Full Reserve Study The Enclave at Town Center HOA Ponte ...€¦ · 25/07/2019 · The Enclave at...

Full Reserve StudyThe Enclave at Town Center HOA

Ponte Vedra, Florida

Prepared for FY 2020Report Date: July 25, 2019

July 25, 2019

Ms. Gwen Leonhardt, CAMVesta Property Services200 Business Park Circle, Suite 109St. Augustine Florida 32095

Re: Reserve Study Report for The Enclave at Town Center HOA

Dear Ms. Leonhardt:

Community Advisors is pleased to provide this Reserve Study report for the above referenced Association. A sitevisit was conducted to determine the condition of your major components and provide an opinion of theirremaining useful life. We recommend an update with a site visit every three years or sooner if components havebeen added or removed from the inventory or component damage has occurred.

We have developed a plan to fund future capital component replacements which is dependent on adequatefunding, component maintenance, usage, weather and other factors. Component replacement cost is determinedusing local vendors and industry standard publications. This Reserve Study was prepared under the guidelines ofthe National Reserve Study Standards which is administrated by CAI and the Standards of Practice establish byAPRA.

Once you have reviewed this report and considered recent expenditures and any historic cost data we will makenecessary adjustments. Thank you for this opportunity and please let me know if you have any questions orconcerns.

Respectively submitted,

Charles R. Sheppard RS PRA CCIProfessional Reserve Analyst

10459 Hunters Creek CourtJacksonville, FL 32256(904) 303-3275www.communityadvisors.comm

TABLE OF CONTENTSThe Enclave at Town Center HOA

PART I EXECUTIVE SUMMARY

Cash Flow Method Summary 1-1

PART II CASH FLOW METHOD FUNDING

Cash Flow Funding Plan 2-1Cash Flow Funding Plan vs Fully Funded Plan 2-2

PART III COMPONENT METHOD FUNDING

This Section Not Included 3-1

PART IV CURRENT FUNDING PLAN

This Section Not Included 4-1

PART V ANNUAL EXPENDITURES

Asset Current Cost by Category 5-1Annual Expenditure Chart 5-2Annual Expenditure Detail 5-3

PART VI CASH FLOW

Cash Flow 6-1

PART VII - COMPONENT INVENTORY

Component Selection Information 7-1Component Inventory 7-3Component Detail Index 7-4Component Detail 7-5

PART VIII DISCLOSURERS & INFORMATION

Report Navigation 8-1Methodology 8-2Definitions 8-4Terms of Service 8-5Company Information 8-7Credentials 8-8

The Enclave at Town Center HOAPonte Vedra, Florida

Cash Flow Method Summary

Community AdvisorsPage 1-1

July, 25 2019

Report Date July 25, 2019

Budget Year Beginning January 1, 2020Budget Year Ending December 31, 2020

Report Parameters

Inflation 2.50%Annual Assessment Increase 2.00%Interest Rate on Reserve Deposit 1.50%

2020 Beginning Balance $70,000

The Enclave at Town Center HOA is located in Ponte Vedra Florida and has as its major components,streets and various site components. Components observed appear in good condition with exceptionsnoted in this report. Some components may be repaired to extend their remaining useful life which resultsin changes to the recommended funding plan.

The funding goal for the Association is adequate funding using the Cash Flow Funding Method todetermine required contributions. A Threshold Funding Model was used which maintains reserve balancesat a predetermined level for each year without 100% funding. If 100% funded reserves are required, thena beginning balance of $99,764 is needed. Reserves that are 30% to 70% fully funded are consideredadequate assuming proper component maintenance and annual updates to keep interest and inflation ratescurrent.

Recommended contribution for FY 2020 is $17,322 which provides a 76% fully funding reserve at theend of the year. The recommended funding plan is located on page 2-1 which provides adequate fundingassuming proper maintenance and annual updates to this study.

