How do you determine if the community that you are joining is financially strong and has the ability to weather future financial storms?

Here are some simple questions to ask.

1) Ask for the community’s Standard & Poor’s Rating

• Foulkeways is rated BBB

2) Ask about the number of “Days Cash on Hand.” This reflects how long a community could operate with no additional revenue. This is a good indication of financial health and stability.

• Foulkeways has 398 days cash on hand. The average community has 306 days.

3) Ask about the community’s Cash to Debt Ratio. This shows how much cash a community has in relation to how much debt it has. It is expressed as a percentage.

• Foulkeways has cash equal to 60.8% of its debt. The average community percentage 35%. This means that Foulkeways has enough cash to cover over 60% of its debt.

4) Ask about the community’s Bond Covenants and if the community is meeting them. The most common ratio used by banks to judge an institution’s strength is the “Debt Service Coverage Ratio.” Simply stated, this ratio compares the cash received in a year to the maximum possible annual debt service.

• Foulkeways is required by our bond covenants to have 180 days cash on hand. Foulkeways has 398 days cash on hand.

• Foulkeways is required by our bond covenants to maintain a Debt Service Coverage Ratio of 1.15, meaning that Foulkeways is required to have 115% of its debt payments (Principal and Interest) in cash receipts. Foulkeways has a Debt Service Coverage Ratio of 1.79, meaning that Foulkeways received in cash 179% of its maximum debt service.

Most people believe that moving into a lifecare community is more expensive than staying in their home. Moving to Foulkeways is the best value possible when you consider the many services you receive.

Monthly Expenses		At Foulkeways
Utilities	Electricity, Local Telephone, Gas, Air Conditioning & Heat, Water & Sewer, Trash Removal & Recycling	Included
Home Maintenance	Carpentry, Plumbing, Electrical - Appliance Repair - Clothes Washers & Dryers included with every apartment. Yard Care & Snow Removal. We even change your light bulbs!	Included
Housekeeping	Weekly housekeeping. Sheets and towels included	Included
Dining	Flexible Dollar Plan	Included
Cable TV	Verizon FiOS Basic TV service Additional channels can be added at an extra cost.	Included
High Speed Internet	Free in the Library, the Meadow Café, the Auditorium and Activities. Connection available in each apartment at an extra cost.	Included
Property & School Taxes		Included
Transportation	Free bus service to local shopping centers.	Included
Prescription Drugs	Each resident receives a credit for $2,500 for prescriptions per year.	Included
Medical Care	Short or long-term stay in Personal Care or Skilled Care.  A Doctors Office is located on our campus.	Included
Cost of all of these services at Foulkeways		$0

Medical Expense Tax Deduction

You can deduct a portion of the entry and monthly fees paid to Foulkeways on your taxes, if you itemize. Both entry and monthly fee deductions on Schedule A are called "Prepaid Medical Expense". For 2009, the entry fee deduction amount is $77,178 per person. The monthly fee deduction for 2009 is $1,332 per month per person.