2205 e. 128th avenue thornton, co 80241 at north lake final 8-15-13.pdf · reserves is primarily...

P.O. Box 1762 Castle Rock, CO 80104 Phone (303) 790-7572 Fax (303) 688-3083 www.aspenrs.com

Courtyards at North Lake

2205 E. 128th Avenue Thornton, CO 80241

Level 1 Reserve Analysis

Report Period – 01/01/13 – 12/31/13

Client Reference Number - 8665 Property Type – Townhomes Number of Units – 36 Fiscal Year End – December 31

Date of Property Observation - May 3, 2013 Project Manager - Matthew Woytek Main Contact Person - Ms. Barbara Hufford, Community Manager Report was prepared on - Thursday, August 15, 2013

Final Version

Table of Contents SECTION 1:

Introduction to Reserve Analysis--------------------------------------------------------------page 1

General Information and Answers to FAQ’s------------------------------------------pages 2 - 3

Summary of Reserve Analysis------------------------------------------------------------------page 4

SECTION 2:

Physical Analysis (Photographic) -----------------------------------------------------pages 1 – 21 SECTION 3:

Financial Analysis

a) Funding Summary-------------------------------------------------------------------------------------page 1 b) Percent Funded – Graph----------------------------------------------------------------------------page 2 c) Asset Inventory List-----------------------------------------------------------------------------------page 3 d) Significant Components Table---------------------------------------------------------------------page 4 e) Significant Components – Graph------------------------------------------------------------------page 5 f) Yearly Summary Table-------------------------------------------------------------------------------page 6 g) Yearly Contributions – Graph-----------------------------------------------------------------------page 7 h) Component Funding Information------------------------------------------------------------------page 8 i) Yearly Cash Flow Table-----------------------------------------------------------------------------page 9 j) Projected Expenditures Year by Year – Graph ----------------------------------------------page 10 k) Projected Expenditures Year by Year --------------------------------------------------pages 11 - 12

SECTION 4: Glossary of Terms and Definitions------------------------------------------------------pages 1 - 2

1

Introduction to the Reserve Analysis – The elected officials of this association made a wise decision to invest in a Reserve Analysis to get a better understanding of the status of the Reserve funds. This Analysis will be a valuable tool to assist the Board of Directors in making the decision to which the dues are derived. Typically, the Reserve contribution makes up 15% - 40% of the association’s total budget. Therefore, Reserves is considered to be a significant part of the overall monthly association payment. Every association conducts its business within a budget. There are typically two main parts to this budget, Operating and Reserves. The Operating budget includes all expenses that are fixed on an annual basis. These would include management fees, maintenance fees, utilities, etc. The Reserves is primarily made up of Capital Replacement items such as asphalt, roofing, fencing, mechanical equipment, etc., that do not normally occur on an annual basis. The Reserve Analysis is also broken down into two different parts, the Physical Analysis and the Financial Analysis. The Physical Analysis is information regarding the physical status and replacement cost of major common area components that the association is responsible to maintain. It is important to understand that while the Component Inventory will remain relatively “stable” from year to year, the Condition Assessment and Life/Valuation Estimates will most likely vary from year to year. You can find this information in the Asset Inventory Section (Section 2) of this Reserve Analysis. The Financial Analysis Section is the evaluation of the association’s Reserve balance, income, and expenses. This is made up of a finding of the clients current Reserve Fund Status (measured as Percent Funded) and a recommendation for an appropriate Reserve Allocation rate (also known as the Funding Plan). You can find this information in Section 3 (pages 1 – 13) of this Reserve Analysis. The purpose of this Reserve Analysis is to provide an educated estimate as to what the Reserve Allocation needs to be. The detailed schedules will serve as an advanced warning that major projects will need to be addressed in the future. This will allow the Board of Directors to have ample timing to obtain competitive estimates and bids that will result in cost savings to the individual homeowners. This will also ensure the physical well being of the property and ultimately enhance each owner’s investment, while limiting the possibility of unexpected major projects that may lead to Special Assessments. It is important for the client, homeowners, and potential future homeowners to understand that the information contained in this analysis is based on estimates and assumptions gathered from various sources. Estimated life expectancies and cycles are based upon conditions that were readily visible and accessible at time of the observation. No destructive or intrusive methods (such as entering the walls to inspect the condition of electrical wiring, plumbing lines, and telephone wires) were performed. In addition, environmental hazards (such as lead paint, asbestos, radon, etc.), construction defects, and acts of nature have not been investigated in the preparation of this report. If problem areas were revealed, a reasonable effort has been made to include these items within the report. While every effort has been made to ensure accurate results, this report reflects the judgment of Aspen Reserve Specialties and should not be construed as a guarantee or assurance of predicting future events.

2

General Information and Answers to Frequently Asked Questions – Why is it important to perform a Reserve Study? As previously mentioned, the Reserve allocation makes up a significant portion of the total monthly dues. This report provides the essential information that is needed to guide the Board of Directors in establishing the budget in order to run the daily operations of your association. It is suggested that a third party professionally prepare a Reserve Study since there is no vested interest in the property. Also, a professional knows what to look for and how to properly develop an accurate and reliable component list. Now that we have “it”, what do we do with “it”? Hopefully, you will not look at this report and think it is too cumbersome to understand. Our intention is to make this Reserve Analysis very easy to read and understand. Please take the time to review it carefully and make sure the “main ingredients” (asset information) are complete and accurate. If there are any inaccuracies, please inform us immediately so we may revise the report. Once you feel the report is an accurate tool to work from, use it to help establish your budget for the upcoming fiscal year. The Reserve allocation makes up a significant portion of the total monthly dues and this report should help you determine the correct amount of money to go into the Reserve fund. Additionally, the Reserve Study should act as a guide to obtain proposals in advance of pending normal maintenance and replacement projects. This will give you an opportunity to shop around for the best price available. The Reserve Study should be readily available for Real Estate agents, brokerage firms, and lending institutions for potential future homeowners. As the importance of Reserves becomes more of a household term, people are requesting homeowners associations to reveal the strength of the Reserve fund prior to purchasing a condominium or townhome. How often do we update or review “it”? Unfortunately, there is a misconception that these reports are good for an extended period of time since the report has projections for the next 30 years. Just like any major line item in the budget, the Reserve Analysis should be reviewed each year before the budget is established. Invariably, some assumptions have to be made during the compilation of this analysis. Anticipated events may not materialize and unpredictable circumstances could occur. Aging rates and repair/replacement costs will vary from causes that are unforeseen. Earned interest rates may vary from year to year. These variations could alter the content of the Reserve Analysis. Therefore, this analysis should be reviewed annually, and a property observation should be conducted at least once every three years. Is it the law to have a Reserve Study conducted? The Government requires reserve analyses in approximately 20 states. The State of Colorado currently requires all associations to adopt a Reserve policy, but does not currently enforce a Reserve Study is completed. Despite enacting this current law, the chances are also very good the documents of the association require the association to have a Reserve fund established. This may not mean a Reserve Analysis is required, but how are you going to know there are enough funds in the account if you don’t have the proper information? Hypothetically, some associations look at the Reserve fund and think $50,000 is a lot of money and they are in good shape. What they don’t know is the roof will need to be replaced within 5 years, and the cost of the roof is going to exceed $75,000. So while $50,000 sounds like a lot of money, in reality it won’t even cover the cost of a roof, let alone all the other amenities the association is responsible to maintain.

