Prices have increased for everything and if your reserves were not up to par before. You can bet they aren't now! See how much the 2012 price prediction was in 2005, for doing a sealcoat and the actual cost in 2007, differ.
In 2007, a sealcoat actually cost $12, 067.00 or .0921128 per sq foot. In 2005, it was estimated that the 2012, sealcoat cost would be .065 per square foot. The estimated price expected to pay in 2012, is 41.7% less than what the actual amount paid in 2007.
If we add 3% to the 2005, price for 2006 and 2007 it comes to only .0689 per square foot. Which is still 34% less than the actual cost for sealcoating asphalt in June of 2007. Reserve studies cannot predict price increases and this is a perfect example of how your community can get caught with your pants down.
When your pants are around your ankles and homeowners are nipping at your bottom line, board members tend to blame the reserve study company. However, it isn't their fault since they cannot predict anything more than a 3% cost of living increase. The only people to blame are the board members for not keeping a close eye on these things and calculating the fully funded amount correctly.
If your in this situation don't allow yourself to become desperate and fall victim to the lowest bidder. The attached is a warning issued in 2008, but times are still the same and are not getting better. It doesn't matter if your an individual or an HOA get a good warranty. Any reputable vendor will stand behind their product and doesn't charge for a warranty because it is part of the bargain price built into THE COST. If you do not get a warranty walk away.
2008 Asphalt Sealcoating & Paving Warning
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