My Summery of our Reserve Study dated December 21 2016.

Reserve Study Summary

This is a draft copy and is subject to change for the following reasons. When this reserve study was written, it was done so with the understanding the Glebe Harbor – Cabin Point Sanitary District, was a Property Owners Association, according to their report.

They assumed that each Home Owner that belong to our “Property Owners Association”, would be billed monthly and that our dues would be increased by x amount of dollars, as the years passed by. They also assumed that our reserve fund bank account, was being increased as items were being repaired/replaced due to our monthly dues structure.

While my calculation will give the same results, their calculations simply will not line up due to the above-mentioned reasons. I can assure you, no fault can be attributed to this company that wrote our report.


I have completed the Board Leadership Program given by the Community Associations Institute. The company that wrote our reserve study report used, the guidelines that are set by the Community Associations Institute. This was an extremely in-depth course, that covered the following topics, with some topic having three to five sub-topics.

  1. Governing Documents, Roles and Responsibilities.
  2. Communications, Meetings and Volunteerism.
  3. Fundamentals of Financial Management and Reserve Studies.
  4. Professional Advisors and Service Providers.
  5. Association Rules and Conflict Resolutions.
  6. Board Leadership Development Workshops.
  7. Association Leadership for Volunteers.
  8. Managing and Governing. How Community Associations Function.
  9. How to Take Your Community from Good to Great.

The following information was taken from the Reserve Study that was started December 21th, 2016. When I make a written statement concerning my opinions or the opinion of others, concerning this Reserve Study I will “Italicize” those words. Any words in BOLD font, are the original words and are simply meant to bring attention to the paragraph, word, figure or sentence. Any information that is in “regular font”, was taken from the reserve study word for word.

Start of Reserve Study Summary

Current Funding. This reserve study has been prepared for Fiscal Year 2017. It is done with a projected time of 40 years. The Association does not currently have a reserve account set up and will use this study to determine proper funding going forward.

Glebe Harbor Cabin Point Association has a starting Balance of $x.xx and Annual Funding totaling $x.xx. The Glebe Harbor Cabin Point Replacement Reserve Inventory identifies xxx items that will require periodic replacement, that are to be funded from Replacement Reserves. We estimate the cost of these replacements will be $x,xxx,xxx.xx over the 40-year Study Period.

They assumed that our monthly dues would be increased at a fixed rate to not only address our repair issues, but also build our reserve fund bank account, at the same time. There are three  factors that will affect this summary.

First off, they have listed high dollar items that have already been paid for.  Therefore, all their calculations, will now be in error, concerning the projected monies spent, for the projected forty (40) year period as well as the group of years, their report is broken down to.

Secondly, again due to no fault of their own, they have listed items that may not have needed to be included, due to our formation of the Glebe Harbor – Cabin Point Sanitary District. A prime example of this is the two gates that prevent access to our boat ramps in Glebe Harbor and Cabin Point. Since these two boat ramps are now a part of our amenities and made available to our Community as a whole, it makes no financial sense to spend money to repair these items, that will never be used.

Thirdly, and again, due to no fault on their part, reserve studies do not account for volunteers willing to be engaged, to resolve some of the items these studies have listed. A prime example is our Tot Lot. It is my opinion that their repair cost that well exceeds $10,000 dollars, can be done by volunteers, therefore reducing that cost by more than 90%. Reserve studies also do not consider items that a Community, may decide to simply do away with or reduce their budget in order to place more money into their reserve bank account.

A prime example of this can been seen in the minuets of the Stratford Harbor Home Owners Association, board meetings. Both staff as well as members of the HOA, wanted to have cable TV supplied to their Clubhouse. A motion was made, and a Board Member looked into the cost of doing this. Since they are Incorporated, Metro Cast, who is now Atlantic Broad Band, informed them that they would have to purchase their package designed for Commercial Businesses. This price exceeded their monthly budget for this service and the motion to install cable TV was not carried and no cable TV was installed.