3

What makes an asset a “Reserve” item versus an “Operating” item? A “Reserve” asset is an item that is the responsibility of the association to maintain, has a limited Useful Life, predictable Remaining Useful Life expectancies, typically occurs on a cyclical basis that exceeds 1 year, and costs above a minimum threshold cost. An “operating” expense is typically a fixed expense that occurs on an annual basis. For instance, minor repairs to a roof for damage caused by high winds or other weather elements would be considered an “operating” expense. However, if the entire roof needs to be replaced because it has reached the end of its life expectancy, then the replacement would be considered a Reserve expense. The GREY area of “maintenance” items that are often seen in a Reserve Study – One of the most popular questions revolves around major “maintenance” items, such as painting the buildings or seal coating the asphalt. You may hear from your accountant that since painting or seal coating is not replacing a “capital” item, then it cannot be considered a Reserve issue. However, it is the opinion of several major Reserve Study providers that these items are considered to be major expenses that occur on a cyclical basis. Therefore, it makes it very difficult to ignore a major expense that meets the criteria to be considered a Reserve component. Once explained in this context, many accountants tend to agree and will include any expenses, such as these examples, as a Reserve component. The Property Observation – The Property Observation was conducted following a review of the documents that were established by the developer identifying all common area assets. In some cases, the Board of Directors at some point may have revised the documents. In either case, the most current set of documents was reviewed prior to inspecting the property. In addition, common area assets may have been reported to Aspen Reserve Specialties by the client, or by other parties. Estimated life expectancies and life cycles are based upon conditions that were readily accessible and visible at the time of the observation. We did not destroy any landscape work, building walls, or perform any methods of intrusive investigation during the observation. In these cases, information may have been obtained by contacting the contractor or vendor that has worked on the property. The Reserve Fund Analysis – We projected the starting balance from taking the most recent balance statement, adding expected Reserve contributions for the rest of the year, and subtracting any pending projects for the rest of the year. We compared this number to the ideal Reserve Balance and arrived at the Percent funded level. Measures of strength are as follows: 0% - 30% Funded – Is considered to be a “weak” financial position. Associations that fall into this category are subject to Special Assessments and deferred maintenance, which could lead to lower property values. If the association is in this position, actions should be taken to improve the financial strength of the Reserve Fund. 31% - 69% Funded – The majority of associations are considered to be in this “fair” financial position. While this doesn’t represent financial strength and stability, the likelihood of Special Assessments and deferred maintenance is diminished. Effort should be taken to continue strengthening the financial position of the Reserve fund. 70% - 99% Funded – This indicates financial strength of a Reserve fund and every attempt to maintain this level should be a goal of the association. 100% Funded – This is the ideal amount of Reserve funding. This means that the association has the exact amount of funds in the Reserve account that should be at any given time.

4

Summary of Courtyards at North Lake HOA - Assoc ID # - 08665 Projected Starting Balance as of January 1, 2014 - $91,749 Ideal Reserve Balance as of January 1, 2014 - $350,514 Percent Funded as of January 1, 2014 - 26% Recommended Reserve Allocation (per month) - $5,100 Minimum Reserve Allocation (per month) - $4,700 Recommended Special Assessments (2014) - $63,000 ($1,750 per unit) Recommended Special Assessments (2015) - $63,000 ($1,750 per unit) Information to complete this Reserve Analysis was gathered during a property observation of the common area elements on May 3, 2013. In addition, we obtained information by contacting local vendors and contractors, as well as communicating with the property representative (Community Manager). To the best of our knowledge, the conclusions and suggestions of this report are considered reliable and accurate insofar as the information obtained from these sources. This property contains 36 units within 7 buildings that were constructed approximately 12 years ago. Common area amenities the association is responsible to maintain include the building exterior surfaces, the private drives and parking areas, perimeter fencing, sidewalks, and a moderate sized irrigation system. Please refer to pages 11 and 12 of the Financial Analysis section for a complete list of when other components are scheduled to be addressed. In comparing the projected balance of $91,749 versus the ideal Reserve Balance of $350,514, we find the association Reserve fund to be in a poor and inadequate financial position at this point in time (approximately 26% funded of ideal). Associations in this position are typically in danger of falling into a position where Special Assessments and/or deferred maintenance are a possibility. This association is no exception. Based on the amount of major projects that need to be addressed in the near future, we find no alternative but to recommend a multi-year Special Assessment ($63,000, or $1,750 per unit per year for the next 2 years) is collected to help fund for these projects. In addition, as a result of the information contained in this report, we find the current budgeted Reserve allocation ($549 per month) to be less than adequate in increasing the strength of the Reserve fund to prepare for future projects. Therefore, we are recommending an increase of the Reserve contribution to $5,100 (representing an increase of $126.42 per unit) per month effective immediately, followed by nominal annual increases of 2.50% - 3.50% thereafter to help offset the effects of inflation. By following the recommendations, the plan will maintain the Reserve account in a positive manner, while gradually increasing to a fully funded position within the thirty-year period. In the percent Funded graph, you will see we have also provided a “minimum Reserve contribution” of $4,700 per month. If the Reserve contribution falls below this rate, then the Reserve fund will fall into a situation where additional Special Assessments, deferred maintenance, and lower property values are possible at some point in the future. The minimum Reserve allocation follows the “threshold” theory of Reserve funding where the ”percent funded” status is not allowed to dip below 20% funded at any point during the thirty-year period. This was provided for one purpose only, to show the association how small the difference is between the two scenarios and how it would not make financial sense to contribute less money (approximately $11.11 per unit per month in this case) to the Reserve fund to only stay above a certain threshold. As you can see, the difference between the two scenarios is considered to be minimal, and based on the risk, we strongly suggest the recommended Reserve Allocation is followed.

Client Reference #Client Reference #Client Reference #Client Reference # 8665866586658665Component Inventory for Courtyards at North LakeComponent Inventory for Courtyards at North LakeComponent Inventory for Courtyards at North LakeComponent Inventory for Courtyards at North Lake

Comp #: 105

Source of Information: Research with contractor

Best Cost: $243,375$243,375$243,375$243,375

Worst Cost: $267,390$267,390$267,390$267,390

Location: Unit building roofsUnit building roofsUnit building roofsUnit building roofs

Quantity: Approx. 649 squaresApprox. 649 squaresApprox. 649 squaresApprox. 649 squares

Observations:

At time of observation, significant surface granule loss, exposed fiberglass and minor curling were noted. Due to the condition of the roofs at time of observation we recommend reserving to replace all roofs within the next 1 - 3 years in order to ensure proper water mitigation and appearance. It was reported that significant repairs are being made to the fascia and gutters due to their being no drip edge installed at time of construction. These repairs will help extend the life of the exterior cladding, however, the life of the roofs will not be affected. Replace all roofs at the same time in order to receive the most favorable cost estimates based on quantity of work.