Threshold Funding Model Summary of Calculations

Required Annual Contribution $17,321.86Average Net Annual Interest Earned $1,309.83Total Annual Allocation to Reserves $18,631.69

The Enclave at Town Center HOA Cash Flow Funding Plan


July, 25 2019

Beginning Balance: $70,000Projected Fully

Current Annual Annual Annual Ending Funded PercentYear Cost Contribution Interest Expenditures Reserves Reserves Funded

2020 316,935 17,322 1,310 88,632 116,866 76%2021 324,858 17,668 1,594 107,894 134,761 80%2022 332,980 18,022 1,889 127,805 153,478 83%2023 341,304 18,382 2,152 2,692 145,647 170,563 85%2024 349,837 18,750 2,466 166,863 191,235 87%2025 358,583 19,125 2,790 188,777 212,833 89%2026 367,547 19,507 3,124 211,409 235,393 90%2027 376,736 19,897 3,470 234,776 258,947 91%2028 386,155 20,295 3,780 3,046 255,806 280,409 91%2029 395,808 20,701 4,148 280,654 305,983 92%2030 405,704 21,115 4,527 306,296 332,660 92%2031 415,846 21,538 4,918 332,751 360,480 92%2032 426,242 21,968 5,321 360,040 389,484 92%2033 436,898 22,408 5,685 3,446 384,687 416,179 92%2034 447,821 22,856 6,113 413,656 447,587 92%2035 459,016 23,313 350 413,656 23,663 56,308 42%2036 470,492 23,779 712 48,154 79,782 60%2037 482,254 24,255 1,086 73,494 104,394 70%2038 494,310 24,740 1,209 17,655 81,788 112,091 73%2039 506,668 25,235 1,605 108,628 138,657 78%2040 519,335 25,739 2,016 136,383 166,480 82%2041 532,318 26,254 2,440 165,076 195,608 84%2042 545,626 26,779 2,878 194,733 226,089 86%2043 559,267 27,315 2,735 39,704 185,080 217,275 85%2044 573,249 27,861 3,194 216,135 249,593 87%2045 587,580 28,418 3,668 248,222 283,390 88%2046 602,269 28,987 4,158 281,366 318,722 88%2047 617,326 29,566 4,664 315,597 355,643 89%2048 632,759 30,158 5,111 4,991 345,875 389,095 89%2049 648,578 30,761 5,650 382,285 429,242 89%

The Enclave at Town Center HOA Cash Flow Funding Plan vs Fully Funded Plan


July, 25 2019

The Threshold Funding Model calculates the minimum reserve assessments, with the restriction that thereserve balance is not allowed to go below $0 or other predetermined threshold, during the period of timeexamined.


July, 25 2019

THIS SECTION IS NOT USED

The Enclave at Town Center HOA Asset Current Cost by Category


July, 25 2019


July, 25 2019

The Enclave at Town Center HOA Annual Expenditure Detail


July, 25 2019

Description Expenditures

No Replacement in 2020No Replacement in 2021No Replacement in 2022

Replacement Year 2023Misc. Site Components

Concrete Sidewalk Allowance (5 year cycle) 2,692Total for 2023 $2,692

No Replacement in 2024No Replacement in 2025No Replacement in 2026No Replacement in 2027






No Replacement in 2034


Concrete Curb Allowance at Paving 7,241Concrete Pavers 28,804



July, 25 2019


Replacement Year 2035 continued...Message Boards 3,476

Street Mill & OverlayAuburn Circle 21,261Beeson Lane 9,501Brook Hills Drive 30,456Charter Circle 26,794Garden Wood Drive 105,427Greendale Drive 45,450Hilsong Way 26,640Marietta Way 77,409Selah Lane 9,819Weston Circle 21,377

Total for 2035 $413,656

No Replacement in 2036No Replacement in 2037


Concrete Sidewalk Allowance (5 year cycle) 3,899Mail Boxes 6,738Street Signage Allowance 7,018

Total for 2038 $17,655



Concrete Sidewalk Allowance (5 year cycle) 4,412Stormwater System

Stormwater Pipe/Structure Allowance 35,292Total for 2043 $39,704



July, 25 2019





No Replacement in 2049

The Enclave at Town Center HOA Cash Flow


July, 25 2019

2020 2021 2022 2023 2024 2025 2026 2027 2028 2029Beginning BalanceAnnual AssessmentInterest EarnedExpendituresFully Funded ReservesPercent Fully FundedEnding Balance

