top of page

RESERVE STUDY

A reserve study is a long-range capital budget planning tool that identifies qualifying capital assets of a property, along with their cost and life expectancy.  This information is used, along with current financial data, to create a funding plan.  This plan will show the adequacy of existing reserves, future capital expenditures, and the contribution levels necessary to cover these future expenses.

​

Every reserve study report prepared by Dreux Isaac & Associates includes a comprehensive and detailed component schedule based on local project costs and life expectancy data.  Each report also contains two funding plans (straight line and pooled cash flow) with reliable funding recommendations that will comply with all statutory funding requirements.

SECTION 1

Executive Summary | Report Specifications

  • Current component costs & quantity

  • Balance projections

  • Budget year projected expenditures

  • Straight-line funding plan recommendations

  • 30-Year pooled cash flow funding plan recommendations

  • Summary of the report process

  • Identify any statutory funding requirements

  • Explanation of funding plans and report terminology

  • Property notes

SECTION 2

Charts

  • Component cost allocation pie chart

  • Actual balance vs 100% funded balance comparison bar chart

  • Actual vs recommended funding comparison bar chart

  • 30-Year pooled cash flow plan line chart

SECTION 3

Component Schedule | Straight Line Plan

  • Reserve component table

  • Component description and location

  • Quantity

  • Current costs

  • Useful life

  • Remaining life

  • Straight line funding plan

SECTION 4

Pooled Cash Flow Plan

  • Plan summary showing annual cash flow

  • 30-Year funding recommendations

  • Estimated interest earnings

  • Itemized projected expenditures by year

SECTION 5

Photographs

  • Photos of property components

  • Documentation of issues

REPORT SECTIONS

Full Reserve Study (Level 1)

This is the most comprehensive reserve study service provided.  All new clients begin with a full reserve study, which includes a complete site inspection. The tasks performed include:

  • Component Inventory (including quantification)

  • Condition assessment (based on on-site visual observations)

  • Life and valuation estimates

  • Fund status

  • Funding plan

Reserve Study Reinspection (Level 2)

This is also referred to as an "Update with Site Visit/Off-Site Review."  At this level, a limited site inspection is conducted, and the following five tasks are performed:

  • Component inventory (verification only, not quantification)

  • Condition assessment (based on on-site visual observations)

  • Life and valuation estimates

  • Fund status

  • Funding plan

Reserve Study Update (Level 3)

This is also referred to as an "Update No Site Visit/Off-Site Review."  All work is done remotely as there is no site inspection or site visit. The following tasks are performed:

  • Component inventory

  • Life and valuation estimates

  • Funding plan

WHAT WE OFFER

There are three levels of reserve study services that we offer.  Which level you qualify for depends on whether you are a new or existing client and when your property was last inspected.

“

We appreciate being able to work with you.  Your company came up at a networking thing I attended today. I gave you glowing praise. Well deserved.

 

-Kathy Grandt, Community Association Manager

RESERVE STUDY

A reserve study is a long-range capital budget planning tool that identifies qualifying capital assets of a property, along with their cost and life expectancy.  This information is used, along with current financial data, to create a funding plan.  This plan will show the adequacy of existing reserves, future capital expenditures, and the contribution levels necessary to cover these future expenses.

​

Every reserve study report prepared by Dreux Isaac & Associates includes a comprehensive and detailed component schedule based on local project costs and life expectancy data.  Each report also contains two funding plans (straight line and pooled cash flow) with reliable funding recommendations that will comply with all statutory funding requirements.

View a sample of the reports we offer.

REPORT SECTIONS

Section 1

Executive Summary / Report Specifications

  • Current component costs & quantity

  • Balance projections

  • Budget year projected expenditures

  • Straight line funding plan recommendations

  • 30-Year pooled cash flow funding plan recommendations

  • Summary of report process

  • Identify any statutory funding requirements

  • Explanation of funding plans and report terminology

  • Property notes

Section 2

Charts

  • Component cost allocation pie chart

  • Actual balance vs 100% funded balance comparison bar chart

  • Actual vs recommended funding comparison bar chart

  • 30-Year pooled cash flow plan line chart

Section 3

Component Schedule / Straight Line Plan

  • Reserve component table

  • Component description and location

  • Quantity

  • Current costs

  • Useful life

  • Remaining life

  • Straight-line funding plan

Section 4

Pooled Cash Flow Plan

  • Plan summary showing annual cash flow

  • 30-Year funding recommendations

  • Estimated interest earnings

  • Itemized projected expenditures by year

Section 5

Photographs

  • Photos of property components

  • Documentation of issues

bottom of page