Life Expectancy: 15151515 Remaining Life: 3333

$375/square; Estimate to remove and replace

$412/square; Higher estimate for more labor costs

Comp Shingle Roof - Replace

General Notes:

gazebo - 2 squaresgazebo - 2 squaresgazebo - 2 squaresgazebo - 2 squares2293-2261 - 90 squares2293-2261 - 90 squares2293-2261 - 90 squares2293-2261 - 90 squares2297-2265 - 90 squares2297-2265 - 90 squares2297-2265 - 90 squares2297-2265 - 90 squares2241-2251 - 109 squares2241-2251 - 109 squares2241-2251 - 109 squares2241-2251 - 109 squares2231-2239 - 90 squares2231-2239 - 90 squares2231-2239 - 90 squares2231-2239 - 90 squares2201-2217 - 90 squares2201-2217 - 90 squares2201-2217 - 90 squares2201-2217 - 90 squares2203-2221 - 109 squares2203-2221 - 109 squares2203-2221 - 109 squares2203-2221 - 109 squares2223-2229 - 71 squares2223-2229 - 71 squares2223-2229 - 71 squares2223-2229 - 71 squares

Saturday, August 10, 2013Page 1 of 21


Comp #: 120

Source of Information: Cost Database

Best Cost: $47,725$47,725$47,725$47,725

Worst Cost: $51,875$51,875$51,875$51,875

Location: Unit Building Roof PerimeterUnit Building Roof PerimeterUnit Building Roof PerimeterUnit Building Roof Perimeter

Quantity: Approx. 8300 LFApprox. 8300 LFApprox. 8300 LFApprox. 8300 LF

Observations:

There were no unusual conditions with the installation of the lines or any evidence of damage. It is typical for debris, such as roof granules and dirt, to build up in the lines. When debris remains in the raingutters, it will stay wet after rains and snow melt which will cause premature deterioration of the materials. Therefore, we recommend cleaning out the lines at least once a year as a maintenance expense to ensure full life expectancy. It is typical to replace raingutters and downspouts at the same time as roof materials for best cost estimate.


$5.75/LF; Estimate to replace

$6.25/LF: Higher estimate for larger lines

Gutters/Downspouts - Replace

General Notes:

2293-2261 - 1,150 LF2293-2261 - 1,150 LF2293-2261 - 1,150 LF2293-2261 - 1,150 LF2297-2265 - 1,150 LF2297-2265 - 1,150 LF2297-2265 - 1,150 LF2297-2265 - 1,150 LF2241-2251 - 1,400 LF2241-2251 - 1,400 LF2241-2251 - 1,400 LF2241-2251 - 1,400 LF2231-2239 - 1,150 LF2231-2239 - 1,150 LF2231-2239 - 1,150 LF2231-2239 - 1,150 LF2201-2217 - 1,150 LF2201-2217 - 1,150 LF2201-2217 - 1,150 LF2201-2217 - 1,150 LF2203-2221 - 1,400 LF2203-2221 - 1,400 LF2203-2221 - 1,400 LF2203-2221 - 1,400 LF2223-2229 - 900 LF2223-2229 - 900 LF2223-2229 - 900 LF2223-2229 - 900 LF



Comp #: 204


Best Cost: $43,200$43,200$43,200$43,200

Worst Cost: $54,000$54,000$54,000$54,000

Location: Unit Building Exterior CladdingUnit Building Exterior CladdingUnit Building Exterior CladdingUnit Building Exterior Cladding

Quantity: Approx. (36) unitsApprox. (36) unitsApprox. (36) unitsApprox. (36) units

Observations:

At time of observation, building paint appeared in fair condition with only minor areas of issues under gutter lines and under gutters. This is likely due to the fact that there are no drip lines installed at the roof perimeter (according to roofing contractor). These areas are currently being repaired, in the meantime, we recommend touching up paint in these areas as needed using operating funds. Useful life is based on the assumption that the association will continue to paint the buildings using light colors.


$1200/unit; Estimate to repaint buildings

$1500/unit; Higher estimate for more prep work

Building Ext Surfaces - Repaint

General Notes:

2293-2261 - 12,350 GSF2293-2261 - 12,350 GSF2293-2261 - 12,350 GSF2293-2261 - 12,350 GSF2297-2265 - 12,350 GSF2297-2265 - 12,350 GSF2297-2265 - 12,350 GSF2297-2265 - 12,350 GSF2241-2251 - 15,230 GSF2241-2251 - 15,230 GSF2241-2251 - 15,230 GSF2241-2251 - 15,230 GSF2231-2239 - 12,350 GSF2231-2239 - 12,350 GSF2231-2239 - 12,350 GSF2231-2239 - 12,350 GSF2201-2217 - 12,350 GSF2201-2217 - 12,350 GSF2201-2217 - 12,350 GSF2201-2217 - 12,350 GSF2203-2221 - 15,230 GSF2203-2221 - 15,230 GSF2203-2221 - 15,230 GSF2203-2221 - 15,230 GSF2223-2229 - 9,470 GSF2223-2229 - 9,470 GSF2223-2229 - 9,470 GSF2223-2229 - 9,470 GSF



Comp #: 209


Best Cost: $1,625$1,625$1,625$1,625

Worst Cost: $1,875$1,875$1,875$1,875

Location: Throughout communityThroughout communityThroughout communityThroughout community


Observations:

At time of observation, the fence stain appeared in poor condition. In this climate, industry professionals recommend restaining every 2 - 3 years in order to maintain appearance and to ensure proper protection of the surfaces. Reserve to restain all fencing this year.


$3.50/LF: Estimate to repaint fence

$4.00/LF; Higher estimate for more prep work

Wood Fencing - Restain

General Notes:

HOA responsibility - HOA responsibility - HOA responsibility - HOA responsibility - community perimeter - 465 LF community perimeter - 465 LF community perimeter - 465 LF community perimeter - 465 LF

Individual homeowner responsibility - Individual homeowner responsibility - Individual homeowner responsibility - Individual homeowner responsibility - 2293-2261 - 75 LF 2293-2261 - 75 LF 2293-2261 - 75 LF 2293-2261 - 75 LF 2297-2265 - 75 LF 2297-2265 - 75 LF 2297-2265 - 75 LF 2297-2265 - 75 LF 2241-2251 - 80 LF 2241-2251 - 80 LF 2241-2251 - 80 LF 2241-2251 - 80 LF 2231-2239 - 75 LF 2231-2239 - 75 LF 2231-2239 - 75 LF 2231-2239 - 75 LF 2201-2217 - 75 LF 2201-2217 - 75 LF 2201-2217 - 75 LF 2201-2217 - 75 LF 2203-2221 - 80 LF 2203-2221 - 80 LF 2203-2221 - 80 LF 2203-2221 - 80 LF 2223-2229 - 70 LF 2223-2229 - 70 LF 2223-2229 - 70 LF 2223-2229 - 70 LFNot included in fence quantity - 530 LFNot included in fence quantity - 530 LFNot included in fence quantity - 530 LFNot included in fence quantity - 530 LF



Comp #: 301


Best Cost: $16,200$16,200$16,200$16,200

Worst Cost: $18,000$18,000$18,000$18,000

Location: Unit Building Exterior CladdingUnit Building Exterior CladdingUnit Building Exterior CladdingUnit Building Exterior Cladding

Quantity: Approx. (36) unitsApprox. (36) unitsApprox. (36) unitsApprox. (36) units

Observations:

Siding appeared in fair condition at time of observation with minor separation, some areas of damaged trim and many areas of damaged fascia noted. In an attempt to avoid complete replacement of siding, we recommend reserving an allowance to make major repairs to the siding every paint cycle. Expect to make significant repairs within the next 2 years and at same time as building repainting.


