Review/update responsibility

Revision

Reference

Florida Statute 720.303

Florida Statute 720.31

Budget approval

A two-thirds (2/3) affirmative vote of the Board is required to approve the Association’s annual operating budget. The Board approval of the annual budget includes approvals for funding the MRR Reserve, MI Reserve and EE&P Reserve.

A three-fourths (3/4) affirmative vote of the Board of Directors is required to authorize an increase to (or new) Annual, District or Special Assessments during a budget year above those approved in the original budget. Such increases may be enacted at any time during the year to cover an operating cash flow shortfall due to lower than budgeted revenues or unanticipated (or extraordinary) expenses that result in higher than budgeted operating expenses, where such conditions cannot be accommodated with uncommitted Operating Fund cash or by adjusting spending to provide offsets in other areas of the budget or by loans from another fund. Extraordinary expenses are defined as those that are unusual, unexpected, or one-time in nature and are not expected to be on-going annual expenses to the Association. Examples include renewal fees exceeding the accrued funds for environmental easement and permit renewals and compliance expenditures, extensive unplanned maintenance expenses, and extraordinary legal fees.