3. Reserve Items are Classified as Items that are : The Association’s Responsibility Have a Limited Useful Life Have a Remaining Expected Useful Life Have a Replacement Cost Above $2,500 Broken Down by Property Class – External Building Components – Internal Building Components – Service Components – Site Components – Pool Components – Other Components

4. What Level of Detail we Talking? 145 page Document 95 Components Reviewed in the Reserve Study in 6 Property Classes Example of Component Detail – Balcony Railings

5. For All Components Estimated Quantity & Replacement Cost Component Condition, Useful Life, Age, and Replacement Years Images with Comments/Special Conditions Schedule of Replacement Cost over 30 year period

6. Non-Reserve Items are Classified as Items that are : Operating Budget Components – Items funded through operating budget – Items with replacement cost less than $2,500 Components Maintained by Others – Government, Utilities, Other Vendors Long Lived Components – Components that have Useful Life greater than 30 Years Unit Owner Resposibilities – Components in Their Individual Units

9. Fully Funded Reserve : Year 1 Reserve of $280,500 in Year 1 Annual increase at 2.9% for inflation No Projected Special Assessments in 30 Year Term Monthly Increase/Unit 2 BDRM - $121.53 3 BDRM - $127.93 STUDIO - $97.51

10. Fully Funded Reserve : Year 1

11. Stepped Funding 5 Year Plan Reserve of $66,164 in Year 1 Annual increase at $25-$30 for 5 years then 2.9% for inflation Projected Special Assessment Year 2 ($50,000) & Year 3 ($40,000) Monthly Increase/Unit 2 BDRM - $28.79 3 BDRM - $30.51 STUDIO - $23.62

12. Stepped Funding 5 Year Plan

13. Comparison of Reserve Funding Fully Funded Year 1 Reserve of $280,500 in Year 1 Annual increase at 2.9% for inflation No Projected Special Assessments in 30 Year Term Monthly Increase/Unit for Reserve Account – 2 BDRM - $121.53 – 3 BDRM - $127.93 – STUDIO - $97.51 Stepped Funded 5 Year Plan Reserve of $66,164 in Year 1 Annual increase at $25-$30 for 5 years then 2.9% for inflation Projected Special Assessment Year 2 ($50,000) & Year 3 ($40,000) Monthly Increase/Unit for Reserve Account – 2 BDRM - $28.79 – 3 BDRM - $30.51 – STUDIO - $23.62

14. 2016 Budget Comparison 2015 Budget 2016 BudgetVariance Insurance-for Common Areas, including Personal Property, Casualty & Liability 65,00084,00019,000 Utilities-Electric, Water & Sewer, Gas and Telephone525,000535,00010,000 Satellite Television40,00090,00050,000 Landscape & Grounds Maintenance77,00085,0008,000 Common Area Maintenance- deep cleaning, time and material70,000107,00037,000 Office, Postage & Annual Meetings1,6001,356(244) Common Equipment- Contract (Elevator)86,00090,0004,000 Security30,000 -0- Rubbish Removal32,00027,000(5,000) Parking Lot Maintenance, Repair (time and materials - including easement areas) 15,000 -0- Pool Supplies and Labor79,50090,00010,500 Reserve for Replacement- Common Areas15,00066,16451,164 Indoor Amenity Fee260,000 -0- Association Management Fee and Legal42,000 -0- FF&E Reserve Study (2015)6,200(6,200) Pest Remediation15,000 Total Association Expenses$1,344,300$1,537,536$193,236

15. 2016 Monthly Budget by Unit Type 3 Bedroom Doble 2 Bedroom GrandeStudio Insurance-for Common Areas, including Personal Property, Casualty & Liability 38.7336.5529.99 Utilities-Electric, Water & Sewer, Gas and Telephone 246.70232.78191.03 Satellite Television 41.5039.1632.14 Landscape & Grounds Maintenance 39.2036.9830.35 Common Area Maintenance- deep cleaning, time and material 49.3446.5638.21 Office, Postage & Annual Meetings 0.630.600.49 Common Equipment- Contract (Elevator) 41.5039.1632.14 Security 13.8313.0510.71 Rubbish Removal 12.4511.759.64 Parking Lot Maintenance, Repair (time and materials - including easement areas) 6.926.535.36 Pool Supplies and Labor 41.5039.1632.14 Reserve for Replacement- Common Areas 30.5128.7923.62 Indoor Amenity Fee 119.89113.1392.84 Association Management Fee and Legal 19.3718.2715.00 FF&E Reserve Study (2015) Pest Remediation 6.926.535.36 Total Association Expenses709669549

16. Budget Variances 2015 v. 2016 Reserve For Replacement – Common Areas $66,164 – Increase from previous set reserve amount in 2015 to the 7 Year Stepped funding of the Reserve Study recommendations. Satellite Television & Internet$90,000 – Installed Access Points in Individual Units, 3 year lease on equipment which includes all service, maintenance, and 24-hour support. – This breaks down to $12 per Key per Month. Common Area Maintenance$107,000 – General Increase based on the Operating Expenses of the Common Area. – Staying with the Reserve Study Recommendations can help limit future increases. If items aren’t replaced in their useful life, this may grow.

17. Major Contibuting Factors Pest Remediation$15,000 – The Association Board voted to add this budget line item. CVR Management and the Association are spliting the cost of treatments. Pool Supplies and Labor$90,000 – Increase in Costs of the Pool Supplies and More Labor necessary to Maintain the 10 Year Old Pools. This was based off 2015 Actuals. Utilities –Elec., Water/Sewer, Gas & Telephone$535,000 – City of Wisconsin Dells Utility Commission is expecting a 2-3% increase in Utilities pricing in 2016. – This budget is also effected by the number of “degree” days for both the Heating and Air Conditioning seasons.

18. 5 Year Plan Reserve Study Cashflow

19. Reserve Study Expenses Year 1-5 2016$31,791 Expense – Railings Refinishing $14,149 – Water Softening System $15,435 – Sports Area Paint/Repair $2,207 2017$187,460 Expense – Hallway Carpet Replacement (Phased) $86,560 – Paint/Stain Lobby/Hallways (Phased) $16,343 – Wall Coverings Replacement (Phased) $34,696 – Wavepool Waterfall Resurfacing $2,647 – Pool Resurfacing of Wavepool Pool Floor $28,536 ProTile Waterline $18,678 2018$188,168 Expense – Carpet Hallway/Lobby (Phased) $89,070 – Paint/Stain Lobby/Hallways (Phased) $16,817 – Wall Coverings Replacement (Phased) $35,702 – Pool Resurfacing of Activity/Kiddie River Pool Floors $41,021 – Update Reserve Study $5,557

20. Reserve Study Expenses Year 1-5 (cont.) 2019 $215,080 Expenses – Balconies/Railings Refinishing $26,176 – Carpet Hallway/Lobby (Phased) $91,654 – Lobby Furnishings $16,414 – Paint/Stain Lobby/Hallways (Phased) $17,305 – Wall Coverings Replacement (Phased) $36,737 – Landscaping $8,409 – Pool Heaters Activity/Kiddie River $9,193 WavePool $9193 2020$96,154 Expense – Luggage Carts $5,001 – Wave Pool Audio System $1,661 – Water Heater Wavepool Bath House $9,229 – Concrete Sidewalk/Patio Replacement (Partial) $ 31,477 – Pool Furniture Wave Pool $34,644

21. Review 2016 Chula Vista Condominium Unit Owners Association Budget handout

22. Review 2015 Manager’s Report Mike Kaminski