Reserve Study Update

A reserve study update recalculates reserve funding projections based on updated cost estimates, actual reserve contributions and expenditures since the last full study, and any changes to component assumptions — without conducting a new on-site inspection. Updates can be performed with a site visit (for a visual condition check) or as a paper-only update using prior data. Most boards commission a full study every three to five years and rely on annual paper updates in between. The update produces a revised funding plan, an updated percent-funded figure, and recommended annual contribution adjustments for the next budget cycle.

Skipping annual updates means the board is budgeting based on stale data. Inflation, construction cost changes, and actual spending patterns can shift the funding picture significantly from year to year.