Summary
The Prestonfield HOA’s current reserve study is the revised Reserve Advisors Full Reserve Study issued September 25, 2026 (inspection date February 17, 2026). It is the first study since Waldman Engineering Consultants in 2014. It supersedes the February 17, 2026 version, which had included fence and retaining walls that are not HOA property. The revised study identifies 5 reserve components with combined 30-year expenditures of $492,918 and finds no projected funding shortfall. Reserve Advisors recommends a 2027 contribution of $2,000, rising by about $100 per year to $5,200 in 2056. That is far below the current $7,799 budgeted contribution. Confirmed reserves were $270,599.93 at March 31, 2026 ($270,800 at January 31, 2026 per the report).
Reserve Components
| Component | Quantity | First Replacement | HOA Share | 2026 Cost (per phase) | Inflated Cost |
|---|---|---|---|---|---|
| Shadow-box fence, east perimeter (Rte. 59) | 1,350 LF | 2034 (again 2050) | 100% | $59,400 | $77,017 (2034); $129,477 (2050) |
| Split-rail fence, pond area | 300 LF | 2027 (again 2051) | 100% | $7,500 | $7,748 (2027); $16,888 (2051) |
| Hemlock/Snowberry pond sediment removal (partial, 75% of surface) | 1,915 sq yd per phase | 2037 | 100% | $86,175 | $123,164 |
| North shared pond sediment removal (partial, 25% of surface) | 4,195 sq yd per phase | 2037 | 45% | $84,949 | $121,412 |
| Entrance monument signage renovation | Allowance | 2031 (again 2056) | 100% | $4,500 | $5,293 (2031); $11,919 (2056) |
Total 30-year projected expenditures: $492,918. Largest single year is 2037 ($244,576), when both pond sediment removals fall together. Five-year outlook (2027–2031): $13,041.
Source: reserve-study-2026-revised
What Is Excluded (and Who Is Responsible)
The February 2026 version overstated HOA scope. The revised study removes non-HOA property. Only the Route 59 fence (replaced 2019–2020, see first-class-fence) and the split-rail fencing at the pond/wetland are HOA-owned fence.
| Category | Examples | Responsible party |
|---|---|---|
| Owners | Fences at lot lines; homes and lots; retaining walls at/between lot lines (about 6,500 sq ft; about $300,000 in 2026 dollars) | Adjoining homeowners |
| Others | Frontage-road retaining walls | Adjacent commercial property owner |
| Others | Park development; sidewalks parallel to streets; street systems | West Chicago Park District; City of West Chicago |
| Operating budget (under $2,000 or routine) | Fence stain/seal and partial replacements; pond bathymetric surveys, chemical treatment, erosion control; informational signs | HOA operating budget |
| Long-lived | Common electrical; concrete inlet/outlet structures | HOA (no predictable life) |
Source: reserve-study-2026-revised (Section 2); fence/wall ownership clarified by the Board per user, 2026-09-29.
Comparison of Study Versions
| Item | Feb 17, 2026 version | Sept 25, 2026 revision |
|---|---|---|
| Components | 6 | 5 |
| Perimeter fence | 3,190 LF; $140,360 (2034) | 1,350 LF; $59,400 (2034) |
| Masonry retaining walls | $344,080 (2042) | Removed (not HOA property) |
| 30-year expenditures | $1,288,158 | $492,918 |
| 2027 recommended contribution | $11,100 | $2,000 |
| Long-run contribution | about $24,300 by 2031 | $5,200 by 2056 |
| Projected shortfall | About 2043 | None; low point $32,576 in 2051 |
2014 Reserve Study (Waldman Engineering Consultants)
The prior study identified only 4 components, compared to the current study’s 5:
| 2014 Component (Waldman) | Current Equivalent |
|---|---|
| Wood Fence | Shadow-box fence, east perimeter (1,350 LF; 2034; $59,400) |
| Entrance Monument Stone Veneer | Entrance monument signage (2031; $4,500) |
| Entrance Monument Lettering & Panel | (Merged into one component in 2026) |
| Retention Pond Shoreline | Hemlock/Snowberry pond and North shared pond sediment removal |
New component in 2026: the split-rail pond fence, which did not appear in the 2014 study.