70,00017,322

1,310

116,86676%

88,632

88,63217,668

1,594

134,76180%

107,894

107,89418,022

1,889

153,47883%

127,805

127,80518,382

2,1522,692

170,56385%

145,647

145,64718,750

2,466

191,23587%

166,863

166,86319,1252,790

212,83389%

188,777

188,77719,507

3,124

235,39390%

211,409

211,40919,897

3,470

258,94791%

234,776

234,77620,2953,7803,046

280,40991%

255,806

255,80620,701

4,148

305,98392%

280,654

DescriptionMisc. Site ComponentsConcrete Curb Allowance at PavingConcrete PaversConcrete Sidewalk Allowance (5 year cycle) 2,692 3,046Mail BoxesMessage BoardsStreet Signage AllowanceMisc. Site Components Total: 2,692 3,046

Street Mill & OverlayAuburn CircleBeeson LaneBrook Hills DriveCharter CircleGarden Wood DriveGreendale DriveHilsong WayMarietta WaySelah LaneWeston CircleStreet Mill & Overlay Total:

Stormwater SystemStormwater Pipe/Structure AllowanceStormwater System Total:



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2020 2021 2022 2023 2024 2025 2026 2027 2028 2029Description

Components Not IncludedBenches/Trash Cans UnfundedBrick Entry Features UnfundedEngineering for Street Resurfacing UnfundedFencing at Perimeter UnfundedIrrigation Controls UnfundedLandscape UnfundedPrivacy Fencing Unfunded

Year Total: 2,692 3,046



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280,65421,115

4,527

332,66092%

306,296

306,29621,538

4,918

360,48092%

332,751

332,75121,968

5,321

389,48492%

360,040

360,04022,408

5,6853,446

416,17992%

384,687

384,68722,856

6,113

447,58792%

413,656

413,65623,313

350413,656

56,30842%

23,663

23,66323,779

712

79,78260%

48,154

48,15424,255

1,086

104,39470%

73,494

73,49424,7401,209

17,655112,091

73%81,788

81,78825,235

1,605

138,65778%

108,628

DescriptionMisc. Site ComponentsConcrete Curb Allowance at Paving 7,241Concrete Pavers 28,804Concrete Sidewalk Allowance (5 year cycle) 3,446 3,899Mail Boxes 6,738Message Boards 3,476Street Signage Allowance 7,018Misc. Site Components Total: 3,446 39,521 17,655

Street Mill & OverlayAuburn Circle 21,261Beeson Lane 9,501Brook Hills Drive 30,456Charter Circle 26,794Garden Wood Drive 105,427Greendale Drive 45,450Hilsong Way 26,640Marietta Way 77,409Selah Lane 9,819Weston Circle 21,377Street Mill & Overlay Total: 374,135

Stormwater SystemStormwater Pipe/Structure AllowanceStormwater System Total:



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2030 2031 2032 2033 2034 2035 2036 2037 2038 2039Description


Year Total: 3,446 413,656 17,655



July, 25 2019


108,62825,739

2,016

166,48082%

136,383

136,38326,254

2,440

195,60884%

165,076

165,07626,779

2,878

226,08986%

194,733

194,73327,315

2,73539,704

217,27585%

185,080

185,08027,861

3,194

249,59387%

216,135

216,13528,4183,668

283,39088%

248,222

248,22228,987

4,158

318,72288%

281,366

281,36629,566

4,664

355,64389%

315,597

315,59730,1585,1114,991

389,09589%

345,875

345,87530,761

5,650

429,24289%

382,285

DescriptionMisc. Site ComponentsConcrete Curb Allowance at PavingConcrete PaversConcrete Sidewalk Allowance (5 year cycle) 4,412 4,991Mail BoxesMessage BoardsStreet Signage AllowanceMisc. Site Components Total: 4,412 4,991

Street Mill & OverlayAuburn CircleBeeson LaneBrook Hills DriveCharter CircleGarden Wood DriveGreendale DriveHilsong WayMarietta WaySelah LaneWeston CircleStreet Mill & Overlay Total:

Stormwater SystemStormwater Pipe/Structure Allowance 35,292Stormwater System Total: 35,292



July, 25 2019

2040 2041 2042 2043 2044 2045 2046 2047 2048 2049Description


Year Total: 39,704 4,991

The Enclave at Town Center HOA Component Selection Information


July, 25 2019

General Information

Ø Some components have an unpredictable useful life which is dependent on original constructionquality, maintenance procedures, amount of use and wear or for exterior components, the additionalfactor of exposure to the elements. Other components may be replacement over time due to varyingcondition for the same component or the Association has planned to fund this over time because ofcost.

For these components, we often apply an allowance. Once we identify these components theAssociation should monitor annual repair and maintenance cost, so allowances can be adjusted at thenext update.

