Summary
The Prestonfield HOA’s most recent reserve study was completed by Reserve Advisors on February 17, 2026 — the first study since Waldman Engineering Consultants in 2014. The study identifies 6 reserve components with a combined 30-year replacement cost of $1,288,158. At the current annual contribution rate of $7,799, the HOA faces a projected funding deficit beginning around 2043. Reserve Advisors recommends phased increases starting in 2027, reaching approximately $24,300/year by 2031. As of March 31, 2026, the confirmed total reserve balance is $270,599.93.
Reserve Components
| Component | Quantity | Next Replacement | Estimated Cost | Responsibility |
|---|---|---|---|---|
| Perimeter shadow-box fence | 3,190 LF | 2034 | $140,360 | HOA |
| Split-rail pond fence | 300 LF | 2027 | $7,500 | HOA |
| Hemlock/Snowberry pond sediment removal | — | 2037 | $89,250 | HOA |
| North shared pond sediment removal | — | 2037 | ~$118,928 (45% of $264,285) | HOA (proportionate share) |
| Masonry retaining walls | — | 2042 | $344,080 | HOA |
| Entrance monument signage | — | 2031 | $4,500 | HOA |
Total 30-year projected expenditures: $1,288,158 (HOA share; North pond is cost-shared)
2014 Reserve Study (Waldman Engineering Consultants)
The prior study — completed in 2014 and referenced in the 2017 draft financial statements — identified only 4 components, compared to the 2026 study’s 6:
| 2014 Component (Waldman) | Approximate 2026 Equivalent |
|---|---|
| Wood Fence | Perimeter shadow-box fence (3,190 LF; next replacement 2034; $140,360) |
| Entrance Monument Stone Veneer | Entrance monument signage (next replacement 2031; $4,500) |
| Entrance Monument Lettering & Panel | (Same as above — merged into one component in 2026) |
| Retention Pond Shoreline | Hemlock/Snowberry pond sediment removal + North shared pond sediment removal |
New components added in 2026: Masonry retaining walls ($344,080) and Split-rail pond fence ($7,500) — neither appeared in the 2014 study. Their absence may indicate they were added based on deterioration observed in the intervening 12 years, or were simply not within Waldman’s scope.
Source: board-packet-2018-07-17 (2017 draft financials, Note re: reserve study), reserve-study-2026
Funding Status
| Item | Amount | Source |
|---|---|---|
| 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 | $7,799/year | year-end-report-2025 |
| Reserve interest income (2025) | $7,971.97 | year-end-report-2025 |
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 the actual total reserve balance as $270,599.93 — substantially higher than the 2025 estimate, likely reflecting CDs maturing and reinvestment, plus 2025 contributions and interest.
Recommended Funding Plan
Reserve Advisors projects a funding shortfall if contributions remain flat. Recommended phased increases:
| Period | Recommended Annual Contribution |
|---|---|
| 2026 (current) | $7,799 |
| 2027 | $11,100 |
| 2028–2030 | Graduated increases |
| 2031 onward | ~$24,300 |
Without increases, a reserve deficit is projected beginning approximately 2043. Near-term trigger: split-rail pond fence ($7,500) is scheduled for replacement in 2027.
Property Classification
The study correctly classifies reserve responsibilities:
| Category | Examples |
|---|---|
| HOA Responsibility (included in study) | Perimeter fence, pond fence, retaining walls, pond dredging, entrance signage |
| Owner Responsibility (excluded from study) | Individual homes, lots, homeowner-installed fences |
This classification was questioned at the May 2026 board meeting. Review of the study text suggests the classification appears correct — “Homes and Lots” are designated Owner Responsibility and only HOA-owned assets are included — but Board follow-up with Reserve Advisors to confirm this is still pending. See Open Questions below.
Applicable Rules
| Rule | Source | Section |
|---|---|---|
| Reserve study completed — first since 2014 | reserve-study-2026 | — |
| Reserve contribution: $7,799/year (2025 actual) | 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. Completion of the Reserve Advisors study may protect the HOA from this requirement if enacted. 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 subsequent 2026 Reserve Advisors study found a projected funding shortfall beginning around 2043, reflecting this period of inconsistent reserve funding. Source: board-packet-2019-10-10, board-packet-2019-11-14, reserve-study-2026 |
| 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 completes full study. 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 |
Open Questions
- Board scope clarification: The board directed follow-up with Reserve Advisors to confirm the study correctly excluded homeowner property. No confirmation of that follow-up has been ingested yet.
- Recommended increases not yet adopted: The 2027 contribution increase to $11,100 has not been formally approved in any ingested board meeting. It will likely surface in the 2027 budget process (typically fall 2026).
- North pond cost-share: The North shared pond sediment removal ($264,285 total; HOA share approximately 45% = ~$118,928) is subject to the cost-share arrangement. Whether the commercial parties will share that cost per the existing formula has not been confirmed in any meeting minutes.