Commercial Assessments (888) 225-3755 www.commercialassessments.com Funding Reserve Analysis for Timberlake Crossing Condominium Unit Owners Association Hardy, VA January 15, 2013 Page 1 of 24 Pages
Funding Reserve Analysis for Timberlake Crossing Condominium Unit Owners Association Hardy, VA Table of Contents Pages Subject 1 Report Cover Sheet 2 Table of Contents 3 to 15 Reserve Study Summary 16 to 18 Reserve Item Listing 19 to 20 Cash Flow 21 Dues Summary 22 to 24 Expense Summary Page 2 of 24 Pages
Commercial Assessments (888) 225-3755 www.commercialassessments.com January 15, 2013 Ms. Maureen Baker Timberlake Crossing Condominium Unit Owners Association, Inc. Mountain Cove Drive Hardy, VA 24101 Subject: Reserve Study for Timberlake Crossing Condominium Unit Owners Association, Inc. - UOA0301W Ms. Baker, Commercial Assessments is pleased to present to Maureen Baker and the Timberlake Crossing Condominium Unit Owners Association, Inc. 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 contact us - we would be pleased to answer any questions you may have. Project Description Timberlake Crossing Condominium Unit Owners Association is made up of three condominium buildings with a total of 24 individual dwelling units. Some of the common components of Timberlake Crossing Condominium Unit Owners Association are the building exterior surfaces and roofs, the asphalt parking area, the concrete flatwork, the wood retaining walls, and six septic systems. The condominiums, which were constructed in 2006, are part of the master community of Timberlake Crossing, which consists of single family homes and common recreational facilities. Visit The site visit for Timberlake Crossing Condominiums was conducted by Reserve Analyst Kevin Salva of Commercial Assessments on December 27, 2012. Depth of Study A field inspection was made to verify the existing condition of the various reserve study components 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. Photographs were taken of the site improvements. Summary of Financial Assumptions The below table contains a partial summary of information provided to Commercial Assessments for the Timberlake Crossing Condominium Unit Owners Association funding study. Reserve Study by Calendar Starting Funding Study Length January 1, 2013 30 s Number of Dues Paying Members Reserve Balance as of January 1, 2013¹ 24 $20,000 Annual Inflation Rate 3.00% Tax Rate on Reserve Interest ² 30.00% Minimum Reserve Account Balance Dues Change Period $0 30 s Annual Operating Budget ¹ See ''Financial Condition of Association'' in this report. ² Taxed as an IRS exempt association Page 3 of 24 Pages $0
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued Reserve Study Assumptions The below listed assumptions are implicit in this reserve study. Cost estimates and financial information provided to Commercial Assessments are accurate and current. unforeseen circumstances will cause a significant reduction of reserves. Sufficient comprehensive property insurance exists to protect from insurable risks. The association plans to continue to maintain the existing common areas and amenities. Reserve payments occur at the end of every calendar month. Expenses occur at the end of the expense year. Governing Documents The Conditions, Covenants, and Restrictions governing documents for TImberlake Crossing Condominium Association were provided to Commercial Assessments for the production of this reserve study report. The CCRs were recorded in the Commonwealth of Virginia and the County of Franklin. This reserve study report was prepared in accordance with the CCRs. Impact of Component The projected life expectancy of the major components and the reserve funding needs of the association 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 association. 