FBI ALERT: Reserve Study - No "Embezzlement Assessment" Required of Lakeside Plaza Condominium Association

7/27/2019 FBI ALERT: Reserve Study - No "Embezzlement Assessment" Required of Lakeside Plaza Condominium Association

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5955 Tyro ne Road , Suite 3 Reno , Nevada 89502Voice (775) 856-2001 Fax (775) 856-4111

May 16, 2006

Funding Reserve Analysisfor

Lakeside Plaza HOA 2006


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Lakeside Plaza HOA 2006 Fundin g Study

Table of Con tents

Pages Sub ject

1 Repor t Cover Sheet

2 Tab le o f Con ten ts

3 to 9 Reserve Study Summary

10 to 14 Reserve It em Summary

15 to 23 Reserve It em L is t ing

24 to 27 Presen t Cos t Report

28 Cash Flow

29 Dues Summary

30 to 37 Expense Repo rt


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5955 Tyro ne Road , Suite 3 Reno , Nevada 89502Voice (775) 856-2001 Fax (775) 856-4111

May 16, 2006

Mr. Kevin BergEugene Burger Management Corp.294 E. Moana Lane

Reno, Nevada 89502

Subject: Lakeside Plaza HOA 2006

Mr. Berg,

Resource 1 BC, LLC. is pleased to present to Mr. Kevin Berg the requested Reserve Funding study. We believe that

you will find the attached study to be thorough and complete. After you have had an opportunity to review the report

you may have questions. Please do not hesitate to write of call - we would be pleased to answer any questions you

may have.

Project Description

Lakeside Plaza is located off of Lakeside Drive in Reno Nevada. Project has 2 main buildings that are 3 stories high

with built up roofs. The parking lots have asphalt with concrete curbs with metal carports. The common area

improvements have a small amount of landscaping, sidewalks, a small club house and a swimming pool.

The redwood decking and concrete patios are the responsibility of each owner.

Roof repairs and replacement will have to be completed in the near future.

The boilers have reached there economic life and will have to be replaced in the near future. The stucco siding hasdeveloped cracks and has to be repairs or cause structural damage to the buildings.

The units are assessed by square footage. There are 191 units in this project.


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Prepared by Resource 1 BC, LLC.

Lakeside Plaza HOA 2006 Funding Study Summary - Continued

The association did not raise reserve fees from the last reserve study done 5

years ago. This has caused a shortfall of about $400,000 in the reserve account.

The reserve fees to the budget will have to be increased to the projected amountby NRS statue. A special assessment of up to $1,000.00 will reduce the annual

amount of contributions..

Taxed as an IRS exempt association (IRS Tax Rules Attached)

Reserve Study Assumptions

Cost estimates and financial information are accurate and current. No unforeseen circumstances will cause

a significant reduction of reserves. Sufficient comprehensive property insurance exists to protect from

insurable risks. The association plans to continue to maintain the existing common areas and amenities.

Reserve payments occur at the end of every calendar month. Expenses occur at the end of the expenseyear.

Impact of Component Life

The projected life expectancy of the major components and the reserve funding needs of the association are closely

tied. Performing the appropriate routine maintenance for each major component generally increases the component

useful life, effectively moving the component expense into the future which reduces the reserve funding payments of

the association. Failure to perform such maintenance can shorten the remaining useful life of the major components,

bringing the replacement expense closer to the present which increases the reserve funding payments of theassociation.

Initial Reserves

The association did not raise reserve fees from the last reserve study done 5 years ago. This has caused a shortfall of

about $400,000 in the reserve account. The reserve fees to the budget will have to be increased to the projected

amount by NRS statue. A special assessment of up to $1,000.00 will reduce the annual amount of contributions..

Reserve Funding Goal

The reserve fund goal is a minimum account balance consistent with the cash demands of maintenance and

replacement of reserve items. (Baseline Funding)

S d M h d


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association. (b) The budget to maintain the reserve required by paragraph (b) of subsection 2 of NRS 116.3115.

The budget must include, without limitation: (1) The current estimated replacement cost, estimated remaining

life and estimated useful life of each major component of the common elements; (2) As of the end of the fiscalyear for which the budget is prepared, the current estimate of the amount of cash reserves that are necessary, and the

current amount of accumulated cash reserves that are set aside, to repair, replace or restore the major components of

the common elements; (3) A statement as to whether the executive board has determined or anticipates that

the levy of one or more special assessments will be required to repair, replace or restore any major component of the

common elements or to provide adequate reserves for that purpose; and (4) A general statement describing the

procedures used for the estimation and accumulation of cash reserves pursuant to subparagraph (2), including, without

limitation, the qualifications of the person responsible for the preparation of the study of the reserves required by NRS

116.31152. 2. In lieu of distributing copies of the budgets of the association required by subsection 1, the executive

board may distribute to each unit's owner a summary of those budgets, accompanied by a written notice that: (a)

The budgets are available for review at the business office of the association or some other suitable location within the

county where the common-interest community is situated or, if it is situated in more than one county, within one of

those counties; and (b) Copies of the budgets will be provided upon request. (Added to NRS by 1999, 2993; A

2003, 2241) NRS 116.31152 Study of reserves; duties of executive board regarding study; qualifications of person

who conducts study; contents of study; submission of study to Commission; regulations regarding study; use of money

credited against residential construction tax for upkeep of park facilities and related improvements identified in study.

