Reserve Analysis by Berrera and Company (January 2016) Page 1 Section I: Capital Reserve Funding - Estimated Cash Reserve Balances And Unfunded Liability: Effective 1/1/2019 Assumption Table: Interest Rate 0.10% Year Association Built: 2006 Inflation Rat 3.00% Number of Units: 73 CASH FLOW FORECASTS: 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 CASH RECEIPTS Assessments (See Budget) $ 156,000 $ 156,000 $ 156,000 $ 156,000 $ 156,000 $ 156,000 $ 156,000 $ 156,000 $ 171,600 $ 188,760 Special Assessment 0 0 0 0 0 0 0 0 0 0 Interest Earned, (average of.1% at Mutual of Omaha Bank) 717 649 558 510 567 763 720 846 974 1,271 Total Cash Receipts 156,717 156,649 156,558 156,510 156,567 156,763 156,720 156,846 172,574 190,031 Less: Major Component Costs - Section II -222,699-218,797-160,919-73,472-21,277-143,602-30,401-30,362-17,303-283,541 Net Increase (Decrease) In Cash -65,982-62,148-4,361 83,038 135,290 13,161 126,319 126,484 155,271-93,510 Cash Reserve Balances At Beginning Of Year (1) 527,555 461,573 399,425 395,064 478,102 613,392 626,553 752,872 879,356 1,034,627 Cash Reserve Balances At The End Of The Year (2) $461,573 $399,425 $395,064 $478,102 $613,392 $626,553 $752,872 $879,356 $1,034,627 $941,117 LIABILITY FUNDING: Estimated Total Liability - Section III $1,308,835 $1,294,149 $1,288,304 $1,347,318 $1,503,756 $1,724,400 $1,831,591 $2,064,696 $2,311,119 $2,584,857 Less: Major Components Paid For In Current Year -222,699-218,797-160,919-73,472-21,277-143,602-30,401-30,362-17,303-283,541 Net Liability 1,086,137 1,075,352 1,127,385 1,273,846 1,482,480 1,580,798 1,801,190 2,034,334 2,293,816 2,301,316 Less: Cash Balance at December 31-461,573-399,425-395,064-478,102-613,392-626,553-752,872-879,356-1,034,627-941,117 Estimated Unfunded Liability, December 31 $624,564 $675,927 $732,321 $795,744 $869,087 $954,245 $1,048,318 $1,154,978 $1,259,189 $1,360,200 Percentage Funded (3) 42.50% 37.14% 35.04% 37.53% 41.38% 39.64% 41.80% 43.23% 45.11% 40.89% Percentage Unfunded 57.50% 62.86% 64.96% 62.47% 58.62% 60.36% 58.20% 56.77% 54.89% 59.11% (1) The cash balance at the beginning of the year is an estimate only. This amount may differ significantly due from the actual amount to unforeseen circumstances such as the cost of replacement greater than estimated, emergency expenditures, or actual replacement occurring earlier or later than scheduled. (2) Under the "Cash-Flow Method", the Association must have cash balances at the end of each accounting year. This means that for a 20-year funding period, the Association must have sufficient cash on hand to pay for the replacement items each fiscal year. (3) Under the "Percentage of Liability Method", the Association must be funded at least 50%. However, there is no limitation on loans or special assessments. For the coming year, the Association will use the "Cash flow Method" for funding itscapital Reserves. This information is being provided as a supplementary schedule to the Association's operating budget. It is based upon information provided by the Association and/or by an independent appraisal company. We have not verified, nor do we place any form of assurance on the accuracy of the replacement costs, estimated useful lives, and estimated remaining lives - DMI.
