FY2026 operating expenses
$517,224.51
$110,676.93 higher than FY2025 (27.2%).
Community finances · reviewed October 15, 2026
Where does the money go?
Actual expenses first. See the largest costs, how they changed, and which charges deserve a closer look—all tied to the association’s records.
The numbers that matter
Largest operating line: insurance
$177,957.34
34.4% of operating expenses; down $11,307.69 from FY2025.
Separate reserve expenses
$592,388.42
Retaining wall $589,788.42 + engineering $2,600. Not included in the operating total.
Operating result
-$917.72
Income $516,306.79 less expenses $517,224.51. A loss, separate from the reserve result.
Every operating dollar, by category
These five non-overlapping categories sum to $517,224.51. Shares use the operating total only; rounding may affect displayed percentages.
Taxes, insurance & interest
$209,614.61 · 40.5%
Insurance $177,957.34; loan interest $30,817.27; origination fee $500; income taxes $340.
Building maintenance
$106,757.92 · 20.6%
Includes rubbish removal, plumbing, general building work, roofs, fire panels, painting, and other repairs.
Utilities
$72,347.25 · 14.0%
Water and sewer $67,141.26; electricity and gas $5,205.99.
Exterior maintenance
$66,412.86 · 12.8%
Landscaping, snow removal, backflow, irrigation, trees, pest control, and fencing.
Administration
$62,091.87 · 12.0%
Includes management $28,674, bad debt $11,710.12, legal charges, mailing, and other administration. This entire category is not the management fee.
Other large individual lines: water/sewer $67,141.26, rubbish removal $32,633.90, loan interest $30,817.27, and management $28,674.00. These are already inside the categories above; do not add them again.
History: what changed year over year?
Two complete fiscal years, using each August statement’s year-to-date actual column. Building maintenance contributed the largest category increase: $47,893.83. Expense growth includes newly recorded loan interest and bad debt; changes in accounting classification may also affect comparisons.
| Category | FY2025 actual | FY2026 actual | Change |
|---|---|---|---|
| Taxes, insurance & interest | $189,265.03 | $209,614.61 | +$20,349.58 |
| Building maintenance | $58,864.09 | $106,757.92 | +$47,893.83 |
| Utilities | $69,888.56 | $72,347.25 | +$2,458.69 |
| Exterior maintenance | $46,279.08 | $66,412.86 | +$20,133.78 |
| Administration | $42,250.82 | $62,091.87 | +$19,841.05 |
| Total operating expenses | $406,547.58 | $517,224.51 | +$110,676.93 |
| Recorded result | FY2025 | FY2026 |
|---|---|---|
| Operating income | $507,110.20 | $516,306.79 |
| Operating expenses | $406,547.58 | $517,224.51 |
| Operating net | $100,562.62 | -$917.72 |
| Reserve income | $44,486.42 | $58,768.08 |
| Reserve expenses | $0.00 | $592,388.42 |
| Reserve net | $44,486.42 | -$533,620.34 |
| Combined net | $145,049.04 | -$534,538.06 |
The FY2026 combined loss of -$534,538.06 includes major reserve work. It is not the annual operating deficit or a new assessment. Loan proceeds and principal payments are not operating income/expense in the same way as interest. A cash-flow reconciliation is needed before interpreting how spending was funded.
Unexpected expenses to review
A review list of unbudgeted lines and overruns—not a finding of wrongdoing or proof that each expense was unforeseen. Variances compare FY2026 actuals with the annual budget printed in the same August accounting report. That budget still needs reconciliation with the separately approved budget.
