Winter has presented some very harsh conditions.  With the volume of snow & ice and extreme cold the costs may have already caused some cash flow issues for your association.  As we wind down the winter season, be sure to work with your Manager to assess your budget performance.  If you find you need to adjust due to the costs incurred, here are some suggestions: 

 

Short Term, 2014: 

• Adjust planned projects: Some projects may need to be postponed to 2015 or simply reduced in size in order to compensate for the excess winter costs.      
• Levy an assessment: Although asking for more money from the membership is usually not welcome, it is hard to ignore that this winter has been abnormal.  The best suggestion, if an assessment is determined to be needed, is to make the decision and announce it to the membership shortly after winter as it is easy to forget the seasonal issues     
• Review Reserves (Last Resort):  While not normally the best tactic, the Board can look to take funds from Reserves.  Be mindful these funds may need to be paid back as the Reserves are to be set aside for future capital expenses.    

Long Term, 2015 & Beyond:

• Contract versus "Per Push": It is a tough decision to make, but if your community can not handle the ups and downs of the winter season, a contract with a set monthly price is a way to curb costs.   
• Contingency or Slush Fund:  Instead of stealing from a Reserve Account that is meant to be utilized for a long-term capital expense, plan to set aside monies in a contingency account that is simply there to cover budget over runs. 

Hopefully these suggestions will help if changes need to be made to your budget.  No matter what you do, a budget is a best guess and as we are now experiencing, mother nature will always keep us guessing.     

We have now planned out our year's worth of Seminars.  Please plan to attend at least one of these Seminars this year.  These are free opportunities to learn from Professionals in our industry and also interact with other Board Member attendees.   Here is the schedule, please take time to visit our Seminar Page soon to register for a Seminar that you wish to attend. 


April 8, 10 & 14 @ 6:30pm
Topic: CPA changes to the Condo Act
Speakers: Carmen Kratz, Staff CPA
Locations:
CPM office, April 8
Brighton, Re/Max Platinum Office, April 10 (including Attorney Steve Guerra)
Lansing, TBD, April 14 (including Attorney Steve Sowell)


May 15, 2014 @ 6:30pm
Topic: Treasurer Focus Details: Financials, Statements & Beyond
Speaker: Accounting Staff of CPM
Location: CPM office
More Details/Register

June 19th, 2014 @ 6:30pm
Topic: Legal Seminar
Details: Amending the Governing Documents
Speaker: Attorney Steve Sowell
Location: CPM Office
More Details/Register

August: TBD
Topic: Modification or Architectural Requests

September: TBD
Topic: Budget Workshops
Details: Hands on Budget Preparation
Speaker: Kay Bushey
Locations: TBD