Developing a successful budget.
No task is more important and more maligned in any organization than the development of the budget. What can seem like a tedious annual chore is actually the blueprint for the commitment of organization resources to priorities and programs. Effective budget development requires not only an understanding of the numbers, but also an even deeper understanding of the goals, objectives, and even expectations of all the residents of a community. Some tips for building a successful budget (and ultimately a successful community).
61. Obtain input from owners, board members, committees, and management.
62. Conduct research to ensure the budget is accurate.
63. Develop a month-by-month evaluation - don't just divide by 12.
64. Talk with contractors to estimate costs.
65. Be realistic.
66. Raise assessments if necessary.
67. Be straightforward about it - don't use gimmicks or emotional appeals.
68. Plan for the future.
69. Look for ways to cut expenses, but don't reduce the level or quality of services without telling the owners.
70. Communicate the budget to members. (Ah, that rascal communications again)
I frequently hear board members claim with pride that they haven't raised their community's assessments in years. I really worry about communities like this. What product or service has not become more expensive in the past two, five, or ten years. If you are not raising assessments - at least to cover inflation - you are not preserving and protecting your community and you are not serving your constituents.
