SKI-BALL, or SKEE-BALL, is one of the oldest arcade games and one of the first redemption games. It is a game played by rolling a ball up an inclined lane and over a “ball-hop” hump that projects the ball into one of many bullseye holes; the holes are strategically placed as the smaller and more difficult-to-reach ones are worth more points. It was invented in 1908 by Joseph Simpson in Vineland, New Jersey. The game has had highs and lows in popularity over the years. Today you will likely be able to experience the game in bars or at indoor arcade facilities such as Chuck-E-Cheese.


Budgeting for an association may seem much like Ski-ball—an old game of trying to score the most points possible. The board and property manager are trying to balance wishes versus needs; planning for the known and preparing for the unknown; evaluating, comparing, and negotiating for the most “points” for an equilibrium between expenses and predictably steady increases in assessments.


Budget preparations are not an inevitable migraine moment. They can offer the exhilaration of a Ski- ball game—if the community manager and the board employ a disciplined step-by-step process:


Grab 10 easy and essential points by checking the association’s governing documents to determine and clarify all the association’s operating financial responsibilities — landscaping, maintenance costs, utilities, insurance, staffing, inspections, administration, accounting, taxes, and audits, etc.


Score another 10 points. Investigate the professionally prepared reserve study to assure adequate reserve funding is included in the budget.


Notch a big 20 points. Collect historical data by comparing the year-end financials for the last few years. This will provide the board and property manager with a good understanding of the expenses and income, identify any consistent over budgeting or under budgeting, and pinpoint possible upcoming maintenance or inspections.


Show your skills by scoring 20 points. Review current contacts for possible price increases or expiration. Request new proposals from current vendors and ideally from two other vendors for contracts which are expiring. Contact the utility companies and insurance agent to request


proposed or expected increases in rates. Consider anticipated increases in costs of staffing, administration, accounting, audits, taxes, etc. Compile the anticipated cost increases. Include reserve funding suggested by the reserve study. Bringing together this information provides a solid foundation for a realistic budget. Additionally, it places an obligation on vendors to stay within the costs provided by them for the budget. It also allows for signing of contacts, so that work can be scheduled early in the new year.


Tally a big 40 points by entering the projected dollar amounts for each line item. These amounts should be based on your research of association governing documents, professional reserve study, historical data, proposed, contractual and expected increases based on your investigations and information gathered from vendors, utilities, insurance, etc.


Total the budgeted expenses and add the required reserve funding. This is the total amount of dollars needed from homeowner assessments. Is this amount an amount that provides for a steady, predictable increase? If yes, 40 points are added to the score.


Finally, prepare an explanation of the budget for homeowners. The budget narrative should be both informative and understandable. It should make everyone feel that he/she is knowledgeable about the association’s finances. Each should appreciate where his/her assessment dollars are being spent. An increased appreciation for the costs of running the association makes everyone feel that they are in the loop and an integral part of the community. Score the ultimate 50 points when the budget passes!


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