Annual Budgets – Who should decide?

The answer obviously is the Board of Trustees who were elected to perform their fiduciary responsibility. Planning for annual expenses should be based on reasonable expectations based on past history and predicted trends.  Nevertheless there is always the underlying pressure to keep monthly fees in check. To many owners lower fees translate into higher property values.  It’s a delicate balance as lower fees can also send a property into a downward spiral of delayed maintenance with deteriorating conditions.  Some Boards will maintain lower fees and make up the difference at year’s end with an operating deficit assessment – it’s all a matter of philosophy.  Here’s question posed by a condominium owner regarding the Board function in setting a budget.

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