table of contents - Parker Brown Realestate

Transcription

TABLE OF CONTENTS
Cambria Condominiums
PART I • INFORMATION ABOUT YOUR RESERVE STUDY
Important Information
1-1
Introduction
1-2
Funding Options
1-2
Types of Reserve Studies
1-3
Developing a Component List
1-3
Operational Expenses
1-4
Reserve Expenses
1-4
Funding Methods
1-5
Funding Strategies
1-6
Distribution of Reserves
1-7
User’s Guide to Your Reserve Study
1-9
Definitions
1-9
Your Reserve Study is a Multi-Purpose Tool
1-13
PART II • RESERVE STUDY
Current Assessment Funding Model Summary
2-1
Current Assessment Funding Model Projection
2-2
Current Assessment Funding Model VS Fully Funded Chart
2-3
Threshold Funding Model Summary
2-4
Threshold Funding Model Projection
2-5
Threshold Funding Model VS Fully Funded Chart
2-6
Component Funding Model Summary
2-7
Component Funding Model Projection
2-8
Component Funding Model VS Fully Funded Chart
2-9
Component Funding Model Assessment & Category Summary
2-10
Distribution of Accumulated Reserves
2-12
Annual Expenditure Detail
2-14
Detail Report by Category
2-19
Category Detail Index
2-47
Annual Expenditure Chart
2-49
Funding Model Reserve Ending Balance Comparison Chart
2-50
Funding Model Comparison by Percent Funded
2-51
TABLE OF CONTENTS
Funding Model Assessment Comparison Chart
2-52
Spread Sheet
2-53
Important Information
This document has been provided pursuant to an agreement containing restrictions on its use. No part of
this document may be copied or distributed, in any form or by any means, nor disclosed to third parties
without the expressed written permission of Home Certs. The client shall have the right to reproduce
and distribute copies of this report, or the information contained within, as may be required for
compliance with all applicable regulations.
This reserve analysis study and the parameters under which it has been completed are based upon
information provided to us in part by representatives of the association, its contractors, assorted vendors,
specialist and independent contractors, the Community Association Institute, and various construction
pricing and scheduling manuals including, but not limited to: Marshall & Swift Valuation Service, RS
Means Facilities Maintenance & Repair Cost Data, RS Means Repair & Remodeling Cost Data, National
Construction Estimator, National Repair & Remodel Estimator, Dodge Cost Manual and McGraw-Hill
Professional. Additionally, costs are obtained from numerous vendor catalogues, actual quotations or
historical costs, and our own experience in the field of property management and reserve study
preparation.
It has been assumed, unless otherwise noted in this report, that all assets have been designed and
constructed properly and that each estimated useful life will approximate that of the norm per industry
standards and/or manufacturer’s specifications. In some cases, estimates may have been used on assets,
which have an indeterminable but potential liability to the association. The decision for the inclusion of
these as well as all assets considered is left to the client.
We recommend that your reserve analysis study be updated on an annual basis due to fluctuating interest
rates, inflationary changes, and the unpredictable nature of the lives of many of the assets under
consideration. All of the information collected during our inspection of the association and
computations made subsequently in preparing this reserve analysis study are retained in our computer
files. Therefore, annual updates may be completed quickly and inexpensively each year.
Home Certs would like to thank you for using our services. We invite you to call us at any time, should
you have questions, comments or need assistance. In addition, any of the parameters and estimates used
in this study may be changed at your request, after which we will provide a revised study.
This reserve analysis study is provided as an aid for planning purposes and not as an accounting tool.
Since it deals with events yet to take place, there is no assurance that the results enumerated within it
will, in fact, occur as described.
Home Certs Inc •800.683.5528
PAGE 1-1
Part I
Introduction
Preparing the annual budget and overseeing the association’s finances are perhaps the most important
responsibilities of board members. The annual operating and reserve budgets reflect the planning and
goals of the association and set the level and quality of service for all of the association’s activities.
Funding Options
When a major repair or replacement is required in a community, an association has essentially four
options available to address the expenditure:
The first, and only logical means that the Board of Directors has to ensure its ability to maintain the
assets for which it is obligated, is by assessing an adequate level of reserves as part of the regular
membership assessment, thereby distributing the cost of the replacements uniformly over the entire
membership. The community is not only comprised of present members, but also future members. Any
decision by the Board of Directors to adopt a calculation method or funding plan which would
disproportionately burden future members in order to make up for past reserve deficits, would be a
breach of its fiduciary responsibility to those future members. Unlike individuals determining their own
course of action, the board is responsible to the “community” as a whole.
Whereas, if the association was setting aside reserves for this purpose, using the vehicle of the regularly
assessed membership dues, it would have had the full term of the life of the roof, for example, to
accumulate the necessary moneys. Additionally, those contributions would have been evenly distributed
over the entire membership and would have earned interest as part of that contribution.
The second option is for the association to acquire a loan from a lending institution in order to effect
the required repairs. In many cases, banks will lend to an association using “future homeowner
assessments” as collateral for the loan. With this method, the current board is pledging the future assets
of an association. They are also incurring the additional expense of interest fees along with the original
principal amount. In the case of a $150,000 roofing replacement, the association may be required to pay
back the loan over a three to five year period, with interest.
The third option, too often used, is simply to defer the required repair or replacement. This option,
which is not recommended, can create an environment of declining property values due to expanding
lists of deferred maintenance items and the association’s financial inability to keep pace with the normal
aging process of the common area components. This, in turn, can have a seriously negative impact on
sellers in the association by making it difficult, or even impossible, for potential buyers to obtain
financing from lenders. Increasingly, lending institutions are requesting copies of the association’s most
recent reserve study before granting loans, either for the association itself, a prospective purchaser, or for
an individual within such an association.
The fourth option is to pass a “special assessment” to the membership in an amount required to cover
the expenditure. When a special assessment is passed, the association has the authority and
responsibility to collect the assessments, even by means of foreclosure, if necessary. However, an
association considering a special assessment cannot guarantee that an assessment, when needed, will be
passed. Consequently, the association cannot guarantee its ability to perform the required repairs or
replacements to those major components for which it is obligated when the need arises. Additionally,
while relatively new communities require very little in the way of major “reserve” expenditures,
associations reaching 12 to 15 years of age and older, find many components reaching the end of their
effective useful lives. These required expenditures, all accruing at the same time, could be devastating
to an association’s overall budget.
PAGE 1-2
Types of Reserve Studies
Most reserve studies fit into one of three categories:
Full Reserve Study;
Update with site inspection; and
Update without site inspection.
In a Full Reserve Study, the reserve provider conducts a component inventory, a condition assessment
(based upon on-site visual observations), and life and valuation estimates to determine both a “fund
status” and “funding plan”.
In an Update with site inspection, the reserve provider conducts a component inventory (verification
only, not quantification unless new components have been added to the inventory), a condition
assessment (based upon on-site visual observations), and life and valuation estimates to determine both
the “fund status and “funding plan.”
In an Update without site inspection, the reserve provider conducts life and valuation estimates to
determine the “fund status” and “funding plan.”
The Reserve Study: A Physical and a Financial Analysis
There are two components of a reserve study: a physical analysis and a financial analysis.
Physical Analysis
During the physical analysis, a reserve study provider evaluates information regarding the physical status
and repair/replacement cost of the association’s major common area components. To do so, the provider
conducts a component inventory, a condition assessment, and life and valuation estimates.
Developing a Component List
The budget process begins with full inventory of all the major components for which the association is
responsible. The determination of whether an expense should be labeled as operational, reserve, or
excluded altogether is sometimes subjective. Since this labeling may have a major impact on the
financial plans of the association, subjective determinations should be minimized. We suggest the
following considerations when labeling an expense.
PAGE 1-3
Operational Expenses
Occur at least annually, no matter how large the expense, and can be budgeted for effectively each year.
They are characterized as being reasonably predictable, both in terms of frequency and cost. Operational
expenses include all minor expenses, which would not otherwise adversely affect an operational budget
from one year to the next. Examples of operational expenses include:
Utilities:
Electricity
Gas
Water
Telephone
Cable TV
Administrative:
Supplies
Bank Service Charges
Dues & Publications
Licenses, Permits & Fees
Insurance(s)
Services:
Landscaping
Pool Maintenance
Street Sweeping
Accounting
Reserve Study
Repair Expenses:
Tile Roof Repairs
Equipment Repairs
Minor Concrete Repairs
Operating Contingency
Reserve Expenses
These are major expenses that occur other than annually, and which must be budgeted for in advance in
order to ensure the availability of the necessary funds in time for their use. Reserve expenses are
reasonably predictable both in terms of frequency and cost. However, they may include significant
assets that have an indeterminable but potential liability that may be demonstrated as a likely occurrence.
