Shorewood Community Association, Inc. Cape Canaveral, FL · replacement date, and current cost to repair/replace. The useful and remaining lives of the building components in this

A RESERVE STUDY UPDATE FOR

Shorewood

Community Association, Inc.

Cape Canaveral, FL File # RU05932

FOR PERIOD: January 1, 2020 – December 31, 2020

PREPARED BY

SEDGWICK VALUATION SERVICES

3300 W. LAKE MARY BLVD.

SUITE 350

LAKE MARY, FLORIDA 32746-3405

(800) 248-3376 Ext. 257

(407) 805-0086 Ext. 257

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3300 W. Lake Mary Blvd.

Suite 350

Lake Mary, FL 32746-3405

T: 800-248-3376 x 257

F: 407-805-9921

Email: [email protected] On-Line: www.gabvalue.com

December 2, 2019

Shorewood Community Association, Inc.

Attn: Mr. Scott Headrick, CAM, CMCA, AMS

C/o Keys Property Management Enterprise, Inc.

5505 North Atlantic Avenue, #207

Cocoa Beach, FL 32931

Dear Mr. Headrick,

On September 6, 2011, we completed an initial on-site inspection of Shorewood Community

Association, Inc.'s common area reserve items. Data gleaned from this inspection was utilized in the

completion of an original reserve study report published on November 8, 2011 and subsequent reports

published on October 8, 2012, November 13, 2013, August 26, 2014, and October 20, 2017. This

reserve study report is an update of those previous reserve study reports, which was accepted as accurate

and reliable by the association representatives. A Sedgwick Valuation Services representative did not re-

inspect the common area reserve items for use in completion of this update reserve study report.

The intent of this report is to show cash reserves necessary for the future repair or replacement of

expendable components incorporated into the subject property. The purpose of this report is to aid

Shorewood Community Association, Inc. in making a determination for cash reserves that are needed to

repair or replace short-lived building and/or site components.

The report identifies each component selected, it’s estimated useful life, adjusted life, scheduled

replacement date, and current cost to repair/replace. The useful and remaining lives of the building

components in this study, as well as the current replacement costs, have been selected from market

standards, cost estimating services, and consideration of actual recent costs incurred by the association

for reserve upgrades. This report is classified as an update reserve study with no site visit under the

guidelines of the National Reserve Study Standards of the Community Associations Institute, and

conforms to the Community Associations Institute Professional Reserve Specialist Code of Ethics. The

Reserve Analyst/Specialist and Sedgwick Valuation Services have no relationships with the association

that would result in actual or perceived conflicts of interest.

This report is our opinion and based upon observed conditions and state of repair. Actual determinations

of the current conditions and state of repair for certain items may be beyond the scope of this report.

Items may not last as long as projected or may exceed their estimated lives, and actual costs may not

correspond to our included estimates. Influences such as weather, catastrophe, improper maintenance,

physical abuse, or abnormal use can affect these lives and/or replacement costs. When such occurrences

happen, another inspection should be made and a new revised study prepared. While we have attempted

to create a useful tool for the association to plan their needs, the actual reserves set aside are solely at the

association’s discretion. The findings of this study are not for use in performing an audit,

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quality/forensic analyses, or background checks of historical records. In completing this report, the

reserve analyst/specialist utilized information taken from the original inspection and reserve study

report. Financial data, including the estimated reserve fund balance as of the analysis date, and property

histories, provided by you, were utilized in the completion of this report. This data was not audited, and

was assumed to be complete and correct. Unless otherwise specified, the reserve analyst/specialist

estimated the repair/replacement costs and useful/remaining useful lives taking into account

contingencies inherent to this type of work, and the report was prepared utilizing the information

gathered in the field and the costs and useful lives estimated by the reserve analyst/specialist.

Respectfully submitted,

Sedgwick Valuation Services

Patrick Conners

Reserve Analyst

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Table of Contents

Project Overview ............................................................................................................................................. 5 Reserve Study Funding Analysis ....................................................................................................................... 6 Executive Summary ......................................................................................................................................... 8 Reserve Budget Comparison ............................................................................................................................ 9 Cash Flow Analysis ........................................................................................................................................ 10 Item Parameter - Category - Chart ................................................................................................................. 11 Item Parameters - Detail ............................................................................................................................... 12 Item Parameters - Full Detail ......................................................................................................................... 17 Expenditures................................................................................................................................................. 71 Cash Flow - Chart ......................................................................................................................................... 79 Cash Flow - Annual ....................................................................................................................................... 80 Cash Flow - Monthly ...................................................................................................................................... 82 Supplementary Information ........................................................................................................................... 96 Reserve Disclosures .................................................................................................................................... 100 Addendum .................................................................................................................................................. 101 Chapter 718 & 719 Florida Statutes .............................................................................................................. 102 Terms and Definition ................................................................................................................................... 108

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PROJECT OVERVIEW

Project Overview The subject of this reserve study report is the common areas within Shorewood Community Association,

Inc., a 196 unit residential development located in Cape Canaveral, Florida. The common areas were

constructed at or near 1996, and include (7) five story residential buildings (4-24 units, 2-32 units, and 1-36

units) a clubhouse, guardhouse, security access systems and barrier gates, gazebo, swimming pool, spa,

tennis courts, shuffleboard court, street/site lighting, perimeter fencing, lift stations, boardwalk, concrete

paved roadways and parking areas, concrete sidewalks and curbing, and signage.

The buildings are of concrete block/stucco construction, with painted stucco exteriors and a combination of

pitched metal and coated SPF roofing. The common area interiors are representative of a good quality

property, with tile flooring, painted gypsum board interior walls and ceilings, good quality built ins

(doors/frames, cabinetry, countertops, vanities, etc., and plumbing and electrical fixtures), and inventories of

good quality furniture/furnishings and residential grade fitness equipment. Air conditioning is via split

HVAC systems, with interior air handlers and exterior condensers.

The subject property is supported by a fire alarm/sprinkler system, fire pump, hydraulic elevators, domestic

water pumps/equipment, boilers, circulation pumps, lift stations with associated pumps. The adjacent pool

and spa are of standard concrete/aggregate construction, and are supported by paver decking, perimeter

fencing and gates, and inventories of equipment and deck furniture. The tennis courts are asphalt paved, with

lighting, perimeter fencing and gates.

As of the date of our latest physical inspection, the common areas were observed to be in average overall

condition, and appear to have been well maintained. No items of significant deferred maintenance were

noted.

Reserves are only calculated for the replacement of short-lived building or site components. This includes

components that require replacement prior to the overall estimated end life of the buildings or structures.

This report is designed to provide reasonable, appropriate budgetary cost and useful life data based on

market standards for the subject’s property type and in compliance with Florida statutes. Florida Statutes

require consideration for roofs, exterior paint and/or waterproofing, pavement and all items that have an

estimated repair or replacement cost above $10,000. We are unaware of any private reserve requirements.

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RESERVE STUDY FUNDING ANALYSIS Reserve Study Funding Analysis

There are two generally accepted means of estimating reserves; the Cash Flow Analysis and the

Component Funding Analysis methodologies. The Cash Flow Analysis (or Pooling Method) is a

method of calculating reserve contributions where contributions to the reserve funds are designed to

offset the variable annual expenditures from the reserve fund. This analysis recognizes interest income

attributable to reserve accounts over the period of the analysis. Funds from the beginning balances are

pooled together and a yearly contribution rate is calculated to arrive at a positive cash flow and reserve

account balance to adequately fund the future projected expenditures throughout the period of the

analysis.

Prior to December 23, 2002, Florida statute mandated that condominium associations calculate reserves

via the Component Funding Analysis method, on an annual basis. Funding at less than 100% of the

fully funded estimate, based on the Component Funding Analysis method, could occur only after a full

vote of the association membership. As of December 23, 2002, amendments to the Florida

Administrative Code recognize the Cash Flow Analysis method as an approved methodology for the

calculation of reserve funding for condominium associations. The fund requirement estimated by the

Cash Flow Analysis method can now be provided to the membership, on an annual basis as a fully

funded figure. The analysis must be completed as a portion of the association's annual budget, include

the total estimated useful lives, estimated remaining useful lives, and estimated replacement

cost/deferred maintenance expenses of all assets in the reserve budget (minimum roofing, painting,

paving and any other item with a replacement/repair cost over $10,000), and the estimated fund balance

of the pooled reserve account as of the beginning of the period for which the budget will be in effect.

If the association maintains a pooled account for reserves, the amount of the contribution to the pooled

reserve account as disclosed on the proposed budget shall be not less than that required to ensure that the

balance on hand at the beginning of the period for which the budget will go into effect plus the projected

annual cash inflows over the remaining estimated useful lives of all of the assets that make up the

reserve pool are equal to or greater than the projected annual cash outflows over the remaining estimated

useful lives of all of the assets that make up the reserve pool, based on the current reserve analysis. The

projected annual cash inflows may include estimated earnings from investment of principal; the

association may include annual percentage increases in costs for the reserve components, but these

increases are not mandated. Fully funded reserve contributions utilizing this methodology may not

include future special assessments, and the annual funding levels cannot include percentage increases.

In our Cash Flow Analysis calculations, we do not include increases in construction costs/inflation.

While future costs are expected to be higher than today’s costs, which is supported by our analysis of

past indexes/trends, increases in costs should be recognized as the association estimates current

repair/replacement costs during their annual calculations of full reserve funding. A current cost estimate

during the current fiscal year would theoretically be lower than a current cost for future fiscal years.

That way the estimates of current cost moving forward will eventually represent current cost as of the

date of forecast expenditure. Funding the reserves annually on that basis should ensure that adequate

monies are available as of the date of expense, assuming that the current cost estimate is appropriate and

that the reserve was fully funded since its last repair/replacement project was completed.

The Component Funding Analysis (or Straight Line Method) calculates the annual contribution

amount for each individual line item component by dividing the component’s unfunded balance by its

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remaining useful life. A component’s unfunded balance is its replacement cost less the reserve balance

in the component at the beginning of the analysis period. The annual contribution rate for each

individual line item component is then summed to calculate the total annual contribution rate for this

analysis.

EXECUTIVE SUMMARY Executive Summary

PROPERTY DATA

Property Name: Shorewood Community Association, Inc.

Property Location: Cape Canaveral, FL Report Run Date: December 2, 2019

Property Type: CA Budget Year Begins: January 1, 2020

Total Units: 196 Budget Year Ends: December 31, 2020

PROJECTED COMPONENT CATEGORIES AND PARAMETERS

1. Common Area Interiors

2. Elevators

3. Fencing

4. Fire Safety Systems

5. Hot Water Equipment

6. Miscellaneous

7. Painting

8. Paving

9. Recreation

10. Restoration

11. Roofing

Total current cost of all reserve components in reserve analysis: $ 6,748,294

Estimated beginning reserve fund balance for reserve analysis: $ 1,972,993

Total number of components scheduled for replacement in the 2020 budget year: 6

Total cost of components scheduled for replacement in the 2020 budget year: $ 479,408

ANALYSIS RESULTS –CASH FLOW ANALYSIS

Current annual reserve funding contribution amount (2019 Budget): $ 74,640

Our recommended annual reserve funding contribution amount: $ 350,004

Increase (decrease) between current and recommended annual contribution amounts: $ 275,364

Increase (decrease) between current and recommended annual contribution amounts: 368.9%

It has been reported that the association is utilizing the Pooled Funding (Cash-Flow) Funding

methodology. Therefore, the Component Funding Analysis has not been included in the report.

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RESERVE BUDGET COMPARISON

Reserve Budget Comparison The previous page provides a comparison of the association’s approved fiscal year 2019 reserve

contribution level and our estimates for full reserve funding for fiscal year 2020. The funding

requirement estimated for fiscal year 2020 via the Cash Flow Analysis is significantly higher than the

association’s approved fiscal year 2019 contribution level.

Based on the Cash Flow Analysis methodology, the association can fully fund the reserves as analyzed

in this report at $350,004 in fiscal year 2020. In this analysis we have utilized a 1.50% rate of return on

reserve funds invested over the study period (assuming safe investment in CDs, money market accounts,

etc.). The Cash Flow Analysis utilizes a pooling effect with reserve funds by pooling all funds together

and distributing these funds to individual components as their replacement comes due. Funds that are

pooled together in the cash flow analysis include the beginning balance, contributions to the reserve

funds and interest earned on reserve funds. These pooled funds are matched against reserve expenditures

throughout the period of the analysis by using our reserve analysis software program to ensure that the

available funds are always greater than expenditures.

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CASH FLOW ANALYSIS Cash Flow Analysis

Analysis Date - January 1, 2020 Inflation:0.00% Investment:1.50% Contribution Factor:0.00% Calc:Current

PRN:12/02/2019 GAB Robins - License # P091133 Page 11 of 111 Advanced World Concepts, Inc. Copyright 1989 - 2019 All Rights Reserved

Item Parameter - Category - Chart

Shorewood Community Association, Inc. Analysis Date - January 1, 2020 Inflation:0.00% Investment:1.50% Contribution Factor:0.00% Calc:Current


Item Parameters - Detail Items Service Adj Rem Reserve Item Code Desc. Date Basis Cost Quantity Current Cost Life Life Future Cost Common Area Interiors Fitness Equip., Bikes 920-001-0026 01/01/1996 $ 1,321.00 1 bikes $ 1,321 24:00 0:00 $ 1,321 Fitness Equip., Bikes 920-002-0026 01/01/2010 1,321.00 1 bikes 1,321 10:00 0:00 1,321 Fitness Equip., Elliptical 910-000-0025 08/01/2011 1,228.00 1 Lump 1,228 15:00 6:07 1,228 Fitness Equip., Treadmills 920-001-0024 06/01/2012 2,485.00 1 Lump 2,485 15:00 7:05 2,485 Fitness Equip., Treadmills 920-002-0024 06/01/2012 2,485.00 1 Lump 2,485 15:00 7:05 2,485 Fitness Equip., Treadmills 920-003-0024 06/01/2012 2,485.00 1 Lump 2,485 15:00 7:05 2,485 Fitness Equip., Universal Gym 910-000-0023 01/01/1996 2,899.00 1 Lump 2,899 24:00 0:00 2,899 Flooring, Fitness Center 910-000-0029 01/01/2009 6.75 600 sq. ft. 4,050 15:00 4:00 4,050 Flooring, Tile (Clubhouse) 910-000-0028 06/01/1996 12.00 1,250 Sq. Ft 15,000 27:00 3:05 15,000 Flooring, Tile (Lobbies) 910-000-0027 06/01/1996 12.00 1,775 Sq. Ft 21,300 32:07 9:00 21,300 Furnishings/Finishes, Lobbies 910-000-0030 11/01/2013 13,710.00 1 total 13,710 14:00 7:10 13,710 Furniture/Furnishings, Clubhouse 910-000-0021 10/01/2011 13,710.00 1 Lump 13,710 14:00 5:09 13,710 $ 81,994 $ 81,994 Elevators Elevator Clean Down 910-000-0063 06/01/2015 $ 12,290.00 1 total $ 12,290 18:00 13:05 $ 12,290 Elevator Mechanical Modernization 920-001-0031 Bldg. A 01/01/2016 64,425.00 1 Cab 64,425 25:00 21:00 64,425 Elevator Mechanical Modernization 920-002-0031 Bldg. B 01/01/2016 64,425.00 1 Cab 64,425 25:00 21:00 64,425 Elevator Mechanical Modernization 920-003-0031 Bldg. C 01/01/2016 64,425.00 1 Cab 64,425 25:00 21:00 64,425 Elevator Mechanical Modernization 920-004-0031 Bldg. D 01/01/2016 64,425.00 1 Cab 64,425 25:00 21:00 64,425 Elevator Mechanical Modernization 920-005-0031 Bldg. E 01/01/2016 64,425.00 1 Cab 64,425 25:00 21:00 64,425 Elevator Mechanical Modernization 920-006-0031 Bldg. F 01/01/2016 64,425.00 1 Cab 64,425 25:00 21:00 64,425 Elevator Mechanical Modernization 920-007-0031 Bldg. G 01/01/2016 64,425.00 1 Cab 64,425 25:00 21:00 64,425 $ 463,265 $ 463,265 Fencing Perimeter Fencing 910-000-0035 01/01/2008 $ 39.59 1,400 Ln Ft $ 55,426 25:00 13:00 $ 55,426 $ 55,426 $ 55,426 Fire Safety Systems Fire Alarm System Controllers 910-000-0012 11/01/2011 $ 5,201.00 8 Each $ 41,608 25:00 16:10 $ 41,608 Fire Pump Repair/Replacement 910-000-0014 12/01/2011 34,190.00 1 Lump 34,190 14:00 5:11 34,190 Fire System Water 910-000-0068 01/01/1996 50,000.00 1 total 50,000 26:00 2:00 50,000 $ 125,798 $ 125,798



Item Parameters - Detail Items Service Adj Rem Reserve Item Code Desc. Date Basis Cost Quantity Current Cost Life Life Future Cost Hot Water Equipment Boilers Replacement 920-001-0040 Bldg. A 06/01/2012 $ 6,691.00 2 Each $ 13,382 16:00 8:05 $ 13,382 Boilers Replacement 920-002-0040 Bldg. B 12/01/2008 6,691.00 2 Each 13,382 16:00 4:11 13,382 Boilers Replacement 920-003-0040 Bldg. C 02/01/2007 6,691.00 2 Each 13,382 16:00 3:01 13,382 Boilers Replacement 920-004-0040 Bldg. D 01/01/2007 6,691.00 2 Each 13,382 16:00 3:00 13,382 Boilers Replacement 920-005-0040 Bldg. E 01/01/2008 6,691.00 2 Each 13,382 16:00 4:00 13,382 Boilers Replacement 920-006-0040 Bldg. F 05/01/2008 6,691.00 2 Each 13,382 16:00 4:04 13,382 Boilers Replacement 920-007-0040 Bldg. G 06/01/2012 6,691.00 2 Each 13,382 16:00 8:05 13,382 Circulation Pumps Repair/Replace 910-000-0041 06/01/2010 1,884.00 7 Lump 13,188 12:00 2:05 13,188 $ 106,862 $ 106,862 Miscellaneous Domestic Water Panel/Equip. 920-001-0051 01/01/1996 $ 14,298.00 1 Bldg. $ 14,298 26:00 2:00 $ 14,298 Domestic Water Panel/Equip. 920-002-0051 01/01/1996 14,298.00 1 Bldg. 14,298 26:00 2:00 14,298 Domestic Water Panel/Equip. 920-003-0051 01/01/1996 14,298.00 1 Bldg. 14,298 26:00 2:00 14,298 Domestic Water Panel/Equip. 920-004-0051 01/01/1996 14,298.00 1 Bldg. 14,298 28:00 4:00 14,298 Domestic Water Panel/Equip. 920-005-0051 01/01/1996 14,298.00 1 Bldg. 14,298 28:00 4:00 14,298 Domestic Water Panel/Equip. 920-006-0051 01/01/1996 14,298.00 1 Bldg. 14,298 28:00 4:00 14,298 Domestic Water Panel/Equip. 920-007-0051 01/01/1996 14,298.00 1 Bldg. 14,298 28:00 4:00 14,298 Domestic Water Pumps Allowance 910-000-0052 06/01/2016 1,412.00 4 Each 5,648 5:00 1:05 5,648 HVAC Air Handlers 920-001-0039 Bldg. A 06/01/2013 1,376.00 1.5 Tons 2,064 20:00 13:05 2,064 HVAC Air Handlers 920-002-0039 Bldg. B 06/01/2013 1,376.00 1.5 Tons 2,064 20:00 13:05 2,064 HVAC Air Handlers 920-003-0039 Bldg. C 06/01/2013 1,376.00 1.5 Tons 2,064 20:00 13:05 2,064 HVAC Air Handlers 920-004-0039 Bldg. D 06/01/2011 1,376.00 1.5 Tons 2,064 20:00 11:05 2,064 HVAC Air Handlers 920-005-0039 Bldg. E 06/01/1996 1,376.00 1.5 Tons 2,064 26:00 2:05 2,064 HVAC Air Handlers 920-006-0039 Bldg. F 06/01/2011 1,376.00 1.5 Tons 2,064 20:00 11:05 2,064 HVAC Air Handlers 920-007-0039 Bldg. G 01/01/1996 1,376.00 1.5 Tons 2,064 26:00 2:00 2,064 HVAC Air Handlers 920-008-0039 Clubhouse 01/01/1996 1,376.00 1.5 Tons 2,064 26:00 2:00 2,064 HVAC Air Handlers 920-009-0039 Gym 06/01/2013 1,376.00 1.5 Tons 2,064 20:00 13:05 2,064 HVAC Air Handlers 920-010-0039 Shop 01/01/1996 1,376.00 1.5 Tons 2,064 26:00 2:00 2,064 HVAC Condensers 920-001-0038 Bldg. A 06/01/2013 1,518.00 1.5 Tons 2,277 12:00 5:05 2,277 HVAC Condensers 920-002-0038 Bldg. B 06/01/2013 1,518.00 1.5 Tons 2,277 12:00 5:05 2,277 HVAC Condensers 920-003-0038 Bldg. C 06/01/2013 1,518.00 1.5 Tons 2,277 12:00 5:05 2,277 HVAC Condensers 920-004-0038 Bldg. D 06/01/2011 1,518.00 1.5 Tons 2,277 12:00 3:05 2,277