Source: board-packet-2018-07-17 (2017 draft financials, Note re: reserve study), reserve-study-2026-revised
Funding Status
| Item | Amount | Source |
|---|---|---|
| Reserves, January 31, 2026 (unaudited) | $270,800 | reserve-study-2026-revised |
| Confirmed reserve balance (March 31, 2026) | $270,599.93 | financial-report-2026-03 |
| Replacement reserve equity | $230,975.31 | financial-report-2026-03 |
| Current annual contribution (2026 budget) | $7,799/year | year-end-report-2025 |
| Reserve interest income (2025) | $7,971.97 | year-end-report-2025 |
| Assumed return on reserves / inflation | 3.1% / 3.3% | reserve-study-2026-revised |
Note: The 2025 Year End Report year-end-report-2025 estimated the reserve balance at $185,000–$195,000 based on interest yield. The March 2026 balance sheet financial-report-2026-03 confirms $270,599.93.
Recommended Funding Plan (Revised)
Reserve Advisors uses the Cash Flow Method. Threshold funding years are 2037 (pond sediment removal) and 2050 (fence replacement). Year-end balances assume the recommended contributions.
| Year | Contribution | Year-End Balance | Year | Contribution | Year-End Balance |
|---|---|---|---|---|---|
| 2026 (11 mo.) | $7,149 | $285,645 | 2042 | $3,500 | $109,825 |
| 2027 | $2,000 | $288,551 | 2043 | $3,600 | $116,841 |
| 2028 | $2,100 | $299,513 | 2044 | $3,700 | $124,173 |
| 2029 | $2,200 | $310,912 | 2045 | $3,800 | $131,831 |
| 2030 | $2,300 | $322,761 | 2046 | $3,900 | $139,825 |
| 2031 | $2,400 | $329,699 | 2047 | $4,000 | $148,165 |
| 2032 | $2,500 | $342,326 | 2048 | $4,100 | $156,862 |
| 2033 | $2,600 | $355,441 | 2049 | $4,200 | $165,926 |
| 2034 | $2,700 | $290,863 | 2050 | $4,300 | $43,911 |
| 2035 | $2,800 | $302,606 | 2051 | $4,400 | $32,576 |
| 2036 | $2,900 | $314,810 | 2052 | $4,500 | $38,142 |
| 2037 | $3,000 | $79,171 | 2053 | $4,600 | $43,980 |
| 2038 | $3,100 | $84,741 | 2054 | $4,800 | $50,199 |
| 2039 | $3,200 | $90,583 | 2055 | $5,000 | $56,812 |
| 2040 | $3,300 | $96,705 | 2056 | $5,200 | $51,729 |
| 2041 | $3,400 | $103,116 |
The 2027 contribution equals about $0.78 per owner per month ($9.30 per year) across 215 units. The plan projects about $8,650 of reserve interest in 2027, more than the recommended contribution. Reserve Advisors recommends an update to the study in two to three years and periodic pond bathymetric surveys by a local engineer.
Applicable Rules
| Rule | Source | Section |
|---|---|---|
| Reserve study completed (revised Sept 25, 2026) — first since 2014 | reserve-study-2026-revised | — |
| Recommended 2027 contribution $2,000; 30-year expenditures $492,918 | reserve-study-2026-revised | Sections 1 and 3 |
| Reserve contribution: $7,799/year (2026 budget) | year-end-report-2025 | — |
| Reserve Advisors selected at $2,200 | minutes-2026-01-14 | — |
| Proposed IL law: 15% of assessments to reserves if no study completed | minutes-2026-05-07 | — |
Illinois Reserve Fund Legislation (Proposed)
A proposed Illinois law would require associations without a completed reserve study to contribute at least 15% of annual assessments to reserves. Based on 2025 income of ~$93,000, 15% would be approximately $13,950/year, nearly double the current $7,799 contribution and about seven times the revised study’s 2027 recommendation. Whether a completed study exempts the HOA, and whether the exemption depends on the Board following the study’s funding plan, has not been verified against the bill text. Source: minutes-2026-05-07.