Ø Annual inspection by professional consultants of major components is recommended to extend theuseful life of components and reduce operating cost. Cleaning, repair and regular maintenance shouldbe completed based on these inspections. Recommended components may include site concrete,roofing, gutters, paving, siding, painting, window and door sealants, balcony waterproofing, balconyrailings, vehicle gates, gate operators and other components as necessary.

Components typically identified on a property fall into several categories.

§ Components with predictable useful lives which are included in this analysis

§ Components with long useful lives with are not predictable

§ Components that are generally funded by the Operating Budget

§ Components that are the responsibility of Homeowners

Long Life Components not included in this analysis unless noted· Storm water pipe and structures· Sidewalk, curb, swale total replacement· Pond engineering evaluation or dredging· Wiring for site lighting· Main lines from utilities to property· Electrical transformers and connecting lines to buildings· Building foundations and frames· Building siding and trim, common area windows and doors· Common water, sewer and vent pipes in buildings· Electrical disconnects and panels, telephone and cable lines· Fire protection system replacement and devices· Pool shell and deck replacement· Sport court replacement

The Enclave at Town Center HOA Component Selection Information


July, 25 2019

Components generally funded by the operating budget unless noted· Asphalt seal coating· Landscaping· Irrigation repair· Sidewalk repair· Stair and balcony railing repair· Pond fountains· Pressure washing and concrete sealing· Misc. painting· Tree trimming

Components that are the responsibility of Homeowners unless noted· Unit Interior components· Plumbing pipes· Electrical systems· Fire detection devices· Fire sprinkler devices· Cable TV and telephone systems· Interior partitions and finishes· Doors and windows

The Enclave at Town Center HOA Component Inventory


July, 25 2019

Serv

ice

Date in

Year

Replac

emen

tUse

ful

Adjustm

ent

Remain

ing

Units

Cost

Unit Cost

Curren

t

Description

Misc. Site ComponentsConcrete Curb Allowance at Paving 2013 2035 22 0 15 1 Lump Sum 5,000.00 5,000Concrete Pavers 2013 2035 22 0 15 2,486 Square Feet 8.00 19,888Concrete Sidewalk Allowance (5 year cycle) 2013 2023 5 5 3 1 Lump Sum 2,500.00 2,500Mail Boxes 2013 2038 25 0 18 60 Each 72.00 4,320Message Boards 2013 2035 22 0 15 2 Each 1,200.00 2,400Street Signage Allowance 2013 2038 25 0 18 1 Lump Sum 4,500.00 4,500 Misc. Site Components - Total $38,608

Street Mill & OverlayAuburn Circle 2013 2035 22 0 15 734 Square Yards 20.00 14,680Beeson Lane 2013 2035 22 0 15 328 Square Yards 20.00 6,560Brook Hills Drive 2013 2035 22 0 15 1,237 Square Yards 17.00 21,029Charter Circle 2013 2035 22 0 15 925 Square Yards 20.00 18,500Garden Wood Drive 2013 2035 22 0 15 4,282 Square Yards 17.00 72,794Greendale Drive 2013 2035 22 0 15 1,846 Square Yards 17.00 31,382Hilsong Way 2013 2035 22 0 15 1,082 Square Yards 17.00 18,394Marietta Way 2013 2035 22 0 15 3,144 Square Yards 17.00 53,448Selah Lane 2013 2035 22 0 15 339 Square Yards 20.00 6,780Weston Circle 2013 2035 22 0 15 738 Square Yards 20.00 14,760 Street Mill & Overlay - Total $258,327

Stormwater SystemStormwater Pipe/Structure Allowance 2013 2043 30 0 23 1 Lump Sum 20,000.00 20,000 Stormwater System - Total $20,000

Components Not IncludedBenches/Trash Cans UnfundedBrick Entry Features UnfundedEngineering for Street Resurfacing UnfundedFencing at Perimeter UnfundedIrrigation Controls UnfundedLandscape UnfundedPrivacy Fencing Unfunded Components Not Included - Total

Total Asset Summary $316,935

The Enclave at Town Center HOA Component Detail Index


July, 25 2019

Asset IDDescription Replacement Page

Misc. Site Components1015 Concrete Curb Allowance at Paving 2035 7-51022 Concrete Pavers 2035 7-51016 Concrete Sidewalk Allowance (5 year cycle) 2023 7-61011 Mail Boxes 2038 7-61014 Message Boards 2035 7-71025 Street Signage Allowance 2038 7-7