Item Parameters - Detail Items Service Adj Rem Reserve Item Code Desc. Date Basis Cost Quantity Current Cost Life Life Future Cost Miscellaneous HVAC Condensers 920-005-0038 Bldg. E 06/01/2010 $ 1,518.00 1.5 Tons $ 2,277 12:00 2:05 $ 2,277 HVAC Condensers 920-006-0038 Bldg. F 06/01/2011 1,518.00 1.5 Tons 2,277 12:00 3:05 2,277 HVAC Condensers 920-007-0038 Bldg. G 07/01/2010 1,518.00 1.5 Tons 2,277 12:00 2:06 2,277 HVAC Condensers 920-008-0038 Clubhouse 09/01/2010 1,518.00 1.5 Tons 2,277 12:00 2:08 2,277 HVAC Condensers 920-009-0038 Gym 06/01/2013 1,518.00 1.5 Tons 2,277 12:00 5:05 2,277 HVAC Condensers 920-010-0038 Shop 08/01/2010 1,518.00 1.5 Tons 2,277 12:00 2:07 2,277 Lift Stations Modernization 920-001-0043 01/01/1996 8,517.00 1 Lump 8,517 24:00 0:00 8,517 Lift Stations Modernization 920-002-0043 01/01/1996 8,517.00 1 Lump 8,517 26:00 2:00 8,517 Lighting, Parking Lot 910-000-0037 01/01/1996 19,410.00 1 Lump 19,410 25:00 1:00 19,410 Plumbing Allowance 910-000-0067 01/01/1996 100,000.00 1 total 100,000 33:00 9:00 100,000 Security Barrier Gates 910-000-0034 01/01/2006 4,712.00 5 Each 23,560 16:00 2:00 23,560 Sewer Pumps Replacement 920-001-0056 09/01/2011 7,109.00 1 Each 7,109 10:00 1:08 7,109 Sewer Pumps Replacement 920-002-0056 01/01/1996 7,109.00 1 Each 7,109 25:05 1:05 7,109 Wireless Infrastructure Security Sys. 910-000-0059 06/01/2015 76,450.00 1 lp sum 76,450 20:00 15:05 76,450 $ 399,816 $ 399,816 Painting Paint Common Area Interiors 910-000-0009 01/01/2011 $ 14,000.00 1 Lump $ 14,000 9:02 0:02 $ 14,000 Paint Railings/Handrails 910-000-0060 01/01/2027 142,190.00 1 total 142,190 10:00 17:00 142,190 Paint Stairwells 910-000-0054 11/01/2011 51,680.00 1 Lump 51,680 16:04 8:02 51,680 Paint/Waterproof Building Ext. 910-000-0007 11/01/2010 364,150.00 1 Lp Sm 364,150 9:04 0:02 364,150 $ 572,020 $ 572,020 Paving Concrete Paving/Curbing Allowance 920-001-0006 01/01/2003 $ 1.09 80,000 Lump $ 87,200 17:00 0:00 $ 87,200 Concrete Paving/Curbing Allowance 920-002-0006 01/01/2005 1.09 80,000 Lump 87,200 18:00 3:00 87,200 Concrete Paving/Curbing Allowance 920-003-0006 01/01/2007 1.09 80,000 Lump 87,200 19:00 6:00 87,200 $ 261,600 $ 261,600 Recreation Pool & Spa Resurfacing 910-000-0015 01/01/2014 $ 30,050.00 1 Lump $ 30,050 11:00 5:00 $ 30,050 Pool Deck Fencing/Gates 910-000-0018 01/01/1996 48.90 400 Ln Ft 19,560 25:00 1:00 19,560 Pool Deck Pavers 910-000-0047 06/01/2014 40,910.00 1 Lump 40,910 20:00 14:05 40,910 Pool Furniture Allowance 910-000-0017 01/01/2016 220.00 76 Pieces 16,720 8:00 4:00 16,720



Item Parameters - Detail Items Service Adj Rem Reserve Item Code Desc. Date Basis Cost Quantity Current Cost Life Life Future Cost Recreation Pool Heaters, Heat Pumps 910-000-0061 01/01/2014 $ 4,200.00 3 heaters $ 12,600 10:00 4:00 $ 12,600 Pool Lighting Allowance 910-000-0058 01/01/1996 7,105.00 1 Lump 7,105 27:00 3:00 7,105 Pool/Spa Equipment Allowance 910-000-0016 06/01/2014 7,792.00 1 Lump 7,792 8:00 2:05 7,792 Spa Heater, Propane 910-000-0064 01/01/2019 3,921.00 1 heaters 3,921 3:00 2:00 3,921 Sport Courts Resurfacing 910-000-0019 06/01/2015 6,999.00 1 Lump 6,999 8:00 3:05 6,999 Tennis Court Fencing 910-000-0020 05/01/2014 6,110.00 1 Lump 6,110 15:00 9:04 6,110 Tennis Court Lighting 910-000-0057 01/01/1996 4,791.00 4 poles 19,164 27:00 3:00 19,164 $ 170,931 $ 170,931 Restoration Beach Crossovers, Restoration 910-000-0062 01/01/2015 $ 81,600.00 1 total $ 81,600 19:00 14:00 $ 81,600 Concrete Restoration 910-000-0044 06/01/2010 1,500,000.00 1 Lump 1,500,000 18:07 9:00 1,500,000 Garage Doors, Exterior 910-000-0049 01/01/2010 1,729.00 13 Doors 22,477 15:00 5:00 22,477 Metal Doors Replacement 910-000-0048 10/01/2011 698.00 256 Doors 178,688 25:00 16:09 178,688 Railings Repair/Replacement 920-001-0045 01/01/1996 71.80 6,343 Ln Ft 455,427 31:00 7:00 455,427 Railings Repair/Replacement 920-002-0045 01/01/1996 71.80 6,696 Ln Ft 480,772 31:00 7:00 480,772 Trash Chutes, Restoration 920-001-0065 01/01/1996 2,881.00 4 floors 11,524 40:00 16:00 11,524 Trash Chutes, Restoration 920-002-0065 01/01/1996 2,881.00 4 floors 11,524 40:00 16:00 11,524 Trash Chutes, Restoration 920-003-0065 01/01/1996 2,881.00 4 floors 11,524 40:00 16:00 11,524 Trash Chutes, Restoration 920-004-0065 01/01/1996 2,881.00 4 floors 11,524 40:00 16:00 11,524 Trash Chutes, Restoration 920-005-0065 01/01/1996 2,881.00 4 floors 11,524 40:00 16:00 11,524 Trash Chutes, Restoration 920-006-0065 01/01/1996 2,881.00 4 floors 11,524 40:00 16:00 11,524 Trash Chutes, Restoration 920-007-0065 01/01/1996 2,881.00 4 floors 11,524 40:00 16:00 11,524 Walkways/Balconies Resurfacing 920-001-0046 01/01/2010 7.70 48,476 Sq. Ft 373,265 17:00 7:00 373,265 Walkways/Balconies Resurfacing 920-002-0046 01/01/2010 7.70 54,976 Sq. Ft 423,315 17:00 7:00 423,315 $ 3,596,213 $ 3,596,213 Roofing A/C Stands, ABCD (2021) 910-000-0005 $ 572.00 112 Each $ 64,064 12:00 1:00 $ 64,064 Roof Replacement, Metal-Buildings 910-000-0003 01/01/1996 10.89 4,561 Sq. Ft 49,669 33:00 9:00 49,669 Roof Replacement, SPF 920-001-0001 A 01/01/2009 4.86 14,127 sq. ft. 68,657 20:00 9:00 68,657 Roof Replacement, SPF 920-002-0001 B 01/01/2009 4.86 14,127 sq. ft. 68,657 20:00 9:00 68,657 Roof Replacement, SPF 920-003-0001 C 01/01/2009 4.86 20,289 sq. ft. 98,604 20:00 9:00 98,604 Roof Replacement, SPF 920-004-0001 D 01/01/2009 4.86 20,179 sq. ft. 98,069 20:00 9:00 98,069



Item Parameters - Detail Items Service Adj Rem Reserve Item Code Desc. Date Basis Cost Quantity Current Cost Life Life Future Cost Roofing Roof Replacement, SPF 920-005-0001 E 01/01/2016 $ 4.86 20,938 sq. ft. $ 101,758 20:00 16:00 $ 101,758 Roof Replacement, SPF 920-006-0001 F 01/01/2016 4.86 14,127 sq. ft. 68,657 20:00 16:00 68,657 Roof Replacement, SPF 920-007-0001 G 01/01/2016 4.86 14,127 sq. ft. 68,657 20:00 16:00 68,657 Roof Reseal, Flat 920-001-0002 A 01/01/2009 1.93 14,127 Sq. Ft 27,265 20:00 9:00 27,265 Roof Reseal, Flat 920-002-0002 B 01/01/2009 1.93 14,127 Sq. Ft 27,265 20:00 9:00 27,265 Roof Reseal, Flat 920-003-0002 C 01/01/2009 1.93 20,289 Sq. Ft 39,157 20:00 9:00 39,157 Roof Reseal, Flat 920-004-0002 D 01/01/2009 1.93 20,179 Sq. Ft 38,945 20:00 9:00 38,945 Roof Reseal, Flat 920-005-0002 E 01/01/2016 1.93 20,938 Sq. Ft 40,410 20:00 16:00 40,410 Roof Reseal, Flat 920-006-0002 F 01/01/2016 1.93 14,127 Sq. Ft 27,265 20:00 16:00 27,265 Roof Reseal, Flat 920-007-0002 G 01/01/2016 1.93 14,127 Sq. Ft 27,265 20:00 16:00 27,265 $ 914,369 $ 914,369 $ 6,748,294 $ 6,748,294



Item Parameters - Full Detail

Fitness Equip., Bikes

Item Number 26

Type Common Area

Category Common Area Interiors

Measurement Basis bikes Estimated Useful Life 15 Years

Basis Cost $ 1,321.00

Tracking Logistical Method Adjusted Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0026 01/01/1996 01/01/2020 0:00 24:00 1 1,321.00 1,321.00 920-002-0026 01/01/2010 01/01/2020 0:00 10:00 1 1,321.00 1,321.00 $ 2,642.00 $ 2,642.00

Comments The fitness room includes average to good quality exercise equipment. Depending on

the amount of usage, life cycles for cardiovascular equipment generally range from 6-

10 years. A 12-15 year useful life is indicated for inventories of strength equipment.

We have utilized a 15 year life cycle for all cardio equipment, based on the

associations operating history. The current costs are based on the observed quality of

the existing equipment and the reserve analyst's experience with exercise equipment

on a lump sum and $/piece basis.




Fitness Equip., Elliptical

Item Number 25

Type Common Area


Measurement Basis Lump Sum Estimated Useful Life 15 Years


Tracking Logistical Method Fixed Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 910-000-0025 08/01/2011 08/01/2026 6:07 15:00 1 1,228.00 1,228.00 $ 1,228.00 $ 1,228.00

Comments

The fitness room includes average to good quality exercise equipment. Depending on










Fitness Equip., Treadmills

Item Number 24

Type Common Area




Tracking Logistical Method Fixed Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0024 06/01/2012 06/01/2027 7:05 15:00 1 2,485.00 2,485.00 920-002-0024 06/01/2012 06/01/2027 7:05 15:00 1 2,485.00 2,485.00 920-003-0024 06/01/2012 06/01/2027 7:05 15:00 1 2,485.00 2,485.00 $ 7,455.00 $ 7,455.00

Comments











Fitness Equip., Universal Gym

Item Number 23

Type Common Area




Tracking Logistical Method Adjusted Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 910-000-0023 01/01/1996 01/01/2020 0:00 24:00 1 2,899.00 2,899.00 $ 2,899.00 $ 2,899.00

Comments




We have utilized a 20 year life cycle for the strength equipment, based on the







Flooring, Fitness Center

Item Number 29

Type Common Area


Measurement Basis sq. ft. Estimated Useful Life 15 Years

Basis Cost $ 6.75


Comments

The rubberized floor covering in the fitness room should enjoy a +/-15 year useful life

cycle, based on reports from similar properties. The current cost estimate includes

removal and disposal of the existing flooring and replacement with like quality and is

based on retail cost indexes and actual costs incurred at similar properties.




Flooring, Tile (Clubhouse)

Item Number 28

Type Common Area


Measurement Basis Sq. Ft Estimated Useful Life 25 Years

Basis Cost $ 12.00

Tracking Logistical Method Adjusted Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 910-000-0028 06/01/1996 06/01/2023 3:05 27:00 1,250 15,000.00 15,000.00 $ 15,000.00 $ 15,000.00

Comments

The clubhouse (with exception of the fitness room) has ceramic tile flooring.

Although tile flooring could be considered essentially permanent, most associations

typically replace common area tile flooring on a +/- 25 year life cycle, even if only

due to cosmetic tastes. The current cost estimate includes removal of the existing tile,

typical minor repairs to the underlying surface, and installation with similar quality

tile flooring.




Flooring, Tile (Lobbies)

Item Number 27

Type Common Area



Basis Cost $ 12.00


Comments

The residential buildings' entry lobbies have ceramic tile flooring. Although tile

flooring could be considered essentially permanent, most associations typically

replace common area tile flooring on a +/- 25 year life cycle, even if only due to

cosmetic tastes. The current cost estimate includes removal of the existing tile, typical

minor repairs to the underlying surface, and installation with similar quality tile

flooring.




Furnishings/Finishes, Lobbies

Item Number 30

Type Common Area


Measurement Basis total Estimated Useful Life 14 Years



Comments This reserve refers to costs associated with periodic furniture replacements and

interior finishes (wall art, plants, mirrors, lighting, etc). Life cycles in the low to mid

10 year range have been observed for this scope of renovation, recognizing that minor

additions and/or replacements will be necessary from time to time. The current cost

estimate is based on the actual reported cost provided by the association for the 2013

renovations, which we have trended for inflation.




Furniture/Furnishings, Clubhouse

Item Number 21

Type Common Area





Comments This reserve refers to costs associated with periodic furniture/furnishings

replacements. Life cycles in the 12-15 year range have been observed for this scope

of renovation, recognizing that minor additions and/or replacement will be necessary

from time to time. The current cost estimate is an order of magnitude based on the

size of the clubhouse interior. Actual costs may vary, sometimes widely, due to

cosmetic tastes and depending on the level and quality of the renovations.




Elevator Clean Down

Item Number 63

Type Common Area

Category Elevators




Comments

The actual provided quote includes clean outs for all elevators. We have utilized an

18 year useful life cycle based on the actual operating history, if this project has been

completed prior to 2015, this report should be amended accordingly.




Elevator Mechanical Modernization

Item Number 31

Type Common Area

Category Elevators

Measurement Basis Cabs Estimated Useful Life 25 Years


Tracking Logistical Method Fixed Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0031 01/01/2016 01/01/2041 21:00 25:00 1 64,425.00 64,425.00 920-002-0031 01/01/2016 01/01/2041 21:00 25:00 1 64,425.00 64,425.00 920-003-0031 01/01/2016 01/01/2041 21:00 25:00 1 64,425.00 64,425.00 920-004-0031 01/01/2016 01/01/2041 21:00 25:00 1 64,425.00 64,425.00 920-005-0031 01/01/2016 01/01/2041 21:00 25:00 1 64,425.00 64,425.00 920-006-0031 01/01/2016 01/01/2041 21:00 25:00 1 64,425.00 64,425.00 920-007-0031 01/01/2016 01/01/2041 21:00 25:00 1 64,425.00 64,425.00 $ 450,975.00 $ 450,975.00

Comments This category refers to costs associated with modernization of elevator mechanical

and electrical components, including motors, controllers, relays, door hardware, call

stations, cab interiors, etc. Data gleaned from properties with hydraulic elevators

reflect a rather wide range in useful life, from as low as +/- 25 years to over 40

years. The 25 year life was provided based on the contractor's recommendation. The

current cost is based on replacement costs at similar properties in the same regional

area.




Perimeter Fencing

Item Number 35

Type Common Area

Category Fencing

Measurement Basis Ln Ft Estimated Useful Life 25 Years

Basis Cost $ 39.59

Tracking Logistical Method Fixed Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 910-000-0035 01/01/2008 01/01/2033 13:00 25:00 1,400 55,426.00 55,426.00 $ 55,426.00 $ 55,426.00

Comments Assuming routine maintenance, total replacement of the metal fencing and gates at

the north, east, and west perimeters of the property, and should be expected on a life

cycle in the low to mid 20 year range. As reported, the association replaced

approximately 750 ln ft of fencing in 2008. For the purposes of this analysis, and

considering the overall observed condition of the fencing, we have scheduled total

replacement on a recurring 25 year life cycle. The current cost estimate includes

removal and disposal of the existing fencing and gates and replacement with fencing

and gates of similar height and quality, and is reflective of the total approximate

linear feet and a market supported cost per linear foot.




Fire Alarm System Controllers

Item Number 12

Type Common Area

Category Fire Safety Systems

Measurement Basis Each Estimated Useful Life 25 Years



Comments The association reportedly replaced the alarm panels at the clubhouse and each

residential building in late 2011; we have used the actual cost, which we have trended

for inflation. The 25 year life cycle is in keeping with market standards.




Fire Pump Repair/Replacement

Item Number 14

Type Common Area





Comments The subject’s major mechanical equipment inventory includes a 60 HP fire pump and

controller. With routine maintenance, including periodic pump rebuilds, motor

upgrades/replacements, etc., a life cycle of 35-40+ years should be expected. The

current replacement cost, which was increased substantially from the last report

provided to be more in keeping with known market costs, includes the controller

panel, fittings, valves, etc., and is based on an actual third party replacement cost

estimate provided to the association.




