Reserve Study  Financial Analysis                                             
 

 

 

 

 

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Washington's Bill 6215

 What is a Reserve Study? FACTs - what you should know about Reserve Studies HOME
Actual  Bill

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 Tutorial Who we are - Contact Us
Tutorial Intro Physical Analysis Comp. Life & Cost Finance Analysis Funding Strategy Calculating Balance  


The second part of the Reserve Study is really a lot of number crunching and estimating of costs. The financial analysis section of a Reserve Study uses the cost and life estimate information gained from the physical analysis to come up with a funding plan that provides for each component’s reserve funding needs. In many cases when we did our onsite inspection, the life and costs were readily apparent so we will have to determine the best estimate of costs and when replacements will be needed. The Financial Analysis evaluates the associations reserve fund balance and income. The financial analysis calculates a associations percent funded by comparing the actual reserve balance to a fully funded balance.  The reserve study then estimates the total annual contribution necessary to defray the future costs.
 

What is Percent Funded?
The present status of the Reserve Fund is generally expressed in terms of “Percent Funded.” The amount that an association should ideally have in its reserve fund (according to the most recent reserve study) is called the Fully Funded Balance. The percentage of the actual amount in the reserve fund versus the ideal is said to be the account's percent funded. For instance an association with an actual reserve fund balance of $50,000 and a theoretical fully funded balance of $100,000 is said to be 50% funded.

 

Contact Information
 Pacific Crest Reserves, LLC
Anacortes, Washington 98221

Toll Free 1-866-618-7764 or Local 360-588-9956
http://www.PacCrestReserves.com

 

 

Send mail to rick@paccrestreserves.com  with questions or comments about this web site.
Copyright © 2012Pacific Crest Reserves, LLC
Last modified: 10/22/2011
Pacific Crest Reserves is a locally owned Condominium and Home Owner Association consulting company. Our Reserve Study Analysts work with associations to create timely and accurate Reserve Studies. The Pacific Crest Reserves is an experienced consulting firm committed to providing reliable reserve solutions to Associations, regardless of size, complexity or location. We provide easy to understand information for our clients to give them new ways of thinking about how they can best manage their association assets. Our focus is Reserve Studies to associations in the Snohomish, Skagit, Island and San Juan Counties.