DennisG7 (Georgia)
Posts: 155
Posts: 155
Posted:
Our GA HOA of 189 properties is 21 years old. Usually during the last couple months of every year the HOA members receive a copy of the upcoming budget for the next calendar/fiscal year. This week we received a budget for 2022. I was stunned when I looked at it.
As most HOA's we have a number of sections that are broken out: Utilities, Pools, Tennis courts, Clubhouse, Admin, etc. I'm sure everyone has pretty much the same thing.
What is different this year is that the BOD or Management company did something I'd never see before. They took the annual budget for a line item, for example Pool Service contract, $6000 and divided it by 12, putting a projected expense of $500 per month in each month. Our pool contract and service is usually for about 5 months only and then the pool is closed down and we pay for no services for 6-7 months. I'm not sure why they did this and the managemnt company will not respond to any questions. (You can't contact the BOD, only the management company)
Another example is the Nat. Gas Utility Service. during the spring, summer and fall our actual monthly gas bill is less then $100/month, usually about $35-40. In Nov -March our bill is $250-$300+ a month. This years projecion shows the SAME amount expected to be paid for every month (we are not on any budget plan to smooth out payments).
Essentially the Management company has taken the annual cost and divided it by 12, showing the same amount to be paid monthly.
Another example is the one time annual corporate registration fee or $50 paid in Jan-Feb time frame. The budget shows $4.25/mo.
The income tax prep. is also shown like this. Instead of a single month, usually March, where is normally $200, it's split up to 12 monthly payments.
Is this typical?
Dennisg7
As most HOA's we have a number of sections that are broken out: Utilities, Pools, Tennis courts, Clubhouse, Admin, etc. I'm sure everyone has pretty much the same thing.
What is different this year is that the BOD or Management company did something I'd never see before. They took the annual budget for a line item, for example Pool Service contract, $6000 and divided it by 12, putting a projected expense of $500 per month in each month. Our pool contract and service is usually for about 5 months only and then the pool is closed down and we pay for no services for 6-7 months. I'm not sure why they did this and the managemnt company will not respond to any questions. (You can't contact the BOD, only the management company)
Another example is the Nat. Gas Utility Service. during the spring, summer and fall our actual monthly gas bill is less then $100/month, usually about $35-40. In Nov -March our bill is $250-$300+ a month. This years projecion shows the SAME amount expected to be paid for every month (we are not on any budget plan to smooth out payments).
Essentially the Management company has taken the annual cost and divided it by 12, showing the same amount to be paid monthly.
Another example is the one time annual corporate registration fee or $50 paid in Jan-Feb time frame. The budget shows $4.25/mo.
The income tax prep. is also shown like this. Instead of a single month, usually March, where is normally $200, it's split up to 12 monthly payments.
Is this typical?
Dennisg7