Depreciation Report Discussion LMS 2166 - Waterside 2013/2014 Annual General Meeting December 3, 2013

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

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

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

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

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

Major Findings Year 2 $ 75,000 Balcony waterproofing membrane $ 10,000 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

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 $ 5,000 Landscaping $ 15,000 Enter phone replacement $ 3,500 Seismic safety valves (optional) $ 23,500

Bar Graph

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

Current Contributions

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

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

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.

Questions?

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