Even if you’ve done your reserve study and don’t have any large-scale assessments for the coming year, there are other factors that can impact the effectiveness of your budget year-over-year.
For more information on a reserve study check out our overview here.
What factors can impact budget/dues increases?
Budgeting is hard. There, we said it.
Some of the things that make it hard are unknowns. How can you plan for something that you don’t know if it will change?
You need to create a buffer for increases that you have no control of; examples of potential increases that may change after your budget has been approved:
- utilities – these often don’t come out until the first few months of each calendar year
- gas prices
- cost of maintenance-related services
- insurance increases
- increase in delinquency balances in your community
CSI recommends a 2-3% annual increase to allow for more flexibility and a buffer.
What should be on your radar now?
All dues increases are due to CSI Accounting by October 21.
After that, the final budget is approved by the Board and sent to the association members.
Schedule: Budget Ratification meeting if needed.
(What is a budget ratification meeting?: A meeting of the owners of the association to review the proposed budget that has been adopted by the Board.)
Note: When the budget includes assessments increases, large capital projects, or other financial issues, the Board may want to add an item to the agenda such as “open discussion on the draft budget” or convene a separate town hall-style meeting specifically for this discussion.
Remember: At the regular Board meeting two months before the new fiscal year begins, allow additional time for the Board to comment on the proposed budget.
As always, we’re here to help. If you have any questions start with your Community Manager, but our entire team is here to help you.