CT August 2026

A Manager’s Perspective on the Community Association Budget By Erin O’Reilly, CMCA, AMS, PCAM, FirstService Residential

“Budget development is one of the most important

responsibilities managers and boards undertake each year...”

P reparing the annual budget is one of the most important responsibilities undertaken by community association boards and managers. It is important to view the budget as more than a financial document—it is a strategic roadmap that guides operations, maintenance, and long-term success of the community. Budget develop ment is one of the most important responsibilities managers and boards undertake each year, The decisions made during this process directly impact the association’s ability to deliver the services and amenities residents expect while maintaining financial stability. Homeowners often view the budget primarily as the calculation that determines their assessment fees. However, the budget is much more than that. It is a strategic planning tool that aligns the association’s financial resources with its operational goals and long-term objectives.

A well-prepared budget helps the board anticipate expenses, prioritize projects, and preserve community assets. It also promotes transparency by showing how assessment dollars are allocated. When residents under stand where their money is being spent, they are more like ly to appreciate the value of responsible financial planning. One of the greatest challenges during budget preparation is balancing homeowner expectations with the association’s financial realities. Residents expect well-maintained common areas, updated amenities, enhanced security, and responsive service—often without significant increases in assessments. Managers work closely with boards to evaluate current expenses, forecast future costs, and determine the level of funding required to sustain operations, meet reserve obli gations, and address deferred maintenance. This requires careful analysis and thoughtful planning. CONTINUES ON PAGE 42

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AUGUST 2026