The Repair and Replacement Reserve Budget is the association’s fourth largest expense category. The purpose of the reserve is to maintain the association’s commonly owned amenities without the need for a special assessment. The Repair and Replacement Reserve funds are allocated for the repair and replacement of the association’s existing commonly owned amenities. Note that the Repair and Replacement Reserve Budget is separate from the association’s Annual Operating Budget, which is used to fund the day-to-day operational needs of the association.
The value of the associations commonly owned amenities totals $8.0M. These amenities may vary in size and use, but all serve collectively to enhance the homeowner experience and property values within Stonebridge Ranch.Within the 5000 acres of Stonebridge Ranch, some of the more notable amenities include the Beach Club, Aquatics Center, Nora Haney Park, tennis courts, playgrounds, parks, 514 acres of common area landscape and 21 miles of fencing and stone monuments throughout all community and village entrances.
The following list consists of major assets that the association seeks to repair/replace in 2016:
·Parks Equipment Repair and Replacement ($124,000)
·Fence Repair and Replacement ($396,000)
Contributions to the Repair and Replacement Reserve are made annually as part of the annual budgeting process. The funds are then invested by a third-party investment firm contracted by the association. The firm invests the Repair and Replacement Reserve funds as outlined in the board approved Investment Policy. The Investment Policy emphasizes minimizing risk while maximizing returns and providing liquidity.
Repair and Replacement Reserve projects are determined and prioritized through an onsite inspection of the common area amenities conducted by a certified Reserve Study Engineer. The engineer inspects all of the association’s amenities and makes a determination as to how soon the amenity will need to be repaired or replaced. The engineer’s evaluations are then incorporated into a 30-year repair and replacement schedule that is consistent with the Repair and Replacement Reserve fund balance levels and meets the association’s obligations to maintain the common area amenities without the need for a special assessment.