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

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)