November 2022 THE CHARBONNEAU VILLAGER 7
Charbonneau Financial Oversight Committee
BY JOHN MCLAIN
What is a reserve study and why do I care ?
Most of us have heard the horror stories about HOAs with inadequate reserves to pay for major repairs and replacements , forcing them to assess
MCLAIN thousands of dollars
per homeowner to complete projects . It ’ s gratifying to know that Charbonneau Country Club ( CCC ) is not one of those HOAs .
CCC ’ s reserve study is a report of future projects and costs over the next 30 years that helps the CCC Board determine the reserve requirement for the following year ’ s annual dues . $ 7.27 per month is the 2022 share of the dues that goes to the reserve fund . The study also determines the appropriate reserve fund ’ s account ending balance needed for future years . The reserve fund balance is estimated to be $ 1,800,000 at the end of 2022 .
There are several other important benefits to a reserve study . Following is a summary of the report . You can also visit with me and other board members at an informational meeting . We will attempt to summarize the reserve study report in a few charts and graphs .
November 8 , at 7 p . m . in the Wilson Room of the Activities Center
First : A reserve study is an annual inventory and inspection of the HOA common areas , buildings and equipment of the HOA . It is initially performed by an outside consulting firm ( Schwindt & Company ). The consultant works closely with the CCC General Manager Jim Meierotto and with the CCC Asset Management Committee , chaired by Anne Shevlin . Anne welcomes resident volunteers to visit or join this committee .
Second : The consultant , CCC staff and committee members make informed estimates of the remaining life of assets ( e . g . HVAC system , roof , carpets , furniture ) and the cost to replace these assets at the end of their useful life . There are over 240
COURTESY PHOTO
This chart shows uneven expenditures but even dues receipts .
individual projects identified in the study . The projects are summarized by year into a 30-year schedule to replace and maintain CCC assets . The total cost of all projects over the next 30 years is estimated at $ 17,229,870 .
� $ 60,115 minimum - In some years , there is not much activity
� $ 5,404,789 maximum - Sometimes , lots of things happen in the same year
� $ 574,329 - On average , there are always things needing replacement
Third : The consultant calculates the annual dues amounts that would fund all these projects over the next 30 years . The total cost of projects for a given year can vary from about $ 60,000 to over $ 5,000,000 . The tricky part is to calculate a 30-year pattern of “ even payments ” adjusted for inflation , and that provide a minimum balance at all times to fund all the projects regardless of whether it is a large or small number of projects in any specific year .
Fourth : The Committee and full CCC Board review the report and recommendations before final approval of :
� The next year ’ s budget for projects funded by Reserves ($ 1,500,000 in year 2023 )
� The minimum ending balance of the Reserve Fund ($ 500,000 in year 2023 )
� The following years ’ dues assessments needed to maintain the minimum balance ( about $ 8.71 / month in year 2023 )
In summary : There are four reasons why current residents should care about the HOA reserve study :
� Assures good working order of common areas and assets � Keeps annual dues to a minimum � Maintains a prudent fund balance � Reduces risk of a special assessment Reserves that are perceived to be “ too low ” can discourage prospective buyers . Buyers often want to know whether their HOA has enough reserves to fund major maintenance and replacement projects without the risk of having either major increases in dues , or even worse , a “ special assessment .”
Gather + Give is excited to offer all Charbonneau residents a free gift with the purchase of any Charcuterie To-Go Box or
Tray during the month of November . You can place your order online , over the phone or in-store . Our store hours are Tuesday- Saturday 11am-3pm . In addition , we now have beautifully curated gift boxes available offering a wonderful assortment of locally sourced items . If you ’ re looking for a hostess gift , holiday gift , or something special for yourself , G + G has you covered !
Lastly , with the holidays approaching , we are already starting to book up ! If you ’ re considering a box or tray for your next gathering , we suggest placing your order soon . Thank you again to all the amazing residents of Charbonneau ... your continued support , kindness and generosity is truly priceless ! If you haven ’ t had a chance to visit the shop , please swing in and say hello ... we ’ d love to meet you !
With gratitude , Terena
31840 SW Charbonneau Dr , Unit H 503.395.7676 www . gatherandgivepdx . com • info @ gatherandgivepdx . com
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