WCA Completes Budget Draft

The WCA’s budget workshop was held Aug. 28 and a draft is now available on WOW online. What went into the process?

Westchase Community Association (WCA) operates and executes its required duties based upon an annual budget. The budget is developed and approved by the board of directors, which then monitors the economic condition of the association through monthly financial reports. A well-constructed budget provides for the continuity of services, protects property values by maintaining a certain quality of life, and minimizes the chance of financial crises. The budget is essentially the association’s checkbook as it is the basis for controlling finances and determining the amount of assessments.

The budget is an educated estimate of the income and expenses for the year. A well-developed budget reflects the association’s responsibilities for maintaining the swim and tennis facilities as well as the cost, frequency and type of services which will be provided. The two main components in the budget are income and expenses. Assessments are the primary source of income for the WCA although interest, fines and fees for services are additional sources of revenue. Expenses are incurred through management of the association, maintenance of the facilities and capital improvements. Capital improvements are generally considered an improvement or a non-recurring repair in excess of $10,000.

The process of developing and approving the budget requires examination of past records, an investigation of positive and negative variances, the verification of current contract pricing and the acquisition of bids for proposed improvements. The strength of the economy should be considered as this will determine the members’ ability to pay assessments. Reserves are also an important component of the WCA budget and generally provide the income for the capital improvements.

The financial success of the WCA in these challenging economic times requires management to examine each portion of the budget carefully in order to predict expenditures and revenue for 2011. It is the board’s intention to protect, maintain and improve the Westchase community in a fiscally responsible manner that will address the needs of the community and protect the WCA’s assets. The 2011 budget is the product of months of involvement, contribution and concern by numerous residents. Their dedication will help maintain our current quality of life while allowing the WCA to end 2010 in a financially sound manner.

By MaryJo LoCascio

LoCascio is the WCA’s manager and can be reached at maryjo@wcamanager.com or 926-6404. A copy of the draft 2011 budget can be found in the Homeowners Association News box on www.westchasewow.com.