Inflation didn't wait for your 2027 budget meeting.
September CPI came in at 3.7% over the past year, up from 3.4% in August. Energy is up 20.4%. Gasoline is up 34.2%. Core CPI, which strips out food and energy, is up 2.6%.
For Florida HOA and COA boards, those aren't headlines. They're line items.
Common-area utilities. Electricity is up 4.4% and utility natural gas 5.0% over the year. Pool heaters, lighting, elevators, and clubhouse A/C don't get cheaper because last year's budget assumed they would.
Vendors and contractors. Fuel costs flow into landscaping, pest control, hauling, and every truck that rolls onto your property. Core services are up 3.1%. Watch for fuel surcharges and mid-contract "adjustments," and ask to see the clause that allows them.
Reserves. A reserve study priced in an older cost environment can understate what replacement costs today. Underfunded reserves have a way of becoming special assessments.
Borrowing. The 10-year Treasury sat near 5.3% after the release, the Fed hiked in September, and another move is on the table for the Oct 27-28 meeting. If a loan is in your plan, get current terms in writing.
Before the 2027 budget is adopted:
- Stress-test it at the 3.7% headline, with energy lines tested separately
- Replace flat "inflation" lines with escalators tied to actual contracts and usage
- Ask management for 12 months of utility bills and vendor invoices vs. contract terms
- Check reserve contributions against current costs, not old pricing
- Price any loan or special assessment option at today's rates
Take it risk-first: the biggest lines and the fastest-moving ones get scrutiny first.
Trust, but verify. Management prepares the draft. The board owns the budget. Oversight should be deliberate, not hopeful.
Is your 2027 budget built on this year's numbers, or last year's hopes?
Source: BLS CPI release, Oct 14, 2026