#28587
Lady Penelope
Strataguru

    I would have thought that there should have been a separate Motion resolving the issue of whether the OC was agreeable to the obtaining of a Strata Loan before the budget was set. 

    This should have been at least a two step process:

    Step (1): Obtain approval for the levy increase – possibly by way of a Motion with Alternatives which gave owners a choice between (a) a Special Levy, (b) a Strata Loan, or (c) ‘beefed up’ ordinary levies with monies to be accrued over time. NB: This all depends upon how urgent the need is for the work.

    To keep things easy and simple this approval should have been sought at an EGM prior to the AGM. The Committee and the SM should then have relied upon the outcome of the Motion with Alternatives to craft the legislated annual Budget Motions to be submitted for the upcoming AGM.

    Step (2): The OC approves the AGM Budget which includes the approval obtained in Step (1).

    It seems very unusual to build the Strata Loan into the annual budget without first obtaining OC approval for this action.