07.12.2017

Joel Tax

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Reserve Study Presentation: The Fully Funded Balance Joel L. Tax, RS PRA Reserve Specialist https://www.reservedataanalyst.com

2. Presentation Topics

3. What is the Fully Funded Balance (FFB)?

4. Fully Funded Balance: The Formula Example: Paint Project Costs: $100,000 Age of Paint: 1 years Paint Useful Life: 10 years

5. Allocating 100% of the Fully Funded Balance In 10 Years a Paint Project: $100,000.* *Interest and inflation omitted for simplicity Fully Funded Balance = on track. ReserveAccountBalance

6. Allocating 50% of the Fully Funded Balance In 10 Years a Paint Project: $100,000.* *Interest and inflation omitted for simplicity They are @ 50% Funded = Shortfall ReserveAccountBalance

7. Fully Funded Balance: Many Components Fully Funded Balance Total Component Costs

8. Risk of Being Underfunded K S I R Higher Risk Of: •Cash Flow Issues •Deferred Maintenance •Marketability & Aesthetic Appeal Issues

9. Considerations for the Fully Funded Balance

10. Do you have any questions? ??? Joel L. Tax, RS PRA Reserve Specialist

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**Additional Resources**: Percent Funded in a Reseve Study