They are expenses that, when incurred, would have a significant effect on the smooth operation of the
budgetary process from one year to the next, if they were not reserved for in advance. Examples of
reserve expenses include:
Roof Replacements
Park/Play Equipment
Painting
Pool/Spa Re-plastering
Deck Resurfacing
Pool Equipment Replacement
Fencing Replacement
Pool Furniture Replacement
Asphalt Seal Coating
Tennis Court Resurfacing
Asphalt Repairs
Lighting Replacement
Asphalt Overlays
Insurance(s)
Equipment Replacement
Reserve Study
Interior Furnishings
Budgeting is Normally Excluded for:
Repairs or replacements of assets which are deemed to have an estimated useful life equal to or
exceeding the estimated useful life of the facility or community itself, or exceeding the legal life of the
community as defined in an association’s governing documents. Examples include the complete
replacement of elevators, tile roofs, wiring and plumbing. Also excluded are insignificant expenses that
may be covered either by an operating or reserve contingency, or otherwise in a general maintenance
fund. Expenses that are necessitated by acts of nature, accidents or other occurrences that are more
properly insured for, rather than reserved for, are also excluded.
Financial Analysis
PAGE 1-4
The financial analysis assesses the association’s reserve balance or “fund status” (measured in cash or as
percent fully funded) to determine a recommendation for the appropriate reserve contribution rate in the
future, known as the “funding plan”.
Preparing the Reserve Study
Once the reserve assets have been identified and quantified, their respective replacement costs, useful
lives and remaining lives must be assigned so that a funding schedule can be constructed. Replacement
costs and useful lives can be found in published manuals such as construction estimators, appraisal
handbooks, and valuation guides. Remaining lives are calculated from the useful lives and ages of assets
and adjusted according to conditions such as design, manufactured quality, usage, exposure to the
elements and maintenance history.
By following the recommendations of an effective reserve study, the association should avoid any major
shortfalls. However, to remain accurate, the report should be updated on an annual basis to reflect such
changes as shifts in economic parameters, additions of phases or assets, or expenditures of reserve funds.
The association can assist in simplifying the reserve analysis update process by keeping accurate records
of these changes throughout the year.
Funding Methods
From the simplest to the most complex, reserve analysis providers use many different computational
processes to calculate reserve requirements. However, there are two basic processes identified as
industry standards: the cash flow method and the component method.
The cash flow method develops a reserve-funding plan where contributions to the reserve fund are
designed to offset the variable annual expenditures from the reserve fund. Different reserve funding
plans are tested against the actual anticipated schedule of reserve expenses until the desired funding goal
is achieved. This method sets up a “window” in which all future anticipated replacement costs are
computed, based upon the individual lives of the components under consideration. The Home Certs
Threshold and the Home Certs Current Assessment funding models are based upon the cash flow
method.
The component method develops a reserve-funding plan where the total contribution is based upon the
sum of contributions for individual components. The component method is the more conservative of the
two funding options, and assures that the association will achieve and maintain an ideal level of reserve
over time. This method also allows for computations on individual components in the analysis. The
Home Certs Component Funding model is based upon the component methodology.
PAGE 1-5
Funding Strategies
Once an association has established its funding goals, the association can select an appropriate funding
plan. There are four basic strategies from which most associations select. It is recommended that
associations consult professionals to determine the best strategy or combination of plans that best suit
the association’s need. Additionally, associations should consult with their financial advisor to
determine the tax implications of selecting a particular plan. Further, consultation with the American
Institute of Certified Public Accountants (AICPA) for their reporting requirements is advisable. The
four funding plans and descriptions of each are detailed below. Associations will have to update their
reserve studies more or less frequently depending on the funding strategy they select.
Full Funding---Given that the basis of funding for reserves is to distribute the costs of the replacements
over the lives of the components in question, it follows that the ideal level of reserves would be
proportionately related to those lives and costs. If an association has a component with an expected
estimated useful life of ten years, it would set aside approximately one-tenth of the replacement cost
each year. At the end of three years, one would expect three-tenths of the replacement cost to have
accumulated, and if so, that component would be “fully-funded.” This model is important in that it is a
measure of the adequacy of an association’s reserves at any one point of time, and is independent of any
particular method which may have been used for past funding or may be under consideration for future
funding. This formula represents a snapshot in time and is based upon current replacement cost,
independent of future inflationary or investment factors:
Fully Funded Reserves = Age divided by Useful Life the results multiplied by Current Replacement
Cost
When an association’s total accumulated reserves for all components meet this criterion, its reserves are
considered “fully-funded.”
The Home Certs Threshold Funding Model (Minimum Funding). The goal of this funding method is
to keep the reserve cash balance above zero. This means that while each individual component may not
be fully funded, the reserve balance overall does not drop below zero during the projected period. An
association using this funding method must understand that even a minor reduction in a component’s
remaining useful life can result in a deficit in the reserve cash balance.
The Home Certs Threshold Funding Model. This method is based upon the cash flow funding
concept. The minimum reserve cash balance in threshold funding, however, is set at a predetermined
dollar amount (other than $0).
The Home Certs Current Assessment Funding Model. This method is also based upon the cash flow
funding concept. The initial reserve assessment is set at the association’s current fiscal year funding
level and a 30-year projection is calculated to illustrate the adequacy of the current funding over time.
The Home Certs Component Funding Model. This is a straight-line funding model. It distributes the
cash reserves to individual reserve components and then calculates what the reserve assessment and
interest contribution (minus taxes) should be, again by each reserve component. The current annual
assessment is then determined by summing all the individual component assessments, hence the name
“Component Funding Model”. This is the most conservative funding model. It leads to or maintains the
fully funded reserve position. The following details this calculation process.
Component Funding Model Distribution of Accumulated Reserves
The “Distribution of Accumulated Reserves Report” is a “Component Funding Model” calculation. This
distribution does not apply to the cash flow funding models.
When calculating reserves based upon the component methodology, a beginning reserve balance must be
PAGE 1-6
allocated for each of the individual components considered in the analysis, before the individual
calculations can be completed. When this distribution is not available, or of sufficient detail, the
following method is suggested for allocating reserves:
The first step the program performs in this process is subtracting, from the total accumulated reserves,
any amounts for assets that have predetermined (fixed) reserve balances. The user can “fix” the
accumulated reserve balance within the program on the individual asset’s detail page. If, by error, these
amounts total more than the amount of funds available, then the remaining assets are adjusted
accordingly. A provision for a contingency reserve is then deducted by the determined percentage used,
and if there are sufficient remaining funds available.
The second step is to identify the ideal level of reserves for each asset. As indicated in the prior section,
this is accomplished by evaluating the component’s age proportionate to its estimated useful life and
current replacement cost. Again, the equation used is as follows:
Fully Funded Reserves = (Age/Useful Life) x Current Replacement Cost
The
Reserve Analyst© software program performs the above calculations to the actual month the
component was placed-in-service. The program projects that the accumulation of necessary reserves for
repairs or replacements will be available on the first day of the fiscal year in which they are scheduled to
occur.
The next step the program performs is to arrange all of the assets used in the study in ascending order by
remaining life, and alphabetically within each grouping of remaining life items. These assets are then
assigned their respective ideal level of reserves until the amount of funds available is depleted, or until
all assets are appropriately funded. If any assets are assigned a zero remaining life (scheduled for
replacement in the current fiscal year), then the amount assigned equals the current replacement cost and
funding begins for the next cycle of replacement. If there are insufficient funds available to accomplish
this, then the software automatically adjusts the zero remaining life items to one year, and that asset
assumes its new grouping position alphabetically in the final printed report.
If, at the completion of this task, there are additional moneys that have not been distributed, the
remaining reserves are then assigned, in ascending order, to a level equal to, but not exceeding, the
current replacement cost for each component. If there are sufficient moneys available to fund all assets
at their current replacement cost levels, then any excess funds are designated as such and are not factored
into any of the report computations. If, at the end of this assignment process there are designated excess
funds, they can be used to offset the monthly contribution requirements recommended, or used in any
other manner the client may desire.
Assigning the reserves in this manner defers the make-up period for any under-funding over the longest
remaining life of all assets under consideration, thereby minimizing the impact of any deficiency. For
example, if the report indicates an under funding of $50,000, this under-funding will be assigned to
components with the longest remaining lives in order to give more time to “replenish” the account. If
the $50,000 under-funding were to be assigned to short remaining life items, the impact would be felt
immediately.
If the reserves are under-funded, the monthly contribution requirements, as outlined in this report, can be
expected to be higher than normal. In future years, as individual assets are replaced, the funding
requirements will return to their normal levels. In the case of a large deficiency, a special assessment
may be considered. The program can easily generate revised reports outlining how the monthly
contributions would be affected by such an adjustment, or by any other changes that may be under
consideration.
