07
EVALUATE CONTRACTS &
UTILITIES
With so much to do, it's easy for boards to forget about existing vendor
contracts and utilities, but these ongoing contracts could be costing
the association time and money. During the budgeting process, assess
contracts to confirm the association is getting what it wants and paying
the correct price. Also, contact all utilities to see if they can estimate
how much their services are anticipated to increase in pricing and
include these updates.
THINK ABOUT RESERVES
An HOA reserve fund pays for large-scale projects and unexpected
expenses. Subject to state regulations and governing documents, boards
must retain or contribute a certain amount in the community's reserves.
Usually performed every three to five years, review the most recent
reserve study and allocate monthly reserve expenses as directed by the
reserve analyst. It's necessary to fund association reserves so when
a reserve component needs maintenance, there's money on hand to
perform the work.
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