RESERVE ANALYSIS - PowerPoint PPT Presentation

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RESERVE ANALYSIS

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  1. RESERVE ANALYSIS FUNDING REQUIREMENTS & METHODS TO MEET THEM

  2. RESERVE FUND-WHY WE HAVE IT • A SEPARATE FUND TO MEET FUTURE CAPITAL EXPENDITURES FOR THE ASSOCIATION • TO PROTECT THE ASSOCIATION FROM AN UNFORSEEN CAPITAL EXPENDITURE OR AN EMERGENCY EVENT • A BY-LAW REQUIREMENT

  3. WHAT ARE THE RESERVES’ CAPITAL OBLIGATIONS • CURBS AND GUTTERS • SIDEWALKS • DETENTION POND • STREETS: MAINTENANCE & REPAIR

  4. WHY RESERVE STUDY WAS INITIATED • DID NOT KNOW THE SCOPE OF THE ASSOCIATION’S CAPITAL RESPONSIBILITIES-PARTICULARLY STREETS • DID NOT KNOW THE AMOUNT OF FUNDS NEEDED TO COVER THE MAINTENANCE OF THESE ITEMS

  5. RESERVE STUDY-RESULTS • ASSESSED THE CURRENT STATUS OF THE RESERVE FUND & FUNDING LEVELS • CONCLUDED THAT THE RESERVE IS CURRENTLY UNDERFUNDED TO MEET PROJECTED FUTURE EXPENSES • CONTENT IS A BLUEPRINT-A TOOL-USED TO PROJECT FUTURE FUNDING LEVELS • PROPOSED THREE SCENARIOS TO MEET FUTURE FUNDING • GIVES THE STATUS OF CAPITAL ITEMS

  6. RESERVE STUDY SCHEDULE OF CAPITAL EXPENDITURES

  7. RESERVE FUND-CURRENT & PROJECTED STATUS

  8. PROJECTED YEARLY BALANCES FOR CURRENT LEVEL OF SAVING & INVESTMENT RETURNS

  9. Status of capital items WHAT WE NEED TO DO & WHEN

  10. CURBS & GUTTERS • BASICALLY IN GOOD CONDITION • A FEW NICKS HERE & THERE • NO MAJOR EXPENSES IN NEAR FUTURE

  11. SIDEWALKS • WALKING PATHS IN GOOD CONDITION-MINOR REPAIRS ONGOING AS NECESSARY • GAPS BETWEEN SIDEWALK & CURB NEED IMMEDIATE REPAIR-A LIABILITY ISSUE SIDEWALK APRON CURB

  12. DETENTION POND • GENERALLY GOOD • CLEARING AROUND GRATING NEEDS TO BE ADDRESSED WITHIN THE NEXT YEAR • GENERAL CLEAN-UP ON YEARLY BASIS

  13. STREETS-ASPHALT SEAL & REPAIR • STREETS ARE FOR MOST PART IN GOOD CONDITION • NEED TO IMPLEMENT AN ASPHALT CRACK SEALING PROGRAM • INTERSECTION AT RIVERBED AND VALLEY STREAM NEEDS IMMEDIATE ATTENTION

  14. STREETS-REFACING CURBS • STRONGLY ADVOCATED BY OCRC AND BIRMINGHAM SEALCOAT • DISCOURAGED BY ULTIMATE CONCRETE • SUPPOSEDLY LENGTHENS THE LIFE OF STREET STREET CURB ROUTE & INSERT SEALER

  15. REFACING CURBS: EXAMPLE • COST: $15,000-$20,000 • DURATION: 5YRS+ FROM ULTIMATE SEAL-10YRS+ FROM BIRMINGHAM SEALCOAT • PURPOSE IS TO PREVENT DAMAGE BETWEEN STREET & CURB SHERMAN STREET

  16. PROS & CONS ON REFACING CURBS PROS • COULD LENGTHEN LIFE OF STREETS • COULD POTENTIALLY DELAY COSTLY RESURFACING CONS • ULTIMATE CONCRETE HAS DOUBTS ABOUT PROCESS • IS NOT WIDELY PRACTICED • EXPENSE • PERSONAL OBSERVATION

  17. PARK STREET-EXAMPLES OF REFACING CURBS-A NEGATIVE RESULT

  18. BOARD INITIATIVES TO RESERVE STUDY RESULTS • FORM A COMMITTEE TO VERIFY CONCLUSIONS • HAVE THE COMMITTEE CHOOSE A METHOD FROM THE RESERVE STUDY TO BEST MEET FUTURE FUNDING

  19. RESERVE COMMITTEE • COMMITTEE CONSISTED OF • JOHN VON ALLMEN • RICHARD WOODMANSEE • MIKE GOULD • JEFF BUCHOLZ • PURPOSE: • ASSESS THE RESULTS OF THE RESERVE STUDY RECOMMENDATIONS • ASSESS THE CONDITION OF ASSOCIATIONS’ CAPITAL ITEMS • RECOMMEND A FUNDING METHOD TO MEET FUTURE CAPITAL EXPENSES

  20. THREE SCENARIOS TO MEET FUNDING NEEDS • STEPWISE INCREASES • 24% ANNUAL INCREASES TO RESERVE FUND PORTION OF ASSOCIATION DUES • ADDITIONAL ASSESSMENTS

  21. STEPWISE INCREASES

  22. STEPWISE CHART

  23. CONCLUSIONS OF COMMITTEE • ALL WERE IN AGREEMENT THAT A FUNDING SOLUTION TO ADDRESS THE RESERVE SHORTFALL SHOULD BE IMPLEMENTED IMMEDIATELY • FOUR CAPITAL PROJECTS SHOULD BE ADDRESSED IMMEDIATELY • FIRST: SIDEWALK SEPARATION AT CURBS • SECOND: CRACK & SEAL OF ASPHALT • THIRD: CLEARING OF DETENTION POND • FOURTH:SOLICIT BIDS FOR REFACING OF CURBS

  24. WHERE DO WE GO FROM HERE? • RECOGNIZE THAT THE COMMON ELEMENTS ARE OUR RESPONSIBILITY COLLECTIVELY-WHICH INCLUDES ROADS • RECOGNIZE THAT CURRENT DUES ARE NOT SUFFICIENT TO MAINTAIN THE COMMON ELEMENTS IN THEIR CURRENT CONDITION • STRIKE A BALANCE BETWEEN THE NEEDS OF THE COMMUNITY TO THE ABILITY OF THE HOMEOWNER TO PAY • RE-ASSESS ON A YEARLY BASIS-USING SPREADSHEET AS A MONITORING TOOL