How the Annual Budget Is (supposed to be) Built

How does the HOA come up with a Budget for the following year? A very important Guide exists in the Procedures Reference Manual (Art. III, §C, ¶4 (Page 17)). It's laid out step-by-step. If these steps are followed, there will be a solid budget for meeting the financial operations of the HOA.

A serious problem exists, when these steps are not followed. 

What happened in 2024, when the 2025 Proposed Budget was prepared? The same problem existed in previous years. The problem is not new.

Very likely, the Finance Committee followed the Guide, but no one outside the Finance Committee knows, for sure. There should be Minutes of every Finance Committee meeting, and those Minutes are open to inspection by every Member (homeowner) of the HOA.

Want to inspect them? Arrange it through the HOA office.

Prior to the November 12, 2024 Regular Board Meeting, the Finance Committee gave a preview of the 2025 Proposed Budget to the Board of Directors. That may have happened in the pre-board meeting held about a week before the Regular Meeting of the Board of Directors; the date of that meeting is unknown. It is never announced. 

It is believed that certain members of the Board indicated they would not approve a $50.00/year/household dues increase.

That forced the Finance Committee to violate the Budget Preparation Procedures in the Procedures Reference Manual and revise the proposed budget.

The Finance Committee should have presented its 2025 Proposed Budget at an open, public, Regular Board Meeting and recommended that the Board increase dues by $50.00/year.

It didn't do that. Why not?

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