July2016

MANAGER’S PERSPECTIVE... from page 36.

both current and future homeowners, which is everyone’s responsibility.

3. Budgeting is largely analyzing historical data and current contracts! When preparing your budget annu- ally, prior performance and current contracts are a majority of the bud- get puzzle. Whether it is trying to gauge the ever illusive snow budget six months in advance of snow sea- son or determining insurance renewal premiums, using historical data to observe trends along with operational data (recent insurance losses, as an example) can help provide insight into future costs. Even if you have an extreme year for an expense, looking at a multi-year average and adjusting for extremes can be a reliable method for planning non-contracted expenses. Using an updated reserve study helps normalize reserve contributions year after year, which also helps make budgeting easier. It is important that you go into the budgeting process with an objective eye. Analyzing expenses, review- ing historical trends and entering contract data first will allow you to see the association’s realistic bud- get. Nobody wants to pay more, but to keep an association finan- cially healthy, it must have sufficient income to meet ALL of its expenses. By budgeting expenses first, you can get a real idea of what income 4. Always budget expenses before income!

The Service You Deserve Taylor Management Company has been managing community associations for decades. We have been recognized

by the Community Associations Institute (CAI) as an Accredited Association Management Company (AAMC) and by the Institute of Real Estate Management (IREM) as an Accredited Management Organization (AMO). These designations are accorded for the highest level of ethics and professional management in the industry. Leaders in Professional Community Management for Decades!

80 South Jefferson Road, 2nd Floor, Whippany, NJ | Tel. 973.267.9000 100 Franklin Square Drive, Suite 203, Somerset, NJ, NJ | 732.764.1001 42-2 Harmon Cove Towers, Secaucus, NJ | 201.325.8500

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