Date post: | 05-Jan-2016 |
Category: |
Documents |
Upload: | byron-sanders |
View: | 214 times |
Download: | 0 times |
RESERVE ANALYSIS
FUNDING REQUIREMENTS & METHODS TO MEET THEM
RESERVE FUND-WHY WE HAVE IT
A SEPARATE FUND TO MEET FUTURE CAPITAL EXPENDITURES FOR THE ASSOCIATION
TO PROTECT THE ASSOCIATION FROM AN UNFORSEEN CAPITAL EXPENDITURE OR AN EMERGENCY EVENT
A BY-LAW REQUIREMENT
WHAT ARE THE RESERVES’ CAPITAL OBLIGATIONS
CURBS AND GUTTERS
SIDEWALKS
DETENTION POND
STREETS: MAINTENANCE & REPAIR
WHY RESERVE STUDY WAS INITIATED
DID NOT KNOW THE SCOPE OF THE ASSOCIATION’S CAPITAL RESPONSIBILITIES-PARTICULARLY STREETS
DID NOT KNOW THE AMOUNT OF FUNDS NEEDED TO COVER THE MAINTENANCE OF THESE ITEMS
RESERVE STUDY-RESULTS
ASSESSED THE CURRENT STATUS OF THE RESERVE FUND & FUNDING LEVELS
CONCLUDED THAT THE RESERVE IS CURRENTLY UNDERFUNDED TO MEET PROJECTED FUTURE EXPENSES
CONTENT IS A BLUEPRINT-A TOOL-USED TO PROJECT FUTURE FUNDING LEVELS
PROPOSED THREE SCENARIOS TO MEET FUTURE FUNDING
GIVES THE STATUS OF CAPITAL ITEMS
RESERVE STUDY SCHEDULE OF CAPITAL EXPENDITURES
YEAR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
YEAR # 1 2 3 4 5 6 7 8 9 10 11 12 13
EXPENITURES*
RESURFACE ASPHALT PAVEMENT $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $117,733
ASHPHALT PAVEMENT CRACK SEAL/REPAIR $0 $0 $5,250 $0 $0 $0 $0 $5,250 $0 $0 $0 $0 $5,250
CONCRETE REPAIR REPLACEMENT $0 $3,250 $0 $3,250 $0 $3,250 $0 $3,250 $0 $3,250 $0 $3,250 $0
DETENTION AREA MAINTENANCE $0 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000 $2,000
TOTAL COSTS $0 $5,250 $7,250 $5,250 $2,000 $5,250 $2,000 $10,500 $2,000 $5,250 $2,000 $5,250 $124,983
INFLATION ADJUSTED COSTS $0 $5,434 $7,766 $5,821 $2,295 $6,235 $2,459 $13,359 $2,634 $7,155 $2,821 $7,665 $188,858
INFLATION RATE 3.50%
RESERVE FUND-CURRENT & PROJECTED STATUS
CURRENT SCENERIO
PROJECTED ANNUAL FUNDING & EXPENTITURES 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
YEAR END RESERVE FUND BALANCE $35,688 $35,130 $32,182 $31,159 $33,712 $32,297 $34,706 $26,045 $28,151 $25,686 $27,593 $24,597 ($160,074
)
CAPITAL EXPENDITURES $0 $5,434 $7,766 $5,821 $2,295 $6,235 $2,459 $13,359 $2,634 $7,155 $2,821 $7,665 $188,858
TOTAL REVENUE-ALL SOURCES $4,887 $4,876 $4,818 $4,798 $4,848 $4,820 $4,868 $4,698 $4,739 $4,691 $4,728 $4,669 $4,187
PROJECTED YEARLY BALANCES FOR CURRENT LEVEL OF SAVING &
INVESTMENT RETURNS
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
($200,000)
($150,000)
($100,000)
($50,000)
$0
$50,000
RESERVE FUND
YEAR
FU
ND
BA
LA
NC
E
STATUS OF CAPITAL ITEMS
WHAT WE NEED TO DO & WHEN
CURBS & GUTTERS
BASICALLY IN GOOD CONDITION
A FEW NICKS HERE & THERE
NO MAJOR EXPENSES IN NEAR FUTURE
SIDEWALKS
WALKING PATHS IN GOOD CONDITION-MINOR REPAIRS ONGOING AS NECESSARY
GAPS BETWEEN SIDEWALK & CURB NEED IMMEDIATE REPAIR-A LIABILITY ISSUE
SIDEWALK APRON
CURB
DETENTION POND
GENERALLY GOOD CLEARING AROUND
GRATING NEEDS TO BE ADDRESSED WITHIN THE NEXT YEAR
GENERAL CLEAN-UP ON YEARLY BASIS
STREETS-ASPHALT SEAL & REPAIR
STREETS ARE FOR MOST PART IN GOOD CONDITION
NEED TO IMPLEMENT AN ASPHALT CRACK SEALING PROGRAM