$450/unit; Higher allowance for more repairs

$500/unit; Allowance for major repairs

Siding - Major Repairs

General Notes:

2293-2261 - 12,350 GSF2293-2261 - 12,350 GSF2293-2261 - 12,350 GSF2293-2261 - 12,350 GSF2297-2265 - 12,350 GSF2297-2265 - 12,350 GSF2297-2265 - 12,350 GSF2297-2265 - 12,350 GSF2241-2251 - 15,230 GSF2241-2251 - 15,230 GSF2241-2251 - 15,230 GSF2241-2251 - 15,230 GSF2231-2239 - 12,350 GSF2231-2239 - 12,350 GSF2231-2239 - 12,350 GSF2231-2239 - 12,350 GSF2201-2217 - 12,350 GSF2201-2217 - 12,350 GSF2201-2217 - 12,350 GSF2201-2217 - 12,350 GSF2203-2221 - 15,230 GSF2203-2221 - 15,230 GSF2203-2221 - 15,230 GSF2203-2221 - 15,230 GSF2223-2229 - 9,470 GSF2223-2229 - 9,470 GSF2223-2229 - 9,470 GSF2223-2229 - 9,470 GSF



Comp #: 401


Best Cost: $35,700$35,700$35,700$35,700

Worst Cost: $41,100$41,100$41,100$41,100

Location: Community streetsCommunity streetsCommunity streetsCommunity streets

Quantity: Approx. 21,630 GSFApprox. 21,630 GSFApprox. 21,630 GSFApprox. 21,630 GSF

Observations:

Community streets appeared in good to fair condition at time of observation. Only minor cracking and a small area of raveling were noted (raveling was noted in the parking areas). It is typical to roto-mill and overlay asphalt surfaces in this climate every 20 - 25 years depending on levels of maintenance.


$1.65/GSF; Est. to rotomill and 2" overlay

$1.90/GSF; Higher estimate for more repairs

Asphalt - Overlay

General Notes:



Comp #: 402


Best Cost: $2,600$2,600$2,600$2,600

Worst Cost: $3,250$3,250$3,250$3,250

Location: Community streetsCommunity streetsCommunity streetsCommunity streets


Observations:

In this climate, seal coating is recommended every 3 - 4 years. In between seal cycles, asphalt should be crack filled and repaired as a preventative maintenance measure to ensure maximum life expectancy from the material.


$.12/GSF; Estimate for seal coat only

$.15/GSF; Higher estimate for some repairs

Asphalt - Seal Coat/crack fill

General Notes:



Comp #: 403


Best Cost: $4,675$4,675$4,675$4,675

Worst Cost: $5,100$5,100$5,100$5,100

Location: Unit drivewaysUnit drivewaysUnit drivewaysUnit driveways


Observations:

Since it is unlikely that all concrete surfaces will fail at the same time, we suggest establishing a Reserve fund for periodic repairs and replacement to approximately 10% of the total area (550 GSF) every 5 years.


Estimate to replace 10% of area every 5 years

Higher estimate for more repairs

Concrete - Repair/Replace

General Notes:

HOA responsibility - HOA responsibility - HOA responsibility - HOA responsibility - curb and gutter - 2,545 GSF curb and gutter - 2,545 GSF curb and gutter - 2,545 GSF curb and gutter - 2,545 GSF drain pan - 2,920 drain pan - 2,920 drain pan - 2,920 drain pan - 2,920

Individual homeowner's responsibility - Individual homeowner's responsibility - Individual homeowner's responsibility - Individual homeowner's responsibility - Driveways - Driveways - Driveways - Driveways - 2293 - 2261 - 1,695 GSF 2293 - 2261 - 1,695 GSF 2293 - 2261 - 1,695 GSF 2293 - 2261 - 1,695 GSF 2297 - 2265 - 1,695 GSF 2297 - 2265 - 1,695 GSF 2297 - 2265 - 1,695 GSF 2297 - 2265 - 1,695 GSF 2241 - 2251 - 2,035 GSF 2241 - 2251 - 2,035 GSF 2241 - 2251 - 2,035 GSF 2241 - 2251 - 2,035 GSF 2231 - 2239 - 1,695 GSF 2231 - 2239 - 1,695 GSF 2231 - 2239 - 1,695 GSF 2231 - 2239 - 1,695 GSF 2201 - 2217 - 1,695 GSF 2201 - 2217 - 1,695 GSF 2201 - 2217 - 1,695 GSF 2201 - 2217 - 1,695 GSF 2203 - 2221 - 2,035 GSF 2203 - 2221 - 2,035 GSF 2203 - 2221 - 2,035 GSF 2203 - 2221 - 2,035 GSF 2223 - 2229 - 1,355 GSF 2223 - 2229 - 1,355 GSF 2223 - 2229 - 1,355 GSF 2223 - 2229 - 1,355 GSF Not included in funding - 12,205 GSF Not included in funding - 12,205 GSF Not included in funding - 12,205 GSF Not included in funding - 12,205 GSF



Comp #: 502

Source of Information:

Best Cost: $0$0$0$0

Worst Cost: $0$0$0$0

Location: Unit vehicle egressUnit vehicle egressUnit vehicle egressUnit vehicle egress

Quantity: Approx. (36) OH doorsApprox. (36) OH doorsApprox. (36) OH doorsApprox. (36) OH doors

Observations:

Although the version of the declarations furnished at time of performing this report did not specifically mention the garage doors, we assume the responsibility of replacement and repair is the individual homeowner. The painting of the doors is the responsibility of the association.

Life Expectancy: N/AN/AN/AN/A Remaining Life:

Garage Doors - Replace

General Notes:

All overhead doors are 16x7 - All overhead doors are 16x7 - All overhead doors are 16x7 - All overhead doors are 16x7 - 2293 - 2261 - (5) OH doors2293 - 2261 - (5) OH doors2293 - 2261 - (5) OH doors2293 - 2261 - (5) OH doors2297 - 2265 - (5) OH doors2297 - 2265 - (5) OH doors2297 - 2265 - (5) OH doors2297 - 2265 - (5) OH doors2241 - 2251 - (6) OH doors2241 - 2251 - (6) OH doors2241 - 2251 - (6) OH doors2241 - 2251 - (6) OH doors2231 - 2239 - (5) OH doors2231 - 2239 - (5) OH doors2231 - 2239 - (5) OH doors2231 - 2239 - (5) OH doors2201 - 2217 - (5) OH doors2201 - 2217 - (5) OH doors2201 - 2217 - (5) OH doors2201 - 2217 - (5) OH doors2203 - 2221 - (6) OH doors2203 - 2221 - (6) OH doors2203 - 2221 - (6) OH doors2203 - 2221 - (6) OH doors2223 - 2229 - (4) OH doors2223 - 2229 - (4) OH doors2223 - 2229 - (4) OH doors2223 - 2229 - (4) OH doors



Comp #: 506


Best Cost: $0$0$0$0


Location: Unit buildingsUnit buildingsUnit buildingsUnit buildings

Quantity: Approx. (556) openingsApprox. (556) openingsApprox. (556) openingsApprox. (556) openings

Observations:

Although the responsibility of the windows and doors is not specifically stated in the declarations, we assume that the responsibility is the individual homeowner's. No reserve funding necessary at this time.


Windows and Doors - Replace

General Notes:

2293 - 2261 - (72) windows, (5) doors2293 - 2261 - (72) windows, (5) doors2293 - 2261 - (72) windows, (5) doors2293 - 2261 - (72) windows, (5) doors2297 - 2265 - (72) windows, (5) doors2297 - 2265 - (72) windows, (5) doors2297 - 2265 - (72) windows, (5) doors2297 - 2265 - (72) windows, (5) doors2241 - 2251 - (88) windows, (6) doors2241 - 2251 - (88) windows, (6) doors2241 - 2251 - (88) windows, (6) doors2241 - 2251 - (88) windows, (6) doors2231 - 2239 - (72) windows, (5) doors2231 - 2239 - (72) windows, (5) doors2231 - 2239 - (72) windows, (5) doors2231 - 2239 - (72) windows, (5) doors2201 - 2217 - (72) windows, (5) doors2201 - 2217 - (72) windows, (5) doors2201 - 2217 - (72) windows, (5) doors2201 - 2217 - (72) windows, (5) doors2203 - 2221 - (88) windows, (6) doors2203 - 2221 - (88) windows, (6) doors2203 - 2221 - (88) windows, (6) doors2203 - 2221 - (88) windows, (6) doors2223 - 2229 - (56) windows, (4) doors2223 - 2229 - (56) windows, (4) doors2223 - 2229 - (56) windows, (4) doors2223 - 2229 - (56) windows, (4) doors



Comp #: 601


Best Cost: $1,325$1,325$1,325$1,325

Worst Cost: $1,450$1,450$1,450$1,450

Location: Common areasCommon areasCommon areasCommon areas


Observations:

While it is unlikely that all concrete surfaces will fail and need to be replaced at the same time, frequent repairs and replacement to a percentage of the area (10% or 155 GSF), should be anticipated every 5 years.


