1. Depreciation Report Discussion
LMS Waterside
2013/2014 Annual General Meeting
December 3, 2013

2. 1 General Information about Depreciation Reports 2 Major Findings
Agenda
1 General Information about Depreciation Reports
2 Major Findings
3 Cash Flow Projections

3. 1
General Information
Depreciation Reports have been mandated in an effort to move from reactive action to proactive action

4. Reserve Fund Studies (a.k.a. Depreciation Reports
Other 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

5. 2
Major Findings
Depreciation Reports are providing strata corporations an understanding of their assets and the costs associated with maintaining and / or replacing them.

6. Major Findings Immediate 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

7. Major Findings Year 2 $ 75,000 Balcony waterproofing membrane
$ 10, DHW #2 replacement
$ 30,000 Air handling unit $115,000
Year 3
$ 6,000 Depreciation report update
$ 5,000 Gym Flooring
$ 2,000 Refurbish gym (renovate / paint etc.)
$ 2,000 Upgrade equipment $ 15,000

8. Major Findings Year 4 $105,000 Hallway flooring
$ 75,000 Hallway walls & ceilings
$ 45,000 Stairwell flooring
$ 30,000 Elevator interiors
$255,000
Year 5
$ 5, Landscaping
$ 15,000 Enter phone replacement
$ 3,500 Seismic safety valves (optional)
$ 23,500

9. Bar Graph

10. 3
Funding Models
Funding models are planning tools to move away from unexpected special levies

11. Current Contributions

12. 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

13. 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

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

15. Questions?

17. 4_A

18. 4_B