1. The executive board of an association shall: (a) Cause to be conducted, at least once every 5 years, a study of

the reserves required to repair, replace and restore the major components of the common elements; (b) Review theresults of that study at least annually to determine if those reserves are sufficient; and (c) Make any adjustments it

deems necessary to maintain the required reserves. 2. The study of the reserves required by subsection 1 must be

conducted by a person who is qualified by training and experience to conduct such a study, including, without

limitation, a member of the executive board, a unit's owner or a community manager who is so qualified. The study of

the reserves must include, without limitation: (a) A summary of an inspection of the major components of the

common elements that the association is obligated to repair, replace or restore; (b) An identification of the major

components of the common elements that the association is obligated to repair, replace or restore which have a

remaining useful life of less than 30 years; (c) An estimate of the remaining useful life of each major component

identified pursuant to paragraph (b); (d) An estimate of the cost of repair, replacement or restoration of each major

component identified pursuant to paragraph (b) during and at the end of its useful life; and (e) An estimate of the

total annual assessment that may be required to cover the cost of repairing, replacement or restoration of the major


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include: (a) A copy of the component inventory from the previous reserve study if such copy was provided by the

executive board to the person conducting the reserve study; (b) A 30-year schedule which shows: (1) The

projected increase in assessments that will be required in any given year to provide an adequately funded reserve; and(2) The projected inflation and estimated interest income from the reserve fund; (c) The names and credentials of

any consultants and other persons with expertise used to assist in the preparation of the reserve study; (d) Any

written reports prepared by consultants and other persons with expertise; (e) If there are any conflicting

recommendations of the consultants or other persons with expertise while preparing the reserve study, a written

explanation as to which recommendations are selected and the reasons for their selection; (f) The disclosures set

forth in NAC 116.430; and (g) A statement, prominently displayed, which reads substantially as follows: The

projected life expectancy of the major components and the funding needs of the reserves of the association are based

upon the association performing appropriate routine and preventative maintenance for each major component. Failure

to perform such maintenance can negatively impact the remaining useful life of the major components and dramatically

increase the funding needs of the reserves of the association. 2. As used in this section, adequately funded

reserve means the funds sufficient to maintain the common elements: (a) At the level described in the governing

documents and in a reserve study; and (b) Without using the funds from the operating budget or without special

assessments, except for occurrences that are a result of unforeseen catastrophic events. (Added to NAC by

Commn for Common-Interest Communities by R129-04, eff. 4-14-2005)

Summary of Findings

Summary of Findings. Resource 1 BC, LLC. has estimated future projected expenses for Lakeside Plaza HOA 2006based upon preservation of existing improvements.

The attached funding study is limited in scope to those expense items listed in the attached "Lakeside Plaza HOA 2006

Reserve Study Expense Items". Expense items which have an expected life of more than 30 Years are not included in

this reserve study unless payment for these long lived items occurs within the 30 Years of the reserve study envelope.

Of primary concern is the preservation of a positive funding balance with funds sufficient to meet projected expenses

throughout the study life. Based upon the attached funding study, it is our professional opinion that member monthly

fees as shown in the attached "Lakeside Plaza HOA 2006 Dues Summary" will realize this goal. Some reserve items

in the "Revenue Summary Table" may not contain payments. In this analysis the initial reserves were used to make

annual payments for expense items in their order of occurrence until the initial reserve was consumed. As a result

reserve items without payments may be expected, particularly in the first few years of the funding study. Reserve


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A summary of our recommended Capital Reserve payments for the next five years is shown below.

Proposed Payment Schedule

Calendar

Year

MemberMonthly

Reserve

Payment

Monthly

Reserve

Payment

Annual

Reserve

Payment

2006 $14,815.99 $14,815.99 $88,895.97

2007 $14,815.99 $14,815.99 $177,791.94

2008 $14,815.99 $14,815.99 $177,791.94

2009 $13,800.72 $13,800.72 $165,608.64

2010 $13,800.72 $13,800.72 $165,608.64

2011 $9,582.94 $9,582.94 $114,995.24

Percent Funded

Many reserve studies use the concept of "Percent Funded" to measure the reserve account balance against a

theoretically perfect value. Percent Funded is often used as a measure of the "Financial Health" of an association.

The assumption is, the higher the percentage, the greater the "Financial Health". The question of substance is simply:

"How much is enough?"To answer the question, some understanding of Percent Funded is required. Percent Funded is the ratio of current

cash reserves divided by the Fully Funded value at any instant in time. Fully Funded is defined as the Future Value,

multiplied by the number of years used, divided by the expected life for the sum of all reserve items. In essence, Fully

Funded is simply the total of the average net present value of the association improvements. Percent Funded is then,

the current reserve balance divided by the Fully Funded value multiplied by 100 (to give a percentage). The concept is

useful when the reserve study is comprehensive, but misleading when the reserve study is superficial or constrained.

As a result, we recommend that the statement "Percent Funded" be used with caution.

Conflict of Interest

As the preparer of this reserve study, Resource 1 BC, LLC. certifies that we do not have any vested interests, financial

interests or other interests that would cause a conflict of interest in the preparation of this reserve study The Reserve


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Resource 1 BC, LLC. would like to thank Mr. Kevin Berg for the opportunity to be of service in the preparation of the

attached Funding Study. Again, please feel free to write or call at our letterhead address if you have any questions.

Prepared by:

_____________________________________________Kenneth R. Rowan

Certified Master Inspector # IOS.0000008-M State of NevadaCAI RS 0064

Enclosures:

Interal Revenue Service Tax Rules


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IRS Tax Rules

Unlike most things with the IRS, association tax rates are really not very complicated.

