Rob Warner Notes for Spreadseet Scenarios

      Bedfordshire Improvements Scenario Guidelines Worksheet    
As a result of many conversations, meetings and suggestions, I am pleased to present the following Guidelines Worksheet.          
While the actual worksheet was built by one individual, the results reflect the input received from many Bedfordshire households.          
There are a number of assumptions that have gone into the cash flow worksheet scenarios attached.          
These include the following:          
1- The approximate value of the cash in the reserve fund is $170,000.          
2- The portion of each households monthly maintenance fee that goes into the reserve fund is $90.          
3- The $90 amount reflected in #2 remains constant.          
4- Money in the reserve fund earns interest at the rate of 3% per year.          
5- Monthly mainenance fees are to be increased beginning in November of 2001.          
6- In both scenarios that follow, the entire project is completed in 2004 with 5 buildings in 2002, 5 in 2003 & 4 in 2004.          
7- Using the figures presented by the board in our meeting in October, the costs of each project follows:          
          Less 10%
  Item Cost Per Quad Less 10% Per Quad
  R=Roof 680,000 48,571 612,000 43,714
  P=Paint 180,000 12,857 162,000 11,571
  T=Trim 55,000 3,929    
  D=Decks 65,000 21,667    
  S=Roads 27,500 27,500    
  C=Contingency 72,500 5,179 65,250 4,661
  M=Mgmt 50,000 3,571    
           
Total Costs:   1,130,000   1,036,750  
           
8- Two scenarios were used: 1 using the full $1.13M and the second using a discount of 10% or approx $1M. This was a number          
that the board mentioned that perhaps could be used if we were able to negotiate better pricing with the contractors.          
9- It is the feeling of a significant number of Bedfordshire owners that the reserve fund is to be used for special times. We feel that          
it is that special time and that this should be used in calculating the amounts that must be collected to complete these repairs.          
10- The contingency of $72,000 is acceptable to some levels. We understand that there exists the chance that some work may require          
more funds than anticipated or that problems may be encountered requiring additional costs. However, it is not clear that          
incremental funds be collected to fund a contingency. Rather, there should be ample funds in the running totals of both scenarios.          
11- Both scenarios call for raising the maintenance fee by $300 per month for 36 months, just to cover the costs of these projects.          
12- Both scenarios call for 2 balloon payments in July '03 & July of '04. Scenario 1 calls for $1,600 each while scenario 2 calls for $900 each.          
13- Neither scenario allows the reserve fund to drop below approximately $50,000.          
14- Lastly, both scenarios seem to accomplish a win / win. All of the repairs specified get completed in a reasonable time frame while          
the amounts that each homeowner needs to contribute should not create a "financial hardship" for most people.          

Last Updated on 11/11/01
By Barry Kort
Email: bkort@musenet.org