A five-year cycle that works
| Year | What happens |
|---|---|
| Year 0 | Full study or update with a site visit. Figures go into the next budget. |
| Year 1 | Board review: actual spending against the plan, interest earned, any new components. |
| Year 2 | Board review, or a desk update if costs have moved. |
| Year 3 | Update with a site visit; CAI calls a visit at least every third year best practice. |
| Year 4 | Board review. Start collecting proposals for next year. |
| Year 5 | Next study complete before the fifth anniversary. |
The three levels
- Full study (CAI Level I). New inventory of every component, site visit, funding plan. $1,500 to $20,000.
- Update with site visit (Level II). Existing inventory reviewed on site, costs and plan redone. Often 50 to 80% of a full study.
- Update without site visit (Level III). Numbers refreshed from records, no visit. Often under $1,000.
The levels come from CAI's national reserve study standards. The fees are typical ranges from published prices; treat them as a guide, not a quote.
Running the yearly review
- Compare last year's reserve spending with what the study planned.
- Note any component replaced early, deferred, or added.
- Check the reserve balance and contribution against the study's recommendation.
- Decide whether the contribution or the assessment needs to change.
- Carry the four required figures into the new budget and minute the decision.