ANNUAL BUDGET

Statement of Policy
09/30/08:
It shall be the policy of this Homeowners Association that:

  1. The Annual Budget must include provisions for expected short-term operating expenses and long-term maintenance repair, replacement obligations, and Reserves.
  2. Long-Term maintenance, repair, and maintenance obligations are to be substantiated by a detailed, qualified, and quantified Reserve Schedule (see Reserve Policy Statement).  It is REQUIRED that this schedule be updated every year as part of the budget process.
  3. Full Budget Disclosure must be provided to the membership.  In the event of a reserve shortfall, which would require a Special Assessment to bring the Reserves up to the required level, a Partially Funded Budget Disclosure, together with the Fully Funded Budget Disclosure, must be provided to the membership.  The membership may elect to waive the Special Assessment by voting for the fully disclosed Partially Funded Budget.
  4. Full and Partial Budget Disclosures must be mailed to the membership and the Annual Budget scheduled for approval at a regularly scheduled meeting in August of each fiscal year.
  5. In the event of a budget shortfall, requiring disclosure of a Partially Funded Budget for membership review, a ballot will be required with the budget mailing.
  6. In the event of a Partially Funded Budget disclosure, at least 33 1/3 of the membership must vote (a quorum of 125 votes).  Provided a quorum is established, a majority vote is required to approve the partially Funded Budget.  If a quorum is not established, the Fully Funded Budget shall go into effect.