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 association. Inflation Estimate Per client directive, an inflation multiplier of 3.00 percent per annum has been applied to all future expenses. Initial Reserves Initial reserves for this reserve study were known to be $20,000 on January 1, 2013. Per client directive, a 0.2 percent interest rate has been factored into this report. The implicit assumption has been made that the reserve accounts were not drawn down between the date of the known reserve balance and the study start date. Financial Condition of Association The capital expenditures for this study period are projected to be $1,047,648.00. The recommended annual reserve payment for 2013 is $24,000.00, which calculates to $83.33 per month, per member. The recommended annual reserve fund contribution is set to increase by 5 percent annually until 2023, when the recommended contribution will level off and hold constant for the remainder of the study period. Following this recommendation will allow the association to initiate lower member monthly contributions while gradually building a financially healthy reserve fund account to prepare for future cycles of repairs and replacements. Please see Cash Flow and Dues Summary reports for details. Special Assessments Special Assessments are not required for this reserve study. Reserve Funding Goal The reserve fund is set to be as close to Fully Funded as possible on an annual basis. Study Method Reserve studies may be done in several ways, but we believe that the value of a reserve study lies in the details. In this study, we have used the "Component" method because it is the only method which allows scrutiny of the funding details. The method is pragmatic, and allows human judgement and experience to enter into the equation. Whenever possible, the known costs of reserve items have been factored into this report. Known costs are provided to Commercial Assessments in the form of invoices, qualified contractor proposals, or directly from the client. If exact Page 4 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued known costs are not available, present costs have been estimated by the Reserve Analyst's observations and experience; Commercial Assessments' proprietary internal database of costs; and industry recognized cost reference guides such as the National Construction Estimator, RS Means, and the Engineering New-Record Cost Book. 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 future costs. 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 Commercial Assessments has estimated future projected expenses for Timberlake Crossing Condominium Unit Owners Association, Inc. based upon preservation of existing improvements. The attached funding study is limited in scope to those expense items listed in the attached "Timberlake Crossing Condominium Unit Owners Association Reserve Study Expense Items". Expense items which have an expected life of more than 30 s are not included in this reserve study unless payment for these long lived items overlaps the 30 s reserve study envelope. The 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 member monthly fees as shown in the attached "Timberlake Crossing Condominium Unit Owners Association Dues Summary" will realize this goal. It is implied that the information provided to Commercial Assessments by the client, including but not limited to that information contained in the attached Reserve Study Information Summary, and the maintenance records, are complete and accurate, and that Commercial Assessments may rely upon such information and documents without further verification or corroboration. Where the age of a particular reserve item (as listed in the reserve study) is unknown, the best-estimated age of that item has been used. If the association is unable to provide and estimate of a reserve item's age, Commercial Assessments shall make its own estimate of age of the reserve item. The reserve study is created for the association's use, and is a reflection of information provided to Commercial Assessments. This information is not for the purpose of performing an audit, historical records, quality or forensic analyses. The on-site reserve study inspection is not considered to be a project audit, quality inspection, or property condition assessment. 