Common use of Approved Budgets Clause in Contracts

Approved Budgets. Manager shall prepare and submit to Owner a proposed operating budget and a proposed capital budget for the promotion, operation, repair and maintenance of the Property for the forthcoming calendar year. The proposed budgets shall be delivered to Owner no later than December l of the calendar year preceding the year involved. Owner will consider the proposed budgets and then will consult with Manager in the ensuing period prior to the commencement of the forthcoming calendar year in order to mutually agree on an operating budget (the “Approved Operating Budget”) and on a capital budget (the “Approved Capital Budget”). Manager agrees to use diligence and to employ all reasonable efforts to ensure that the actual costs of maintaining and operating the Property shall not exceed the Approved Budget (Operating or Capital, as the case may be) pertaining thereto either in total or in any one accounting category. All expenses shall be charged to the proper account as specified in the relevant Approved Budget and no expense may be classified or reclassified for the purpose of avoiding an excess in the annual budgeted amount of an accounting category. Manager shall secure Owner’s prior approval for any expenditure except for utilities charges that will result in an excess of 5% or more in any one accounting category of the Approved Operating Budget, however, if said expenditure is less than Five Thousand Dollars ($5,000) no approval is necessary. During each calendar year, Manager agrees to inform Owner of any major increases in costs and expenses that were not foreseen during the budget preparation period and thus were not reflected in either Approved Budget (Operating or Capital, as the case may be), and shall submit to Owner for approval a revised budget based upon said unforeseen costs and expenses.

Approved Budgets. Manager Every year, on or prior to May 1st, MANAGER shall prepare and submit to Owner a proposed OWNER, in the form required by OWNER, an operating budget ("Operating Budget") and a proposed capital budget ("Capital Budget" and together with the Operating Budget, collectively referred to herein as the "Budgets") for the promotion, operation, repair and maintenance of the Property Properties for the forthcoming calendar yearfiscal year beginning July 1. The proposed budgets For the first year of this Agreement, OWNER shall be delivered prepare and submit to Owner no later than December l of the calendar OWNER Budgets for fiscal year preceding the year involvedending June 30, 2014, on or before October 15, 2013. Owner will consider the proposed budgets and then will consult with Manager in the ensuing period prior to the commencement of the forthcoming calendar year in order to mutually agree on an operating budget (the “Approved Operating Budget”) and on a capital budget (the “Approved Capital Budget”). Manager MANAGER agrees to use diligence and to employ all reasonable efforts to ensure that the actual costs of maintaining and operating the Property Properties shall not exceed the Approved Budget (Operating or CapitalBudgets, as the case may be) pertaining thereto either in total or in any one accounting categoryline item within the chart of accounts. All expenses shall be charged to the proper account as specified in line item contained within the relevant Approved Budget chart of accounts and no expense may be classified or reclassified for the purpose of avoiding an excess in the annual budgeted amount of an accounting category. Manager MANAGER shall secure Owner’s OWNER's prior written approval for any expenditure expenditure, except for utilities charges charges, that will result in an excess of five percent (5% %) or more in any one accounting category line item within the chart of accounts of the Approved Operating Budget, ; however, if said expenditure is cumulatively less than Five One Thousand Dollars ($5,000) 1,000.00), no approval is necessary. During each calendar year, Manager MANAGER agrees to promptly inform Owner OWNER in writing of any major increases capital expenditure or increase in costs and expenses in excess of the amount budgeted for such items, and of decreases in revenue that were not foreseen during the budget preparation period and thus were not reflected in either Approved the Budgets, and shall upon request of OWNER submit to OWNER for approval a revised Operating Budget (Operating or CapitalCapital Budget, as the case may be), and shall submit to Owner for approval a revised budget based upon said unforeseen costs and expenses.