1. St James Reserve Fund Study Presented at POA Informational Meeting 1 September 2011 Presented by: Jerry Iverson

2. STJAMES RESERVE FUND STUDY Chartered by John Jacobson in late March Selected membership from: Finance Committee –Jerry Iverson –Jeff Toner –Corolyn Foster Infrastructure Committee –Chuck Elledge –Bob Hasselbauer –Tom Seery

3. RESERVE FUND STUDY OBJECTIVES Identify all real property assets owned by POA –Roads, bridges, parks, buildings, etc. Identify all possible costs to replace, repair, or refurbish these assets –Period of Study – 30 Years –Time phased approach, cost allocated by year Determine annual funding required to build a Reserve Fund to cover all out-year costs –Sufficient reserve to fund unknowns –Avoid Special Assessments

4. STUDY APPROACH Developed Reserve Fund Model, Terms of Reference, General Guidelines & Useful Life Guidance Starting Point: Infrastructure Committee Asset List –Eliminated items on Asset List that did not meet criteria Items less than $3,000 in cost to replace or repair Items covered in any current contract Recurring annual costs that are covered in operating budget Allocated all items to one of 10 Categories Assigned committee member responsible for each category –Costs developed for each item and planned year of cost –Based on history, engineering judgment, quotes Run Model to evaluate costs, revenue flow, and Reserve Fund Balance for period (2012-2041)

5. COSTS BY CATEGORY CATEGORY 30 YEAR LC COSTS % OF TOTAL ROADWAYS$9,600,00071% STORM WATER SYSTEM$1,469,00011% BRIDGES$730,0005% BEACH CLUB$510,0004% BUILDINGS$369,0003% WOODLANDS PARK$325,0002% Formula driven costs rounded to $1000

6. COSTS BY CATEGORY CATEGORY30 YEAR LC COSTS % OF TOTAL WALKWAYS$174,0002% WATER FEATURES$134,0001% WATERWAY PARK$106, 00<1% MISCELLANEOUS$82,000<1% NOTE: Does not include 2011 costs or Final 2012 Budget Data 30 YEAR TOTAL$13,499,000100% Formula driven costs rounded to $1000

7. COSTS Peak Year – 2016 - $1,118,385 –Polly Gully Bridge$600,000 –Micro Surface 7.5 miles$320,000 –Replace CMP$146,925 –New Walkway$ 28,000 –Re-pave BC Parking Lot$ 23,460 Average Cost/Yr 2012-2021 - $595K Average Cost/Yr 2022-2031 - $388K Average Cost/Yr 2022-2031 - $366K

8. SOURCES OF REVENUE Annual Planned Deposits (POA Dues) –$600K-$800K (Budget Years 2009-2011) Revenue –Road Impact Fees: $75K-$180K (2009-2011) –Interest: $18K-$25K (2009-2011) Transfers –Budget Surplus / Shortage Projected $292K Surplus in 2011 –Special Allocation by Board (Polly Gully Bridge)