Bill Barnard
According to the calendar, summer is officially over, but we are enjoying the most beautiful temperatures this time of year, so it still feels a bit like summer. From an operations perspective, we are working hard to finish projects before the busier season and complete the overseed process to get ready for winter.
One of the most important operational tasks at this time of year is budgeting for next year. It is a very important and complex activity with many moving parts. The HOA operating budget is a projection of the money needed to cover the Association’s operating expenses and provide adequate reserves for repair and replacement of the many assets the HOA owns and maintains. The importance of the budget cannot be overstated, and it is our yearly road map for operational success. It drives our maintenance plan, our social activities, capital improvements, pricing, and much more.
The budget process starts at the beginning of August with labor planning and scheduling operating hours for the upcoming year. We then gather the data and information that is necessary to put together our expense budget. Finally, we look at projecting the repair or replacement of reserve-funded assets to update our long range plan. We also develop a plan for major construction projects. The more knowledge and information that we can gather prior to the budgeting process, the easier and more accurate the process will be. Each department director puts together their portion of the budget, and I work closely with our experienced staff to put together a comprehensive draft of the next year’s budget. We will host a Zoom meeting for homeowners in early November to present a summary of the draft budget prior to presenting it to the HOA Board for final approval at the November Board Meeting, which is also open to all homeowners.
We continue to face many challenges that we must consider when compiling the 2023 budget. Labor and wages continue to be our biggest challenge with continuing issues nationally in hiring, rising wages to compete in the labor market, and the continued incremental increases in minimum wage here in Arizona. We still are facing increasing costs of utilities, materials, and supplies as well as the difficulty in procuring many items. Finally, getting outside contractors and service providers to bid and complete projects in a timely manner has become a major hurdle. Despite these challenges, we are focused on presenting a budget that allows us to maintain PebbleCreek as one of the premier active adult communities in Arizona.
As always, I hope you are living your best life here in PebbleCreek.