THE  BUDGET

THE ASSOCIATION BUDGET

Home ownership is often a person’s most valuable asset, which is why it astounds me that only a few unit owners attend our Zoom Board meetings. I was so deeply concerned by the critical information missing from the 2027 budget that I not only voted NO but also issued a formal Notice of Dissent to the Board.

STATEMENT OF FORMAL BUDGET DISSENT KATHY POSNER PRESENTED TO THE BOARD

Pursuant to Section 18.4 of the Illinois Condominium Property Act (765 ILCS 605/18.4) and corporate fiduciary obligations, I, in my official capacity as an elected member of the Board of Directors of The Towers Condominium Association, tendered a formal Notice of Dissent regarding the proposed 2027 Annual Operating Budget and Reserve Budget.

The budget fails to provide itemized reserve expenditures, relies on unsubstantiated funding claims, and engages in constructive obstruction by stripping explanatory line-item notes from the unit owner distribution package—violating 765 ILCS 605/18(a)(8), 765 ILCS 605/19, and established case law (Boucher v. 111 East Chestnut Condominium Ass’n).

RESERVE BUDGET

Populating anticipated reserve expenditures with uniform “$0.00” entries across capital line items is wrong and legally deficient. Under 765 ILCS 605/9(c)(2) and Article VI of our Bylaws, the Board is mandated to present an itemized budget based on estimated replacement costs and remaining useful life—yet this Board populated line items with zero dollars while possessing active knowledge of major upcoming capital commitments. I have repeatedly asked that reserve lines reflect actual projected amounts, but my pleas have gone unheeded. I need unit owners to stand beside me and DEMAND full transparency.

BUDGET NOTES & FULL DISCLOSURE

Unit owners do not see the same budget that Board members see. The version distributed to unit owners intentionally strips out internal historical context and operational details. Under 765 ILCS 605/18(a)(8), the Board is legally mandated to distribute a “detailed proposed annual budget”. Withholding management’s explanatory notes violates this standard and constitutes constructive obstruction under 765 ILCS 605/19. What the Board sees, the unit owners must see.

WE MUST DEMAND:

  • Five-Year Capital Plan & Cash-Flow Reconciliation: Direct Management to compile an interim five-year capital expenditure schedule, require a formal open Board review within 60 days of receiving the updated Reserve Study, and mandate a Reserve Cash-Flow Report with prior-year project reconciliations in all proposed annual budgets.
  • Annual Reserve Cash-Flow Reporting: Ensure every proposed budget includes a dedicated schedule detailing projected beginning balances, anticipated contributions, itemized expenditures, and ending balances for total financial transparency.
  • Annual Budget Letter Capital Project Reconciliation: Require every annual budget letter to include a formal reconciliation of completed major capital projects and an explicit accounting for deferred projects—specifically addressing the verbatim repetition of project promises between the 2026 and 2027 budget letters despite assessment increases.
  • Unredacted Budget Summary Notes: Mandate that future budget distribution packages provided to unit owners include all internal explanatory budget summary notes—including revenue trends, line-item operational cost explanations, and background financial calculations.

Statutory Duty for Accurate Accounting of Reserve Allocations (765 ILCS 605/9(c)(2)): Section 9(c)(2) of the ICPA requires reserve funds to be calculated and maintained for designated capital repairs and replacements. When unit owners pay increased assessments based on specific project promises that go unfulfilled year after year, the Board has an affirmative legal obligation to reconcile where those specific reserve dollars went before soliciting funds for the same projects again.