Board Workshop: Budget Planning

Here’s the link for tonight’s meeting.  https://meet.google.com/zhq-cvob-qqf

Section 2. Powers and Duties.  The board of directors shall have the powers and duties necessary for the administration of the affairs of the association, and may do all such acts and things as are not by the declaration, the Articles of Incorporation of the association, all these bylaws directed to be exercised and done by the members or officers. The powers and duties of the board shall include but not be limited to, the following:

b.  To prepare and adopt an annual operating budget, which budget shall be sufficient in amount to pay for all necessary expenses and expenditures to be shared in common by the respective owners of units, and including a reasonable reserve for repairs, upkeep, and replacement of the common area and for contingencies.

ARTICLE VI - ANNUAL BUDGET

​

Pursuant to Article IV, Section 2, paragraph b of these Bylaws, the Board of Directors shall have the power and duty of preparing and adopting an annual operating budget for the Association.  Each Lot Owner shall be given written notice of the time and place at which the meeting at which the budget will be considered shall be held, and such meeting shall be open to the Lot owners.  If a budget is adopted by the Board of Directors which requires assessment against the Lot Owners in any fiscal or calendar year exceeding one hundred fifteen per cent (115%) of such assessments for the preceding year, upon written application of ten per cent (10%) of the Lot Owners, a special meeting of the Lot Owners shall be held upon not less than ten (10) days written notice to each lot owner, but within thirty (30) days of the delivery of such application to the Board of Directors or any member thereof at which special meeting Lot Owners may consider and enact a revision of the budget or recall any and all members of the Board of Directors and elect their successors. In either case the revision of the budget or the recall of any and all members of the Board of Directors shall require a vote of not less than two-thirds (2/3) of each class of members of the association. In determining whether assessments exceed one hundred fifteen per cent (115%) of similar assessments in prior years there shall be excluded in the computation any provision for reasonable reserves made by the Board of Directors in respect of repair or replacement of the property or in respect of anticipated expenses by the association which were not anticipated to be incurred on a regular or annual basis. There shall also be excluded from such computation assessments for betterments to the property. An example of this procedure is if a previous year’s assessments for a lot were $12 per month, then the assessment may increase to $13.80 per month by Board of Directors action alone.  The proposed annual budget shall be detailed and shall show the amounts budgeted by accounts and expense classifications.