Fire System Water

Item Number 68

Type Common Area





Comments




Boilers Replacement

Item Number 40

Type Common Area

Category Hot Water Equipment




Comments

We have included separate line items for replacement of the 120 gallon water

heaters/boilers serving the residential buildings (2 at each building). Each were

scheduled for replacement on a recurring 16 year life cycle, based on our observation

of a typical 14 to 16 year life, and their reported placed in service dates. The current

costs are based on an actual recent cost per heater, for the 4 water heaters at buildings

A and G, incurred by the association in 2012, which we have trended for inflation. If

more specific operating history is available, this report should be amended

accordingly.




Circulation Pumps Repair/Replace

Item Number 41

Type Common Area

Category Hot Water Equipment




Comments We have also provided separate line items for the eventual replacements of the

circulation pumps supporting the boilers at the residential buildings, based on the

provided actual costs, again trended for inflation.




Domestic Water Panel/Equip.

Item Number 51

Type Common Area

Category Miscellaneous

Measurement Basis Bldg. Estimated Useful Life 24 Years


Tracking Logistical Method Adjusted Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0051 01/01/1996 01/01/2022 2:00 26:00 1 14,298.00 14,298.00 920-002-0051 01/01/1996 01/01/2022 2:00 26:00 1 14,298.00 14,298.00 920-003-0051 01/01/1996 01/01/2022 2:00 26:00 1 14,298.00 14,298.00 920-004-0051 01/01/1996 01/01/2024 4:00 28:00 1 14,298.00 14,298.00 920-005-0051 01/01/1996 01/01/2024 4:00 28:00 1 14,298.00 14,298.00 920-006-0051 01/01/1996 01/01/2024 4:00 28:00 1 14,298.00 14,298.00 920-007-0051 01/01/1996 01/01/2024 4:00 28:00 1 14,298.00 14,298.00 $ 100,086.00 $ 100,086.00

Comments Each of the residential buildings include a standard domestic water pump and

controller system. While pump rebuilds, motor rewinds, etc. will be necessary as a

portion of the typical maintenance program, the market indicates that major

restoration/replacement of these systems can be expected on a life cycle in the 20-25

year range. The current cost estimate is based on actual costs data we have gleaned

from similar properties for this upgrade.




Domestic Water Pumps Allowance

Item Number 52

Type Common Area





Comments

Each of the residential buildings include a standard domestic water pump and

controller system. While pump rebuilds, motor rewinds, etc. will be necessary as a

portion of the typical maintenance program, the market indicates that major

restoration/replacement of these systems can be expected on a life cycle in the low to

mid 20 year range. We have included this total modernization separately.

The current cost estimate is based on actual costs data we have gleaned from similar

properties for as needed pump replacements only. The age of each of the 14 pumps

(2 per building) was unknown. For budgeting purposes, we have scheduled

replacement of 4 pumps on a recurring 5 year life cycle.




HVAC Air Handlers

Item Number 39

Type Common Area


Measurement Basis Tons Estimated Useful Life 20 Years


Tracking Logistical Method Adjusted Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0039 06/01/2013 06/01/2033 13:05 20:00 1.5 2,064.00 2,064.00 920-002-0039 06/01/2013 06/01/2033 13:05 20:00 1.5 2,064.00 2,064.00 920-003-0039 06/01/2013 06/01/2033 13:05 20:00 1.5 2,064.00 2,064.00 920-004-0039 06/01/2011 06/01/2031 11:05 20:00 1.5 2,064.00 2,064.00 920-005-0039 06/01/1996 06/01/2022 2:05 26:00 1.5 2,064.00 2,064.00 920-006-0039 06/01/2011 06/01/2031 11:05 20:00 1.5 2,064.00 2,064.00 920-007-0039 01/01/1996 01/01/2022 2:00 26:00 1.5 2,064.00 2,064.00 920-008-0039 01/01/1996 01/01/2022 2:00 26:00 1.5 2,064.00 2,064.00 920-009-0039 06/01/2013 06/01/2033 13:05 20:00 1.5 2,064.00 2,064.00 920-010-0039 01/01/1996 01/01/2022 2:00 26:00 1.5 2,064.00 2,064.00 $ 20,640.00 $ 20,640.00

Comments The clubhouse, gym, shop, and residential building lobbies are each supported by a

single 1.5 ton HVAC split unit. The market suggests a useful life in the 20 year range

for interior air handlers, while exterior ground mounted condenser units should be

expected on a 12-14 life cycle, which is typical of the market. The current cost

estimates are based on the size in tons and our experience with this type of equipment

on an average $/ton basis.




HVAC Condensers

Item Number 38

Type Common Area


Measurement Basis Tons Estimated Useful Life 12 Years


Tracking Logistical Method Fixed Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0038 06/01/2013 06/01/2025 5:05 12:00 1.5 2,277.00 2,277.00 920-002-0038 06/01/2013 06/01/2025 5:05 12:00 1.5 2,277.00 2,277.00 920-003-0038 06/01/2013 06/01/2025 5:05 12:00 1.5 2,277.00 2,277.00 920-004-0038 06/01/2011 06/01/2023 3:05 12:00 1.5 2,277.00 2,277.00 920-005-0038 06/01/2010 06/01/2022 2:05 12:00 1.5 2,277.00 2,277.00 920-006-0038 06/01/2011 06/01/2023 3:05 12:00 1.5 2,277.00 2,277.00 920-007-0038 07/01/2010 07/01/2022 2:06 12:00 1.5 2,277.00 2,277.00 920-008-0038 09/01/2010 09/01/2022 2:08 12:00 1.5 2,277.00 2,277.00 920-009-0038 06/01/2013 06/01/2025 5:05 12:00 1.5 2,277.00 2,277.00 920-010-0038 08/01/2010 08/01/2022 2:07 12:00 1.5 2,277.00 2,277.00 $ 22,770.00 $ 22,770.00

Comments

The clubhouse, gym, shop, and residential building lobbies are each supported by a

single 1.5 ton HVAC split unit. The market suggests a useful life in the 20 year range

for interior air handlers, while exterior ground mounted condenser units should be

expected on a 12-14 life cycle, which is typical of the market. The current cost

estimates are based on the size in tons and our experience with this type of equipment

on an average $/ton basis.




Lift Stations Modernization

Item Number 43

Type Common Area





Comments Under normal operating conditions, total replacement of the lift station structures

should not be necessary at any one given time. While pump rebuilds, etc. can be

expected as a function of routine maintenance, it is our experience that major

equipment modernization can be expected on a life cycle in the low to mid 20 year

range. The current cost estimate is based on the actual cost estimates are within

market standards, and deemed reasonable and appropriate for ongoing budgetary

purposes. We have provided a separate line item for as needed replacements/repairs

to the two 3.5 HP pumps supporting the two lift stations.




Lighting, Parking Lot

Item Number 37

Type Common Area





Comments

This reserve component is for eventual replacement of the 5 larger and 2 smaller post

light fixtures at the parking/drives. While some units may require replacement sooner

due to unusual wear, etc., a life cycle in the low to mid 20 year range should be

expected for inventory replacement. The current cost estimate is reflective of a per

light/pole cost estimate of $2,890 (larger) and $1,870 (smaller). This analysis

assumes that as needed replacement of the smaller landscaping and building lighting

will be completed as a function of routine maintenance, funded through the

association’s annual operating budget.




Plumbing Allowance

Item Number 67

Type Common Area



Basis Cost $ 100,000.00


Comments

Under normal conditions, total replacement of the common area plumbing

lines/piping should not be necessary at any one given time. Therefore, it is our

opinion that reserving for total replacement is not prudent or practical, which is

supported by our review of reserve budgets at similar properties. While some

associations do establish and fund contingency reserves for unpredictable and

expected common area plumbing repairs, other associations prefer to fund unforeseen

common area plumbing repairs (at least partially) via special assessment. At such

time as the association can provide a budgetary funding goal and time frame in which

to reach that goal, if a common area plumbing reserve is desired, this report can be

amended accordingly.




Security Barrier Gates

Item Number 34

Type Common Area





Comments Barring any unforeseen vehicular damage, replacement of automatic barrier

gates/operators should be necessary on a 12-14 year life cycle. The current cost

estimate includes removal and disposal of the existing units, typical minor electrical

upgrades, and installation with a similar quality.




Sewer Pumps Replacement

Item Number 56

Type Common Area





Comments Under normal operating conditions, total replacement of the lift station structures

should not be necessary at any one given time. While pump rebuilds, etc. can be

expected as a function of routine maintenance, it is our experience that major

equipment modernization can be expected on a life cycle in the low to mid 20 year

range. The current cost estimate is based on the actual cost estimates, trended for

inflation, which are within market standards, and deemed reasonable and appropriate

for ongoing budgetary purposes. We have provided a separate line item for as needed

replacements/repairs to the two 3.5 HP pumps supporting the two lift stations.




Wireless Infrastructure Security Sys.

Item Number 59

Type Common Area


Measurement Basis lp sum Estimated Useful Life 20 Years



Comments

At the sole discretion of the association's representative, we have included a line item

for a wireless infrastructure security system (call box entry system, video

surveillance, wireless internet/routers, etc.) that was reported to have been installed in

2015. The current cost and life cycle was provided to us by the association.




Paint Common Area Interiors

Item Number 9

Type Common Area

Category Painting




Comments This category refers to costs associated with painting/refinishing of the interior walls

within the residential building lobbies and clubhouse. Associations can typically

expect to incur costs associated with this type of upgrade on a 10-12 year useful life,

assuming in house repairs and touch ups. In keeping with the association's plans, we

have scheduled a more frequent painting cycle of 6 years. The current cost is an

order of magnitude cost estimate based on the total observed size of the interior area

of each building. The current cost estimate includes typical surface prep and minor

wall repair.




Paint Railings/Handrails

Item Number 60

Type Common Area

Category Painting


Basis Cost $ 142,190.00


Comments

Based on the provided third party quotes, we have included this line item for painting

of the railings/handrails at the balconies, walkways and stairwells at the residential

buildings and the pool area. We have scheduled this expense over a recurring 10 year

life cycle, on an opposite schedule from the building exterior painting projects, as

railings will be included. The railing are scheduled for replacement in 2027. Touch up

painting in-house will continue until replacement.




Paint Stairwells

Item Number 54

Type Common Area

Category Painting




Comments At the association's sole discretion, and based on third party cost estimates provided

to the association, we have included an allowance for painting the stairwells and

doors at the residential buildings. We have scheduled this expense over a recurring

15 year life cycle.




Paint/Waterproof Building Ext.

Item Number 7

Type Common Area

Category Painting

Measurement Basis Lp Sm Estimated Useful Life 10 Years

Basis Cost $ 364,150.00


Comments To insure proper protection of the underlying concrete, stucco, metal roofing, the

market reflects a 7-10 year life cycle for exterior painting and waterproofing. The

current cost estimate includes typical minor exterior repairs, surface preparation. The

current cost was included at the sole discretion of the association, based on a third

party exterior painting proposal, which we have trended for inflation. This provided

cost is assumed to include exterior painting of the clubhouse, gazebo, and

guardhouse. This analysis separately includes consideration for as needed painting of

the railings. The walkways/balconies two coat system and painting of the entrance

columns is included




Concrete Paving/Curbing Allowance

Item Number 6

Type Common Area

Category Paving

Measurement Basis Lump sum Estimated Useful Life 15 Years

Basis Cost $ 1.09

Tracking Logistical Method Adjusted Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0006 01/01/2003 01/01/2020 0:00 17:00 80,000 87,200.00 87,200.00 920-002-0006 01/01/2005 01/01/2023 3:00 18:00 80,000 87,200.00 87,200.00 920-003-0006 01/01/2007 01/01/2026 6:00 19:00 80,000 87,200.00 87,200.00 $ 261,600.00 $ 261,600.00

Comments

Replacement of common area concrete paving (curbing, sidewalks, decking, etc.)

should not be necessary at any one given time under normal operating conditions. As

such, reserving for total replacement is not considered practical. Most associations of

the subject’s age and quality fund minor upgrades to these paving systems on an as

needed, incidental basis as a function of their general operating budgets. However, at

the sole discretion of the association, we have kept with a 15 year life cycle in three

phases. The current cost estimates were provided.




Pool & Spa Resurfacing

Item Number 15

Type Common Area

Category Recreation




Comments With proper installation, chemical balancing, and routine maintenance, pool interior

resurfacing/restoration can be expected on a 10-12 year life cycle. Due to the higher

temperatures and chemical concentrations, resurfacing of concrete/gunite spas is

generally necessary on an 8-10 year life cycle under normal conditions. The current

cost estimate is based on the total +/- 1,800 square feet of the pool interior, at a

market supported $14.30/square foot, plus an allowance of $3,600 for resurfacing the

spa interior. The current cost includes typical minor structural/tank repairs, tile

upgrades/replacements, and installation of new aggregate surface materials

(“diamond brite”, “pebble crete”, etc.)




Pool Deck Fencing/Gates

Item Number 18

Type Common Area

Category Recreation


Basis Cost $ 48.90


Comments Assuming routine maintenance, total replacement of the metal fencing and gates at

the pool perimeter should be expected on a life cycle in the low to mid 20 year range.

The current cost estimate, which is based on the actual cost for the section of

perimeter fencing, includes removal and disposal of the existing fencing and gates

and replacement with fencing and gates of similar height and quality.




Pool Deck Pavers

Item Number 47

Type Common Area

Category Recreation




Comments

The association installed pavers at the pool deck in 2014 at a cost of $39,493 with a

20 year warranty. Some associations consider paver parking/drives, walkways, pool

and spa decks, etc. to be effectively permanent, and chose to exclude replacement

from their annual reserve budgets. Others do establish and fund reserves for eventual

replacement, on observed life cycle estimates of +/- 20 to 40 years. It is our opinion

that reserving for eventual replacement is prudent, if only for cosmetic purposes; we

have observed older pavers that appear worn and dated, even with periodic pressure

washing and/or sealing. The current cost is based on the actual cost, trended for

inflation.




Pool Furniture Allowance

Item Number 17

Type Common Area

Category Recreation

Measurement Basis Pieces Estimated Useful Life 8 Years

Basis Cost $ 220.00


Comments

While minor replacements/additions should be expected from time to time properties

like the subject generally complete major pool and spa deck furniture inventory

replacements on a 7-10 year life cycle. The current cost estimate is based on the

quality of the existing inventory (28 lounge, 32 chairs, 8 tables, and 8 umbrellas),

retail pricing guides, and our experience with pool furniture replacement on both an

average $/piece and lump sum basis in similar quality pools.




Pool Heaters, Heat Pumps

Item Number 61

Type Common Area

Category Recreation

Measurement Basis heaters Estimated Useful Life 10 Years



Comments

Our recent experience with similar pool heaters indicate a budgetary useful life of 4-

10 years, which depends on the proximity to the ocean and the level of maintenance.

The cost estimate per heater is based on the provided actual cost, trended for inflation.




Pool Lighting Allowance

Item Number 58

Type Common Area

Category Recreation




Comments This fund is designed for as needed replacements of the pool lighting (two pole lights,

four pool deck lights, and six underwater lights). We have scheduled replacement on

a recurring 25 year life cycle.




Pool/Spa Equipment Allowance

Item Number 16

Type Common Area

Category Recreation




Comments Under normal operating conditions, total replacement of the inventory of pool and spa

equipment (pumps, filters, chlorination systems, etc.) should not be necessary at any

one given time. Some associations do establish and fund reserves for as needed

equipment replacements, while others prefer to fund as needed expenses through their

annual operating budgets as a function of general maintenance. For the association's

consideration we have provided a nominal allowance on a future 8 year life cycle to

provide monies for as needed replacements of the pool and spa equipment.




Spa Heater, Propane

Item Number 64

Type Common Area

Category Recreation

Measurement Basis heaters Estimated Useful Life 3 Years



Comments

Gas pool heaters typically enjoy a budgetary useful life of 6-10 years, which tends to

be supported by actual life cycle seen at similar properties. This expense was

scheduled on a 3 year life cycle, based on the association's reported operating history.

The cost estimate is based on actual recent costs and construction cost indexes.




Sport Courts Resurfacing

Item Number 19

Type Common Area

Category Recreation




Comments The market suggests replacement on a 6-8 year schedule, to insure proper protection

of the underlying waterproofing systems and decking, as well as a high cosmetic

appeal. The current cost estimate includes typical minor court structural repairs. The

current cost considers the association's reported cost in 2014, trended for inflation.

This cost estimate includes consideration for resurfacing of the two tennis courts and

shuffleboard court.




Tennis Court Fencing

Item Number 20

Type Common Area

Category Recreation




Comments Barring any unforeseen storm damages, etc., total replacement of the +/- 450 linear

feet of tennis court fencing supporting the tennis courts should be expected on +/- 15

year life cycle. The current cost considers the association's reported expense for this

project in 2014, trended for inflation.




Tennis Court Lighting

Item Number 57

Type Common Area

Category Recreation

Measurement Basis poles Estimated Useful Life 25 Years



Comments Barring any unforeseen storm damages, etc., total replacement of the 4 light/pole

fixtures supporting the tennis courts should be expected on +/- 25 year life cycle. The

current cost estimate per light pole is based on known market costs.




Beach Crossovers, Restoration

Item Number 62

Type Common Area

Category Restoration




Comments

The actual provided quote of $80,000 is for removal and replacement of the existing

crossovers, but also includes an extension of 10' at the north crossover. Upon receipt

of the actual size in square feet of these crossovers, a typical $/sq.ft. unit cost could

be applied for future restorations. This type of improvement would typically enjoy a

14-20 year useful life cycle, depending on the level of maintenance, and we have

utilized an 18 year life, accordingly.




Concrete Restoration

Item Number 44

Type Common Area



Basis Cost $ 1,500,000.00

Tracking Logistical Method Adjusted Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 910-000-0044 06/01/2010 01/01/2029 9:00 18:07 1 1,500,000.00 1,500,000.00 $ 1,500,000.00 $ 1,500,000.00

Comments A determination of the condition of the exterior concrete systems is beyond the scope

of this analysis. While it is certain that some measure of concrete restoration will be

necessary in any property of the subject's design and construction in an ocean

environment, it is very difficult to quantify budgetary costs and remaining useful

lives. Costs can range from as low as $5,000 per unit to over $30,000 per unit, and

useful lives can range from as low as roughly 15 years to over 25 years. Associations

that do establish and fund concrete restoration reserves often do so on a contingency

basis only, to provide monies for minor repairs during the typical exterior painting

cycle. As reported, the association completed a major restoration project in 2010 at a

cost of roughly $300,000, which we have trended for inflation. For the association's

consideration, we have scheduled this expense to recur on a future 20 year life cycle.




Garage Doors, Exterior

Item Number 49

Type Common Area


Measurement Basis Doors Estimated Useful Life 15 Years



Comments

We have included separate reserves designed to provide monies for as needed and

eventual full replacement of the +/- 256 metal common area doors (excluding unit

entry doors) and 13 exterior rolling garage doors over recurring 25 and 15 year life

cycles, respectively. The current per door cost estimates are based on similar

replacement cost we have seen in the market.




