The Association is required to have an outside expert complete a reserve study for us every two years. The Board often asks for an updated study in the off year.
The reserve study is simply an estimate of what repairs or upgrades are needed to keep Nepenthe a valuable place to live. The study looks out 20 years; this is so we don't forget that roofs will need to be replaced and that we must save money to be able to afford those big ticket items. On a daily operational basis, your board is most concerned with the forecast for the next five years.
Some of the projections will be amazingly accurate. Others won't be. That is to be expected. Some items won't have to be replaced, others will. Throughout the year, the board and the general manager will review our actual needs with this forecast, moving money as in a fiscally appropriate manner.
Next fall, when we commission another reserve study, the experts will ask us "what did you do this year?" in order to reassess our needs and project our costs for the next 20 years.
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