OUTDOOR RESORTS/PALM SPRINGS OWNERS ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2020
(UNAUDITED)
The Board of Directors engaged an outside consultant to conduct a study in May 2020, to estimate the remaining useful lives and the replacement costs of the components of common property. The study is based on current estimated replacement costs. Funding requ irements consider an annual inflation rate of 3.0 percent and interest of 1.0 percent, before taxes, on amounts funded for future major repairs and replacements .
The following table is based on the study and presents significant information about the components of common property :
Estimated Current
Estimated Rema ining Useful Lives
2020/2021
Replacement
Funding
Requirement
Components
Costs
$ 136,693
$
0 - 15 0 - 3 0 - 29 0 - 26 0 - 22 2 - 5 0 - 14 0 - 14 1 - 4 0 - 19 0 - 18 0 - 14 0 - 18 0 - 19 0 - 20 7 1 - 21 0 - 26
18,282 106,463 105,217 183,204 174,736
Administration A - other
304,073
1,640,757 1,669 ,354 2,225 ,214
El Saguaro clubhouse La Palma clubhouse Golf course Golf shack Laundry Maintenance equipment Veh icle
9,013
1,266
10,581 42,359 16,489 22,619 25 ,932 24 ,957 25 ,481 22 ,761 23,687
77,360 447,662 211 ,540 210,859 203,51 7 201,494 204,128 206 ,623 212 ,987 45,060 67 ,21 7
Sat #1 (A) Sat #2 (B) Sat#3 (C) Sat #5 (D) Sat #6 (E) Sat #7 (F) Sat- all Guard shack Streets Taxes
2,753 7,869
242 ,121 231
2,345,067
$10 418 618
$1 057 008
$3 818 487
Replacement Fund Balance - June 30, 2020
The Association 's percentage of fund ing at June 30, 2020, which is based on the ending replacement fund balance divided by the reserve components ' fu lly funded amount, is 68.47%. The Association would be 100% funded if there were $5 ,633 ,668 in the replacement fund .
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