3. Reserve Items are Classified as Items that are : The Association’s Responsibility Have a Limited Useful Life Have a Remaining Expected Useful Life Have a Replacement Cost Above $2,500 Broken Down by Property Class – External Building Components – Internal Building Components – Service Components – Site Components – Pool Components – Other Components

4. What Level of Detail we Talking? 98 page Document 58 Components Reviewed in the Reserve Study in 6 Property Classes Example of Component Detail – Balcony Railings

5. For All Components Estimated Quantity & Replacement Cost Component Condition, Useful Life, Age, and Replacement Years Images with Comments/Special Conditions Schedule of Replacement Cost over 30 year period

6. Non-Reserve Items are Classified as Items that are : Operating Budget Components – Items funded through operating budget – Items with replacement cost less than $2,500 Components Maintained by Others – Government, Utilities, Other Vendors Long Lived Components – Components that have Useful Life greater than 30 Years Unit Owner Resposibilities – Components in Their Individual Units

9. Fully Funded Reserve : Year 1 Reserve of $91,300 in Year 1 Annual increase at 2.9% for inflation No Projected Special Assessments in 30 Year Term Monthly Increase/Unit Loft Villas- $61.81 Studio/Fam Suites - $53.11

10. Fully Funded Reserve : Year 1

11. Stepped Funding 5 Year Plan Reserve of $24,992 in Year 1 Annual increase at $20 for 5 years then 2.9% for inflation Projected Special Assessment Year 1 or 2 depending on spend $20,000 Monthly Increase/Unit Loft Villas- $22.35 Studio/Fam Suites - $19.50

12. Stepped Funding 5 Year Plan

13. Comparison of Reserve Funding Fully Funded Year 1 Reserve of $91,300 in Year 1 Annual increase at 2.9% for inflation No Projected Special Assessments in 30 Year Term Monthly Increase/Unit – Loft Villas- $61.81 – Studio/Fam Suites - $53.11 Stepped Funded 5 Year Plan Reserve of $24,992 in Year 1 Annual increase at $20 for 5 years then 2.9% for inflation Projected Special Assessment Year 1 or 2 depending on spend $20,000 Monthly Increase/Unit – Loft Villas- $22.35 – Studio/Fam Suites - $19.50

14. 2016 Budget Comparison 2015 Budget 2016 BudgetVariance Insurance-for Common Areas, including Personal Property, Casualty & Liability29,00035,0006,000 Utilities-Electric, Water & Sewer, Gas and Telephone159,246162,5003,254 Satellite Television15,00029,84014,840 Landscape & Grounds Maintenance22,00026,0004,000 Common Area Maintenance- deep cleaning, time and material 47,00055,0008,000 Office, Postage & Annual Meetings1,300 -0- Common Equipment- Contract (Elevator)12,000 -0- Security6,000 -0- Rubbish Removal10,500 -0- Pool Supplies and Labor15,50017,0001,500 Reserve for Replacement- Common Areas1,50024,99223,492 Indoor Amenity Fee77,000 -0- Association Management Fee and Legal20,000 -0- FF&E Reserve Study (2015)4,200(4,200) Pest Remediation6,000 Total Association Expenses$420,246$483,132$62,886

15. 2016 Monthly Budget by Unit Type 2016 Budget Loft Villas Studio/ Fam. Suites Insurance-for Common Areas, including Personal Property, Casualty & Liability 35,00031.3027.31 Utilities-Electric, Water & Sewer, Gas and Telephone162,500145.30126.80 Satellite Television29,84026.6823.28 Landscape & Grounds Maintenance26,00023.2520.29 Common Area Maintenance- deep cleaning, time and material 55,00049.1842.92 Office, Postage & Annual Meetings1,3001.161.01 Common Equipment- Contract (Elevator)12,00010.739.36 Security6,0005.364.68 Rubbish Removal10,5009.398.19 Pool Supplies and Labor17,00015.2013.27 Reserve for Replacement- Common Areas24,99222.3519.50 Indoor Amenity Fee77,00068.8560.09 Association Management Fee and Legal20,00017.8815.61 FF&E Reserve Study (2015) Pest Remediation6,0005.364.68 Total Association Expenses483,132432.00377.00

16. Budget Variances 2014 v. 2015 Reserve For Replacement – Common Areas $24,992 – Increase from previous set reserve amount in 2015 to the 5 Year Stepped funding of the Reserve Study recommendations. Satellite Television & Internet$29,840 – Installed Access Points in Individual Units, 3 year lease on equipment which includes all service, maintenance, and 24-hour support. – This breaks down to $12 per Key per Month. Common Area Maintenance$55,000 – General Increase based on the Operating Expenses of the Common Area. – Staying with the Reserve Study Recommendations can help limit future increases. If items aren’t replaced in their useful life, this may grow.

17. Budget Variances 2014 v. 2015 Pest Remediation$6,000 – The Association Board voted to add this budget line item. CVR Management and the Association are spliting the cost of treatments. Pool Supplies and Labor$17,000 – Increase in Costs of the Pool Supplies and More Labor necessary to Maintain the 10 Year Old Pools. This was based off 2015 Actuals. Utilities –Elec., Water/Sewer, Gas & Telephone$162,500 – City of Wisconsin Dells Utility Commission is expecting a 2-3% increase in Utilities pricing in 2016. – This budget is also effected by the number of “degree” days for both the Heating and Air Conditioning seasons.

18. 30 Year Reserve Cashflow

19. Reserve Study Expenses Year 1-5 2016$25,057 Expense – Villa B Stairway landing Decking $1,873 – Water Softening System $13,377 – Parking Lot Sealing $9,807 2017$26,021 Expense – Paint/Stain Lobby/Hallways (Phased) $21,680 – Jacuzzi Heater Replacement $4,341 2018$52,462 Expense – Carpet Hallway/Lobby (Phased) $26,285 – Paint/Stain Lobby/Hallways (Phased) $22,308 – Update Reserve Study $3,868 2019$89,134 Expense – Balconies/Railings Refinishing $19,760 – Glass Entry Door Replacement (Phased) $7,231 – Carpet Hallway/Lobby (Phased) $27,048 – Paint/Stain Lobby/Hallways (Phased) $22,955 – Landscaping $5,606 – Jacuzzi Resurfacing $6,533 2020$119,845 Expense – Exterior Carpeting $4,664 – Exterior Walls Painting $77,312 – Luggage Carts $2,353 – Water Heaters $35,516

20. Review 2016 Chula Vista Fairway Villa Unit Owners Association Budget handout 2015 Managers Report Mike Kaminski