How is the annual budget determined?
Committees make budget requests for the following year to the General Manager starting in August. Request for Proposals (RFP’s) for competitive service contracts shall be started early in the year.
The General Manager, with assistance of the Chair of the Budget & Finance Committee, assembles the requests and determines whether any modifications or HOA fee adjustments are needed. The Budget & Finance Committee reviews the draft budget and recommends approval by the Board. The General Manager sends the budget out to residents in a formal mailing in early November prior to the Annual HOA meeting in early December. At that meeting, the Board approves the budget.
What is in the 2022 budget?
The Approved 2022 budget and previous year budgets are on the Financials, Budgets & Capital Funding webpage.
Who reviews our expenditures?
Every month, the Budget & Finance Committee receives a detailed financial report prepared by our Management company, Procom. This report shows any monthly or year to date variances from the budget. This allows the committee to spot any trends that might need correction in order to meet our approved budget. The General Manager presents a summary of our finances at every board meeting.
Do we always have a balanced budget?
Yes, the approved budget is always balanced in terms of projected income and expenditures for the year being equal.
What happens if we have a deficit for the year?
In the event that expenditures exceed income for the year, bills are paid from our accumulated surpluses known as Homeowner Equity or the Rainy-Day Fund. This would be the case before any special assessment is levied; a special assessment has never occurred in Symphony Village.
How often do we have deficits?
In the 10 years of audited budget history, we have only had one deficit (2015). This was primarily due to snow removal and irrigation repairs that exceeded the budget.
Who determines our monthly HOA fees?
The General Manager with input from the Chair, Budget & Finance Committee evaluates the HOA fee every year as part of the budgeting process. The General Manager passes the HOA fee recommendation to the board and community for approval at the December Annual HOA meeting.
How long has our monthly HOA fees remained constant?
The HOA fees have remained at $230 per month since January 2014. Prior to that, the HOA fee was $249 per month for at least 5 years. The goal of the General Manager, Budget & Finance Committee and the Board are to have a balanced budget with no HOA fee increase.
How much can the HOA fee increase?
Our governing legal document Declaration of Covenants, Conditions, and Restrictions allows the HOA fees to increase up to 10% per year without a community vote.
Who manages our investments?
The Investment sub-committee of Budget & Finance Committee makes investment recommendations to the Board. These are primarily low risk Certificates of Deposits (CD) that are laddered in due dates. Investments may also be placed in Money Market Funds (MM). The Investment sub-committee recommends purchase of these CD’s and MM’s from banks with the highest rate of interest and keeps them below the FDIC limit. Our investment policy is Appendix B in the Terms of Reference.
Do we have a Reserve fund?
Yes, we have a fully funded Replacement Reserve Fund.
What guides our Replacement Reserve Fund contributions?
The latest (2016) Replacement Reserve Study is based upon the anticipated life expectancy and expected replacement cost of our assets. The study recommends a yearly funding level so that we always have sufficient funds for replacement of expensive items over a 40-year study period. We contribute to the Replacement Reserve Fund on a monthly basis just like any other budgeted expense.
The Replacement Reserve Study is not a legal document but is designed to provide long term contribution and expenditure guidance. The study organization shall supply guidance, if requested
Do we update the Replacement Reserve Study?
We have had three Replacement Reserve Studies with updates every three to four years. The study is done by a professional organization that specializes in this. They review our assets and assess item remaining useful life and expected cost of replacement over the study period. This establishes a new contribution and expenditure baseline with a recommended annual RRF contribution.
How do items get charged to the Replacement Reserve Fund?
The Board votes whether a replacement expenditure is to be charged to the Replacement Reserve Fund.
Do we get financial audits?
Yes, we get annual audits from a professional audit firm. The audit report is generally received in May. The Budget & Finance Committee makes recommendations to the Board whether to accept the audit report.
Does the HOA pay taxes?
Yes, the HOA pays income tax primarily on investment interest. Our tax consultant makes an annual recommendation of the most advantageous method to file. The HOA does not pay real estate tax.
How do I get reimbursed for an expenditure?
It is advisable to get General Manager approval before you purchase any item or service. You must submit receipts for General Manager approval and reimbursement. Reimbursement will be by check and may take over a week for the check to be issued by our management company. The HOA office does not have any cash nor does it directly write checks. Many purchases require committee and Board approval and/or an RFP before commitment. Reimbursements would normally be for small items that many organizations would consider payment from petty cash.