Metal Doors Replacement

Item Number 48

Type Common Area


Measurement Basis Doors Estimated Useful Life 25 Years

Basis Cost $ 698.00


Comments We have included separate reserves designed to provide monies for as needed and

eventual full replacement of the +/- 256 metal common area doors (excluding unit

entry doors) and 13 exterior rolling garage doors over recurring 25 and 15 year life

cycles, respectively. The current per door cost estimates are based on similar

replacement cost we have seen in the market.




Railings Repair/Replacement

Item Number 45

Type Common Area



Basis Cost $ 71.80

Tracking Logistical Method Adjusted Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0045 01/01/1996 01/01/2027 7:00 31:00 6,343 455,427.40 455,427.40 920-002-0045 01/01/1996 01/01/2027 7:00 31:00 6,696 480,772.80 480,772.80 $ 936,200.20 $ 936,200.20

Comments At some point in the foreseeable future, the association should expect to incur costs

for major restoration/replacement of the railings at the walkways and unit

balconies. We have observed useful lives of less than 20 years, while some properties

of +/- 40 years in age still have their original railings. Replacement is often necessary

in conjunction with major balcony/concrete restoration, due to changing building

codes, rather than due to physical failure of the railings. This reserve is designed to

provide monies for as needed repairs to and eventual replacement of the railings over

a 25 year life cycle. The current cost estimates are reflective of the total approximate

linear feet of railings, and a market supported cost estimate per linear foot.




Trash Chutes, Restoration

Item Number 65

Type Common Area


Measurement Basis floors Estimated Useful Life 40 Years



Comments Data taken from older properties within the southeast Florida marketplace suggests

that major trash chute restoration/replacement should be expected on a 35-40+ year

basis, which assumes typical and routine maintenance. The current cost and life cycle

estimates are based on our experience.




Walkways/Balconies Resurfacing

Item Number 46

Type Common Area



Basis Cost $ 7.70

Tracking Logistical Method Adjusted Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0046 01/01/2010 01/01/2027 7:00 17:00 48,476 373,265.20 373,265.20 920-002-0046 01/01/2010 01/01/2027 7:00 17:00 54,976 423,315.20 423,315.20 $ 796,580.40 $ 796,580.40

Comments Life cycles of less than 15 years, to 20+ years have been observed for replacement of

these waterproofing/Kool deck systems, which typically involves

shotblasting/removal of the underlying waterproofing membranes/traffic coatings,

typical minor repairs to the underlying concrete decking, and installation of new

waterproof membranes/traffic coatings. As reported, the walkways and balconies

were repaired and sealed in 2010, along with the concrete restoration project. An

engineering report provided to the association, suggests a full resurfacing project

should be completed within the next +/- 10 years. The current cost estimates are

based on the total walkway and balcony area (provided by the association), and a

market supported $7.35/square foot unit cost, which we have trended for inflation.

This cost does not reflect removal of any tile, etc. flooring that may have been

installed by the individual unit owners, which was assumed to be the financial

responsibility of the unit owners and not the association.




A/C Stands, ABCD (2021)

Item Number 5

Type Common Area

Category Roofing


Basis Cost $ 572.00

Tracking Logistical Method One Time Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 910-000-0005 01/01/2021 1:00 12:00 112 64,064.00 64,064.00 $ 64,064.00 $ 64,064.00

Comments

We have included a line item for raising the HVAC roof top condenser units onto

platforms at buildings A-D. This expense was scheduled to be completed along with

the scheduled roof replacements in 2021. The current cost considers the actual costs

incurred by the association in 2008/2009 at buildings E-G, trended for inflation, and

checked against data maintained in our work files. This was scheduled as a one-time

expense.




Roof Replacement, Metal-Buildings

Item Number 3

Type Common Area

Category Roofing


Basis Cost $ 10.89


Comments Discussions with roofing consultants suggest a minimum life cycle of 25-30 years,

assuming proper design, installation and maintenance. The current cost estimate

includes removal and disposal of the existing metal roofing at the clubhouse, lobby

entrances, and gazebo. This cost also includes typical minor repairs to the underlying

roof structures, flashing, etc. and installation of like roofing. The association has

reported the early replacement of two residential entry metal roofs, as we previously

had all metal roofs scheduled as a single line item, we will need the actual contract

provided to amend this item. A 30 year replacement life has been assigned to the

metal roofing as the roofs are painted on a 10 year schedule.




Roof Replacement, SPF

Item Number 1

Type Common Area

Category Roofing

Measurement Basis sq. ft. Estimated Useful Life 20 Years

Basis Cost $ 4.86

Tracking Logistical Method Fixed Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0001 01/01/2009 01/01/2029 9:00 20:00 14,127 68,657.22 68,657.22 920-002-0001 01/01/2009 01/01/2029 9:00 20:00 14,127 68,657.22 68,657.22 920-003-0001 01/01/2009 01/01/2029 9:00 20:00 20,289 98,604.54 98,604.54 920-004-0001 01/01/2009 01/01/2029 9:00 20:00 20,179 98,069.94 98,069.94 920-005-0001 01/01/2016 01/01/2036 16:00 20:00 20,938 101,758.68 101,758.68 920-006-0001 01/01/2016 01/01/2036 16:00 20:00 14,127 68,657.22 68,657.22 920-007-0001 01/01/2016 01/01/2036 16:00 20:00 14,127 68,657.22 68,657.22 $ 573,062.04 $ 573,062.04

Comments

The polyurethane roofing system was given an expected useful life of 20 years by the

roofing contractors who performed the 2016 roof re-application for buildings E-G and

the 2009 re-application for buildings A-D. The current cost estimate, which includes

as needed repairs and re-application of the sprayed polyurethane foam silicone

protective coating system, was based on the provided contract.

* 1 square = 100 square feet




Roof Reseal, Flat

Item Number 2

Type Common Area

Category Roofing


Basis Cost $ 1.93

Tracking Logistical Method Fixed Service Replace Rem Adj Current Future Code Date Date Life Life Quantity Cost Cost 920-001-0002 01/01/2009 01/01/2029 9:00 20:00 14,127 27,265.11 27,265.11 920-002-0002 01/01/2009 01/01/2029 9:00 20:00 14,127 27,265.11 27,265.11 920-003-0002 01/01/2009 01/01/2029 9:00 20:00 20,289 39,157.77 39,157.77 920-004-0002 01/01/2009 01/01/2029 9:00 20:00 20,179 38,945.47 38,945.47 920-005-0002 01/01/2016 01/01/2036 16:00 20:00 20,938 40,410.34 40,410.34 920-006-0002 01/01/2016 01/01/2036 16:00 20:00 14,127 27,265.11 27,265.11 920-007-0002 01/01/2016 01/01/2036 16:00 20:00 14,127 27,265.11 27,265.11 $ 227,574.02 $ 227,574.02

Comments

Assuming proper design, installation and maintenance, bituminous roofing should

typically enjoy a life cycle in the 18-20 year range. Considering the association's

reported plans, we have adjusted the next expense dates. 20 year recurring future life

cycles were scheduled thereafter. The current replacement cost estimates include tear

off and disposal of the existing flat roof covers, typical minor repairs to the

underlying roof structures, flashing, etc. and installation with like roofing for

buildings A through G. We have also included separate line items for re-sealing the

roofs on a recurring 20 year life cycle.



Expenditures

Reserve Item 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

A/C Stands, ABCD (2021) $ 64,064 Beach Crossovers, Restoration Boilers Replacement 26,764 40,146 26,764 Circulation Pumps Repair/Replace 13,188 Concrete Paving/Curbing Allowance 87,200 87,200 87,200 Concrete Restoration 1,500,000 Domestic Water Panel/Equip. 42,894 57,192 Domestic Water Pumps Allowance 5,648 5,648 Elevator Clean Down Elevator Mechanical Modernization Fire Alarm System Controllers Fire Pump Repair/Replacement 34,190 Fire System Water 50,000 Fitness Equip., Bikes 2,642 Fitness Equip., Elliptical 1,228 Fitness Equip., Treadmills 7,455 Fitness Equip., Universal Gym 2,899 Flooring, Fitness Center 4,050 Flooring, Tile (Clubhouse) 15,000 Flooring, Tile (Lobbies) 21,300 Furnishings/Finishes, Lobbies 13,710 Furniture/Furnishings, Clubhouse 13,710 Garage Doors, Exterior 22,477 HVAC Air Handlers 8,256 HVAC Condensers 9,108 4,554 9,108 Lift Stations Modernization 8,517 8,517 Lighting, Parking Lot 19,410 Metal Doors Replacement Paint Common Area Interiors 14,000 14,000



Expenditures

Reserve Item 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029

Paint Railings/Handrails Paint Stairwells 51,680 Paint/Waterproof Building Ext. 364,150 Perimeter Fencing Plumbing Allowance 100,000 Pool & Spa Resurfacing 30,050 Pool Deck Fencing/Gates 19,560 Pool Deck Pavers Pool Furniture Allowance 16,720 Pool Heaters, Heat Pumps 12,600 Pool Lighting Allowance 7,105 Pool/Spa Equipment Allowance 7,792 Railings Repair/Replacement 936,200 Roof Replacement, Metal-Buildings 49,669 Roof Replacement, SPF 333,988 Roof Reseal, Flat 132,633 Security Barrier Gates 23,560 Sewer Pumps Replacement 14,218 Spa Heater, Propane 3,921 3,921 3,921 Sport Courts Resurfacing 6,999 Tennis Court Fencing 6,110 Tennis Court Lighting 19,164 Trash Chutes, Restoration Walkways/Balconies Resurfacing 796,580 Wireless Infrastructure Security Sys.

$ 479,408 $ 122,900 $ 167,236 $ 166,786 $ 130,708 $ 113,456 $ 94,076 $ 1,753,945 $ 82,365 $ 2,157,701



Expenditures

Reserve Item 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

A/C Stands, ABCD (2021) Beach Crossovers, Restoration 81,600 Boilers Replacement 26,764 Circulation Pumps Repair/Replace 13,188 Concrete Paving/Curbing Allowance 87,200 87,200 Concrete Restoration Domestic Water Panel/Equip. Domestic Water Pumps Allowance 5,648 5,648 Elevator Clean Down 12,290 Elevator Mechanical Modernization Fire Alarm System Controllers 41,608 Fire Pump Repair/Replacement 34,190 Fire System Water Fitness Equip., Bikes 2,642 Fitness Equip., Elliptical Fitness Equip., Treadmills Fitness Equip., Universal Gym Flooring, Fitness Center 4,050 Flooring, Tile (Clubhouse) Flooring, Tile (Lobbies) Furnishings/Finishes, Lobbies Furniture/Furnishings, Clubhouse 13,710 Garage Doors, Exterior HVAC Air Handlers 4,128 8,256 HVAC Condensers 9,108 4,554 9,108 Lift Stations Modernization Lighting, Parking Lot Metal Doors Replacement 178,688 Paint Common Area Interiors 14,000



Expenditures

Reserve Item 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039

Paint Railings/Handrails 142,190 Paint Stairwells Paint/Waterproof Building Ext. 364,150 Perimeter Fencing 55,426 Plumbing Allowance 100,000 Pool & Spa Resurfacing 30,050 Pool Deck Fencing/Gates Pool Deck Pavers 40,910 Pool Furniture Allowance 16,720 Pool Heaters, Heat Pumps 12,600 Pool Lighting Allowance Pool/Spa Equipment Allowance 7,792 7,792 Railings Repair/Replacement Roof Replacement, Metal-Buildings Roof Replacement, SPF 239,073 Roof Reseal, Flat 94,940 Security Barrier Gates 23,560 Sewer Pumps Replacement 14,218 Spa Heater, Propane 3,921 3,921 3,921 Sport Courts Resurfacing 6,999 6,999 Tennis Court Fencing Tennis Court Lighting Trash Chutes, Restoration 80,668 Walkways/Balconies Resurfacing Wireless Infrastructure Security Sys. 76,450

$ 371,942 $ 34,914 $ 16,720 $ 75,972 $ 184,887 $ 170,846 $ 670,675 $ 155,219 $ 108,992 $ 185,713



Expenditures

Reserve Item 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049

A/C Stands, ABCD (2021) Beach Crossovers, Restoration Boilers Replacement 40,146 26,764 Circulation Pumps Repair/Replace 13,188 Concrete Paving/Curbing Allowance 87,200 Concrete Restoration 1,500,000 Domestic Water Panel/Equip. 42,894 57,192 Domestic Water Pumps Allowance 5,648 5,648 Elevator Clean Down Elevator Mechanical Modernization 450,975 Fire Alarm System Controllers Fire Pump Repair/Replacement Fire System Water 50,000 Fitness Equip., Bikes Fitness Equip., Elliptical 1,228 Fitness Equip., Treadmills 7,455 Fitness Equip., Universal Gym 2,899 Flooring, Fitness Center Flooring, Tile (Clubhouse) 15,000 Flooring, Tile (Lobbies) Furnishings/Finishes, Lobbies 13,710 Furniture/Furnishings, Clubhouse Garage Doors, Exterior 22,477 HVAC Air Handlers 8,256 HVAC Condensers 9,108 4,554 9,108 Lift Stations Modernization 8,517 8,517 Lighting, Parking Lot 19,410 Metal Doors Replacement Paint Common Area Interiors 14,000



Expenditures

Reserve Item 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049

Paint Railings/Handrails 142,190 Paint Stairwells 51,680 Paint/Waterproof Building Ext. 364,150 Perimeter Fencing Plumbing Allowance 100,000 Pool & Spa Resurfacing 30,050 Pool Deck Fencing/Gates 19,560 Pool Deck Pavers Pool Furniture Allowance 16,720 16,720 Pool Heaters, Heat Pumps 12,600 Pool Lighting Allowance 7,105 Pool/Spa Equipment Allowance 7,792 Railings Repair/Replacement Roof Replacement, Metal-Buildings Roof Replacement, SPF 333,988 Roof Reseal, Flat 132,633 Security Barrier Gates 23,560 Sewer Pumps Replacement 14,218 Spa Heater, Propane 3,921 3,921 3,921 3,921 Sport Courts Resurfacing 6,999 Tennis Court Fencing 6,110 Tennis Court Lighting 19,164 Trash Chutes, Restoration Walkways/Balconies Resurfacing 796,580 Wireless Infrastructure Security Sys.

$ 458,830 $ 572,979 $ 74,228 $ 55,601 $ 1,545,474 $ 0 $ 145,081 $ 994,373 $ 115,181 $ 579,651



Expenditures

Reserve Item 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059

A/C Stands, ABCD (2021) Beach Crossovers, Restoration 81,600 Boilers Replacement 26,764 40,146 Circulation Pumps Repair/Replace 13,188 Concrete Paving/Curbing Allowance 87,200 87,200 87,200 Concrete Restoration 1,500,000 Domestic Water Panel/Equip. Domestic Water Pumps Allowance 5,648 5,648 Elevator Clean Down 12,290 Elevator Mechanical Modernization Fire Alarm System Controllers Fire Pump Repair/Replacement 34,190 Fire System Water Fitness Equip., Bikes 2,642 Fitness Equip., Elliptical 1,228 Fitness Equip., Treadmills 7,455 Fitness Equip., Universal Gym Flooring, Fitness Center 4,050 Flooring, Tile (Clubhouse) Flooring, Tile (Lobbies) 21,300 Furnishings/Finishes, Lobbies 13,710 Furniture/Furnishings, Clubhouse 13,710 Garage Doors, Exterior 22,477 HVAC Air Handlers 4,128 8,256 HVAC Condensers 9,108 4,554 Lift Stations Modernization Lighting, Parking Lot Metal Doors Replacement Paint Common Area Interiors 14,000



Expenditures

Reserve Item 2050 2051 2052 2053 2054 2055 2056 2057 2058 2059

Paint Railings/Handrails 142,190 Paint Stairwells 51,680 Paint/Waterproof Building Ext. 364,150 Perimeter Fencing 55,426 Plumbing Allowance 100,000 Pool & Spa Resurfacing 30,050 Pool Deck Fencing/Gates Pool Deck Pavers 40,910 Pool Furniture Allowance 16,720 Pool Heaters, Heat Pumps 12,600 Pool Lighting Allowance Pool/Spa Equipment Allowance 7,792 Railings Repair/Replacement 936,200 Roof Replacement, Metal-Buildings 49,669 Roof Replacement, SPF 239,073 Roof Reseal, Flat 94,940 Security Barrier Gates 23,560 Sewer Pumps Replacement 14,218 Spa Heater, Propane 3,921 3,921 3,921 Sport Courts Resurfacing 6,999 Tennis Court Fencing 6,110 Tennis Court Lighting Trash Chutes, Restoration Walkways/Balconies Resurfacing Wireless Infrastructure Security Sys. 76,450

$ 453,992 $ 36,284 $ 85,521 $ 143,356 $ 86,652 $ 150,321 $ 498,955 $ 1,085,845 $ 186,933 $ 1,660,333

Analysis Date - January 1, 2020 Inflation:0.00% Investment:1.50% Contribution Factor:0.00% Calc:Current


Cash Flow - Chart



Cash Flow - Annual Period Beginning Balance Contribution Interest Earned Expenditures Ending Balance

01/20 - 12/20 $ 1,972,993.00 $ 350,004.00 $ 26,456.07 $ 479,408.00 $ 1,870,045.07 01/21 - 12/21 1,870,045.07 350,004.00 29,254.88 122,900.00 2,126,403.95 01/22 - 12/22 2,126,403.95 350,004.00 32,553.25 167,236.00 2,341,725.20 01/23 - 12/23 2,341,725.20 350,004.00 35,776.26 166,786.00 2,560,719.46 01/24 - 12/24 2,560,719.46 350,004.00 39,674.17 130,708.00 2,819,689.63 01/25 - 12/25 2,819,689.63 350,004.00 44,268.62 113,456.00 3,100,506.25 01/26 - 12/26 3,100,506.25 350,004.00 48,150.51 94,076.00 3,404,584.76 01/27 - 12/27 3,404,584.76 350,004.00 28,898.25 1,753,945.60 2,029,541.41 01/28 - 12/28 2,029,541.41 350,004.00 32,397.96 82,365.00 2,329,578.37 01/29 - 12/29 2,329,578.37 350,004.00 6,666.09 2,157,701.67 528,546.79

$ 1,972,993.00 $ 3,500,040.00 $ 324,096.06 $ 5,268,582.27 $ 528,546.79 Period Beginning Balance Contribution Interest Earned Expenditures Ending Balance

01/30 - 12/30 $ 528,546.79 $ 350,004.00 $ 6,208.59 $ 371,942.00 $ 512,817.38 01/31 - 12/31 512,817.38 350,004.00 10,099.34 34,914.00 838,006.72 01/32 - 12/32 838,006.72 350,004.00 15,051.55 16,720.00 1,186,342.27 01/33 - 12/33 1,186,342.27 350,004.00 19,585.07 75,972.00 1,479,959.34 01/34 - 12/34 1,479,959.34 350,004.00 22,730.40 184,887.00 1,667,806.74 01/35 - 12/35 1,667,806.74 350,004.00 25,865.97 170,846.00 1,872,830.71 01/36 - 12/36 1,872,830.71 350,004.00 23,804.71 670,675.68 1,575,963.74 01/37 - 12/37 1,575,963.74 350,004.00 24,250.76 155,219.00 1,794,999.50 01/38 - 12/38 1,794,999.50 350,004.00 28,255.04 108,992.00 2,064,266.54 01/39 - 12/39 2,064,266.54 350,004.00 31,817.12 185,713.00 2,260,374.66

