The words keep falling out of my mouth. I see it again and again. So many boards think their mission is to keep fees low, period. Ironically, the mindset that this engenders pretty much guarantees that in the end, everyone will pay more.

Never forget that the budget is a tool. It is part of the plan that provides the means by which the community’s needs are met. At a higher level, it can be part of the plan that provides the means by which the aspirations of the community are met. It is the tail, not the dog.

Don’t get me wrong – a fiduciary has a duty to make sure that members’ assets are well utilized. But there’s a huge difference between price and cost. A low price up front can mean tremendous cost later on. A myopic focus on trying to make sure expenses do not exceed the budget plan (key word PLAN) leads to a vicious cycle of failure that goes something like this:

The bottom drops out. Special assessments, huge fee hikes, and/or debt service (unless the financial condition of the association has been flushed so far down the toilet it’s no longer an option). Ironically, in the end everybody pays more because the board managed down to the budget instead of leading up to a vision.

Vision doesn’t have to be a pie-in-the-sky, magical thing. It can be pragmatic. In working with community association clients, I’ve learned to start with a simple annual planning session. Tell me what you want to do and I’ll tell you what’s important to you. Which means you’ve identified your values. Which leads you to your vision.

So start with planning.  Establish a disciplined, robust budget preparation process. Lead.  And truly serve your members. That is your duty. It’s hard at first, but ask those who have tried to lead associations out of the ashes. It’s much worse.

Going cheap at all costs may be a value, but it does not lead to a sustainable vision. Walk around without your glasses and eventually you will stumble and fall. Don’t be afraid to open your eyes and get the help you need to see clearly.