#28906
scotlandx
Strataguru

    There seems to be a general lack of understanding of the connection between the annual budget and levies. The budget sets out what the OC believes will be the costs for the next year, you then set the levies accordingly. If you are doing the job properly, you would include the cost of planned capital works and refer to how much the OC has on hand.

    I worked for several years to convince the owners in our scheme to raise the levies to a realistic amount – in the first year the owners actually reduced the levies, even though we had a long list of things that needed to be done. After part of the building had to be closed off for works that took 3 years, they changed their minds. We increased the levies by 25% two years in a row, i.e. we increaded them by 50%. They are high, but we have had the money on hand to do a range of items with no special levies. I know some people don’t agree with that approach, but it works for us.

    To answer your question, there is no limit to an increase in levies.