Tax rates on the first $50,000 in association taxable income can be either 15% or 30%. To qualify for the lower taxrate, the association must file with the IRS as a non exempt membership association.When an association pays taxes as a non exempt membership association, the tax rate for the first $50,000 of taxableincome is 15%. The tax rate increases to 30% for taxable income beyond the first $50,000. Non exempt membershiporganizations are treated the same as a time-share associations . Taxes are filed with form 1120.When an association pays taxes under form 1120H, the tax rate for all taxable income is 30% and the IRS considers it ahomeowners association. Taxes are filed with form 1120.H

Tax Rate ComparisonTaxable Income Form 1120 Form 1120HFirst $50,000 $7,500 $15,000Remaining $30,000 $9,000 $9,000Income Tax $16,500 $24,000

Associations benefit from filing Form 1120 rather than Form 1120H because the tax rate for form 1120 is 15% for thefirst $50,000 of taxable income compared to a flat rate of 30% for Form 1120H. Associations may elect on an annual

basis to file either Form 1120H or Form 1120. However, filing Form 1120 puts associations at risk if they do notcomply with all IRS procedures.In summary, there are two ways to report financial activities to the IRS:a. Form 1120H

Form 1120H is the tax form specifically made for homeowner associations and is likened to the 1040EZ for its relativesimplicity. The tax rate for 1120H filers is 30%.b. Form 1120

Form 1120 is an option for all incorporated HOA's (and all HOA's should be incorporated.). While it is more complex,it carries a tax rate of 15%. Since healthy reserve funds can often rise to hundreds of thousands and even millions ofdollars, it is usually prudent to use the Form 1120 and cut the tax rate in half. Check with a knowledgeable CPA.It is important to note that small associations with reserve balances of less than $50,000 can benefit greatly by changing

tax forms. This will result in lower dues to the membership.Check with your CPA for compliance of IRS rules and regulations.For more information click on the US Treasury link: http://www.irs.ustreas.gov/formspubs/index.html


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Lakeside Plaza HOA 2006 Reserve Study Expense Item Summary

Reserve ItemsCurrent Cost

When New

Expected

Life When

New

Estimated

Remaining

Life

First

Replacement

Cost

Raw

Annual

Payment

Repeating

Item?

Common AreaPCC Walks $2,000 1 Year 1 Year $2,076 $1,355 Yes

Site lighting $3,000 20 Years 18 Years $4,762 $193 Yes

East Parking

Paving 1 inch AC

Overlay$23,125 25 Years 11 Years $30,819 $2,247 Yes

Slurry Seal $5,920 5 Years 1 Year $6,146 $4,011 Yes

Carports Metal $12,750 25 Years 15 Years $18,777 $953 Yes

Front Boiler Building

Roof Tile $1,617 40 Years 18 Years $2,567 $104 Yes

Stucco $500 10 Years 0 Years $506 $506 Yes

Fence Wood $625 20 Years 3 Years $682 $185 Yes

Paint Fence $90.00 5 Years 3 Years $98 $26.65 Yes

Electric Panel $1,500 40 Years 18 Years $2,381 $96.43 Yes

Lattice with Arbor $1,500 30 Years 8 Years $1,855 $192 Yes

Boiler Room Equipment $85,000 25 Years 2 Years $90,476 $34,895 Yes

Front Building

Roof Tile $11,480 40 Years 8 Years $14,195 $1,468 Yes

(1) Roof Built Up New $50,400 20 Years 19 Years $82,022 $3,100 No

(2) Roof Built Up Old $201,600 20 Years 3 Years $220,015 $59,697 Yes

Stucco Repairs $15,000 30 Years 0 Years $15,188 $15,188 Yes

Fence Wood $32,500 20 Years 5 Years $37,285 $6,244 Yes


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Lakeside Plaza HOA 2006 Funding Study Expense Item Summary - Continued

Reserve Items

Current Cost

When New

Expected

Life WhenNew

Estimated

RemainingLife

First

ReplacementCost

Raw

AnnualPayment

Repeating

Item?

Paint Interior $5,472 8 Years 8 Years $6,766 $700 Yes

Ventilation $4,000 30 Years 8 Years $4,946 $512 Yes

Carpet AQ $5,550 12 Years 0 Years $5,620 $5,620 Yes

North West Parking

Paving 1 inch AC

Overlay $52,375 25 Years 11 Years $69,800 $5,090 Yes

Slurry Seal $13,408 5 Years 1 Year $13,920 $9,084 Yes

Fencing Chain Link 6 ft $900 40 Years 13 Years $1,261 $75.87 Yes

Carports Metal $82,500 25 Years 25 Years $155,966 $4,080 Yes

Rear Boiler Building


Stucco $500 10 Years 0 Years $506 $506 Yes

Lattice with Arbor $1,500 30 Years 8 Years $1,855 $192 Yes

Fence Wood $625 20 Years 8 Years $773 $79.93 Yes

Paint Fence $90.00 5 Years 0 Years $91 $91.13 Yes

Boiler Room Equipment $85,000 25 Years 3 Years $92,764 $25,170 Yes

Electric Panel $1,500 40 Years 18 Years $2,381 $96.43 Yes

Rear Building

Roof Tile $11,480 40 Years 5 Years $13,170 $2,205 Yes

(3) Roof Built Up New $46,200 20 Years 20 Years $77,088 $2,726 No


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Reserve Items

Current Cost

When New

Expected

Life WhenNew

Estimated

RemainingLife

First

ReplacementCost

Raw

AnnualPayment

Repeating

Item?


