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Hi All
The OC resolved at the Feb AGM to raise a Special Levy of $175000 in a complex of 12 in NSW. However I noticed the Strata Committee meeting being held to-day has a motion stating they wish to invest only $150000 until works can start in 3 mths… Good idea but I asked why not the full $175000. The answer from our treasurer is that we need $20,000 to pay GST and our annual insurance premiums..He said i he withdraws money to pay these there is a penalty interest. Granted but this should these expenses be calculated as part of the Admin Fund??
I also note that at the Feb 2018 AGM under Capital Works Expense only $150,000 was allocated under Building- Special Levy. All Special Levies have been paid. Why not allocate the amount contributed ,$175000?? No answer from the Strata Manager as yet.
The OC resolved to raise the $175000 for Remedial Works only based on a Specific Scope of Works and we have contracted a Remediation Company to undertake the works for that price (with some provisional works inc in the contract).
Can the Strata Committee (based on advise from our Treasurer) allocate these funds to other expenses which are not remedial. I cannot remove this from the Agenda as I cannot obtain the 1/3 required to remove it -general disinterest here except for a minority.
We also agreed to a large increase in our standard levies this year so I can’t understand the need to take from the Special Levy.
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I suspect the ‘misplaced’ amount has been used to cover an historic shortfall in income because of your levies having been previously set too low, something that has been remedied by future levies being higher.
The keyword here is “future”. If your scheme doesn’t have enough money in the bank to run the building, you will always be at least three months behind as you wait for the quarterly levies to come in.
The best way to give yourself a buffer is to top up the funds and then make the levies more realistic.
To be sure, I’d be asking your strata manager if this is what has occurred. But there’s probably nothing sinister in this. Experienced strata managers will shift funds around to minimise the stress on owners, but the money is always there, somewhere.
The opinions offered in these Forum posts and replies are not intended to be taken as legal advice. Readers with serious issues should consult experienced strata lawyers.
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