INTERSECTION AT RIVERBED AND VALLEY STREAM NEEDS IMMEDIATE ATTENTION
STREETS-REFACING CURBS
STRONGLY ADVOCATED BY OCRC AND BIRMINGHAM SEALCOAT
DISCOURAGED BY ULTIMATE CONCRETE
SUPPOSEDLY LENGTHENS THE LIFE OF STREET
ROUTE & INSERT SEALER
STREET CURB
REFACING CURBS: EXAMPLE
COST: $15,000-$20,000
DURATION: 5YRS+ FROM ULTIMATE SEAL-10YRS+ FROM BIRMINGHAM SEALCOAT
PURPOSE IS TO PREVENT DAMAGE BETWEEN STREET & CURB
SHERMAN STREET
PROS & CONS ON REFACING CURBS
PROS COULD LENGTHEN
LIFE OF STREETS COULD
POTENTIALLY DELAY COSTLY RESURFACING
CONS ULTIMATE
CONCRETE HAS DOUBTS ABOUT PROCESS
IS NOT WIDELY PRACTICED
EXPENSE PERSONAL
OBSERVATION
PARK STREET-EXAMPLES OF REFACING CURBS-A NEGATIVE
RESULT
BOARD INITIATIVES TO RESERVE STUDY RESULTS
FORM A COMMITTEE TO VERIFY CONCLUSIONS
HAVE THE COMMITTEE CHOOSE A METHOD FROM THE RESERVE STUDY TO BEST MEET FUTURE FUNDING
RESERVE COMMITTEE
COMMITTEE CONSISTED OF JOHN VON ALLMEN RICHARD WOODMANSEE MIKE GOULD JEFF BUCHOLZ
PURPOSE: ASSESS THE RESULTS OF THE RESERVE STUDY
RECOMMENDATIONS ASSESS THE CONDITION OF ASSOCIATIONS’
CAPITAL ITEMS RECOMMEND A FUNDING METHOD TO MEET
FUTURE CAPITAL EXPENSES
THREE SCENARIOS TO MEET FUNDING NEEDS
STEPWISE INCREASES
24% ANNUAL INCREASES TO RESERVE FUND PORTION OF ASSOCIATION DUES
ADDITIONAL ASSESSMENTS
STEPWISE INCREASES
BEGINNING FUND BALANCE $30,802 $35,692 $38,035 $40,946 $48,801 $63,311 $76,992 $97,700 $110,605 $134,708 $154,681 $179,473 $199,822
FEE REVENUE $4,190 $7,031 $9,875 $12,719 $15,563 $18,407 $21,251 $24,095 $24,095 $24,095 $24,095 $24,095 $24,095
INVESTMENT EARNINGS $700 $746 $803 $957 $1,241 $1,510 $1,916 $2,169 $2,641 $3,033 $3,519 $3,918 $701
CAPITAL EXPENTITURES $0 $5,434 $7,766 $5,821 $2,295 $6,235 $2,459 $13,359 $2,634 $7,155 $2,821 $7,665 $188,858
ENDING BALANCE $35,692 $38,035 $40,946 $48,801 $63,311 $76,992 $97,700 $110,605 $134,708 $154,681 $179,473 $199,822 $35,760
ANNUAL FUNDING PER UNIT $53 $89 $125 $161 $197 $233 $269 $305 $305 $305 $305 $305 $305
YEAR 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022
PERCENT RATE OF RETURN OF INVESTMENTS 2.00%
INCREASED FUNDING PER UNIT (2010-2017) $36
TOP FUNDING LEVEL (YRS. 2018-2029) $305
TOTAL BALANCE-MUST BE GREATER THAN 0** $20,760
STEPWISE CHART2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
$0
$50,000
$100,000
$150,000
$200,000
$250,000 FUND BALANCE
YEAR
YR
. EN
D B
ALA
NC
E
CONCLUSIONS OF COMMITTEE
ALL WERE IN AGREEMENT THAT A FUNDING SOLUTION TO ADDRESS THE RESERVE SHORTFALL SHOULD BE IMPLEMENTED IMMEDIATELY
FOUR CAPITAL PROJECTS SHOULD BE ADDRESSED IMMEDIATELY FIRST: SIDEWALK SEPARATION AT CURBS SECOND: CRACK & SEAL OF ASPHALT THIRD: CLEARING OF DETENTION POND FOURTH:SOLICIT BIDS FOR REFACING OF
CURBS
WHERE DO WE GO FROM HERE?
RECOGNIZE THAT THE COMMON ELEMENTS ARE OUR RESPONSIBILITY COLLECTIVELY-WHICH INCLUDES ROADS
RECOGNIZE THAT CURRENT DUES ARE NOT SUFFICIENT TO MAINTAIN THE COMMON ELEMENTS IN THEIR CURRENT CONDITION
STRIKE A BALANCE BETWEEN THE NEEDS OF THE COMMUNITY TO THE ABILITY OF THE HOMEOWNER TO PAY
RE-ASSESS ON A YEARLY BASIS-USING SPREADSHEET AS A MONITORING TOOL