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Operating Budget

Sometimes called an "Operations Budget". 

The portion of a building’s budget that is allocated for operating costs, which are frequently recurring expenses that arise during the course of a single fiscal year

The budget is comprised of separate line items corresponding to each of the operating costs.

The operating budget is a key reference document for various kinds of studies.

Distribution of operating costs in a typical residential building:
  • Maintenance (eg. wash the windows)             20%
  • Repairs (eg. fix the broken lock on the gate)   10%
  • Capital reserve (eg., the roof in 10 years)        10%
  • Insurance and administration                         20%
  • Staffing and miscellaneous                            10%
  • Utilities – hydro, gas, water/sewer, garbage      20%

Management of the Budget:
  • The full range of operating costs are summarized in an operating budget.
  • The budget corresponds to one fiscal year.
  • The budget is updated according to a budget cycle.
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Fig. Comparison of budget line items in operating budgets.



Sample operating budget distribution for an average high-rise building  Sample operating budget distribution for an average low-rise building. Sample operating budget distribution for an average townhouse complex
Fig. Comparison of the annual operating budget distributions for an average high-rise building (left), low-rise building (middle) and townhouse complex (right).


I. Care is trying to ensure that inflows match outflows, but this requires cooperation and teamwork
Fig. I. Care is trying to ensure that inflows match outflows, but this requires agreement on long-range stewardship, cooperation and teamwork.


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Fig. Excerpt from a cash flow table.


See also:
Compare with:

Chessboard analogy to illustrate budget constraints as one of the operational challenges
Fig. Chessboard analogy to illustrate budgets constraints as one of the operational challenges in asset management.


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