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[rhea]

Hi All,

I am looking for advice regarding our EC and Special Levies.

Introduction:

• In 2016, I became a member of EC to a small sized block of 12 units, built in 1964.
• Our OC has a history of poor budgeting and planning for building maintenance as a result of an ineffective management by the Strata Manager, Secretary, and Treasurer of EC.
• On 1 July 2015, our first 10-year Capital Fund Plan (CF Plan) was prepared by Quantity Surveyor. This was done without consulting the owners and is inadequate. The inspection was carried out under the instructions of the Treasurer, and Secretary with help of Strata manager. 
• In Oct 2015 a special levy of $500,000 was raised for all balcony remedial work-window upgrade that was not in CF Plan.
• In Nov 2016 another special levy for $100,000 was raised to pay for works outside the scope of the Contract and was not in CF Plan. Most works were carried out to Secretary and Treasurer’s units and excluded other units due to insufficient funds. 
• Current Capital funds = $18,000 and Administrative fund =$0.

Our AGM is on 23^rd Nov. This year there is a proposal for Special levy again for ceiling repair works that are not in the CF Plan. The Secretary has demanded the crack to her unit ceiling be fixed. The Secretary got the builder to inspect her unit and units on either side of her unit. The builder estimated the work would cost approx. 20k/unit. There are other units that require ceiling repair too. However, the remaining 9 units were excluded from the inspection. Therefore, I requested the EC and Strata manager for inspection to be extended to all the 12 units.

I believe hefty special levy every year and not following CF Plan is a sign of poor planning and ineffective management. Also, some of us cannot pay lump sum amounts every year.

My question is, would it be appropriate to propose the following because other 9 units are being again excluded from proposed works?

“For owners who are proposing new works outside the CF Plan to be undertaken immediately to only increase the market value of their units should avail themselves of the strata provision “Funds for specific purposes” where they can create funds for specific purposes where only those owners pay for the works who derive a benefit from those works or who demand those non-critical works.  Otherwise, all such works must be extended to all units, be a part of the 10- CF Plan and must be prioritized.”

I am looking for fairness and equity because all of us are paying for the works but the majority of units are excluded from the works.

I have proposed the following agenda items to be included for upcoming AGM.

Proposed AGM Agenda items 2017:

1. Undertake Storage repair work for the 10 units that were excluded in 2016-2017 works.
2. Undertake Financial Audit. (We never had one since 1990)
3. Review the existing 10-year plan:
4. Undertake internal inspection of all the 12 units e.g. for any ceiling issues. 
5. Any new works required to be included in the 10-year plan to ensure adequate funds are available in the Capital Works Fund.
6. If required increase the levy to keep in line with the revised 10-year plan 

Any feedback is greatly appreciated.

Thank you

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