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 an association. The assumption is, the higher the percentage, the greater the "Financial Health". The question of substance is simply: "How much is enough?" To answer the question, some understanding of Percent Funded is required. Percent Funded is the ratio of current cash reserves divided by the depreciated value of the association improvements. Percent Funded is then, the current reserve balance divided by the Fully Funded value multiplied by 100 (to give a percentage). The concept 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 Commercial Assessments believes 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 not more than five years. It is recommended that this reserve study should be updated on an annual basis or when one of the following events occur: changes in interest rates, changes in inflation rates, changes in the number of dues paying members, before starting new improvements, before making changes to the property, after a flood or fire, after the change of ownership or management, or after Annexation or Incorporation. Page 5 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued 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. Air quality, asbestos, electromagnetic radiation, formaldehyde, lead, mercury, or radon. Water quality or other environmental hazards. Invasions by termites and any or all other destroying organisms or insects. Damage or destruction due to 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. Missing or omitted information supplied by Timberlake Crossing Condominium Unit Owners Association, Inc.. Hidden improvements such as sewer lines, water lines, or other buried or concealed items. Items Maintained by Others Items Maintained by Others are those items that are not maintained by the specific association for which the study is conducted. Theses items are not included in the reserve study. The "Other" responsible parties may include the county, the utility company, the homeowner, or a separate association. Long Lived Items Long lived Items are considered to be those items that have remaining life expectancies that are unpredictable and/or beyond the study period. These items are not included in the reserve study. These items may require periodic maintenance or repairs which would typically be funded from the operating budget. In this study, examples of Long Lived Items are: the septic tanks, the drainage culvert, and the electric meters and panels. Although concrete surfaces are considered to be long lived items, a repair and replacement allowance has been factored into this analysis. Routine maintenance of these items will not only enhance the look of the community, it may extend the design life of these items. There are six septic systems servicing the three condominium buildings. The systems as a whole are long lived items, however the pumps and alarm components for each system will need to be replaced during this study period. The cost of replacing the pumps and alarm components for two systems at a time have been factored into this report. Operating Budget Items Operating Budget Items are those items that have a relatively low cost - typically less than $1,000 - and/or are considered to be short-term maintenance. These items are not included in the reserve study. For the purposes of this study, examples of Operating Budget Items include: the dog stations, the wood fence around the propane tanks, the wooden community signage, the septic system pumping, and the general landscaping. Tax Considerations Certain items that may be included in this reserve study, such as painting and reserve study fees, may not be tax deductible per IRS guidelines. Consultation with a tax advisor is recommended. Statement of Qualifications Keith Ruehl has been a