Annual budget increases & capital improvements
From: Peter Orbeton (peter.orbetongmail.com)
Date: Fri, 17 Feb 2012 13:47:03 -0800 (PST)
Nubanusit Neighborhood & Farm is a relatively young cohousing community,
and is looking to tweak the budget process. We've heard first-hand from
residents of other coho communities who have passed through about less
meeting-intensive processes than we have now, pre-determined annual budget
increases (tied to the CPI), and capital improvement funding not
necessarily earmarked to a project. The number of meetings (and time) spent
with our current process is probably, we've learned, directly related to
our newness. And because we still have development projects, we've
experienced annual budget increases that are not sustainable.

As the Treasurer, I've volunteered to gather information on other
communities, and have plumbed the C-L archives. While suggestions on how to
achieve a short and painless budget process are certainly welcome, I'd like
to hear how annual budget increases are determined so we can model ours for
more predictability. Do you base it on the Consumer Price Index, establish
a fixed dollar figure ceiling annually, or by some other means?

We have operating reserves and a reserve fund (replacement/replenishment),
and would like to also establish a capital improvement (CI) 'account.' Our
budgets to date have been line-item specific, and up until 2012, were for
the most part not funding multi-year projects. We've heard of other
communities with CI accounts that are tapped when a team/committee brings a
proposal forward, and are funded annually based on a pre-determined amount.
So, my questions on this topic are do you have a CI account, how is that
account funded, what is the process for withdrawing from it.

I'll take responses directly if you would prefer. Based on the responses, I
may post a summary as well.

Thanks in advance.

Regards,
Peter Orbeton
Treasurer, Nubanusit Neighborhood & Farm
http://www.peterboroughcohousing.org

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