Reserve Study Executive Summary
With-Site-Visit
Outdoor Resort Palm Springs
Report #: 6510-0 # of Units: 1,213
Cathedral City, CA
Level of Service: Update "With-Site-Visit"
July 1, 2022 through June 30, 2023
Findings & Recommendations
as of July 1, 2022
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,235,542 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,408,116 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2,615 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.2 % . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $91,594 Projected Starting Reserve Balance Fully Funded Balance Average Reserve Deficit (Surplus) Per Unit Percent Funded Recommended 2022/2023 Monthly Reserve Contribution
Reserve Fund Strength: 57.2% Weak
Fair
Strong
< 30%
< 70%
> 130%
Risk of Special Assessment:
High Medium
Low
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.00 % . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.00 % Economic Assumptions: Net Annual "After Tax" Interest Earnings Accruing to Reserves Annual Inflation Rate • This is an Update "With‐Site‐Visit" Reserve Study. • This Reserve Study was prepared by a credentialed Reserve Specialist ﴾RS﴿. • Because the Reserve Fund is at 57.2 % Funded, this means the association’s special assessment & deferred maintenance risk is currently Medium. • The multi‐year Funding Plan is designed to gradually bring the association to the 100% level, or “Fully Funded”. This is a low risk position where special assessments and other cash flow problems are extremely rare. • Based on this starting point, anticipated future expenses, and the association's historical Reserve contribution rate, our recommendation is to budget Monthly Reserve contributions of $91,594. Nominal annual increases are scheduled to help offset inflation ﴾see tables herein for details﴿. • The purpose of the Reserve Study is to serve as a budget planning tool, which incorporates the association's reserve fund balance, budgeted contributions, a list of significant repair/replacement projects, and a recommended funding plan. The component list contains cost estimates and approximate schedules for the association's predictable reserve expenses. These figures are strictly estimates unless otherwise noted. This document is dynamic and, therefore, we recommend that it be updated annually, with an on‐ site inspection update every three years to address changing needs, priorities, and financial conditions.
Association Reserves, #6510-0
5
7/29/2022
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