Rear Building 3rd Floor

Lighting common $500 20 Years 18 Years $794 $32.14 Yes

Paint Interior $4,260 8 Years 8 Years $5,267 $545 Yes

Ventilation $4,000 30 Years 5 Years $4,589 $768 Yes


Rear Parking

Paving 1 inch AC

Overlay$5,750 25 Years 11 Years $7,663 $559 Yes

Slurry Seal $1,472 5 Years 1 Year $1,528 $997 Yes

Fencing Chain Link 6 ft $900 40 Years 13 Years $1,261 $75.87 Yes

Carports Metal $76,500 25 Years 25 Years $144,623 $3,783 Yes

Recreation Center


Stucco Repairs $500 30 Years 28 Years $1,019 $22.66 Yes

HVAC $2,500 25 Years 20 Years $4,171 $148 Yes

Paving PCC sidewalks $500 30 Years 8 Years $618 $63.95 Yes

Pool Deck PCCConcrete

$11,000 15 Years 5 Years $12,620 $2,113 Yes

Pool Equipment $5,000 10 Years 3 Years $5,457 $1,481 Yes


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Initial Reserve: $201,005

Reserve Item Comments

(1) 20% of this building has been completed.

(2) 80% of the built up roof will have to completed in the next 3 years. There is a total of 36,000 sf of roof.

(3) 30% of the Roof is new.

(4) 70% of the roof will have to replaced in the next 3 years . There is a total of 22,000 sg of roofing.


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Lakeside Plaza HOA 2006 Reserve Study Expense Item Listing

Reserve Items Unit Cost No Units

Current

Cost

When New

Expected

Life

When

New

Estimated

Remaining

Life

Calendar

Year

Estimated

Future Cost

Raw

Annual

Payment

Common Area

[FR] PCC Walks $2,000 ea 1 $2,000 1 Year 1 Year

2007 $2,076 $1,355.05

2008 $2,129 $2,099.74

2009 $2,183 $2,152.84

PCC Walks $2,000 ea 1 $2,000 1 Year 1 Year

2010 $2,238 $2,207.28

2011 $2,294 $2,263.10

2012 $2,352 $2,320.33

2013 $2,412 $2,379.00

2014 $2,473 $2,439.17

2015 $2,536 $2,500.85

2016 $2,600 $2,564.09

2017 $2,665 $2,628.93

2018 $2,733 $2,695.41

2019 $2,802 $2,763.58

2020 $2,873 $2,833.46

2021 $2,945 $2,905.12

2022 $3,020 $2,978.58

2023 $3,096 $3,053.91

2024 $3,175 $3,131.14

2025 $3,255 $3,210.32

2026 $3,337 $3,291.50


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Lakeside Plaza HOA 2006 Reserve Study Expense Item Listing - Continued


