annual meeting/ratify budget

This is the major problem with owners voting a budget up or down - you run the risk of going without one if people debate on and on about raising assessments or spending money on this or that project. I understand a homeowner vote if the assessments will exceed a certain percentage - your Association may want to consider changing the documents.

But until then - it seems to me it would be best to adopt the budget before the new fiscal year starts, so why not have a special meeting AND call for a vote in early November (so you don't run into Thanksgiving)? The budget could be presented in September and a special meeting held in early or mid October. That would give people a chance to review it and ask questions, and then cast the vote in November. Homeowners who aren't able to make the meeting could still cast a vote by mail (keep them secured and open them at the November meeting)

Amy

We do not have limits on when the budget must be presented as within 30 days such as your docs say. Our BOD prepares/accepts the new budget in January and begins operating under it.

Our docs allow the BOD to raise assessments (dues) effective Jan 1 without owner approval. The owners must be notified of any increase on or before December 1st and they have 30 days in which to call a special meeting to reject the increase. Put another way, the BOD does not need owner approval to produce and accept a new budget (including assessment/dues increases). The owners could only reject the budget.

Our owners do not much look at each budget line item. Their main interest is have my assessments/dues gone up. If they have not, the majority of our members could care less about the budget. The past Annual Meeting we had only two budget questions asked.

As I read your docs, it says the meeting is to consider ratification of the proposed budget but they then go on to say that a majority of owners (as in 51% of all owners) can only reject it. I do not read your docs to say owners must approve your budget. I read it like ours, they can only reject it.

One problem with a January budget meeting is you may not have all the year end close information to present. I suggest you have one meeting in April and operate the HOA under the old budget during the 1st quarter.

Amy, I suggest your association amend their Bylaws and their Declaration of CC&Rs if necessary to provide effective functioning as per RCW 64.38.025(3). One example is:

1) By the end of October: The Board approves the proposed following year's budget; and sets a date for the annual members meeting in last half of November.

2) By mid November: Mail notice of the annual meeting and the agenda to all homeowners.
The agenda can include election of Board members and ratification of the Board's approved budget. In Colorado it takes only 1/3 of the members present at a duly called members meeting to ratify a Board approved budget. And if the budget is not ratified the current year's budget shall continue until such time as a new budget is approved by the Board and ratified at a members meeting.

3) When there is an increase in assessment in the budget which has been ratified by the members then all of the members must be notified about the new payment schedule.

This timing normally will accomplish two key factors:
a) Requires one members meeting per year; all other business is at Board meetings.
b) The next year's budget and associated assessment are decided weeks before the first assessment payment for the next year is due.

For example: Our management company provides the Board of a townhome association with a proposed budget for the following year at their late October Board meeting. The budget includes the amount of monthly assessment. The Board decides and finalizes the budget at that meeting (so long as the assessment is not increased over 5.00% as defined by their Declaration of CC&Rs). The Board has always decided on an assessment increase of less than 5%. The annual budget is based on a long range reserve plan which has resulted in never needing a special assessment. From the approved assessment we then prepare coupons and a letter with budget information which is mailed in late November to every homeowner.