You are viewing the print version of How to Draft a Budget. It is also available as a digital book.
Everything you need to know to draft your association budget now available in one handy guide. Find out how to get started and what needs to be done to prepare. Learn how to factor all your expenses from administrative costs to xeriscaping. Covers operating expenses, capital improvements, insurance and risk management, overhead, administrative expenses, taxes, maintenance, and more. Contains reasonable and workable suggestions for balancing a budget and presenting a budget to homeowners successfully—even when you’re raising assessments! Drafting an association budget doesn’t have to be stressful or overwhelming. Follow the steps offered in this helpful guide.
"I'm pretty passionate about this type of education, and this is a great publication!"
Gayle L. Cagianut, CPA, Bellevue, Washington
CONTENTS
PREFACE
What Is An Association Budget?
Why Are Budgets Important?
Budget Structure
What This Book Isn’t
Advice to Board Members
I: GETTING STARTED
Set Goals
Develop a Schedule
Gather Documents
Due Diligence
The Budget and Finance Committee
Conduct a Reserve Study
Survey Residents
II: THE OPERATING BUDGET
Operating Expenses
Capital Improvements
Insurance and Risk Management
Overhead
Administrative Expenses
Taxes
Maintenance
III: THE RESERVE BUDGET
The Reserve Study
The Component Inventory
Who Conduct a Reserve Study?
Legal Requirements
Reserves and Maintenance
Reserve Study Updates
Reserve Component or Operating Budget?
Infrastructure Items
IV: REVENUES
Assessments
Other Income
V: BALANCING THE BUDGET
Calculating Assessments
Increase Assessments
Reduce Expenses
Find New Revenues
Out of Balance
Allocating a Surplus
VI: PRESENTING THE BUDGET TO HOMEOWNERS
The Budget Package
The Homeowner Forum
Presenting the Final Budget
Final Approval
APPENDICES
1. Common Cost-Cutting Ideas
2. Minimizing Legal Fees
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