*** A new Reserve Fund Study was made in 2011 ***
This report is old!
Notice of Future Funding of the Reserve Fund
(Under subsection 94(9) of the Condominium Act, 1998)
- 2008
- October 2004
- March 2004
Important: These numbers correspond to the new draft of the study submitted by Brown and Beattie to the board.
Reserve Fund Study
#of Units: 271
Special Assessment: $0 Mar - 2008
Fiscal Year End: 30-Jun
Min. Balance: $100, 000
Opening Bal.: $575, 820 (as of June 30, 2008)
Present Contribution: $ 132,000 (Average Contribution/unit/month: $40.59)
Short Term (3 yr.) Interest: 4.00%
Long Term Interest: 4.00%
Assumed Inflation: 2.00%
Initial Contribution Increase: 30.40%
Subsequent Contribution Increase: 2.00%
The average contribution per unit per month to the reserve fund in the 2008 fiscal year was: $ 40.59
Based on the proposed funding plan, the average increase in contribution per unit per month will be:
- $ 5.20 in 2009
- $ 5.86 in 2010
- $ 6.64 in 2011
Cash Flow Summary / Contribution Schedule / Funding Plan
| Year Ending June 30 |
Expected Costs | Interest | Yearly Contribution |
Average unit/month |
Balance | % Increase |
|---|---|---|---|---|---|---|
| 2008 | *** | *** | $132,000 | $40.59 | $ 575, 820 | - |
| 2009 | -$19,380 | $23,033 | $148,896 | $45.79 | $728,369 | 12.80% |
| 2010 | -$327,726 | $29,135 | $167,955 | $51.65 | $598 | 12.80% |
| 2011 | -$9,020 | $23,909 | $189,453 | $58.26 | $802,074 | 12.80% |
| 2012 | -$5,737 | $32,083 | $214 | $65.71 | $1,042,123 | 12.80% |
| 2013 | -$64,699 | $41,685 | $241,057 | $74.13 | $1,260,166 | 12.80% |
| 2014 | -$23,312 | $50,407 | $245,878 | $75.61 | $1,533,139 | 2.00% |
| 2015 | -$506,226 | $61,326 | $250,796 | $77.12 | $1,339,034 | 2.00% |
| 2016 | -$6,210 | $53,561 | $255,811 | $78.66 | $1,642,197 | 2.00% |
| 2017 | -$10,158 | $65,688 | $260,928 | $80.24 | $1,958,654 | 2.00% |
| 2018 | -$392,882 | $78,346 | $266,146 | $81.84 | $1,910,265 | 2.00% |
| 2019 | -$17,780 | $76,411 | $271,469 | $83.48 | $2,240,364 | 2.00% |
| 2020 | -$52,886 | $89,615 | $276,899 | $85.15 | $2,553,992 | 2.00% |
| 2021 | -$6,856 | $102,160 | $282,436 | $86.85 | $2,931,732 | 2.00% |
| 2022 | -$119,149 | $117,269 | $288,085 | $88.59 | $3,217,937 | 2.00% |
| 2023 | -$674,818 | $128,717 | $293,847 | $90.36 | $2,965,683 | 2.00% |
| 2024 | -$37,477 | $118,627 | $299,724 | $92.17 | $3,346,557 | 2.00% |
| 2025 | -$85,835 | $133,862 | $305,718 | $94.01 | $3,700,303 | 2.00% |
| 2026 | -$35,278 | $148,012 | $311,833 | $95.89 | $4,124,870 | 2.00% |
| 2027 | -$784,784 | $164,995 | $318,069 | $97.81 | $3,823,150 | 2.00% |
| 2028 | -$1,039,272 | $152,926 | $324,431 | $99.76 | $3,261,236 | 2.00% |
| 2029 | -$241,749 | $130,449 | $330,919 | $101.76 | $3,480,856 | 2.00% |
| 2030 | -$515,275 | $139,234 | $337,538 | $103.79 | $3,442,352 | 2.00% |
| 2031 | -$64,337 | $137,694 | $344,289 | $105.87 | $3,859,998 | 2.00% |
| 2032 | -$507,784 | $154,400 | $351,174 | $107.99 | $3,857,788 | 2.00% |
| 2033 | -$1,237,509 | $154,312 | $358,198 | $110.15 | $3,132,788 | 2.00% |
| 2034 | -$261,555 | $125,312 | $365,362 | $112.35 | $3,361,906 | 2.00% |
| 2035 | -$36,698 | $134,476 | $372,669 | $114.60 | $3,832,353 | 2.00% |
