Budget Development and Assessment Determination Process

Started by GeorgeS21 • 11 replies • 715 views

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GeorgeS21
Posts: 3,705

Posted:

Same neighborhood as before.

Getting some things done, but I wanted to ask opinions on how to do the next year budget development ...

Bylaws call for development in Oct/Nov ... no issue there. We have tasked the treasurer a couple of times to develop a budget, analyze the level of funding required, and develop an assessment figure that works, given 50% of the 189 owners actually paying it.

Should broad discussion of the numbers shift from "Treasurers Report" to "New Business" to ensure it gets sufficient air time and discussion?

Could be done either place, I think - however, by having it in New Business it gives some of us a better opportunity to address it, act and provide motions for voting.

Thoughts?

DouglasK1
Posts: 2,038

Posted:

We always have a separate board meeting just to work on the budget.

Escaped former treasurer and director of a self managed association.

GeorgeS21
Posts: 3,705

Posted:

Thanks, Douglas ... yes, we did that in another neighborhood, as well.

I'll broach that at our next meeting - many of the Board members have a hard time focusing on financials :-)

It might make it easier than mixing business.

Maybe we eliminate a general Board meeting and just put out an agenda with "Financial Analysis and Development of 2019 Assessment" as the only topic for the next meeting? Nice and clean that way - would seem like the President could call the meeting, provide the agenda, per our rules, then we only work on that topic. Also provides heads up to the community.

Other thoughts?

BillH10
Posts: 1,215

Posted:

Only 50% are paying assessments? Is this a voluntary association? If not, what are you doing about the 50% who are not paying?

RichardP13
Posts: 3,836

Posted:

Quote:

Posted By BillH10 on 08/18/2018 1:14 PM
Only 50% are paying assessments? Is this a voluntary association? If not, what are you doing about the 50% who are not paying?

He forgot to mention the"voluntary" association bit.

KerryL1
Posts: 14,519

Posted:

We generally have a preliminary open meeting on the budget and then a separate open one only to hammer out the details. We didn't last year and it was a disaster

GeorgeS21
Posts: 3,705

Posted:

Bill,

Sorry - figured I have posed s much about this circumstance that everyone knew :-)

Yep - voluntary HOA with mandatory CCRs.

GenoS
Posts: 4,262

Posted:

We separate the Treasurer's Report from other financial matters. We have a Finance and Budget committee with the Treasurer and a couple of other members on it. Information on the planning and development of next year's budget would be contained in a report from that committee given at a board meeting. The Treasurer's Report is really quite brief every month.

BillH10
Posts: 1,215

Posted:

Richard and George, thanks for the clarification

SheliaH
Posts: 6,967

Posted:

You said some of your board members have a tough time focusing on financials - that's not good because that's a fundamental part of what they do. You've received good suggestions already, but I would also suggest some board member education. The community association institute (CAI) has several good books on the subject that aren't that expensive. You can also check if there are local chapters in your area that sponsor seminars on the subject - if so, I'd suggest all of you attend so you can get more comfortable with the task.

If it is not right do not do it; if it is not true do not say it. Marcus Aurelius

TimM11
Posts: 354

Posted:

Quote:

Posted By SheliaH on 08/20/2018 7:56 AM
You said some of your board members have a tough time focusing on financials - that's not good because that's a fundamental part of what they do.

You're completely right, of course, but in my experience, many people who get on HOA boards just want to be enforcers rather than administrators and managers. I have to do a lot of hand-holding in mine when it comes to financials and budgets.

GeorgeS21
Posts: 3,705

Posted:

Good idea, Sheila ...our, er, age demographics make that an uphill battle ...

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