professional in the business of preparing reserve studies and other property due diligence services for 25 years and is familiar with construction practices, construction costs, and contracting practices. Mr. Ruehl earned an MBA from va Southeastern University, is a graduate of the Building Construction program at BC Page 6 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued and currently holds state certified contractor licenses, pest control licenses, and ICC building and electrical inspector certifications. He is a member of CAI and has been awarded the Reserve Specialist designation. Mr. Ruehl is currently the Director of Reserve Study Services for Commercial Assessments. Conflict of Interest As the preparer of this reserve study report, Commercial Assessments certifies 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 report. Commercial Assessments would like to thank Timberlake Crossing Condominium Unit Owners Association, Inc. for the opportunity to be of service in the preparation of the attached reserve study report. Again, please feel free to contact us if you have any questions. This report was prepared by: Kevin Salva Reserve Analyst Cheryl Rorrer Technical Report Writer Keith Ruehl, RS Director of Reserve Study Services Enclosures: 3 Pages of Photographs Attached Category Photograph of Exterior Surfaces Category Photograph of Hardscape Category Photograph of Roofs Category Photograph of Septic Systems Category Photograph of Page 7 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued Vinyl Siding Stone Veneer Page 8 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued View of Rear Balconies Example of Wood Steps Page 9 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued Gutters & Downspouts Example of Post Lights Page 10 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued Reserve Category - Exterior Surfaces Category Photograph with Reserve Items in the Category: Exterior Surfaces Item Name Present Cost Remaining Expected First Expense First Expense Repeating Item? Vinyl Siding - Cycle 1 $35,680.00 28 Yrs 35 Yrs 2041 $85,072.56 Vinyl Siding - Cycle 2 $35,680.00 29 Yrs 35 Yrs 2042 $87,660.13 Vinyl Siding - Cycle 3 $35,680.00 30 Yrs 35 Yrs 2043 $90,326.40 Exterior Stone Veneer Tuck-Pointing $8,800.00 25 Yrs 30 Yrs $19,178.28 Exterior Wood Balcony $60,750.00 23 Yrs 30 Yrs 2036 $124,694.73 Exterior Railings & Balusters $6,624.00 23 Yrs 30 Yrs 2036 $13,596.34 Wood Steps Refurbishment Allowance $5,000.00 5 Yrs 10 Yrs $5,984.74 Yes Gutters & Downspouts Cycle 1 $5,831.00 28 Yrs 35 Yrs $13,902.97 Gutters & Downspouts Cycle 2 $5,831.00 29 Yrs 35 Yrs $14,325.85 Gutters & Downspouts Cycle 3 $5,831.00 30 Yrs 35 Yrs $14,761.58 2038 2018 2041 2042 2043 The vinyl siding and gutters have been divided into 3 equal cycles to allow the association the flexibility to decide which buildings to address in each cycle Page 11 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued Reserve Category - Hardscape Category Photograph with Reserve Items in the Category: Hardscape Item Name Present Cost Remaining Expected Asphalt Parking Area - Seal & Stripe $2,695.00 3 Yrs 5 Yrs Asphalt Parking Area - Mill & Overlay $64,680.00 25 Yrs 30 Yrs Concrete Walkways Stoops Steps & Patios - 20% Repair or Replacement Allowance $20,152.00 8 Yrs 10 Yrs First Expense 2016 2038 First Expense $3,038.15 Yes $140,960.35 $26,389.51 Yes 2021 Commercial Assessments recommends sealing & restriping the asphalt parking lot every 5 years. Repeating Item? Page 12 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued Reserve Category - Roofs Category Photograph with Reserve Items in the Category: Roofs Item Name Present Cost Remaining Expected Asphalt Shingle Roof Replacement - Cycle 1 $38,276.00 13 Yrs 20 Yrs Asphalt Shingle Roof Replacement - Cycle 2 $38,276.00 14 Yrs 20 Yrs Asphalt Shingle Roof Replacement - Cycle 3 $38,276.00 15 Yrs 20 Yrs First Expense 2026 2027 2028 First Expense Repeating Item? $58,224.08 $59,995.02 $61,819.82 