 813.388.4189 www.reservestudyfl.com Funding Reserve Analysis for Riverwood CDD Water,, and Irrigation February 24, 2017 Page 1 of 31 Pages
Funding Reserve Analysis for Riverwood CDD Water,, and Irrigation Table of Contents Pages Subject 1 Report Cover Sheet 2 Table of Contents 3 to 14 Reserve Study Summary 15 Reserve Item Summary 16 to 19 Reserve Item Listing 20 Present Cost Report 21 to 22 Cash Flow 23 to 24 Assessment Summary 25 to 26 Expense Report 27 to 31 Expense Summary Page 2 of 31 Pages
Florida Reserve Study and Appraisal, Inc. 12407 N. Florida Avenue Tampa, FL 33612 Phone: 813.932.1588 Fax: 813.388.4189 www.reservestudyfl.com February 24, 2017 Riverwood CDD 4250 Riverwood Drive Port Charlotte, Florida 33953 Board of Directors, We are pleased to present to Riverwood CDD the requested Reserve Funding study. We believe that you will find the attached study to be thorough and complete. After you have had an opportunity to review the report you may have questions. Please do not hesitate to write or call, we would be pleased to answer any questions you may have. Project Description Riverwood CDD has a separate fund for their water, sewer, and reclaimed water (irrigation) accounts. Riverwood has a community-wide reclaimed water system, and a potable water system. The sewer plant and system serves Riverwood residents plus approximately 1000 residents of nearby communities. This reserve study focuses on the water, sewer, and reclaimed water systems. Date of Physical Inspection The subject property was physically inspected on November 7 and November 21, 2016 by Paul Gallizzi and Steven Swartz. Study Start and Study End This Reserve Study encompasses the 2017-18 fiscal year plus 30 years. The Study Start Date is October 1, 2017 and the study ends on September 30, 2048. Governing Documents A review was made of aerials and subdivision plats for the subject property. Depth of Study Full Service Reserve Study with Field Inspection. A field inspection was made to verify the existing condition of the various reserve study components, their physical condition, and to verify component quantities. In place testing, laboratory testing, and non-destructive testing of the reserve study components were not performed. Field measurements of component quantities were made to either verify improvement plan take offs or determine directly the quantities of various components. Page 3 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued Photographs were taken of the site improvements. Summary of Financial Assumptions The below table contains a partial summary of information provided by Riverwood CDD for the Riverwood CDD Water,, and Irrigation funding study. For the purpose of this report, an annual operating budget was set to $0, as this report focuses only on reserve items. Fiscal Calendar Year Begins October 1 Reserve Study by Fiscal Calendar Year Starting October 1, 2017 Funding Study Length 30 Years Number of Assessment Paying Owners 1323 Initial Reserves¹ $ 1,973,605 Annual Inflation Rate 2.50% Tax Rate on Reserve Interest 0.00% Minimum Reserve Account Balance $ 0 Assessment Change Period 1 Year ¹ See Appendix A Recommended Payment Schedule The below table contains the recommended schedule of payments for the next six years. The projected life expectancy of the major components and the funding needs of the reserves of the District are based upon the District performing appropriate routine and preventative maintenance for each major component. Failure to perform such maintenance can negatively impact the remaining useful life of the major components and can dramatically increase the funding needs of the reserves of the District. Proposed Modified Assessment Fiscal Calendar Year Owner Total Annual Assessment District Annual Reserve Assessment Proposed Reserve Balance 2017 $ 239 $ 316,700 $ 2,042,133 2018 $ 245 $ 324,618 $ 2,112,488 2019 $ 252 $ 332,733 $ 2,184,716 2020 $ 258 $ 341,051 $ 2,247,811 2021 $ 264 $ 349,578 $ 2,165,644 2022 $ 271 $ 358,317 $ 2,223,089 * Annual Reserve Payments have been manually modified. Payments have been modified to smooth payments over time. Fiscal Year beginning October 1, 2017 Page 4 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued Reserve Study Assumptions Cost estimates and financial information are accurate and current. No unforeseen circumstances will cause a significant reduction of reserves. Sufficient comprehensive property insurance exists to protect from insurable risks. The District plans to continue to maintain the existing common areas and amenities. Reserve payments occur at the end of every calendar month. Expenses occur throughout the year, as services are provided. Impact of Component Life The projected life expectancy of the major components and the reserve funding needs of the District are closely tied. Performing the appropriate routine maintenance for each major component generally increases the component useful life, effectively moving the component expense into the future which reduces the reserve funding payments of the District. Failure to perform such maintenance can shorten the remaining useful life of the major components, bringing the replacement expense closer to the present which increases the reserve funding payments of the District. Also, some reserves items may have the phrase allowance after it. These reserve items are something that would not be fully replaced at one time, but a small portion may have to be replaced