Flat Chat Strata Forum Strata Committees Current Page

  • Creator
    Topic
  • #9197
    ficitonarchitect
    Flatchatter

      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?

    Viewing 2 replies - 1 through 2 (of 2 total)
    • Author
      Replies
    • #20663
      Jimmy-T
      Keymaster

        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?

        The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
        #20288
        Sir Humphrey
        Strataguru

          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. 

        Viewing 2 replies - 1 through 2 (of 2 total)
        • You must be logged in to reply to this topic.

        Flat Chat Strata Forum Strata Committees Current Page