Street Mill & Overlay1001 Auburn Circle 2035 7-81019 Beeson Lane 2035 7-81002 Brook Hills Drive 2035 7-91003 Charter Circle 2035 7-91004 Garden Wood Drive 2035 7-101005 Greendale Drive 2035 7-101006 Hilsong Way 2035 7-111018 Marietta Way 2035 7-111008 Selah Lane 2035 7-121010 Weston Circle 2035 7-12

Stormwater System1017 Stormwater Pipe/Structure Allowance 2043 7-14

Components Not Included1026 Benches/Trash Cans Unfunded 7-151013 Brick Entry Features Unfunded 7-151023 Engineering for Street Resurfacing Unfunded 7-151024 Fencing at Perimeter Unfunded 7-151021 Irrigation Controls Unfunded 7-161020 Landscape Unfunded 7-161027 Privacy Fencing Unfunded 7-16

Total Funded Assets 17Total Unfunded Assets 7Total Assets 24

The Enclave at Town Center HOA Component Detail


July, 25 2019

Concrete Curb Allowance at Paving - 2035

Asset ID 1015

Misc. Site ComponentsPlaced in Service January 2013

Useful Life 22Replacement Year 2035

Remaining Life 15

1 Lump Sum @ $5,000.00Asset Cost $5,000.00

Percent Replacement 100%Future Cost $7,241.49

Assigned Reserves $1,590.91

Annual Assessment $248.67Interest Contribution $27.59

Reserve Allocation $276.26

Concrete Pavers - 2035Asset ID 1022



Remaining Life 15

2,486 Square Feet @ $8.00Asset Cost $19,888.00




Reserve Allocation $1,098.87



July, 25 2019

Concrete Sidewalk Allowance (5 year cycle) - 2023

Asset ID 1016


Useful Life 5Adjustment 5

Replacement Year 2023Remaining Life 3






Mail Boxes - 2038Asset ID 1011



Remaining Life 18

60 Each @ $72.00Asset Cost $4,320.00


Assigned Reserves none





July, 25 2019

Message Boards - 2035Asset ID 1014



Remaining Life 15

2 Each @ $1,200.00Asset Cost $2,400.00


Assigned Reserves $763.64



Street Signage Allowance - 2038Asset ID 1025



Remaining Life 18






Misc. Site Components - Total Current Cost $38,608Assigned Reserves $10,433

Fully Funded Reserves $12,902



July, 25 2019

Auburn Circle - 2035Asset ID 1001

Street Mill & OverlayPlaced in Service January 2013


Remaining Life 15

734 Square Yards @ $20.00Asset Cost $14,680.00





Beeson Lane - 2035Asset ID 1019



Remaining Life 15








July, 25 2019

Brook Hills Drive - 2035Asset ID 1002



Remaining Life 15

1,237 Square Yards @ $17.00Asset Cost $21,029.00



Annual Assessment $1,045.86Interest Contribution $116.05


Charter Circle - 2035Asset ID 1003



Remaining Life 15








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Garden Wood Drive - 2035Asset ID 1004