$ 528,546.79 $ 3,500,040.00 $ 207,668.55 $ 1,975,880.68 $ 2,260,374.66 Period Beginning Balance Contribution Interest Earned Expenditures Ending Balance

01/40 - 12/40 $ 2,260,374.66 $ 350,004.00 $ 31,311.83 $ 458,830.00 $ 2,182,860.49 01/41 - 12/41 2,182,860.49 350,004.00 27,650.41 572,979.00 1,987,535.90 01/42 - 12/42 1,987,535.90 350,004.00 31,641.51 74,228.00 2,294,953.41 01/43 - 12/43 2,294,953.41 350,004.00 36,624.84 55,601.00 2,625,981.25 01/44 - 12/44 2,625,981.25 350,004.00 20,135.35 1,545,474.00 1,450,646.60 01/45 - 12/45 1,450,646.60 350,004.00 24,546.51 0.00 1,825,197.11 01/46 - 12/46 1,825,197.11 350,004.00 28,347.17 145,081.00 2,058,467.28 01/47 - 12/47 2,058,467.28 350,004.00 19,446.70 994,373.40 1,433,544.58 01/48 - 12/48 1,433,544.58 350,004.00 22,716.31 115,181.00 1,691,083.89 01/49 - 12/49 1,691,083.89 350,004.00 19,847.99 579,651.38 1,481,284.50

$ 2,260,374.66 $ 3,500,040.00 $ 262,268.62 $ 4,541,398.78 $ 1,481,284.50



Cash Flow - Annual Period Beginning Balance Contribution Interest Earned Expenditures Ending Balance

01/50 - 12/50 $ 1,481,284.50 $ 350,004.00 $ 19,361.85 $ 453,992.00 $ 1,396,658.35 01/51 - 12/51 1,396,658.35 350,004.00 23,462.09 36,284.00 1,733,840.44 01/52 - 12/52 1,733,840.44 350,004.00 27,586.26 85,521.00 2,025,909.70 01/53 - 12/53 2,025,909.70 350,004.00 31,841.71 143,356.00 2,264,399.41 01/54 - 12/54 2,264,399.41 350,004.00 35,890.86 86,652.00 2,563,642.27 01/55 - 12/55 2,563,642.27 350,004.00 39,898.33 150,321.00 2,803,223.60 01/56 - 12/56 2,803,223.60 350,004.00 38,090.30 498,955.68 2,692,362.22 01/57 - 12/57 2,692,362.22 350,004.00 27,635.86 1,085,845.20 1,984,156.88 01/58 - 12/58 1,984,156.88 350,004.00 30,188.36 186,933.00 2,177,416.24 01/59 - 12/59 2,177,416.24 350,004.00 11,558.12 1,660,333.29 878,645.07

$ 1,481,284.50 $ 3,500,040.00 $ 285,513.74 $ 4,388,193.17 $ 878,645.07



Cash Flow - Monthly 2020 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,972,993.00 $ 29,167.00 $ 2,421.18 $ 101,258.00 $ 1,903,323.18 February 1,903,323.18 29,167.00 2,397.38 0.00 1,934,887.56 March 1,934,887.56 29,167.00 2,200.50 378,150.00 1,588,105.06 April 1,588,105.06 29,167.00 2,003.36 0.00 1,619,275.42 May 1,619,275.42 29,167.00 2,042.32 0.00 1,650,484.74 June 1,650,484.74 29,167.00 2,081.34 0.00 1,681,733.08 July 1,681,733.08 29,167.00 2,120.40 0.00 1,713,020.48 August 1,713,020.48 29,167.00 2,159.50 0.00 1,744,346.98 September 1,744,346.98 29,167.00 2,198.66 0.00 1,775,712.64 October 1,775,712.64 29,167.00 2,237.87 0.00 1,807,117.51 November 1,807,117.51 29,167.00 2,277.13 0.00 1,838,561.64 December 1,838,561.64 29,167.00 2,316.43 0.00 1,870,045.07 $ 1,972,993.00 $ 350,004.00 $ 26,456.07 $ 479,408.00 $ 1,870,045.07 2021 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,870,045.07 $ 29,167.00 $ 2,291.39 $ 103,034.00 $ 1,798,469.46 February 1,798,469.46 29,167.00 2,266.32 0.00 1,829,902.78 March 1,829,902.78 29,167.00 2,305.61 0.00 1,861,375.39 April 1,861,375.39 29,167.00 2,344.95 0.00 1,892,887.34 May 1,892,887.34 29,167.00 2,384.34 0.00 1,924,438.68 June 1,924,438.68 29,167.00 2,415.80 12,757.00 1,943,264.48 July 1,943,264.48 29,167.00 2,447.31 0.00 1,974,878.79 August 1,974,878.79 29,167.00 2,486.83 0.00 2,006,532.62 September 2,006,532.62 29,167.00 2,521.95 7,109.00 2,031,112.57 October 2,031,112.57 29,167.00 2,557.12 0.00 2,062,836.69 November 2,062,836.69 29,167.00 2,596.78 0.00 2,094,600.47 December 2,094,600.47 29,167.00 2,636.48 0.00 2,126,403.95 $ 1,870,045.07 $ 350,004.00 $ 29,254.88 $ 122,900.00 $ 2,126,403.95 2022 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,126,403.95 $ 29,167.00 $ 2,591.81 $ 135,084.00 $ 2,023,078.76 February 2,023,078.76 29,167.00 2,547.08 0.00 2,054,792.84 March 2,054,792.84 29,167.00 2,586.72 0.00 2,086,546.56 April 2,086,546.56 29,167.00 2,626.41 0.00 2,118,339.97 May 2,118,339.97 29,167.00 2,666.15 0.00 2,150,173.12 June 2,150,173.12 29,167.00 2,690.12 25,321.00 2,156,709.24 July 2,156,709.24 29,167.00 2,712.69 2,277.00 2,186,311.93 August 2,186,311.93 29,167.00 2,749.70 2,277.00 2,215,951.63 September 2,215,951.63 29,167.00 2,786.75 2,277.00 2,245,628.38 October 2,245,628.38 29,167.00 2,825.26 0.00 2,277,620.64 November 2,277,620.64 29,167.00 2,865.26 0.00 2,309,652.90 December 2,309,652.90 29,167.00 2,905.30 0.00 2,341,725.20 $ 2,126,403.95 $ 350,004.00 $ 32,553.25 $ 167,236.00 $ 2,341,725.20



Cash Flow - Monthly 2023 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,341,725.20 $ 29,167.00 $ 2,866.10 $ 126,851.00 $ 2,246,907.30 February 2,246,907.30 29,167.00 2,818.50 13,382.00 2,265,510.80 March 2,265,510.80 29,167.00 2,850.12 0.00 2,297,527.92 April 2,297,527.92 29,167.00 2,890.14 0.00 2,329,585.06 May 2,329,585.06 29,167.00 2,930.21 0.00 2,361,682.27 June 2,361,682.27 29,167.00 2,953.74 26,553.00 2,367,250.01 July 2,367,250.01 29,167.00 2,977.29 0.00 2,399,394.30 August 2,399,394.30 29,167.00 3,017.47 0.00 2,431,578.77 September 2,431,578.77 29,167.00 3,057.70 0.00 2,463,803.47 October 2,463,803.47 29,167.00 3,097.98 0.00 2,496,068.45 November 2,496,068.45 29,167.00 3,138.31 0.00 2,528,373.76 December 2,528,373.76 29,167.00 3,178.70 0.00 2,560,719.46 $ 2,341,725.20 $ 350,004.00 $ 35,776.26 $ 166,786.00 $ 2,560,719.46 2024 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,560,719.46 $ 29,167.00 $ 3,154.16 $ 103,944.00 $ 2,489,096.62 February 2,489,096.62 29,167.00 3,129.60 0.00 2,521,393.22 March 2,521,393.22 29,167.00 3,169.97 0.00 2,553,730.19 April 2,553,730.19 29,167.00 3,210.39 0.00 2,586,107.58 May 2,586,107.58 29,167.00 3,242.50 13,382.00 2,605,135.08 June 2,605,135.08 29,167.00 3,274.65 0.00 2,637,576.73 July 2,637,576.73 29,167.00 3,315.20 0.00 2,670,058.93 August 2,670,058.93 29,167.00 3,355.80 0.00 2,702,581.73 September 2,702,581.73 29,167.00 3,396.46 0.00 2,735,145.19 October 2,735,145.19 29,167.00 3,437.16 0.00 2,767,749.35 November 2,767,749.35 29,167.00 3,477.92 0.00 2,800,394.27 December 2,800,394.27 29,167.00 3,510.36 13,382.00 2,819,689.63 $ 2,560,719.46 $ 350,004.00 $ 39,674.17 $ 130,708.00 $ 2,819,689.63 2025 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,819,689.63 $ 29,167.00 $ 3,507.56 $ 56,448.00 $ 2,795,916.19 February 2,795,916.19 29,167.00 3,513.12 0.00 2,828,596.31 March 2,828,596.31 29,167.00 3,553.97 0.00 2,861,317.28 April 2,861,317.28 29,167.00 3,594.88 0.00 2,894,079.16 May 2,894,079.16 29,167.00 3,635.83 0.00 2,926,881.99 June 2,926,881.99 29,167.00 3,671.14 9,108.00 2,950,612.13 July 2,950,612.13 29,167.00 3,706.49 0.00 2,983,485.62 August 2,983,485.62 29,167.00 3,747.59 0.00 3,016,400.21 September 3,016,400.21 29,167.00 3,788.73 0.00 3,049,355.94 October 3,049,355.94 29,167.00 3,821.36 13,710.00 3,068,634.30 November 3,068,634.30 29,167.00 3,854.02 0.00 3,101,655.32 December 3,101,655.32 29,167.00 3,873.93 34,190.00 3,100,506.25 $ 2,819,689.63 $ 350,004.00 $ 44,268.62 $ 113,456.00 $ 3,100,506.25



Cash Flow - Monthly 2026 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 3,100,506.25 $ 29,167.00 $ 3,839.36 $ 87,200.00 $ 3,046,312.61 February 3,046,312.61 29,167.00 3,826.12 0.00 3,079,305.73 March 3,079,305.73 29,167.00 3,867.36 0.00 3,112,340.09 April 3,112,340.09 29,167.00 3,908.65 0.00 3,145,415.74 May 3,145,415.74 29,167.00 3,950.00 0.00 3,178,532.74 June 3,178,532.74 29,167.00 3,987.87 5,648.00 3,206,039.61 July 3,206,039.61 29,167.00 4,025.78 0.00 3,239,232.39 August 3,239,232.39 29,167.00 4,066.50 1,228.00 3,271,237.89 September 3,271,237.89 29,167.00 4,107.28 0.00 3,304,512.17 October 3,304,512.17 29,167.00 4,148.87 0.00 3,337,828.04 November 3,337,828.04 29,167.00 4,190.51 0.00 3,371,185.55 December 3,371,185.55 29,167.00 4,232.21 0.00 3,404,584.76 $ 3,100,506.25 $ 350,004.00 $ 48,150.51 $ 94,076.00 $ 3,404,584.76 2027 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 3,404,584.76 $ 29,167.00 $ 3,190.97 $ 1,732,780.60 $ 1,704,162.13 February 1,704,162.13 29,167.00 2,148.43 0.00 1,735,477.56 March 1,735,477.56 29,167.00 2,187.58 0.00 1,766,832.14 April 1,766,832.14 29,167.00 2,226.77 0.00 1,798,225.91 May 1,798,225.91 29,167.00 2,266.01 0.00 1,829,658.92 June 1,829,658.92 29,167.00 2,300.64 7,455.00 1,853,671.56 July 1,853,671.56 29,167.00 2,335.32 0.00 1,885,173.88 August 1,885,173.88 29,167.00 2,374.70 0.00 1,916,715.58 September 1,916,715.58 29,167.00 2,414.12 0.00 1,948,296.70 October 1,948,296.70 29,167.00 2,453.60 0.00 1,979,917.30 November 1,979,917.30 29,167.00 2,484.56 13,710.00 1,997,858.86 December 1,997,858.86 29,167.00 2,515.55 0.00 2,029,541.41 $ 3,404,584.76 $ 350,004.00 $ 28,898.25 $ 1,753,945.60 $ 2,029,541.41 2028 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,029,541.41 $ 29,167.00 $ 2,552.71 $ 3,921.00 $ 2,057,340.12 February 2,057,340.12 29,167.00 2,589.90 0.00 2,089,097.02 March 2,089,097.02 29,167.00 2,597.30 51,680.00 2,069,181.32 April 2,069,181.32 29,167.00 2,604.71 0.00 2,100,953.03 May 2,100,953.03 29,167.00 2,644.42 0.00 2,132,764.45 June 2,132,764.45 29,167.00 2,667.46 26,764.00 2,137,834.91 July 2,137,834.91 29,167.00 2,690.52 0.00 2,169,692.43 August 2,169,692.43 29,167.00 2,730.34 0.00 2,201,589.77 September 2,201,589.77 29,167.00 2,770.22 0.00 2,233,526.99 October 2,233,526.99 29,167.00 2,810.14 0.00 2,265,504.13 November 2,265,504.13 29,167.00 2,850.11 0.00 2,297,521.24 December 2,297,521.24 29,167.00 2,890.13 0.00 2,329,578.37 $ 2,029,541.41 $ 350,004.00 $ 32,397.96 $ 82,365.00 $ 2,329,578.37



Cash Flow - Monthly 2029 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,329,578.37 $ 29,167.00 $ 1,594.21 $ 2,137,591.67 $ 222,747.91 February 222,747.91 29,167.00 296.66 0.00 252,211.57 March 252,211.57 29,167.00 324.74 14,000.00 267,703.31 April 267,703.31 29,167.00 352.86 0.00 297,223.17 May 297,223.17 29,167.00 385.94 6,110.00 320,666.11 June 320,666.11 29,167.00 419.06 0.00 350,252.17 July 350,252.17 29,167.00 456.04 0.00 379,875.21 August 379,875.21 29,167.00 493.07 0.00 409,535.28 September 409,535.28 29,167.00 530.15 0.00 439,232.43 October 439,232.43 29,167.00 567.27 0.00 468,966.70 November 468,966.70 29,167.00 604.44 0.00 498,738.14 December 498,738.14 29,167.00 641.65 0.00 528,546.79 $ 2,329,578.37 $ 350,004.00 $ 6,666.09 $ 2,157,701.67 $ 528,546.79 2030 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 528,546.79 $ 29,167.00 $ 678.91 $ 0.00 $ 558,392.70 February 558,392.70 29,167.00 716.22 0.00 588,275.92 March 588,275.92 29,167.00 525.98 364,150.00 253,818.90 April 253,818.90 29,167.00 335.50 0.00 283,321.40 May 283,321.40 29,167.00 372.38 0.00 312,860.78 June 312,860.78 29,167.00 404.44 7,792.00 334,640.22 July 334,640.22 29,167.00 436.53 0.00 364,243.75 August 364,243.75 29,167.00 473.53 0.00 393,884.28 September 393,884.28 29,167.00 510.58 0.00 423,561.86 October 423,561.86 29,167.00 547.68 0.00 453,276.54 November 453,276.54 29,167.00 584.83 0.00 483,028.37 December 483,028.37 29,167.00 622.01 0.00 512,817.38 $ 528,546.79 $ 350,004.00 $ 6,208.59 $ 371,942.00 $ 512,817.38 2031 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 512,817.38 $ 29,167.00 $ 656.80 $ 3,921.00 $ 538,720.18 February 538,720.18 29,167.00 691.63 0.00 568,578.81 March 568,578.81 29,167.00 728.95 0.00 598,474.76 April 598,474.76 29,167.00 766.32 0.00 628,408.08 May 628,408.08 29,167.00 803.74 0.00 658,378.82 June 658,378.82 29,167.00 826.28 23,884.00 664,488.10 July 664,488.10 29,167.00 848.84 0.00 694,503.94 August 694,503.94 29,167.00 886.36 0.00 724,557.30 September 724,557.30 29,167.00 919.48 7,109.00 747,534.78 October 747,534.78 29,167.00 952.65 0.00 777,654.43 November 777,654.43 29,167.00 990.30 0.00 807,811.73 December 807,811.73 29,167.00 1,027.99 0.00 838,006.72 $ 512,817.38 $ 350,004.00 $ 10,099.34 $ 34,914.00 $ 838,006.72



Cash Flow - Monthly 2032 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 838,006.72 $ 29,167.00 $ 1,055.29 $ 16,720.00 $ 851,509.01 February 851,509.01 29,167.00 1,082.62 0.00 881,758.63 March 881,758.63 29,167.00 1,120.43 0.00 912,046.06 April 912,046.06 29,167.00 1,158.29 0.00 942,371.35 May 942,371.35 29,167.00 1,196.19 0.00 972,734.54 June 972,734.54 29,167.00 1,234.15 0.00 1,003,135.69 July 1,003,135.69 29,167.00 1,272.15 0.00 1,033,574.84 August 1,033,574.84 29,167.00 1,310.20 0.00 1,064,052.04 September 1,064,052.04 29,167.00 1,348.29 0.00 1,094,567.33 October 1,094,567.33 29,167.00 1,386.44 0.00 1,125,120.77 November 1,125,120.77 29,167.00 1,424.63 0.00 1,155,712.40 December 1,155,712.40 29,167.00 1,462.87 0.00 1,186,342.27 $ 838,006.72 $ 350,004.00 $ 15,051.55 $ 16,720.00 $ 1,186,342.27 2033 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,186,342.27 $ 29,167.00 $ 1,466.52 $ 55,426.00 $ 1,161,549.79 February 1,161,549.79 29,167.00 1,470.17 0.00 1,192,186.96 March 1,192,186.96 29,167.00 1,508.46 0.00 1,222,862.42 April 1,222,862.42 29,167.00 1,546.81 0.00 1,253,576.23 May 1,253,576.23 29,167.00 1,585.20 0.00 1,284,328.43 June 1,284,328.43 29,167.00 1,610.80 20,546.00 1,294,560.23 July 1,294,560.23 29,167.00 1,636.43 0.00 1,325,363.66 August 1,325,363.66 29,167.00 1,674.93 0.00 1,356,205.59 September 1,356,205.59 29,167.00 1,713.49 0.00 1,387,086.08 October 1,387,086.08 29,167.00 1,752.09 0.00 1,418,005.17 November 1,418,005.17 29,167.00 1,790.74 0.00 1,448,962.91 December 1,448,962.91 29,167.00 1,829.43 0.00 1,479,959.34 $ 1,186,342.27 $ 350,004.00 $ 19,585.07 $ 75,972.00 $ 1,479,959.34 2034 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,479,959.34 $ 29,167.00 $ 1,792.13 $ 121,681.00 $ 1,389,237.47 February 1,389,237.47 29,167.00 1,754.78 0.00 1,420,159.25 March 1,420,159.25 29,167.00 1,793.43 0.00 1,451,119.68 April 1,451,119.68 29,167.00 1,832.13 0.00 1,482,118.81 May 1,482,118.81 29,167.00 1,870.88 0.00 1,513,156.69 June 1,513,156.69 29,167.00 1,874.44 56,375.00 1,487,823.13 July 1,487,823.13 29,167.00 1,876.59 2,277.00 1,516,589.72 August 1,516,589.72 29,167.00 1,912.54 2,277.00 1,545,392.26 September 1,545,392.26 29,167.00 1,948.55 2,277.00 1,574,230.81 October 1,574,230.81 29,167.00 1,986.02 0.00 1,605,383.83 November 1,605,383.83 29,167.00 2,024.96 0.00 1,636,575.79 December 1,636,575.79 29,167.00 2,063.95 0.00 1,667,806.74 $ 1,479,959.34 $ 350,004.00 $ 22,730.40 $ 184,887.00 $ 1,667,806.74



