The major reserves expense for 2019 is a re-build of the upper deck of the parking garage.
The basic version of the reserves study has a cash flow page and a year-by-year list of items planned for the next 30 years. There is also an end section that looks back beginning in 2016 and looks forward in detail at the next 5 years.
There is also a full version of the reserves that looks at the same data from more angles including a look at the yearly contribution to each reserves item.
Currently, the 2016 report is updated yearly, showing 2016 as the beginning year. The reserves are completely re-done every 5 years or so, which will show the then-current year as the new beginning date.
The Reserves Study includes a maintenance schedule for large capital expense items and a financial plan—income from a portion of the HOA dues—for providing the funding.
For the most part, the reserves are fairly easy to understand, with each item being named, listed, and the dollar amount calculated. A key item that is not apparent is the Percent Funded column, the right-hand column on the Cash Flow page.
The Percent Funded is the ideal amount in the reserves (in the current year) versus the actual amount. It is explained quite well in this article by Joel L of Reserve Data Analyst.
Here’s an example.
Say a regularly scheduled item was completed last year. It is scheduled to be done again in 10 years and will cost $10,000 at that time.
The yearly contribution to the reserves should be $1,000 per year, and that amount will be in the reserves in year 1 (of 10) if the percent funded is 100%.
If the percent funded is shown as, say, 25%, that means there is only $250 in the reserves.
In the case of 25% funded, every item in the reserves will show the same gap in funding between what the yearly contribution should be and what it would be if funded at 100%.
Most experts agree that 100% funding is rare, and somewhere in the range of 50% - 70% is healthy.
Here is the the Oregon Condominium Law regarding a Reserves Study and board responsibility.