1. Priority: Owner and Guest Safety 2. Build/Maintain a Firm Financial Foundation 3. Improve and Contemporize Building’s Appearance

Ramp pedestrian safety zone improvements Ramp re-coating Bayside window touch-up Secure 1-Bedroom Deck Partitions Re-stripe parking lot North/south side landscaping 3 rd party evaluation of elevator

Triple (200%+) reserve since Y2008 Establish 180K reserve buffer Finance projects without the need for special assessments Establish/revise a comprehensive reserve study for capital expenditure planning

Constellation House Financial Presentation April 11, 2015

Constellation House “Reserve Funding” By Year Board undertakes low-cost but critical safety oriented projects (sand walkway, railing stabilization)

Constellation House Implementation of CD Laddering No current help (interest) from the Banks Effort to catch a rate increase if/when it may happen But have ready funds at the ready if/when we need it! Currently 100K in Reserve MM 50K CD matures 6/30/15 51K CD matures 12/25/15 42K CD matures 6/25/16 50K CD matures 12/31/16 On 6/30/15 -> Evaluate project funding and renew/roll for 2 years  6/30/17 On 12/25/15 -> Evaluate project funding and renew/roll for 2 years  12/13/17 And so on…

What would impact CD laddering? Need for roof replacement Outcome of the elevator study Replacement of Oceanside sliders Catastrophe / insurance related issue Fill in the blank?

CH Reserve Study Version 2 Enhanced with new formulae More sophisticated, taking on more parameters Enforces global appreciation of future costs Enforces forward looking view Keeps Board and management company on the same page Sets global expectations Planning protects the association from financial surprises!

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