Page 2 Asphalt & Concrete Surfaces 1 Asphalt - 5% Repair Contingency 5 1 24,330-24,330 - - - - 28,205 - - - - 2 Asphalt - Overlay 20 12 291,955 - - - - - - - - - - - 3 Asphalt - Seal & Stripe 5 1 58,391-58,391 - - - - 67,691 - - - - 4 Concrete Walks & Curbs Repair contingency 5 1 5,464-5,464 - - - - 6,334 - - - - Doors and Windows 5 Entry Glass Doors (Bldg 1) Repair/Replace 40 30 41,305 - - - - - - - - - - - 6 Entry Glass Doors (bldg 3&4) Repair/Replace 40 30 47,206 - - - - - - - - - - - 7 Entry Metal Doors (Bldg 2) Repair/Replace 30 20 19,232 - - - - - - - - - - - 8 Garage Doors Replace (Other) 0 0 0 - - - - - - - - - - - 9 Utility Doors Repair/Replace 30 20 2,623 - - - - - - - - - - - 10 Window Units (Bldg 1) Repair/Replace 30 20 67,137 - - - - - - - - - - - 11 Window Units (Bldg 3&4) Repair/Replace 30 20 164,696 - - - - - - - - - - - 12 Windows & Doors Annual Repair contingency 1 1 5,464 5,305 5,464 5,628 5,796 5,970 6,149 6,334 6,524 6,720 6,921 7,129 13 House Panel 200 Amp (Bldg 1) 30 20 7,868 - - - - - - - - - - - Electrical 14 House Panel 200 Amp (Bldg 2) 30 20 7,868 - - - - - - - - - - - 15 House Panel 225 Amp (Bldg 3&4) 30 20 8,851 - - - - - - - - - - - 16 Lighting Contactors & Timers 0 20 10 4,371 - - - - - - - - - - 5,703 17 Sub Meters 30 20 63,815 - - - - - - - - - - - 18 Switchgear 1200 Amp Main (Bldg 3&4) 30 20 6,338 - - - - - - - - - - - 19 Switchgear 1600 Amp Main (bldg 1) 30 20 8,469 - - - - - - - - - - - 20 Switchgear 800 Amp Main (Bldg 2) 30 20 4,152 - - - - - - - - - - - Elevators 21 Elevator Cabs Repair & Refurbish 20 10 17,484 - - - - - - - - - - 22,812 22 Elevators Modernize Systems 30 20 185,764 - - - - - - - - - - -
Page 3 Fencing & Walls 23 Chain Link at East Perimeter - Replace 40 30 14,992 - - - - - - - - - - - 24 Guardrail at Perimeter Replace 30 20 7,387 - - - - - - - - - - - 25 Retaining Walls Repair Contingency 5 2 5,464 - - 5,628 - - - - 6,524 - - - Fire Prevention Systems 26 Fire Hydrant Replace 40 30 5,464 - - - - - - - - - - - 27 Fire Panels Modernize 20 10 34,967 - - - - - - - - - - 45,624 28 Fire Systems Testing and Repairs 5 1 10,927-10,927 - - - - 12,668 - - - - 29 Sprinkler Heads Exterior 20 10 37,207 - - - - - - - - - - 48,547 30 Standpipe & Supply Piping (Bldg 1) Replacement 40 30 51,140 - - - - - - - - - - - 31 Standpipe & Supply Piping (Bldg 2) Replacement 40 30 9,835 - - - - - - - - - - - 32 Standpipe & Supply Piping Repairs 5 1 6,556-6,556 - - - - 7,601 - - - - Landscaping & Irrigation 33 Backflow Valves Irrigation 20 10 6,993 - - - - - - - - - - 9,125 34 Irrigation Controllers 15 5 5,245 - - - - - 5,903 - - - - - 35 Landscaping & Irrigation Systems - Refurbish 10 1 13,703-13,703 - - - - - - - - - Lighting 36 Fluorescent Fixtures 20 10 6,611 - - - - - - - - - - 8,626 37 Pole Lights (Parking area) Replace 25 15 13,113 - - - - - - - - - - - 38 Recessed Light Fixtures (Bldg 3 & 4) Replace 20 10 6,731 - - - - - - - - - - 8,783 39 Wall Fixtures (Bldg 1) 0 20 10 765 - - - - - - - - - - 998 40 Wall Fixtures (Bldg 2) Replace 20 10 8,796 - - - - - - - - - - 11,477 41 Wall Fixtures (Bldg 3 & 4) Replace 20 10 6,119 - - - - - - - - - - 7,984 Miscellaneous 42 Community Monuments Refurbish 20 10 3,278 - - - - - - - - - - 4,277 43 Mailboxes 25 15 9,971 - - - - - - - - - - - 44 Trash Enclosures Repair Contingency 10 10 7,649 7,426 - - - - - - - - - 9,980