Allowance to repair 10% of area every 4 years

Higher allowance for more repairs

Concrete Sidewalks - Repair

General Notes:

HOA responsibility - HOA responsibility - HOA responsibility - HOA responsibility - common areas - 1,225 GSF common areas - 1,225 GSF common areas - 1,225 GSF common areas - 1,225 GSF gazebo pad - 310 GSF gazebo pad - 310 GSF gazebo pad - 310 GSF gazebo pad - 310 GSFIndividual homeowner responsibility - Individual homeowner responsibility - Individual homeowner responsibility - Individual homeowner responsibility - 2293-2261 - 2,000 GSF 2293-2261 - 2,000 GSF 2293-2261 - 2,000 GSF 2293-2261 - 2,000 GSF 2297-2265 - 2,000 GSF 2297-2265 - 2,000 GSF 2297-2265 - 2,000 GSF 2297-2265 - 2,000 GSF 2241-2251 - 2,375 GSF 2241-2251 - 2,375 GSF 2241-2251 - 2,375 GSF 2241-2251 - 2,375 GSF 2231-2239 - 2,000 GSF 2231-2239 - 2,000 GSF 2231-2239 - 2,000 GSF 2231-2239 - 2,000 GSF 2201-2217 - 2,000 GSF 2201-2217 - 2,000 GSF 2201-2217 - 2,000 GSF 2201-2217 - 2,000 GSF 2203-2221 - 2,375 GSF 2203-2221 - 2,375 GSF 2203-2221 - 2,375 GSF 2203-2221 - 2,375 GSF 2223-2229 - 1,630 GSF 2223-2229 - 1,630 GSF 2223-2229 - 1,630 GSF 2223-2229 - 1,630 GSFNot included in funding - 14,380 GSFNot included in funding - 14,380 GSFNot included in funding - 14,380 GSFNot included in funding - 14,380 GSF



Comp #: 801


Best Cost: $0$0$0$0


Location: Community entrancesCommunity entrancesCommunity entrancesCommunity entrances

Quantity: (2) monuments(2) monuments(2) monuments(2) monuments

Observations:

Due to the simplicity and the very long useful life of the materials used, we do not recommend reserving to rebuild or refurbish the community monuments. Expect to make minor repairs as needed using operating funds, no reserve funding necessary at this time.


Monuments - Rebuild

General Notes:

monuments - monuments - monuments - monuments - one-piece flagstone - one-piece flagstone - one-piece flagstone - one-piece flagstone - "Courtyards at North Lake" "Courtyards at North Lake" "Courtyards at North Lake" "Courtyards at North Lake"



Comp #: 1001


Best Cost: $0$0$0$0


Location: Unit CourtyardsUnit CourtyardsUnit CourtyardsUnit Courtyards


Observations:

Upon review of the draft report, it was brought to our attention that the private patio fences are the responsibility of the individual homeowner. Therefore, no reserve funding is necessary at this time.


Wood Fencing - Replace (Courtyards)

General Notes:

Individual homeowner's responsibility - Individual homeowner's responsibility - Individual homeowner's responsibility - Individual homeowner's responsibility - 2293-2261 - 75 LF 2293-2261 - 75 LF 2293-2261 - 75 LF 2293-2261 - 75 LF 2297-2265 - 75 LF 2297-2265 - 75 LF 2297-2265 - 75 LF 2297-2265 - 75 LF 2241-2251 - 80 LF 2241-2251 - 80 LF 2241-2251 - 80 LF 2241-2251 - 80 LF 2231-2239 - 75 LF 2231-2239 - 75 LF 2231-2239 - 75 LF 2231-2239 - 75 LF 2201-2217 - 75 LF 2201-2217 - 75 LF 2201-2217 - 75 LF 2201-2217 - 75 LF 2203-2221 - 80 LF 2203-2221 - 80 LF 2203-2221 - 80 LF 2203-2221 - 80 LF 2223-2229 - 70 LF 2223-2229 - 70 LF 2223-2229 - 70 LF 2223-2229 - 70 LF



Comp #: 1004


Best Cost: $15,345$15,345$15,345$15,345

Worst Cost: $17,670$17,670$17,670$17,670

Location: Community perimeterCommunity perimeterCommunity perimeterCommunity perimeter


Observations:

Perimeter fence was in noticeably worse condition than the courtyard fencing at time of observation. Expect to replace this fencing every 15 to 20 years depending on levels of maintenance and restaining schedules. Noted broken slats and curling top-caps that can be repaired between replacement cycles as an operating expense.


$33/LF; Estimate to replace

$38/LF: Higher estimate for better quality

Wood Fencing - Replace

General Notes:



Comp #: 1010


Best Cost: $0$0$0$0



Quantity: (2) enclosures(2) enclosures(2) enclosures(2) enclosures

Observations:

Due to the relatively low cost of repairs to this type of trash enclosure, we do not recommend reserving for repairs or replacement at this time.


Trash Enclosures - Replace

General Notes:

each enclosure - each enclosure - each enclosure - each enclosure - wood fence - 42 LF wood fence - 42 LF wood fence - 42 LF wood fence - 42 LF (2) wood gates (2) wood gates (2) wood gates (2) wood gates



Comp #: 1210


Best Cost: $10,500$10,500$10,500$10,500

Worst Cost: $12,000$12,000$12,000$12,000


Quantity: (1) gazebo(1) gazebo(1) gazebo(1) gazebo

Observations:

Gazebo appeared in fair condition, although, the paint was peeling badly and the decking appeared to need some minor repairs at time of observation. Expect to replace this type of gazebo in this climate every 30 years if properly maintained. If conditions are left the way they were at time of observation, expect the useful life of the gazebo to be dramatically lower at time of updating this report.


Estimate to replace gazebo

Higher estimate for better quality

Gazebo - Replace

General Notes:

gazebo - gazebo - gazebo - gazebo - approx. 125 GSF approx. 125 GSF approx. 125 GSF approx. 125 GSF decking is composite decking is composite decking is composite decking is composite wood construction wood construction wood construction wood construction



Comp #: 1602


Best Cost: $9,000$9,000$9,000$9,000

Worst Cost: $10,800$10,800$10,800$10,800

Location: Unit building exteriorsUnit building exteriorsUnit building exteriorsUnit building exteriors

Quantity: Approx. (72) fixturesApprox. (72) fixturesApprox. (72) fixturesApprox. (72) fixtures

Observations:

No unusual conditions were observed or reported at time of observation. While replacement can occur on an as needed basis, it is our opinion and recommendation to replace all lights at the same time every 15 - 20 years to maintain a consistent appearance throughout the property. In addition, by replacing multiple fixtures, the association will be able to obtain a quantity discount for the fixtures. Estimated replacement cost includes labor for installation.


