in a user friendly format we can share with owners”.
Bevis Peries, Treasurer
Wayside at Chelmsford Condominiums
This tells you where you stand right now. It’s a snapshot in time, good for this year for today’s reserve fund balance. Its bottom line compares the amount you actually have in your condo reserve fund with the amount you should have in order to pay for the replacement of all capital assets of the association for the next 20--30 years. The extent of any shortfall or overage becomes immediately apparent.
Its bottom line is the Annual Contribution to reserve. That number becomes an entry to your Annual Budget, helping you set the assessment for the reserve portion of your association budget.
Testing optional funding strategies using the reserve study
What if the pavement replacement program were moved ahead four years? The new contributions to reserve for those years, entered into the budget, would yield new entries (assessments) to the budgets for those years.The reserve study becomes the model for this testing.
The Reserve Study used to manage the condominium budget
The work product of a Reserve Study provides two spreadsheets. One reports on the present financial state; a second provides a resource from which to strategize the ongoing funding of capital replacement projects.