New Year, New Association Budgets and Assessments

By: Brandi Pearson, Verity Property Management

January is a month of New Year cheer, and new Association budgets and assessments. It is the Board of Directors fiduciary duty to approve their Associations budget of anticipated revenues and expenses for the new year based on contract amounts, prior years actual expenses, and levels of services desired for the community. It’s also a best practice to provide the Board and members a budget narrative which explains critical budget line items. To avoid confusion and questions and provide transparency, a sound budget needs to be shared with the members. This may also be required by the Associations governing documents and state statutes.