zero base budgeting

Looking for opinions for taking a zero base budgeting approach for evaluating line item expenses in the operating budget.
I believe taking a fresh look at all line item cost starting with a zero sum in the budget perspective will result in savings.
Any thoughts on this

I think good boards adopt certain aspects of zero based budgeting without calling it that. The challenge is that it can take more time to prepare the budget (which some board members can't or won't put in) and you may not have the flexibility to move money around to diffrent line items every month.

You may also find unexpected events blew up some line items and now you really need an assessment increase to cover it. Most homeowners are used to paying a specific amount every month or year and may not be happy when told they have to kick an extra $50 or $100 starting in September and then face another increase when the new budget takes effect next year. A change like that may require an amendment to tye documents and you know how much a pain in the ass that is. And if you don't, read a few older conversations on this website about the subject.

All of that said, I do like the zero based approach when considering what major projects the board considers for the upcoming year. It's not just about the money - there should be more thought on whether this is someone's pet project or something that will really benefit the community. You'll have to ask more questions about contractor selection, length of the project, how much disruption to everyday life, etc.

This is one of those theories that sounds good in principle but often doesn't work well in practice. And it's window dressing. It can allow the board to feel like it's on top of things - because surely they're on top of things if they're doing this much danged work - but it hides the fact that the board is getting jerked around and second-guessing themselves whenever something unexpected happens. And something unexpected always happens, more so as a community ages.

Given that the majority percentage of spending is not discretionary, this seems like an overly complicated way to go about it. This is especially true for condominiums. Do you really need to justify paying the utility bills or community manager fee every month?

I agree with Dean - it's a good way to keep assessments artificially low. Spending needs drive the assessments, not the other way around. And keeping assessments artificially low *raises* costs over time because you're making short-term decisions and shuffling bills - rather like someone who lives paycheck to paycheck and runs out of money before the end of the month. You can get away with low assessments when a community is new and maintenance needs are minimal. In older communities, low assessments are generally a sign of mismanagement.