PAGE 1-7
Funding Reserves
Three assessment and contribution figures are provided in the report, the “Monthly Reserve Assessment
Required”, the “Average Net Monthly Interest Earned” contribution and the “Total Monthly Allocation
to Reserves.” The association should allocate the “Monthly Reserve Assessment Required” amount to
reserves each month when the interest earned on the reserves is left in the reserve accounts as part of the
contribution. Any interest earned on reserve deposits, must be left in reserves and only amounts set
aside for taxes should be removed.
The second alternative is to allocate the “Total Monthly Allocation” to reserves (this is the member
assessment plus the anticipated interest earned for the fiscal year). This method assumes that all interest
earned will be assigned directly as operating income. This allocation takes into consideration the
anticipated interest earned on accumulated reserves regardless of whether or not it is actually earned.
When taxes are paid, the amount due will be taken directly from the association’s operating accounts as
the reserve accounts are allocated only those moneys net of taxes.
Users’ Guide to your Home Certs Study
Part II of your Home Certs Report contains the reserve analysis study for your association. There are
seven types of reports in the study as described below.
Report Summaries
The Report Summary for all funding models lists all of the parameters that were used in calculating the
report as well as the summary of your reserve analysis study.
Index Reports
The Distribution of Accumulated Reserves report lists all assets in remaining life order. It also
identifies the ideal level of reserves that should have accumulated for the association as well as the
actual reserves available. This information is valid only for the “Component Funding Model”
calculation.
PAGE 1-8
The Component Listing/Summary lists all assets by category (i.e. roofing, painting, lighting, etc.)
together with their remaining life, current cost, monthly reserve contribution, and net monthly allocation.
Detail Reports
The Detail Report itemizes each asset and lists all measurements, current and future costs, and
calculations for that asset. Provisions for percentage replacements, salvage values, and one-time
replacements can also be utilized. These reports can be sorted by category or group.
The numerical listings for each asset are enhanced by extensive narrative detailing factors such as
design, manufactured quality, usage, exposure to elements and maintenance history.
The Home Certs Detail Index is an alphabetical listing of all assets, together with the page number of the
asset’s detail report, the projected replacement year, and the asset number.
Projections
Thirty-year projections add to the usefulness of your reserve analysis study.
Definitions
Report I.D.
Includes the Report Date (example: November 15, 1992), Account Number (example: 9773), and
Version (example: 1.0). Please use this information (displayed on the summary page) when referencing
your report.
Budget Year Beginning/Ending
The budgetary year for which the report is prepared. For associations with fiscal years ending December
31st, the monthly contribution figures indicated are for the 12-month period beginning 1/1/20xx and
ending 12/31/20xx.
Number of Units and/or Phases
If applicable, the number of units and/or phases included in this version of the report.
Inflation
This figure is used to approximate the future cost to repair or replace each component in the report. The
current cost for each component is compounded on an annual basis by the number of remaining years to
replacement, and the total is used in calculating the monthly reserve contribution that will be necessary
to accumulate the required funds in time for replacement.
Annual Assessment Increase
This represents the percentage rate at which the association will increase its assessment to reserves at the
end of each year. For example, in order to accumulate $10,000 in 10 years, you could set aside $1,000
per year. As an alternative, you could set aside $795 the first year and increase that amount by 5% each
year until the year of replacement. In either case you arrive at the same amount. The idea is that you
start setting aside a lower amount and increase that number each year in accordance with the planned
percentage. Ideally this figure should be equal to the rate of inflation. It can, however, be used to aide
those associations that have not set aside appropriate reserves in the past, by making the initial year’s
allocation less formidable.
PAGE 1-9
Investment Yield Before Taxes
The average interest rate anticipated by the association based upon its current investment practices.
Taxes on Interest Yield
The estimated percentage of interest income that will be set aside to pay income taxes on the interest
earned.
Projected Reserve Balance
The anticipated reserve balance on the first day of the fiscal year for which this report has been prepared.
This is based upon information provided and not audited.
Percent Fully Funded
The ratio, at the beginning of the fiscal year, of the actual (or projected) reserve balance to the calculated
fully funded balance, expressed as a percentage.
Phase Increment Detail and/or Age
Comments regarding aging of the components on the basis of construction date or date of acceptance by
the association.
Monthly Assessment
The assessment to reserves required by the association each month.
Interest Contribution (After Taxes)
The interest that should be earned on the reserves, net of taxes, based upon their beginning reserve
balance and monthly contributions for one year. This figure is averaged for budgeting purposes.
Total Monthly Allocation
The sum of the monthly assessment and interest contribution figures.
Group and Category
The report may be prepared and sorted either by group (location, building, phase, etc.) or by category
(roofing, painting, etc.). The standard report printing format is by category.
Percentage of Replacement or Repairs
In some cases, an asset may not be replaced in its entirety or the cost may be shared with a second party.
Examples are budgeting for a percentage of replacement of streets over a period of time, or sharing the
expense to replace a common wall with a neighboring party.
Placed-In-Service Date
The month and year that the asset was placed-in-service. This may be the construction date, the first
escrow closure date in a given phase, or the date of the last servicing or replacement.
Estimated Useful Life
The estimated useful life of an asset based upon industry standards, manufacturer specifications, visual
inspection, location, usage, association standards and prior history. All of these factors are taken into
consideration when tailoring the estimated useful life to the particular asset. For example, the carpeting
in a hallway or elevator (a heavy traffic area) will not have the same life as the identical carpeting in a
seldom-used meeting room or office.
Adjustment to Useful Life
Once the useful life is determined, it may be adjusted, up or down, by this separate figure for the current
cycle of replacement. This will allow for a current period adjustment without affecting the estimated
replacement cycles for future replacements.
Estimated Remaining Life
This calculation is completed internally based upon the report’s fiscal year date and the date the asset
PAGE 1-10
was placed-in-service.
Replacement Year
The year that the asset is scheduled to be replaced. The appropriate funds will be available by the first
day of the fiscal year for which replacement is anticipated.
Annual Fixed Reserves
An optional figure which, if used, will override the normal process of allocating reserves to each asset.
Fixed Assessment
An optional figure which, if used, will override all calculations and set the assessment at this amount.
This assessment can be set for monthly, quarterly or annually as necessary.
Salvage Value
The salvage value of the asset at the time of replacement, if applicable.
One-Time Replacement
Notation if the asset is to be replaced on a one-time basis.
Current Replacement Cost
The estimated replacement cost effective at the beginning of the fiscal year for which the report is being
prepared
Future Replacement Cost
The estimated cost to repair or replace the asset at the end of its estimated useful life based upon the
current replacement cost and inflation.
Component Inventory
The task of selecting and qualifying reserve components. This task can be accomplished through on-site
visual, review of association design and organizational documents, a review of established association
precedents, and discussion with appropriate association representative(s).
PAGE 1-11
A Multi-Purpose Tool
Your Home Certs Report is an important part of your association’s budgetary process. Following its
recommendations should ensure the association’s smooth budgetary transitions from one fiscal year to
the next, and either decrease or eliminate the need for “special assessments”.
In addition, your Home Certs reserve study serves a variety of useful purposes:
•
Following the recommendations of a reserve study performed by a professional consultant can
protect the Board of Directors in a community from personal liability concerning reserve
components and reserve funding.
•
A reserve analysis study is required by your accountant during the preparation of the
association’s annual audit.
•
The Home Certs reserve study is often requested by lending institutions during the process of
loan applications, both for the community and, in many cases, the individual owners.
•
Your Home Certs Report is also a detailed inventory of the association’s major assets and serves
as a management tool for scheduling, coordinating and planning future repairs and replacements.
•
Your Home Certs Report is a tool that can assist the Board in fulfilling its legal and fiduciary
obligations for maintaining the community in a state of good repair. If a community is operating
on a special assessment basis, it cannot guarantee that an assessment, when needed, will be
passed. Therefore, it cannot guarantee its ability to perform the required repairs or replacements
to those major components for which the association is obligated.
•
Since the Home Certs reserve analysis study includes measurements and cost estimates of the
client’s assets, the detail reports may be used to evaluate the accuracy and price of contractor bids
when assets are due to be repaired or replaced.
•
The Home Certs reserve study is an annual disclosure to the membership concerning the financial
condition of the association, and may be used as a “consumers’ guide” by prospective purchasers.
•
The Home Certs Owners’ Summary meets the disclosure requirements of the California Civil
Code and also the recently adopted ECHO standards.
•
Your Home Certs Report provides a record of the time, cost, and quantities of past reserve
replacements. At times the association’s management company and board of directors are
transitory which may result in the loss of these important records.
