Britton Falls by Del Webb HOA, Inc.RESERVE STUDY & PLANNING

Presented By:

RSI CONSULTANTSA Subsidiary of Comer, Nowling & Associates, CPAs

The analysis of a community’s major repair and replacement needs such as: The analysis of a community’s major repair and replacement needs such as: roofing, siding, landscaping, painting, paving, sidewalks, recreation roofing, siding, landscaping, painting, paving, sidewalks, recreation amenities, signage, or fencing, etc.. The study focuses on a specified period amenities, signage, or fencing, etc.. The study focuses on a specified period of time (minimum of 20 years) and the development of a plan for of time (minimum of 20 years) and the development of a plan for

What is a Reserve Study?

Britton Falls by Del Webb HOA, Inc.

of time (minimum of 20 years) and the development of a plan for of time (minimum of 20 years) and the development of a plan for accumulating resources (cash) to perform the repair or replacement work accumulating resources (cash) to perform the repair or replacement work when it is needed.when it is needed.

Professional Standards describe the parts of a Reserve Study as:

• The Physical Analysis is the examination and documentation of the component inventory. It includes a determination of each component’s condition (useful life and remaining useful life estimates), and each component’s valuation (replacement cost estimates). The component inventory should remain consistent over the course of the

What is a Reserve Study?Britton Falls by Del Webb HOA, Inc.

estimates). The component inventory should remain consistent over the course of the community’s life, while the condition and valuation will change from year to year.

• The Financial Analysis is the development and presentation of a spending and funding schedule over the study period (typically 20 or 30 years) in the form of a monthly or annual reserve contribution.

Reasons for Maintaining a Reserve Fund

• It protects the owners’ investmentsReserve funds provide resources to maintain common areas and property and reduce deferred maintenance.

Britton Falls by Del Webb HOA, Inc.

• It meets some legal, fiduciary, and professional requirements.A reserve fund may be required by:• Certain secondary mortgage markets and insurers:

for example; Fannie Mae, Freddie Mac, FHA, and VA• State statutes, regulations, or court decisions • Community’s governing documents

• It reduces the need for special assessments. Owners may not be able to afford a large special assessment that would be required ifreserves are insufficient to cover a major repairs or replacements.

Reasons for Conducting and Updating a Reserve Study

• Provide a documented plan for managing long-term maintenance obligations

Britton Falls by Del Webb HOA, Inc.

• Provide a documented plan for managing long-term maintenance obligations

• Budgeting Tool

• Reducing Tax Risk

Component ListComponent List

• ChateauExteriorInterior

• Landscaping• Entranceway• Walking Paths

Britton Falls by Del Webb HOA, Inc.

Interior• Pools• Parking Lot• Tennis Courts• Bocce Ball• Lakes

FountainsErosion Control

• Walking Paths• Entranceway• Common Concrete

SidewalksCurbs

• Sign Contingency• General Contingency

Britton Falls by Del Webb HOA, Inc.

Components Current Cost Percentage

Chateau $ 1,273,381.01 34.05%

Pool Facilities $ 347,436.60 9.29%

Tennis and Bocce Courts $ 140,656.98 3.76%

Lakes and Fountains $ 903,572.94 24.16%

Landscaping $ 449,685.98 12.03%

Entranceway $ 55,248.51 1.48%

Concrete and Asphalt $ 391,106.68 10.46%

General and Sign Contingencies $ 178,256.97 4.77%

$ 3,739,345.69 100.00%

Britton Falls by Del Webb HOA, Inc.

Pool Facilities, 9.29%

Tennis and Bocce Courts, 3.76%

Lakes and Fountains, 24.16%

Chateau, 34.05% Landscaping, 12.03%

Entranceway, 1.48%

Concrete and Asphalt , 10.46%

General and Sign Contingencies,

4.77%

Funding Plan GraphFunding Plan Graph

Britton Falls by Del Webb HOA, Inc.

650,000

715,000

780,000

845,000

DOLLARS

Reserve Fund Balance

Yearly Reserve Fund Contribution

Yearly Estimated Reserve Expenditures

2016-2025

0

65,000

130,000

195,000

260,000

325,000

390,000

455,000

520,000

585,000

650,000

2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Chateau Windows and Doors

Britton Falls by Del Webb HOA, Inc.

Funding Plan GraphFunding Plan Graph

650,000

715,000

780,000

845,000

DOLLARS

Reserve Fund Balance

Yearly Reserve Fund Contribution

Yearly Estimated Reserve Expenditures

2026-2035

0

65,000

130,000

195,000

260,000

325,000

390,000

455,000

520,000

585,000

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Parking lot, Chateau Maint., Tennis Courts

Chateau Roof, Pool Repairs

QUESTIONS?QUESTIONS?

Thank you Thank you

RSIRSIRSIRSICONSULTANTS INCA Subsidiary of Comer, Nowling and Associates, P.C.