“A budget is like a diet. Everybody agrees it’s a good idea until dessert shows up.” —Anonymous
It’s September! That means we are one month closer to our next season at Heritage Palms—and, you guessed it, it’s time to begin budgeting for the Club’s next fiscal year.
I know that may not sound all that exciting. Budgeting is not exactly the financial equivalent of a hole-in-one or a perfectly placed drop shot. But there are some worthwhile things to know, including some important details about the process for reviewing and approving the budget.
Last year, I wrote about budgeting and used the now-overused Mike Tyson quote about plans. In my view, that concept cannot be overemphasized. Our team follows a very detailed budgeting process involving every department head, our CFO, and our GM. The Board of Directors has also been careful and diligent in its oversight. As a result of years of this kind of attention, the Club enters the next year in excellent financial shape.
That said, you can’t predict pandemics and hurricanes—or, to borrow Tyson’s analogy, punches in the face. So, we make our very best effort, build in a little “cushion,” and onward and upward we go. Much like a golf swing, the budget looks simple from a distance. Up close, however, there are a lot of moving parts—and occasionally something goes directly into the water.
So, let me take you through the budget process at HP. Don’t worry—I’ll keep it high level.
The Board, the GM, and the CFO review market data at a high level to formulate overarching assumptions, such as increases in dues across SW FL, labor and inflation rates, the cost of capital, and other relevant factors. These assumptions become the guiding framework for the budget process and are reviewed with department heads as they begin building their individual budgets. Think of it as agreeing on the slope, distance, and wind before everyone starts arguing—with ourselves—about which club to use.
The initial budgets are then closely monitored by the CFO and reviewed by both the CFO and GM.
Meanwhile, a Budget Committee is formed. This committee consists of members who experience the Club’s amenities firsthand. Someone who plays golf, tennis, and pickleball. Someone who dines at the Club frequently and may have a background in the restaurant business. The idea is to bring the member experience into the process.
And, oh yes, the Board Treasurer and President, as well as the Finance Committee Chair, are also members of the Budget Committee.
The Finance Committee plays an oversight role throughout the entire process. Now, that doesn’t mean Finance Committee members can tell you the type and price of the toilet paper used in the Clubhouse. What it does mean is that the Finance Committee reviews the overall assumptions and tests them against its members’ knowledge and experience, as well as external benchmarks.
The members look for the reasonableness of changes in dues, labor rates, inflation, and new budget items. In other words, they ask the kinds of questions that help ensure the budget is based on sound assumptions rather than simply hoping the numbers behave themselves.
In summary, the creation of the budget is a collaborative process involving a great deal of detail and effort on the part of management, along with diligent and objective oversight from the Finance Committee, the Budget Committee, and the Board.
So, when can you expect to see the new budget? Generally speaking, the process kicks off in late August, when our CFO meets with each department head to begin the process. During mid-October, the Finance Committee, Budget Committee, CFO, and GM will meet with each department head to conduct detailed reviews. The Finance Committee’s recommended budget is expected to be approved by the Budget Committee and advanced to the Board of Directors by the end of October. A budget workshop with the Board will then take place in early November, with final Board approval scheduled for the Board meeting on November 23, 2026.
The final approved budget will be presented to the entire membership during the week of December 7. That presentation is just the final step in the process. You are welcome to share any ideas or input you may have at any time with a member of the Board, the Budget Committee, or the Finance Committee. The best time to offer a suggestion is before the budget is finalized—not after the last dollar has been allocated and the dessert tray has disappeared.
The budgeting process is a little like golf: preparation matters, conditions change, and even the best-laid plans occasionally end up somewhere unexpected. But with good information, thoughtful review, and a willingness to adjust, when necessary, we have every reason to look forward to another strong year at Heritage Palms.
So, onward toward 2027. We’ll do our best to keep the budget on the fairway, avoid the financial hazards, and make sure the numbers add up before we head to the 19th hole.
And yes, I’ll have the cheesecake.
