The other day, I had a complaint that the levies were going up too fast. Yes, I agree, that you don’t want high levies. But costs must be covered. But the funny thing was. The complaint came from an owner who had not any of the last meetings. So I was a bit surprised.
Owners who do not come to meetings should not moan. The budget meeting is there for a reason. It is where you can have your say in how the repairs and maintenance need to be done and therefore have an influence in what effect it has on the levy. We encourage people to come to all meetings also the budget meeting as this is where the levy is decided. This way everybody is on the samen page and as an owner you will be able to view how the budget is made up and why.
What Legislation Demands
Current legislation demands that the finances are put together in a special way and this allows for comparisons between last year and this. The Act also says how maintenance must be paid and how reserves must be built up. A good managing agent protects the trustees by ensuring that they are complying to the act.
At the budget meeting, in the last month before the financial yearend, your managing agent should be walking you through the proposed budget item by item and across the year to ensure they have not missed anything.
At that point owners can suggest amendments and adjustment to the budget. Once this is done and the recommendations are approved the budget is fixed for the next twelve months.
While the budget is re approved at the Annual General Meeting it is seldom amended (the same people attend this meeting as the budget meeting), unless there have been radical changes in the body corporate situation.