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

What Level of Detail we Talking?

• 145 page Document

• 95 Components Reviewed in the Reserve Study in 6 Property Classes

• Example of Component Detail– Balcony Railings

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

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

Fully Funded Reserve : Year 1

•Reserve of $280,500 in Year 1

•Annual increase at 2.9% for inflation

•No Projected Special Assessments in 30 Year Term

•Monthly Increase/Unit2 BDRM - $121.533 BDRM - $127.93STUDIO - $97.51

Fully Funded Reserve : Year 1

Stepped Funding 5 Year Plan

•Reserve of $66,164 in Year 1•Annual increase at $25-$30 for 5 years then 2.9% for inflation•Projected Special Assessment

Year 2 ($50,000) &Year 3 ($40,000)

• Monthly Increase/Unit2 BDRM - $28.793 BDRM - $30.51STUDIO - $23.62

Stepped Funding 5 Year Plan

Comparison of Reserve FundingFully Funded Year 1

• Reserve of $280,500 in Year 1

• Annual increase at 2.9% for inflation

• No Projected Special Assessments in 30 Year Term

• Monthly Increase/Unit for Reserve Account– 2 BDRM - $121.53– 3 BDRM - $127.93– STUDIO - $97.51

Stepped Funded 5 Year Plan

• Reserve of $66,164 in Year 1• Annual increase at $25-$30

for 5 years then 2.9% for inflation

• Projected Special Assessment Year 2 ($50,000) &Year 3 ($40,000)

• Monthly Increase/Unit for Reserve Account– 2 BDRM - $28.79– 3 BDRM - $30.51– STUDIO - $23.62

2016 Budget Comparison 2015 Budget

2016 Budget Variance

Insurance-for Common Areas, including Personal Property, Casualty & Liability

65,000 84,000 19,000

Utilities-Electric, Water & Sewer, Gas and Telephone 525,000 535,000 10,000

Satellite Television 40,000 90,000 50,000

Landscape & Grounds Maintenance 77,000 85,000 8,000

Common Area Maintenance- deep cleaning, time and material 70,000 107,000 37,000

Office, Postage & Annual Meetings 1,600 1,356 (244)

Common Equipment- Contract (Elevator) 86,000 90,000 4,000

Security 30,000 30,000 -0-

Rubbish Removal 32,000 27,000 (5,000)

Parking Lot Maintenance, Repair (time and materials - including easement areas)

15,000 15,000 -0-

Pool Supplies and Labor 79,500 90,000 10,500

Reserve for Replacement- Common Areas 15,000 66,164 51,164

Indoor Amenity Fee 260,000 260,000 -0-

Association Management Fee and Legal 42,000 42,000 -0-

FF&E Reserve Study (2015) 6,200 (6,200)

Pest Remediation 15,000 15,000

Total Association Expenses $1,344,300 $1,537,536 $193,236

2016 Monthly Budget by Unit Type 3 BedroomDoble

2 BedroomGrande Studio

Insurance-for Common Areas, including Personal Property, Casualty & Liability

38.73 36.55 29.99

Utilities-Electric, Water & Sewer, Gas and Telephone 246.70 232.78 191.03Satellite Television 41.50 39.16 32.14Landscape & Grounds Maintenance 39.20 36.98 30.35Common Area Maintenance- deep cleaning, time and material 49.34 46.56 38.21Office, Postage & Annual Meetings 0.63 0.60 0.49Common Equipment- Contract (Elevator) 41.50 39.16 32.14Security 13.83 13.05 10.71Rubbish Removal 12.45 11.75 9.64Parking Lot Maintenance, Repair (time and materials - including easement areas)

6.92 6.53 5.36

Pool Supplies and Labor 41.50 39.16 32.14Reserve for Replacement- Common Areas 30.51 28.79 23.62Indoor Amenity Fee 119.89 113.13 92.84Association Management Fee and Legal 19.37 18.27 15.00FF&E Reserve Study (2015)

Pest Remediation 6.92 6.53 5.36

Total Association Expenses 709 669 549

Budget Variances 2015 v. 2016• Reserve For Replacement – Common Areas $66,164

– Increase from previous set reserve amount in 2015 to the 7 Year Stepped funding of the Reserve Study recommendations.

• Satellite Television & Internet $90,000– 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 $107,000– 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.

Major Contibuting Factors• Pest Remediation $15,000

– 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 $90,000– 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 $535,000– 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.

5 Year Plan Reserve Study Cashflow

Reserve Study Expenses Year 1-5• 2016 $31,791 Expense

– Railings Refinishing $14,149– Water Softening System

$15,435– Sports Area Paint/Repair

$2,207• 2017 $187,460 Expense

– Hallway Carpet Replacement (Phased) $86,560

– Paint/Stain Lobby/Hallways (Phased) $16,343

– Wall Coverings Replacement (Phased) $34,696

– Wavepool Waterfall Resurfacing $2,647

– Pool Resurfacing of Wavepool Pool Floor $28,536ProTile Waterline $18,678

• 2018 $188,168 Expense– Carpet Hallway/Lobby

(Phased) $89,070– Paint/Stain Lobby/Hallways

(Phased) $16,817– Wall Coverings Replacement

(Phased) $35,702– Pool Resurfacing of

Activity/Kiddie River Pool Floors $41,021

– Update Reserve Study $5,557

Reserve Study Expenses Year 1-5 (cont.)• 2019 $215,080 Expenses

– Balconies/Railings Refinishing $26,176

– Carpet Hallway/Lobby (Phased) $91,654

– Lobby Furnishings $16,414– Paint/Stain Lobby/Hallways

(Phased) $17,305– Wall Coverings Replacement

(Phased) $36,737– Landscaping $8,409– Pool Heaters

Activity/Kiddie River $9,193WavePool $9193

• 2020 $96,154 Expense– Luggage Carts $5,001– Wave Pool Audio System

$1,661– Water Heater Wavepool Bath

House $9,229– Concrete Sidewalk/Patio

Replacement (Partial) $ 31,477– Pool Furniture Wave Pool

$34,644

Review

2016 Chula Vista Condominium Unit Owners Association Budget

handout

Review

2015 Manager’s Report

Mike Kaminski