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