| 2036 | -$31,861 | $153,294 | $380,122 | $116.89 | $4,333,909 | 2.00% |
| 2037 | -$32,498 | $173,356 | $387,725 | $119.23 | $4,862,492 | 2.00% |
| 2038 | -$1,108,010 | $194,500 | $395,479 | $121.61 | $4,344,461 | 2.00% |
| 2039 | -$1,134,789 | $173,778 | $403,389 | $124.04 | $3,786,840 | 2.00% |
| 2040 | -$172,059 | $151,474 | $411,457 | $126.52 | $4,177,711 | 2.00% |
| 2041 | -$41,328 | $167,108 | $419,686 | $129.05 | $4,723,178 | 2.00% |
| 2042 | -$202,538 | $188,927 | $428,079 | $131.64 | $5,137,646 | 2.00% |
| 2043 | -$2,017,489 | $205,506 | $436,641 | $134.27 | $3,762,305 | 2.00% |
| 2044 | -$331,890 | $150,492 | $445,374 | $136.95 | $4,026,281 | 2.00% |
| 2045 | -$38,077 | $161,051 | $454,281 | $139.69 | $4,603,537 | 2.00% |
| 2046 | -$38,838 | $184,141 | $463,367 | $142.49 | $5,212,208 | 2.00% |
| 2047 | -$95,249 | $208,488 | $472,634 | $145.34 | $5,798,081 | 2.00% |
| 2048 | -$2,268,319 | $231,923 | $482,087 | $148.24 | $4,243,773 | 2.00% |
| 2049 | -$352,019 | $169,751 | $491,729 | $151.21 | $4,553,233 | 2.00% |
| 2050 | -$780,374 | $182,129 | $501,563 | $154.23 | $4,456,552 | 2.00% |
| 2051 | -$1,063,105 | $178,262 | $511,595 | $157.32 | $4,083,304 | 2.00% |
| 2052 | -$43,738 | $163,332 | $521,826 | $160.46 | $4,724,724 | 2.00% |
| 2053 | -$1,914,203 | $188,989 | $532,263 | $163.67 | $3,531,773 | 2.00% |
| 2054 | -$3,968,134 | $141,271 | $542,908 | $166.95 | $247,818 | 2.00% |
| 2055 | -$193,523 | $9,913 | $553,766 | $170.28 | $617,974 | 2.00% |
| 2056 | -$44,498 | $24,719 | $564,842 | $173.69 | $1,163,037 | 2.00% |
| 2057 | -$1,020,692 | $46,521 | $576,139 | $177.16 | $765,005 | 2.00% |
According to this study 2054 is the first critical year
TO: All Owners in TSCC #1431 - May Tower II
The Board has received and reviewed an Updated Study Not Based on a Site Visit dated September 24, 2004, prepared by Halsall Associates Limited, and has proposed a plan for the future funding of the reserve fund that the Board has determined will ensure that, in accordance with the regulations made under the Condominium Act, 1998, the reserve fund will be adequate for the major repair and replacement of the common elements and assets of the Corporation.
This notice contains:
- A summary of the reserve fund study.
- A summary of the proposed funding plan.
- A statement indicating the areas, if any, in which the proposed funding plan differs from the reserve fund study.
The average contribution per unit per month to the reserve fund in the 2004 fiscal year was: $ 29.34
Based on the proposed funding plan, the average increase in contribution per unit per month will be:
- $ 2.35 in 2005
- $ 2.79 in 2006
- $ 3.04 in 2007
(State the amount of the increase, for each of the three fiscal years following the year in which the reserve fund study was completed. If the contribution is to be increased in the fiscal year in which the reserve fund is completed, also state the amount of that increase.)
The proposed funding plan will be implemented beginning on July 1, 2004
(set out the date of day that is more than 30 days after the day on which this notice is sent to the owners.)
