Budget Workshops and Planning Sessions By Wendy Murray F
or community associations on a calendar fiscal year, now is the time to hold budget workshops and strategic planning sessions. A Finance Committee or Budget Ad Hoc Committee may perform these duties or the Board of Directors. Typically, projections and
plans are
performed for the upcoming year as well as 5, 10 or even 20 year plans. There is not one set method for all associations however, the tips below may help as you consider what is best for your community:
Mission, vision and goals are a great place to begin. What does the Board hope to accomplish during the upcoming year? 5 years or beyond?
Short and long term planning helps for budget development.
What components are reaching the end of their useful life? Roofing, painting and paving are often items that are included in a reserve schedule.
Having a Reserve
Study performed can help with the planning process as life expectancy of the components is projected as well as reserve funding.
If there is a component that you
are the most concerned about upcoming repairs and replacement, it is wise to obtain the input and feedback from 1-3 vendors as well as proposals to accomplish.
The
proposals can be analyzed and then budget projections performed.
If you discover that
your association needs to perform capital projects that have not been reserved for then you can contemplate a line of credit or loan to accomplish them.
The strategic plan can help to outline objectives and plans, and a roadmap to get there as well as implementation of ideas and forecasting.
Having a financial
and maintenance strategy in place helps in analyzing your operational plan and doing budget projections.
There are several resources that can be utilized during the process:
• Community Associations Institute has an online bookstore for both members and non-members,
www.caionline.org
• Licensed Community Association Manager
• Professional Engineer or Reserve Specialist
• Association Specialist Each community is different.
Knowing
your goals, plans, needs and expectations will help you during the budget process to customize your projections according to your strategies. Association specialists can assist you in tailoring a capital improvement loan according to your phased plan and expectations. ◆
Wendy Murray, VP Relationship Manager Executive Bank 27911 Crown Lake Blvd., Suite 237 Bonita Springs, FL 34135
Second Quarter - 2016
www.southgulfcoastchaptercai.com
ommunity 9 CAI
VOICE
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