1. Surfside III Financial and Capital Restoration Preliminary Discussion

2. Vision Recapitalize the association and restore all common elements. Stabilize the operational budget. Fund capital replacement projects with capital reserve funds going forward.

3. How Did We Get Here? Capital reserves inadequate for a long time. Point solutions used instead of comprehensive solutions. Reacting, not planning.

4. Difference 2,412,000 Budgeted Needed

5. Now What? Surfside III Investment Program Re-capitalize. Complete repairs in 2-3 years. Pay for it over 15 years. Build up capital reserves over the next 15 years. Stabilize operational budget.

6. From This Deficits

7. From ThisTo This DeficitsPositive cash flow

8. From ThisTo This Deficit Crisis management Positive cash flow

9. From ThisTo This Deficit Crisis management Positive cash flow Planned progress

10. From ThisTo This Deficit Crisis management Point solutions Positive cash flow Planned progress

11. From ThisTo This Deficit Crisis management Point solutions Positive cash flow Planned progress Comprehensive solutions

12. From ThisTo This Deficit Crisis management Point solutions Deferred maintenance Positive cash flow Planned progress Comprehensive solutions

13. From ThisTo This Deficit Crisis management Point solutions Deferred maintenance Positive cash flow Planned progress Comprehensive solutions Adequate funding

14. From ThisTo This Deficit Crisis management Point solutions Deferred maintenance Concern, apprehension Positive cash flow Planned progress Comprehensive solutions Adequate funding

15. From ThisTo This Deficit Crisis management Point solutions Deferred maintenance Concern, apprehension Positive cash flow Planned progress Comprehensive solutions Adequate funding Community

16. Recommendation Capital infusion allows us to start over. Restore major common elements to like new condition. Revise the capital reserve study. Establish capital reserve contribution amount. Begin reserving for the eventual replacement of common elements on a scheduled basis.

17. Contractor Quotes Paving – 250,000 Re Pipe – 1,900,000 Elevators – 650,000 Epoxy Water Pipes – 1,300,000 Mold Remediation – 1,500,000 Sub Total 5,600,000

18. Remember Information is preliminary No decisions made regarding contracts, consultants, engineering services. Final solution needs to be comprehensive, affordable, supported by the membership.