Cash Flow - Monthly 2035 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,667,806.74 $ 29,167.00 $ 2,046.84 $ 89,842.00 $ 1,609,178.58 February 1,609,178.58 29,167.00 2,029.70 0.00 1,640,375.28 March 1,640,375.28 29,167.00 2,068.70 0.00 1,671,610.98 April 1,671,610.98 29,167.00 2,107.74 0.00 1,702,885.72 May 1,702,885.72 29,167.00 2,146.84 0.00 1,734,199.56 June 1,734,199.56 29,167.00 2,135.35 81,004.00 1,684,497.91 July 1,684,497.91 29,167.00 2,123.85 0.00 1,715,788.76 August 1,715,788.76 29,167.00 2,162.97 0.00 1,747,118.73 September 1,747,118.73 29,167.00 2,202.13 0.00 1,778,487.86 October 1,778,487.86 29,167.00 2,241.34 0.00 1,809,896.20 November 1,809,896.20 29,167.00 2,280.60 0.00 1,841,343.80 December 1,841,343.80 29,167.00 2,319.91 0.00 1,872,830.71 $ 1,667,806.74 $ 350,004.00 $ 25,865.97 $ 170,846.00 $ 1,872,830.71 2036 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,872,830.71 $ 29,167.00 $ 2,081.31 $ 444,731.68 $ 1,459,347.34 February 1,459,347.34 29,167.00 1,842.41 0.00 1,490,356.75 March 1,490,356.75 29,167.00 1,881.18 0.00 1,521,404.93 April 1,521,404.93 29,167.00 1,919.99 0.00 1,552,491.92 May 1,552,491.92 29,167.00 1,958.84 0.00 1,583,617.76 June 1,583,617.76 29,167.00 1,994.22 5,648.00 1,609,130.98 July 1,609,130.98 29,167.00 2,029.64 0.00 1,640,327.62 August 1,640,327.62 29,167.00 2,068.64 0.00 1,671,563.26 September 1,671,563.26 29,167.00 2,107.68 0.00 1,702,837.94 October 1,702,837.94 29,167.00 2,035.10 178,688.00 1,555,352.04 November 1,555,352.04 29,167.00 1,936.41 41,608.00 1,544,847.45 December 1,544,847.45 29,167.00 1,949.29 0.00 1,575,963.74 $ 1,872,830.71 $ 350,004.00 $ 23,804.71 $ 670,675.68 $ 1,575,963.74 2037 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,575,963.74 $ 29,167.00 $ 1,896.86 $ 146,111.00 $ 1,460,916.60 February 1,460,916.60 29,167.00 1,844.38 0.00 1,491,927.98 March 1,491,927.98 29,167.00 1,883.14 0.00 1,522,978.12 April 1,522,978.12 29,167.00 1,921.95 0.00 1,554,067.07 May 1,554,067.07 29,167.00 1,960.81 0.00 1,585,194.88 June 1,585,194.88 29,167.00 1,994.03 9,108.00 1,607,247.91 July 1,607,247.91 29,167.00 2,027.29 0.00 1,638,442.20 August 1,638,442.20 29,167.00 2,066.28 0.00 1,669,675.48 September 1,669,675.48 29,167.00 2,105.32 0.00 1,700,947.80 October 1,700,947.80 29,167.00 2,144.41 0.00 1,732,259.21 November 1,732,259.21 29,167.00 2,183.55 0.00 1,763,609.76 December 1,763,609.76 29,167.00 2,222.74 0.00 1,794,999.50 $ 1,575,963.74 $ 350,004.00 $ 24,250.76 $ 155,219.00 $ 1,794,999.50



Cash Flow - Monthly 2038 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,794,999.50 $ 29,167.00 $ 2,207.48 $ 87,200.00 $ 1,739,173.98 February 1,739,173.98 29,167.00 2,192.20 0.00 1,770,533.18 March 1,770,533.18 29,167.00 2,222.65 14,000.00 1,787,922.83 April 1,787,922.83 29,167.00 2,253.13 0.00 1,819,342.96 May 1,819,342.96 29,167.00 2,292.41 0.00 1,850,802.37 June 1,850,802.37 29,167.00 2,326.86 7,792.00 1,874,504.23 July 1,874,504.23 29,167.00 2,361.36 0.00 1,906,032.59 August 1,906,032.59 29,167.00 2,400.77 0.00 1,937,600.36 September 1,937,600.36 29,167.00 2,440.23 0.00 1,969,207.59 October 1,969,207.59 29,167.00 2,479.74 0.00 2,000,854.33 November 2,000,854.33 29,167.00 2,519.30 0.00 2,032,540.63 December 2,032,540.63 29,167.00 2,558.91 0.00 2,064,266.54 $ 1,794,999.50 $ 350,004.00 $ 28,255.04 $ 108,992.00 $ 2,064,266.54 2039 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,064,266.54 $ 29,167.00 $ 2,525.17 $ 117,432.00 $ 1,978,526.71 February 1,978,526.71 29,167.00 2,483.02 13,382.00 1,996,794.73 March 1,996,794.73 29,167.00 2,514.22 0.00 2,028,475.95 April 2,028,475.95 29,167.00 2,553.82 0.00 2,060,196.77 May 2,060,196.77 29,167.00 2,593.48 0.00 2,091,957.25 June 2,091,957.25 29,167.00 2,628.80 6,999.00 2,116,754.05 July 2,116,754.05 29,167.00 2,664.17 0.00 2,148,585.22 August 2,148,585.22 29,167.00 2,703.96 0.00 2,180,456.18 September 2,180,456.18 29,167.00 2,743.80 0.00 2,212,366.98 October 2,212,366.98 29,167.00 2,775.12 13,710.00 2,230,599.10 November 2,230,599.10 29,167.00 2,806.48 0.00 2,262,572.58 December 2,262,572.58 29,167.00 2,825.08 34,190.00 2,260,374.66 $ 2,064,266.54 $ 350,004.00 $ 31,817.12 $ 185,713.00 $ 2,260,374.66 2040 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,260,374.66 $ 29,167.00 $ 2,801.25 $ 67,916.00 $ 2,224,426.91 February 2,224,426.91 29,167.00 2,798.76 0.00 2,256,392.67 March 2,256,392.67 29,167.00 2,611.13 364,150.00 1,924,020.80 April 1,924,020.80 29,167.00 2,423.26 0.00 1,955,611.06 May 1,955,611.06 29,167.00 2,454.38 13,382.00 1,973,850.44 June 1,973,850.44 29,167.00 2,485.54 0.00 2,005,502.98 July 2,005,502.98 29,167.00 2,525.11 0.00 2,037,195.09 August 2,037,195.09 29,167.00 2,564.72 0.00 2,068,926.81 September 2,068,926.81 29,167.00 2,604.39 0.00 2,100,698.20 October 2,100,698.20 29,167.00 2,644.10 0.00 2,132,509.30 November 2,132,509.30 29,167.00 2,683.87 0.00 2,164,360.17 December 2,164,360.17 29,167.00 2,715.32 13,382.00 2,182,860.49 $ 2,260,374.66 $ 350,004.00 $ 31,311.83 $ 458,830.00 $ 2,182,860.49



Cash Flow - Monthly 2041 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,182,860.49 $ 29,167.00 $ 2,410.45 $ 538,175.00 $ 1,676,262.94 February 1,676,262.94 29,167.00 2,113.56 0.00 1,707,543.50 March 1,707,543.50 29,167.00 2,152.66 0.00 1,738,863.16 April 1,738,863.16 29,167.00 2,191.81 0.00 1,770,221.97 May 1,770,221.97 29,167.00 2,231.01 0.00 1,801,619.98 June 1,801,619.98 29,167.00 2,262.28 12,757.00 1,820,292.26 July 1,820,292.26 29,167.00 2,293.59 0.00 1,851,752.85 August 1,851,752.85 29,167.00 2,332.15 1,228.00 1,882,024.00 September 1,882,024.00 29,167.00 2,366.32 7,109.00 1,906,448.32 October 1,906,448.32 29,167.00 2,401.29 0.00 1,938,016.61 November 1,938,016.61 29,167.00 2,432.18 13,710.00 1,955,905.79 December 1,955,905.79 29,167.00 2,463.11 0.00 1,987,535.90 $ 2,182,860.49 $ 350,004.00 $ 27,650.41 $ 572,979.00 $ 1,987,535.90 2042 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,987,535.90 $ 29,167.00 $ 2,462.21 $ 64,709.00 $ 1,954,456.11 February 1,954,456.11 29,167.00 2,461.30 0.00 1,986,084.41 March 1,986,084.41 29,167.00 2,500.83 0.00 2,017,752.24 April 2,017,752.24 29,167.00 2,540.42 0.00 2,049,459.66 May 2,049,459.66 29,167.00 2,580.05 0.00 2,081,206.71 June 2,081,206.71 29,167.00 2,613.79 9,519.00 2,103,468.50 July 2,103,468.50 29,167.00 2,647.57 0.00 2,135,283.07 August 2,135,283.07 29,167.00 2,687.33 0.00 2,167,137.40 September 2,167,137.40 29,167.00 2,727.15 0.00 2,199,031.55 October 2,199,031.55 29,167.00 2,767.02 0.00 2,230,965.57 November 2,230,965.57 29,167.00 2,806.94 0.00 2,262,939.51 December 2,262,939.51 29,167.00 2,846.90 0.00 2,294,953.41 $ 1,987,535.90 $ 350,004.00 $ 31,641.51 $ 74,228.00 $ 2,294,953.41 2043 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,294,953.41 $ 29,167.00 $ 2,884.47 $ 3,921.00 $ 2,323,083.88 February 2,323,083.88 29,167.00 2,922.08 0.00 2,355,172.96 March 2,355,172.96 29,167.00 2,929.90 51,680.00 2,335,589.86 April 2,335,589.86 29,167.00 2,937.72 0.00 2,367,694.58 May 2,367,694.58 29,167.00 2,977.85 0.00 2,399,839.43 June 2,399,839.43 29,167.00 3,018.03 0.00 2,432,024.46 July 2,432,024.46 29,167.00 3,058.26 0.00 2,464,249.72 August 2,464,249.72 29,167.00 3,098.54 0.00 2,496,515.26 September 2,496,515.26 29,167.00 3,138.87 0.00 2,528,821.13 October 2,528,821.13 29,167.00 3,179.26 0.00 2,561,167.39 November 2,561,167.39 29,167.00 3,219.69 0.00 2,593,554.08 December 2,593,554.08 29,167.00 3,260.17 0.00 2,625,981.25 $ 2,294,953.41 $ 350,004.00 $ 36,624.84 $ 55,601.00 $ 2,625,981.25



Cash Flow - Monthly 2044 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,625,981.25 $ 29,167.00 $ 2,355.33 $ 1,512,600.00 $ 1,144,903.58 February 1,144,903.58 29,167.00 1,449.36 0.00 1,175,519.94 March 1,175,519.94 29,167.00 1,487.63 0.00 1,206,174.57 April 1,206,174.57 29,167.00 1,525.95 0.00 1,236,867.52 May 1,236,867.52 29,167.00 1,560.50 6,110.00 1,261,485.02 June 1,261,485.02 29,167.00 1,578.36 26,764.00 1,265,466.38 July 1,265,466.38 29,167.00 1,600.06 0.00 1,296,233.44 August 1,296,233.44 29,167.00 1,638.52 0.00 1,327,038.96 September 1,327,038.96 29,167.00 1,677.03 0.00 1,357,882.99 October 1,357,882.99 29,167.00 1,715.58 0.00 1,388,765.57 November 1,388,765.57 29,167.00 1,754.19 0.00 1,419,686.76 December 1,419,686.76 29,167.00 1,792.84 0.00 1,450,646.60 $ 2,625,981.25 $ 350,004.00 $ 20,135.35 $ 1,545,474.00 $ 1,450,646.60 2045 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,450,646.60 $ 29,167.00 $ 1,831.54 $ 0.00 $ 1,481,645.14 February 1,481,645.14 29,167.00 1,870.29 0.00 1,512,682.43 March 1,512,682.43 29,167.00 1,909.08 0.00 1,543,758.51 April 1,543,758.51 29,167.00 1,947.93 0.00 1,574,873.44 May 1,574,873.44 29,167.00 1,986.82 0.00 1,606,027.26 June 1,606,027.26 29,167.00 2,025.76 0.00 1,637,220.02 July 1,637,220.02 29,167.00 2,064.75 0.00 1,668,451.77 August 1,668,451.77 29,167.00 2,103.79 0.00 1,699,722.56 September 1,699,722.56 29,167.00 2,142.88 0.00 1,731,032.44 October 1,731,032.44 29,167.00 2,182.02 0.00 1,762,381.46 November 1,762,381.46 29,167.00 2,221.21 0.00 1,793,769.67 December 1,793,769.67 29,167.00 2,260.44 0.00 1,825,197.11 $ 1,450,646.60 $ 350,004.00 $ 24,546.51 $ 0.00 $ 1,825,197.11 2046 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,825,197.11 $ 29,167.00 $ 2,231.39 $ 109,345.00 $ 1,747,250.50 February 1,747,250.50 29,167.00 2,202.29 0.00 1,778,619.79 March 1,778,619.79 29,167.00 2,241.50 0.00 1,810,028.29 April 1,810,028.29 29,167.00 2,280.76 0.00 1,841,476.05 May 1,841,476.05 29,167.00 2,320.07 0.00 1,872,963.12 June 1,872,963.12 29,167.00 2,341.37 28,905.00 1,875,566.49 July 1,875,566.49 29,167.00 2,361.26 2,277.00 1,904,817.75 August 1,904,817.75 29,167.00 2,397.83 2,277.00 1,934,105.58 September 1,934,105.58 29,167.00 2,434.44 2,277.00 1,963,430.02 October 1,963,430.02 29,167.00 2,472.52 0.00 1,995,069.54 November 1,995,069.54 29,167.00 2,512.07 0.00 2,026,748.61 December 2,026,748.61 29,167.00 2,551.67 0.00 2,058,467.28 $ 1,825,197.11 $ 350,004.00 $ 28,347.17 $ 145,081.00 $ 2,058,467.28



Cash Flow - Monthly 2047 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,058,467.28 $ 29,167.00 $ 1,985.80 $ 968,820.40 $ 1,120,799.68 February 1,120,799.68 29,167.00 1,419.23 0.00 1,151,385.91 March 1,151,385.91 29,167.00 1,448.71 14,000.00 1,168,001.62 April 1,168,001.62 29,167.00 1,478.23 0.00 1,198,646.85 May 1,198,646.85 29,167.00 1,516.54 0.00 1,229,330.39 June 1,229,330.39 29,167.00 1,547.67 11,553.00 1,248,492.06 July 1,248,492.06 29,167.00 1,578.84 0.00 1,279,237.90 August 1,279,237.90 29,167.00 1,617.28 0.00 1,310,022.18 September 1,310,022.18 29,167.00 1,655.76 0.00 1,340,844.94 October 1,340,844.94 29,167.00 1,694.29 0.00 1,371,706.23 November 1,371,706.23 29,167.00 1,732.86 0.00 1,402,606.09 December 1,402,606.09 29,167.00 1,771.49 0.00 1,433,544.58 $ 2,058,467.28 $ 350,004.00 $ 19,446.70 $ 994,373.40 $ 1,433,544.58 2048 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,433,544.58 $ 29,167.00 $ 1,747.55 $ 100,181.00 $ 1,364,278.13 February 1,364,278.13 29,167.00 1,723.58 0.00 1,395,168.71 March 1,395,168.71 29,167.00 1,762.19 0.00 1,426,097.90 April 1,426,097.90 29,167.00 1,800.85 0.00 1,457,065.75 May 1,457,065.75 29,167.00 1,839.56 0.00 1,488,072.31 June 1,488,072.31 29,167.00 1,868.94 15,000.00 1,504,108.25 July 1,504,108.25 29,167.00 1,898.36 0.00 1,535,173.61 August 1,535,173.61 29,167.00 1,937.20 0.00 1,566,277.81 September 1,566,277.81 29,167.00 1,976.08 0.00 1,597,420.89 October 1,597,420.89 29,167.00 2,015.01 0.00 1,628,602.90 November 1,628,602.90 29,167.00 2,053.98 0.00 1,659,823.88 December 1,659,823.88 29,167.00 2,093.01 0.00 1,691,083.89 $ 1,433,544.58 $ 350,004.00 $ 22,716.31 $ 115,181.00 $ 1,691,083.89 2049 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,691,083.89 $ 29,167.00 $ 1,775.49 $ 570,543.38 $ 1,151,483.00 February 1,151,483.00 29,167.00 1,457.58 0.00 1,182,107.58 March 1,182,107.58 29,167.00 1,495.86 0.00 1,212,770.44 April 1,212,770.44 29,167.00 1,534.19 0.00 1,243,471.63 May 1,243,471.63 29,167.00 1,572.57 0.00 1,274,211.20 June 1,274,211.20 29,167.00 1,605.30 9,108.00 1,295,875.50 July 1,295,875.50 29,167.00 1,638.07 0.00 1,326,680.57 August 1,326,680.57 29,167.00 1,676.58 0.00 1,357,524.15 September 1,357,524.15 29,167.00 1,715.13 0.00 1,388,406.28 October 1,388,406.28 29,167.00 1,753.74 0.00 1,419,327.02 November 1,419,327.02 29,167.00 1,792.39 0.00 1,450,286.41 December 1,450,286.41 29,167.00 1,831.09 0.00 1,481,284.50 $ 1,691,083.89 $ 350,004.00 $ 19,847.99 $ 579,651.38 $ 1,481,284.50



