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We recently received the minutes for our upcoming AGM. In the budget and proposed capital levy for next year, the strata manager has but $20K (total, to be split between the 6 units). We had high capital budgets the last few years due to some upgrade works but nothing planned for the next year.
Can I vote to have this amount reduced, or is there a minimum amount a strata must hold in their capital funds?
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You are required by law to have a 10-year forward maintenance plan (revised every five years) and to have enough funds in the kitty to service it.
That’s your stating point – do you have more money than you need in your maintenance (formerly ‘sinking’) fund?
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I agree with JT. The key is the plan. You should have a plan that anticipates various irregular, possibly large, maintenance costs plus, ideally, a contingency margin, and matches that with regular, even, annual payments. The point is fairness. Everyone who is an owner in any year contributes a manageable amount that stays about the same to cover the inevitable occasional large expense.