PAGE 1-12
Pleasant Grove, Utah
HC Current Assessment Funding Model Summary
Report Parameters
Report Date
Account Number
April 24, 2012
1060
Budget Year Beginning
Budget Year Ending
April 23, 2012
April 22, 2013
Total Units
Phase Development
303
36 of 36
Inflation
Interest Rate on Reserve Deposit
Tax Rate on Interest
Contingency
2012 Beginning Balance
3.00%
3.00%
0.05%
0.00%
3.00%
$70,000.00
Current Assessment Funding Model Summary of Calculations
Required Monthly Contribution
$5.50 per unit monthly
Average Net Monthly Interest Earned
Total Monthly Allocation to Reserves
$1,666.67
$3.37
$1,670.04
PAGE 2-1
HC Current Assessment Funding Model Projection
Beginning Balance: $70,000
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
Current
Cost
1,720,150
1,771,754
1,824,907
1,879,654
1,936,044
1,994,125
2,053,949
2,115,567
2,179,034
2,244,405
2,311,737
2,381,089
2,452,522
2,526,098
2,601,881
2,679,937
2,760,335
2,843,145
2,928,440
3,016,293
3,106,782
3,199,985
3,295,985
3,394,864
3,496,710
3,601,611
3,709,660
3,820,950
3,935,578
4,053,645
Annual
Contribution
20,000
20,600
21,218
21,855
22,510
23,185
23,881
24,597
25,335
26,095
26,878
27,685
28,515
29,371
30,252
31,159
32,094
33,057
34,049
35,070
36,122
37,206
38,322
39,472
40,656
41,876
43,132
44,426
45,759
47,131
Annual
Annual
Interest Expenditures
40
40
35
46
57
49
17
3
6
18
31
45
44
38
22
21,681
30,181
40,093
85,912
53,561
36,037
7,173
4,466
30,913
43,030
63,051
115,459
24,793
59,703
301,052
172,225
2,367,904
216,518
33,319
12,956
PAGE 2-2
Projected
Ending
Reserves
90,040
88,999
80,071
101,972
124,539
107,680
45,666
16,705
6,003
24,932
47,362
75,078
103,638
102,141
89,400
57,530
-25,835
-17,570
16,479
-8,154
-273,084
-235,878
-369,781
-330,309
-289,653
-2,615,681
-2,789,067
-2,777,961
-2,732,202
-2,698,026
Fully
Funded Percent
Reserves Funded
457,752
518,481
575,092
666,680
763,246
823,672
841,041
963,456
1,041,710
1,154,874
1,276,903
1,409,957
1,549,845
1,664,988
1,774,109
1,868,970
1,915,847
2,152,845
2,333,957
2,462,449
2,349,583
2,547,402
2,577,950
2,790,916
3,014,341
807,521
756,737
1,021,313
1,209,183
1,394,049
19%
17%
13%
15%
16%
13%
5%
1%
0%
2%
3%
5%
6%
6%
5%
3%
-1%
0%
0%
0%
-11%
-9%
-14%
-11%
-9%
-323%
-368%
-271%
-225%
-193%
HC Current Assessment Funding Model VS Fully Funded Chart
The Current Assessment Funding Model is based on the current annual assessment, parameters, and reserve
fund balance. Because it is calculated using the current annual assessment, it will give the accurate projection of
how well the association is funded for the next 30 years of planned reserve expenditures.
PAGE 2-3
HC Threshold Funding Model Summary
Report Parameters
Report Date
Account Number
April 24, 2012
1060
Budget Year Ending
April 23, 2012
April 22, 2013
Total Units
Phase Development
303
36 of 36
Inflation
Contingency
3.00%
3.00%
0.05%
0.00%
3.00%
$70,000.00
Threshold Funding Model Summary of Calculations
$7,758.36
$5.02
$7,763.38
PAGE 2-4
HC Threshold Funding Model Projection
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
Current
Cost
1,720,150
1,771,754
1,824,907
1,879,654
1,936,044
1,994,125
2,053,949
2,115,567
2,179,034
2,244,405
2,311,737
2,381,089
2,452,522
2,526,098
2,601,881
2,679,937
2,760,335
2,843,145
2,928,440
3,016,293
3,106,782
3,199,985
3,295,985
3,394,864
3,496,710
3,601,611
3,709,660
3,820,950
3,935,578
4,053,645
Annual
Contribution
93,100
95,893
98,770
101,733
104,785
107,929
111,167
114,502
117,937
121,475
125,119
128,873
132,739
136,721
140,823
145,047
149,399
153,881
158,497
163,252
168,150
173,194
178,390
183,742
189,254
194,931
200,779
206,803
213,007
219,397
Annual
Annual
60
97
130
181
232
266
278
308
348
405
464
528
594
646
694
735
751
815
894
945
878
964
966
1,057
1,151
64
54
140
245
347
21,681
30,181
40,093
85,912
53,561
36,037
7,173
4,466
30,913
43,030
63,051
115,459
24,793
59,703
301,052
172,225
2,367,904
216,518
33,319
12,956
PAGE 2-5
Projected
Ending
Reserves
163,161
237,469
306,189
408,103
513,121
581,222
606,754
668,003
750,250
864,957
986,074
1,115,475
1,248,807
1,355,262
1,453,749
1,536,480
1,571,171
1,701,074
1,860,465
1,964,959
1,832,934
2,007,092
2,014,223
2,199,022
2,389,426
216,518
200,834
374,457
587,709
794,497
Fully
Funded Percent
Reserves Funded
457,752
518,481
575,092
666,680
763,246
823,672
841,041
963,456
1,041,710
1,154,874
1,276,903
1,409,957
1,549,845
1,664,988
1,774,109
1,868,970
1,915,847
2,152,845
2,333,957
2,462,449
2,349,583
2,547,402
2,577,950
2,790,916
3,014,341
807,521
756,737
1,021,313
1,209,183
1,394,049
35%
45%
53%
61%
67%
70%
72%
69%
72%
74%
77%
79%
80%
81%
81%
82%
82%
79%
79%
79%
78%
78%
78%
78%
79%
26%
26%
36%
48%
56%
HC Threshold Funding Model VS Fully Funded Chart
The Threshold Funding Model calculates the minimum reserve assessments, with the restriction that the
reserve balance is not allowed to go below $0 or other predetermined threshold, during the period of time
examined. All funds for planned reserve expenditures will be available on the first day of each fiscal year. The
Threshold Funding Model allows the client to choose the level of conservative funding they desire by
choosing the threshold dollar amount.
PAGE 2-6
HC Component Funding Model Summary
Report Parameters
Report Date
Account Number
April 24, 2012
1060
Inflation
3.00%
Budget Year Ending
April 23, 2012
April 22, 2013
Contingency
0.05%
0.00%
3.00%
Total Units
Phase Development
303
36 of 36
$70,000.00
Component Funding Model Summary of Calculations
$12,601.93
$6.33
$12,608.26
PAGE 2-7
HC Component Funding Model Projection
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
Current
Cost
1,720,150
1,771,754
1,824,907
1,879,654
1,936,044
1,994,125
2,053,949
2,115,567
2,179,034
2,244,405
2,311,737
2,381,089
2,452,522
2,526,098
2,601,881
2,679,937
2,760,335
2,843,145
2,928,440
3,016,293
3,106,782
3,199,985
3,295,985
3,394,864
3,496,710
3,601,611
3,709,660
3,820,950
3,935,578
4,053,645
Annual
Contribution
151,223
145,528
146,514
147,685
149,502
151,951
144,296
148,792
150,735
147,107
145,944
145,133
144,501
149,273
154,138
157,280
169,396
172,255
174,505
183,730
205,929
203,588
211,883
205,168
194,682
271,356
271,364
263,445
256,578
256,964
Annual
Annual
76
139
197
271
345
401
432
479
536
607
679
752
824
883
938
985
1,009
1,083
1,170
1,231
1,179
1,282
1,300
1,405
1,506
440
468
585
715
837
21,681
30,181
40,093
85,912
53,561
36,037
7,173
4,466
30,913
43,030
63,051
115,459
24,793
59,703
301,052
172,225
2,367,904
216,518
33,319
12,956
PAGE 2-8
Projected
Ending
Reserves
221,299
345,285
461,815
609,771
759,619
871,877
930,693
1,026,403
1,141,637
1,282,178
1,424,334
1,570,219
1,715,544
1,834,787
1,946,833
2,042,046
2,096,993
2,245,539
2,421,214
2,546,473
2,452,528
2,657,398
2,698,356
2,904,929
3,101,117
1,005,010
1,060,324
1,291,034
1,548,328
1,793,174
Fully
Funded Percent
Reserves Funded
457,752
518,481
575,092
666,680
763,246
823,672
841,041
963,456
1,041,710
1,154,874
1,276,903
1,409,957
1,549,845
1,664,988
1,774,109
1,868,970
1,915,847
2,152,845
2,333,957
2,462,449
2,349,583
2,547,402
2,577,950
2,790,916
3,014,341
807,521
756,737
1,021,313
1,209,183
1,394,049
48%
66%
80%
91%
99%
105%
110%
106%
109%
111%
111%
111%
110%
110%
109%
109%
109%
104%
103%
103%
104%
104%
104%
104%
102%
124%
140%
126%
128%
128%
HC Component Funding Model VS Fully Funded Chart
The Component Funding Model’s long-term objective is to provide a plan to a fully funded reserve position
over the longest period of time practical. This is the most conservative funding model.