$125/light; Estimate to replace

$150/light; Higher estimate for better quality

Exterior Wall Mount - Replace

General Notes:



Comp #: 1604


Best Cost: $2,500$2,500$2,500$2,500

Worst Cost: $3,250$3,250$3,250$3,250


Quantity: Approx. (10) fixturesApprox. (10) fixturesApprox. (10) fixturesApprox. (10) fixtures

Observations:

No structural problems noted with lights at the time of observation. Due to the extended life associated with light poles reserve funding is not appropriate. Reserve only to replace fixtures on an 18 year cycle to maintain appearance and function.


$250/fixture; Estimate to replace with similar

$325/light; Higher estimate for different fixture

Pole Lights - Replace

General Notes:



Comp #: 1701


Best Cost: $28,000$28,000$28,000$28,000

Worst Cost: $32,000$32,000$32,000$32,000

Location: Throughout communityThroughout communityThroughout communityThroughout community

Quantity: Moderate sized systemModerate sized systemModerate sized systemModerate sized system

Observations:

At time of observation the system was still Winterized and therefore we were unable to observe function of the system. Due to the increasing age (near 15 years old) we recommend beginning to reserve for repairs that lie outside the scope of routine maintenance (bulk head replacement, bulk valve replacement, rerouting lateral lines, rewiring, etc.) every 8 years. Expect major repairs to be needed more frequently as the system ages and the trees, shrubs and plant mature and begin to have increasingly large root systems.


Allowance for major repairs

Higher allowance for more repairs

Irrigation System - Rebuild

General Notes:



Comp #: 1703


Best Cost: $1,200$1,200$1,200$1,200

Worst Cost: $1,500$1,500$1,500$1,500

Location: Common AreasCommon AreasCommon AreasCommon Areas

Quantity: (1) timeclock(1) timeclock(1) timeclock(1) timeclock

Observations:

System was winterized at time of observation, however, no problems reported while preparing this report. Under normal conditions (not including Acts of God, vandalism, etc.) this clock should last 10 - 12 years with proper maintenance. A lot of communities are upgrading to ET type controllers and the costs reflect this.


$1200/clock; Estimate to replace

$1500/Clock; Higher estimate for larger clock

Irrigation Timeclocks - Replace

General Notes:

timeclock - timeclock - timeclock - timeclock - (1) Hunter ICC, date - 11/02 (1) Hunter ICC, date - 11/02 (1) Hunter ICC, date - 11/02 (1) Hunter ICC, date - 11/02



Comp #: 1706


Best Cost: $0$0$0$0



Quantity: Approx. (1) deviceApprox. (1) deviceApprox. (1) deviceApprox. (1) device

Observations:

There were no unusual conditions observed or reported with device at time of observation. It is difficult to predict a life expectancy for backflow preventers. Often, the device can be rebuilt as opposed to being completely replaced. Treat any repairs as needed as a general maintenance expense. No separate Reserve funding is required for this asset.


Backflow Devices - Replace

General Notes:


Funding Summary For Courtyards and North Lake HOA

Beginning AssumptionsFinancial Information Source Research With Client# of units 36Fiscal Year End December 31, 2014Monthly Dues from 2013 budget $5,490.00Monthly Reserve Allocation from 2013 Budget $549.00Projected Starting Reserve Balance (as of 1/1/2014) $91,749Ideal Starting Reserve Balance (as of 1/1/2014) $350,514

Economic FactorsPast 20 year Average Inflation Rate (Based on CCI) 4.00%Past 20 year Average Interest Rate 1.00%

Current Reserve StatusCurrent Balance as a % of Ideal Balance 26%

Recommendations for 2013 Fiscal YearMonthly Reserve Allocation $5,100

Per Unit $141.67Minimum Monthly Reserve Allocation $4,700

Per Unit $130 56

1

Per Unit $130.56Primary Annual Increases 2.50%

# of Years 10Secondary Annual Increases 3.50%

# of Years 20Special Assessment (2014) $63,000

Per Unit $1,750Special Assessment (2015) $63,000

Per Unit $1,750

Changes From Prior Year (2012 to 2013)Increase/Decrease to Reserve Allocation $4,551

as Percentage 829%Per Unit $126.42

1

Percent Funded Graph For Courtyards and North Lake HOA

80%

100%

120%

Fund

ing

Percent FundedRecommended

Monthly Reserve Allocation from 2013 BudgetMinimum

2

0%

20%

40%

60%

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

2044

% L

evel

of F

un

Year

2

Component Inventory for Courtyards at North Lake

Category Asset # Asset Name UL RUL Best Cost Worst Cost

Roofing 105 Comp Shingle Roof - Replace 15 3 $243,375 $267,390

120 Gutters/Downspouts - Replace 15 3 $47,725 $51,875

Painted Surfaces 204 Building Ext Surfaces - Repaint 6 2 $43,200 $54,000

209 Wood Fencing - Restain 3 0 $1,625 $1,875

Siding Materials 301 Siding - Major Repairs 6 2 $16,200 $18,000

Drive Materials 401 Asphalt - Overlay 24 13 $35,700 $41,100

402 Asphalt - Seal Coat/crack fill 4 1 $2,600 $3,250

403 Concrete - Repair/Replace 5 0 $4,675 $5,100

Property Access 502 Garage Doors - Replace N/A $0 $0

506 Windows and Doors - Replace N/A $0 $0

Decking 601 Concrete Sidewalks - Repair 5 0 $1,325 $1,450

Prop. Identification 801 Monuments - Rebuild N/A $0 $0

Fencing/Walls 1001 Wood Fencing - Replace (Courtyards) N/A $0 $0

1004 Wood Fencing - Replace 20 8 $15,345 $17,670

1010 Trash Enclosures - Replace N/A $0 $0

Courts 1210 Gazebo - Replace 30 18 $10,500 $12,000

Light Fixtures 1602 Exterior Wall Mount - Replace 16 4 $9,000 $10,800

1604 Pole Lights - Replace 18 16 $2,500 $3,250

Irrig. System 1701 Irrigation System - Rebuild 8 5 $28,000 $32,000

1703 Irrigation Timeclocks - Replace 12 0 $1,200 $1,500

1706 Backflow Devices - Replace N/A $0 $0

3

Significant Components For Courtyards and North Lake HOA

(Curr Cost/UL)ID Asset Name UL RUL As $ As %

105 Comp Shingle Roof - Replace 15 3 $255,383 $17,026 41.2176%120 Gutters/Downspouts - Replace 15 3 $49,800 $3,320 8.0375%204 Building Ext Surfaces - Repaint 6 2 $48,600 $8,100 19.6095%209 Wood Fencing - Restain 3 0 $1,750 $583 1.4122%301 Siding - Major Repairs 6 2 $17,100 $2,850 6.8997%401 Asphalt - Overlay 24 13 $38,400 $1,600 3.8735%402 Asphalt - Seal Coat/crack fill 4 1 $2,925 $731 1.7703%403 Concrete - Repair/Replace 5 0 $4,888 $978 2.3665%601 Concrete Sidewalks - Repair 5 0 $1,388 $278 0.6718%1004 Wood Fencing - Replace 20 8 $16,508 $825 1.9982%1210 Gazebo - Replace 30 18 $11,250 $375 0.9078%1602 Exterior Wall Mount - Replace 16 4 $9,900 $619 1.4980%1604 Pole Lights - Replace 18 16 $2,875 $160 0.3867%1701 Irrigation System - Rebuild 8 5 $30,000 $3,750 9.0785%1703 Irrigation Timeclocks - Replace 12 0 $1,350 $113 0.2724%

Significance:Ave Curr

Cost

4

Significant Components Graph For Courtyards and North Lake HOA

5

105 Comp Shingle Roof - Replace

204 Building Ext Surfaces - Repaint

1701 Irrigation System - Rebuild

120 Gutters/Downspouts - Replace

All Other

120 Gutters/Downspouts - Replace

All Other

41%

20%8%

22%

20%

9%

(Curr Cost/UL)