History
| Date | Event |
|---|---|
| 2014 | Reserve study completed by Waldman Engineering Consultants — 4 components: (1) Wood Fence, (2) Entrance Monument Stone Veneer, (3) Entrance Monument Lettering & Panel, (4) Retention Pond Shoreline. Referenced in 2017 draft financial statements as the basis for the replacement reserve fund. Source: minutes-2025-10-30, board-packet-2018-07-17 |
| 2018–2019 | Reserve contribution trajectory: 2018 contribution was $8,078/year. The proposed 2019 budget reduced this to $5,387.27/year — a ~33% cut. This reduction occurred while the 2014 Waldman study was still the operative reserve plan. Source: board-packet-2018-10-11, reserve-study-2026 |
| 2020 (budget) | The October 2019 proposal set the 2020 reserve contribution at $5,000 — a 34% shortfall from the Waldman study’s $7,535 recommendation, and below the reduced 2019 figure of $5,387.27. Before formal adoption in November 2019, the Board revised this upward to $6,725 — still 10.7% below Waldman’s $7,535 recommendation, but a meaningful improvement from the October proposal. The adopted contribution of $6,725 represents continued underfunding relative to the study guidance established in 2014. The February 2026 version of the Reserve Advisors study projected a funding shortfall beginning around 2043; the September 2026 revision, which removed non-HOA property, projects no shortfall. Source: board-packet-2019-10-10, board-packet-2019-11-14, reserve-study-2026, reserve-study-2026-revised |
| 2025-10-30 | Board noted reserve study had not been updated since 2014. Reserve study not included in 2026 budget discussions. Source: minutes-2025-10-30 |
| 2026-01-14 | Reserve Advisors selected at $2,200 contract. Source: minutes-2026-01-14 |
| 2026-02-17 | Reserve Advisors inspects the property; effective date of the study. First version issued with 6 components and a $1,288,158 30-year total. Source: reserve-study-2026 |
| 2026-03-31 | Reserve Advisors $1,100 retainer (first installment) appears in Q1 2026 disbursements. Total reserve balance confirmed at $270,599.93. Source: financial-report-2026-03 |
| 2026-05-07 | Board reviewed study; raised scope concern about HOA vs. homeowner property boundaries. Board to clarify with Reserve Advisors. Proposed IL 15% law discussed. Source: minutes-2026-05-07 |
| 2026-07-16 (prep) | Split-rail pond fence project moves from study to active bidding. For the 2027 budget, the manager will obtain replacement proposals for the split-rail fence around the central basin (behind 264, 278, and 297 Hemlock, and 1438 Snowberry). The manager’s placeholder budget figure ($8,000) is slightly above the reserve study’s original $7,500 estimate ($7,748 cited in the packet narrative) — a minor, expected variance pending actual bids. The recommended 2027 reserve contribution ($11,100) is now appearing in live budget preparation, not just as a study recommendation. Source: board-packet-2026-07-16 |
| 2026-07-16 (meeting) | $50,000 moved from the Operating Account into a new CD (MH motion, MC second); Treasurer separately noted the HOA is short on some items, with October budget review flagged as the point to reassess. Menards-road scope concern advances: EB reiterated that the reserve study may have incorrectly attributed responsibility for Menards-road retaining walls to the HOA; EB will determine who is actually responsible, and Marjorie (API) will have Reserve Advisors review and correct their figures if needed. Source: minutes-2026-07-16 |
| 2026-09-25 | Reserve Advisors issues the revised study. Non-HOA fence (3,190 LF reduced to 1,350 LF) and all retaining walls removed; 5 components; 30-year total $492,918; recommended 2027 contribution falls from $11,100 to $2,000; no projected shortfall. Frontage-road walls assigned to the adjacent commercial owner and lot-line walls and fences to homeowners. Board later confirmed HOA-owned fence is only the Route 59 fence and the pond/wetland split-rail. Source: reserve-study-2026-revised |
