One of the most important responsibilities of the Treasurer for PGI Section 22 Homeowners Association is preparing Section 22’s annual maintenance budget. Both Florida Statute and Section 22’s governing documents dictate the procedure and content of our annual maintenance budget. In addition to Section 22’s annual budget, the Board also requires the Burnt Store Marina Country Club, the Fitness Club and the Irrigation System to prepare an annual budget. The amenities’ budgets are approved by the Board, but are technically not mandated by law. The goal for all budgets is transparency and fiscal responsibility.
One topic that drives lots of conversation during budget meetings is reserves. Reserves are dedicated savings funds set aside by Section 22 to pay for major, long-term capital repairs, and deferred maintenance of shared community property. Two examples of Section 22 reserve projects are the funding for our three-year repaving project, and the funding of the new community wells for irrigation. Under Chapter 718 of the Florida Statutes, and Paragraph 6.3 of our Bylaws, Section 22 is not legally required to have reserves. With that being said, the Section 22 Board has had a long-standing policy of funding reserves. To help us identify what those reserves look like, the Board systematically does a “Reserve Study” to identify what funds need to be reserved to have cash on hand to fund major projects like repaving. Having adequate reserves avoids a special assessment.
Reserves are funded from two different sources. The first is through our annual maintenance assessment. A dedicated amount of our annual budget is put aside to fund reserves. The second is through the “contribution to capital” of new owners. New owners are required to make a one-time payment of $2500 to Section 22 as their contribution to our reserves. This year the Board projects new owners’ contribution to our reserves will approach $200,000.
How does the budget process work? Starting in late August, a series of workshops are held in which stakeholders discuss their budgetary requirements. It is during these workshops that such items as maintenance costs, new projects and reserve expenditures are discussed. The meetings are public, and notices are posted. Due to administrative requirements, meetings are typically held at Alliant’s offices.
After the give and take of the budget workshops, a proposed budget is prepared. Under our Bylaws, the proposed Section 22 annual maintenance budget is presented by the Treasurer to the Board at a Board meeting, typically in October. Upon motion and after discussion, the Board then votes to send the proposed budget and proposed assessment to all owners. The Board then must give all owners two weeks notice of the formal meeting where the budget will be adopted. Our Bylaws mandate the budget must be adopted by the end of November. All owners have a right be present at the annual budget meeting and give their input. After Board adoption, notice of the annual assessment is sent to all owners immediately. The annual assessment is due January 1st. If an assessment is paid late, the Board can assess late fees and interest.
Paying your assessment in a timely fashion is important. Every winter the Board is faced with tens of thousands of dollars in unpaid assessments. Part of the responsibility of being an owner in Burnt Store Marina is paying your fair share of the costs. This Board has made it their goal to make the budgetary process as transparent as possible. Budget meetings are open to the owners and the Board is responsive to your input.
The Board has a fiduciary responsibility to make sure money collected in assessments is spent responsibly. Putting together budgets takes a lot of time, not only for the Board but also for the many volunteers who make this community such wonderful place to live. Section 22’s financial records are posted online and updated monthly. Become familiar with our budgets and please don’t forget to volunteer your time!
