school reserve study

zumBrunnen has established itself as a top player in conducting reserve studies for schools. Our team of seasoned experts possesses extensive knowledge and valuable insights into the construction and facilities of school campuses. With a consistent record of success, we offer comprehensive reserve studies that enable schools to make informed decisions regarding capital replacements and maintain their financial stability.

Reserve Study for Schools

For over 33 years, zumBrunnen has been a trusted provider of school reserve studies. Our evaluations include a thorough facility assessment, as well as analyzing the funding required for future capital replacements. With our reserve studies, clients can confidently make informed decisions about their reserves, enabling them to better plan for the future and ensure proactive asset management.

About Reserve Study

A reserve study is a tool enabling property managers to make informed long-term decisions. It involves examining all capital assets and assigning replacement costs and future replacement dates. The study produces a detailed replacement schedule that helps investors and property management staff make informed decisions and to proactively plan for the future of the school.

Rob Milan, CEO of zumBrunnen, conducting a school reserve study.

Contact zumBrunnen to do a Reserve Study for your School

zumBrunnen is your trusted partner for all your school reserve study needs. With over 30 years of experience, our dedicated team of experts is committed to delivering top-quality service. We know how important accurate reserve studies are, and we deliver the best possible results. Our team of professionals has extensive knowledge and expertise, ensuring that your reserve study needs are performed with accuracy and precision by seasoned experts. Contact zumBrunnen today to make the best decisions for your school property with confidence.

More About School Reserve Study

At zumBrunnen, we recognize that schools have unique financial constraints. That’s why we offer our expertise in creating detailed and easy-to-understand reserve study reports tailored to your needs. Additionally, our team of experienced project managers is available to provide personalized guidance and support throughout the process.

The Education Industry’s #1 Choice for Reserve Studies

Save More Time and Money for Your School with A Reserve Study

We provide a comprehensive value proposition to school property managers with our reserve study service, which utilizes a systematic process and essential tools to forecast future capital needs over the facility’s useful life. Powered by zumBrunnen’s proprietary FacilityForecast® software, our user-friendly capital reserve study solution allows for customization of data in various ways. Users can adjust inflation rates, interest rates, terms in years, filter or combine budgets, cost categories, budget item classifications, set minimum unit cost values, and calculate facility condition indexes.

School Reserve Study Funding Plan Descriptions

Current Funding Plan

zumBrunnen reviews and presents the client’s reserve fund balance, historical or planned annual reserve contributions in the Current Funding Plan reports. These comprehensive reports offer a clear overview of the fund balance and planned contributions.

Funding Plan Line Chart Example:
This report displays a line chart of the client’s annual contribution, capital expenses, and reserve balance for each year of the specified reporting term. It also identifies any potential shortfall in the client’s current funding model.

Funding Plan Table Example:
This report examines the effectiveness of the Current Funding Plan based on projected capital expenses. It provides data such as the required fully funded balance, actual reserve balance, percent funded, current plan annual contributions, interest income, capital expenses, and the funding requirement on a per unit per year and per month basis. This report aims to identify underfunded years in the Current Funding Plan.

This plan displays the status quo of following the 20-year budget without making changes to the planned contribution for the current year. It shows the client’s financial position at the end of each year over the next 30 years.

example of a school reserve study current funding plan
example of a current funding plan school reserve study zumbrunnen inc
example of a school reserve study fully funded funding plan
an example of a fully funded funding plan school reserve study zumbrunnen inc

Fully Funded Plan

HUD created the Fully Funded Plan Component Method in the early 1980s, which requires separate funding accounts for each component, amortized over its lifespan. For older properties, accelerated funding is necessary to cover the remaining life of components and the amortized balance of items to be replaced in the future. In case of a budget deficit, savings or a special assessment can be used to make up the difference. However, older properties may require larger initial contributions and a more conservative reserve balance than the Baseline and Threshold Funding Plans.

Funding Plan Line Chart Example:
This bar graph illustrates the annual contributions, capital expenses, and projected reserve balance of the Fully Funded Plan for the National Register of State and Societal Services.

Funding Plan Table Example:
The objective of the Fully Funded Plan is to address 99% or more of the accrued depreciation. The report provides yearly breakdowns of the required NRSS balance as per the depreciation schedule, reserve balance, funding level, NRSS contributions based on remaining life amortization schedules, interest income, capital expenses from Table VII-A, and contributions calculated on a per-unit, per-year, and per-month basis.

The objective of a Fully Funded Plan is to cover 99% or more of the total accumulated depreciation for properties that have been in existence for over a year. Achieving this goal will necessitate higher initial contributions compared to the Baseline and Threshold Funding Plans. However, it will also result in a more cautious reserve balance.

Baseline Funding Plan

The objective of this funding plan is to establish the minimum yearly contributions required to prevent the reserve balance from dropping below zero dollars during the Reserve Term. This is accomplished by testing different levels of annual contributions against projected expenses until the contributions are adequate to maintain the reserve balance at zero dollars, even during years with the highest expenses throughout the Reserve Term.

Funding Plan Line Chart Example:
A line graph depicts the Baseline Funding Plan, showcasing the annual NRSS contributions required for each year, capital costs, and the corresponding reserve balance.

