3.77% under budget is how we got a 0% fee increase in 2018

We do our annual budgeting in October, which can be difficult because we don't have year end figures.

In October 2017 we projected a significant budget surplus. In other words, our total expenditures for 2017 would be substantially under the projected expenses. We didn't "skimp" on anything or hold back expenditures for the next year. The numbers reflected the actual, real and true expenditures, to the best of the knowledge of the board.

Of course, there are always year end surprises. For example, a nasty December can push up snow removal costs for the year. Significant icing can push up maintenance costs as we clear ice from roofs. Last minute bills can also have an impact. So I am inclined to think of 1% as within the "noise band" which is about  $13,500. We have to do substantially better to consider holding fee increases at 0%.

BTW, the change in our painting schedule and approach in 2011 has saved this association nearly $9,000 each year. That's an example of how we've achieved these results.   These things add up. I'm always preaching incremental, continuous improvement, but not everyone on the board believes this. The long term results speak for themselves. There are lots of gimmicks that our boards have used to achieve short term results. Shame on them!

When our association is under budget, any surplus is put into reserves. However, this can also be used to the benefit of the owners.

In January 2018 we got the final numbers. We were 3.77% under budget for the year. In other words, our 1.50% fee increase in 2017 was unnecessary.  We can't turn back the clock and I certainly don't want to undershoot in any year. In fact, some seasoned board members continue to adhere to the unsubstantiated belief that we need fee increases of at least 3% each and every year.

However, during the budget discussions in October 2017 which I prefer to call "negotiations" it was apparent that an increase was unwarranted. Those present voted for a 0% fee increase based upon 2017 data and 2018 projections.

I want to point this out: what we saved by a lot of hard work over a period of years reduced expenditures in 2017 by an amount equal to a 3.77% fee increase.  I'll let that sink in.

There is micro-management and then there is effective management. I prefer to be effective, which is reflected in this chart. Blue are actual fees per month per owner and red is projected. I joined the board in 2010.