To ensure the building remains strong for decades to come, the Board of Directors is pleased to share the link to our newly updated Reserve Study, as presented by Reserve Advisors, Inc.
Last updated in 2024 – the most recent was presented in September and accepted by the Board at the October 12th Board Meeting. It calls for a pretty substantial increase to the annual Reserve Contribution, which will impact the Association’s budget process, presently underway.
Think of a Reserve Study as the financial and physical roadmap for an association’s future. It is a comprehensive evaluation prepared by independent engineering and financial experts that accomplishes two main goals:
Physical Analysis: It assesses the current condition of a building’s major common components—such as our elevators, structural elements, roof, mechanical systems, and shared amenities.
Financial Analysis: It evaluates the reserve fund balance and maps out a multi-year funding plan to ensure we have the cash on hand when those components inevitably require major repair or replacement, helping us avoid unexpected special assessments.
In a rapidly changing economic climate, static long-term planning no longer suffices. Recognizing this, recent boards at Park Tower have made the deliberate decision to update the Reserve Study every two years. And this year, besides the impact of inflation, the Study took into consideration the impact of asbestos findings in drywall compound used by the original developer. That impacts the cost of every project which involves the displacement or cutting open of drywall.
This year though it is the dramatic impact of inflation, shifting labor expenses, and fluctuating costs for commercial building materials in recent years which made it very important to complete an update. The industry standard has been a three-to-five-year update cycle, but both Management and the Board agree that leaves too much room for financial surprises. By refreshing our study biennially, we can more closely track market realities, adjust reserve contributions incrementally, and maintain a far more stable, predictable financial course that protects property values and Unit Owner peace of mind.
We invite all unit owners to review the complete findings and details in the September 2026 Reserve Advisors Report.
