Budget Process
Budget Meeting
The Board of Directors will hold a public hearing to consider comments and suggestions for the proposed FY 2026/27 budget on Tuesday, February 3, 2026, at 7:00 p.m. in the South Clubhouse.
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Budget Process
Parkside uses a zero-based budget, which means that expenses in all categories do not start from the expenses of the previous year but must be justified as cost-effective. Thus, when management prepares the first draft of the budget, it starts not with the previous year's budget but with what must be accomplished, and staff calculate what that will cost. The general goal is to maintain, preserve, and enhance our assets.
In preparing the first draft, management is guided by several legal documents. One is the Maryland Condominium Act, which sets forth requirements on preparation of the budget, time frame, and items to be included (e.g., income, utilities, administration, reserves). Another legal underpinning is the Association's bylaws (Article V, Section 2, “Preparation and Approval of Budget"). Other essential documents are the board resolutions on budgeting and assessments, personnel compensation, ongoing contracts, and investments. Together, these documents make it clear that management has an obligation to present an accurate account of the financial requirements to meet the goals of the community.
The first draft of the budget reflects not only the governing legal documents but also recommendations from staff, the committees, and members of the community. Thus, to some extent the first draft includes a wish list.
During December, a meeting is scheduled and at that time the first draft is discussed by the board, committee chairs, members of the Budget & Finance Committee, management, and Parkside's managing agent. The purpose of the meeting is to review, understand, and challenge everything in the draft budget. No decisions are made at this meeting. Instead, decisions on the budget and its revisions will be made at the regular monthly board meetings.
The specific schedule is as follows: At the December board meeting, the board decides on the changes it wants to make to the first draft, if any are warranted. Those changes are embodied in a second draft, which is sent to all owners in early January. On the first Tuesday in February the board holds a public hearing on the second draft; the purpose of the public hearing is to provide owners with an opportunity to present their views on the draft budget to the board. On the third Tuesday in February, at its regular monthly meeting, the board decides and approves the final version of the budget.
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The FY 2026-27 draft budget that was discussed on Tuesday, December 16, projected an increase in assessments of 10.04%. The explanation for the proposed increase is due to an expected 10% increase by WSSC, cost for materials, insurance costs, capital reserve contribution and tax expense.
While developing the budget, there are maintenance projects that are funded through the Capital Reserve Budget* and the following items have been identified as necessary Capital Reserve projects for the year:
Fuel oil tank replacement.
Backflow preventors.
Flat Roofs (317, 415) (400, 410).
Deck Sealing Section V.
Exterior Painting Phase II, III, IV.
Parking Lot Overlay 1.
Sidewalk replacement.
Brick Pointing.
Section V Hallway Painting.
Retaining Wall Repairs.
Community Garden Fencing.
Swimming Pool Chairs.
Carpet in South Clubhouse.
Landscape Design Project.
*The capital reserve section of the budget includes a schedule specifying the money needed and on hand to replace major components of the common elements (everything costing above $1,000, e.g., boilers, roofs, landscaping), so that when a major component must be replaced, the funds are available. For all 251 items listed in this section of the budget, the schedule identifies the item's remaining useful life, the cost to replace and the amount that must be contributed annually for the rest of the useful life so that at the end of that period, the full cost to replace is on hand. Every year, staff members certify the condition of each item and make a reasonable estimate of the item's remaining useful life and replacement cost.
Once the FY 2026-27 budget is approved by the Board of Directors coupon books will be ordered and mailed to all owners.