periodically. Inflation Estimate Inflation has been estimated at 2.50 percent over the course of the study. Initial Reserves Through October 2016, there was $1,973,605 set aside for reserves. The projected reserve balance on October 1, 2017 will be $1,973,605. These numbers were obtained from the District on the official October 2016 balance sheet and the 2016-2017 budget. October 1, 2017 starts the next fiscal year. September 30, 2017 marks the end of the fiscal year. Financial Condition of District The pooled method with inflation reserve projections estimate $239.48 per owner per year in 2017 and $316,700 in total funding. At the current time, the District is considered to be very well funded. The higher the percent funded, the more likely a District is to avoid a special assessment. Special Assessments No reserve items will require special assessments if the funding schedule is followed. However, funding less than the suggested amounts will likely result in special assessments or for the replacement of an item to be delayed. Reserve Funding Goal The reserve fund is set to be as close to Fully Funded as possible on an annual basis. Page 5 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued Study Method Funding studies may be done in several ways, but we believe that the value of a funding study lies in the details. "Bulk" studies are quick, usually inexpensive, and almost always border on worthless. We believe that meaningful answers to funding studies lie in the details. This approach is pragmatic, and allows human judgment and experience to enter into the equation. Unless noted otherwise, the present cost of every reserve item in this report has been estimated using the "National Construction Estimator", a nationally recognized standard, and modified by an area cost adjustment factor. Where possible, known costs have been used. In addition, every reserve item has been given an estimated remaining useful life, an estimated useful life when new, and has been cast into the future to determine the inflated cost. Equal annual payments are calculated for each reserve item based upon a payment starting year and a payment ending year using the end of period payment method. Interest earned on accumulated reserve funds and taxes on the reserve interest are also calculated. Initial reserve funds are consumed as expenses occur until fully depleted, reducing annual reserve payments to a minimum. As you review this report, we are certain that you will appreciate the level of detail provided, allowing you to review each reserve item in detail. Summary of Findings We have estimated future projected expenses for Riverwood CDD Water,, and Irrigation based upon preservation of existing improvements. The attached funding study is limited in scope to those expense items listed in the attached "Riverwood CDD Water,, and Irrigation Reserve Study Expense Items". Expense items which have an expected life of more than 30 Years are not included in this reserve study unless payment for these long lived items overlaps the 30 Years reserve study envelope. Of primary concern is the preservation of a positive funding balance with funds sufficient to meet projected expenses throughout the study life. Based upon the attached funding study, it is our professional opinion that owner monthly fees as shown in the attached "Riverwood CDD Water,, and Irrigation Assessment Summary" will realize this goal. Some reserve items in the "Revenue Summary Table" may not contain payments. In this analysis the initial reserves were used to make annual payments for expense items in their order of occurrence until the initial reserve was consumed. As a result reserve items without payments may be expected, particularly in the first few years of the funding study. Reserve items that have been paid with initial reserve funds are identified with a [FP] in the Expense Items Sheets. An item marked [PR] is partially paid with initial reserve funds. Riverwood CDD represents and warrants that the information provided to us, including but not limited to that information contained in the attached Reserve Study Information Summary, that the maintenance records are complete and accurate, and that we may rely upon such information and documents without further verification or corroboration. Where the age of a particular Reserve Item Page 6 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued (as listed in the Reserve Study) is unknown, Riverwood CDD shall provide to us Riverwood CDD's best-estimated age of that item. If Riverwood CDD is unable to provide and estimate of a Reserve Item's age, we shall make our own estimate of age of the Reserve Item. The Reserve Study is created for the District's use, and is a reflection of information provided to us. This information is not for the purpose of performing an audit, historical records, quality or forensic analyses. Any on site inspection is not considered to be a project audit or quality inspection. The actual or projected total presented in the reserve study is based upon information provided and was not audited. Percent Funded Many reserve studies use the concept of "Percent Funded" to measure the reserve account balance against a theoretically perfect value. Percent Funded is often used as a measure of the "Financial Health" of a District. The assumption is, the higher the percentage, the greater the "Financial Health". We believe the basic premise of ''Fully Funded'' is