Current

Cost

When New

Expected

LifeWhen

New

Estimated

Remaining

Life

CalendarYear

EstimatedFuture Cost

Raw

Annual

Payment

[FR] Slurry Seal $0.32 / ft 18500 ft $5,920 5 Years 1 Year 2007 $6,146 $4,010.94

Slurry Seal $0.32 / ft 18500 ft $5,920 5 Years 5 Year

2012 $6,963 $1,292.58

2017 $7,890 $1,464.49

2022 $8,939 $1,659.27

2027 $10,128 $1,879.95

2032 $11,475 $2,129.99

2037 $13,001 $2,413.28

Carports Metal $750 ea 17 $12,750 25 Years15 Years 2021 $18,777 $953.00

25 Years 2046 $35,057 $943.22


Roof Tile $3.50 / ft 462 ft $1,617 40 Years18 Years 2024 $2,567 $103.95

40 Years 2064 $6,970 $90.31

[FR] Stucco $500 / ft 1 ft $500 10 Years 0 Years 2006 $506 $254.73

Stucco $500 / ft 1 ft $500 10 Years 10 Years

2016 $650 $55.81

2026 $834 $71.64

2036 $1,071 $91.97

[FR] FenceWood

$25.00 / lf 25 lf $625 20 Years 3 Years 2009 $682 $185.07

F W d $25 00 / lf 25 lf $625 20 Y 20 Y2029 $1,124 $41.08


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Current

Cost

When New

Expected

LifeWhen

New

Estimated

Remaining

Life

CalendarYear


Raw

Annual

Payment

Boiler Room $85,000 ea 1 $85,000 25 Years 25 Years 2058 $315,382 $8,485.48

Front Building

Roof Tile $3.50 / ft 3280 ft $11,480 40 Years8 Years 2014 $14,195 $1,468.18

40 Years 2054 $38,546 $499.48Roof Built Up

New$7.00 / ft 7200 ft $50,400 20 Years 19 Years 2025 $82,022 $3,100.30

Roof Built Up

Old$7.00 / ft 28800 ft $201,600 20 Years

3 Years 2009 $220,015 $59,697.35

20 Years2029 $362,554 $13,251.98

2049 $597,440 $21,837.46

[FR] Stucco

Repairs

$15,000 ea 1 $15,000 30 Years 0 Years 2006 $15,188 $7,641.86

Stucco Repairs $15,000 ea 1 $15,000 30 Years 30 Years 2036 $32,129 $661.61

Fence Wood $25.00 / lf 1300 lf $32,500 20 Years

5 Years 2011 $37,285 $6,243.68

20 Years2031 $61,441 $2,245.77

2051 $101,246 $3,700.73

Wrought Iron $25.00 / lf 720 lf $18,000 40 Years10 Years 2016 $23,397 $1,898.47

40 Years 2056 $63,533 $823.27

Gutters $5.00 / lf 780 lf $3,900 30 Years8 Years 2014 $4,822 $498.77

30 Years 2044 $10,201 $210.06


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Current

Cost

When New

Expected

LifeWhen

New

Estimated

Remaining

Life

CalendarYear


Raw

Annual

Payment

Front Building 2nd Floor

Acoustic Ceiling $1.00 / ft 3700 ft $3,700 20 Years

8 Years 2014 $4,575 $473.19

20 Years2034 $7,539 $275.56

2054 $12,423 $454.09

Lighting

common$50.00 ea 10 $500 20 Years

8 Years 2014 $618 $63.95

20 Years2034 $1,019 $37.24

2054 $1,679 $61.36

Paint Interior $0.60 / ft 9120 ft $5,472 8 Years 8 Years

2014 $6,766 $699.82

2022 $8,262 $915.10

2030 $10,090 $1,117.47

2038 $12,321 $1,364.60

[FR] Carpet AQ $1.50 / ft 3700 ft $5,550 12 Years 0 Years 2006 $5,620 $2,827.49

Carpet AQ $1.50 / ft 3700 ft $5,550 12 Years 12 Years

2018 $7,583 $525.80

2030 $10,233 $709.53

2042 $13,809 $957.47

Front Building 3rd Floor

Lighting


13 Years 2019 $700 $42.15

20 Years 2039 $1,154 $42.19


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Current

Cost

When New

Expected

LifeWhen

New

Estimated

Remaining

Life

CalendarYear


Raw

Annual

Payment

Slurry Seal $0.32 / ft 41900 ft $13,408 5 Years 5 Year

2022 $20,245 $3,758.02

2027 $22,938 $4,257.84

2032 $25,989 $4,824.14

2037 $29,445 $5,465.75

Fencing ChainLink 6 ft

$30.00 / lf 30 lf $900 40 Years 13 Years 2019 $1,261 $75.87

40 Years 2059 $3,424 $44.37

Carports Metal $750 ea 110 $82,500 25 Years 25 Years2031 $155,966 $4,079.51

2056 $291,193 $7,834.64


Roof Tile $3.50 / ft 462 ft $1,617 40 Years

13 Years 2019 $2,265 $136.32

40 Years 2059 $6,151 $79.71

[FR] Stucco $500 ea 1 $500 10 Years 0 Years 2006 $506 $254.73

Stucco $500 ea 1 $500 10 Years 10 Years

2016 $650 $55.81

2026 $834 $71.64

2036 $1,071 $91.97

Lattice with

Arbor

$1,500 ea 1 $1,500 30 Years8 Years 2014 $1,855 $191.84

30 Years 2044 $3,923 $80.79

Fence Wood $25 00 / lf 25 lf $625 20 Years

8 Years 2014 $773 $79.93

2034 $1 273 $46 55


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Current

Cost

When New

Expected

LifeWhen

New

Estimated

Remaining

Life

CalendarYear


Raw

Annual

Payment

Rear Building

Roof Tile $3.50 / ft 3280 ft $11,480 40 Years5 Years 2011 $13,170 $2,205.46

40 Years 2051 $35,763 $463.43

Roof Built Up

New $7.00 ea 6600 $46,200 20 Years 20 Years 2026 $77,088 $2,726.40

Roof Built Up

Old$7.00 / ft 15400 ft $107,800 20 Years

3 Years 2009 $117,647 $31,921.50

20 Years2029 $193,866 $7,086.13

2049 $319,465 $11,676.98

[FR] Stucco

Repairs$10,000 / ft 1 ft $10,000 10 Years 0 Years 2006 $10,126 $5,094.57

Stucco Repairs $10,000 / ft 1 ft $10,000 10 Years 10 Years2016 $12,998 $1,116.192026 $16,686 $1,432.85

2036 $21,419 $1,839.34

Gutters $5.00 / lf 780 lf $3,900 30 Years8 Years 2014 $4,822 $498.77

30 Years 2044 $10,201 $210.06

Fence Wood $25.00 / lf 700 lf $17,500 20 Years

3 Years 2009 $19,099 $5,182.06

20 Years

2029 $31,472 $1,150.35

2049 $51,861 $1,895.61

Wrought Iron $20 00 / lf 1120 lf $22 400 40 Years13 Years 2019 $31,381 $1,888.37


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Current

CostWhen New

Expected

LifeWhen

New

Estimated

RemainingLife

CalendarYear


Raw

AnnualPayment

Floor Tile

Ceramic$8.00 / ft 1020 ft $8,160 30 Years

20 Years 2026 $13,616 $481.55

30 Years 2056 $28,802 $593.10

Rear Building 2nd Floor

Acoustic Ceiling $1.00 / ft 2600 ft $2,600 20 Years

8 Years 2014 $3,215 $332.52

20 Years2034 $5,298 $193.64

2054 $8,730 $319.09

Lighting


13 Years 2019 $700 $42.15

20 Years 2039 $1,154 $42.19

Paint Interior $0.60 / ft 7100 ft $4,260 8 Years 8 Years

2014 $5,267 $544.81

2022 $6,432 $712.41

2030 $7,855 $869.96

2038 $9,592 $1,062.36

[FR] Carpet AQ $1.50 / ft 2600 ft $3,900 12 Years 0 Years 2006 $3,949 $1,986.88

Carpet AQ $1.50 / ft 2600 ft $3,900 12 Years 12 Years

2018 $5,329 $369.48

2030 $7,191 $498.59

2042 $9,704 $672.81

Rear Building 3rd Floor

Lighting$50 00 ea 10 $500 20 Years

18 Years 2024 $794 $32.14


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Present Costs

Category Item Name No Units Unit Cost Present CostNet Present

Value

Depreciated

Value

Common AreaPCC Walks 1 $2,000.00 ea $2,000.00 $2,000.00 $0.00

Site lighting 1 $3,000.00 ea $3,000.00 $2,700.00 $300.00

Common Area Sub Total = $5,000.00 $4,700.00 $300.00

East Parking

Paving 1 inch AC

Overlay18500 ft $1.25 / ft $23,125.00 $10,175.00 $12,950.00

Slurry Seal 18500 ft $0.32 / ft $5,920.00 $1,184.00 $4,736.00

Carports Metal 17 $750.00 ea $12,750.00 $7,650.00 $5,100.00

East Parking Sub Total = $41,795.00 $19,009.00 $22,786.00


Roof Tile 462 ft $3.50 / ft $1,617.00 $727.65 $889.35

Stucco 1 ft $500.00 / ft $500.00 $0.00 $500.00

Fence Wood 25 lf $25.00 / lf $625.00 $93.75 $531.25Paint Fence 150 $0.60 ea $90.00 $54.00 $36.00

