The operating budget remains in good shape for the first half of the year. All of the large items in the budget –Landscape Maintenance Contract, Landscape Repairs, Management Contract, Trash Contract, Snow Removal, and contributions to Capital Reserves – are on-budget or under-budget. These six items alone account for almost 90 percent of our annual operating expenses.
Within the other 10 percent of annual expenses, most items are within budget for the first half of the year. Two items, however, are somewhat over-budget. Legal Fees are more than anticipated because of several architectural issues requiring attorney input and support and because of the need for a legal review of the easements related to the water main project described above. Also, Miscellaneous Expenses are over-budget largely because the Board has needed extra assistance (above that stipulated in the management contract) from our management company to support the extensive agenda of the monthly meetings of the Board and the special Board/Community meeting last February that discussed the Board’s then nascent efforts to revise the Architectural Guidelines. As a share of total operating expenses, these over-budget items are small and can be easily covered by underspending elsewhere in the budget.
As for the Capital Reserve, it remains in good standing at somewhat more than $140,000.