Even in the best of economic times, Managers and Board Members are held accountable to scrutinize and assimilate the many challenges that the budget process presents. This process can be overwhelming and tiresome.
Each year’s budget process involves an examination, evaluation, assessment and reality check as management analyzes and recommends to the Board which services to maintain and which ones to eliminate. Fixed as well as variable costs are scrutinized and the process requires careful research and investigation into prior years’ operations.
Competitive bidding and notifying vendors that services and contracts will be reviewed may create concern amongst service providers but is necessary. Conservation, energy efficiency and cost cutting measures need to be evaluated in order to provide creative ways to save the association money. Additionally, management needs to continually explore ways to improve and increase revenues – installing ATM machines, cell phone towers, vending machines, renting space, late fees, processing fees, charging for social events and other programs should be evaluated as well as the level of services and amenities the association requires. Together, management and the Board need to be practical and vigilant. It is management’s job to make recommendations regarding priorities and ways to maximize cash flow.
Managers and Board Members must all work as a team in an effort to create a solid financial plan. Looking at future needs, examining past expenditures, and planning for cost of living increases is the basis and common sense approach for dealing with the economy and these difficult times will assist and benefit all in the development of a comprehensive budget. Atlantic | Pacific Management prides itself in the community of property managers who currently work with the company.
Marcy Kravit is a Licensed Community Association Manager at Atlantic | Pacific Management and has earned the PCAM designation from the Community Associations Institute. The company has offices located in Boca Raton and Bay Harbor Isles. Ms. Kravit can be reached at mkravit@apmanagement. net. For more information about Atlantic | Pacific Management, call 305-867- 2245 or visit www.apmanagement.net