| Expense | Actual | Report budget | Over budget |
|---|---|---|---|
| Loan interest GL 63253 · Why is interest recorded against a zero expense budget while an $84,000 loan-payback allowance appears under income? Reconcile principal, interest, and loan statements; do not call the whole amount unforeseen. | $30,817.27 | $0.00 | $30,817.27 |
| Other repairs & maintenance GL 52300 · Request invoices, approval dates, and which items were emergencies versus planned work. | $17,491.60 | $5,177.52 | $12,314.08 |
| Bad debts GL 61200 · Ask for the accounting basis and recovery status in aggregate. This is an accounting charge, not necessarily a cash payment; owner accounts should remain private. | $11,710.12 | $0.00 | $11,710.12 |
| Rubbish removal GL 51600 · Separate recurring service increases, extra pickups, and one-time charges. | $32,633.90 | $24,000.00 | $8,633.90 |
| Plumbing & sewer GL 50900 · Identify incidents, responsible components, insurance recoveries, and preventive work. | $18,540.53 | $10,000.00 | $8,540.53 |
| Insurance GL 63400 · Reconcile premiums and prepaid-insurance timing. Annual recorded expense is not the current policy quote. | $177,957.34 | $170,000.00 | $7,957.34 |
| General legal GL 61600 · Request a non-privileged category summary; do not assume every charge relates to BrightView or collections. | $9,249.00 | $4,000.00 | $5,249.00 |
| Backflow inspection & repairs GL 57500 · Reconcile with the $6,453.45 signed proposal. Scopes and dates may differ; do not add the proposal again. | $9,193.90 | $4,000.00 | $5,193.90 |
| Landscape extras GL 57201 · Identify work outside the base contract and its approvals. | $6,668.60 | $1,500.00 | $5,168.60 |
| Trees, shrubs & sod GL 57700 · Separate completed work from the later signed $2,867 two-year treatment proposal. | $7,825.00 | $3,000.00 | $4,825.00 |
| Irrigation repairs GL 57510 · Identify emergency repairs, replacements, and recurring failures. | $6,248.98 | $1,500.00 | $4,748.98 |
This is a selected list, not an additional spending total. All rows are included in operating expenses. Offsetting underspends include snow removal ($9,510), water/sewer ($6,358.74), and the landscape contract ($3,263.62). Overall operating expenses exceed the report budget by $90,792.91.
Wall work and approved repairs: keep separate
Reserve wall expense of $589,788.42 and engineering of $2,600 appear against zero reserve-expense budgets in this report. That does not establish that the wall was unapproved or unexpected. Reconcile contracts, change orders, lender draws, and invoices against the Board’s earlier approximately $599,000 project figure. Later signed concrete ($2,325), railing ($1,725), and tree-treatment ($2,867) proposals are commitments to verify—not extra expenses to add to these actuals.
Historical budgets: plans, not actual spending
Recent versions appear below. The latest packet’s 2026 baseline differs from the standalone approved 2025–26 document. These are distinct versions, not a continuous series of actual results.
| Version | Assessments | Expenses | Reserve allocation | Insurance |
|---|---|---|---|---|
| Approved 2023–24 Reserves are deducted from assessment income before operating expenses. This presentation differs from earlier files that include reserves in total expenses. | $420,000.00 | $378,000.00 | $42,000.00 | $167,115.60 |
| Approved 2024–25 · printed 2025 Original approved amounts. Includes an $84,000 Loan Payment line. Later comparison columns and monthly reports use $546,054.08 assessments, not $546,000. | $546,000.00 | $501,799.62 | $44,200.38 | $193,635.00 |
| Approved 2025–26 Includes $84,000 labeled Loan Principal Payment. Its allocations differ from both Sep–Dec 2025 accounting reports and the later packet’s 2026 column. An amendment/reconciliation is missing. | $546,054.08 | $488,054.08 | $58,000.00 | $170,000.00 |
| 2026 · latest packet baseline The proposal’s comparison baseline. GL 41100 reserves are $65,000, but reserve income is $58,000. Listed expenses include $26,500 interest; the separate $57,500 loan allocation has unconfirmed classification. | $568,431.60 | $454,239.72 | $65,000.00 | $121,625.00 |
| 2027 · proposed Proposed 4% dues increase, effective November 1, 2026 if ratified. Loan interest is included in expenses; the separate $57,500 loan-related amount is not verified principal. | $591,168.86 | $444,993.53 | $88,675.33 | $121,625.00 |
Full historical budget comparison and source discrepancies · 2027 proposal analysis
Cash, debt, and the questions still open
- Operating cash
- $57,453.77
- Reserve cash
- $184,808.99
- Receivables—not cash
- $54,710.46
- Wall loan balance
- $512,615.73
August 31, 2026 balances; loan-payment cash is a separate $529.76. A 2020 reserve target cannot establish the current funded percentage.
- Obtain September onward statements and a reconciliation of budget versions.
- Confirm the October 15 ratification outcome before describing the proposed 4% dues increase as adopted.
- Request invoice support for the review list, repair completion records, and a current reserve study.
- Reconcile wall-loan principal, interest, and project spending without double-counting debt service.