Misc. Website Items 2013 LLA Reserve Study | Page 3

1.0 INTRODUCTION

The Lake Linganore Association (the Association) authorized Criterium
Engineers to conduct a Building Evaluation and Reserve Fund Study for
the Villages at Eaglehead, located in New Market, MD. Studies of this
nature are important to ensure that a community has sufficient funds for
long-term, periodic capital expenditure requirements. Anticipating large
expenditures over an extended period of time through a structured analysis
and scheduling process assists the Association in meeting financial
requirements without increasing the service fees above permitted
maximums, borrowing the funds, or levying special financial assessments
to the owners.
Typically, a community association has two broad cash requirements: the
general operating reserves and the capital repair and replacement reserves.
In this report, we will focus on those items falling under the capital repair
and replacement reserve criteria. We have projected a capital repair and
replacement reserve for thirty (30) years. The first ten years are the most
reliable. Such a study should be updated every three to five years.
This report is structured to analyze components of the community for
which the Association is responsible and to assess an expected useful life
and remaining useful life to those components. The anticipated scheduled
repair or replacement of the component and the anticipated expense for the
activity are then analyzed in conjunction with the current capital reserves
funding program for the community. Funding program recommendations
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