Cash Flow - Monthly 2050 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,481,284.50 $ 29,167.00 $ 1,813.68 $ 89,842.00 $ 1,422,423.18 February 1,422,423.18 29,167.00 1,796.26 0.00 1,453,386.44 March 1,453,386.44 29,167.00 1,607.37 364,150.00 1,120,010.81 April 1,120,010.81 29,167.00 1,418.24 0.00 1,150,596.05 May 1,150,596.05 29,167.00 1,456.47 0.00 1,181,219.52 June 1,181,219.52 29,167.00 1,494.75 0.00 1,211,881.27 July 1,211,881.27 29,167.00 1,533.08 0.00 1,242,581.35 August 1,242,581.35 29,167.00 1,571.46 0.00 1,273,319.81 September 1,273,319.81 29,167.00 1,609.88 0.00 1,304,096.69 October 1,304,096.69 29,167.00 1,648.35 0.00 1,334,912.04 November 1,334,912.04 29,167.00 1,686.87 0.00 1,365,765.91 December 1,365,765.91 29,167.00 1,725.44 0.00 1,396,658.35 $ 1,481,284.50 $ 350,004.00 $ 19,361.85 $ 453,992.00 $ 1,396,658.35 2051 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,396,658.35 $ 29,167.00 $ 1,764.05 $ 0.00 $ 1,427,589.40 February 1,427,589.40 29,167.00 1,802.72 0.00 1,458,559.12 March 1,458,559.12 29,167.00 1,841.43 0.00 1,489,567.55 April 1,489,567.55 29,167.00 1,880.19 0.00 1,520,614.74 May 1,520,614.74 29,167.00 1,919.00 0.00 1,551,700.74 June 1,551,700.74 29,167.00 1,939.62 29,175.00 1,553,632.36 July 1,553,632.36 29,167.00 1,960.27 0.00 1,584,759.63 August 1,584,759.63 29,167.00 1,999.18 0.00 1,615,925.81 September 1,615,925.81 29,167.00 2,033.69 7,109.00 1,640,017.50 October 1,640,017.50 29,167.00 2,068.25 0.00 1,671,252.75 November 1,671,252.75 29,167.00 2,107.30 0.00 1,702,527.05 December 1,702,527.05 29,167.00 2,146.39 0.00 1,733,840.44 $ 1,396,658.35 $ 350,004.00 $ 23,462.09 $ 36,284.00 $ 1,733,840.44 2052 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,733,840.44 $ 29,167.00 $ 2,132.08 $ 85,521.00 $ 1,679,618.52 February 1,679,618.52 29,167.00 2,117.75 0.00 1,710,903.27 March 1,710,903.27 29,167.00 2,156.86 0.00 1,742,227.13 April 1,742,227.13 29,167.00 2,196.01 0.00 1,773,590.14 May 1,773,590.14 29,167.00 2,235.22 0.00 1,804,992.36 June 1,804,992.36 29,167.00 2,274.47 0.00 1,836,433.83 July 1,836,433.83 29,167.00 2,313.77 0.00 1,867,914.60 August 1,867,914.60 29,167.00 2,353.12 0.00 1,899,434.72 September 1,899,434.72 29,167.00 2,392.52 0.00 1,930,994.24 October 1,930,994.24 29,167.00 2,431.97 0.00 1,962,593.21 November 1,962,593.21 29,167.00 2,471.47 0.00 1,994,231.68 December 1,994,231.68 29,167.00 2,511.02 0.00 2,025,909.70 $ 1,733,840.44 $ 350,004.00 $ 27,586.26 $ 85,521.00 $ 2,025,909.70



Cash Flow - Monthly 2053 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,025,909.70 $ 29,167.00 $ 2,496.12 $ 87,200.00 $ 1,970,372.82 February 1,970,372.82 29,167.00 2,481.20 0.00 2,002,021.02 March 2,002,021.02 29,167.00 2,520.76 0.00 2,033,708.78 April 2,033,708.78 29,167.00 2,560.37 0.00 2,065,436.15 May 2,065,436.15 29,167.00 2,600.02 0.00 2,097,203.17 June 2,097,203.17 29,167.00 2,634.57 8,256.00 2,120,748.74 July 2,120,748.74 29,167.00 2,669.17 0.00 2,152,584.91 August 2,152,584.91 29,167.00 2,708.96 0.00 2,184,460.87 September 2,184,460.87 29,167.00 2,748.81 0.00 2,216,376.68 October 2,216,376.68 29,167.00 2,780.13 13,710.00 2,234,613.81 November 2,234,613.81 29,167.00 2,811.50 0.00 2,266,592.31 December 2,266,592.31 29,167.00 2,830.10 34,190.00 2,264,399.41 $ 2,025,909.70 $ 350,004.00 $ 31,841.71 $ 143,356.00 $ 2,264,399.41 2054 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,264,399.41 $ 29,167.00 $ 2,825.01 $ 37,950.00 $ 2,258,441.42 February 2,258,441.42 29,167.00 2,841.28 0.00 2,290,449.70 March 2,290,449.70 29,167.00 2,881.29 0.00 2,322,497.99 April 2,322,497.99 29,167.00 2,921.35 0.00 2,354,586.34 May 2,354,586.34 29,167.00 2,961.46 0.00 2,386,714.80 June 2,386,714.80 29,167.00 2,971.18 48,702.00 2,370,150.98 July 2,370,150.98 29,167.00 2,980.92 0.00 2,402,298.90 August 2,402,298.90 29,167.00 3,021.10 0.00 2,434,487.00 September 2,434,487.00 29,167.00 3,061.34 0.00 2,466,715.34 October 2,466,715.34 29,167.00 3,101.62 0.00 2,498,983.96 November 2,498,983.96 29,167.00 3,141.96 0.00 2,531,292.92 December 2,531,292.92 29,167.00 3,182.35 0.00 2,563,642.27 $ 2,264,399.41 $ 350,004.00 $ 35,890.86 $ 86,652.00 $ 2,563,642.27 2055 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,563,642.27 $ 29,167.00 $ 3,197.92 $ 39,780.00 $ 2,556,227.19 February 2,556,227.19 29,167.00 3,205.15 13,382.00 2,575,217.34 March 2,575,217.34 29,167.00 3,237.25 0.00 2,607,621.59 April 2,607,621.59 29,167.00 3,277.76 0.00 2,640,066.35 May 2,640,066.35 29,167.00 3,318.31 0.00 2,672,551.66 June 2,672,551.66 29,167.00 3,306.76 83,449.00 2,621,576.42 July 2,621,576.42 29,167.00 3,295.20 0.00 2,654,038.62 August 2,654,038.62 29,167.00 3,335.78 0.00 2,686,541.40 September 2,686,541.40 29,167.00 3,376.41 0.00 2,719,084.81 October 2,719,084.81 29,167.00 3,417.09 0.00 2,751,668.90 November 2,751,668.90 29,167.00 3,449.25 13,710.00 2,770,575.15 December 2,770,575.15 29,167.00 3,481.45 0.00 2,803,223.60 $ 2,563,642.27 $ 350,004.00 $ 39,898.33 $ 150,321.00 $ 2,803,223.60



Cash Flow - Monthly 2056 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,803,223.60 $ 29,167.00 $ 3,240.19 $ 451,315.68 $ 2,384,315.11 February 2,384,315.11 29,167.00 2,998.62 0.00 2,416,480.73 March 2,416,480.73 29,167.00 3,030.08 14,000.00 2,434,677.81 April 2,434,677.81 29,167.00 3,061.58 0.00 2,466,906.39 May 2,466,906.39 29,167.00 3,093.50 13,382.00 2,485,784.89 June 2,485,784.89 29,167.00 3,121.93 5,648.00 2,512,425.82 July 2,512,425.82 29,167.00 3,158.76 0.00 2,544,751.58 August 2,544,751.58 29,167.00 3,198.40 1,228.00 2,575,888.98 September 2,575,888.98 29,167.00 3,238.09 0.00 2,608,294.07 October 2,608,294.07 29,167.00 3,278.60 0.00 2,640,739.67 November 2,640,739.67 29,167.00 3,319.15 0.00 2,673,225.82 December 2,673,225.82 29,167.00 3,351.40 13,382.00 2,692,362.22 $ 2,803,223.60 $ 350,004.00 $ 38,090.30 $ 498,955.68 $ 2,692,362.22 2057 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,692,362.22 $ 29,167.00 $ 2,709.69 $ 1,078,390.20 $ 1,645,848.71 February 1,645,848.71 29,167.00 2,075.54 0.00 1,677,091.25 March 1,677,091.25 29,167.00 2,114.59 0.00 1,708,372.84 April 1,708,372.84 29,167.00 2,153.70 0.00 1,739,693.54 May 1,739,693.54 29,167.00 2,192.85 0.00 1,771,053.39 June 1,771,053.39 29,167.00 2,227.39 7,455.00 1,794,992.78 July 1,794,992.78 29,167.00 2,261.97 0.00 1,826,421.75 August 1,826,421.75 29,167.00 2,301.26 0.00 1,857,890.01 September 1,857,890.01 29,167.00 2,340.59 0.00 1,889,397.60 October 1,889,397.60 29,167.00 2,379.98 0.00 1,920,944.58 November 1,920,944.58 29,167.00 2,419.41 0.00 1,952,530.99 December 1,952,530.99 29,167.00 2,458.89 0.00 1,984,156.88 $ 2,692,362.22 $ 350,004.00 $ 27,635.86 $ 1,085,845.20 $ 1,984,156.88 2058 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 1,984,156.88 $ 29,167.00 $ 2,427.83 $ 112,957.00 $ 1,902,794.71 February 1,902,794.71 29,167.00 2,396.72 0.00 1,934,358.43 March 1,934,358.43 29,167.00 2,403.88 51,680.00 1,914,249.31 April 1,914,249.31 29,167.00 2,411.04 0.00 1,945,827.35 May 1,945,827.35 29,167.00 2,450.51 0.00 1,977,444.86 June 1,977,444.86 29,167.00 2,480.37 15,465.00 1,993,627.23 July 1,993,627.23 29,167.00 2,508.84 2,277.00 2,023,026.07 August 2,023,026.07 29,167.00 2,545.59 2,277.00 2,052,461.66 September 2,052,461.66 29,167.00 2,582.38 2,277.00 2,081,934.04 October 2,081,934.04 29,167.00 2,620.65 0.00 2,113,721.69 November 2,113,721.69 29,167.00 2,660.38 0.00 2,145,549.07 December 2,145,549.07 29,167.00 2,700.17 0.00 2,177,416.24 $ 1,984,156.88 $ 350,004.00 $ 30,188.36 $ 186,933.00 $ 2,177,416.24



Cash Flow - Monthly 2059 Beginning Balance Contribution Interest Earned Expenditures Ending Balance January $ 2,177,416.24 $ 29,167.00 $ 1,708.96 $ 1,649,669.29 $ 558,622.91 February 558,622.91 29,167.00 716.51 0.00 588,506.42 March 588,506.42 29,167.00 753.86 0.00 618,427.28 April 618,427.28 29,167.00 791.26 0.00 648,385.54 May 648,385.54 29,167.00 824.89 6,110.00 672,267.43 June 672,267.43 29,167.00 855.72 4,554.00 697,736.15 July 697,736.15 29,167.00 890.40 0.00 727,793.55 August 727,793.55 29,167.00 927.97 0.00 757,888.52 September 757,888.52 29,167.00 965.59 0.00 788,021.11 October 788,021.11 29,167.00 1,003.26 0.00 818,191.37 November 818,191.37 29,167.00 1,040.97 0.00 848,399.34 December 848,399.34 29,167.00 1,078.73 0.00 878,645.07 $ 2,177,416.24 $ 350,004.00 $ 11,558.12 $ 1,660,333.29 $ 878,645.07



Supplementary Information

on Future Major Repairs and Replacements

Estimated Estimated Components Remaining Current 2020 of Fund Useful Lives Replacement Funding Balance at Life YY:MM Cost Requirement 12/31/2019

Common Area Interiors

Fitness Equip., Bikes 0:00 $ 2,642 $ 184 $ 2,642 Fitness Equip., Elliptical 6:07 1,228 81 306 Fitness Equip., Treadmills 7:05 7,455 490 1,671 Fitness Equip., Universal Gym 0:00 2,899 119 2,899 Flooring, Fitness Center 4:00 4,050 266 1,317 Flooring, Tile (Clubhouse) 3:05 15,000 548 5,811 Flooring, Tile (Lobbies) 9:00 21,300 644 6,837 Furnishings/Finishes, Lobbies 7:10 13,710 965 2,678 Furniture/Furnishings, Clubhouse 5:09 13,710 965 3,583

$ 81,994 $ 4,262 $ 27,744

Elevators

Elevator Clean Down 13:05 $ 12,290 $ 673 $ 1,388 Elevator Mechanical Modernization 21:00 450,975 17,780 32,001

$ 463,265 $ 18,453 $ 33,389

Fencing

Perimeter Fencing 13:00 $ 55,426 $ 2,185 $ 11,799

$ 55,426 $ 2,185 $ 11,799






Fire Safety Systems

Fire Alarm System Controllers 16:10 $ 41,608 $ 1,640 $ 6,028 Fire Pump Repair/Replacement 5:11 34,190 2,407 8,755 Fire System Water 2:00 50,000 1,895 20,469

$ 125,798 $ 5,942 $ 35,252

Hot Water Equipment

Boilers Replacement 3:00 - 8:05 $ 93,674 $ 5,770 $ 28,128 Circulation Pumps Repair/Replace 2:05 13,188 1,083 4,671

$ 106,862 $ 6,853 $ 32,799

Miscellaneous

Domestic Water Panel/Equip. 2:00 - 4:00 $ 100,086 $ 3,639 $ 39,300 Domestic Water Pumps Allowance 1:05 5,648 1,113 1,795 HVAC Air Handlers 2:00 -13:05 20,640 923 5,356 HVAC Condensers 2:05 - 5:05 22,770 1,870 6,844 Lift Stations Modernization 0:00 - 2:00 17,034 673 12,004 Lighting, Parking Lot 1:00 19,410 765 8,264 Plumbing Allowance 9:00 100,000 2,987 32,254 Security Barrier Gates 2:00 23,560 1,451 9,143 Sewer Pumps Replacement 1:05 - 1:08 14,218 976 5,604 Wireless Infrastructure Security Sys. 15:05 76,450 3,768 7,770

$ 399,816 $ 18,165 $ 128,334






Painting

Paint Common Area Interiors 0:02 $ 14,000 $ 1,505 $ 13,745 Paint Railings/Handrails 17:00 142,190 7,007 9,459 Paint Stairwells 8:02 51,680 3,119 11,460 Paint/Waterproof Building Ext. 0:02 364,150 38,455 357,647

$ 572,020 $ 50,086 $ 392,311

Paving

Concrete Paving/Curbing Allowance 0:00 - 6:00 $ 261,600 $ 14,354 $ 145,887

$ 261,600 $ 14,354 $ 145,887

Recreation

Pool & Spa Resurfacing 5:00 $ 30,050 $ 2,693 $ 7,269 Pool Deck Fencing/Gates 1:00 19,560 771 8,328 Pool Deck Pavers 14:05 40,910 2,016 5,065 Pool Furniture Allowance 4:00 16,720 2,060 3,708 Pool Heaters, Heat Pumps 4:00 12,600 1,242 3,353 Pool Lighting Allowance 3:00 7,105 259 2,801 Pool/Spa Equipment Allowance 2:05 7,792 960 2,412 Spa Heater, Propane 2:00 3,921 1,288 580 Sport Courts Resurfacing 3:05 6,999 862 1,778 Tennis Court Fencing 9:04 6,110 401 1,024 Tennis Court Lighting 3:00 19,164 700 7,555

$ 170,931 $ 13,252 $ 43,873






Restoration

Beach Crossovers, Restoration 14:00 $ 81,600 $ 4,233 $ 9,523 Concrete Restoration 9:00 1,500,000 79,556 343,059 Garage Doors, Exterior 5:00 22,477 1,477 6,646 Metal Doors Replacement 16:09 178,688 7,045 26,151 Railings Repair/Replacement 7:00 936,200 29,766 321,442 Trash Chutes, Restoration 16:00 80,668 1,988 21,465 Walkways/Balconies Resurfacing 7:00 796,580 46,184 207,810

$ 3,596,213 $ 170,249 $ 936,096

Roofing

A/C Stands, ABCD (2021) 1:00 $ 64,064 $ 5,262 $ 26,044 Roof Replacement, Metal-Buildings 9:00 49,669 1,483 16,020 Roof Replacement, SPF 9:00 -16:00 573,062 28,241 102,672 Roof Reseal, Flat 9:00 -16:00 227,574 11,215 40,773

$ 914,369 $ 46,201 $ 185,509

$ 6,748,294 $ 350,002 $ 1,972,993



Reserve Disclosures

2020 Reserve Current Useful Remaining Reserve Unfunded Funding Allocation Category Cost Life YY:MM Life YY:MM Balance Balance Required 12/31/2020 Common Area Interiors $ 81,994 10:00 -32:07 0:00 - 9:00 $ 27,886 $ 54,108 $ 4,179 $ 22,123 Elevators 463,265 18:00 -25:00 13:05 -21:00 33,601 429,664 18,091 95,313 Fencing 55,426 25:00 13:00 11,874 43,552 2,142 11,245 Fire Safety Systems 125,798 14:00 -26:00 2:00 -16:10 35,475 90,323 5,826 30,787 Hot Water Equipment 106,862 12:00 -16:00 2:05 - 8:05 33,008 73,854 6,719 35,396 Miscellaneous 399,816 5:00 -33:00 0:00 -15:05 129,096 270,720 17,808 94,023 Painting 572,020 9:02 -16:04 0:02 -17:00 382,925 189,095 55,972 294,789 Paving 261,600 17:00 -19:00 0:00 - 6:00 146,259 115,341 14,072 74,112 Recreation 170,931 3:00 -27:00 1:00 -14:05 44,150 126,781 12,994 68,397 Restoration 3,596,214 15:00 -40:00 5:00 -16:09 942,037 2,654,177 166,906 879,207 Roofing 914,369 12:00 -33:00 1:00 -16:00 186,686 727,683 45,295 238,560 $ 6,748,295 $ 1,972,993 $ 4,775,298 $ 350,004 $ 1,843,957

Page 101

ADDENDUM

Addendum

Page 102

Chapter 718 & 719 Florida Statutes The Condominium Act, 1995

The Cooperative Act, 1997 Chapter 718 & 719 Florida Statutes

CONDOMINIUMS 718.112 (2)(f) 2 & 3

COOPERATIVES 719.106 (1)(j) 2 & 3

2. In addition to annual operating expenses, the budget shall include reserve accounts for capital

expenditures and deferred maintenance. These accounts shall include, but are not limited to, roof

replacement, building painting, and pavement resurfacing, regardless of the amount of deferred

maintenance expense or replacement cost, and for any other item for which the deferred maintenance

expense or replacement cost exceeds $10,000. The amount to be reserved shall be computed by means

of a formula which is based upon estimated remaining useful life and estimated replacement cost or

deferred maintenance expense of each reserve item. The association may adjust replacement reserve

assessments annually to take into account any changes in estimates or extension of the useful life of a

reserve item caused by deferred maintenance. This subsection does not apply to budgets in which the

members of an association have, by a majority vote at a duly called meeting of the association,

determined for a fiscal year to provide no reserves or reserves less adequate than required by this

subsection. However, prior to turnover of control of an association by a developer to unit owners other

than a developer pursuant to s. 718.301, the developer may vote to waive the reserves or reduce the

funding of reserves for the first 2 years of the operation of the association, after which time reserves may

only be waived or reduced upon the vote of a majority of all nondeveloper voting interests voting in

person or by limited proxy at a duly called meeting of the association. If a meeting of the unit owners

has been called to determine to provide no reserves or reserves less adequate than required, and such

result is not attained or a quorum is not attained, the reserves as included in the budget shall go into

effect.

3. Reserve funds and any interest accruing thereon shall remain in the reserve account or accounts,

and shall be used only for authorized reserve expenditures unless their use for other purposes is

approved in advance by a vote of the majority of the voting interests, voting in person or by limited

proxy at a duly called meeting of the association. Prior to turnover of control of an association by a

developer to unit owners other than the developer pursuant to

s 718.301, the developer-controlled association shall not vote to use reserves for purposes other than that

for which they were intended without the approval of a majority of all nondeveloper voting interests,

voting in person or by limited proxy at a duly called meeting of the association.

GAB Robins, A Division of Cunningham Lindsey

Page 103

Florida Administrative Code Reserve Requirements

61B-22.001 Definitions. For the purposes of this chapter, the following definitions shall apply:

(2) “Capital expenditure” means an expenditure of funds for the purchase of an asset whose life is

greater than one year in length, or the replacement of an asset whose life is greater than one year in

length, or the addition to an asset which extends the life of the previously existing asset for a period

greater than one year.