PAGE 2-9
Fu
ll
Fu y
nd
ed
As
s
Re igned
ser
ve
s
Cu
r
Co rent
st
en
t
Re
ma
L i i ni
fe n g
Us
e
L i f ul
fe
Ad
j us
tm
Description
Re
p
Ye lacem
ar
en
t
HC Component Funding Model Assessment & Category Summary
Streets/Asphalt
Asphalt
Asphalt Slurry Seal
Streets/Asphalt - Total
2047
2014
40
6
0
1
35
2
113,792
28,448
$142,240
0
20,320
$20,320
14,224
20,320
$34,544
Unfunded
25
2
15
0
Unfunded
22
10
89,883
2,223
0
0
16,645
741
Fencing/Security
Balcony Railings
Vinyl Fencing
Wought Iron Fence Paint
Wrought Iron Fence Replace
Fencing/Security - Total
2034
2022
$92,106
$17,386
Recreation/Pool
Jungle Gym
Large Playground Equipment
Park Bench
Park Grill
Pool Feeder
Pool Filter
Pool Furniture
Pool Heater
Pool Re-Plaster
Spa Feeder
Spa Filter
Spa Heater
Spa Re-Plaster
Spiral Slide
T.V Clubhouse
Recreation/Pool - Total
2013
2013
2013
2017
2013
2013
2013
2017
2017
Unfunded
Unfunded
Unfunded
Unfunded
Unfunded
6
0
6
0
6
0
10
0
6
0
6
0
6
0
10
0
Unfunded
10
0
1
1
1
5
1
1
1
5
1,500
700
4,500
5,000
1,250
1,200
3,500
2,500
1,250
583
3,750
2,500
1,042
1,000
2,917
1,250
1,250
583
3,750
2,500
1,042
1,000
2,917
1,250
5
500
$20,650
250
$14,542
250
$14,542
0
0
0
25
5
15
1,900
2,500
800
$5,200
0
1,250
0
$1,250
317
1,250
200
$1,767
20
0
Unfunded
12
0
15
0
12
0
12
0
15
500
0
125
7
10
7
7
1,800
1,100
4,200
1,500
$9,100
0
0
0
0
750
367
1,750
625
$3,617
Bathroom Stalls
Couches Clubhouse
Drinking Fountain
Interior Furnishings - Total
2037
2017
2027
30
10
20
Equipment
Clubhouse Fridge
Clubhouse Oven
Elliptical
Stationary Bikes
Treadmill
Universal Gym
Equipment - Total
2027
2019
2022
2019
2019
PAGE 2-10
Fu
ll
Fu y
nd
ed
As
s
Re igned
ser
ve
s
Cu
r
Co rent
st
en
t
Re
ma
L i i ni
fe n g
Description
Us
e
L i f ul
fe
Ad
j us
tm
Re
p
Ye lacem
ar
en
t
HC Component Funding Model Assessment & Category Summary
Building Components
Balcony Decks
Carpet Replace
Large Stairways
Repaint Clubhouse Interior
Roofing
Rubber Floor (Gym)
Shutters
Staircase Small
Stone Siding Inspection/Partial Mortar Repair
Stucco Siding
Tile Clubhouse
Building Components - Total
2032
2032
2037
2021
2037
2027
2017
2037
2017
2057
2037
25
25
30
10
30
20
10
30
10
50
30
0
0
0
4
0
0
0
0
0
0
0
20
20
25
9
25
15
5
25
5
45
25
116,712
21,525
75,000
5,498
847,506
4,585
16,480
138,000
7,605
113,032
9,560
$1,355,503
0
0
0
0
0
0
8,240
0
3,802
0
0
$12,042
23,342
4,305
12,500
1,963
141,251
1,146
8,240
23,000
3,802
11,303
1,593
$232,447
2019
2018
10
40
2
0
7
6
15,000
71,950
$86,950
0
12,746
$12,746
6,250
61,157
$67,407
2013
6
0
1
8,400
$8,400
7,000
$7,000
7,000
$7,000
$1,720,150
$67,900
$2,100
$70,000
$378,710
$11,713
$390,422
Fully Funded Level
18%
Current Average Liability per Unit (Total Units: 303)
-$1,057
Grounds Components
Carport Re-Painting
Concrete: Sidewalks, Driveways, Gutters etc.
Grounds Components - Total
Doors
Door Trim
Doors - Total
Total Asset Summary
Contingency at 3.00%
Summary Total
PAGE 2-11
HC Distribution of Accumulated Reserves
Remaining
Life
Description
Door Trim
Pool Filter
Pool Furniture
Pool Heater
Spa Feeder
Spa Filter
Spa Heater
Asphalt Slurry Seal
Couches Clubhouse
Pool Re-Plaster
Shutters
Spa Re-Plaster
T.V Clubhouse
Carport Re-Painting
Elliptical
Treadmill
Universal Gym
Stationary Bikes
Clubhouse Fridge
Drinking Fountain
Rubber Floor (Gym)
Balcony Decks
Carpet Replace
Vinyl Fencing
Bathroom Stalls
Large Stairways
Roofing
Staircase Small
Tile Clubhouse
Asphalt
Stucco Siding
Pool Feeder
Jungle Gym
Park Grill
Spiral Slide
1
1
1
1
1
1
1
2
5
5
5
5
5
5
6
7
7
7
7
9
10
10
15
15
15
20
20
22
25
25
25
25
25
35
45
Replacement
Year
2013
2013
2013
2013
2013
2013
2013
2014
2017
2017
2017
2017
2017
2017
2018
2019
2019
2019
2019
2021
2022
2022
2027
2027
2027
2032
2032
2034
2037
2037
2037
2037
2037
2047
2057
Unfunded
Unfunded
Unfunded
Unfunded
Unfunded
PAGE 2-12
Assigned
Reserves
Fully Funded
Reserves
7,000
1,250
583
3,750
1,042
1,000
2,917
20,320
1,250
2,500
8,240
1,250
3,802
250
*12,746
7,000
1,250
583
3,750
1,042
1,000
2,917
20,320
1,250
2,500
8,240
1,250
3,802
250
61,157
6,250
750
1,750
625
1,963
367
741
125
200
1,146
23,342
4,305
16,645
317
12,500
141,251
23,000
1,593
14,224
11,303
HC Distribution of Accumulated Reserves
Description
Remaining
Life
Park Bench
Clubhouse Oven
Balcony Railings
Replacement
Year
Assigned
Reserves
Fully Funded
Reserves
$67,900
$2,100
$70,000
$378,710
$11,713
$390,422
Unfunded
Unfunded
Unfunded
Unfunded
Total Asset Summary
Summary Total
Fully Funded Level
18%
Current Average Liability per Unit (Total Units: 303)
'*' Indicates Partially Funded
-$1,057
PAGE 2-13
HC Annual Expenditure Detail
Description
Expenditures
No Replacement in 2012
Replacement Year 2013
Door Trim
Pool Filter
Pool Furniture
Pool Heater
Spa Feeder
Spa Filter
Spa Heater
8,652
1,545
721
4,635
1,287
1,236
3,605
Total for 2013
$21,681
Asphalt Slurry Seal
30,181
Total for 2014
$30,181
Couches Clubhouse
Pool Re-Plaster
Shutters
Spa Re-Plaster
T.V Clubhouse
Total for 2017
2,898
5,796
19,105
2,898
8,816
580
$40,093
Total for 2018
85,912
$85,912
Carport Re-Painting
Door Trim
Elliptical
Pool Filter
Pool Furniture
18,448
10,331
2,214
1,845
861
PAGE 2-14
Description
Expenditures
Replacement Year 2019 continued...
