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Budget Line Items
Budget
Narrative
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Budget
Introduction
The Windsor
Plaza Condominium Association budget provides for key benefits such as:
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Cold and hot water to all
residences as well as for the unit's water-sourced air conditioning and
heat pump
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Services such as daily trash
removal, daily janitorial cleaning, and snow removal
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Landscaping and cleaning of
courtyard and surrounding grounds
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Maintenance and repairs of the
building and infrastructure equipment
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Reserves for future replacement
or significant repairs of $3+ million in major assets
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Services and maintenance of the
swimming pool and spa
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Insurance for building property
damage and liability
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Online forms, service requests,
and other information at WindsorPlaza.org
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Professional management and
onsite personnel
The budget
consists of three major categories:
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Income items
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Operating expenses items
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Reserves
Income Items
Monthly condominium
assessment fees provide the major source of income, but the Association also
receives income from interest on the investment of its reserve accounts. The
reserve accounts are invested in either government- insured certificates of
deposit or U.S. Treasury securities. Other minor sources of income include
late fees and attorney’s fees collected on delinquent accounts, and
assessments for rules violations.
Operating Expense Items
These line items fund
the annual ongoing operational needs of the Association, such as fees for
the property management company, administrative costs, general maintenance
and major service contracts.
Reserves
Reserves are funds set
aside for future repair and replacement of major physical assets, such as
the roof, windows, hallway doors, exterior brick walls, elevators, carpet,
garage, swimming pool, courtyard, and mechanical systems. As our buildings
age, they require additional renovation and repair work. The reserve
targets and contributions to reserves are established by a periodic
reserve study by a professional engineering firm as required by the
Commonwealth of Virginia.
Budget Line Items
The income and operating expense line items in the budget include
mandatory and discretionary items. Mandatory line items are expenses the
Association will have to pay such as utilities, repairs, management,
personnel costs, routine maintenance, cleaning and/or janitorial services.
Discretionary items are those that are "nice to have", but may be a low
priority. An example of a discretionary item is a new sign for the building.
Typical budget line items are grouped into the following broad categories:
The
budget
narrative describes each specific budget line item in more detail.
Budget Process and Schedule
Preparing the annual
budget is one of the Board’s most important responsibilities. Input from
owners is very important and is part of the process. The Board welcomes the
advice and suggestions of owners in crafting a financial plan that addresses
the community’s short and long-term needs in an affordable and responsible
manner. The Assets Committee forms a budget subcommittee that researches and
prepares a budget with assistance from the property management company and
the Association's treasurer. Open budget meetings are held to obtain input,
refine the budget, and then finalize a recommended budget. The recommended
budget is then presented to the Board for consideration and approval. The
approved budget will then be mailed to owners.
The budget
process helps set and refine community
standards on the quality of services,
property appearance, and infrastructure. For example, it would be reasonable to
expect utilities to be provided with no interruptions each month. It is also
reasonable to expect things to work, such as elevators, garage doors,
lights, etc. People also expect to live in a fairly clean environment, which
again is not unreasonable.
Other Resources
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