Once your condo board has prepared your annual budget, it’s time to present that budget to your members. Being fully transparent about the financial decisions the board is planning to make is an essential part of any board member’s fiduciary responsibility.
Instill confidence and trust in your unit owners by presenting a well-planned and professional annual budget for your Chicago condo association. Here are some tips for ensuring a smooth presentation.
● Spend significant time preparing for the presentation – Deliver a polished and professional budget by ensuring there are no mistakes in your budget. Have all board members carefully proofread the proposal and draft a cover letter to include with your budget packet. In your letter, introduce the proposed changes.
● Offer points of comparison – Members also want to understand what’s changing year over year. It can be helpful to spend some time reflecting on the previous year’s budget to show members what was spent and how that compared to the target. If assessments are increasing, explain why and how those increases are reflected in the budget.
● Be prepared for questions – Members will have questions (and likely some grievances). Give them an opportunity to be heard and do your best to clearly respond to their concerns.
● Give proper meeting notice – In order for the association board to adopt the budget, all unit owners must receive a copy of the proposed annual budget at least 25 days prior to the board meeting. Ensure timely distribution of the budget by effectively communicating meeting notices and documents.
As your board comes together to prepare and present your annual condo budget, don’t hesitate to reach out to us at First Community Management to ask your questions. We offer full-service professional condo association management for condos throughout Chicago.