Pool Heater
Spa Feeder
Spa Filter
Spa Heater
Treadmill
Universal Gym
Total for 2019
5,534
1,537
1,476
4,305
5,165
1,845
$53,561
Asphalt Slurry Seal
36,037
Total for 2020
$36,037
Total for 2021
7,173
$7,173
Stationary Bikes
1,478
2,988
Total for 2022
$4,466
Door Trim
Pool Filter
Pool Furniture
Pool Heater
Spa Feeder
Spa Filter
Spa Heater
12,336
2,203
1,028
6,608
1,836
1,762
5,140
Total for 2025
$30,913
Asphalt Slurry Seal
43,030
Total for 2026
$43,030
PAGE 2-15
Description
Expenditures
Clubhouse Fridge
Couches Clubhouse
Drinking Fountain
Pool Re-Plaster
Rubber Floor (Gym)
Shutters
Spa Re-Plaster
T.V Clubhouse
779
3,895
1,246
7,790
7,143
25,675
3,895
11,848
779
Total for 2027
$63,051
115,459
Total for 2028
$115,459
Carport Re-Painting
24,793
Total for 2029
$24,793
Door Trim
Elliptical
Pool Filter
Pool Furniture
Pool Heater
Spa Feeder
Spa Filter
Spa Heater
Treadmill
Universal Gym
Total for 2031
14,729
3,156
2,630
1,227
7,891
9,640
2,192
2,104
6,137
7,365
2,630
$59,703
Asphalt Slurry Seal
51,380
PAGE 2-16
Description
Expenditures
Balcony Decks
Carpet Replace
Total for 2032
210,795
38,877
$301,052
Vinyl Fencing
172,225
Total for 2034
$172,225
Bathroom Stalls
Couches Clubhouse
Door Trim
Large Stairways
Pool Filter
Pool Furniture
Pool Heater
Pool Re-Plaster
Roofing
Shutters
Spa Feeder
Spa Filter
Spa Heater
Spa Re-Plaster
Staircase Small
Stationary Bikes
T.V Clubhouse
Tile Clubhouse
Total for 2037
3,978
5,234
17,588
157,033
3,141
1,466
9,422
10,469
1,774,489
34,505
2,617
2,513
7,328
5,234
288,941
2,303
15,923
1,047
20,017
4,654
$2,367,904
Asphalt Slurry Seal
61,351
PAGE 2-17
Description
Expenditures
Total for 2038
155,167
$216,518
Carport Re-Painting
33,319
Total for 2039
$33,319
Total for 2041
12,956
$12,956
PAGE 2-18
HC Detail Report by Category
Asphalt - 2047
Asset ID
1001
Placed in Service
Useful Life
Streets/Asphalt
November 2007
40
Replacement Year
Remaining Life
2047
35
189,654 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $1.20
$113,792.40
50%
$320,196.16
none
Monthly Assessment
Interest Contribution
Reserve Allocation
$91.95
$0.02
$91.97
Component in good condition. Useful life will depend on quality of installation, weather and
upkeep (Asphalt Slurry Seal).
Asphalt Slurry Seal - 2014
Asset ID
1011
Placed in Service
Useful Life
Adjustment
Replacement Year
Remaining Life
Streets/Asphalt
November 2007
6
1
2014
2
189,654 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $0.15
$28,448.10
100%
$30,180.59
$20,320.07
Monthly Assessment
Reserve Allocation
$49.86
$0.86
$50.72
upkeep. Roads have minimal cracks, may need minor repairs in near future.
Streets/Asphalt - Total Current Cost
Assigned Reserves
Fully Funded Reserves
PAGE 2-19
$142,240
$20,320
$34,544
Balcony Railings
Asset ID
1008
Placed in Service
Useful Life
Fencing/Security
November 2007
50
Replacement Year
Remaining Life
2057
45
303 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $250.00
$75,750.00
100%
$286,455.88
none
No Future Assessments
Component in good condition. Useful life will depend on quality of workmanship, weather and
upkeep. There should be no need to replace completely, that is why this should remain
unfunded.
Vinyl Fencing - 2034
Asset ID
1014
Placed in Service
Useful Life
Adjustment
Replacement Year
Remaining Life
Fencing/Security
November 2007
25
2
2034
22
6,658 linear ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $13.50
$89,883.00
100%
$172,225.12
none
Monthly Assessment
Reserve Allocation
$78.94
$0.02
$78.96
upkeep.
PAGE 2-20
Wought Iron Fence Paint - 2022
Asset ID
1009
Placed in Service
Useful Life
Fencing/Security
November 2007
15
Replacement Year
Remaining Life
2022
10
247 linear ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $9.00
$2,223.00
100%
$2,987.53
none
Monthly Assessment
Reserve Allocation
$3.02
$3.02
upkeep.
Asset ID
1013
Placed in Service
Useful Life
Fencing/Security
November 2007
25
Replacement Year
Remaining Life
2032
20
247 linear ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
PAGE 2-21
@ $50.00
$12,350.00
100%
$22,305.47
none
Wrought Iron Fence Replace continued...
upkeep. If this component is maintained properly, it will most likely not need to be repaced.
Fencing/Security - Total Current Cost
Assigned Reserves
PAGE 2-22
$92,106
$0
$17,386
Jungle Gym
Asset ID
1035
Placed in Service
Useful Life
Recreation/Pool
November 2007
20
Replacement Year
Remaining Life
2027
15
2 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $2,000.00
$4,000.00
100%
$6,231.87
none
upkeep
Asset ID
1033
Placed in Service
Useful Life
Recreation/Pool
November 2007
20
Replacement Year
Remaining Life
2027
15
3 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
PAGE 2-23
@ $25,000.00
$75,000.00
100%
$116,847.56
none
Large Playground Equipment continued...
upkeep
Park Bench
Asset ID
1016
Placed in Service
Useful Life
Recreation/Pool
November 2007
25
Replacement Year
Remaining Life
2032
20
6 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $500.00
$3,000.00
100%
$5,418.33
none
upkeep
PAGE 2-24
Park Grill
Asset ID
1015
Placed in Service
Useful Life
Recreation/Pool
November 2007
20
Replacement Year
Remaining Life
2027
15
6 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $150.00
$900.00
100%
$1,402.17
none
upkeep
Pool Feeder
Asset ID
1019
Recreation/Pool
Pool Filter - 2013
Asset ID
1018
Placed in Service
Useful Life
Recreation/Pool
November 2007
6
Replacement Year
Remaining Life
2013
1
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $1,500.00
$1,500.00
100%
$1,545.00
$1,250.00
Monthly Assessment
Reserve Allocation
$2.98
$0.05
$3.04
PAGE 2-25
Pool Filter continued...
Pool Furniture - 2013
Asset ID
1042
Placed in Service
Useful Life
Recreation/Pool
November 2007
6
Replacement Year
Remaining Life
2013
1
7 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $100.00
$700.00
100%
$721.00
$583.33
Monthly Assessment
Reserve Allocation
$1.39
$0.02
$1.42
PAGE 2-26
Pool Heater - 2013
Asset ID
1017
Placed in Service
Useful Life
Recreation/Pool
November 2007
6
Replacement Year
Remaining Life
2013
1
Pool Re-Plaster - 2017
Asset ID
1020
Placed in Service
Useful Life
Recreation/Pool
November 2007
10
Replacement Year
Remaining Life
2017
5
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $4,500.00
$4,500.00
100%
$4,635.00
$3,750.00
Monthly Assessment
Reserve Allocation
$8.95
$0.16
$9.11
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $5,000.00
$5,000.00
100%
$5,796.37
$2,500.00
Monthly Assessment
Reserve Allocation
$6.66
$0.11
$6.77
PAGE 2-27
Spa Feeder - 2013
Asset ID
1039
Placed in Service
Useful Life
Recreation/Pool
November 2007
6
Replacement Year
Remaining Life
2013
1
Spa Filter - 2013
Asset ID
1038
Placed in Service
Useful Life
Recreation/Pool
November 2007
6
Replacement Year
Remaining Life
2013
1
Spa Heater - 2013
Asset ID
1037
Placed in Service
Useful Life
Recreation/Pool
November 2007
6
Replacement Year
Remaining Life
2013
1
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $1,250.00
$1,250.00
100%
$1,287.50
$1,041.67
Monthly Assessment
Reserve Allocation
$2.49
$0.04
$2.53
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $1,200.00
$1,200.00
100%
$1,236.00
$1,000.00
Monthly Assessment
Reserve Allocation
$2.39
$0.04
$2.43
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $3,500.00
$3,500.00
100%
$3,605.00
$2,916.67
Monthly Assessment
Reserve Allocation
$6.96
$0.12
$7.09
PAGE 2-28
Spa Re-Plaster - 2017
Asset ID
1041
Placed in Service
Useful Life
Recreation/Pool
November 2007
10
Replacement Year
Remaining Life
2017
5
Spiral Slide
Asset ID
1034
Placed in Service
Useful Life
Recreation/Pool
November 2007
20
Replacement Year
Remaining Life
2027
15
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $2,500.00
$2,500.00
100%
$2,898.19
$1,250.00
Monthly Assessment
Reserve Allocation
$3.33
$0.05
$3.38
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $5,000.00
$5,000.00
100%
$7,789.84
none
upkeep
PAGE 2-29
T.V Clubhouse - 2017
Asset ID
1028
Placed in Service
Useful Life
Recreation/Pool
November 2007
10
Replacement Year
Remaining Life
2017
5
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $500.00
$500.00
100%
$579.64
$250.00
Monthly Assessment
Reserve Allocation
$0.67
$0.01
$0.68
Recreation/Pool - Total Current Cost
Assigned Reserves
PAGE 2-30
$20,650
$14,542
$14,542
Bathroom Stalls - 2037
Asset ID
1029
Placed in Service
Useful Life
November 2007
30
Replacement Year
Remaining Life
2037
25
2 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $950.00
$1,900.00
100%
$3,978.18
none
Monthly Assessment
Reserve Allocation
$1.60
1 set
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $2,500.00
$2,500.00
100%
$2,898.19
$1,250.00
Monthly Assessment
Reserve Allocation
$3.33
$0.05
$3.38
$1.60
There may need to be repairs due to accidental damage.
