By Kristin Lahey, Treasurer 

 

The Finance Committee has begun preparing the homeowners association's 2027 operating budget. Over the next several weeks, we will review all vendor contracts, analyze six months of actual expenses through June and develop recommended budget amounts for each operating line item.

 

In addition, we will review the reserve study, prepared by Giles Flythe, and work with our committee chairs to identify anticipated reserve projects and expenditures for 2027. This information will help ensure that our reserve budget reflects both the reserve study recommendations and the association's planned capital improvement needs.

 

The finance committee will meet Monday, Aug. 3, at 7 p.m. to review and discuss the initial draft budget. Following that meeting, any recommended revisions will be incorporated before the proposed budget is presented to the Board of Directors for review and approval.

 

As required by our governing documents, the proposed 2027 budget will be included in the annual meeting packet distributed to all homeowners. We also encourage residents to attend our budget review session Wednesday, Sept. 23, at 7 p.m. This informal meeting will provide homeowners with an opportunity to ask questions, better understand the budget and learn more about the association's financial planning process before the annual meeting.

 

Six-month financial update

 

As of June 30, the association is reporting a favorable year-to-date actual-to-budget variance of $8,185.18.

 

The monthly financial statements are available for homeowner review on Slack under #committee-finance for anyone interested in learning more about the association's finances. Please keep in mind our financial statements are prepared on a cash basis, while most budget items are budgeted evenly throughout the year. As a result, some favorable or unfavorable variances simply reflect the timing of receipts and expenditures rather than actual over- or under-spending.

 

Certificate of deposit (CD) update

 

The association continues to maximize interest earnings by investing excess cash in federally insured certificates of deposit. As of June 30, we held 17 CDs totaling $394,923.80, consisting of:

• Operating funds: seven CDs totaling $174,217.41

• Reserve funds: 10 CDs totaling $220,706.39

 

During July, five CDs totaling $106,709.06 matured and were rolled over into new certificates, allowing us to continue earning competitive interest rates while maintaining a laddered maturity schedule. In addition, we anticipate investing about $80,000 in three to four additional CDs as excess operating cash is now available.

 

These investments help ensure that association funds remain secure, remain readily available as needed and continue to generate additional interest income for the benefit of the community.

 

New spending and procurement policy

 

The board will consider a new spending and procurement policy resolution at the August community meeting. The proposed policy establishes clear authorization levels, procurement standards, financial controls, reimbursement procedures and documentation requirements governing the expenditure of association funds. The goal is to promote consistency, transparency, accountability and sound financial stewardship while providing clear guidance for board members, committee chairs and volunteers.