Which of the following is an example of a discretionary line item in a community budget?

• A. Income taxes
• B. Maintenance
• C. Recreational expenses
• D. Utilities

Answer: (C)

Discretionary line items are expenses the board can approve, adjust, or drop based on priorities and the association’s financial situation, rather than costs needed to keep the property functioning or comply with obligations.

Recreational expenses fit this idea because amenities and related programs are optional and subject to budgeting decisions. A board can fund, scale back, or pause activities like pool programs, clubhouse events, or special recreational upgrades without compromising essential operations.

In contrast, income taxes are determined by law and must be paid as required, while maintenance and utilities are ongoing, necessary costs for keeping the property in habitable and usable condition; these are not typically discretionary.