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JoyceB3 (California)
Posts: 20
Posted:
Our HOA did not budget wisely to include some much needed irrigation changes and repairs, also some structure damages due to a lot of extra moisture. The irrigation oversprays etc. are another problem. How can we get more money into the operating budget now, not next year?
SusanW1 (Michigan)
Posts: 5,202
Posted:
Re-visit your budget. Scrimp and save and move any unspent budgeted monies over to this category. Hopefully, it is only your board that needs to approve the new plan (budget) without having to go thru a membership vote.

SteveM9 (Massachusetts)
Posts: 3,699
Posted:
- Cut expenses, and put that money toward what you need.
- Reserve Fund
- Special assessment
- raise dues
JoyceB3 (California)
Posts: 20
Posted:
Thanks for the suggestions. I believe that we have looked at fence repair allotments and a couple of other areas, but still seem to be falling short. We should have estimated operating cost, where repairs and replacement in the irrigation system were quite obvious to home owners, but apparently not the management company nor the board. I now am on the board of directors and questioned why the operating budget had not changed since two years previous. The management said, that they had taken the two years previous to make the budget. Not to bright as I see it, and now we have problems.
We have already from other circumstances raised dues twice and added an extra assessment to cover insurance that was neglected to be figured in with a large increase in coverage and rates. We do not have to put any more burden on the homeowners. Many have become unemployed, like everywhere else.
Thanks for trying to help.
Joyce B3
SusanW1 (Michigan)
Posts: 5,202
Posted:
Joyce - do you have a Reserve Fund based on an inspection and repair / replacement costs for all your common areas components?
AnnJ2 (Colorado)
Posts: 120
Posted:
If you need to do an overhaul of the irrigation system to include modification and replacement that can be considered a reserve expense. if you are only doing random head changes and moving heads a few feet this way or that way you could not consider that reserves. Look at your overall need on the irrigation system before you automatically make the jump that it all must be opertaing expense. the irrigation system is a capital component although frequently not regularly includd in a reserve study unless asked for, but if you look at what it woudl cost to replace the system it is tremendous and should be included especially in an aged community.
MaryA1 (Arizona)
Posts: 7,043
Posted:
Joyce,

I know what I'm going to say will do nothing to help solve the problem at hand; however, I see your biggest problem as having a PM who is inept at preparing a budget and board members who are no better. It's one thing that the PM didn't know how to review all the line item accounts in determining what the next years expenses might be; but it's another for the board to not ask relevant questions. Unless something is done about this, your budget problems will not go away. Raising dues and asking for special assessments just does not cut it. As for reserves, I would not be surprised to learn that you either do not have a reserve fund or you have one that is inadequately funded. Please tell me I'm wrong about this!

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