Meetings: budget - community titles

In this and the following sections, we take you through the agenda of a community corporation AGM.

Budget:

This item follows on from the Maintenance item.

Raising Levies.: Click on Legislation above, to view community title legislation on raising levies.

Administrative & Sinking Funds: Click on Legislation above, to view community title legislation covering Administrative & Sinking Funds. Please note that it is compulsory to establish both funds.

An extract from our pro-forma minutes follows...

Budget:

BUDGET:
The Chair/Treasurer/Manager circulated and presented the budget estimates proposal, and pointed out that there were various philosophies that could be adopted to establish a budget.
1.         A balanced budget, which does not accrue any funds for future known or unknown events, however predictable expenditures; or
2.         An accrued budget, which sets aside a proportion of regular contributions for the specific purpose of providing for future expenditure eg. driveway maintenance, repainting (known as a Reserve Fund or Sinking Fund). Note: under Section 116 of the Community Titles Act it is compulsory to establish a Sinking Fund.
It was resolved following discussion that the following recommended Budget Estimates be adopted.

Moved____________ / Seconded ____________ Motion carried

******  insert budget here ****** 

CONTRIBUTIONS:
Administration Fund: In accordance with this resolution, the total quarterly contribution to the Administration Fund will increase to $_______   from  ___/___/___ or remain at $_______ .

Sinking/Reserve Fund: In accordance with this resolution, the total quarterly contribution to the Sinking/Reserve Fund will increase to $_______   from  ___/___/___ or remain at $_______ .

Contributions are divisible by lot entitlement, as defined upon the deposited plan.
OR
Contributions are divisible equally rather than by lot entitlement, as defined upon the deposited community plan. (requires a unanimous resolution if there is to be a change in how owners currently pay)

 

Cases where owner not liable to contribute. Click on Legislation above, to view community title legislation covering which indicates when an owner may be exempt from paying a levy..

As treasurer ...

• have a draft budget at hand along with copies for all present
• ensure your group does not go into deficit during any quarter of the coming year
• do not be afraid to recommend levy changes if you are able to show they are needed

The following is a proforma policy regarding overdue contributions. We strongly suggest all groups adopt this policy or a similar one. Check your By Laws, this item may already be covered.

OVERDUE CONTRIBUTIONS INTEREST & FEES:
Policy - Overdue Contributions Interest & Fees: That the payment of the Corporation Account Notice is the responsibility of each unit holder, and accounts must be paid within twenty-eight (28) days of the due date for payment.  If any account is not paid within 28 days of the due date, unit owners are required to pay interest on the overdue amount at the rate of twelve (12%) per annum calculated from the due date until payment. They must pay all expenses incurred in pursuing recovery of overdue amounts including: but not limited to, legal fees, administrative costs, location and service fees and any commission payable to debt recovery consultants or solicitors. If the account is not paid by the due date a reminder notice will be sent with a late payment charge of $11, including GST.

Moved____________ / Seconded ____________ Motion carried

The following allows for the recording of any special levies required. These may be for insurance, painting or other one off payments.

SPECIAL LEVY:

(lot entitlement)
Resolved that a levy totaling $# be charged in accordance with lot entitlement in respect of each unit, to those persons registered as proprietors of a unit at the date of this meeting. This is due on ___/___/___ for the purpose of ________________.

Moved____________ / Seconded ____________ Motion carried

OR (equally)
Resolved that a levy totaling $_______ be charged equally, in respect of each unit, to those persons registered as proprietors of a unit at the date of this meeting and be due on ___/___/___ for the purpose of ________________. (requires a unanimous resolution if owners currently pay by lot entitlement)

Moved____________ / Seconded ____________ Motion carried

The following may be of assistance.

Budget Pro forma	Budget Example	Levies Explained
click on picture to view & edit	click on picture to view	click on picture to view
Meeting Minutes Pro forma	Meeting Procedure Rules	Three Laws of Meetings
click on picture to view video	click on picture to view	click on picture to view

Link to next step - policies