The roofs have been divided into 3 equal cycles to allow the association the flexibility to decide which roofs to replace in each cycle. Page 13 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued Reserve Category - Septic Systems Category Photograph with Reserve Items in the Category: Septic Systems Item Name Septic System - Alarm Component & Pump Replacement for 2 Systems Cycle 1 Septic System - Alarm Component & Pump Replacement for 2 Systems Cycle 2 Septic System - Alarm Component & Pump Replacement for 2 Systems Cycle 3 Present Cost Remaining Expected First Expense First Expense Repeating Item? 2026 $3,000.00 13 Yrs 20 Yrs $4,563.49 $4,702.30 $4,845.32 2027 $3,000.00 14 Yrs 20 Yrs 2028 $3,000.00 15 Yrs 20 Yrs The septic systems are long lived items, however the pumps and alarm components will need to be replaced during this study period. Page 14 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Summary - Continued Reserve Category - Category Photograph with Reserve Items in the Category: Item Name Present Cost Remaining Expected First Expense First Expense Repeating Item? Exterior Pole Lights $8,000.00 22 Yrs 30 Yrs 2035 $15,936.00 Mailbox Clusters $2,600.00 18 Yrs 25 Yrs 2031 $4,594.23 Wood Retaining Walls Repair Allowance $1,000.00 1 Yr 2 Yrs $1,061.76 Yes Wood Retaining Walls Replacement Allowance $20,000.00 23 Yrs 30 Yrs $41,051.76 Page 15 of 24 Pages 2014 2036
Timberlake Crossing Condominium Unit Owners Association Reserve Study Expense Item Listing Reserve Items Unit Cost Units Current Cost When New Estimated Remaining Expected When New Calendar Estimated Future Cost Raw Annual Payment Exterior Surfaces Vinyl Siding Cycle 1 $4.00 / sqft 8920 sqft $35,680 28 s 35 s 2041 $85,073 $2,849.53 Vinyl Siding Cycle 2 $4.00 / sqft 8920 sqft $35,680 29 s 35 s 2042 $87,660 $2,835.46 Vinyl Siding Cycle 3 $4.00 / sqft 8920 sqft $35,680 30 s 35 s 2043 $90,326 $2,824.60 Exterior Stone Veneer - TuckPointing $4.00 / sqft 2200 sqft $8,800 25 s 30 s 2038 $19,178 $718.68 Exterior Wood Balcony $15.00 / sqft 4050 sqft $60,750 23 s 30 s 2036 $124,695 $5,072.35 Exterior Railings & Balusters $12.00 / lnft 552 lnft $6,624 23 s 30 s 2036 $13,596 $553.07 2018 $5,985 $991.57 2028 $8,076 $799.57 2038 $10,897 $1,078.91 2048 $14,704 $1,455.82 5 s Wood Steps Refurbishment Allowance $5,000 / lump sum 1 lump sum $5,000 10 s 10 s Gutters & Downspouts Cycle 1 $7.00 / lnft 833 lnft $5,831 28 s 35 s 2041 $13,903 $465.68 Gutters & Downspouts Cycle 2 $7.00 / lnft 833 lnft $5,831 29 s 35 s 2042 $14,326 $463.39 Gutters & Downspouts Cycle 3 $7.00 / lnft 833 lnft $5,831 30 s 35 s 2043 $14,762 $461.61 2016 $3,038 $756.57 2021 $3,529 $702.37 2026 $4,100 $815.88 2031 $4,762 $947.74 2036 $5,532 $1,100.91 2041 $6,426 $1,278.84 2046 $7,464 $1,485.52 Hardscape 3 s Asphalt Parking Area - Seal & Stripe $0.10 / sqft 26950 sqft $2,695 5 s 5 s Asphalt Parking Area - Mill & Overlay $2.40 / sqft 26950 sqft $64,680 25 s 30 s 2038 $140,960 $5,282.26 Concrete Walkways $11.00 / sqft 1832 sqft $20,152 8 s 10 s 2021 $26,390 $2,906.10 Page 16 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Reserve Study Expense Item Listing - Continued Reserve Items Concrete Walkways Stoops Steps & Patios - 20% Repair or Unit Cost $11.00 / sqft Units 1832 sqft Current Cost When New Estimated Remaining $20,152 10 s Expected When New 10 s Calendar Estimated Future Cost Raw Annual Payment 2031 $35,609 $3,525.68 2041 $48,049 $4,757.40 2051 $64,835 $6,419.41 Roofs Asphalt Shingle Roof Replacement Cycle 1 $4.00 / sqft 9569 sqft $38,276 13 s 20 s 2026 $58,224 $4,101.26 Asphalt Shingle Roof Replacement Cycle 2 $4.00 / sqft 9569 sqft $38,276 14 s 20 s 2027 $59,995 $3,940.31 Asphalt Shingle Roof Replacement Cycle 3 $4.00 / sqft 9569 sqft $38,276 15 s 20 s 2028 $61,820 $3,802.57 Septic Systems Septic System Alarm Component & Pump Replacement for 2 Systems Cycle 1 $3,000 / lump sum 1 lump sum $3,000 13 s 20 s 2026 $4,563 $321.45 Septic System Alarm Component & Pump Replacement for 2 