Protecting Desert Ridge’s physical assets is an important fiduciary responsibility we take very seriously.
Our association has hired a professional reserve study provider to conduct a reserve study for our association.
Association Reserves is engaged to perform an onsite reserve study for the upcoming 2023 fiscal year that will be reviewed and used by the Desert Ridge Community Association Finance Committee and Board of Directors during their 2023 budget planning process that will commence this summer.
Association Reserves is expected to have the reserve study completed in time for the finance committee and board to review and approve soon. Once the reserve study is approved by the board, it will also be available to the members.
A reserve study is a complex document that projects when numerous major components or assets of the Association—like the irrigation systems, walls/fencing, decomposed granite—will need to be repaired, replaced or serviced, what they will cost and how much we’ll need to set aside each year to pay for the various components at the necessary time. Preparing it requires a unique combination of specialized knowledge, a keen understanding of financial projecting and savvy investing skills.
Certain expensive common elements must be replaced every 5-10, 15, or 20 years.
Professional reserve study providers are extensively trained before they are considered qualified to perform competent reserve studies tailored for each community. These professionals have met stringent requirements and are held to high standards. They have a thorough knowledge of common interest developments, HOAs, and community associations, and can provide the board with sound guidance.
Part of preparing the budget includes calculating how much money the association must set aside each year, so we have the needed funds. To make sure we estimate as accurately as possible, we work closely with a reserve specialist.
The reserve specialist will prepare a study that will provide the board with guidance on how to keep our association’s physical assets from deteriorating faster than our financial assets increase.
The reserve specialist will visit the community to inspect it and prepare a written reserve study for the association. That report will include an inventory of all common area items, recommendations on what needs to be replaced and when, what the replacements will cost, and a plan for paying for them.
The reserve specialist chosen by the board has the expertise and experience to accurately determine the life cycles of our common components and will help the board estimate the cost to repair or replacement them.
The reserve specialist is also expert at analyzing the financial resources needed to maintain the common elements over time and will advise the board how to balance the size of the reserve fund against the deterioration of the common elements.
Since the community’s physical assets are constantly decaying, the guidance of a reserve specialist will help the board protect those assets and keep the community looking its best at all times—and that helps protect our property values!
The board takes its fiduciary responsibility very seriously—we want to be good stewards of your money. By hiring these professionals we’re confident we’ve done the right thing.