Couches Clubhouse - 2017
Asset ID
1027
Placed in Service
Useful Life
November 2007
10
Replacement Year
Remaining Life
2017
5
Couches in great condition. May need to replace at end of useful life to accomodate changing
styles.
PAGE 2-31
Drinking Fountain - 2027
Asset ID
1032
Placed in Service
Useful Life
November 2007
20
Replacement Year
Remaining Life
2027
15
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $800.00
$800.00
100%
$1,246.37
none
Monthly Assessment
Reserve Allocation
$0.84
$0.84
Component in good condition. Useful life will depend on quality of installation and upkeep.
Interior Furnishings - Total Current Cost
Assigned Reserves
PAGE 2-32
$5,200
$1,250
$1,767
Clubhouse Fridge - 2027
Asset ID
1045
Placed in Service
Useful Life
Equipment
November 2007
20
Replacement Year
Remaining Life
2027
15
Clubhouse Oven
Asset ID
1046
Placed in Service
Useful Life
Equipment
November 2007
30
Replacement Year
Remaining Life
2037
25
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $500.00
$500.00
100%
$778.98
none
Monthly Assessment
Reserve Allocation
$0.52
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $400.00
$400.00
100%
$837.51
none
PAGE 2-33
$0.52
Elliptical - 2019
Asset ID
1025
Placed in Service
Useful Life
Equipment
November 2007
12
Replacement Year
Remaining Life
2019
7
3 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $600.00
$1,800.00
100%
$2,213.77
none
Monthly Assessment
Reserve Allocation
$3.20
$3.20
May need to replace or repair electrical components throughout useful life of component.
Other parts of component in good condition.
Stationary Bikes - 2022
Asset ID
1026
Placed in Service
Useful Life
Equipment
November 2007
15
Replacement Year
Remaining Life
2022
10
2 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $550.00
$1,100.00
100%
$1,478.31
none
Monthly Assessment
Reserve Allocation
$1.50
PAGE 2-34
$1.50
Stationary Bikes continued...
Treadmill - 2019
Asset ID
1024
Placed in Service
Useful Life
Equipment
November 2007
12
Replacement Year
Remaining Life
2019
7
3 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $1,400.00
$4,200.00
100%
$5,165.47
none
Monthly Assessment
Reserve Allocation
$7.47
PAGE 2-35
$7.47
Universal Gym - 2019
Asset ID
1023
Placed in Service
Useful Life
Equipment
November 2007
12
Replacement Year
Remaining Life
2019
7
1 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $1,500.00
$1,500.00
100%
$1,844.81
none
Monthly Assessment
Reserve Allocation
$2.67
Equipment - Total Current Cost
Assigned Reserves
PAGE 2-36
$9,100
$0
$3,617
$2.67
Balcony Decks - 2032
Asset ID
1012
Building Components
Placed in Service
November 2007
Useful Life
25
Replacement Year
Remaining Life
2032
20
9,726 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $24.00
$116,712.00
50%
$210,794.85
none
Monthly Assessment
Reserve Allocation
$106.33
$0.03
$106.36
upkeep. Many of the decks get no weather at all and may have a longer useful life. Others may
need small repairs to achieve full life. Prices shown are for a half replacement.
Carpet Replace - 2032
Asset ID
1031
Building Components
Placed in Service
November 2007
Useful Life
25
Replacement Year
Remaining Life
2032
20
1,025 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $21.00
$21,525.00
100%
$38,876.54
none
Monthly Assessment
Reserve Allocation
$19.61
$19.62
May need to be replaced at end of useful life to accomodate changing styles. Carpet has no
major problems as of last inspection.
PAGE 2-37
Large Stairways - 2037
Asset ID
1043
Building Components
Placed in Service
November 2007
Useful Life
30
Replacement Year
Remaining Life
2037
25
30 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $2,500.00
$75,000.00
100%
$157,033.34
none
Monthly Assessment
Reserve Allocation
$63.29
$0.02
$63.31
upkeep. May need to replace steps in case of accidental damage.
Repaint Clubhouse Interior - 2021
Asset ID
1010
Placed in Service
Useful Life
Adjustment
Replacement Year
Remaining Life
Building Components
November 2007
10
4
2021
9
8,458 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $0.65
$5,497.70
100%
$7,173.25
none
Monthly Assessment
Reserve Allocation
$8.06
PAGE 2-38
$8.07
Repaint Clubhouse Interior continued...
Component in good condition. Useful life will depend on quality of workmanship and upkeep.
Re-Painting may only need to happen to accomodate changing styles.
Roofing - 2037
Asset ID
1003
Placed in Service
Useful Life
Building Components
November 2007
30
Replacement Year
Remaining Life
2037
25
385,230 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $2.20
$847,506.00
100%
$1,774,489.36
none
Monthly Assessment
Reserve Allocation
$715.20
$0.19
$715.39
upkeep
Rubber Floor (Gym) - 2027
Asset ID
1047
Placed in Service
Useful Life
Building Components
November 2007
20
Replacement Year
Remaining Life
2027
15
655 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $7.00
$4,585.00
100%
$7,143.28
none
Monthly Assessment
Reserve Allocation
$4.81
$4.81
Component in good condition. There were no major wear marks on the floor and may have
extensive useful life.
PAGE 2-39
Shutters - 2017
Asset ID
1021
Building Components
Placed in Service
November 2007
Useful Life
10
Replacement Year
Remaining Life
2017
5
824 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $20.00
$16,480.00
100%
$19,104.84
$8,240.00
Monthly Assessment
Reserve Allocation
$21.96
$0.35
$22.31
Component in fair condition. Useful life will depend on quality of installation, weather and
upkeep. Some units facing the sun and that get more weather may need to be re-painted before
end of useful life. Some may exceed it by years.
Staircase Small - 2037
Asset ID
1044
Building Components
Placed in Service
November 2007
Useful Life
30
Replacement Year
Remaining Life
2037
25
60 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $2,300.00
$138,000.00
100%
$288,941.35
none
Monthly Assessment
Reserve Allocation
$116.46
$0.03
$116.49
PAGE 2-40
Stone Siding Inspection/Partial Mortar Repair - 2017
Asset ID
1005
Placed in Service
Useful Life
Building Components
November 2007
10
Replacement Year
Remaining Life
2017
5
10,140 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $0.75
$7,605.00
100%
$8,816.28
$3,802.50
Monthly Assessment
Reserve Allocation
$10.14
$0.16
$10.30
upkeep. There may be stones that fall off due to accidental damage or faulty installation.
Stucco Siding - 2057
Asset ID
1004
Building Components
Placed in Service
November 2007
Useful Life
50
Replacement Year
Remaining Life
2057
45
32,295 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $3.50
$113,032.50
100%
$427,443.23
none
Monthly Assessment
Reserve Allocation
$95.23
$0.03
$95.26
PAGE 2-41
Stucco Siding continued...
upkeep
Tile Clubhouse - 2037
Asset ID
1030
Placed in Service
Useful Life
Building Components
November 2007
30
Replacement Year
Remaining Life
2037
25
1,195 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $8.00
$9,560.00
100%
$20,016.52
none
Monthly Assessment
Reserve Allocation
$8.07
$8.07
upkeep.
Building Components - Total Current Cost
Assigned Reserves
PAGE 2-42
$1,355,503
$12,042
$232,447
Carport Re-Painting - 2019
Asset ID
1006
Placed in Service
Useful Life
Adjustment
Replacement Year
Remaining Life
Grounds Components
November 2007
10
2
2019
7
30 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $500.00
$15,000.00
100%
$18,448.11
none
Monthly Assessment
Reserve Allocation
$26.67
$26.68
upkeep. Will not likely need to re-paint all carports at once.
Concrete: Sidewalks, Driveways, Gutters etc. - 2018
Asset ID
1002
Placed in Service
Useful Life
Grounds Components
November 2008
40
Replacement Year
Remaining Life
2018
6
143,900 square ft.
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $2.00
$71,950.00
25%
$85,912.06
$12,745.76
Monthly Assessment
Reserve Allocation
$123.39
$0.56
$123.96
Component in great condition. Useful life will depend on quality of installation, weather and
upkeep. No apparent need to replace completely.