Electric Panel 1 $1,500.00 ea $1,500.00 $675.00 $825.00

Lattice with Arbor 1 $1,500.00 ea $1,500.00 $400.00 $1,100.00

Boiler Room

Equipment1 $85,000.00 ea $85,000.00 $6,800.00 $78,200.00

Front Boiler Building Sub Total = $90,832.00 $8,750.40 $82,081.60

Roof Tile 3280 ft $3.50 / ft $11,480.00 $2,296.00 $9,184.00

$ $ $ $


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Present Costs - Continued


Value

Depreciated

Value

Front Building 2ndFloor

Paint Interior 9120 ft $0.60 / ft $5,472.00 $5,472.00 $0.00

Carpet AQ 3700 ft $1.50 / ft $5,550.00 $0.00 $5,550.00

Front Building 2nd Floor Sub Total = $15,222.00 $7,152.00 $8,070.00

Front Building 3rd

Floor

Lighting common 10 $50.00 ea $500.00 $325.00 $175.00


Ventilation 4 $1,000.00 ea $4,000.00 $1,066.67 $2,933.33

Carpet AQ 3700 ft $1.50 / ft $5,550.00 $0.00 $5,550.00

Front Building 3rd Floor Sub Total = $15,522.00 $6,863.67 $8,658.33

North West Parking

Paving 1 inch AC

Overlay41900 ft $1.25 / ft $52,375.00 $23,045.00 $29,330.00

Slurry Seal 41900 ft $0.32 / ft $13,408.00 $2,681.60 $10,726.40

Fencing Chain Link6 ft

30 lf $30.00 / lf $900.00 $292.50 $607.50

Carports Metal 110 $750.00 ea $82,500.00 $82,500.00 $0.00

North West Parking Sub Total = $149,183.00 $108,519.10 $40,663.90


Roof Tile 462 ft $3.50 / ft $1,617.00 $525.53 $1,091.47

Stucco 1 $500.00 ea $500.00 $0.00 $500.00

Lattice with Arbor 1 $1,500.00 ea $1,500.00 $400.00 $1,100.00

Fence Wood 25 lf $25.00 / lf $625.00 $250.00 $375.00


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Value

Depreciated

Value

Rear Building 1stFloor

Elevator Equipment 1 $25,000.00 ea $25,000.00 $12,500.00 $12,500.00

Intercom System 1 $2,500.00 ea $2,500.00 $1,000.00 $1,500.00

Carpet AQ 2600 ft $1.50 / ft $3,900.00 $3,900.00 $0.00

Floor Tile Ceramic 1020 ft $8.00 / ft $8,160.00 $5,440.00 $2,720.00

Rear Building 1st Floor Sub Total = $43,820.00 $27,100.00 $16,720.00

Rear Building 2nd

Floor

Acoustic Ceiling 2600 ft $1.00 / ft $2,600.00 $1,040.00 $1,560.00



Carpet AQ 2600 ft $1.50 / ft $3,900.00 $0.00 $3,900.00

Rear Building 2nd Floor Sub Total = $11,260.00 $5,625.00 $5,635.00

Rear Building 3rd

Floor



Ventilation 4 $1,000.00 ea $4,000.00 $666.67 $3,333.33

Carpet AQ 2600 ft $1.50 / ft $3,900.00 $0.00 $3,900.00

Rear Building 3rd Floor Sub Total = $12,660.00 $5,376.67 $7,283.33

Rear Parking

Paving 1 inch AC

Overlay4600 ft $1.25 / ft $5,750.00 $2,530.00 $3,220.00

Slurry Seal 4600 ft $0.32 / ft $1,472.00 $294.40 $1,177.60

Fencing Chain Link30 lf $30 00 / lf $900 00 $292 50 $607 50


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Value

Depreciated

Value

Recreation Center Hot Water Boiler 1 $25,000.00 ea $25,000.00 $4,000.00 $21,000.00

Recreation Center Sub Total = $65,890.00 $19,608.67 $46,281.33

South Parking

Paving 1 inch AC

Overlay4600 ft $1.25 / ft $5,750.00 $5,290.00 $460.00

Slurry Seal 4600 ft $0.32 / ft $1,472.00 $883.20 $588.80

PCC Curbs 300 ft $5.50 / ft $1,650.00 $440.00 $1,210.00

Fencing Chain Link

6 ft30 lf $30.00 / lf $900.00 $405.00 $495.00

Carports Metal 52 $750.00 ea $39,000.00 $23,400.00 $15,600.00

South Parking Sub Total = $48,772.00 $30,418.20 $18,353.80

Total of All Costs Above = $1,351,342.00 $560,343.14 $790,998.86


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Lakeside Plaza HOA 2006 Funding Study Cash Flow Analysis

Calendar

Year

Annual

Payment

Annual

Interest

Total

Salvage

Annual

Expenses

Annual

Income Tax

Net Reserve

Funds% Funded

2006 $88,896 $3,591 $45,555 $1,077 $246,860 26.0 %2007 $177,792 $9,974 $23,670 $2,992 $407,963 41.3 %