sound, but we also believe that the validity of the Fully Funded value must be used with caution. To answer the question, some understanding of Percent Funded is required. Fully Funded is the sum of the depreciation of all the components by year. To get the Percent Funded, divide the year end reserve balance by the Fully Funded value and multiply by 100 to get a percentage. The concept of Fully Funded is useful when the reserve study is comprehensive, but misleading when the reserve study is superficial or constrained. As a result, we recommend that the statement "Percent Funded" be used with caution. Keeping Your Reserve Study Current We believe that funding studies are an essential part of property management. People and property are constantly changing and evolving. As a result, the useful life of a funding study is at best a few years, and certainly not more than five years. This reserve study should be updated: At least once every few years At changes in the number of assessment paying owners Before starting new improvements Before making changes to the property After a flood or fire After the change of ownership or management After Annexation or Incorporation Items Beyond the Scope of this Report Building or land appraisals for any purpose. State or local zoning ordinance violations. Building code violations. Soils conditions, soils contamination or geological stability of site. Engineering analysis or structural stability of site. Page 7 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued Air quality, asbestos, electromagnetic radiation, formaldehyde, lead, mercury, radon, water quality or other environmental hazards. Invasions by pests, termites and any or all other destroying organisms, insects, birds, bats or animals to buildings or site. This study is not a pest inspection. Adequacy or efficiency of any system or component on site. Specifically excluded reserve items. Septic systems and septic tanks. Buried or concealed portions of swimming pools, pool liners, Jacuzzis and spas or similar items. Items concealed by signs, carpets or other things are also excluded from this study. Missing or omitted information supplied by the Riverwood CDD for the purposes of reserve study preparation. Hidden improvements such as sewer lines, water lines, irrigation lines or other buried or concealed items. Plant Notes Riverwood CDD has a sewer plant system that serves its residents as well as residents in nearby communities. Overall, it serves the 1323 residents in Riverwood and approximately 1000 other residents, with 100 more residents of a condominium to be added in the near future. The sewer plant is currently nearing capacity. The capacity of the sewer plant is 499,000 gallons per day. The average flow rate differs by the season. In the summer months, when there are less residents in Riverwood and the nearby communities, the usage is 125,000 -- 185,000 gallons per day. In the winter months, when the most owners are around, daily capacity ranges from 375,000 -- 425,000 gallons per day. The plant can hold wasterwater for up to 3 days. Additionally, there are two backup ponds that can hold water for up to 7-8 days. The sewer plant was built in 1998. Research on sewer plants indicates that the current cost to build the facility is approximately $5.00 per gallon per day of capacity, which would result in a cost of $2,495,000. The sewer plant consists of several parts, most notably: - 4 blowers - bar screeners - 60 HP (40 kw output) generator and 175 HP generator - 20 lift stations (~8 outside of the Riverwood community) - numerous pumps - grinders - variable frequency drives - electronics and controls - aeration and clarifying tanks At the time of inspection, we observed cracks on the main plant concrete walls. In general, the plant Page 8 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued is considered to be in good condition. Repairs are typically handled as soon as items break. A review of expenses has indicated there have 19 lift station related expenses for approximately $550,000 over the past 5 years. This means the District has averaged $110,000 per year in lift station expenses over that time. The sewer plant (including lift stations) has averaged approximately $200,000 in repairs over the last 8 years. Since the sewer plant is 18 years old, it is more likely that there will be more repairs as the first generation of equipment will increasingly reach the end of its life span or need repair. Additionally, the sewer plant has added more customers over the last few years and has more coming on-line in the near future, which will add to the wear on the system. Also coming from the reserve fund will be future modernization and rebuilding, modernizing electronics, expenses due to changing regulations, and necessary on-demand large scale repairs. It is our recommendation the District funds $250,000 per year for reserves for the continuation of the operation of the sewer plant and lift stations, with a minimum threshold balance of at least $600,000. We also recommend funding for other smaller sewer items that are to be maintained at the site. These items are delineated in the report. Potable Water and Line Notes Riverwood CDD has responsibility for their water and sewer lines. Riverwood has an estimated 76,741 linear feet (LF) of water main lines that are 6" PVC. It also has an estimated 24,328 LF of forced sewer main lines and 92,911 LF of gravity sewer lines. Both types of