Overspending the Budget
Adams Stirling PLC
Menu

OVERSPENDING THE BUDGET

QUESTION: Our directors did not seek member approval nor advise the membership when they overspent the approved budget. Wouldn't overspending require membership approval?

ANSWER: No, it does not require membership approval. Boards are sometimes faced with unexpected increases in insurance premiums, utility rates, legal fees, etc. that leave them no choice but to spend more than was budgeted. When that occurs, boards can overspend the budget, impose an emergency special assessment, borrow from reserves, or take other actions--none of which require membership approval. See unexpected expenses.

ASSISTANCE: Associations needing legal assistance can contact us. To stay current with issues affecting community associations, subscribe to the Davis-Stirling Newsletter.

Adams Stirling PLC