2008 $177,792 $14,874 $92,605 $4,462 $503,562 48.0 %

2009 $165,609 $17,613 $468,980 $5,284 $212,519 20.3 %

2010 $165,609 $8,760 $30,211 $2,628 $354,049 52.1 %

2011 $114,995 $12,363 $70,062 $3,709 $407,636 54.0 %

2012 $114,995 $13,993 $26,818 $4,198 $505,608 63.8 %

2013 $111,980 $16,931 $2,412 $5,079 $627,028 71.7 %2014 $111,980 $20,624 $93,495 $6,187 $659,950 67.3 %

2015 $110,246 $21,602 $3,486 $6,480 $781,830 78.2 %

2016 $110,246 $25,309 $40,411 $7,593 $869,381 78.5 %

2017 $108,808 $27,952 $138,667 $8,386 $859,088 72.7 %

2018 $108,808 $27,639 $40,445 $8,292 $946,798 81.6 %

2019 $107,890 $30,294 $137,319 $9,088 $938,574 75.7 %

2020 $107,890 $30,044 $2,873 $9,013 $1,064,622 86.7 %

2021 $106,670 $33,860 $138,198 $10,158 $1,056,796 78.3 %

2022 $106,670 $33,622 $78,511 $10,087 $1,108,490 82.6 %

2023 $108,418 $35,219 $3,096 $10,566 $1,238,465 88.8 %

2024 $108,418 $39,172 $98,536 $11,752 $1,275,767 83.7 %

2025 $106,793 $40,284 $86,497 $12,085 $1,324,262 84.8 %

2026 $106,793 $41,759 $139,242 $12,528 $1,321,044 82.1 %

2027 $104,312 $41,627 $39,005 $12,488 $1,415,490 88.5 %

2028 $104,312 $44,500 $3,508 $13,350 $1,547,443 91.4 %

2029 $112 129 $48 622 $630 292 $14 586 $1 063 314 58 4 %


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Lakeside Plaza HOA 2006 Reserve Payment Summary

Projected Payments by Month and by Calendar Year

Calendar

Year

Member

Monthly

Operations

Payment

Member

Monthly

Reserve

Payment

Member Total

Monthly

Payment

Member Total

Annual

Payment

Monthly

Reserve

Payment

Annual

Reserve

Payment

2006 NA $14,815.99 NA NA $14,816 $88,896

2007 NA $14,815.99 NA NA $14,816 $177,792

2008 NA $14,815.99 NA NA $14,816 $177,792

2009 NA $13,800.72 NA NA $13,801 $165,609

2010 NA $13,800.72 NA NA $13,801 $165,609

2011 NA $9,582.94 NA NA $9,583 $114,995

2012 NA $9,582.94 NA NA $9,583 $114,995

2013 NA $9,331.63 NA NA $9,332 $111,980

2014 NA $9,331.63 NA NA $9,332 $111,980

2015 NA $9,187.16 NA NA $9,187 $110,246

2016 NA $9,187.16 NA NA $9,187 $110,246

2017 NA $9,067.32 NA NA $9,067 $108,8082018 NA $9,067.32 NA NA $9,067 $108,808

2019 NA $8,990.84 NA NA $8,991 $107,890

2020 NA $8,990.84 NA NA $8,991 $107,890

2021 NA $8,889.15 NA NA $8,889 $106,670

2022 NA $8,889.15 NA NA $8,889 $106,670

2023 NA $9,034.80 NA NA $9,035 $108,418

2024 NA $9,034.80 NA NA $9,035 $108,418

2025 NA $8,899.42 NA NA $8,899 $106,793


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Lakeside Plaza HOA 2006 Funding Stud y - Expenses b y Item and by Calendar Year

Item Descr ipt ion 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Reserve Category : Comm on Area

PCC Walks $2,076 $2,129 $2,183 $2,238 $2,294 $2,352 $2,412 $2,473 $2,536 $2,600 $2,665 $2,733 $2,802 $2,873 $2,945

Site lighting

Category Subtotal : $2,076 $2,129 $2,183 $2,238 $2,294 $2,352 $2,412 $2,473 $2,536 $2,600 $2,665 $2,733 $2,802 $2,873 $2,945

Reserve Category : East Parking

Paving 1 inch AC Overlay $30,819

Slurry Seal $6,146 $6,963 $7,890

Carports Metal $18,777

Category Subtotal : $6,146 $6,963 $38,709 $18,777

Reserve Category : Front Boiler Building

Roof Tile

Stucco $506 $650

Fence Wood $682

Paint Fence $98 $111 $126

Electric Panel

Lattice with Arbor $1,855

Boiler Room Equipment $90,476

Category Subtotal : $506 $90,476 $780 $1,966 $650 $126

Reserve Category : Front Building

Roof Tile $14,195

Roof Built Up New

Roof Built Up Old $220,015

Stucco Repairs $15,188

Fence Wood $37,285

Wrought Iron $23,397

Gutters $4,822

Electric Panel $75,651

Category Subtotal : $15,188 $220,015 $37,285 $19,017 $23,397 $75,651

Reserve Category : Front Building 1st Floor

Elevator Equipment $22,090

Carpet AQ $6,559

Intercom System

Paint Interior $6,766

Page 30 of 37 PagesTuesday, May 16, 2006

AFI Pro V3.5221

Copyright IME 2001-2005

www.afiprofessional.com

Prepared by Resource 1 BC LLC


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Lakeside Plaza HOA 2006 Funding Stud y Expenses by Calendar Year - Continued