sewer lines are 8" cast iron. The costs for each of the components are as follows: Water Main Lines - $25.00/LF Forced Main Lines - $20.00/LF Gravity Main Lines - $20.00/LF The estimated total cost for the water lines of Riverwood is $1,918,525. The estimated total cost for the sewer lines (both types) of Riverwood is $2,344,780. These systems have relatively indefinite lifespans and are reported to be in very good working condition. However, as these systems age, they are more likely to have breaks or need repairs. It is our opinion that the best way to fund for these repairs is by funding an allowance of 2.5% of the total cost of the system over a 5-year period. The repairs should be monitored and can be adjusted accordingly in future reserve funding analysis if they start to become more frequent. Reclaimed Water Notes Riverwood has a re-claimed water system for the community. Additionally, they purchase up to approximately 750,000 gallons daily from Charlotte County. Of particular note, the re-claimed water is comprised primarily of 6" PVC piping. Overall, there is 53,220 LF of re-claimed water piping. The estimated cost of the piping is $25.00/LF, which would result in a total cost of the piping of $1,330,500. PVC piping has a long indefinite lifespan. However, some money may be required for Page 9 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued small repairs. We recommend funding one-half of a percent per year of the total cost, or in this case, $6600 for repairs. Adjusting this over a 5 year period equates to a reserve amount of $33,000 over that time. Additionally, there is a pumping station in Riverwood. The station was completed in 2012. It has two main 60 HP (40 kw Output) pumps, one 5 HP jockey pump, an electronics panel with controls, a filter, and chemical mixers. These items are delineated separately within the report. Statement of Qualifications Paul Gallizzi and Steven Swartz are professionals in the business of preparing reserve studies and insurance appraisals for community associations. We have provided detailed analysis of over 250,000 apartment, villa, townhome, and condominium units. We have prepared insurance appraisals and reserve studies for all types of community associations including high rise condominiums, midrise condominiums, garden-style condominiums, townhouse developments, single family homeowners associations, etc. We both hold engineering degrees from fully accredited universities. Paul Gallizzi is a State Certified General Real Estate Appraiser License Number RZ 110 and a State Certified General Contractor License Number CGC 019465. Steven Swartz is a designated Reserve Specialist, RS No.214, from the Community Associations Institute as well as a State Certified General Real Estate Appraiser License Number RZ 3479. Conflict of Interest As the preparers of this reserve study, we certify that we do not have any vested interests, financial interests, or other interests that would cause a conflict of interest in the preparation of this reserve study. We would like to thank Riverwood CDD for the opportunity to be of service in the preparation of the attached Funding Study. Again, please feel free to write or call at our letterhead address, if you have any questions. Prepared by: Paul Gallizzi Steven M. Swartz, RS Enclosures: 3 Pages of Photographs Attached APPENDIX "A" - Summary of Reserve Accounts Page 10 of 31
Prepared by Florida Reserve Study and Appraisal Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued Reclaimed Water Pump Station Reclaimed Water Pump Station Maintenance Building Maintenance Building Maintenance Building Rollup Door Maintenance Building HVAC Page 11 of 31 Pages
Prepared by Florida Reserve Study and Appraisal Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued Maintenance Building Interior Parking Area 6' Chain Link Fencing around Plant Plant Gate and Operator Plant Office Building Plant Office Building Interior Page 12 of 31 Pages
Prepared by Florida Reserve Study and Appraisal Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued Plant Plant, Note Crack in Exterior Wall Plant Clarifying Tank Plant Clarifying Tank Plant Aeration Basin Plant 175 kw Generator Page 13 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Summary - Continued APPENDIX "A" Summary of Reserve Accounts Account Description Amount Interest Rate Statement Date Water System $ 312,718.00 1.00% October 1, 2017 System $ 908,650.00 1.00% October 1, 2017 Unrestricted $ 752,237.00 1.00% October 1, 2017 Reserve Values Used : $ 1,973,605.00 1.00% October 1, 2017 Page 14 of 31
Riverwood CDD Water,, and Irrigation Reserve Study Expense Item Summary Reserve Items Potable Water Lines Repairs Water Meters Replace Yearly Current Cost When New Estimated Remaining Life Potable Water Expected Life When New First Replacement Cost Repeating Item? $ 48,000 4 Years 5 Years $ 54,384 Yes $ 12,720 0 Year 1 Years $ 13,042 Yes Reclaimed Water Reclaimed Water System Pumps 60 HP (40 kw Output) $ 64,000 15 Years 20 Years $ 95,437 Yes Jockey Pump 5 HP $ 7,500 7 Years 20 Years $ 9,159 Yes Reclaimed Water System Filters Reclaimed Water System Control Panel Repair Reclaimed Water System Pipe Repairs Reclaimed Water System Chemical Controllers $ 5,000 15 Years 20 Years $ 7,456 Yes $ 20,000 15 Years 20 Years $ 29,824 Yes $ 33,000 4 Years 5 Years $ 37,389 Yes $ 10,000 3 Years 8 Years $ 11,051 Yes VFD Drives $ 15,000 5 Years 10 Years $ 17,425 Yes Maintenance Building