LMS 2166 - Waterside

2013/2014 Annual General Meeting

December 3, 2013

Depreciation Report Discussion

Agenda

1 General Information about Depreciation

Reports2 Major Findings

3 Cash Flow Projections

General Information

Depreciation Reports have been mandated in an effort to move from reactive action to proactive action

1

Reserve Fund Studies (a.k.a. Depreciation ReportsOther provinces with similar legislation• Ontario, Alberta, New Brunswick, etc.

* Also mandated in 30 US States• Other provinces have drafted legislation• Ontario is mandated to be fully funded

(i.e. Special Levies are not allowed)

BC legislation specifics• Reports to be updated on a 3-year cycle• Few regulations after report is acquired

Major Findings

Depreciation Reports are providing strata corporations an understanding of their assets and the costs associated with maintaining and / or replacing them.

2

Major FindingsImmediate Term & Year 1• $ 15,000 Gutters & Downspouts• $250,000 Cedar roof system (as is)• $ 10,000 Courtyard walkways • $ 10,000 Ramp handrails• $ 10,000 Garage structure investigation• $ 25,000 Garage repairs• $ 5,000 Building Envelope repairs• $ 15,000 Windows (annually for repairs & replacement)• $ 5,000 Suite identification numbers• $100,000 DHW plumbing • $ 1,800 Elevator repairs• $ 10,000 Security cameras

$456,800

Major Findings

Year 2• $ 75,000 Balcony waterproofing membrane• $ 10,000 DHW #2 replacement• $ 30,000 Air handling unit

$115,000Year 3• $ 6,000 Depreciation report update • $ 5,000 Gym Flooring• $ 2,000 Refurbish gym (renovate / paint etc.)• $ 2,000 Upgrade equipment

$ 15,000

Major FindingsYear 4• $105,000 Hallway flooring • $ 75,000 Hallway walls & ceilings• $ 45,000 Stairwell flooring• $ 30,000 Elevator interiors

$255,000Year 5• $ 5,000 Landscaping • $ 15,000 Enter phone replacement• $ 3,500 Seismic safety valves (optional)

$ 23,500

Bar Graph

2014

2016

2018

2020

2022

2024

2026

2028

2030

2032

2034

2036

2038

2040

2042

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000 Expenses (inflated)

Expenses (inflated)

Funding Models

Funding models are planning tools to move away from unexpected special levies

3

Current Contributions

2015

2017

2019

2021

2023

2025

2027

2029

2031

2033

2035

2037

2039

2041

2043

$0

$500,000

$1,000,000

$1,500,000

$2,000,000

$2,500,000

Expenses (inflated)Closing Reserve Balance

Current Contributions

Current contributions to the CRF• Last fiscal year : • Opening balance: $336,126• Contributed $100,000

• Average contribution per strata lot: • $490 per year; or,• $41 per month

Proposed Contributions

Proposed contributions to the CRF• Proposed fiscal year :• Opening balance: $669,061• Contributed $110,125

• Average contribution per strata lot: • $540 per year; or,• $45 per month

Strata’s throughout BC are facing a change in culture. You make your first decision in light of the new landscape tonight.

Questions?