What is the best way to plan a ten-year Reserve Fund plan?
There is a series of steps repeated during each ten-year cycle following the development of the first ten-year plan.
- First year: The Owners Association appoints an expert to prepare the Reserve Fund plan. The plan must cover ten years from the date of the First Annual General Assembly.
- Second year: The finalised plan is presented to the owners and is the basis for determining Reserve Fund contributions on an annual basis over the ten-year lifetime of the Reserve Fund plan.
- Third and fourth years: The Reserve Fund plan is to be used as the basis for determining contributions (service charge).
- Fifth year: The Reserve Fund plan must be reviewed and any necessary adjustments made. The Reserve Fund plan continues to be used as the basis for determining contributions at the following Annual General Assembly.
- Final year: The Owners Association appoints someone to prepare a new ten-year Reserve Fund plan for adoption by the Annual General Assembly the following year.