HVAC 2.5 Tons Maintenance Building Rollup Garage Door Maintenance Building Cabinet and Office Refurbishment Parking 1 Inch Mill and Overlay $ 3,750 9 Years 12 Years $ 4,814 Yes $ 3,000 17 Years 20 Years $ 4,703 Yes $ 6,000 17 Years 20 Years $ 9,405 Yes $ 13,682 10 Years 18 Years $ 18,008 No 6' Chain Link Fence $ 48,468 20 Years 30 Years $ 81,888 Yes Gate and Gate Operators $ 6,000 10 Years 15 Years $ 7,897 Yes Office Building Flat Roofing Office Building Interior Refurbishment Plant System and Lift Station Repairs $ 1,344 5 Years 15 Years $ 1,561 Yes $ 5,000 12 Years 30 Years $ 6,918 Yes $ 250,000 0 Year 1 Years $ 256,322 Yes Lines Repairs $ 58,600 4 Years 5 Years $ 66,394 Yes Months Remaining in Fiscal Calendar Year 2017: 12 Expected annual inflation: 2.50% Interest earned on reserve funds: 1.00% Initial Reserve: $ 1,973,605 Page 15 of 31
Riverwood CDD Water,, and Irrigation Reserve Study Expense Item Listing Reserve Items Unit Cost No Units Potable Water Lines Repairs Water Meters Replace Yearly Current Cost When New Potable Water $ 48,000 / total 1 total $ 48,000 $ 240 ea 53 $ 12,720 Estimated Remaining Life Expected Life When New Fiscal Calendar Year Estimated Future Cost 4 Years 2021 $ 54,384 5 Years 5 Years 2026 $ 61,617 2031 2036 $ 69,812 $ 79,097 2041 $ 89,618 2046 $ 101,537 0 Years 2017 $ 13,042 1 Years 1 Year 2018 $ 13,371 2019 $ 13,710 2020 $ 14,056 2021 $ 14,412 2022 $ 14,776 2023 $ 15,150 2024 $ 15,533 2025 $ 15,926 2026 $ 16,329 2027 $ 16,741 2028 $ 17,165 2029 $ 17,599 2030 $ 18,044 2031 $ 18,500 2032 $ 18,968 2033 $ 19,448 2034 $ 19,940 2035 $ 20,444 2036 $ 20,961 2037 $ 21,491 2038 $ 22,034 2039 $ 22,592 2040 $ 23,163 2041 $ 23,749 2042 $ 24,349 2043 $ 24,965 Page 16 of 31
Riverwood CDD Water,, and Irrigation Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Water Meters Replace Yearly Current Cost When New Estimated Remaining Life Expected Life When New $ 240 ea 53 $ 12,720 1 Years 1 Year Fiscal Calendar Year Estimated Future Cost 2044 $ 25,596 2045 2046 $ 26,244 $ 26,907 2047 $ 27,588 Reclaimed Water Reclaimed 15 Years 2032 $ 95,437 Water System $ 32,000 ea 2 $ 64,000 20 Years Pumps 60 HP 20 Years 2052 $ 157,267 Jockey Pump 5 HP $ 7,500 ea 1 $ 7,500 7 Years 2024 $ 9,159 20 Years 20 Years 2044 $ 15,092 2064 $ 24,870 Reclaimed 15 Years 2032 $ 7,456 Water System $ 5,000 ea 1 $ 5,000 20 Years Filters 20 Years 2052 $ 12,287 Reclaimed Water System Control Panel Repair Reclaimed Water System Pipe Repairs $ 20,000 ea 1 $ 20,000 $ 33,000 / total 1 total $ 33,000 15 Years 20 Years 20 Years 2032 2052 $ 29,824 $ 49,146 4 Years 2021 $ 37,389 5 Years 5 Years 2026 $ 42,362 2031 $ 47,996 2036 $ 54,380 2041 $ 61,612 2046 $ 69,807 3 Years 2020 $ 11,051 Reclaimed 2028 $ 13,494 Water System $ 5,000 ea 2 $ 10,000 8 Years 2036 $ 16,479 Chemical 8 Years Controllers 2044 $ 20,123 VFD Drives $ 5,000 ea 3 $ 15,000 2052 $ 24,573 5 Years 2022 $ 17,425 10 Years 10 Years 2032 $ 22,368 2042 $ 28,714 2052 $ 36,860 Page 17 of 31
Riverwood CDD Water,, and Irrigation Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Current Cost When New Estimated Remaining Life Expected Life When New Fiscal Calendar Year Estimated Future Cost Maintenance 9 Years 2026 $ 4,814 Building HVAC $ 3,750 ea 1 $ 3,750 12 Years 2038 $ 6,496 2.5 Tons 12 Years 2050 $ 8,766 Maintenance 17 Years 2034 $ 4,703 Building Rollup $ 3,000 ea 1 $ 3,000 20 Years Garage Door 20 Years 2054 $ 7,749 Maintenance Building Cabinet and Office Refurbishment Parking 1 Inch Mill and Overlay 6' Chain Link Fence Gate and Gate Operators Office Building Flat Roofing $ 6,000 / total 1 total $ 6,000 17 Years 20 Years 20 Years 2034 2054 $ 9,405 $ 15,499 $ 1.00 / sf 13682 sf $ 13,682 10 Years 18 Years 2027 $ 18,008 $ 21.00 / lf 2308 lf $ 48,468 $ 6,000 / total 1 total $ 6,000 $ 4.00 / sf 336 sf $ 1,344 20 Years 30 Years 30 Years 2037 2067 $ 81,888 $ 173,223 10 Years 2027 $ 7,897 15 Years 15 Years 2042 $ 11,485 2057 $ 16,705 5 Years 2022 $ 1,561 15 Years 15 Years 2037 $ 2,271 2052 $ 3,303 Office Building 12 Years 2029 $ 6,918 Interior $ 5,000 / total 1 total $ 5,000 30 Years Refurbishment 30 Years 2059 $ 14,634 0 Years 2017 $ 256,322 2018 $ 262,804 2019 $ 269,450 2020 $ 276,264 Plant 2021 $ 283,250 System and Lift $ 250,000 / total 1 total $ 250,000 1 Year 2022 $ 290,413 Station Repairs 1 Years 2023 $ 297,757 2024 $ 305,287 2025 $ 313,007 2026 $ 320,923 2027 $ 329,039 Page 18 of 31
Riverwood CDD Water,, and Irrigation Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost No Units Plant System and Lift Station Repairs Lines Repairs Current Cost When New Estimated Remaining Life Expected Life When New $ 250,000 / total 1 total $ 250,000 1 Years 1 Year $ 58,600 / total 1 total $ 58,600 Months Remaining in Fiscal Calendar Year 2017: 12 Fiscal Calendar Year 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 Estimated Future Cost $ 337,359 $ 345,891 $ 354,638 $ 363,606 $ 372,801 $ 382,229 $ 391,895 $ 401,805 $ 411,966 $ 422,384 $ 433,065 $ 444,017 $ 455,245 $ 466,758 $ 478,562 $ 490,664 $ 503,072 $ 515,794 $ 528,837 $ 542,211 4 Years 2021 $ 66,394 5 Years 5 Years Expected annual inflation: 2.50% Interest earned on reserve funds: 1.00% Initial Reserve: $ 1,973,605 2026 $ 75,224 2031 2036 $ 85,229 $ 96,565 2041 $ 109,408 2046 $ 123,959 Page 19 of 31