Asset ID Asset Name UL RUL As $As %

105 Comp Shingle Roof - Replace 15 3 $255,383 $17,026 41%204 Building Ext Surfaces - Repaint 6 2 $48,600 $8,100 20%

Average Curr. Cost

Significance:

1701 Irrigation System - Rebuild 8 5 $30,000 $3,750 9%120 Gutters/Downspouts - Replace 15 3 $49,800 $3,320 8%

All Other See Expanded Table on Page 4 For Additional Breakdown $9,111 22%

5

Yearly Summary For Courtyards and North Lake HOA

2014 $350,514 $91,749 26% $61,200 $63,000 $1,815 $9,3752015 $397,743 $208,389 52% $62,730 $63,000 $3,026 $3,042

Fully Funded Balance

Starting Reserve Balance

Percent Funded

Annual Reserve Contribs

Interest Income

Reserve Expenses

Rec. Special Ass'mnt

Fiscal Year Start

6

$ , $ , $ , $ , $ , $ ,2016 $455,166 $334,103 73% $64,298 $0 $3,322 $71,0612017 $445,933 $330,663 74% $65,906 $0 $1,919 $345,2572018 $153,026 $53,230 35% $67,553 $0 $816 $11,5822019 $197,357 $110,017 56% $69,242 $0 $1,213 $47,6932020 $207,917 $132,780 64% $70,973 $0 $1,679 $2,2142021 $268,287 $203,218 76% $72,748 $0 $2,407 $02022 $335,549 $278,373 83% $74,566 $0 $2,606 $112,5072023 $290 756 $243 038 84% $76 430 $0 $2 792 $6 6542023 $290,756 $243,038 84% $76,430 $0 $2,792 $6,6542024 $356,610 $315,607 89% $78,341 $0 $3,517 $9,2892025 $424,804 $388,177 91% $81,083 $0 $4,307 $02026 $507,929 $473,567 93% $83,921 $0 $5,154 $4,9632027 $591,863 $557,679 94% $86,858 $0 $5,442 $118,7612028 $563,555 $531,218 94% $89,898 $0 $5,217 $113,7712029 $542,165 $512,562 95% $93,045 $0 $5,544 $14,4532030 $626,187 $596,698 95% $96,301 $0 $6,451 $5,3852030 $626,187 $596,698 95% $96,301 $0 $6,451 $5,3852031 $726,096 $694,065 96% $99,672 $0 $7,445 $5,6982032 $832,893 $795,484 96% $103,160 $0 $5,272 $644,5792033 $282,873 $259,337 92% $106,771 $0 $3,142 $02034 $384,695 $369,250 96% $110,508 $0 $3,363 $179,3982035 $307,637 $303,723 99% $114,376 $0 $3,229 $79,0162036 $335,658 $342,311 102% $118,379 $0 $4,033 $02037 $450,893 $464,723 103% $122,522 $0 $5,284 $02038 $574 809 $592 530 103% $126 810 $0 $6 550 $7 9462038 $574,809 $592,530 103% $126,810 $0 $6,550 $7,9462039 $699,654 $717,943 103% $131,249 $0 $7,748 $24,5262040 $816,654 $832,415 102% $135,843 $0 $8,130 $182,1512041 $778,985 $794,236 102% $140,597 $0 $8,660 $5,0462042 $928,762 $938,447 101% $145,518 $0 $9,910 $49,5012043 $1,043,252 $1,044,374 100% $150,611 $0 $10,732 $102,682

6

Reserve Contributions For Courtyards and North Lake HOA

Reserve Contributions

7

Recommended Current

Minimum

$12,000

$14,000

$8,000

$10,000

Con

trib

utio

n

$4,000

$6,000

Mon

thly

Con

t

$-

$2,000

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

2044

201

201

201

202

202

202

202

202

203

203

203

203

203

204

204

204

Year

7

ID Component Name Monthly105 Comp Shingle Roof - Replace $255,383 $287,271 $204,306 $36,380 $2,102.10120 Gutters/Downspouts - Replace $49,800 $56,018 $39,840 $0 $409.91204 Building Ext Surfaces - Repaint $48,600 $52,566 $32,400 $32,400 $1,000.09209 Wood Fencing - Restain $1,750 $1,969 $1,750 $1,750 $72.02301 Siding - Major Repairs $17,100 $18,495 $11,400 $11,400 $351.88401 Asphalt - Overlay $38,400 $63,939 $17,600 $0 $197.55402 Asphalt - Seal Coat/crack fill $2,925 $3,042 $2,194 $2,194 $90.29403 Concrete - Repair/Replace $4,888 $5,946 $4,888 $4,888 $120.69601 Concrete Sidewalks - Repair $1,388 $1,688 $1,388 $1,388 $34.261004 Wood Fencing - Replace $16,508 $22,592 $9,905 $0 $101.911210 Gazebo - Replace $11,250 $22,790 $4,500 $0 $46.301602 Exterior Wall Mount - Replace $9,900 $11,582 $7,425 $0 $76.401604 Pole Lights - Replace $2,875 $5,385 $319 $0 $19.721701 Irrigation System - Rebuild $30,000 $36,500 $11,250 $0 $463.001703 Irrigation Timeclocks - Replace $1,350 $2,161 $1,350 $1,350 $13.89

Component Funding Information For Courtyards and North Lake HOACurrent Fund Balance

Ideal BalanceFuture Cost

Ave Current Cost

8

Year 2014 2015 2016 2017 2018Starting Balance $91,749 $208,389 $334,103 $330,663 $53,230 Reserve Income $61,200 $62,730 $64,298 $65,906 $67,553 Interest Earnings $1,815 $3,026 $3,322 $1,919 $816 Special Assessments $63,000 $63,000 $0 $0 $0

Yearly Cash Flow For Courtyards and North Lake HOA

9

p $ , $ , $ $ $Funds Available $217,764 $337,145 $401,724 $398,487 $121,599Reserve Expenditures $9,375 $3,042 $71,061 $345,257 $11,582Ending Balance $208,389 $334,103 $330,663 $53,230 $110,017

Year 2019 2020 2021 2022 2023Starting Balance $110,017 $132,780 $203,218 $278,373 $243,038 Reserve Income $69,242 $70,973 $72,748 $74,566 $76,430 Interest Earnings $1,213 $1,679 $2,407 $2,606 $2,792 Interest Earnings $1,213 $1,679 $2,407 $2,606 $2,792 Special Assessments $0 $0 $0 $0 $0Funds Available $180,473 $205,433 $278,373 $355,545 $322,261Reserve Expenditures $47,693 $2,214 $0 $112,507 $6,654Ending Balance $132,780 $203,218 $278,373 $243,038 $315,607

Year 2024 2025 2026 2027 2028Starting Balance $315,607 $388,177 $473,567 $557,679 $531,218 Reserve Income $78,341 $81,083 $83,921 $86,858 $89,898 Reserve Income $78,341 $81,083 $83,921 $86,858 $89,898 Interest Earnings $3,517 $4,307 $5,154 $5,442 $5,217 Special Assessments $0 $0 $0 $0 $0Funds Available $397,466 $473,567 $562,642 $649,979 $626,333Reserve Expenditures $9,289 $0 $4,963 $118,761 $113,771Ending Balance $388,177 $473,567 $557,679 $531,218 $512,562

