Sinking Fund - BCsystems · the administrative or sinking fund must be paid into 1 or more accounts...

Sinking Fund From Forecast to Levies

David Allen

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

What does the legislation say?

What does the legislation say?

What does the legislation say?

Sinking Fund expenses include such items as:

• Painting the Common Property

• Structural Repairs

• Boundary Fences

• Common Property Carpets

• Furniture and Equipment

• Lift Refurbishments

Budgeting

Approval

Committee Resolution

Owners Resolution

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.

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