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Worksheet Instructions

This section presents instructions for completing the Required Reserve Worksheet.

Step #1: Enter the date

Circle whether you are completing or updating the worksheet and fill in the date. You should update this worksheet at least once a year. You can either make minor adjustments to the worksheet, or start a new worksheet each year.

Step #2: List your prioritized assets

List the assets from the Prioritization Worksheet. List the assets in order, with the highest priority assets (lowest number) first.

Step #3: List activities

For each asset, list the rehabilitation and replacement activities that you expect to perform over the next five years. Provide enough detail for each activity so that you can determine the cost of the activity.

Step #4: Estimate years until action needed.

For each activity, fill in the number of years before you will need to do that task. For annual activities, enter “1.” For replacement activities, enter the remaining useful life you estimated in step 8 of the System Inventory Worksheet.

Step #5: Estimate cost

Fill in the expected cost for each activity. Make sure to include the complete cost, including preparation, clean-up, removal, and disposal of any waste.

If you expect to sell an asset at the end of its useful life, subtract the estimated sale price from the cost of a new item and enter the difference.

Step #6: Calculate the reserve required per year

For each asset, calculate the reserve required by dividing the cost by the years until the action is needed. This is the estimated amount of money that your system needs to set aside per year for that asset.

Step #7: Calculate the total reserve required in the current year

Add the reserve required per year for each item to calculate the total reserve required in the current year. This is the estimated amount of money that your system needs to set aside, starting this current year, if you want to pay for all of these rehabilitation and replacement activities.

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Introduction to the Required Reserve Worksheet   Example Worksheet