Rural / Acreage Services
Reserve fund studies are a natural fit for EXCEL as a result of our many years of hands on experience in the building construction and inspection industries. It enables us to provide professional advice on maintaining a properly balanced reserve fund. We focus primarily on residential buildings (up to 4 stories) and business condominiums in the province of Alberta, where we have completed hundreds of studies. Whether you are in need of a first time reserve fund study or need to have an existing one updated, we at EXCEL will be pleased to provide quality and efficient service with competitive rates anywhere in Alberta. Contact our office for more information or to arrange for a study to be completed.
A reserve fund study is a financial plan to determine the amount of money needed to be accumulated by the condominium corporation for major repair, upgrading or replacement of common area property as defined in the corporation’s by-laws. In its most common form, a reserve fund study covers a 25 year period and, by law in Alberta, must be updated
every 5 years. These updates are necessary because components deteriorate at various rates and the finances of the corporation change over time. Expenditures that occur annually, such as routine maintenance (lawn service, snow removal) are to be accounted for in an annual operating budget.
The following process is included as part of a reserve fund study:
•Site visit to assess the general condition of the common property and calculate the area of each component. This includes review of any building plans and specifications that are available.
•Financial calculations and scenarios to determine the contributions necessary in the reserve fund to cover expenditures when they are estimated to occur, with adjustments for assumed inflation.
•Written report describing common area components, their general condition including expected life, effective age and expected remaining life. The written report also includes explanation of the financial portion of the reserve fund study.