Funding Plan Table Example:
The report details the required fully funded balance for each year of the NRSS, considering the depreciation schedules, reserve balance, percent funded, critical year amortization, interest income, capital expenses, and annual contributions calculated on a per unit per year and per month basis.

Please note that the Baseline Funding Plan only ensures adequate reserve funds for the years of the Reserve Term. Following the initial critical year, contributions may decrease, except when the sole critical year falls in the last year of the Reserve Term. Typically, multiple critical years will exist, and the Baseline Funding Plan will accordingly reduce the annual contributions, ensuring that the Reserve Fund is not more than the required amount to maintain a cash balance of zero or more. Extending the Reserve Term may result in increased annual contributions beyond the specified Report Term, as another critical year requiring larger contributions could occur beyond the designated Reserve Term.

This statement explains your stance on adjusting the annual contribution to maintain a reserve fund balance of zero dollars or more.

example of a school living reserve study baseline funding plan
a baseline funding plan school reserve study zumbrunnen inc
example of a school reserve study threshold funding plan
a threshold funding plan school reserve study zumbrunnen inc

Threshold Funding Plan

The Consultant proposes that the Client incorporate a contingency or minimum threshold percentage to the Baseline Funding Plan, to avoid the deferral of critical replacements and minimize the risk of special assessments. This threshold percentage is determined by the Consultant based on the property owner’s/manager’s risk tolerance.

The Threshold Funding Plan is derived from the Baseline Funding Plan and includes a minimum reserve balance of zero dollars adjusted upwards by the threshold amount, accounting for inflation adjustments. The threshold dollar amount is calculated by multiplying the threshold percentage by the total one-time replacement cost of all capital expenses. However, it’s important to note that any overlooked expenses, interpretations, methods, pricing changes, variations, and lifecycle fluctuations that are beyond the Consultant’s control are typically not factored into the Fully Funded or Baseline Funding Plans.

Funding Plan Line Chart Example:
To illustrate the Threshold Funding Plan, a bar graph indicating the yearly NRSS contributions, capital expenses, and reserve balance for each year is required.

Funding Plan Table Example:
The report will furnish the following details for each year: the fully funded balance based on depreciation schedules, the current reserve balance, the percentage of funding, the NRSS annual contributions calculated as per the critical year(s) amortization plus the threshold amount, interest income, capital expenses, and annual contributions calculated per unit per year and per month.

This plan defines the required contributions for the current year to maintain a reserve fund balance equal to or greater than a predetermined percentage of the total one-time replacement cost of all items in the capital budget. This minimum balance cushion serves as a buffer.

School Reserve Study FAQ’s:

If you don’t anticipate a catastrophic failure, you won’t be able to prevent it. In our experience, many school property managers have been caught off guard by unexpected failures of major HVAC equipment or a roof that starts leaking during heavy rain.

We have observed numerous schools that lacked funds to address these issues due to their failure to reserve appropriate funds over the long term. We assist schools in reducing surprises by identifying and assessing their capital assets and devising a strategy for setting aside funds for future replacements – well in advance of an emergency.

To ensure that the reserve fund is sufficient for future repairs or replacements, it’s crucial to conduct a reserve study every three to five years, depending on the size and complexity of the development. By keeping a close watch on the condition of your assets, you can plan for future expenses and ensure that your reserve fund is adequate. Regular reserve studies are an effective way to plan for the future and stay ahead of any maintenance or repair needs.

Having a reserve study conducted can offer significant information regarding the state of your school’s assets and enable you to make informed decisions for the future. To maximize the benefits of the study, ensure that all required information is available before its commencement and ask appropriate questions. Additionally, it is crucial to analyze the results of the study and create a strategy to handle any potential issues.

zumBrunnen provides exceptional value to its clients with its knowledge, expertise, client service, and willingness to work together, all at a competitive fee.  They can speak the maintenance, repair, and construction language. This was an invaluable asset for our facilities assessment. Our finance council said it was the best money they have ever spent to help budget and control capital expenditures for maintenance and repairs.

Kenda Laughey
CFO - Southminster

Reserve Study Clients

  • greystone
  • ziegler
  • hjsims
  • beacon-1
  • woodward
  • covenant
  • grayco
  • kennesaw-state-university
  • fiftythirdbank1
  • abhow

Your Trusted School Reserve Study Partner

At zumBrunnen, we have extensive knowledge of the specific needs of school properties when it comes to reserve studies. With over 30 years of experience in the industry, we offer valuable expertise and are able to identify blind spots that others may miss. Additionally, we have developed a unique software solution to streamline the process and provide a more efficient and cost-effective experience for our clients.

FacilityForecast® Software is a facility management solution that can assist in managing and planning long-term capital replacement and operating expenses for your school facility. Our software has a user-friendly interface, enabling you to forecast expenses, evaluate financial performance, and generate comprehensive reports quickly and effortlessly. Additionally, our team is available to offer customized guidance and advice.

We offer a range of reserve study services that encompass thorough budgeting and forecasting, prompt and precise financial reporting, as well as comprehensive reserve studies. By utilizing our services, you can have peace of mind that you are making informed decisions that promote the enduring financial wellbeing of your school.

We are confident that our reserve study services offer the best solution for school properties. Our services are designed to help you optimize your budget and ensure your long-term financial success.