Category Subtotal : $6,766 $6,559 $22,090

Reserve Category : Front Building 2nd Floor

Acoustic Ceiling $4,575

Lighting common $618


Carpet AQ $5,620 $7,583


Reserve Category : Front Building 3rd Floor



Ventilation $4,946

Carpet AQ $5,620 $7,583

Category Subtotal : $5,620 $11,712 $7,583 $700

Reserve Category : North West Parking


Slurry Seal $13,920 $15,771 $17,869

Fencing Chain Link 6 ft $1,261

Carports Metal


Reserve Category : Rear Boiler Building

Roof Tile $2,265

Stucco $506 $650

Lattice with Arbor $1,855

Fence Wood $773

Paint Fence $91 $103 $117 $133


Electric Panel

Category Subtotal : $597 $92,764 $103 $2,628 $767 $2,265 $133

Reserve Category : Rear Building

Roof Tile $13,170

Roof Built Up New


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Stucco Repairs $10,126 $12,998

Gutters $4,822

Fence Wood $19,099

Wrought Iron $31,381

Electric Panel


Reserve Category : Rear Building 1st Floor


Elevator Equipment $36,817

Intercom System $3,091

Carpet AQ $5,329

Floor Tile Ceramic


Reserve Category : Rear Building 2nd Floor




Carpet AQ $3,949 $5,329

Category Subtotal : $3,949 $8,482 $5,329 $700

Reserve Category : Rear Building 3rd Floor

Lighting common


Ventilation $4,589

Carpet AQ $3,949 $5,329


Reserve Category : Rear Parking


Slurry Seal $1,528 $1,731 $1,962


Carports Metal



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Reserve Category : Recreat ion Center

Roof Tile $4,328

Stucco Repairs

HVAC

Paving PCC sidewalks $618

Pool Deck PCC Concrete $12,620

Pool Equipment $5,457 $7,005

Pool Filter $951

Pool Resurface $9,429 $12,104

Wrought Iron

Bathroom Fixtures $1,236

Electric Panel

Hot Water Boiler $27,974

Category Subtotal : $14,886 $27,974 $12,620 $6,182 $951 $19,109

Reserve Category : South Parking

Paving 1 inch AC Overlay

Slurry Seal $1,606 $1,820 $2,062

PCC Curbs $2,040

Fencing Chain Link 6 ft



Expense Totals : $45,555 $23,670 $92,605 $468,980 $30,211 $70,062 $26,818 $2,412 $93,495 $3,486 $40,411 $138,667 $40,445 $137,319 $2,873 $138,198


AFI Pro V3.5221





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p y ,


Item Descr ipt ion 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036

Reserve Category : Comm on Area

PCC Walks $3,020 $3,096 $3,175 $3,255 $3,337 $3,422 $3,508 $3,597 $3,688 $3,781 $3,877 $3,975 $4,075 $4,178 $4,284

Site lighting $4,762

Category Subtotal : $3,020 $3,096 $7,937 $3,255 $3,337 $3,422 $3,508 $3,597 $3,688 $3,781 $3,877 $3,975 $4,075 $4,178 $4,284

Reserve Category : East Parking


Slurry Seal $8,939 $10,128 $11,475

Carports Metal


Reserve Category : Front Boiler Building

Roof Tile $2,567

Stucco $834 $1,071

Fence Wood $1,124

Paint Fence $143 $162 $183


Lattice with Arbor


Category Subtotal : $5,091 $834 $1,286 $168,922 $183 $1,071

Reserve Category : Front Building

Roof Tile

Roof Built Up New $82,022



Fence Wood $61,441

Wrought Iron

Gutters

Electric Panel


Reserve Category : Front Building 1st Floor

Elevator Equipment

Carpet AQ $8,851



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Paint Interior $8,262 $10,090


Reserve Category : Front Building 2nd Floor


Lighting common $1,019


Carpet AQ $10,233


Reserve Category : Front Building 3rd Floor

Lighting common


Ventilation

Carpet AQ $10,233

Category Subtotal : $8,262 $20,323

Reserve Category : North West Parking


Slurry Seal $20,245 $22,938 $25,989




Reserve Category : Rear Boiler Building

Roof Tile

Stucco $834 $1,071

Lattice with Arbor

Fence Wood $1,273

Paint Fence $150 $170 $193



Category Subtotal : $2,381 $984 $170 $174,467 $1,264

Reserve Category : Rear Building

Roof Tile


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Roof Built Up New $77,088


Stucco Repairs $16,686 $21,419

Gutters

Fence Wood $31,472

Wrought Iron



Reserve Category : Rear Building 1st Floor


Elevator Equipment


Carpet AQ $7,191

Floor Tile Ceramic $13,616


Reserve Category : Rear Building 2nd Floor


Lighting common


Carpet AQ $7,191


Reserve Category : Rear Building 3rd Floor



Ventilation

Carpet AQ $7,191

Category Subtotal : $6,432 $794 $15,046

Reserve Category : Rear Parking


Slurry Seal $2,223 $2,518 $2,853




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Reserve Category : Recreat ion Center

Roof Tile


HVAC $4,171

Paving PCC sidewalks

Pool Deck PCC Concrete $18,354

Pool Equipment $8,992

Pool Filter $1,221 $1,567

Pool Resurface $15,538

Wrought Iron $9,524

Bathroom Fixtures


Hot Water Boiler $52,227


Reserve Category : South Parking


Slurry Seal $2,336 $2,647 $2,999

PCC Curbs


Carports Metal


Expense To tals : $78,511 $3,096 $98,536 $86,497 $139,242 $39,005 $3,508 $630,292 $108,412 $365,980 $44,193 $172,896 $201,693 $57,972 $60,167


AFI Pro V3.5221



Documents

FBI ALERT: Reserve Study - No "Embezzlement Assessment" Required of Lakeside Plaza Condominium Association