How is the
Budget Communicated?
The community's budget directly impacts each individual owner and their financial future, so it's
important to communicate the budget with them. For some associations, the budget is subject to
member approval, too, and requires a vote from homeowners during the annual meeting. However, not
all communities operate the same way. Your association's governing documents or state laws will detail
how and when it's mandated to communicate the budget and who will need to approve it.
Still, the more information you share with homeowners, the better. Owners value transparency, and open
communication will only foster a positive community living experience. Consider updating homeowners
on the budgeted revenue-to-expense variance each month through the member newsletter or other
private channel.
When presenting the budget at the annual meeting or another scheduled meeting, be sure to highlight
the benefits of the association and demonstrate how the expenses within the budget create and protect
the value of their investment. To increase understanding and support, try these budget presentation tips:
• Conduct a budget education session
• Use well-crafted explanations and graphics
• Be transparent with the calculations behind the final numbers
• Use expert recommendations and publications to support the board's decision
• Include a comparison column from last year's budget
• Share financial progress throughout the year—not just at budget time
