Misc. Website Items 2013 LLA Reserve Study | Page 5

3.0 PURPOSE & SCOPE
3.1 Purpose

The purpose of this study is to perform a reserve fund analysis and to
determine a capital needs plan. It is intended to be used as a tool for the
Association in determining the allocation requirements into the reserve
fund in order to meet future anticipated capital expenditures for the
community.
This report forecasts obligations for the community thirty years into the
future. It should be noted that events might occur that could have an effect
on the underlying component or system useful life assumptions used in
this study. Likewise, inevitable market fluctuations can have an impact on
component or system replacement and repair costs. Therefore, a study
such as this should be updated from time to time, usually on a three to
five-year cycle, in order to reflect the most accurate needs and obligations
of the community.

3.2 Scope

This study has been performed according to the scope as generally defined
by the Association, Criterium Engineers, and the standards of the
Community Associations Institute (CAI).
The findings and
recommendations are based on interviews with individuals who have
knowledge about the property; a review of available documentation; and a
visual investigation of the building components, equipment and grounds.
This study estimates the funding levels required for maintaining the long
term viability of the community. Our approach involves:
1. Visual inspection of the building components, equipment and
grounds which are the responsibility of the Association.
2. Predicting their remaining service life and, approximating how
frequently they may require repair or replacement.
3. Estimating the repair or replacement costs, in current dollars, for
each capital item.
4. Using data developed in Steps 1, 2 and 3 to project Capital
Reserve balances for the next 30 years.
The guidelines used to determine which physical components within the
community are to be included in the component inventory are based on the
following general criteria:
1.

2.

The component must have an estimated remaining useful life of
thirty years or less. As the site ages, additional components may
need to be added.

3.

Lake Linganore
New Market, Maryland
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The component must be a common element, or otherwise noted to
be the re