FUNDING REQUIREMENTS & METHODS TO MEET THEM

 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

 CURBS AND GUTTERS  SIDEWALKS  DETENTION POND  STREETS: MAINTENANCE & REPAIR

 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

 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

YEAR YEAR # EXPENITURES* RESURFACE ASPHALT PAVEMENT $0 $117,733 ASHPHALT PAVEMENT CRACK SEAL/REPAIR $0 $5,250$0 $5,250$0 $5,250 CONCRETE REPAIR REPLACEMENT $0$3,250$0$3,250$0$3,250$0$3,250$0$3,250$0$3,250$0 DETENTION AREA MAINTENANCE $0$2,000 TOTAL COSTS $0$5,250$7,250$5,250$2,000$5,250$2,000$10,500$2,000$5,250$2,000$5,250 $124,983 INFLATION ADJUSTED COSTS $0$5,434$7,766$5,821$2,295$6,235$2,459$13,359$2,634$7,155$2,821$7,665 $188,858 INFLATION RATE 3.50%

CURRENT SCENERIO PROJECTED ANNUAL FUNDING & EXPENTITURES YEAR END RESERVE FUND BALANCE $35,688$35,130$32,182$31,159$33,712$32,297$34,706$26,045$28,151$25,686$27,593$24,597 ($160,074) CAPITAL EXPENDITURES $0$5,434$7,766$5,821$2,295$6,235$2,459$13,359$2,634$7,155$2,821$7,665 $188,858 TOTAL REVENUE-ALL SOURCES$4,887$4,876$4,818$4,798$4,848$4,820$4,868$4,698$4,739$4,691$4,728$4,669$4,187

WHAT WE NEED TO DO & WHEN

 BASICALLY IN GOOD CONDITION  A FEW NICKS HERE & THERE  NO MAJOR EXPENSES IN NEAR FUTURE

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

 GENERALLY GOOD  CLEARING AROUND GRATING NEEDS TO BE ADDRESSED WITHIN THE NEXT YEAR  GENERAL CLEAN- UP ON YEARLY BASIS

 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

 STRONGLY ADVOCATED BY OCRC AND BIRMINGHAM SEALCOAT  DISCOURAGED BY ULTIMATE CONCRETE  SUPPOSEDLY LENGTHENS THE LIFE OF STREET ROUTE & INSERT SEALER STREETCURB

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

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

 FORM A COMMITTEE TO VERIFY CONCLUSIONS  HAVE THE COMMITTEE CHOOSE A METHOD FROM THE RESERVE STUDY TO BEST MEET FUTURE FUNDING

 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

 STEPWISE INCREASES  24% ANNUAL INCREASES TO RESERVE FUND PORTION OF ASSOCIATION DUES  ADDITIONAL ASSESSMENTS

BEGINNING FUND BALANCE $30,802$35,692$38,035$40,946$48,801$63,311$76,992$97,700$110,605$134,708$154,681$179,473$199,822 FEE REVENUE $4,190$7,031$9,875$12,719$15,563$18,407$21,251$24,095 INVESTMENT EARNINGS $700$746$803$957$1,241$1,510$1,916$2,169$2,641$3,033$3,519$3,918$701 CAPITAL EXPENTITURES $0$5,434$7,766$5,821$2,295$6,235$2,459$13,359$2,634$7,155$2,821$7,665$188,858 ENDING BALANCE $35,692$38,035$40,946$48,801$63,311$76,992$97,700$110,605$134,708$154,681$179,473$199,822$35,760 ANNUAL FUNDING PER UNIT$53$89$125$161$197$233$269$305 YEAR PERCENT RATE OF RETURN OF INVESTMENTS 2.00% INCREASED FUNDING PER UNIT ( ) $36 TOP FUNDING LEVEL (YRS ) $305 TOTAL BALANCE-MUST BE GREATER THAN 0** $20,760

 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

 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