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PLANNING AND GUIDING BUDGET MEETINGS
HOW TO USE THIS TEMPLATE
This guide is designed to take Boards step-by-step through the budgeting process over the course of five Board monthly meetings. This is a template not a rulebook. The goal is to outline a budgeting process that feels manageable and well organized for a volunteer Board of Directors.
Add to or rearrange the steps to customize the plan. Feel free to adjust the timing to suit the rhythm of your rural water co-op.
Before you begin, consider reviewing Finance - Overview of Responsibilities.
MEETING 1: KICK-OFF AND PRIORITIES
REVIEW CURRENT AND PAST BUDGET PERFORMANCE
- Look at the actual income and expenses of the previous full year where complete financial statements are available
- Review the actual vs. planned spending of the current fiscal year to date
- Discuss financial realities, challenges, lessons learned and recent successes
IDENTIFY PRIORITIES AND GOALS FOR THE YEAR AHEAD
- Discuss upcoming needs for operations, maintenance, multi-year projects
- Discuss high-level goals for the year and set financial and strategic priorities
ESTABLISH TIMELINES AND ASSIGN ROLES
- Clarify who will prepare the numbers for the year ahead and do any research needed for the Board to draft a good budget
- Adopt a simple Board calendar with meeting dates and decision deadlines
MEETING 2: THE PRELIMINARY BUDGET
REVIEWING REVENUE AND EXPENSES
- Review the first draft budget prepared by the Treasurer (or Operator)
- Review projected revenues (member payments)
- Review core costs (utilities, staffing, insurance, admin)
- Anticipate inflation or cost-of-living adjustments if there are employees
IDENTIFY CAPITAL PROJECTS AND MAINTENANCE NEEDS
- Review upcoming infrastructure replacements, upgrades, or emergency reserves
- Flag any big-ticket capital projects for this year or future years
- Assess the water co-op's maintenance needs
- Ask questions, understand impacts to members, and suggest adjustments
MEETING 3: TESTING THE BUDGET
BUILD IN RESERVES
- Decide how much to set aside for future needs
- Balance immediate spending with long-term stability
TEST SCENARIOS
- What if revenue is lower than expected?
- What if a project comes in over budget?
- Use "what if" models to stress-test the draft
COMPARE
- Look at past budgets, compare the forecasted numbers to past years' spending trends
- Consider industry norms or regulatory expectations
- Dig deeper into line items: Are cost estimates realistic? Are reserves being funded properly?
MEETING 4: FINAL REVIEW AND MEMBER IMPACT
MEMBER IMPACT
- Will rates to members need to change?
- Does the budget reflect fair and transparent financial stewardship?
STRATEGIC DIRECTION
- How does this budget support the water co-op's mission and vision?
- Achieve consensus as a Board that the financial choices match the stated priorities
MEETING 5: COMMUNICATION AND APPROVAL
PRESENT THE BUDGET AND GET MEMBER SUPPORT
- Present the year-end financials and the upcoming year's budget to the membership for approval at the AGM
- Prepare a simple but clear explanation for members, especially if rates are changing
- Acknowledge the effort it took to get here and share success!