2025 Budget - What's Wrong? Part 1

 OK, here goes.

What's wrong with the 2025 Budget?

Look at Line 4700 in the Income Section. That's "Interest Income".

The Finance Committee estimated the HOA will receive $5,000 in interest earnings in 2025. Is that reasonable? Or is it only 10% of what the HOA is likely to receive?

The 10/31/2024 Financial Statement included a typewritten sheet that listed money in HOA accounts.

Edward Jones:

Reserves:

$242,866.35 at 5%

$109,929 at 5.1%

$116.140.36 at 5.15% *

$146,847.12 at 5%

Operating Expenses:

* $116.140.36 @ $5.15% (I guess no one noticed that this amount was listed also under Reserves!)

Money Market Reserves:

$114,631.51

Money Market Operating Expenses

$241,183.98

South Carolina Federal Credit Union

$124,635 @ 5.65%

How much interest will that be?

One year's worth of interest (at interest rates shown) totals $38,115.16 (excluding the account that is listed twice).

Assuming 4% on the Edward Jones Money Market accounts, that's $14,232.62.

So, won't the HOA earn $52,347.78? in 12 months?

Why did the Finance Committee put only $5,000 in the Budget?

What will the HOA do with the other $47,347.78? Spend it on items that should have been in the Budget?

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