Present Costs Category Item Name No Units Unit Cost Present Cost Potable Water Potable Water Lines Repairs 1 total $ 48,000.00 / total $ 48,000.00 Water Meters Replace Yearly 53 $ 240.00 ea $ 12,720.00 Potable Water Sub Total = $ 60,720.00 Reclaimed Water System Pumps 60 HP (40 KW Output) 2 $ 32,000.00 ea $ 64,000.00 Jockey Pump 5 HP 1 $ 7,500.00 ea $ 7,500.00 Reclaimed Water System Filters 1 $ 5,000.00 ea $ 5,000.00 Reclaimed Water Reclaimed Water System Control Panel Repair Reclaimed Water System Pipe Repairs Reclaimed Water System Chemical Controllers 1 $ 20,000.00 ea $ 20,000.00 1 total $ 33,000.00 / total $ 33,000.00 2 $ 5,000.00 ea $ 10,000.00 VFD Drives 3 $ 5,000.00 ea $ 15,000.00 Reclaimed Water Sub Total = $ 154,500.00 Maintenance Building HVAC 2.5 Tons Maintenance Building Rollup Garage Door Maintenance Building Cabinet and Office Refurbishment 1 $ 3,750.00 ea $ 3,750.00 1 $ 3,000.00 ea $ 3,000.00 1 total $ 6,000.00 / total $ 6,000.00 Parking 1 Inch Mill and Overlay 13682 sf $ 1.00 / sf $ 13,682.00 6' Chain Link Fence 2308 lf $ 21.00 / lf $ 48,468.00 Gate and Gate Operators 1 total $ 6,000.00 / total $ 6,000.00 Office Building Flat Roofing 336 sf $ 4.00 / sf $ 1,344.00 Office Building Interior Refurbishment Plant System and Lift Station Repairs 1 total $ 5,000.00 / total $ 5,000.00 1 total $ 250,000.00 / total $ 250,000.00 Lines Repairs 1 total $ 58,600.00 / total $ 58,600.00 Sub Total = $ 395,844.00 Totals = $ 611,064.00 Page 20 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Modified Cash Flow Analysis Fiscal Calendar Year Annual Assessment Annual Interest Annual Expenses Net Reserve Funds 2017 $ 316,700 $ 21,192 $ 269,364 $ 2,042,133 2018 $ 324,618 $ 21,913 $ 276,176 $ 2,112,488 2019 $ 332,733 $ 22,654 $ 283,160 $ 2,184,716 2020 $ 341,051 $ 23,415 $ 301,371 $ 2,247,811 2021 $ 349,578 $ 24,085 $ 455,829 $ 2,165,644 2022 $ 358,317 $ 23,303 $ 324,176 $ 2,223,089 2023 $ 367,275 $ 23,919 $ 312,907 $ 2,301,375 2024 $ 376,457 $ 24,744 $ 329,979 $ 2,372,597 2025 $ 385,868 $ 25,499 $ 328,933 $ 2,455,032 2026 $ 395,515 $ 26,368 $ 521,269 $ 2,355,646 2027 $ 405,403 $ 25,420 $ 371,685 $ 2,414,784 2028 $ 415,538 $ 26,058 $ 368,019 $ 2,488,361 2029 $ 425,926 $ 26,841 $ 370,407 $ 2,570,721 2030 $ 436,574 $ 27,714 $ 372,682 $ 2,662,327 2031 $ 447,489 $ 28,680 $ 585,144 $ 2,553,352 2032 $ 458,676 $ 27,642 $ 546,854 $ 2,492,816 2033 $ 470,143 $ 27,089 $ 401,676 $ 2,588,371 2034 $ 481,897 $ 28,099 $ 425,942 $ 2,672,424 2035 $ 493,944 $ 28,994 $ 422,249 $ 2,773,113 2036 $ 506,293 $ 30,058 $ 679,447 $ 2,630,017 2037 $ 518,950 $ 28,685 $ 528,034 $ 2,649,618 2038 $ 531,924 $ 28,941 $ 461,596 $ 2,748,887 2039 $ 545,222 $ 29,995 $ 466,609 $ 2,857,494 2040 $ 558,852 $ 31,143 $ 478,408 $ 2,969,082 2041 $ 572,824 $ 32,324 $ 751,144 $ 2,823,085 2042 $ 587,144 $ 30,929 $ 543,110 $ 2,898,048 2043 $ 601,823 $ 31,747 $ 515,629 $ 3,015,989 2044 $ 616,868 $ 32,995 $ 563,883 $ 3,101,969 2045 $ 632,290 $ 33,926 $ 542,037 $ 3,226,148 2046 $ 648,097 $ 35,240 $ 851,047 $ 3,058,438 2047 $ 664,300 $ 33,638 $ 569,798 $ 3,186,577 Totals : $ 14,568,286 $ 863,249 $ 14,218,563 ¹ Cash Reserves minus Fully Funded Value The cash distribution shown in this table applies to repair and replacement cash reserves only. Basis of Funding Study - Modified Cash Flow Cash reserves have been set to a minimum of $ 0 Cash Flow has been modified with the forced Fixed Payments. Months Remaining in Fiscal Calendar Year 2017: 12 Inflation = 2.50 % Interest = 1.00 % Page 21 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Cash Flow by Fiscal Calendar Year - Continued Study Life = 30 years Initial Reserve Funds = $ 1,973,605.00 Final Reserve Value = $ 3,186,576.71 Page 22 of 31 Pages
Riverwood CDD Water,, and Irrigation Modified Reserve Assessment Summary Projected Assessment by Fiscal Calendar Year Fiscal Calendar Year Owner Total Annual Assessment Annual Reserve Assessment Assessment Summary has been modified with forced Fixed Payments. 2017 $ 239.38 $ 316,700 2018 $ 245.36 $ 324,618 2019 $ 251.50 $ 332,733 2020 $ 257.79 $ 341,051 2021 $ 264.23 $ 349,578 2022 $ 270.84 $ 358,317 2023 $ 277.61 $ 367,275 2024 $ 284.55 $ 376,457 2025 $ 291.66 $ 385,868 2026 $ 298.95 $ 395,515 2027 $ 306.43 $ 405,403 2028 $ 314.09 $ 415,538 2029 $ 321.94 $ 425,926 2030 $ 329.99 $ 436,574 2031 $ 338.24 $ 447,489 2032 $ 346.69 $ 458,676 2033 $ 355.36 $ 470,143 2034 $ 364.25 $ 481,897 2035 $ 373.35 $ 493,944 2036 $ 382.69 $ 506,293 2037 $ 392.25 $ 518,950 2038 $ 402.06 $ 531,924 2039 $ 412.11 $ 545,222 2040 $ 422.41 $ 558,852 2041 $ 432.97 $ 572,824 2042 $ 443.80 $ 587,144 2043 $ 454.89 $ 601,823 2044 $ 466.26 $ 616,868 2045 $ 477.92 $ 632,290 2046 $ 489.87 $ 648,097 2047 $ 502.12 $ 664,300 In the context of the Reserve Payment Summary, the ''Annual Reserve Payment'' corresponds with the ''Annual Revenue'' in the Cash Flow report. Operations Payments Include an annual inflation factor of 2.50% Number of Payment Months in Fiscal Calendar Year 2017: 12 Number of Years of Constant Payments: 1 Page 23 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Assessment Summary by Fiscal Calendar Year - Continued No of Assessed Owners: 1323 Page 24 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study - Expenses by Item and by Fiscal Calendar Year Item Description FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 FY 2026 FY 2027 FY 2028 FY 2029 FY 2030 FY 2031 FY 2032 FY 2033 FY 2034 FY 2035 Reserve Category : Potable Water Potable Water Lines Repairs $ 54,384 $ 61,617 $ 69,812 Water Meters Replace Yearly $ 13,042 $ 13,371 $ 13,710 $ 14,056 $ 14,412 $ 14,776 $ 15,150 $ 15,533 $ 15,926 $ 16,329 $ 16,741 $ 17,165 $ 17,599 $ 18,044 $ 18,500 $ 