lms 2166 - waterside 2013/2014 annual general meeting december 3, 2013 depreciation report...
TRANSCRIPT
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LMS 2166 - Waterside
2013/2014 Annual General Meeting
December 3, 2013
Depreciation Report Discussion
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Agenda
1 General Information about Depreciation
Reports2 Major Findings
3 Cash Flow Projections
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General Information
Depreciation Reports have been mandated in an effort to move from reactive action to proactive action
1
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Reserve Fund Studies (a.k.a. Depreciation ReportsOther provinces with similar legislation• Ontario, Alberta, New Brunswick, etc.
* Also mandated in 30 US States• Other provinces have drafted legislation• Ontario is mandated to be fully funded
(i.e. Special Levies are not allowed)
BC legislation specifics• Reports to be updated on a 3-year cycle• Few regulations after report is acquired
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Major Findings
Depreciation Reports are providing strata corporations an understanding of their assets and the costs associated with maintaining and / or replacing them.
2
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Major FindingsImmediate Term & Year 1• $ 15,000 Gutters & Downspouts• $250,000 Cedar roof system (as is)• $ 10,000 Courtyard walkways • $ 10,000 Ramp handrails• $ 10,000 Garage structure investigation• $ 25,000 Garage repairs• $ 5,000 Building Envelope repairs• $ 15,000 Windows (annually for repairs & replacement)• $ 5,000 Suite identification numbers• $100,000 DHW plumbing • $ 1,800 Elevator repairs• $ 10,000 Security cameras
$456,800
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Major Findings
Year 2• $ 75,000 Balcony waterproofing membrane• $ 10,000 DHW #2 replacement• $ 30,000 Air handling unit
$115,000Year 3• $ 6,000 Depreciation report update • $ 5,000 Gym Flooring• $ 2,000 Refurbish gym (renovate / paint etc.)• $ 2,000 Upgrade equipment
$ 15,000
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Major FindingsYear 4• $105,000 Hallway flooring • $ 75,000 Hallway walls & ceilings• $ 45,000 Stairwell flooring• $ 30,000 Elevator interiors
$255,000Year 5• $ 5,000 Landscaping • $ 15,000 Enter phone replacement• $ 3,500 Seismic safety valves (optional)
$ 23,500
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Bar Graph
2014
2016
2018
2020
2022
2024
2026
2028
2030
2032
2034
2036
2038
2040
2042
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000 Expenses (inflated)
Expenses (inflated)
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Funding Models
Funding models are planning tools to move away from unexpected special levies
3
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Current Contributions
2015
2017
2019
2021
2023
2025
2027
2029
2031
2033
2035
2037
2039
2041
2043
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Expenses (inflated)Closing Reserve Balance
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Current Contributions
Current contributions to the CRF• Last fiscal year : • Opening balance: $336,126• Contributed $100,000
• Average contribution per strata lot: • $490 per year; or,• $41 per month
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Proposed Contributions
Proposed contributions to the CRF• Proposed fiscal year :• Opening balance: $669,061• Contributed $110,125
• Average contribution per strata lot: • $540 per year; or,• $45 per month
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Strata’s throughout BC are facing a change in culture. You make your first decision in light of the new landscape tonight.
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Questions?
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