by Michael Hamline, Editor / Published August 2023
In speaking about budgets Dave Ramsey remarks, “A budget is telling your money where to go instead of wondering where it went.” When you know where the money is going, it can provide reassurance so that you don’t succumb to anxious thoughts and concerns.
On page 8 Will Simons, RS, EBP, with Association Reserves has written “Holding the Line: Leading Associations in Times of Financial Anxiety.” He points out the rising costs of ownership in a community association due to inflation, increasing insurance costs, and stricter budgeting requirements. In encouraging board members to lead the way in these tough times, he comments, “Tough times call for strong leaders, and…board members have made a commitment to their fellow owners that they will do what’s right for the association…”
Turn to page 18 to read “Budgeting Basics for Community Associations” by Jennifer Olson, CAM, with Centennial Bank. She says, “Avoid the status quo and take time to shop the
current cost of maintaining your community.” She also recommends a review of contracts and relationships with the association’s financial partners to make sure the community is receiving the most bang for its buck.
On page 22 “Money Makes the World Go Round” is a compilation of multiple financial tips provided to help boards of directors carry out their fiduciary duty in a responsible manner.
Leaf through the August issue to page 42 and read “Managing Your Community Association Finances” by Mark Evans with First Citizens Bank. He highlights various financing options to help with repairs and renovations. He also emphasizes the importance of having a banking partner that can help your community with your reserve account(s).
Flip over to page 50 to read “SIRS: New Considerations for a New Reserve Study” by Matt Kuisle, PE, PRA, RS, EBP, with Reserve Advisors. He points out how reserves for nonstructural items can be waived, but he comments, “…it’s helpful to understand if funding for nonstructural items should be waived and the implications of doing so.” He also makes clear that the language in Statutes 718.112 and 719.106 means reserves for SIRS items can’t be used on non-SIRS items, so this will lead to two separate reserve schedules.
FLCAJ hopes that as you read through the August articles they will help your community to direct where the money should go rather than leading to angry residents asking where the money went.