Budget

Is budget discussion allowed to be in executive session at a Board meeting?

We have no salaried association employees. Can members view the budget before it is approved? I know of nearby communities that have budget committees that encourage their members to attend and learn about the budget before the Board approves it. They even encourage members to give their input at the homeowners forum or in writing to the board.

If they attended the meeting of the Board where the budget is discussed, then, per VA § 55-510.1:

Unless otherwise exempt as relating to an executive session pursuant to subsection C, at least one copy of all agenda packets and materials furnished to members of an association's board of directors or subcommittee or other committee thereof for a meeting shall be made available for inspection by the membership of the association at the same time such documents are furnished to the members of the board of directors or any subcommittee or committee thereof.

Therefore, providing you were at the meeting, you should be able to see the initial draft and the final approved draft. These may or may not be attached to the minutes of the meeting.

Based on what's been cited here and nothing in the budget is of a confidential nature, you should ask your CM, if s/he's responsible, to place the budget on the agenda of an open meeting.

If the CM won't comply with the law, you & others should make sure the Board knows that you understand the law in this regard and want to the budget discussion to take place in an open meeting. And, per Tim, request that the draft of it be available to owners when directors get their copies.

We don't need to go that far in CA, but we do discuss the budget in at least one open meeting and sometimes it takes 2-3 to hammer it out.

Well, ask.

Something along the lines of, "I've read and believe I have a good understanding of VA § 55-510.1 and I'm unclear as to how the discussion of the budget would be covered under that statute to be within executive session. Would you please elaborate on your basis for your answer?"

The budget process should be totally open. For the HOAs we manage a draft budget is prepared and emailed to all Board members. An open Board meeting is held where any revisions are made; and then the Board approves the budget. FYI, homeowners are notified of all Board meetings and are allowed input at Board meetings.

The Board approved budget is mailed to all homeowners with the annual meeting notice, agenda, and proxy form. At the annual meeting the homeowners ratify the budget. If it is not ratified (has never happened) then the Board must modify it and present the revised budget to the members. The key item for which homeowners show concern is usually any change in the assessment for the coming year.

"This is the example I use... It is like having your checkbook open on the dining room table. You as the parent and breadwinner are responsible for paying the bills and meeting demands. The general membership are like the kids. They certainly will always want the latest game but food comes first. When you tell the kids you have no money for the latest game, they have a right to see the checkbook and why that is so."

Melissa,

Unfortunately you use this "parent-child" analogy often and it is still as condescending as ever. A relationship between the board and members is a business relationship. One in which all have an equal stake.

If you take it as insulting then you are just taking it that way. I can not control how you feel about a statement and analogy. It makes you feel like it is condensending then your one who know how to be condensending...

Grow up... It is a freaking analogy NOT a college class on how to run a corporation...

Melissa,

I am sure you liked (and lived) that analogy when you were president. In my opinion it is condescending, unnecessary, and a good example of why so many owners dislike their boards.

Again, if you take that analogy as condescending that is YOUR issue. It's your problem and putting something there that does not exist or intended. Stop projecting your issues onto some analogy about parent/child relationship analogy. Last time I checked, parent/child relationships weren't bad things. They are bad if you feel like your being treated like the child...or proving yourself as such...

I like to consider myself a reasonable person and don't have an issue with Melissa's analogy.

It's not the analogy I would use but that doesn't mean it doesn't work.

I believe that we all agree that those who serve on an Association will sometimes need to use an anology or two to explain issues to some of it's members. Those who have a better understanding of the issue may find such analogies unnecessary and may even interpret the use of an analogy as an insult of some kind.

Helping some to understand an issue at the risk of alienating others is always a risk when using an analogy to explain things to a large audience who's background is unknown to the individual/group utilizing the analogy. Hopefully the benefits outweigh the risk and those who may feel alienated will understand that the goal was to help others understand an issue that they may not have understood before.

Thank you... The analogy is about as simple as you can get. Simply think of your home budget and how it would be if the requirement was to keep your budget posted on the refrigerator door. You as the parents and in charge of spending are not going to let your kids dictate what to spend money on. They can put in a request for an xbox game... However, everyone has to view the budget and decide new xbox or pizza?

Whatever your reason for finding such an analogy offensive is your perspective. It is a simplified analogy to cover the wide range of posters we have on here. Everyone on here demands to review the budget and the money be transparent. Well then that means posting the budget on the "refrigerator" door of the HOA and listen to the demands of the members.

Most board members want to run the HOA budget like they do their home one. I suspect most here keep their earnings, budget, and money management close to their vest. However, in a HOA where the membership demands transparency, openess, and a vote on spending items you as a board member can not do that. It means switching your private thinking brains to open public ones.

So stop being offended and taking this as some kind of better than you advice. It is simply an analogy where I did not over complicate and put it in some kind of weird professional whelm that does not exist in a HOA. Only requirement to be a board member is to be a homeowner.... There is no requirement on professional level degrees or experience.

Kerry

You beat me to the response.

Thank you Kerry for taking the time to explain exactly why the analogy does not work.

Would you appreciate your HOA Board to discuss how they want to spend your money in an executive meeting, which prevents you and the others from asking questions etc? Sometimes you don't have to read your documents to know which is the best way to go.