Module #9 Adapting CRF Contributions Levels
Required levels of Contingency Reserve Fund contributions are set in place as part of every annual AGM budget. By law, they must amount to more than 10% of the total Operating budget for the coming year. Beyond this mandatory base level of CRF contributions, they are also the result of capital works expenditures that Council proposes for the coming year, and what also needs to be factored in to outlying future years.
Of course all these fund-raising and expenditures measures must be proposed and justified as Resolutions to be approved by majority or ¾ approval vote by Owners.
The D.R. will have presented 3 models of CRF funding measures covering the anticipated expenditures over the coming 30 years.
This Adaptation & Implementation process zeroes in on the next 5 years of likely components capital works requirements, and seeks to set CRF funding accordingly.
So all the considerations of the A&I process should be reflected in Council’s proposed forward CRF contributions settings, including the priorities and affordability for the strata’s ownership demographic.
The aim is to set CRF contributions at the “Goldilocks” levels for the coming 5-years outlook -– not too low, not too high, just right.
