FAQ CATEGORY 15/06/22
What is a Capital Works Fund Plan?
The 10 year plan – Planning for something big.
Your strata scheme needs to make a 10-year plan of expected major work that will be paid with the capital works fund.
The Capital works fund is the fixing and maintaining fund used to pay for capital expenses when they happen. It’s like the savings account for the strata scheme and it’s where the big ticket items such as painting, fencing, driveway repairs, carpets, roofing and guttering are paid from.
A capital works fund plan is generally prepared by a quantity surveyor who after inspecting the property taking in to account the age, features and facilities provides a report noting proposed work / maintenance for the scheme to consider and the timing and anticipated costs of the works.
The plan suggests an amount that the scheme should raise each year into the Capital Works Fund to save for the works when due. The strata manager will use the plan for the proposed budget each year for the owners to consider at the AGM.
The 10-year plan must start from the first AGM of the owners corporation and be reviewed at least every five years although you’ll commonly see this on the AGM agenda every year.
If the Capital works fund balance is insufficient when major repairs are due it increases the possibility that special levies may be needed therefore it’s worthwhile for plans to obtain and stick to their plan.
Who is entitled to vote at meetings - 14/12/22
Owners automatically have the right to vote at strata meetings, as long as they don’t owe the scheme any unpaid levies. Here are the details noting a key reference being the date of the meeting notice. Meetings of the Owners Corporation Voting rights cannot be exercised if contributions not paid. A vote at a general meeting (other than a vote on a motion requiring a unanimous resolution) by an owner of a lot or a person with a priority vote in respect of the lot does not count if the owner of the lot was an unfinancial owner at the date notice of the meeting was given and did not pay the amounts owing before the meeting. Meetings of the [...]
How do I contact the Strata Committee? - 07/07/22
If you are an owner ask your strata manager for their details or check the last annual general meeting minutes. The committee are appointed at each annual general meeting (AGM) so their names will be noted in the minutes. Alternatively if your strata scheme has a notice board check on there or if that fails take a walk around your complex and ask some of the owner-occupiers.
