It’s not uncommon for residents to have questions about our annual budget. We all want to be sure our money is being spent wisely. With the goal of adding some clarity and confidence, The Compass will be posting a series of articles that provide a high-level overview of our community’s financial process, which involves numerous financial decisions. This first article aims to explain the approval process for large expenditures.Future topics will cover budget categories, reserve studies, and committee roles.
2025 Annual Budget
The budget for calendar year 2025 was approved by the Board of Directors (BOD) at their September 24, 2024, meeting.
This budget was developed over months of effort (especially by our Finance Committee) and serves as the financial roadmap for the year.
Planned vs. Unplanned Expenditures
Expenditures fall into two categories: planned and unplanned. Planned expenses, such as snow removal, are operating expenses anticipated in the annual budget. Unplanned expenses, like emergency repairs due to storm damage, arise unexpectedly. Regardless of category, all non-emergency expenditures follow a structured approval process.
The Approval Process
Expenditure requests can originate from homeowners, committees, the BOD, or management (the CAMP team). Typically, the board assigns one of its six committees to review the request, assess the need, and collaborate with management to create a Request for Proposal (RFP). Per policy (#2010-05), annual expenditures exceeding $50,000 require at least three competitive bids; however in practice we obtain three bids for any expenditure exceeding $10,000. The committee and management then evaluate proposals, meet with bidders, and ensure all details—including exclusions—are thoroughly understood. After deliberation, the committee votes on a recommendation, which can range from approval to rejection or alternative solutions.
New Expenditure Request
If a homeowner has a recommendation for an expenditure they believe will benefit the entire community, they should first contact management (managers@cameronstation.org) to determine which committee is best suited to evaluate the request. Then the homeowner should submit a request via email to that committee and, importantly, should attend the next committee meeting and be prepared to explain the request. The committee will not decide at the meeting but will take an action to investigate and evaluate the request. The length of time it takes for a decision to be made can vary greatly depending on multiple factors, including cost and scope.
Finalizing Decisions
The BOD reviews the committee’s recommendations of $2,500 or greater and votes on the expenditure. If approved, management works with legal counsel to draft a formal contract when appropriate, which the board president ratifies unless material changes require further BOD review.
Brendan Hanlon is a member of the Cameron Station Board of Directors, currently serving his third term. Feel free to submit comments, feedback, or suggestions for future articles in this series to: brendanhanlon.csc@gmail.com.
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