TEMPLATE - Planning Budget Meetings

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!