PAGE 2-43
Grounds Components - Total Current Cost
Assigned Reserves
PAGE 2-44
$86,950
$12,746
$67,407
Door Trim - 2013
Asset ID
1007
Placed in Service
Useful Life
Doors
November 2007
6
Replacement Year
Remaining Life
2013
1
56 each
Asset Cost
Percent Replacement
Future Cost
Assigned Reserves
@ $150.00
$8,400.00
100%
$8,652.00
$7,000.00
Monthly Assessment
Reserve Allocation
$16.71
$0.30
$17.01
Component in fair condition. Useful life will depend on quality of installation, weather and
upkeep. There are many doors (on townhomes) with chipping paint on the trim as of last
inspection. May need to budget for prompt re-painting.
Doors - Total Current Cost
Assigned Reserves
PAGE 2-45
$8,400
$7,000
$7,000
Detail Report Summary
Total of All Assets
Assigned Reserves
Monthly Contribution
Monthly Interest
Monthly Allocation
$67,900.00
$1,783.88
$3.31
$1,787.20
Assigned Reserves
Monthly Interest
Monthly Allocation
$2,100.00
$55.17
$0.10
$55.27
Grand Total
Assigned Reserves
Monthly Interest
Monthly Allocation
PAGE 2-46
$70,000.00
$1,839.06
$3.42
$1,842.47
HC Category Detail Index
Asset ID
Description
Replacement
Page
1001
1011
1012
1008
1029
1031
1006
1045
1046
1002
1027
1007
1032
1025
1035
1033
1043
1016
1015
1019
1018
1042
1017
1020
1010
1003
1047
1021
1039
1038
1037
1041
1034
1044
1026
1005
1004
1028
Asphalt
Asphalt Slurry Seal
Balcony Decks
Balcony Railings
Bathroom Stalls
Carpet Replace
Carport Re-Painting
Clubhouse Fridge
Clubhouse Oven
Couches Clubhouse
Door Trim
Drinking Fountain
Elliptical
Jungle Gym
Large Stairways
Park Bench
Park Grill
Pool Feeder
Pool Filter
Pool Furniture
Pool Heater
Pool Re-Plaster
Roofing
Rubber Floor (Gym)
Shutters
Spa Feeder
Spa Filter
Spa Heater
Spa Re-Plaster
Spiral Slide
Staircase Small
Stationary Bikes
Stucco Siding
T.V Clubhouse
2047
2014
2032
Unfunded
2037
2032
2019
2027
Unfunded
2018
2017
2013
2027
2019
Unfunded
Unfunded
2037
Unfunded
Unfunded
Unfunded
2013
2013
2013
2017
2021
2037
2027
2017
2013
2013
2013
2017
Unfunded
2037
2022
2017
2057
2017
2-19
2-19
2-37
2-20
2-31
2-37
2-43
2-33
2-33
2-43
2-31
2-45
2-32
2-34
2-23
2-23
2-38
2-24
2-25
2-25
2-25
2-26
2-27
2-27
2-38
2-39
2-39
2-40
2-28
2-28
2-28
2-29
2-29
2-40
2-34
2-41
2-41
2-30
PAGE 2-47
HC Category Detail Index
Asset ID
Description
Replacement
Page
1030
1024
1023
1014
1009
1013
Tile Clubhouse
Treadmill
Universal Gym
Vinyl Fencing
2037
2019
2019
2034
2022
Unfunded
2-42
2-35
2-36
2-20
2-21
2-21
Total Funded Assets
Total Unfunded Assets
Total Assets
35
9
44
PAGE 2-48
HC Annual Expenditure Chart
PAGE 2-49
HC Funding Model Reserve Ending Balance Comparison Chart
The chart above compares the projected reserve ending balances of the three funding models (Current
Assessment Funding Model, Threshold Funding Model and Component Funding Model) over 30 years.
PAGE 2-50
HC Funding Model Comparison by Percent Funded
The chart above compares the three funding models (Current Assessment Funding Model, Threshold Funding
Model and Component Funding Model) by the percentage fully funded over 30 years. This allows your
association to view and then choose the funding model that might best fit your community’s needs.
PAGE 2-51
HC Funding Model Assessment Comparison Chart
The chart above compares the annual assessment of the three funding models (Current Assessment Funding
Model, Threshold Funding Model and Component Funding Model) over 30 years.
PAGE 2-52
HC Spread Sheet
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
Description
Asphalt
Asphalt Slurry Seal
Balcony Decks
Balcony Railings
Bathroom Stalls
Carpet Replace
Carport Re-Painting
Clubhouse Fridge
Clubhouse Oven
Concrete: Sidewalks, Driveways, Gutters et..
Couches Clubhouse
Door Trim
Drinking Fountain
Elliptical
Jungle Gym
Large Stairways
Park Bench
Park Grill
Pool Feeder
Pool Filter
Pool Furniture
Pool Heater
Pool Re-Plaster
Roofing
Rubber Floor (Gym)
Shutters
Spa Feeder
Spa Filter
Spa Heater
Spa Re-Plaster
Spiral Slide
Staircase Small
Stationary Bikes
30,181
36,037
Unfunded
18,448
Unfunded
85,912
2,898
8,652
10,331
2,214
Unfunded
Unfunded
Unfunded
Unfunded
Unfunded
1,545
721
4,635
1,845
861
5,534
5,796
7,173
19,105
1,287
1,236
3,605
1,537
1,476
4,305
2,898
Unfunded
PAGE 2-53
HC Spread Sheet
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
36,037
7,173
Description
Stone Siding Inspection/Partial Mortar Rep..
Stucco Siding
T.V Clubhouse
Tile Clubhouse
Treadmill
Universal Gym
Vinyl Fencing
Year Total:
8,816
580
5,165
1,845
Unfunded
21,681
30,181
PAGE 2-54
40,093
85,912
53,561
HC Spread Sheet
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Description
Asphalt
Asphalt Slurry Seal
Balcony Decks
Balcony Railings
Bathroom Stalls
Carpet Replace
Carport Re-Painting
Clubhouse Fridge
Clubhouse Oven
Couches Clubhouse
Door Trim
Drinking Fountain
Elliptical
Jungle Gym
Large Stairways
Park Bench
Park Grill
Pool Feeder
Pool Filter
Pool Furniture
Pool Heater
Pool Re-Plaster
Roofing
Rubber Floor (Gym)
Shutters
Spa Feeder
Spa Filter
Spa Heater
Spa Re-Plaster
Spiral Slide
Staircase Small
Stationary Bikes
43,030
Unfunded
24,793
779
Unfunded
115,459
3,895
12,336
14,729
1,246
3,156
Unfunded
Unfunded
Unfunded
Unfunded
Unfunded
2,203
1,028
6,608
2,630
1,227
7,891
7,790
9,640
7,143
25,675
1,836
1,762
5,140
2,192
2,104
6,137
3,895
Unfunded
1,478
PAGE 2-55
HC Spread Sheet
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
Description
Stucco Siding
T.V Clubhouse
Tile Clubhouse
Treadmill
Universal Gym
Vinyl Fencing
Year Total:
11,848
779
7,365
2,630
2,988
Unfunded
4,466
30,913
PAGE 2-56
43,030
63,051
115,459
24,793
59,703
HC Spread Sheet
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
Description
Asphalt
Asphalt Slurry Seal
Balcony Decks
Balcony Railings
Bathroom Stalls
Carpet Replace
Carport Re-Painting
Clubhouse Fridge
Clubhouse Oven
Couches Clubhouse
Door Trim
Drinking Fountain
Elliptical
Jungle Gym
Large Stairways
Park Bench
Park Grill
Pool Feeder
Pool Filter
Pool Furniture
Pool Heater
Pool Re-Plaster
Roofing
Rubber Floor (Gym)
Shutters
Spa Feeder
Spa Filter
Spa Heater
Spa Re-Plaster
Spiral Slide
Staircase Small
Stationary Bikes
51,380
210,795
Unfunded
61,351
3,978
38,877
33,319
Unfunded
155,167
5,234
17,588
Unfunded
Unfunded
157,033
Unfunded
Unfunded
Unfunded
3,141
1,466
9,422
10,469
12,956
1,774,489
34,505
2,617
2,513
7,328
5,234
Unfunded
288,941
2,303
PAGE 2-57
HC Spread Sheet
2032
2033
2034
2035
2036
2037
2038
2039
216,518
33,319
2040
2041
Description
Stucco Siding
T.V Clubhouse
Tile Clubhouse
Treadmill
Universal Gym
Vinyl Fencing
Year Total:
15,923
1,047
20,017
172,225
4,654
Unfunded
301,052
172,225
PAGE 2-58
2,367,904
12,956

table of contents - Parker Brown Realestate

Transcription

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