Annual Funding of $x.xx is approximately x percent of the $xxx,xxx.xx recommended Annual Funding calculated by the Cash Flow Method for 2017, the Study Year. Evaluation of the xxx Projected Replacements calculates an average annual expenditure over the next 40 years of $xx,xxx.xx.

So, what is the cash flow method? “The cash flow method arrived with the personal computer and its ability to do many calculations almost instantly. With “spreadsheet software” one could very quickly test many different funding scenarios against the association’s timeline of projected Reserve expenses. The earliest uses of the cash flow method were to determine the minimum contributions necessary to maintain positive cash flow over a 20- or 30-year forecast. Reserve contributions developed in this manner were often significantly less than those computed by the straight-line method. Thus, the cash flow method became stereotyped as an aggressive calculation method”.

The figure above is referring to what it would take to fix every line item in this reserve study, PAID PER YEAR, WITHOUT being able to add any monies back, into our reserve bank account. When we became a Sanitary District, each taxable lot within Glebe Harbor and Cabin Point was charged $190.00 per year, referred to as a “Recreational User Fee”. (RUF). In 2018 the RUF was raised to $200.00. This information can be found in the Public Domain.

According to the Glebe Harbor-Cabin Point Association Inc., we have 1,370 taxable lots in 2018. 1,370 x $200.00 = $274,000.00. Even if my math is off, it will only be by a small margin. I did not calculate the 2016/2017 year to the same degree, as I have very little information concerning our lot consolidation information, however, without knowing the amount of taxable lots, my errors will be in favor of more monies that were billed. I will assume that the monies billed by Westmoreland County in 2016, should be very close to the monies they billed in 2017.

In 2017, 1,370 taxable lots x $190.00 RUF = $260,300.00. Please keep in mind I know there are Property Owners, who have not paid their RUF taxes. This is a matter of public record. However, this has no bearing on my math as related to this reserve study. As a Sanitary District Community, we have no authority to act as a “Bill Collector”, that job is better served by the Westmoreland County Revenue Office. They have the authority to seize delinquent properties, auction them off, and satisfy any debt that is legally owed to the Glebe Harbor – Cabin Point Sanitary District.

For the 2016 and 2017 period, Westmoreland County should have billed around $520,600, for Property Owners in our Communities. For the 2018 period Westmoreland County should have billed somewhere around $274,000.00. For the period of 2016, 2017 and 2018, Westmoreland County should have billed close to $794,600.00. If Westmoreland County bills the same amount concerning the RUF set at $200.00, for the next six (7) years from the 2019/2020 budget period date, that amount would be close to $1,822,100.00. If we combined the last three (3) years of the RUF fund, to the seven (7) year projected period, that figure would be somewhere around $2,616,700.00.  At the end of the eight year, we will have been billed close to $2,877,000.00 The projected reserve study states that their total is $x,xxx,xxx.xx over a forty-year period. This information can be found in the Public Domain.


Glebe Harbor Cabin Point has 450 units. The type of property is a property owners association.

This is incorrect. We are not a Property Owners Association and their assumption that we are, has led them to believe the increases they recommended, would be applied to our monthly POA dues as items were being fixed or replaced, at the same time our reserve fund was being added to.


This Replacement Reserve Inventory has been developed in compliance with the standards established for a Level One Study – Full Service, as defined by the National Reserve Study Standards, established in 1998 by Community Associations Institute, which states:

A Level I – Full Service Reserve Study includes the computation of complete component inventory information regarding commonly owned components provided by the Association, quantities derived from field measurements and/or quantity takeoffs from to-scale engineering drawings that may be made available. The condition of all components is ascertained from a visual inspection of each component by the analyst. The remaining economic life and the value of the components are provided based on these observations and the funding status and funding plan are then derived from analysis of this data.

The same company that trained me concerning the duties of an Association Board Member, is the same company that has set the standards for other companies, who provide Reserve Studies, to Associations such as ours. The company we paid to do our Reserve Study, used the Community Associations Institute guidelines, when they wrote their report.