18,968 $ 19,448 $ 19,940 $ 20,444 Category Subtotal : $ 13,042 $ 13,371 $ 13,710 $ 14,056 $ 68,796 $ 14,776 $ 15,150 $ 15,533 $ 15,926 $ 77,946 $ 16,741 $ 17,165 $ 17,599 $ 18,044 $ 88,312 $ 18,968 $ 19,448 $ 19,940 $ 20,444 Reserve Category : Reclaimed Water Reclaimed Water System Pumps 60 HP (40 KW Output) $ 95,437 Jockey Pump 5 HP $ 9,159 Reclaimed Water System Filters $ 7,456 Reclaimed Water System Control Panel Repair $ 29,824 Reclaimed Water System Pipe Repairs Reclaimed Water System Chemical Controllers $ 37,389 $ 42,362 $ 47,996 $ 11,051 $ 13,494 VFD Drives $ 17,425 $ 22,368 Category Subtotal : $ 11,051 $ 37,389 $ 17,425 $ 9,159 $ 42,362 $ 13,494 $ 47,996 $ 155,085 Reserve Category : Maintenance Building HVAC 2.5 Tons $ 4,814 Maintenance Building Rollup Garage Door Maintenance Building Cabinet and Office Refurbishment $ 4,703 $ 9,405 Parking 1 Inch Mill and Overlay $ 18,008 6' Chain Link Fence Gate and Gate Operators $ 7,897 Office Building Flat Roofing $ 1,561 Office Building Interior Refurbishment Plant System and Lift Station Repairs $ 256,322 $ 262,804 $ 269,450 $ 276,264 $ 283,250 $ 290,413 $ 297,757 $ 305,287 $ 313,007 $ 320,923 $ 329,039 $ 337,359 $ 345,891 $ 354,638 $ 363,606 $ 372,801 $ 382,229 $ 391,895 $ 401,805 $ 6,918 Lines Repairs $ 66,394 $ 75,224 $ 85,229 Category Subtotal : $ 256,322 $ 262,804 $ 269,450 $ 276,264 $ 349,644 $ 291,974 $ 297,757 $ 305,287 $ 313,007 $ 400,961 $ 354,944 $ 337,359 $ 352,809 $ 354,638 $ 448,835 $ 372,801 $ 382,229 $ 406,003 $ 401,805 Expense Totals : $ 269,364 $ 276,176 $ 283,160 $ 301,371 $ 455,829 $ 324,176 $ 312,907 $ 329,979 $ 328,933 $ 521,269 $ 371,685 $ 368,019 $ 370,407 $ 372,682 $ 585,144 $ 546,854 $ 401,676 $ 425,942 $ 422,249 Page 25 of 31 Pages
Riverwood CDD Water,, and Irrigation Funding Study Expenses by Fiscal Calendar Year - Continued Item Description FY 2036 FY 2037 FY 2038 FY 2039 FY 2040 FY 2041 FY 2042 FY 2043 FY 2044 FY 2045 FY 2046 FY 2047 Reserve Category : Potable Water Potable Water Lines Repairs $ 79,097 $ 89,618 $ 101,537 Water Meters Replace Yearly $ 20,961 $ 21,491 $ 22,034 $ 22,592 $ 23,163 $ 23,749 $ 24,349 $ 24,965 $ 25,596 $ 26,244 $ 26,907 $ 27,588 Category Subtotal : $ 100,058 $ 21,491 $ 22,034 $ 22,592 $ 23,163 $ 113,367 $ 24,349 $ 24,965 $ 25,596 $ 26,244 $ 128,444 $ 27,588 Reclaimed Water System Pumps 60 HP (40 KW Output) Reserve Category : Reclaimed Water Jockey Pump 5 HP $ 15,092 Reclaimed Water System Filters Reclaimed Water System Control Panel Repair Reclaimed Water System Pipe Repairs Reclaimed Water System Chemical Controllers $ 54,380 $ 61,612 $ 69,807 $ 16,479 $ 20,123 VFD Drives $ 28,714 Category Subtotal : $ 70,859 $ 61,612 $ 28,714 $ 35,215 $ 69,807 Reserve Category : Maintenance Building HVAC 2.5 Tons $ 6,496 Maintenance Building Rollup Garage Door Maintenance Building Cabinet and Office Refurbishment Parking 1 Inch Mill and Overlay 6' Chain Link Fence $ 81,888 Gate and Gate Operators $ 11,485 Office Building Flat Roofing $ 2,271 Office Building Interior Refurbishment Plant System and Lift Station Repairs $ 411,966 $ 422,384 $ 433,065 $ 444,017 $ 455,245 $ 466,758 $ 478,562 $ 490,664 $ 503,072 $ 515,794 $ 528,837 $ 542,211 Lines Repairs $ 96,565 $ 109,408 $ 123,959 Category Subtotal : $ 508,531 $ 506,543 $ 439,561 $ 444,017 $ 455,245 $ 576,166 $ 490,047 $ 490,664 $ 503,072 $ 515,794 $ 652,796 $ 542,211 Expense Totals : $ 679,447 $ 528,034 $ 461,596 $ 466,609 $ 478,408 $ 751,144 $ 543,110 $ 515,629 $ 563,883 $ 542,037 $ 851,047 $ 569,798 Page 26 of 31 Pages
Florida Reserve Study and Appraisal, Inc. 12407 N. Florida Avenue Tampa, FL 33612 Phone: 813.932.1588 Fax: 813.388.4189 www.reservestudyfl.com February 24, 2017 Expense Summary by Year Year Category Item Name Expense FY 2017 Potable Water Water Meters Replace Yearly $ 13,042 Plant System and Lift Station Repairs $ 256,322 FY 2017 Annual Expense Total = $ 269,364 FY 2018 Potable Water Water Meters Replace Yearly $ 13,371 Plant System and Lift Station Repairs $ 262,804 FY 2018 Annual Expense Total = $ 276,175 FY 2019 Potable Water Water Meters Replace Yearly $ 13,710 Plant System and Lift Station Repairs $ 269,450 FY 2019 Annual Expense Total = $ 283,160 Potable Water Water Meters Replace Yearly $ 14,056 FY 2020 Reclaimed Water Reclaimed Water System Chemical Controllers $ 11,051 Plant System and Lift Station Repairs $ 276,264 FY 2020 Annual Expense Total = $ 301,371 Potable Water Potable Water Lines Repairs $ 54,384 Water Meters Replace Yearly $ 14,412 Potable Water Subtotal = $ 68,796.00 FY 2021 Reclaimed Water Reclaimed Water System Pipe Repairs $ 37,389 Plant System and Lift Station Repairs $ 283,250 Lines Repairs $ 66,394 Subtotal = $ 349,644.00 FY 2021 Annual Expense Total = $ 455,829 Potable Water Water Meters Replace Yearly $ 14,776 Reclaimed Water VFD Drives $ 17,425 FY 2022 Office Building Flat Roofing $ 1,561 Plant System and Lift Station Repairs $ 290,413 Subtotal = $ 291,974.00 Page 27 of 31 Pages