Systems Cycle 2 $3,000 / lump sum 1 lump sum $3,000 14 s 20 s 2027 $4,702 $308.83 Septic System Alarm Component & Pump Replacement for 2 Systems Cycle 3 $3,000 / lump sum 1 lump sum $3,000 15 s 20 s 2028 $4,845 $298.04 22 s 30 s 2035 $15,936 $677.11 Exterior Pole Lights $1,000 / each 8 each $8,000 Page 17 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Reserve Study Expense Item Listing - Continued Reserve Items Unit Cost Units Current Cost When New Mailbox Clusters $1,300 / each 2 each $2,600 Estimated Remaining Expected When New Calendar 18 s 25 s 2031 $4,594 $237.26 2014 $1,062 $529.86 2016 $1,127 $562.58 2018 $1,197 $597.33 2020 $1,271 $634.22 2022 $1,349 $673.38 2024 $1,433 $714.97 2026 $1,521 $759.12 2028 $1,615 $806.01 2030 $1,715 $855.78 2032 $1,821 $908.63 2034 $1,933 $964.75 2036 $2,053 $1,024.33 2038 $2,179 $1,087.59 2040 $2,314 $1,154.75 2042 $2,457 $1,226.07 2036 $41,052 $1,669.91 1 Wood Retaining Walls - Repair Allowance Wood Retaining Walls Replacement Allowance $1,000 / lump sum $20,000 / lump sum 1 lump sum 1 lump sum $1,000 $20,000 2 23 s 2 s 30 s Raw Annual Payments do not include earned interest, tax adjustments or payments made with inital reserves. Months Remaining in Calendar 2013: 12 Expected annual inflation: 3.00% Interest earned on reserve funds: 0.20% Initial Reserve: $20,000 Page 18 of 24 Pages Estimated Future Cost Raw Annual Payment
Timberlake Crossing Condominium Unit Owners Association Funding Study Modified Cash Flow Analysis Calendar Annual Payment Annual Interest Annual Expenses 2013 $24,000 $62 2014 $25,200 $111 2015 $26,460 $161 2016 $27,783 $215 2017 $29,172 $264 2018 $30,631 $324 2019 $32,162 $373 2020 $33,770 $439 2021 $35,459 $506 2022 $37,232 $520 $1,349 2023 $594 2024 $673 2025 $749 2026 $828 2027 2028 2029 Annual Income Tax Net Reserve Funds % Funded $19 $44,043 20.5 % $33 $68,259 27.5 % $48 $94,832 33.9 % $65 $118,600 37.9 % $79 $147,957 43.2 % $97 $171,633 45.7 % $112 $204,056 50.7 % $1,271 $132 $236,863 54.3 % $29,919 $152 $242,758 51.8 % $156 $279,004 58.8 % $178 $318,513 62.6 % $202 $356,645 65.6 % $225 $396,263 68.6 % $68,408 $249 $367,528 59.9 % $771 $64,697 $231 $342,464 59.2 % $721 $76,356 $216 $305,706 56.3 % $647 $194 $345,253 70.0 % 2030 $726 $1,715 $218 $383,140 73.6 % 2031 $802 $44,965 $241 $377,829 69.2 % 2032 $792 $1,821 $237 $415,656 78.6 % 2033 $867 $260 $455,357 82.0 % 2034 $947 $1,933 $284 $493,180 84.5 % 2035 $1,022 $15,936 $307 $517,053 84.7 % 2036 $1,070 $186,927 $321 $369,968 59.4 % 2037 $776 $233 $409,604 89.5 % 2038 $855 $257 $276,082 57.5 % 2039 $588 $176 $315,587 97.3 % 2040 $667 $2,314 $200 $352,833 103.2 % 2041 $742 $153,450 $222 $238,996 66.9 % 2042 $514 $104,443 $154 $174,006 79.0 % $108,280 84.4 % 2043 Totals : $1,062 $4,165 $7,182 $1,433 $173,215 $384 $105,088 $115 $1,122,832 $18,709 $1,047,648 $5,613 The cash distribution shown in this table applies to repair and replacment 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 Calendar 2013: 12 Study = 30 years Inflation = 3.00 % Initial Reserve Funds = $20,000.00 Final Reserve Value = $108,280.22 Annual Payments Held Constant for 30 years Interest = 0.20 % Page 19 of 24 Pages
Timberlake Crossing Condominium Unit Owners Association Funding Study Cash Flow by Calendar - Continued Percent Funded Cash Reserves Expenses $0 Minimum Cash Reserve 110% 100% 420.0 80% 360.0 300.0 60% 240.0 40% 180.0 120.0 20% Calendar s Page 20 of 24 Pages 0% 2043 2038 2033 2028 2023 2018 0.0 2013 60.0 Percent Funded Cash Reserves in Thousands of Dollars 480.0