Dated this 4th of October, 2004
TSCC #1431 - May Tower ii
(signatures)Nain Sin Yi
Name removed by request(two others)
Summary of Reserve Fund Study
The following is a summary of the Updated Study Not Based an a Site inspection dated September 24, 2004, prepared by Halsall Associates Limited for:
TSCC #1431 - May Tower II
Subsection 94 (1) of the Condominium Act, 7998, requires the Corporation to conduct periodic studies to determine whether the amount of money in the reserve fund and the amount of contributions collected by the Corporation are adequate to provide for the expected costs of major repair and replacement of the common elements and assets of the Corporation. As a result, this Corporation has obtained this Reserve Fund Study.
The estimated expenditure from the reserve fund for the next thirty (30) years are set out in the CASH FLOW TABLE. In this summary, the term “annual contribution” means the total amount to be contributed each year to the reserve fund, exclusive of interest earned on the reserve fund.
The recommended annual contribution for the fiscal year ending on June 30, 2005 is below:
$103, 044 – Contribution for year ending June 30, 2005
This annual contribution is based on the estimated expenditures and the following:
- Opening Balance of the Reserve Fund: $ 209,776
- Minimum Reserve Fund Balance during the Projected Period: $ 321,211
- Assumed Annual Inflation Rate for Reserve Fund Expenditures: 1.0%
- Assumed Annual Interest Rate for interest earned on the Reserve Fund: 4.0%
The Reserve Fund Study can be examined by submitting a written request to the Property Manager (as per Section 65 (3) of the Condominium Act 1988).
CASH FLOW TABLE
Run 2 - Phased Increase In Contribution
Opening Balance of the Reserve Fund: $ 209,776
Minimum Reserve Fund Balance (as indicated in this table): $ 321,211
Assumed Annual Inflation Rate for Reserve Fund Expenditures: 1.0%
Assumed Annual Interest Rate for interest earned on the Reserve Fund: 4.0%
| Year | Opening Balance |
Recommended Annual Contributions |
Estimated Inflation Adjusted Expenditures |
Estimated Interest Earned | Percentage Increase in Recommended Annual Contribution | Closing Balance |
|---|---|---|---|---|---|---|
| 2005 | $209,776 | $103,044 | - | $8,391 | 8.0% | $321,211 |
| 2006 | $321,211 | $112,125 | $3,060 | $15,030 | 8.8% | $445,305 |
| 2007 | $445,305 | $122,005 | $15,455 | $19,943 | 8.8% | $571,799 |
| 2008 | $571,799 | $132,757 | $8,325 | $25,361 | 8.8% | $721,592 |
| 2009 | $721,592 | $144,456 | $6,306 | $31,627 | 8.8% | $891,369 |
| 2010 | $891,369 | $157,186 | - | $38,798 | 8.8% | $1,087,353 |
| 2011 | $1,087,353 | $171,038 | - | $46,915 | 8.8% | $1,305,306 |
| 2012 | $1,305,306 | $186,110 | $73,634 | $54,462 | 8.8% | $1,472,244 |
| 2013 | $1,472,244 | $202,511 | $202,332 | $58,893 | 8.8% | $1,531,317 |
| 2014 | $1,531,317 | $204,536 | $443,506 | $56,473 | 1.0% | $1,348,821 |
| 2015 | $1,348,821 | $206,582 | $12,272 | $57,839 | 1.0% | $1,600,969 |
| 2016 | $1,600,969 | $208,647 | $5,634 | $68,099 | 1.0% | $1,872,081 |
| 2017 | $1,872,081 | $210,734 | $391,504 | $71,268 | 1.0% | $1,762,579 |
| 2018 | $1,762,579 | $212,841 | $19,392 | $74,392 | 1.0% | $2,031,421 |
| 2019 | $2,031,421 | $214,970 | $5,805 | $85,440 | 1.0% | $2,326,026 |
| 2020 | $2,326,026 | $217,119 | $5,863 | $97,266 | 1.0% | $2,634,549 |
| 2021 | $2,634,549 | $219,291 | $13,027 | $109,507 | 1.0% | $2,950,319 |
| 2022 | $2,950,319 | $221,483 | $767,448 | $107,093 | 1.0% | $2,511,448 |
| 2023 | $2,511,448 | $223,698 | $30,203 | $104,328 | 1.0% | $2,809,271 |
| 2024 | $2,809,271 | $225,935 | $73,211 | $115,425 | 1.0% | $3,007,420 |
| 2025 | $3,007,420 | $228,195 | $20,951 | $127,242 | 1.0% | $3,411,906 |
