According to State Parkway’s financial statements, as prepared by garage management company SP+, State Parkway’s net loss for the Garage Operations line during the first quarter of 2017 is $91,052 as compared to $90,934 loss budgeted by SP+. or just $118 over “budget.” This means SP+’s budgeted loss for 2017 of $329,925 is right on target. The problem is State Parkway’s board of directors only budgeted $280K instead of $330K for 2017. This means the projected $50K budget shortfall for garage operations will have to be funded by unit owners.
This $50K is part of the $475K deferred assessment increase shortfall I detailed in another blog post. But if the 2018 budget line item for Garage Operations is just as bad as 2017, unit owners will be asked to pay at least an additional $50K increase for this line item in the 2018 Proposed Budget
Going forward, State Parkway’s board of directors should “demand” to see the projected budget prior to distributing the proposed budget to unit owners for their review prior to board adoption. It’s the least garage management company should do.