Items 8 through 11. These items can be removed. These are the wooden signs for our boat ramps and beaches stating we are a private community and it is for our Members use only. We now have brand new metal signs that state the same thing, as well as we are now patrolled by the Westmoreland County Sheriff’s Office. Do we really need two signs that state the same thing, placed side by side or in front of each other?


Item 12. Mailbox, cluster unit. This mail box was given a life expectancy of 25 years from December 2017. We can replace it with a mail box that will do the same thing for under $130.00 from Lowes.

Item 20. Road drainage ditch. (Around our clubhouse) Cut/grade/reseed. $xx,xxx.xx. If the ditch line that is on the right-hand side of the pavilion, while facing Glebe Harbor Drive, had a culvert cleaned/installed or the ditch line was restored to its natural state, this would probably solve 95% of the drainage problem concerning the ditch line on the front and left-hand side, while facing the clubhouse from S Glebe Rd. VDOT is working on this issue as of November 19, 2018. This item may be able to be removed.

Item 22. Clubhouse bldg. water piping.

Item 23. Clubhouse bldg. sewer piping.

Items 22 and 23 are unrealistic. The water pipes inside of a heated structure, should have a life time expectancy. While water pipes to burst sometimes, very seldom is due to average wear and tear. It is mostly due to freezing or a manufacture recall, due to faulty material. Can anyone remember when they had to replace their pluming inside the walls, due to normal wear and tear?

Item 30 through 35 are unrealistic. If these items are in good to fair shape as stated, then these items should be removed. Since we have at least 5 years, we can address any issues now, to help reduce the replacement cost in the future.

Item 36. Exterior Painting of Clubhouse. This can be done through volunteer work. It is a simple process to figure out how much paint would be needed to do this job. We need to set up a volunteer committee. This item may be able to be removed.


Items 107 through 112. These items can be done using volunteers or forming a “Work Committee”. At the time of this reserve study, everything mentioned has at lease a 5-year life expectation, before anything would need to be replaced. This gives us ample time to act now. I am in contact with companies that sell commercial play grounds items. I am just trying to get a feel for pricing. It may be cheaper to install new equipment, then repair what we have at this time.

As far as having it inspected, this can be done by anyone with a background in construction. I know of others in our community who have this experience, including myself. Here is the manual that would be used to check the safety status of our Tot Lot. Consumer Product Safety Commission, Handbook for Public Playground Safety.


Item 116 Glebe Harbor boat ramp, concrete paving.  We need to see if this boat ramp driveway is maintained by VDOT, and if they consider it “State Maintained”, before this item should even be considered.

Item 117 Glebe Harbor boat ramp. This item can be removed as it has already been done. 

Item 118 Glebe Harbor boat ramp, metal swing gate. This item can be removed. Since we are all Members of the Glebe Harbor-Cabin Point Sanitary District, there is no reason to have these gates installed. Our boat ramps are now open to all members.

Item 125 Cabin Point boat ramp, metal swing gate. This item can be removed. Since we are all Members of the Glebe Harbor-Cabin Point Sanitary District, there is no reason to have these gates installed. Our boat ramps are now open to all members.


Groins. The wood groins along the Royal Way beach appear to be in overall good condition, with the exception of two areas with a few missing boards. These areas of damage should be repaired so the now weakened walls are not damaged further.

In my opinion, we do not need to spend more then what was recommended, as being a 0 life expectancy item concerning this issue.


  1. Can we raise our GH-CP Association budget with Westmoreland County, WITH OUT raising our RUF?
  2. If not, then why not?
  3. Where does our RUF monies go when we have everything in proper working order?
  4. Can the amount of our RUF be reduced when we accomplish, question number 3?


1 Comment

  • Neighborhood Meeting Concerning Our Reserve Study. – Glebe Harbor December 3, 2018 at 3:29 am

    […] When I get everything lined up, I will post my results and if there is enough interest, maybe set up a time to hold a meeting online, for anyone that would like to ask any questions. I will keep you posted. UPDATE: You can read my Reserve Study Summary here. […]


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