sinking fund - bcsystems · the administrative or sinking fund must be paid into 1 or more accounts...
TRANSCRIPT
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Sinking Fund From Forecast to Levies
David Allen
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What we will cover:
• Sinking Fund Forecast, What it is and why have one?
• Reading a Sinking Fund Forecast
• Budgeting for Sinking Fund Expenses
• Seeking Approval – Committee/Owners
• Sinking Fund Levies
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What does the legislation say?
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What does the legislation say?
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What does the legislation say?
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Sinking Fund expenses include such items as:
• Painting the Common Property
• Structural Repairs
• Boundary Fences
• Common Property Carpets
• Furniture and Equipment
• Lift Refurbishments
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Budgeting
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Approval
Committee Resolution
Owners Resolution
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Levies
The Body Corporate must:
• Determine, on the basis of its budgets, the contributions to be
levied on the owner of each lot.
• Decide the number of contribution instalments to be paid.
• Set the date on or before which the payment of each
instalment is required.
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Summary
What the legislation says about Sinking Funds and Budgets
Why we have a Sinking Fund
Reading a Sinking Fund Forecast
- Identifying the Expense Items
- Year of Expense
- Estimated Costs
- Opening Balances
- Closing Balances
Budgeting and the importance of staying on track
Types of approval – committee meeting / general meeting
Levies – annual contributions and special levies
David Allen
Development Manager
Body Corporate Manager