The Reserve Fund Study is developed for the purpose of directing the Condominium Corporation's Board of Directors in the development of a maintenance and reserve fund which is of sufficient size to cover anticipated repairs/replacements of various system components within the facility in question during the next twenty years. The study is designed to satisfy the requirements of the Condominium Act of 1998.

The Reserve Fund Study is based on an on-site review of the systems in the building(s), a review of plans provided by the Trustees, and discussions with members/owners. A budget preparation package is included with the report. The information gathered is entered into a proprietary computer program developed by Criterium Engineers in cooperation with the accounting firm of KPMG Peat Marwick. The package includes:

• A table that lists anticipated replacement/repair items complete with estimated remaining life expectancies, projected repair/replacement costs, frequency (in years) when these items require repair/replacement, and a projection, based on this frequency, of the year in which theseitems will require attention.
• A table that shows the annual expense listing per year with subtotals of anticipated repair/replacement costs for each of the twenty years. The table also presents these costs as adjusted for an assumed rate of inflation.
• A table and graph that represents end of year fund balance vs. capital expenditures based on the currently funded program and reserve balances. Any special assessments planned and/or received to date are included.
  • Three alternatives that will fund a reserve account based on anticipated capital expenditure projections, presented in graphic and tabular form for review. These alternatives include:
    • Level funding for twenty-year period with the option of special assessments as necessary.
    • Escalating funding over twenty years by constant percentage per year; no special assessments.
    • Escalating funding over twenty years by constant percentage; with special assessments.
    • A table and graph representing the three alternatives in comparison with each other. The table shows the anticipated capital expenditures vs. the annual ending reserve fund balance for each alternative.

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