Year Category Item Name Expense FY 2022 Annual Expense Total = $ 324,175 FY 2023 Potable Water Water Meters Replace Yearly $ 15,150 Plant System and Lift Station Repairs $ 297,757 FY 2023 Annual Expense Total = $ 312,907 Potable Water Water Meters Replace Yearly $ 15,533 FY 2024 Reclaimed Water Jockey Pump 5 HP $ 9,159 Plant System and Lift Station Repairs $ 305,287 FY 2024 Annual Expense Total = $ 329,979 FY 2025 Potable Water Water Meters Replace Yearly $ 15,926 Plant System and Lift Station Repairs $ 313,007 FY 2025 Annual Expense Total = $ 328,933 Potable Water Potable Water Lines Repairs $ 61,617 Water Meters Replace Yearly $ 16,329 Potable Water Subtotal = $ 77,946.00 FY 2026 Reclaimed Water Reclaimed Water System Pipe Repairs $ 42,362 Maintenance Building HVAC 2.5 Tons $ 4,814 Plant System and Lift Station Repairs $ 320,923 Lines Repairs $ 75,224 Subtotal = $ 400,961.00 FY 2026 Annual Expense Total = $ 521,269 Potable Water Water Meters Replace Yearly $ 16,741 Parking 1 Inch Mill and Overlay $ 18,008 FY 2027 Gate and Gate Operators $ 7,897 Plant System and Lift Station Repairs $ 329,039 Subtotal = $ 354,944.00 FY 2027 Annual Expense Total = $ 371,685 Potable Water Water Meters Replace Yearly $ 17,165 FY 2028 Reclaimed Water Reclaimed Water System Chemical Controllers $ 13,494 Plant System and Lift Station Repairs $ 337,359 FY 2028 Annual Expense Total = $ 368,018 Potable Water Water Meters Replace Yearly $ 17,599 FY 2029 Office Building Interior Refurbishment $ 6,918 Plant System and Lift Station Repairs $ 345,891 Page 28 of 31 Pages
Year Category Item Name Expense Subtotal = $ 352,809.00 FY 2029 Annual Expense Total = $ 370,408 FY 2030 Potable Water Water Meters Replace Yearly $ 18,044 Plant System and Lift Station Repairs $ 354,638 FY 2030 Annual Expense Total = $ 372,682 Potable Water Potable Water Lines Repairs $ 69,812 Water Meters Replace Yearly $ 18,500 Potable Water Subtotal = $ 88,312.00 FY 2031 Reclaimed Water Reclaimed Water System Pipe Repairs $ 47,996 Plant System and Lift Station Repairs $ 363,606 Lines Repairs $ 85,229 Subtotal = $ 448,835.00 FY 2031 Annual Expense Total = $ 585,143 Potable Water Water Meters Replace Yearly $ 18,968 Reclaimed Water System Pumps 60 HP (40 KW Output) $ 95,437 FY 2032 Reclaimed Water Reclaimed Water System Filters $ 7,456 Reclaimed Water System Control Panel Repair $ 29,824 VFD Drives $ 22,368 Reclaimed Water Subtotal = $ 155,085.00 Plant System and Lift Station Repairs $ 372,801 Annual Expense Total = $ 546,854 FY 2033 Potable Water Water Meters Replace Yearly $ 19,448 Plant System and Lift Station Repairs $ 382,229 FY 2033 Annual Expense Total = $ 401,677 Potable Water Water Meters Replace Yearly $ 19,940 Maintenance Building Rollup Garage Door $ 4,703 FY 2034 Maintenance Building Cabinet and Office Refurbishment $ 9,405 Plant System and Lift Station Repairs $ 391,895 Subtotal = $ 406,003.00 FY 2034 Annual Expense Total = $ 425,943 FY 2035 Potable Water Water Meters Replace Yearly $ 20,444 Plant System and Lift Station Repairs $ 401,805 FY 2035 Annual Expense Total = $ 422,249 Page 29 of 31 Pages
Year Category Item Name Expense Potable Water Potable Water Lines Repairs $ 79,097 Water Meters Replace Yearly $ 20,961 FY 2036 Reclaimed Water Potable Water Subtotal = $ 100,058.00 Reclaimed Water System Pipe Repairs $ 54,380 Reclaimed Water System Chemical Controllers $ 16,479 Reclaimed Water Subtotal = $ 70,859.00 Plant System and Lift Station Repairs $ 411,966 Lines Repairs $ 96,565 Subtotal = $ 508,531.00 FY 2036 Annual Expense Total = $ 679,448 Potable Water Water Meters Replace Yearly $ 21,491 6' Chain Link Fence $ 81,888 FY 2037 Office Building Flat Roofing $ 2,271 Plant System and Lift Station Repairs $ 422,384 Subtotal = $ 506,543.00 FY 2037 Annual Expense Total = $ 528,034 Potable Water Water Meters Replace Yearly $ 22,034 FY 2038 Maintenance Building HVAC 2.5 Tons $ 6,496 Plant System and Lift Station Repairs $ 433,065 Subtotal = $ 439,561.00 FY 2038 Annual Expense Total = $ 461,595 FY 2039 Potable Water Water Meters Replace Yearly $ 22,592 Plant System and Lift Station Repairs $ 444,017 FY 2039 Annual Expense Total = $ 466,609 FY 2040 Potable Water Water Meters Replace Yearly $ 23,163 Plant System and Lift Station Repairs $ 455,245 FY 2040 Annual Expense Total = $ 478,408 Potable Water Potable Water Lines Repairs $ 89,618 Water Meters Replace Yearly $ 23,749 Potable Water Subtotal = $ 113,367.00 FY 2041 Reclaimed Water Reclaimed Water System Pipe Repairs $ 61,612 Plant System and Lift Station Repairs $ 466,758 Lines Repairs $ 109,408 Subtotal = $ 576,166.00 Page 30 of 31 Pages
Year Category Item Name Expense FY 2041 Annual Expense Total = $ 751,145 Potable Water Water Meters Replace Yearly $ 24,349 Reclaimed Water VFD Drives $ 28,714 FY 2042 Gate and Gate Operators $ 11,485 Plant System and Lift Station Repairs $ 478,562 Subtotal = $ 490,047.00 FY 2042 Annual Expense Total = $ 543,110 FY 2043 Potable Water Water Meters Replace Yearly $ 24,965 Plant System and Lift Station Repairs $ 490,664 FY 2043 Annual Expense Total = $ 515,629 Potable Water Water Meters Replace Yearly $ 25,596 FY 2044 Reclaimed Water Jockey Pump 5 HP $ 15,092 Reclaimed Water System Chemical Controllers $ 20,123 Reclaimed Water Subtotal = $ 35,215.00 Plant System and Lift Station Repairs $ 503,072 Annual Expense Total = $ 563,883 FY 2045 Potable Water Water Meters Replace Yearly $ 26,244 Plant System and Lift Station Repairs $ 515,794 FY 2045 Annual Expense Total = $ 542,038 Potable Water Potable Water Lines Repairs $ 101,537 Water Meters Replace Yearly $ 26,907 Potable Water Subtotal = $ 128,444.00 FY 2046 Reclaimed Water Reclaimed Water System Pipe Repairs $ 69,807 Plant System and Lift Station Repairs $ 528,837 Lines Repairs $ 123,959 Subtotal = $ 652,796.00 FY 2046 Annual Expense Total = $ 851,047 FY 2047 Potable Water Water Meters Replace Yearly $ 27,588 Plant System and Lift Station Repairs $ 542,211 FY 2047 Annual Expense Total = $ 569,799 Page 31 of 31 Pages