| 2026 | $3,411,906 | $230,477 | $614,267 | $128,800 | 1.0% | $3,156,916 |
| 2027 | $3,156,916 | $232,781 | $104,931 | $110,114 | 1.0% | $2,458,880 |
| 2028 | $2,458,880 | $235,109 | $186,016 | $99,337 | 1.0% | $2,607,310 |
| 2029 | $2,607,310 | $237,460 | $21,801 | $108,606 | 1.0% | $2,931,574 |
| 2030 | $2,931,574 | $239,835 | $51,810 | $121,023 | 1.0% | $3,240,623 |
| 2031 | $3,240,623 | $242,233 | $52,328 | $133,423 | 1.0% | $3,563,950 |
| 2032 | $3,563,950 | $244,656 | $827,789 | $130,895 | 1.0% | $3,111,713 |
| 2033 | $3,111,713 | $247,102 | $443,047 | $120,750 | 1.0% | $3,046,518 |
| 2034 | $3,046,518 | $249,573 | $22,913 | $126,394 | 1.0% | $3,399,571 |
Note: This 30 year cash flow table is based on 60 years of repair and replacement data
TO: All Owners in TSCC #1431 - May Tower II
The Board has received and reviewed an Updated Study Not Based on a Site Visit dated January 26, 2004, prepared by Halsall Associates Limited, and has proposed a plan for the future funding of the reserve fund that the Board has determined will ensure that, in accordance with the regulations made under the Condominium Act, 1998, the reserve fund will be adequate for the major repair and replacement of the common elements and assets of the Corporation.
This notice contains:
- A summary of the reserve fund study.
- A summary of the proposed funding plan.
At the present time the average contribution per unit per month to the reserve fund is: $ 29.34
Based on the proposed funding plan, the average increase in contribution per unit per month will be:
- $ 2.35 in 2005
- $ 2.54 in 2006
- $ 3.08 in 2007
(State the amount of the increase, for each of the three fiscal years following the year in which the reserve fund study was completed. If the contribution is to be increased in the fiscal year in which the reserve fund is completed, also state the amount of that increase.)
The proposed funding plan will be implemented beginning on July 1, 2004
(set out the date of day that is more than 30 days after the day on which this notice is sent to the owners.)
Dated this March 12, 2004
TSCC #1431 - May Tower II
(signatures)Nain Sin Yi
Bedi Ravinder(one other)
Summary of Reserve Fund Study
The following is a summary of the Updated Study Not Based an a Site inspection dated September 24, 2004, prepared by Halsall Associates Limited for:
TSCC #1431 - May Tower II
Subsection 94 (1) of the Condominium Act, 7998, requires the Corporation to conduct periodic studies to determine whether the amount of money in the reserve fund and the amount of contributions collected by the Corporation are adequate to provide for the expected costs of major repair and replacement of the common elements and assets of the Corporation. As a result, this Corporation has obtained this Reserve Fund Study.
The estimated expenditure from the reserve fund for the next thirty (30) years are set out in the CASH FLOW TABLE. In this summary, the term “annual contribution” means the total amount to be contributed each year to the reserve fund, exclusive of interest earned on the reserve fund.
The recommended annual contribution for the fiscal year ending on June 30, 2005 is below:
$128, 806 – Contribution for year ending June 30, 2005
This annual contribution is based on the estimated expenditures and the following:
- Opening Balance of the Reserve Fund: $ 128,500
- Minimum Reserve Fund Balance during the Projected Period: $ 262,446
- Assumed Annual Inflation Rate for Reserve Fund Expenditures: 1.0%
- Assumed Annual Interest Rate for interest earned on the Reserve Fund: 4.0%
The Reserve Fund Study can be examined by submitting a written request to the Property Manager (as per Section 55 (3) of the Condominium Act 1988).