Remaining Life 15



Assigned Reserves $534.23



Greendale Drive - 2035Asset ID 1005



Remaining Life 15








July, 25 2019

Hilsong Way - 2035Asset ID 1006



Remaining Life 15






Marietta Way - 2035Asset ID 1018



Remaining Life 15








July, 25 2019

Selah Lane - 2035Asset ID 1008



Remaining Life 15






Weston Circle - 2035Asset ID 1010



Remaining Life 15








July, 25 2019

Street Mill & Overlay - Total Current Cost $258,327Assigned Reserves $59,567




July, 25 2019

Stormwater Pipe/Structure Allowance - 2043

Asset ID 1017

Stormwater SystemPlaced in Service January 2013


Remaining Life 23






Stormwater System - Total Current Cost $20,000Assigned Reserves $0




July, 25 2019

Benches/Trash CansAsset ID 1026

Components Not IncludedPlaced in Service January 2013

No Useful Life

Asset CostPercent Replacement 100%

Future CostAssigned Reserves none

No Future Assessments

Brick Entry FeaturesAsset ID 1013


No Useful Life




Engineering for Street ResurfacingAsset ID 1023


No Useful Life




13

Fencing at PerimeterAsset ID 1024


No Useful Life






July, 25 2019

Irrigation ControlsAsset ID 1021


No Useful Life




LandscapeAsset ID 1020


No Useful Life




Privacy FencingAsset ID 1027


No Useful Life




Components Not Included - Total Current Cost $0Assigned Reserves $0

Fully Funded Reserves $0

The Enclave at Town Center HOA Report Navigation


July, 25 2019

· The Executive Summary provides a snap-shot of your information that includes inflation and interestrates, annual increases to assessment, reserve fund beginning balance and required contributions. Also inthe body of the page is a property description and other valuable information.

· Funding Plan is your financial plan and includes replacement cost, necessary contributions, interestearned, expenditures, year ending reserve balance, fully funded reserves and percent funded.

· Annual Asset Expenditure Charts provide a graphic illustration of expenditures and assessments. Wetry and make the assessments moderate and fairly level over time with slight increases.

· Funding Plan vs Fully Funded chart is a graphic illustration of how your funding plan compares to afully funded level. With Cash Flow Funding, it is not necessary to be fully funded as the chart shows butsomewhere close to that figure over time is desired.

· Cash Flow is a 30-year statement that provides both income and expense information to quickly findwhen expenditures occur and the resulting financial status of your reserves.

· Asset Current Cost by Category chart indicates where the replacement cost occurs by category such aspainting, paving and roofing.

· Annual Expenditure Detail provides a year to year list of your projected expenditures. This is a goodsection to review each year when preparing your budgets.

· Component Selection contains information specific to your property, components not included andother useful information.

· Component Inventory contains a list of your components, remaining useful life and quantities, wedetermined from our site visit and other means of measurement.

· Component Detail Index allows quick access to the detail we have included for each componentseparated into categories.

· Component Detail provides a listing of each component, quantities or allowances and photographs ofmajor ones.

· Methodology - Terms of Service – Company Profile are our Disclosure sections with informationabout our assumptions, methods of work, what we agree to do and our credentials.


July, 25 2019

MethodologyContent of Reserve Study

A Reserve Study is a two part process that includes a physical analysis and a financial analysis which produces acustom made plan for funding future capital replacement. Having a good plan allows you to understand what iscurrently reserved for, what is not and how the current plan will perform for future years. Ability to adjustcontributions early may prevent special assessments or loans to pay for component replacement.

Types of Reserve Studies

Full Reserve Study Level I This include a site visitReserve Study Update Level II This includes a site visitReserve Study Update Level III No site visit, financial review only

Physical Analysis

During the physical analysis, a site visit is conducted to evaluate major components such as streets, roofs, pools,etc. and build an inventory of components, determine the condition of each and make a projection as to theirremaining useful life. No destructive testing is conducted.

Component Selection

Community Associations Institute (CAI) has established standards for reserve studies and selection ofcomponents.

1. Component must be a commonly owned asset

2. Component must have a limited life

3. That Limited life must be predictable

4. Replacement cost must be above a minimum threshold cost

Some components do not meet that test but can be included with the proper analysis and full understanding ofthe client. In these cases allowance are generally used.

Useful life and remaining useful life sources

A. Site inspection by experienced inspector

B. Our database of information

C. Historical information furnished by the client

D. Local Consultants and Vendors

E. National publications such as Marshall & Swift, RS Means and others

Replacement cost Established by

1. Our database & local cost from contractors and suppliers

2. Historical cost information furnished by the client


July, 25 2019

3. National publication such as Marshall & Swift, RS Means and others

Financial Analysis

The financial analysis assesses the community’s reserve balance, current contributions and interest income todetermine their current reserve fund status. This provides a clear picture of their current financial capability topay for future capital needs.

Adequate Funding

Having a lot of cash in reserves is always a good thing but it may not be enough to meet future replacement cost.The only way to know is by completing your reserve study. If using Cash Flow Funding we set the level offunding for adequate funding. While 100% or Full Funding is best you may only fund to an adequate level and beok.

⦁ 70% to 100% Funding is considered Strong⦁ 30% to 70% Funding is considered Adequate⦁ 0% to 30% Funding is considered Weak

Contributions

We recommend following a custom funding plan we develop for you that includes:

⦁ Adequate cash balance⦁ Even contributions so all owners pay their fair share over time⦁ Minimum contributions necessary with acceptable increases

Funding Goals

We use several type of funding goals including Full Funding, Threshold Funding, Baseline and StatutoryFunding. Here is how the Funding Goals work:

Full Funding - As we mentions full is always the best if you can do it! Plans with Full Funding do not usuallyexperience deferred maintenance or special assessments.

