What’s a Budget, Anyway?
Here we are again. As I write this, it’s October 1st—the official kickoff to Heritage Palms’ season. Golf and racquet sign-ups are underway, the staff are wrapping up their off-season projects, the social and dining calendar is launched, and everyone’s eagerly awaiting the grand opening of the Oasis/Tiki facility.
Sounds like nothing but fun ahead, right? Well … almost. October is also the month when the Board of Directors, Finance Committee, and Management roll up their sleeves and tackle the annual budget. If you’ve ever been part of that process, you know it’s less “party on the patio” and more “math in a pressure cooker.”
“Everyone has a plan until they get punched in the mouth.” – Mike Tyson
It’s a Plan!
Another favorite quote of mine is: “Men plan and God laughs.” (Apologies for the sexism, but that’s the quote!) Budgets are just that: plans. They look wonderfully detailed on paper, full of neat numbers and tiny footnotes. And then reality shows up—sometimes in the form of a global pandemic—and lands a haymaker right on the jaw.
That’s why it’s good for members to remember that while we try to stick to the budget, the Club may occasionally have to improvise. Not every detour is another COVID, but surprises are guaranteed.
It’s Full of Assumptions!
When building a budget, management and the Board make a lot of educated guesses. How many members will we have? How many diners? How many rounds of golf? What will inflation do? Will we have enough workers to keep overtime in check—or will half the staff run off to become professional pickleball players? These are just a few of the questions that get baked into the numbers.
It’s a Control Process!
At its core, the budget is a tool for control. The Board is elected to keep the Club running efficiently while preserving the amenities we all enjoy. There are plenty of checks and balances to prevent errors or misuse of funds, but the budget is the big boss at the top of the chain. Spending outside of the approved budget doesn’t happen without oversight. In fact, if an expenditure exceeds certain thresholds spelled out in the Bylaws, it doesn’t just go to the Board—it goes to the full membership. That’s right: sometimes you actually get to vote on something besides whether or not to build a dog park. Wink, wink.
This Year’s Budget Brings Some Unique Challenges
But seriously, last year didn’t exactly follow the script. The Oasis/Tiki opening was delayed, which makes year-to-year comparisons tricky. On top of that, operations were boosted by the Employee Retention Credit (ERC)—a generous but one-time-only financial cushion.
As of today (October 1), the budgeting process is just getting started—the Finance Committee meets this afternoon—so it’s too early to predict the outcome. What we do know is that the process will be thorough, cautious, and probably involve more spreadsheets than anyone should have to look at in a lifetime. And, by the time you read this, the process may be complete.
So, as we head into budget season, remember: it’s part science, part guesswork, and part ducking the occasional punch. With luck (and good planning), we’ll come out of this round smiling—preferably with both front teeth still intact.
