We recently engaged Advanced Reserve Solutions, a consulting company specializing in condo financials, to assess the ability of our current financial reserves to meet our future capital demands.
Overall, we received high marks for our state of repair, our commitment to maintenance and our financial position. The study concluded that our biggest single expense for the next decade will most likely be paving our roads and parking areas. While our current patch/repair strategy should suffice for several more years, at some point we may have to look hard at the paving of selected parking areas and/or sections of roads. Depending on timing and technology, the estimated cost to repave all of our roads and parking areas is in the $700K to $1MM range. While we may be able to defer or reduce that eventual cost, it does stress the importance for us to continue to grow our reserves.
The study also identified other potential capital needs, mostly pertaining to our clubhouse and swimming pool. However all of those costs were considered both manageable and not urgent. -Lincoln May