(3) “Deferred maintenance” means any maintenance or repair that will be performed less frequently

than yearly and will result in maintaining the life of an asset; and

(4) “Reserves” means any funds which are restricted for deferred maintenance and capital

expenditures, including the items required by section 718.112(2)(f)2, Florida Statutes, and any other

funds restricted as to use by the condominium documents or the condominium association.

“Contingency reserves” which are not restricted as to use by the condominium documents or by the

association shall not be considered reserves within the meaning of this rule.

61B-22.003 Budgets. Required elements for estimated operating budgets. The budget for each

association shall:

(d) Include all estimated common expenses or expenditures of the association including the

categories set forth in section 718.504(20)(c), Florida Statutes. Reserves for capital expenditures

and deferred maintenance required by section 718.112(2)(f), Florida Statutes, must be included in

the proposed annual budget and shall not be waived or reduced prior to the mailing to unit

owners of a proposed annual budget. If the estimated common expense for any category set forth

in the statute is not applicable, the category shall be listed followed by an indication that the

expense is not applicable;

(e) Include a schedule stating each reserve account for capital expenditures and deferred

maintenance as a separate line item with the following minimum disclosures;

1. The total estimated useful life of the asset;

2. The estimated remaining useful life of the asset;

3. The estimated replacement cost or deferred maintenance expense of the asset;

4. The estimated fund balance as of the beginning of the period for which the budget will be in

effect; and,

5. The developer’s total funding obligation, when all units are sold, for each converter reserve

account established pursuant to section 718.618, Florida Statutes, if applicable.

(f) Include a separate schedule of any other reserve funds to be restricted by the association as a

separate line item with the following minimum disclosures;

1. The intended use of the restricted funds; and

2. The estimated fund balance of the item as of the beginning of the period for which the budget

will be in effect.

(g) “Contingency reserves” and any other categories of expense which are not restricted as to use

shall be stated in the operating portion of the budget rather than the reserve portion of the budget.


Page 104

61B-22.005 Reserves. Reserves required by statute. Reserves required by section 718.112(2)(f),

Florida Statutes, for capital expenditures and deferred maintenance including roofing, painting, paving,

and any other item for which the deferred maintenance expense or replacement cost of an item exceeds

$10,000 shall be included in the budget. For the purpose of determining whether the deferred

maintenance expense or replacement cost of an item exceeds $10,000, the association may consider each

asset of the association separately. Alternatively, the replacement cost of an item exceeds $10,000, the

association may group similar or related assets together. For example, an association responsible for the

maintenance of two swimming pools, each of which will separately require $6,000 of total deferred

maintenance, may establish a pool reserve, but is not required to do so.

61B-22.0051 Estimating Reserve Requirements.

(1) Formula for calculation of reserves required by statute. Reserves for deferred maintenance and

capital expenditures required by section 718.112(2)(f), Florida Statutes, shall be calculated using

a formula which will provide funds equal to the total estimated deferred maintenance expense or

total estimated replacement cost for an asset over the remaining useful life of the asset. The

formula shall provide funds in annual increments and may be adjusted each year for changes in

estimates. The formula may consider such factors as inflation and interest or other earnings

rates, but must include the following:

(a) The estimated remaining useful life of the asset;

(b) The estimated deferred maintenance expense or estimated replacement cost of the asset; and,

(c) The estimated fund balance of the reserve account as of the beginning of the period for which

the budget will be in effect.

(2) Estimating reserves which are not required by statute. Reserves which are not required by

section 718.112(2)(f), Florida Statutes, are not required to be based on any specific formula.

(3) Estimating reserves when the developer is funding converted reserves. For the purpose of

estimating non-converter reserves the estimated fund balance of the non-converter reserve

account related to any asset for which the developer has established converter reserves pursuant

to section 718.618, Florida Statutes, shall be the sum of:

(a) The developer’s total funding obligation, when all units are sold, for the converter reserve

account pursuant to section 718.618, Florida Statutes,; and,

(b) The estimated fund balance of the non-converter reserve account, excluding the developer’s

converter obligation, as of the beginning of the period for which the budget will be in effect.

61B-22.0052 Funding Requirements and Restrictions on Use.

(1) Timely funding. Reserves included in the adopted budget are common expenses and must be

fully funded unless properly waived or reduced. Reserves shall be funded in at least the same

frequency that assessments are due from the unit owners (e.g., monthly or quarterly).

(2) Restrictions on use. Reserves required by section 718.112(2)(f), Florida Statutes, and other

reserves included on the adopted budget, shall only be used for the purposes for


Page 105

which they were intended unless their use for other purposes is approved in advance by the unit

owners according to section 718.112(2)(f)3, Florida Statutes. In a multi-condominium

association, the same procedures which are specified for the waiving or reduction of reserves

shall apply where an association seeks to use reserve funds for purposes other than which the

funds were originally reserved. Expenditure of unallocated interest income earned on reserve

funds is restricted to any of the capital expenditures, deferred maintenance or other items for

which reserve accounts have been established.

61B-22.0053 Waiver of Reserves.

(1) Annual vote required to waive reserves. Any vote to waive or reduce reserves for capital

expenditures and deferred maintenance required by section 718.112(2)(f)2, Florida Statutes, shall

be effective for only one annual budget, and the vote must be taken annually. Additionally, in a

multi-condominium association, no waiver or reduction is effective as to a particular

condominium unless conducted at a meeting at which a majority of the voting interests in that

condominium are present, in person or by proxy, and a majority of those present in person or by

limited proxy vote to waive or reduce reserves.

(2) Developer voting restrictions. Prior to turnover, the developer may cast votes to waive or reduce

reserves during the first two fiscal years only, beginning with the date of the recording of the

declaration. In the case of a multi-condominium association, this restriction applies to the

association's first two fiscal years beginning with the recording of the initial declaration.

1.

2. 61B-22.006 Financial Reporting Requirements.

(3) Disclosure requirements. The financial statements required by sections 718.111(14) and

718.301(4), Florida Statutes, shall contain the following disclosures within the financial

statements, notes, or supplementary information:

(a) The following reserve disclosures shall be made regardless of whether reserves have been

waived for the fiscal period covered by the financial statements:

1. The beginning balance in each reserve account as of the beginning of the fiscal period

covered by the financial statements;

2. The amount of assessments and other additions to each reserve account, including authorized

transfers from other reserve accounts;

3. The amount expended or removed from each reserve account, including authorized transfers

to other reserve accounts;

4. The ending balance in each reserve account as of the end of the fiscal period covered by the

financial statements;

5. The manner by which reserve items were estimated, the date the estimates were last made, the

association’s policies for allocating reserve fund interest, and whether reserves have been

waived during the period covered by the financial statements; and,

6. If the developer has established converter reserves pursuant to section 718.618(1), Florida

Statutes, each converter reserve account shall be identified and include the disclosures

required by this rule.


Page 106

Chapter 61B – 22, Florida Administrative Code

Summary of Rule Amendments

61B-22.003 Budgets

- Recognizes the use of a pooled account for reserves and provides that a schedule showing

each reserve account is not necessary if a pooled account for reserves is used.

- Provides an alternate disclosure method for the use of a pooled account for reserves.

61B-22.005 Reserves

- Recognizes the concept of funding a group of assets using a pooled analysis of two or more

required assets and provides requirements and direction related to the pooled account

method.

- Clarifies that the chosen reserve funding formula shall not include any type of balloon

payment.

Amended Rule Text

61B – 22.003 Budgets

(e) Unless the association maintains a pooled account for reserves required by Section

718.112(2)(f)2., Florida Statutes, the association shall include a schedule stating each reserve account

for capital expenditures and deferred maintenance as a separate line item with the following minimum

disclosures:

(f) If the association maintains a pooled account for reserves required by Section 718.112(2)(f)2.,

Florida Statutes, the association shall include a separate schedule of any pooled reserves with the

following minimum disclosures:

1. The total estimated useful life of each asset within the pooled analysis;

2. The estimated remaining useful life of each asset within the pooled analysis;

3. The estimated replacement cost or deferred maintenance expense of each asset within the

pooled analysis; and

4. The estimated fund balance of the pooled reserve account as of the beginning of the period

for which the budget will be in effect.

(g) Include a separate schedule of any other reserve funds to be restricted by the

association as a separate line item with the following minimum disclosures:

1. The intended use of the restricted funds; and

2. The estimated fund balance of the item as of the beginning of the period for which the budget

will be in effect.

61B – 22.005 Reserves

1) Reserves required by statute. Reserves required by Section 718.112(2)(f), Florida

Statutes, for capital expenditures and deferred maintenance including roofing,

painting, paving, and any other item for which the deferred maintenance expense or

replacement cost exceeds $10,000 shall be included in the budget. For the purpose of

determining whether the deferred maintenance expense or replacement cost of an

item exceeds $10,000, the association may consider each asset of the association

separately. Alternatively, the association may group similar or related assets together.

For example, an association responsible for the maintenance of two swimming pools,


Page 107

each of which will separately require $6,000 of total deferred maintenance, may

establish a pool reserve, but it is not required to do so.

2) Commingling operating and reserve funds. Associations that collect operating and

reserve assessments as a single payment shall not be considered to have commingled

the funds provided the reserve portion of the payment is transferred to a separate

reserve account, or accounts, within 30 calendar days from the date such funds were

deposited.

3) Calculating reserves required by statute. Reserves for deferred maintenance and

capital expenditures required by Section 718.112(2)(f), Florida Statutes, shall be

calculated using a formula that will provide funds equal to the total estimated

deferred maintenance expense or total estimated replacement cost of an asset or group

of assets over the remaining useful life of the asset or group of assets. Funding

formulas for reserves required by Section 718.112(2)(f), Florida Statutes, shall be

based on either a separate analysis of each of the required assets or a pooled analysis

of two or more of the required assets.

(a) If the association maintains separate reserve accounts for each of the

required assets, the amount of the current year contribution to each reserve

account shall be the sum of the following two calculations:

1. The total amount necessary, if any, to bring a negative account balance to

$0; and

2. The total estimated deferred maintenance expense or estimated replacement

cost of the reserve asset less the estimated balance of the reserve account as

of the beginning of the period for which the budget will be in effect. The

remainder, if greater than zero, shall be divided by the estimated remaining

useful life of the asset. The formula may be adjusted each year for changes

in estimates and deferred maintenance performed during the year and may

consider factors such as inflation and earnings on invested funds.

(b) If the association maintains a pooled account of two or more of the required

reserve assets, the amount of contribution to the pooled reserve account as

disclosed on the proposed budget shall be not less than that required to

ensure that the balance on hand at the beginning of the period for which the

budget will go into effect plus the projected annual cash inflows over the

remaining estimated useful lives of all of the assets that make up the reserve

pool are equal to or greater than the projected annual cash outflows over the

remaining estimated useful lives of all of the assets that make up the reserve

pool, based on the current reserve analysis. The projected annual cash

inflows may include estimated earnings from investment of principal. The

reserve funding formula shall not include any type of balloon payment.

.

Page 108

TERMS AND DEFINITIONS

Terms and Definition ACCRUED FUND BALANCE (AFB): Total Accrued Depreciation. An indicator against which

Actual (or projected) Reserve balance can be compared. The Reserve balance that is in direct proportion

to the fraction of life “used up” of the current Repair or Replacement cost. This number is calculated for

each component, then summed together for an association tool. Two formulae can be utilized, depending

on the provider’s sensitivity to interest and inflation effects. Note: both yield identical results when

interest and inflation are equivalent.

AFB = Current Cost X Effective Age/Useful Life

or

AFB = (Current Cost X Effective Age/Useful Life) + [(Current Cost X Effective Age/Useful

Life)/(1 + Interest Rate) ^ Remaining Life] – [(Current Cost X Effective Age/Useful Life) /(1 +

Inflation Rate) ^ Remaining Life]

CASH FLOW METHOD: A method of calculating 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 anticipated schedule of Reserve expenses until the desired

Funding Goal is achieved. “Because we use the cash flow method, we compute individual line item

contributions after the total contribution rate has been established.” See “Component Method”.

CAPITAL EXPENDITURES: A capital expenditure means any expenditure of funds for: (1) the

purchase or replacement of an asset whose useful life is greater than one year, or (2) the addition to an

asset that extends the useful life of the previously existing asset for a period greater than one year.

COMPONENT: The individual line items in the Reserve Study, developed or updated in the Physical

Analysis. These elements form the building blocks for the Reserve Study. Components typically are: 1)

Association responsibility, 2) with limited Useful Life expectancies, 3) predictable Remaining Useful

Life expectancies, and 4) above a minimum threshold cost, and 5) as required by local codes. “We have

17 components in our reserve Study.”

COMPONENT ASSESSMENT AND VALUATION: The task of estimating Useful Life, Remaining

Useful Life, and Repair or Replacement Costs for the Reserve components. This task is accomplished

either with or without an on-site inspection, based on Level or Service selected by the client.

COMPONENT FULL FUNDING: When the actual (or projected) cumulative Reserve balance for all

components is equal to the Fully Funded Balance.

COMPONENT INVENTORY: The task of selecting and quantifying Reserve Components. This task

is accomplished through an on-site inspection, review of association design and organizational

documents, and a review of established association precedents, and discussion with appropriate

association representative(s).

COMPONENT METHOD: A method of developing a Reserve Funding Plan where the total

contribution is based on the sum of contributions for individual components. “Since we calculate a

Reserve contribution rate for each component and then sum them all together, we are using the

component method to calculate our Reserve contributions.” See “Cash Flow Method”.

.

Page 109

CONDITION ASSESSMENT: The task of evaluating the current condition of the component based on

observed and reported characteristics.

CURRENT REPLACEMENT COST: See “Replacement Cost”.

DEFERRED MAINTENANCE: Deferred maintenance means any maintenance or repair that: (1) will

be performed less frequently than yearly, and (2) will result in maintaining the useful life of an asset.

DEFICIT: An actual (or projected) Reserve Balance less than the Fully Funded Balance. The opposite

would be a Surplus.

EFFECTIVE AGE: The difference between Useful Life and Remaining Useful Life. Not always

equivalent to chronological age, since some components age irregularly. Used primarily in

computations.

FINANCIAL ANALYSIS: The portion of a Reserve Study where current status of the Reserves

(measured as cash or Percent Funded) and a recommended Reserve contribution rate (Reserve Funding

Plan) are derived, and the projected Reserve income and expense over time is presented. The Financial

Analysis is one of the two parts of a Reserve Study.

FULLY FUNDED: When the budget is provided to the owners, it will show the amount of money that

must be deposited that year for each reserve item to ensure that, when the time comes, sufficient funds

will be available for deferred maintenance or a capital expenditure. (Definition published in “Budgets &

Reserve Schedules Made Easy” training manual by the State of Florida Department of Business and

Professional Regulations in January 1997).

FUND STATUS: The status of the reserve fund as compared to an established benchmark such as

percent funding.

FUNDING PLAN: An association’s plan to provide income to a Reserve fund to offset anticipated

expenditures from that fund.

FUNDING PRINCIPLES:

• Sufficient Funds When Required

• Stable Contribution Rate over the Years

• Evenly Distributed Contributions over the Years

• Fiscally Responsible

FUNDING GOALS: Independent of methodology utilized, the following represent the basic categories

of Funding Plan goals:

• Baseline Funding – Establishing a Reserve funding goal of keeping the Reserve cash balance above

zero.

• Component Full Funding – Setting a Reserve funding goal of attaining and maintaining

cumulative Reserves at or near 100%.

.

Page 110

• Statutory Funding – Establishing a Reserve funding goal of setting aside the specific minimum

mount of Reserves of component required by local statutes.

• Threshold Funding – Establishing a Reserve funding goal of keeping the Reserve balance above a

specified dollar or Percent Funded amount. Depending on the threshold, this may be more or less

conservative than “Component Full Funding.”

LIFE AND VALUATION ESTIMATES: The task of estimating Useful Life, Remaining Useful Life,

and Repair or Replacement Costs for the Reserve Components.

PERCENT FUNDED: The ratio, at a particular point of time (typically the beginning of the Fiscal

Year), of the actual (or projected) Reserve Balance to the accrued Fund Balance, expressed as a

percentage. “With $76,000 in Reserves, and since our 100% Funded Balance is $100,000, our

association is 76% Funded”.

Editor’s Note: since funds can typically be allocated from one component to another with ease, this

parameter has no real meaning on an individual Component basis. The purpose of this parameter is to

identify the relative strength or weakness of the entire Reserve fund as of a particular point in time. The

value of this parameter is in providing a more stable measure of Reserve Fund strength, since cash in

Reserves may mean very different things to different associations.

PHYSICAL ANALYSIS: The portion of the Reserve Study where the Component Inventory,

Condition Assessment, and Life and Valuation Estimate tasks are performed. This represents one of the

two parts of the Reserve Study.

REMAINING USEFUL LIFE (RUL): Also referred to as “Remaining Life” (RL). The estimated time,

in years, that a reserve component can be expected to continue to serve its intended function. Projects

anticipated to occur in the initial year have “zero” Remaining Useful Life.

REPLACEMENT COST: The cost of replacing, repairing, or restoring a Reserve Component to its

original functional condition. The Current Replacement Cost would be the cost to replace, repair, or

restore the component during that particular year.

RESERVE BALANCE: Actual or projected funds as of a particular point in time that the association

has identified for use to defray to the future repair of replacement of those major components which the

association is obligated to maintain. Also known as Reserves, Reserve Accounts, Cash Reserves. Based

on information provided and not audited

RESERVE PROVIDER: An individual that prepares Reserve Studies.

RESERVE STUDY: A budget planning tool which identifies the current status of the Reserve fund and

a stable and equitable Funding Plan to offset the anticipated future major common area expenditures.”

The Reserve Study consists of two parts: the Physical Analysis and the Financial Analysis. “Our budget

and finance committee is soliciting proposals to update our Reserve Study for the next year’s budget.”

RESPONSIBLE CHARGE: A reserve specialist in responsible charge of a reserve study shall render

regular and effective supervision to those individuals performing services which directly and materially

affect the quality and competence rendered by the reserve specialist. A reserve specialist shall maintain

.

Page 111

such records as are reasonably necessary to establish that the reserve specialist exercised regular and

effective supervision of a reserve duty of which he was in responsible charge. A reserve specialist

engaged in any of the following acts or practices shall be deemed not to have rendered the regular and

effective supervision required herein:

1. The regular and continuous absence from principal office premises from which professional

services are rendered; expect for performance of field work or presence in a field office

maintained exclusively for a specific project:

2. The failure to personally inspect or review the work of subordinates where necessary and

appropriate;

3. The rendering of a limited, cursory or perfunctory review of plans or projects in lieu of an

appropriate detailed review;

4. The failure to personally be available on a reasonable basis or with adequate advanced notice for

consultation and inspection where circumstances require personal availability.

SPECIAL ASSESSMENT: An assessment levied on the members of an association in addition to

regular assessments. Special Assessments are often regulated by Governing Documents or local statutes.

“Since we need a new roof and there wasn’t enough money in the Reserve fund, we had to pass a special

assessment.”

SURPLUS: An actual (or projected) Reserve Balance greater than the Fully Funded Balances. See

Deficit”.

USEFUL LIFE (UL): Total Useful Life or Depreciable Life. The estimated time, in years, that a

reserve component can be expected to serve its intended function if properly constructed in its present

application or installation.