CASH FLOW TABLE (RUN 2)
Opening Balance of the Reserve Fund: $ 128,500
Minimum Reserve Fund Balance (as indicated in this table): $ 262,446
Assumed Annual Inflation Rate for Reserve Fund Expenditures: 1.0%
Assumed Annual Interest Rate for interest earned on the Reserve Fund: 4.0%
| Year | Opening Balance |
Recommended Annual Contributions |
Estimated Inflation Adjusted Expenditures |
Estimated Interest Earned | Percentage Increase in Recommended Annual Contribution | Closing Balance |
|---|---|---|---|---|---|---|
| 2005 | $128,500 | $128,806 | - | $5,140 | 35.0% | $262,446 |
| 2006 | $262,446 | $111,289 | $3,060 | $12,662 | -13.6% | $383,337 |
| 2007 | $383,337 | $121,305 | $15,455 | $17,450 | 9.0% | $506,638 |
| 2008 | $506,638 | $132,222 | $8,325 | $22,743 | 9.0% | $653,279 |
| 2009 | $653,279 | $144,122 | $6,306 | $28,887 | 9.0% | $819,982 |
| 2010 | $819,982 | $161,692 | - | $36,033 | 12.2% | $1,017,707 |
| 2011 | $1,017,707 | $181,404 | $42,885 | $43,479 | 12.2% | $1,199,705 |
| 2012 | $1,199,705 | $203,520 | $106,120 | $49,936 | 12.2% | $1,347,041 |
| 2013 | $1,347,041 | $228,331 | $240,611 | $53,636 | 12.2% | $1,388,397 |
| 2014 | $1,388,397 | $256,167 | $443,506 | $51,789 | 12.2% | $1,252,847 |
| 2015 | $1,252,847 | $258,729 | $12,272 | $55,043 | 1.0% | $1,554,346 |
| 2016 | $1,554,346 | $261,316 | $5,634 | $67,287 | 1.0% | $1,877,316 |
| 2017 | $1,877,316 | $263,929 | $448,409 | $71,403 | 1.0% | $1,764,239 |
| 2018 | $1,764,239 | $266,568 | $52,876 | $74,843 | 1.0% | $2,052,775 |
| 2019 | $2,052,775 | $269,234 | $5,805 | $87,380 | 1.0% | $2,403,584 |
| 2020 | $2,403,584 | $271,926 | $5,863 | $101,465 | 1.0% | $2,771,112 |
| 2021 | $2,771,112 | $274,646 | $13,027 | $116,077 | 1.0% | $3,148,808 |
| 2022 | $3,148,808 | $277,392 | $803,333 | $115,433 | 1.0% | $2,738,301 |
| 2023 | $2,738,301 | $280,166 | $66,446 | $113,806 | 1.0% | $3,065,827 |
| 2024 | $3,065,827 | $282,698 | $73,211 | $126,828 | 1.0% | $3,402,412 |
| 2025 | $3,402,412 | $285,797 | $20,951 | $141,393 | 1.0% | $3,808,652 |
| 2026 | $3,808,652 | $288,655 | $614,267 | $145,834 | 1.0% | $3,628,874 |
| 2027 | $3,628,874 | $291,542 | $1,683,341 | $117,319 | 1.0% | $2,354,394 |
| 2028 | $2,354,394 | $294,457 | $224,108 | $95,583 | 1.0% | $2,520,326 |
| 2029 | $2,520,326 | $297,402 | $21,801 | $106,325 | 1.0% | $2,902,251 |
| 2030 | $2,902,251 | $300,376 | $51,810 | $121,061 | 1.0% | $3,271,878 |
| 2031 | $3,271,878 | $303,380 | $22,240 | $136,498 | 1.0% | $3,689,517 |
| 2032 | $3,689,517 | $306,414 | $1,215,191 | $129,405 | 1.0% | $2,910,144 |
| 2033 | $2,910,144 | $309,487 | $473,082 | $113,134 | 1.0% | $2,859,674 |
| 2034 | $2,859,674 | $312,572 | $22,913 | $120,180 | 1.0% | $3,269,513 |
Note: This 30 year cash flow table is based on 60 years of repair and replacement data. I understand that this table was the first draft; the board eventually opted for the contributions dated October 2004 for the period 2005-2008