Services

We complete Reserve Fund Study reports on the following types of buildings:

Bareland
Managed Bareland
Townhouses
Commercial
3-Storey Apartments
4-Storey Apartments
High Rises

We specialize in completing Reserve Fund studies on the following types of buildings:

Multi-use projects;
Phased developments; and
Phasing multiple components for phased construction project (typically 1 to 4 years).

In addition, we also specialize in preparing spreadsheets with loans incorporated, including illustration of blended annual contributions and additional contributions (special levies) to illustrate adequacy of Reserve Fund for remaining components not included in immediate project.

We complete Life Cycle Costing reports on the following types of buildings:

Social Housing
Commercial
Apartments
Churches
Public Works

Our deliverables include:

Reserve Fund Requirements

The Alberta Condominium Property Act mandates completion of a reserve fund study every 5 years. The Reserve Fund Report helps maintain the Condominium Corporation’s reserve fund which is utilized when there is a need for major repairs and/or replacement of the common property components. Wade KH provides a client-friendly report that is both informative and easy to understand.

A reserve fund report is a guide to assist a Board in establishing a reasonable amount of money to be collected from the owners to maintain and replace common property components.

A reserve fund report is not a technical audit of the buildings and additional reviews/audits should be completed as necessary to determine if there are building envelope concerns.

Reports

The report and spreadsheets are based on a 30 year repair/replacement schedule that meets the requirements of the Condominium Property Act.

deliverables include:

Report including photographs of each common property component. For each component we will provide:
- Component Description
- Conditions Noted
- Specific Recommendations

Report includes:

Summary of work completed in the last 5 years;
Financial Summary
Overall Reserve Fund Summary
Reserve Fund Expenses for next 5 years (including inflation)
Contribution increase requirements based on existing fund
Final Reserve Fund recommendations
Summary of Recommendations (next 5 years) of component repairs/replacements required.

Spreadsheets

Each Reserve Fund provider has their way of funding methodologies, and this is important to consider when choosing a Reserve Fund Provider. The legislation indicates as per Section 23(1) as follows:

23(1) The corporation must retain a reserve fund study provider to carry out a study of the depreciating property for the purposes of determining the following:

(a) an inventory of all of the depreciating property that, under the circumstances under which that property will be or is normally used, may need to be repaired or replaced within the next 30 years or a time period longer than 30 years;

(b) the present condition or state of repair of the depreciating property and an estimate as to when each component of the depreciating property will need to be repaired or replaced;

(c) the estimated costs of repairs to or replacement of the depreciating property using as a basis for that estimate costs that are not less than the costs existing at the time that the reserve fund report is prepared;

(d) the life expectancy of each component of the depreciating property once that property has been repaired or replaced.

Having said that, it is important to consider carrying current replacement costs for major components that will require replacement to avoid additional contributions to the owners and this is the basis of our philosophy of funding.

Each Reserve Fund Study includes the following spreadsheets:

Cost Life Data

Includes each common property component and includes current replacement costs, expected life, actual age, effective age (same as actual, or credited/penalized depending on condition of component), and annual replacement cost.

Cost Life Analysis

Includes each common property component and illustrates the percentage of the Reserve Fund each component utilizes, the amount of funds accumulated for each component based on current bank balance, the expired equity of each component based on the age of component and the existing shortfall.

It is important to know that every reserve fund has a shortfall as typically reserve funds are not working on a fully funded model as is the actual reason to have a reserve fund so that you know when the critical year is (when you need the most amount of money).

Present Course

Includes the Opening Balance (determined by the board – sometimes based on the fiscal year or current with the time the Reserve Fund report is being completed), Expenses (including inflation) over the next 30 years, Interest earned on investments, Current Annual Contributions, Additional Contributions, and Closing Balance.

This spreadsheet illustrates whether the existing funding requirements are sufficient and if additional contribution increases are required.

Reasonable & Sufficient

Includes the Opening Balance (determined by the board – sometimes based on the fiscal year or current with the time the Reserve Fund report is being completed), Expenses (including inflation) over the next 30 years, Interest earned on investments, Current Annual Contributions, Additional Contributions, and Closing Balance.

This spreadsheet illustrates recommended contribution increases based on the critical years of expenses in the future. If sufficient funds are not available for projects in the future, additional contribution increases are recommended (increased condo fees, special levies, surplus funds from operating, etc.)

30-Year Replacement Schedule

Includes all common property components and indicates reserve fund expenses required over the next 30 years. The funds carried are a guide. The best way to carry the most accurate numbers in a Reserve Fund, in particular for expenses in the next five years, would be to obtain quotes from the service industry and carry these amounts in the reporting. This is even more applicable at this time due to the economy and Covid-19 as pricing has changed quite a bit in the last couple of years and is sometimes difficult to determine an accurate number to carry without a quote.

Other Deliverables

Life Cycle Costing Reports

Report and spreadsheets are based on a 25 year or 30 year repair/replacement schedule for buildings that are not registered as condominiums. These have become more and more popular in the last few years to allow owners/management companies to determine capital repair/replacement requirements. We have also completed these types of reports for social housing, churches, public works buildings, etc.

Reserve Fund Spreadsheet (Updates)

Spreadsheet updates are recommended when report is between cycles and a major project is being planned or was just completed. An additional fee is charged for this service.

Reserve Fund Spreadsheets (for Borrowing Funds)

If the Corporation is seeking to obtain a loan, Wade KH has developed spreadsheets that would illustrate funding requirements for the term of loan as well as still funding components that are not being scheduled for replacement. An additional fee is charged for this service.

5 Year Board Plans

Required by legislation to be completed when the Reserve Fund Report is completed and is to be given to the owners to indicate the next 5 years forecast of Reserve Fund requirements including contributions, interest earned, expenses, etc. Wade KH can complete the template for a nominal fee or provide templates for the Board to complete at no charge.

Reserve Fund Annual Reports

Required by legislation to be completed each year to be included in the AGM package and is to be given to the owners to note Reserve Fund expenses in the last fiscal year and forecasts for the next fiscal year. Wade KH can complete the template for a nominal fee or provide templates for the Board to complete at no charge.

Contractor Quotes

In order to determine costs for upcoming projects, the best way to budget for some of these expenses would be to obtain quotes to be included in the Reserve Fund report. Wade KH would facilitate obtaining quotes (for a fee) in conjunction with the management company/board to allow for proper budgeting of upcoming projects. A separate quote would be provided for this service.

We service Edmonton and surrounding areas as well as Edson, Fort McMurray, Grande Prairie and Jasper.

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