Copyright NBNPHA 2016

Replacement Reserve Planning

Member Services

Call Dave Shalala: 506-206-3795
 

This tool is provided to help ensure your portfolio has an adequate replacement reserve plan.


Questions about the toolkit can be sent to the Member Support Program coordinator, Dave Shalala, 506-451-4772, dshalala@nbnpha-alsblnb.ca.


Directions:
 

Step 1: Download the template (xls).


Step 2: Enter Project information:

  • Current Year

  • Interest Adjustment Date (if unknown, check with your Portfolio Management Officer)

  • Current balance of Replacement Reserve Fund

  • Annual allocation to the Replacement Reserve Fund

  • Inflation Factor


Step 3: Complete ‘Remaining Useful Life of Capital Items’ worksheet

  • Capital Item

  • Unit #

  • Date of Purchase

  • Useful Life (information from ‘Useful Life Table’)

  • Remaining Useful Life formula (example:  year of purchase +useful life – current year = remaining useful life)

  • Current Cost (estimated)

  • Estimated Replacement Cost (Formula = current cost x inflation factor = inflated cost:  Repeated for each year of remaining useful life)

  • Estimated Date of Replacement (current year + remaining useful life)

  • Annual Need (Total Estimated Replacement Cost for each year) – Transfer yearly requirement to ‘Withdrawal’ column in Cash Flow worksheet.

 

Additional References:

  1. Replacement Reserve Guide (pdf)

  2. List of Items & Useful Life (pdf)

  3. Spreadsheet References (pdf)