A reserve study is a report completed by a 3rd party auditor which reviews our community’s assets, then forecasts expenses based on the expected usable life of those assets. While we may be a small community, we have quite a few areas and facilities for which we need to periodically maintain and potentially replace. Some of these items include: the Hidden Ridge II entrance sign, trees and other long term landscaping in our common areas, the wood and chain link fences in the neighborhood, several of the rock retaining walls, our detention ponds, and even our mailboxes.
Per the State of Washington, we’re required to have a reserve study completed on an annual basis – every 3 years, a full reserve study with an onsite visit from an auditor, and in between the onsite visit, the study needs to be reviewed and updated based on changes in estimated costs, expected lifespan or changes to the community in general.
The Results
Overall, we’re close to on track for where need to be as a community. Ongoing, we need to contribute more to our reserve fund so we have the proper funds to cover both the expected and unexpected expenses. In the 2020 budget, we have included a dedicated reserve contribution, and over the next few years, the Board of Directors plans to increase the reserves contribution until we’re following the recommendations of the 3rd party auditor.
If we don’t have enough funds in our reserves account, we run the risk of requiring a “special assessment” if we have an expense for which we don’t have the savings to cover. The Board of Directors wants to ensure that our neighborhood continues to be maintained to a high standard as part of normal business, with no special assessments required.
The Report
A copy of the Reserve Study is available to any community member that requests it. If you’d like a PDF copy, please reach out to the Board of Directors and request your copy.