|budget & reserve planning tool
|Budget Planning and Reserve Analysis at your fingertips...
new Budget/Reserve Planning Tool for Condo and Homeowner Associations
This Budget/Reserve Tool allows the user to specify an operating budget for a calendar or fiscal year and develop a ten year plan for reserve accumulation and expenditures. The operating budget is compared to the current year's budget and combined with the reserve cash flow requirements to produce a projected maintenance fee for the upcoming plan year. The user can prioritize the maintenance fee based upon the operating expenses ("Operating Budget Prioritized") or the user can specify a percent reserve funding target ("Reserve Funding Prioritized") and the Tool will calculate the necessary maintenance fee to meet that percent funding requirement.
OPERATING BUDGET PRIORITIZED
Under Operating Budget Prioritization, the user specifies a maintenance fee (increase or decrease) and the allocation of funds is prioritized to cover the operating expenses first. The balance of maintenance fee funds are then allocated to the reserve pool.
PERCENT RESERVE FUNDING PRIORITIZED
Alternatively, under Reserve Funding Prioritization, a percent reserve funding is specified and the maintenance fee (increase or decrease) is calculated to cover all the operating expenses and provide a reserve contribution that achieves the specified reserve funding level.
ADVANTAGE OF USING THIS BUDGET/RESERVE TOOL
A key advantage of using this Tool is that one can develop what-if scenarios for different maintenance fee increases and/or percent funding targets and project out requirements for ten years based upon a particular reserve profile. This reserve profile along with percent funding targets can be revised annually to optimize cash flow and smooth out or reduce maintenance fee increases.
WHAT IS PERCENT FUNDING?
Percent funding is defined as the ratio of the actual funds available to meet the reserve accumulation and expenditure requirements versus the funds that would be required to be fully funded each year. Example, if a car cost $50,000 and a new car was purchased every five years, then to be fully (100%) funded each year, an individual would have to place $10,000 in the bank each of the five years. If in any of the five years an individual placed only $5,000 in the bank, then for that year they would be 50% funded.
NAVIGATION AND FUNCTIONALITY
Navigation and functionality is designed to be intuitive in nature. Moving from one screen to another or invoking specific functionality is accomplished by pressing the appropriate button or set of words for the particular action desired.
LOW INTRODUCTORY PRICE
As part of the rollout of this new product, Bluewave Software is offering a 30 day money back guarantee and a special low price of $395 for each Condo or Homeowner Association. Discounts are also offered for Management Companies.