Re: Reserve Study Redux...
From: Mac Thomson (macheartwoodcohousing.com)
Date: Tue, 29 Aug 2006 07:14:55 -0700 (PDT)
On Aug 25, 2006, Lyle Scheer wrote:
Anyone with a spreadsheet that calculates
amount needed to reserve based upon an item's life, current price,
interest rate, etc?  That would be ideal.


I've got a pretty detailed Excel spreadsheet I put together for our community that I'm happy to share. I've tried attaching it to this post, but if I remember correctly, the list is not going to let it go through. In any case, if you don't get it, send me a personal email and I'll send you the spreadsheet privately.

The spreadsheet calculates a simple yearly funding needed given the details of our replacement costs and asset life cycles. (These items will of course vary for every community, but the spreadsheet formulas should work just fine with different data inserted.) The spreadsheet also calculates the total reserves balance for 137 years given various interest earned on the invested balance. (Don't ask me why I took it to 137 years and not 125 or 150. Basically, it's a long enough time period to see if the amount of funding we're putting in today creates a long term, sustainable balance given various assumptions: replacement costs, life cycles, investment interest earned.)

Cheers,
Mac



--
Mac Thomson

Heartwood Cohousing
Southwest Colorado
http://www.heartwoodcohousing.com


"A person who is nice to you, but rude to the waiter, is not a nice person."
     - Dave Barry
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