Retirement village residents on fixed incomes can be particularly sensitive to changes in the cost of living. The recent announcement of a 7.8% increase in the consumer price index to the December quarter nationally is a timely reminder for Village and Community Managers to prepare for the 2023-24 Budget cycle. This year, negotiating with residents and committees will require professionalism, respect, and care to successfully navigate their concerns with the increased costs of living.
To guide managers through the budget process, here are some tips to consider:
Transparency is key. It’s important to be open and clear about the costs involved in running the retirement village, including maintenance, insurance, rates, utilities, and staffing. Be prepared to answer questions about line items and explain any increases or decreases in costs from the previous year. Involve residents in the process through formal meetings and feedback sessions to create a sense of partnership and collaboration.
Be prepared for budget requirements that continue to increase each year due to legislative changes and reforms. Have Quantity Surveyor Reports, Asset Management Plans, and quotes on hand to justify maintenance of capital items before consulting and negotiating with residents.
Set clear goals and priorities for the year ahead, allocating funds accordingly. Be realistic about what the retirement village can afford and ensure that the budget reflects the needs and priorities of the residents. Consider how cost allocations are managed between operating and capital funds, and be open to compromise to find a balance between the needs and priorities of residents and the financial constraints of the retirement village.
Summarise key points throughout the discussions with residents and committees, and follow up with a written document that outlines the agreed way forward. This will help ensure that both parties have a clear understanding of the outcome of the negotiation.
Allow time for consultation and negotiation with residents and communicate the final budget clearly as per the requirements in your state or territory of operations.
In conclusion, handling the budget process with care and professionalism, while taking into account the unique needs and concerns of residents, is critical. Success will come to managers who are well-prepared, effectively communicate, collaborate and negotiate with residents.
The DCM Institute offers resources in its Knowledge Centre to help Village and Community Managers prepare for this year’s Budget cycle.