Threshold Funding – Balances are kept above a minimum “Threshold” level to adequate fund reserves. The goalhere is to work towards full funding over time.

Baseline Funding - Reserves are maintained at a set level above zero.

Statutory Funding – Balance set based on local statutes

Funding Methods

The Cash Flow Method develops a reserve-funding plan where contributions to the reserve fund are designed tooffset the variable annual expenditures from the reserve fund.

The Component Method develops a reserve-funding plan where the total contribution is based upon the sum ofcontributions for individual components. When interest and inflation are not included the results are consideredthe “Straight Line Method”.


July, 25 2019

Reserve Terms Dictionary

Accumulated Reserve Balance: The anticipated reserve balance on the first day of the fiscal year forwhich the report has been prepared.

Annual Assessment increase: The percentage rate at which the school will increase its annualassessment to reserves at the end of each year

Budget year beginning/ending (fiscal): the budgetary year for which the report is prepared

Monthly Assessment: The assessment for reserves required each month.

Interest Contribution: The interest that should be earned on the reserves, net of taxes, based upon theirbeginning reserve balance and monthly assessments for one year.

Threshold Funding Model: This analysis calculates the minimum reserve assessments, with therestriction that the reserve balance is not allowed to go below $0 or another predetermined threshold,during the period examined. All funds for planned reserve expenditures will be available on the first dayof each fiscal year. The Threshold Funding Model allows the client to choose the level of conservativefunding it desires by choosing the threshold dollar amount.

Current Assessment Funding Model: This analysis is based on the current annual assessment,parameters, and reserve fund balance. Because It is calculated using the current annual assessment, it willgive an accurate projection of how well the association is funded for the next 30 years of planned reserveexpenditures.

Component Funding Model: This funding model’s long-term objective is to provide a plan to a fullyfunded reserve position over the longest period practical. This is the most conservative funding model.

Placed in Service Date: The month and year that the asset was placed in service. This may be theconstruction date or the date of the last servicing or replacement.

Future Replacement Cost: The estimated cost to repair or replace the asset at the end of its estimateduseful life based upon the current replacement cost and inflation.

Replacement Year: The year that the asset is scheduled to be replaced. The appropriate funds will beavailable by the first day of the fiscal year for which replacement is anticipated.

Estimated Remaining Life: This calculation is completed internally based upon the report's fiscal yeardate and the date the asset was placed in service.

Adjustment to Useful Life: Once the useful life is determined, it may be adjusted +/- by this separatefigure for the current cycle of replacement. This will allow for a current period adjustment withoutaffecting the estimate replacement cycles for future replacements.

Estimated Useful Life: The estimated useful life of an asset based upon industry standards, manufacturerspecification, visual inspection, location, usage, association standards and prior history. All these factorsare taken into consideration when tailoring the estimated useful life to the asset.


July, 25 2019

Terms of ServiceThis document has been provided pursuant to an agreement containing restrictions on its use. No part of thisdocument may be copied or distributed, in any form or by any means, nor disclosed to third parties without theexpressed written permission of Community Advisors, LLC.

This reserve analysis study and the parameters under which it has been completed are based upon informationprovided to us in part by representatives of the Client and its contractors, assorted vendors, specialist andindependent contractors, the Community Association’s Institute, and various construction pricing and schedulingmanuals including, but not limited to: Marshall & Swift Valuation Service, RS Means Building Construction CostData and from numerous vendor catalogues, actual quotations or historical costs, and our own experience in thefield of property management and reserve study preparation.

No liability is assumed as the result of changing market prices or inaccurate estimates or projections of remaininguseful life of components.

We are not responsible for any hidden defects or determining the condition of hidden or undergroundcomponents or systems.

Observing environmental conditions, hazardous materials or determine compliance with building codes or ADAregulations is not included in our scope of work.

Our site visit is not a safety inspection and we are not responsible for any hazards that exist.

Community Advisors, LLC will not be required to participate in any legal action conducted on a property forwhatever reason and shall also not be required to give testimony in depositions or in court. In all cases theliability of any action taken against Community Advisors, LLC and its Principals, Employees, contractors andVendors shall be limited to the consulting fee agreed upon for the production of this report.