Page 4 Painting 45 Exterior Paint Bldg 1 8 3 47,184 - - - 50,057 - - - - - - - 46 Exterior Paint Bldg 2 8 3 39,196 - - - 41,583 - - - - - - - 47 Exterior Paint Bldg 3 & 4 8 3 51,642 - - - 54,787 - - - - - - - 48 Guardrails at Perimeter Paint 4 4 909 883 - - - 993 - - - 1,118 - - 49 Guardrails at Perimeter Paint 4 2 4,546 - - 4,682 - - - 5,270 - - - 5,931 Plumbing & Drainage 50 Backflow Valves Water 10 1 19,013-19,013 - - - - - - - - - 51 Backflow Valves Water - (Bldg 1) 10 7 6,338 - - - - - - - 7,568 - - - 52 Plumbing General Repairs Annual Contingency 1 1 8,195 7,957 8,195 8,441 8,695 8,955 9,224 9,501 9,786 10,079 10,382 10,693 53 Storm Drains Inspect & Clean 7 4 5,464 - - - - 5,970 - - - - - - Roofing Systems 54 Access Ladder (Bldg 1) 25 22 6,556 - - - - - - - - - - - 55 Access Ladder (Bldg 2) 25 15 6,556 - - - - - - - - - - - 56 Built-Up Roof (Bldg 1) Recoat 10 2 71,888 - - 74,045 - - - - - - - - 57 Built-Up Roof (Bldg 1) Replace 25 19 258,796 - - - - - - - - - - - 58 Metal Roof (Bldg 2) Recoat 10 2 41,196 - - 42,432 - - - - - - - - 59 Metal Roof (Bldg 2) Replace 25 19 148,305 - - - - - - - - - - - 60 Built-Up Roof (Bldg 3 & 4) Recoat 10 2 75,671 - - 77,941 - - - - - - - - 61 Built-Up Roof (Bldg 3 & 4) 25 19 272,417 - - - - - - - - - - - 62 Gutters & Downs (Bldg 1) Replace 35 25 16,500 - - - - - - - - - - - 63 Gutters & Downs (Bldg 2) Replace 35 25 11,255 - - - - - - - - - - - 64 Gutters & Downs (Bldg 3 & 4) Replace 35 25 8,829 - - - - - - - - - - - 65 Metal Roofing (Bldg 2) Refinish 1 1 0 - - - - - - - - - - - 66 Metal Roofing (Bldg 2) Replace 1 1 0 - - - - - - - - - - - 67 Built-up Roofing (Bldg 3 & 4) Refinish 1 1 0 - - - - - - - - - - - 68 Built-up Roofing (Bldg 3 & 4) Replace 1 1 0 - - - - - - - - - - - 69 Roof Access Hatches (Bldg 3 & 4) Replace 25 15 3,934 - - - - - - - - - - - 70 Skylights (Bldg 2) Replace 25 15 28,848 - - - - - - - - - - -
Page 5 Siding Repairs 71 Expansion Gasket (Between Bldg 3 & 4) 10 1 11,364-11,364 - - - - - - - - - 72 Soffit Repair/Replace (Bldg 1) 20 4 47,206 - - - - 51,583 - - - - - - 73 Soffit Repair/Replace (Bldg 3 & 4) 20 10 58,133 - - - - - - - - - - 75,850 74 Spalling (Bldg 1) 75 Spalling (Bldg 2) 76 Spalling (Bldg 3 & 4) 77 Guardrails at Walkways Replace 35 25 48,299 - - - - - - - - - - - 78 Walkways Traffic Coating Recoat 7 1 10,119-10,119 - - - - - - 12,445 - - 79 Walkways Traffic Coating Resurface 25 15 50,593 - - - - - - - - - - - Total Cost $2,723,820 Estimated Replacement Cost In Scheduled Year 21,570 222,699 218,797 160,919 73,472 21,277 143,602 30,401 30,362 17,303 283,541