| 2026-10-01 | Revised study included in the October 1 board packet (pp.18–48; same content as the September 25 version already ingested). The manager’s report frames it as “remove all retaining walls which reduces the reserve contribution significantly” and lists “Reserve Study Revisions” for Board discussion/approval (agenda 8c). The same packet’s proposed 2027 budget uses an $8,000 reserve contribution — four times the study’s $2,000 recommendation, roughly the current $7,799 — and budgets no reserve expenditure, although the study schedules the split-rail replacement for 2027 ($7,748). The excluded-components pages assign lot-line retaining walls (about 6,500 sq ft, about $300,000 to replace) to owners “per Management and the Board.” Source: board-packet-2026-10-01 |
| 2026-10-01 (meeting) | Board discusses the revised study’s effect on the budget. The minutes note the updated study removed areas the HOA does not maintain (retaining walls along the Menards frontage road and the Menards fences), reducing the reserve need. MKH suggested lowering the assessment; the Board instead voted 3–1–1 to keep the 2027 assessment the same as 2026 (NS motion, EB second; MC opposed, MH abstained). No motion to accept the revised study and no decision on the 2027 reserve contribution is recorded. The Board also approved the $6,390 Classic Fence split-rail replacement — a component the study schedules for 2027 ($7,748) — without stating whether it will be paid from reserves or operating funds. Source: minutes-2026-10-01 |
| 2026-10-23 | Revised 2027 proposed budget mailed to homeowners with a $2,000 reserve contribution (matching the study; the October 1 draft had $8,000). Assessments $74,173 + reserve $2,000 = $76,173, i.e. $352.65 per unit unchanged. No reserve expenditure is budgeted. Adoption planned at the Board’s Zoom meeting 11/23/2026. Source: owners-notice-2027-budget-and-collection-policy |
Open Questions
- 2027 reserve contribution not yet adopted: The revised study recommends $2,000 for 2027 and the budget mailed to homeowners on October 23, 2026 proposes $2,000 (the October 1 draft’s $8,000 was replaced). No Board vote has adopted it; the vote is expected at the November 23, 2026 Zoom meeting.
- Bathymetric surveys not commissioned: Reserve Advisors recommends periodic pond bathymetric surveys by a local engineer, because sediment volumes in the study are assumptions. No engagement or budget for this is recorded.
- North pond cost-share: The HOA’s share of North pond sediment removal is 45% in the study ($121,412 inflated, 2037). The wiki’s cost-share formula gives 45.58% (cost-share-arrangement). Whether the commercial parties will fund their share per the existing formula has not been confirmed in any meeting minutes.
- Illinois 15% proposal: Whether a completed study exempts the HOA from a 15% minimum contribution, and whether that exemption depends on following the study’s funding plan, has not been verified.
- Split-rail fence location and operating funding: The study places the 300 LF at the north perimeter of the pond area; the July 2026 packet described the bid scope around the central basin. The study also expects periodic partial replacements to come from the operating budget. Whether these describe the same fence and how the operating budget will absorb them is unconfirmed. The October 1, 2026 packet adds three bids ($4,730 pine / $7,230 cedar / $6,390 cedar for about 260 LF) but none is budgeted for 2027; see fence-regulations.
- Reserve balance comparability: the study starts from $270,800 (January 31, 2026). The August 2026 balance sheet now shows Total Reserves of $319,830.48, which includes a $50,000 CD funded from the operating account (financial-report-2026-08); the reserve-designated balance is therefore not simply the balance-sheet subtotal. How the Board intends to treat that $50,000 (reserve or operating) is not recorded.