The Annual Budget Meeting

What is the meeting for?

The budget meeting gives the association a structured opportunity to consider its proposed annual financial plan. It connects operating costs, reserves, anticipated income, and the assessments owners will pay.

It is distinct from the annual owner meeting and election, even if events are scheduled near one another. Keep each agenda and approval process clear.

Florida’s core requirements

Section 718.112 requires budget consideration meetings to be open to owners. At least 14 days beforehand, deliver the notice and proposed budget by authorized means; retain a compliance affidavit. Electronic notices require applicable owner consent. The board must adopt the budget at least 14 days before the fiscal year starts. [1]

The budget must detail revenues and expenses by accounts and include applicable reserves. Owner participation and any owner votes must follow applicable law and documents. Confirm adoption authority and procedures with counsel or the manager. [1]

Prepare a defensible proposal

1. Review year-to-date results and estimate the full year’s expenses.
2. Confirm current contracts, renewal estimates, utilities, and insurance.
3. Review maintenance needs, planned projects, and reserve recommendations.
4. Identify loan payments, delinquencies, and cash timing.
5. Verify UCO, WPRF, and other shared obligations from current documents.
6. Calculate assessments using the applicable allocation provisions.
7. Explain significant changes and uncertain estimates.
8. Confirm notices, supporting materials, and any required voting documents.

What should owners be able to understand?

Use a readable comparison of last year’s budget, current estimates, and the proposed budget. A short explanation is often more useful than an unexplained spreadsheet.

The 115% substitute-budget provision

Current § 718.112(2)(e) requires a simultaneous substitute proposal when the statutory assessment comparison exceeds 115%. The calculation excludes specified required reserves, certain nonrecurring repair expenses, and insurance premiums. The substitute removes discretionary spending and has its own owner-adoption process. [1]

Have counsel or the manager verify the calculation and procedure. This is not a simple universal 15% cap on the total assessment bill.

Handle reserves and separate decisions carefully

A discussion about keeping assessments low does not establish authority to reduce or waive reserves. Identify applicable reserve and SIRS requirements and any separate approval process. [1]

Likewise, adopting a budget does not automatically authorize every loan, contract, special assessment, or change in restricted-fund use. Determine each required action before the meeting.

A practical meeting agenda

1. Call to order and confirm the appropriate quorum.
2. Confirm notice and identify the proposal under consideration.
3. Present operating needs and significant changes.
4. Explain reserves, projects, debt service, and assessment calculations.
5. Allow owner participation under applicable procedures.
6. Address any required substitute-budget or separate owner action.
7. Consider the appropriate adoption motion and record the vote.
8. Confirm implementation and follow-up responsibilities.

This is an organizational example, not a substitute for a legally compliant agenda tailored to the association.

After adoption

• Preserve the adopted budget, notices, affidavits, and minutes.
• Communicate assessment amounts, effective dates, and payment instructions.
• Update accounting and collection systems.
• Complete applicable website posting and distribution requirements.
• Compare actual activity with the budget throughout the year.
• Revisit significant cost or funding changes through the appropriate process.

Common questions

Official source & scope

1. Florida Statutes § 718.112 — especially subsection (2)(e), budget meetings, and (2)(f), annual budgets.

Updated October 17, 2026. General education for Florida condominium boards. Confirm the complete notice, meeting, voting, reserve, and adoption requirements for your association with counsel or a qualified manager.

From adoption to correct billing

1. Identify the adopted version. Retain the final budget, supporting calculations, notices, required affidavits, motions, and vote record. Keep any separate owner decision identifiable.
2. Confirm the assessment instructions. Document each applicable unit allocation, payment schedule, effective date, and authorized accounting contact.
3. Check implementation. Have a second person compare the adopted figures with the accounting system and sample owner statements before release.
4. Communicate clearly. Distinguish association assessment, manager compensation, embedded community costs, and separately billed owner obligations. Explain any autopay action without publishing banking details.
5. Complete access and monitoring. Make required postings and distributions, preserve evidence, and set review dates for actual-versus-budget reports.

Use the decision worksheet and deadline tracker. The budget is not an authorization to bypass required contract or bidding procedures.

Connected budget and governance resources

• Build the budget →

  Trace costs and funding assumptions.

• Understand assessments →

  Explain unit shares and separate bills.

• Inspect supporting records →

  Request budgets, reports, contracts, and relevant decisions.

• Document the decision →

  Record the adopted motion, votes, and implementation responsibility.

• Effective management →

  Clarify preparation, accounting, and board oversight duties.

• Annual financial reporting →

  Distinguish the forward-looking budget from the completed year’s report.

• Annual operations calendar →

  Schedule preparation, notices, adoption, and monitoring.

• UCO resources →

  Find the separate community procedures and support.