This reserve study reflects the information provided by this client and assembled for their use and not for thepurposes of performing an audit, quality or forensic analyses, or background checks of historical records. Thisinformation should not be used to estimate construction projects or relied upon for replacement cost until currentvendor pricing has been obtained.

We assume all components have been maintained properly unless noted in this report and our remaining usefullife projections assume they will be maintained per normal operating standards

Replacement cost does not include any Engineering or Architectural fees unless noted in the study. Beginningfund balances are unaudited and provided by the Client.

Unless noted in the report we assume the funding goal of the Client is to reserve adequate funds for future capitalreplacements if they are pooling their reserves and fully funding reserves if they are using the Component Methodof funding.

It has been assumed, unless otherwise noted in this report, that all assets have been designed and constructedproperly and that each estimated useful life will approximate that of the norm per industry standards and/ormanufacturer’s specifications. In some cases, estimates may have been used on assets, which have anindeterminable but potential liability to the Client. The decision for the inclusion of these as well as all assetsconsidered is left to the Client.


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Use of this report is acceptance by the Client of the above Information and Conditions.

We recommend regular updates to this study to account for changes in interest and inflation rates andreplacement cost.

Community Advisors and the analyst who prepared this study do not have any relationship that can be considereda conflict of interest. From time to time our Clients ask that we manage repair or replacement of components dueto our experience in construction management. We do so with the understanding that full disclosure has beenobtained and that we are working in the best interest of our client.


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Community Advisors

Community Advisors home office is in Jacksonville, Florida providing property inspection services, capitalreserve planning and construction oversight for communities throughout the Southern and Mid-Atlantic States.

Our clients experience quick response, personal service, competitive pricing and receive a custom made plan fortheir future capital replacements. We like to sit down and discuss your concerns prior to our site analysis so wecan better understand your community or property and make sure we have included everything you expect.

Then we conduct a comprehensive site visit to make sure we know your property and include all your assets inour analysis. With our years of experience with community development and commercial construction projectswe understand both horizontal and vertical construction and utilize realistic replacement cost and useful lifeprojections in our analysis.

Once we have completed our site visit we conduct the Financial Analysis where we look at your current reservefund balance, annual contributions and your goal for maintaining adequate reserves. Then we build a custommade financial plan to make sure you have adequate funding for the future and keep contributions as reasonableand moderate as possible.

Our valued clients include:

⦁ High-rise Condominium Association

⦁ Homeowner Associations

⦁ Churches

⦁ Time Share Developments

⦁ Active Adult Communities

⦁ Private Schools

⦁ Business Parks

⦁ Resort Communities

⦁ Non Profit Organizations

⦁ Municipal Utility Plants

⦁ Marinas

⦁ Historic Buildings & Museums


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Reserve Analyst & Inspectors CredentialsCharles R. Sheppard RS PRA CCI

Charlie Sheppard is the owner and President of Community Advisors which provides capital reserve analysis,consulting services, commercial inspections and project management for community associations, private clubs,churches, schools and other entities.

He has over 30 years of experience in real estate development, property operation, commercial propertyinspections and construction management. He has participated on the development team for large planned unitdevelopments and mid-rise office building parks. He has also worked for many years as commercial constructionmanager for a wide range of structures including medical facilities, office buildings, churches, restaurants,clubhouses, infrastructure installation and remodeling and repositioning of properties to match market conditions.

Areas of expertise include mechanical and electrical systems, energy management systems, life safety systems,plumbing systems, building envelope and roof components. Horizontal improvement experience includes marinestructures, street and site concrete construction, utilities, site work and landscaping improvements.

Inspection projects include: High rise office and residential buildings, restaurants, industrial properties, churches,private schools, private clubs, marinas, medical facilities, warehouse and industrial properties, water treatmentfacilities and residential properties.

EducationVirginia Polytechnic Institute & State University – BS

LicenseCertified General Contractor - Florida

Certified Home Inspector - Florida

Professional Designations & Memberships

Certified Construction Inspector, (CCI)

Professional Reserve Analyst, (PRA)

Reserve Specialist, (RS)

Member – Association of Construction Inspectors

Member - Association of Professional Reserve Analyst – APRA

Business Partner - Community Associations Institute – CAI

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