Crunching the Numbers

The budget process will begin in earnest in a few days. It might be helpful to review some frequently asked questions to refresh your memory about how this happens. This entry is devoted to basic budget questions. As we move through the cycle, I will provide additional updates.

WHY do we budget?
It costs money every day, to cut the grass, heat the pools, answer the phone, spray the bugs, clean the gutters, pickup trash, pay for cable and all the other things that keep Wildewood Springs going. The budget process is the formal evaluation and decision process that we use to plan what we believe it will cost to run this community for the coming year.

WHAT is the WWS budget?
The annual budget is the anticipated cost for the coming year. The total dollar amount is allocated by unit size to 558 units as maintenance fees.

The budget is comprised of two main sections.
The first section, Reserves, are monies we accumulate for capital projects such as roof coating, painting and paving.
The second section, Operating Expenses, are the everyday expenses incurred in running Wildewood Springs such as trash, water, sewer, electricity, insurance, administration and cable tv.

WHO creates the WWS budget?
The Budget Committee develops the budget with input from the Property Manager and from service providers. The Board of Directors approves the WWS Budget and the Owners approve the funding level for Reserves.

HOW is this done?
All those costs mentioned above are reported and tracked during the year. When the budget cycle begins, the current year's costs are reviewed and considered to develop the new budget. Anticipated rate increases for items such as insurance, electricity, gas, water and trash are factored into the equation. The schedule for large capital projects such as painting must be reviewed to verify we are accumulating reserve monies at an adequate rate to have funds when the projects are planned to occur.

WHEN does the process occur?
The budget process dates are tentative. Here are the milestones:

April/May
The preliminary Budget Committee meeting. This is generally an overview of the cycle.

August/September/October
There are a series of meetings where the budget components are reviewed and revised.

October
The budget is presented to the BOD tentatively in the October meeting.
The Board gives approval for distribution and budget copies are distributed to all owners.

November
Final Board approval is tentatively planned for the November meeting.


WHERE do the meetings happen?
The first committee meeting is scheduled for Tuesday September 8, 2009 at 9AM in the Wildewood Springs office. Watch for official meeting notices on the office bulletin board and additional notices posted on the cluster bulletin boards, Channel 95 and the reminder email notices. Budget Committee meetings are open to all owners. Additional meetings will follow and be announced in the same fashion.