Timberlake Crossing Condominium Unit Owners Association Modified Reserve Dues Summary Projected Dues by Month and by Calendar Calendar Member Monthly Operations Payment Member Monthly Reserve Payment Member Total Monthly Payment Member Total Annual Payment Monthly Reserve Payment Annual Reserve Payment 2013 $83.33 $83.33 $1,000.00 $2,000 $24,000 2014 $87.50 $87.50 $1,050.00 $2,100 $25,200 2015 $91.88 $91.88 $1,102.50 $2,205 $26,460 2016 $96.47 $96.47 $1,157.63 $2,315 $27,783 2017 $101.29 $101.29 $1,215.51 $2,431 $29,172 2018 $106.36 $106.36 $1,276.28 $2,553 $30,631 2019 $111.67 $111.67 $1,340.10 $2,680 $32,162 2020 $117.26 $117.26 $1,407.10 $2,814 $33,770 2021 $123.12 $123.12 $1,477.46 $2,955 $35,459 2022 $129.28 $129.28 $1,551.33 $3,103 $37,232 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 Dues Summary has been modified with forced Fixed Payments. In the context of the Reserve Payment Summary, the ''Annual Reserve Payment'' corresponds with the ''Annual Revenue'' in the Cash Flow report. Number of Payment Months in Calendar 2013: 12 Number of s of Constant Payments: 30 of Dues Paying Members: 24 Page 21 of 24 Pages
Commercial Assessments (888) 225-3755 www.commercialassessments.com Annual Expense Summary Report Category Item Name Expense 2014 $1,062 2014 Annual Expense Total = $1,062 Hardscape Asphalt Parking Area - Seal & Stripe $3,038 $1,127 2016 2016 Annual Expense Total = $4,165 Exterior Surfaces Wood Steps - Refurbishment Allowance $5,985 $1,197 2018 2018 Annual Expense Total = $7,182 2020 $1,271 2020 Annual Expense Total = $1,271 Asphalt Parking Area - Seal & Stripe Hardscape 2021 Concrete Walkways Stoops Steps & Patios - 20% Repair or Replacement Allowance $3,529 $26,390 Hardscape Subtotal = $29,919.00 2021 Annual Expense Total = $29,919 2022 $1,349 2022 Annual Expense Total = $1,349 2024 $1,433 2024 Annual Expense Total = $1,433 2026 Hardscape Asphalt Parking Area - Seal & Stripe $4,100 Roofs Asphalt Shingle Roof Replacement - Cycle 1 $58,224 Septic Systems Septic System - Alarm Component & Pump Replacement for 2 Systems - Cycle 1 $4,563 $1,521 2026 Annual Expense Total = $68,408 2027 Roofs Asphalt Shingle Roof Replacement - Cycle 2 $59,995 Septic Systems Septic System - Alarm Component & Pump Replacement for 2 Systems - Cycle 2 $4,702 2027 Annual Expense Total = $64,697 Page 22 of 24 Pages
2028 Category Item Name Expense Exterior Surfaces Wood Steps - Refurbishment Allowance Roofs Asphalt Shingle Roof Replacement - Cycle 3 $61,820 Septic Systems Septic System - Alarm Component & Pump Replacement for 2 Systems - Cycle 3 $4,845 $1,615 $8,076 2028 Annual Expense Total = $76,356 2030 $1,715 2030 Annual Expense Total = $1,715 Asphalt Parking Area - Seal & Stripe Hardscape 2031 Concrete Walkways Stoops Steps & Patios - 20% Repair or Replacement Allowance $4,762 $35,609 Hardscape Subtotal = $40,371.00 Mailbox Clusters $4,594 2031 Annual Expense Total = $44,965 2032 $1,821 2032 Annual Expense Total = $1,821 2034 $1,933 2034 Annual Expense Total = $1,933 2035 Exterior Pole Lights $15,936 2035 Annual Expense Total = $15,936 Exterior Wood Balcony $124,695 Exterior Surfaces Exterior Railings & Balusters $13,596 Exterior Surfaces Subtotal = $138,291.00 2036 Hardscape Asphalt Parking Area - Seal & Stripe $5,532 $2,053 Wood Retaining Walls - Replacement Allowance $41,052 Subtotal = $43,105.00 2036 Annual Expense Total = $186,928 Exterior Stone Veneer - Tuck-Pointing $19,178 Wood Steps - Refurbishment Allowance $10,897 Exterior Surfaces 2038 Exterior Surfaces Subtotal = $30,075.00 Hardscape Asphalt Parking Area - Mill & Overlay $140,960 $2,179 2038 Annual Expense Total = $173,214 Page 23 of 24 Pages
Category Item Name Expense 2040 $2,314 2040 Annual Expense Total = $2,314 Vinyl Siding - Cycle 1 $85,073 Gutters & Downspouts - Cycle 1 $13,903 Exterior Surfaces Exterior Surfaces Subtotal = $98,976.00 2041 Asphalt Parking Area - Seal & Stripe Hardscape Concrete Walkways Stoops Steps & Patios - 20% Repair or Replacement Allowance $6,426 $48,049 Hardscape Subtotal = $54,475.00 2041 Annual Expense Total = $153,451 Vinyl Siding - Cycle 2 $87,660 Gutters & Downspouts - Cycle 2 $14,326 Exterior Surfaces 2042 Exterior Surfaces Subtotal = $101,986.00 $2,457 2042 Annual Expense Total = $104,443 Vinyl Siding - Cycle 3 $90,326 Gutters & Downspouts - Cycle 3 $14,762 Exterior Surfaces 2043 Exterior Surfaces Subtotal = $105,088.00 2043 Annual Expense Total = $105,088 Page 24 of 24 Pages