Based on Full Occupancy, In 1988 Dollars
| ASSESSMENT INCOME (NOTE 1) | $674,700 | |
|---|---|---|
| EXPENSES: | ||
| Salaries (Note 2) | $52,000 | |
| Repairs, maintenance & supplies (Note 3) | $51,000 | |
| Utilities (Note 4) | $51,000 | |
| Landscaping | $65,000 | |
| Management fees (Note 5) | $63,000 | |
| Insurance (Note 6) | $100,000 | |
| Garbage Removal (Note 7) | $51,000 | |
| Snow removal - roads | $35,000 | |
| Fire hydrant fee (Note 8) | $14,000 | |
| Professional fees (Note 9) | $10,000 | |
| Payroll taxes (Note 2) | $6,000 | |
| Office expense | $12,000 | |
| Reserve for replacement of common elements & facilities (Note 10) | $183,700 | |
| $674,700 |
The foregoing unaudited figures are based upon assumptions, estimates and other information submitted by the organizers - see accompanying letter.
Notes to Estimated Operating Budget
Unaudited - see accompanying letter
Note 1: Assessment Income
Assessment Income is based on full occupancy of the 527 units. Allocation by model type is based on ownership percentage, after a 50% reduction in amounts allocated to the low and modrate income units, as follows:
| Assessment | Per Unit - Monthly | ||||||
|---|---|---|---|---|---|---|---|
| Model Type | Units | Total | Reserve | Other | Total | Reserve | Other |
| Townhouse | 288 | $446,476 | $121,562 | $324,914 | $129.19 | $35.17 | $94.02 |
| Twin | 54 | $107,079 | $29,155 | $77,924 | $165.25 | $44.99 | $120.26 |
| Condo Flat (Market): | |||||||
| 2 bedroom | 26 | $27,856 | $7,584 | $20,272 | $89.28 | $34.31 | $64.97 |
| 1 bedroom | 52 | $48,403 | $13,179 | $35,224 | $77.57 | $21.12 | $56.45 |
| Low & Moderate Income Units: | |||||||
| 3 BR, Mod | 6 | $3,137 | $854 | $2,283 | $43.57 | $11.86 | $31.71 |
| 3 BR, Low | 6 | $3,036 | $826 | $2,210 | $42.17 | $11.47 | $30.70 |
| 2 BR, Mod | 16 | $7,253 | $1,975 | $5,278 | $37.78 | $10.28 | $27.50 |
| 2 BR, Low | 16 | $6,679 | $1,819 | $4,860 | $34.79 | $9.47 | $25.32 |
| 1 BR, Mod type A | 6 | $2,463 | $670 | $1,793 | $34.21 | $9.31 | $24.90 |
| 1 BR, Mod type B | 32 | $11,638 | $3,169 | $8,469 | $30.31 | $8.25 | $22.06 |
| 1 BR, Low | 12 | $4,487 | $1,221 | $3,266 | $31.16 | $8.48 | $22.68 |
| Efficiency - Low | 12 | $3,947 | $1,075 | $2,872 | $27.41 | $7.47 | $19.94 |
| Single Family | 1 | $2,246 | $611 | $1,635 | $187.17 | $50.92 | $136.25 |
| 527 | $674,700 | $183,700 | $497,000 | ||||
In addition to assessment fees, each unit owner is responsible for paying sewer tax of approximately $225 per year and real estate taxes as assessed by the township.
Note 2: Salaries
Salaries are based on one maintenance person for $25,000, one laborer for $17,000 and two lifegaurds (one full-time and one part-time) for a total of $10,000. Payroll taxes have been estimated at 12% or $6,000. No provision has been made for guard service upon full occupancy.
Note 3: Repairs, Maintenance and Supplies
Repairs, Maintenance and Supplies have been estimated at the following annual rates:
| Pool | $7,000 |
| Clubhouse | $2,500 |
| Tennis Courts | $2,000 |
| Sprinkler System | $2,000 |
| Retention basin | $5,000 |
| Road Repairs | $7,500 |
| Common areas and General | $25,000 |
| $51,000 |
Note 4: Utilities
Utilities include gas, electric, water, certain sewer charges and telephone, and have been estimated as follows:
| Pool | $8,000 |
| Clubhouse | $4,000 |
| Sprinkler System | $11,000 |
| Common areas and lighting | $24,500 |
| Laundry Unit | $4,000 |
| $51,000 |
Note 5: Management Fee
It is assumed that Cedars Management Company, Inc. (a proposed corporation of the sponsor) will be hired for $63,000. ($10 per unit per month)
Note 6: Insurance
Insurance expense is based upon a quotation obtained from an insurance agency.
Note 7: Garbage Removal
Garbage removal has been estimated at $5 per unit per month.
Note 8: Fire Hydrant Fee
Fire Hydrant Fee has been estimated at $62 per hydrant per month for each of the 19 hydrants on site.
Note 9: Professional Fees
Professional Fees have been estimated at $10,000 for the year and consist of legal fees and accounting services.
Note 10: Reserve for Replacement of Common Elements and Facilities:
It is assumed that upon closing, each unit owner will be assessed $200 which will be allocated to the Reserve for Replacement of Common Elements and Facilities (The Reserve). The Reserve has been estimated as follows:
| Required | Total | Per annum | |
|---|---|---|---|
| Replacement of building roofs | 15 yrs. | $263,000 | $17,500 |
| Replacement of siding | 25 yrs. | $800,000 | $32,000 |
| Resurface roads, parking areas, sidewalks, replace curbing |
35 yrs. | $2,500,000 | $71,500 |
| Pool replacement | 12 yrs. | $60,000 | $5,000 |
| Exterior painting | 10 yrs. | $400,000 | $40,000 |
| Replacement of guardhouses | 40 yrs. | $16,000 | $400 |
| Replacement of sprinkler system | 15 yrs. | $100,000 | $6,700 |
| Resurface tennis courts | 10 yrs. | $80,000 | $8,000 |
| Clubhouse | |||
| Replacement of building | 40 yrs. | $50,000 | $1,250 |
| Replacement of roof | 15 yrs. | $8,000 | $500 |
| Furnishings and equipment | 8 yrs. | $30,000 | $3,750 |
| Replacement of sauna | 10 yrs. | $5,000 | $500 |
| Painting | 5 yrs. | $4,000 | $800 |
| Less: Initial contributions of $105,400 ($200 per unit) to the Reserve (equates to $4,200 per annum) |
- $4,200 | ||
| $183,700 | |||
It is assumed that laundry income will offset cost of replacing laundering equipment.
