During 2017, the Board employed Association Reserves to update our Reserve Study for 2018. The update included addition and deletion of components, most notably the breaking up of the road components into smaller units that reflect the order in which we are likely to repave the roads. Association Reserves also adjusted the estimate of current costs for each component, using our cost experience and industry trends. Component descriptions were updated to reflect projects completed. Finally, the funding plan was recalculated using our current Reserve Fund balance, dues, and budgeted operating expenses. The Reserve Study Update was completed in late 2017 for the fiscal year beginning January 2018. The Executive Summary is shown in the PDF file below.
The primary goal of having the Reserve Study is to have better financial planning for the foreseeable future and to avoid any sudden large assessments. Special assessments are a giant red flag for institutions dealing in mortgages and it lowers home values by reducing the number of potential buyers. Also special assessments are a hardship to many on fixed incomes. The Reserve Study allows the Board to plan for future maintenance expenses funded by dues contributions to the Reserve Fund.
Click here for the complete, updated 2018 Reserve Study.[Click here to see the previous 2016 Reserve Study.]