Budgets for 2021 are developed in the fall of 2020 for most of our 250+ associations. Boards must approve the final budget by mid-October. Whether your HOA is a CMA client or not, it is now time to scrutinize and prepare your 2021 budget.
Covid has stricken Texas hard, and your HOA budget may have felt the hit. We recently asked several of our managers, “What impact did unexpected pandemic expenses have on association budgets? What costs might your community need to budget for in 2021?” They mentioned a number of expenses they’ve seen in their communities or will plan for next year. Some of these items may have been covered as emergency expenses in 2020; however, it’s prudent to anticipate that some expenses of Covid may carry over for longer term costs and improvements.
Does your 2021 association budget need to address:
New signage for health and safety, i.e. social distancing reminders in parks and playgrounds, pool rules and hours, etc.
Increased monitor hours to count heads at the pool or other amenities
Increased porter service for cleaning
Increased janitorial supplies
Modifications and upgrades to facilities:
Hands- free toilets, faucets, paper towel dispensers
Foot pulls for doors
Installation of plexiglass barriers
Permanent hand cleaning stations
Ground markings expense
Cost for a subscription package for various virtual meeting providers
Cost for an amenities reservation system (to reserve pool time, etc)
E-voting service to conduct annual meeting elections and other surveys of owners
Increased legal fees, whether to draft revised pool waiver language or to respond to issues and demands from owners
Additional communication costs, for mailouts
To read more about HOA budgets and CMA’s procedures, see the article, What’s Missing from Your Association’s Budget? If you would like to learn more about specific budgeting processes, special services such as e-voting and how they may help to better align your budgeting with actual expenses, give CMA a call!
If you found this article helpful, you may also find other topics relevant to your HOA on this blog at Community. Well-Served.
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Headquartered in Plano, Texas, CMA has three regional offices and numerous onsite locations providing contract management services for more than 250 residential and commercial communities, and more than 97,000 individual units.
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