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 requirements 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
Estimated Remaining Useful Lives
Current
2020/2021 Funding Requirement
Replacement
Components
Costs
Administration
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 1 - 21 0-26 7
$ 136,693 304,073 1,640,757 1,669,354 2,225,214
$ 18,282
A- other
106,463 105,217 183,204 174,736 1,266 10,581 42,359 16,489 22,619 25,932 24,957 25,481 22,761 23,687 2,753 7,869 242,121
El Saguaro clubhouse La Palma clubhouse
Golf course Golf shack
9,013 77,360 447,662 211,540 210,859 203,517 201,494 204,128
Laundry
Maintenance equipment
Vehicle
Sat#1 (A) Sat#2 (B) Sat #3 (C) Sat #5 (D) Sat #6 (E) Sat #7 (F) Sat-all
206,623 212,987 45,060 67,217 2,345,067
Guard shack
Streets Taxes
231
$1 057 008
$10 418.618
Replacement Fund Balance - June 30, 2020 $3 818 487 The Association's percentage of funding at June 30, 2020, which is based on the ending replacement fund balance divided by the reserve components' fully 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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