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"Good" Funding Level

Also referred to as "strong" funding level.

One of three broad funding levels on a spectrum ranging from 0-100%. It is a relative measure the financial strength of the reserve fund when compared to the capital load funding requirements over the planning horizon.


Attributes

Generally a good funding level is considered when the percent funded balance is between 71% and 100%. While 100% is ideal, a reserve fund above the 70% level should be considered strong because cash flow problems are rare. 

At this high-end level the owners can enjoy the following benefits:

This funding level is typically represented in a threshold funding model



Management Principles
The owners and their asset management team should ensure that the good funding level is maintained over the life of the building.
Funding spectrum indicating good/strong funding in the green portion of the spectrum
Fig. Funding spectrum indicating good/strong funding in the green portion of the spectrum.


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Fig. Positive cashflow maintained over 30 years as a result of a good/strong funding level.


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Fig. Comparison of funding levels at four alternative buildings, labeled A through D, where Building "C" is considered to be in the good range. 

See also:
Compare with: Related Concepts:

I. Care is trying to ensure that inflows match outflows, but this requires cooperation and teamwork
Fig. I. Care is trying to ensure that inflows match outflows, but this requires agreement on long-range stewardship, cooperation and teamwork.


Is "I. Care", our cartoon character, trying to raise funding levels faster than the owners can sustain
Fig. Is "I. Care" is trying to raise funding levels, but this may be faster than the owners can sustain.

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