Some observations from the HOA budgeting process

Doing the annual budget in our HOA is always difficult. I wish more owners would attend the budget session but they don't. This year, fewer than 1% attended. We spent about 2 hours discussing the budget for 2016. But only three people in this HOA know that [other than board members, who are also owners.].

The board members take differing positions. I look at it as a balancing act. Balance projected and identified costs for 2016 with anticipated income via fees. Look at reserves very closely for the next 10 years. Take into consideration the possible financial well being and other costs for our 336 owners. Then mix this stew together and Voila' we can arrive at a possible outcome.

Other board members take very different views. Some operate from fear, others don't want to cater to the lowest common denominator. Others sit quietly and play "follow the leader." Frankly, I'm not satisfied with that.

I'm a very pragmatic guy. I know what it costs this HOA for each foreclosure and I do think we have an obligation to the shareholders. It is a balancing act.

For anyone who is interested, I've read reports that most probably anyone living on social security income will get the same amount in a check next year as they did last year. This is also true for many workers. No salary or wage increases for many in 2016. I do take the well being of our shareholders into account when looking into budgets and fees. [Posted at the Social Security Website October 15: "No Cost-of-Living Adjustment for 2016"  by  Jim Borland, Assistant Deputy Commissioner, Communications, SSA  - "The CPI has not risen since the last cost-of-living adjustment in 2015. As a result, your SSI benefit rate and, for most people, your Social Security benefit amount will stay the same in 2016."]

Unfortunately, HOA costs do increase from year to year. This shows up in contracts as well as utility bills. For owners, the problem might be more direct. In recent years health care has become an ever increasing burden and there is no indication that Medicare payments by retirees will be the same in 2016 as they were in 2015. Obamacare had become for many an insurance nightmare.

All I can say is, I'm aware of the bigger picture and I do take that into consideration when planning any finances for 2016.