Year 2029 2030 2031 2032 2033Starting Balance $512,562 $596,698 $694,065 $795,484 $259,337Starting Balance $512,562 $596,698 $694,065 $795,484 $259,337 Reserve Income $93,045 $96,301 $99,672 $103,160 $106,771 Interest Earnings $5,544 $6,451 $7,445 $5,272 $3,142 Special Assessments $0 $0 $0 $0 $0Funds Available $611,150 $699,450 $801,182 $903,916 $369,250Reserve Expenditures $14,453 $5,385 $5,698 $644,579 $0Ending Balance $596,698 $694,065 $795,484 $259,337 $369,250

Year 2034 2035 2036 2037 2038Year 2034 2035 2036 2037 2038Starting Balance $369,250 $303,723 $342,311 $464,723 $592,530 Reserve Income $110,508 $114,376 $118,379 $122,522 $126,810 Interest Earnings $3,363 $3,229 $4,033 $5,284 $6,550 Special Assessments $0 $0 $0 $0 $0Funds Available $483,121 $421,327 $464,723 $592,530 $725,890Reserve Expenditures $179,398 $79,016 $0 $0 $7,946Ending Balance $303,723 $342,311 $464,723 $592,530 $717,943

Year 2039 2040 2041 2042 2043Starting Balance $717,943 $832,415 $794,236 $938,447 $1,044,374 Reserve Income $131,249 $135,843 $140,597 $145,518 $150,611 Interest Earnings $7,748 $8,130 $8,660 $9,910 $10,732 Special Assessments $0 $0 $0 $0 $0Funds Available $856,941 $976,387 $943,493 $1,093,875 $1,205,717Reserve Expenditures $24,526 $182,151 $5,046 $49,501 $102,682Ending Balance $832,415 $794,236 $938,447 $1,044,374 $1,103,035

9

Yearly Expenditures Graph For Courtyards and North Lake HOA

Reserve Expenditures

$600 000

$700,000

$500,000

$600,000

$400,000

ual T

otal

s

$200,000

$300,000

Ann

u

$100,000

$-

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

2044

YearYear

10

Year Asset ID Asset Name Projected Cost2014 209 Wood Fencing - Restain $1,750

403 Concrete - Repair/Replace $4,888601 Concrete Sidewalks - Repair $1,3881703 Irrigation Timeclocks - Replace $1,350 $9,375

2015 402 Asphalt - Seal Coat/crack fill $3,042 $3,0422016 204 Building Ext Surfaces - Repaint $52,566

301 Siding - Major Repairs $18,495 $71,0612017 105 Comp Shingle Roof - Replace $287,271

120 Gutters/Downspouts - Replace $56,018209 Wood Fencing - Restain $1,969 $345,257

2018 1602 Exterior Wall Mount - Replace $11,582 $11,5822019 402 Asphalt - Seal Coat/crack fill $3,559

403 Concrete - Repair/Replace $5,946601 Concrete Sidewalks - Repair $1,6881701 Irrigation System - Rebuild $36,500 $47,693

2020 209 Wood Fencing - Restain $2,214 $2,2142021 No Expenditures Projected $02022 204 Building Ext Surfaces - Repaint $66,512

301 Siding - Major Repairs $23,4031004 Wood Fencing - Replace $22,592 $112,507

2023 209 Wood Fencing - Restain $2,491402 Asphalt - Seal Coat/crack fill $4,163 $6,654

2024 403 Concrete - Repair/Replace $7,235601 Concrete Sidewalks - Repair $2,054 $9,289

2025 No Expenditures Projected $02026 209 Wood Fencing - Restain $2,802

1703 Irrigation Timeclocks - Replace $2,161 $4,9632027 401 Asphalt - Overlay $63,939

402 Asphalt - Seal Coat/crack fill $4,8701701 Irrigation System - Rebuild $49,952 $118,761

2028 204 Building Ext Surfaces - Repaint $84,159301 Siding - Major Repairs $29,612 $113,771

2029 209 Wood Fencing - Restain $3,152403 Concrete - Repair/Replace $8,802601 Concrete Sidewalks - Repair $2,499 $14,453

2030 1604 Pole Lights - Replace $5,385 $5,3852031 402 Asphalt - Seal Coat/crack fill $5,698 $5,6982032 105 Comp Shingle Roof - Replace $517,358

120 Gutters/Downspouts - Replace $100,886209 Wood Fencing - Restain $3,5451210 Gazebo - Replace $22,790 $644,579

2033 No Expenditures Projected $02034 204 Building Ext Surfaces - Repaint $106,489

301 Siding - Major Repairs $37,468403 Concrete - Repair/Replace $10,709601 Concrete Sidewalks - Repair $3,0401602 Exterior Wall Mount - Replace $21,692 $179,398

2035 209 Wood Fencing - Restain $3,988402 Asphalt - Seal Coat/crack fill $6,6651701 Irrigation System - Rebuild $68,363 $79,016

2036 No Expenditures Projected $02037 No Expenditures Projected $0

2038 209 Wood Fencing - Restain $4,486

Total Per Annum

Projected Reserve Expenditures For Courtyards and North Lake HOA

11

1703 Irrigation Timeclocks - Replace $3,460 $7,9462039 402 Asphalt - Seal Coat/crack fill $7,798

403 Concrete - Repair/Replace $13,029601 Concrete Sidewalks - Repair $3,699 $24,526

2040 204 Building Ext Surfaces - Repaint $134,742301 Siding - Major Repairs $47,409 $182,151

2041 209 Wood Fencing - Restain $5,046 $5,0462042 1004 Wood Fencing - Replace $49,501 $49,5012043 402 Asphalt - Seal Coat/crack fill $9,122

1701 Irrigation System - Rebuild $93,560 $102,6822044 209 Wood Fencing - Restain $5,676

403 Concrete - Repair/Replace $15,852601 Concrete Sidewalks - Repair $4,500 $26,028

Year Asset ID Asset NameProjected

CostTotal Per Annum

12

1

Glossary of Commonly used Words and Phrases (provided by the National Reserve Study Standards of the Community Associations Institute) Asset or Component – 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) have predictable Remaining Life expectancies, 4) above a minimum threshold cost, and 5) required by local codes. Cash Flow Method – A method of developing a 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. Component Inventory – The task of selecting and quantifying Reserve Components. This task can be accomplished through on-site visual observations, review of association design and organizational documents, a review of established association precedents, and discussion with appropriate association representatives. Deficit – An actual (or projected) Reserve Balance, which is less than the Fully Funded Balance. 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 the 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 the Reserve Study. Component Full Funding – When the actual (or projected) cumulative Reserve balance for all components is equal to the Fully Funded Balance. Fully Fund Balance (aka – Ideal Balance) – 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, and then summed together for an association total. FFB = Replacement Cost X Effective Age / Useful Life Fund Status – The status of the Reserve Fund as compared to an established benchmark, such as percent funding. 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 Balance above zero.

• Component Full Funding: Setting a Reserve funding goal of attaining and maintaining cumulative Reserves at or near 100% funded.

• 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 the “Component Fully Funding” method.

2

Funding Plan – An associations 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

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. 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 “0” 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 (typically the beginning of the fiscal year) that the association has identified for use to defray the future repair or replacement of those major components in which the association is obligated to maintain. Also known as Reserves, Reserve Accounts, Cash Reserves. This is based upon information provided and is not audited. Reserve Provider – An individual that prepares Reserve Studies. Also known as Aspen Reserve Specialties. Reserve Study – A budget-planning tool that 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. 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. Surplus – An actual (or projected) Reserve Balance that is greater that the Fully Funded Balance. Useful Life (UL) – Also known as “Life Expectancy”, or “Depreciable Life”. The estimated time, in years, that a Reserve component can be expected to serve its intended function if properly constructed and maintained in its present application or installation.

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