Anasazi Finances

Managing Anasazi Village’s finances is a year-round effort shared by the Board, its committees, and our property management company, AAM. The Board provides oversight, establishes priorities, and approves spending, while AAM manages the day-to-day financial operations that keep the Association running smoothly.

This process is designed to provide both professional financial management and active Board oversight of how Association funds are planned and spent.

The budgeting process begins several months before the new fiscal year, which runs from January through December.

For the operating budget, the Community Manager develops anticipated expenses for contracts, utilities, insurance, maintenance, and other ongoing costs. The Treasurer and Board President review the proposed operating budget before it is presented to the full Board. The various Committees of the Board also identify their anticipated operating needs and proposed spending for the coming year.

The reserve budget follows a more collaborative process. Board committees work with the Community Manager to identify projects, repairs and replacements that may require reserve funding. Because committees are involved with their respective areas of the community, they help evaluate needs, establish priorities, and develop spending proposals for Board consideration.

This approach ensures that reserve spending priorities are driven by the Board through its committees, rather than determined solely by Management. The Board ultimately reviews and approves the projects and expenditures included in the reserve budget.

Your HOA assessments are based on the Association’s annual budget. Once the Board determines how much is needed to operate and maintain Anasazi – including landscaping, pool and spa maintenance, insurance, common-area utilities, and reserves for future repairs – the amount is allocated among the units according to the CC&Rs.

The CC&Rs also limit year-to-year changes in assessments. Generally, assessments cannot increase by more than 10% or decrease by more than 20%. An exception may apply when insurance or utility costs rise significantly.

Special assessments may be levied when unexpected expenses, major repairs or budget shortfalls exceed regular operating funds. Under the CC&Rs, a special assessment can only be approved if two-thirds (2/3) of all owners cast a ballot, and two-thirds (2/3) of the ballots cast are in favor.

As the proposed budget develops, the Community Manager, Treasurer, President, Board committees and ultimately the full Board review the appropriate portions of the financial plan and adjust as needed.

The budget then goes through the required Board and owner review and approval process. Once approved, it becomes the Association’s financial plan for the coming year and provides the framework for operating and reserve spending.

Financial oversight continues long after the budget is approved. AAM processes expenses, maintains financial records, reconciles accounts, and provides regular financial reports to the Board.

As an additional level of oversight, the Treasurer reviews and approves Association invoices, helping the Board remain informed about expenditures and how Association funds are being used.

The Board also conducts formal mid-year and year-end financial reviews. The Treasurer, Community Manager and Board President review the budget and financial results before presenting them to the full Board. These reviews compare budgeted versus actual income and expenses, identify spending added because of unforeseen circumstances, and provide the Board with a clear picture of the Association’s financial position.

Reserve funds play a key role in preparing for the repair and replacement of major community assets. The reserve study provides long-term guidance, while the Board, its committees and Management evaluate current conditions and priorities to determine which projects should move forward and when.

At year-end, actual income and expenses are reconciled and reviewed. Differences between the budget and actual spending are evaluated, and information about projects, expenses and financial performance becomes an important starting point for the next budget cycle.

Manage Anasazi’s money responsibly, meet the Association’s obligations, protect and maintain our community, and plan strategically for the future.

For details on Anasazi’s financials and related financial documents, visit All Access and see Property Documents.