IHCA 2016-17 Annual Budget Development Underway
The Issaquah Highlands Community Association (IHCA) Finance Committee has begun preparing the IHCA 2016-17 budget. The budget will be presented to Board of Directors (BOD) for approval in late February, published on April’s Connections newspaper, and ratified at a scheduled community meeting in late April.
The Finance Committee has an opening for a qualified volunteer.
Please contact Joon Chang, IHCA Accounting Manager
Finance Committee members are comprised of Issaquah Highland’s homeowners who volunteer their time to serve the committee. This committee is appointed by the IHCA BOD and work directly with the IHCA staff to develop a budget recommendation to the BOD. Using their financial expertise, knowledge of community and legal requirements, and a commitment to maintaining the communitywide standards, the budget is developed using proactive group effort.
Once the budget is reviewed and approved by the Finance Committee, the committee will present the budget to the IHCA BOD for approval. After the Board approves it, an open meeting is scheduled to publicly ratify the budget. In accordance with state law and the IHCA Covenants, Conditions & Restrictions (CC&Rs), ratification is automatic unless 75% of all members (not just those in attendance) vote to reject the budget.
There are many factors that the Finance Committee must consider when developing the community budget. These driving factors include:
- Protecting the integrity of the investment of every homeowner within Issaquah Highlands.
- Maintaining the standard of care and safety of community property and common areas.
- Ensuring efficient planning for future community needs.
The Finance Committee reviews the funds needed for daily operation of the community, such as common electricity and irrigation water, grounds maintenance, management, insurance and general maintenance. These expenses are either contractual or can be reasonably estimated based on experience. The Finance Committee also reviews the income needed to maintain the reserve fund at sufficient levels. Reserve funds provide money for the repair and replacement of the community’s assets — such as playground equipment, drainage infrastructure and irrigation equipment.
Armed with this knowledge, the committee will estimate total expenses for the coming year and compare that sum to the association’s potential revenue (assessments, interest on investments and shared costs revenue). The committee will look for ways to lower expenses without compromising service and address areas where operating efficiencies may be realized.
The annual budget must also meet the legal requirements of operating a nonprofit association and address any economical and operational challenges that may lie ahead.