The administration or operational budget is passed usually at an annual general meeting. These are simply put the regular expenses.
Here are the five purposes of why this particular budget should be raised at each and will general meeting by your strata community .
1. Regular repair and maintenance of the common property - there is no doubt that from time to time your strata community's common property would require regular repair and maintenance and raising that administration or operational budget is definitely important in carrying out these regular repairs or maintenance.
2. Common property insurance premium - a big chunk as we say of administration or operational budget is for that funding to be contributed to the premium of the strata insurance. It's important that the strata community make sure that there's a sufficient budget to make sure that all properties and common property and all the legal requirements to give protection to the strata community are covered in that premium to avoid necessary special levies being raised .
3. Strata managers professional fees - where your strata community has hired a strata manager, part of the administration or operational budget would be allocated to the professional fees of your strata manager.
4. Emergency works for common property - it is essential that your strata community puts in funding for any emergency works for common properly. It would be very difficult to comply with any legal obligations, moral obligations, and safety obligations of your occupiers if there is little budget for emergency works it is difficult to determine when an emergency would occur does call the emergency and therefore, a budget should be included at the annual general meeting.
5. Contingency funds - a healthy budget would allow not less than 10% contingency fund for the strata community to allow for any increase in payment for services and goods. Your strata community must make sure that there is a contingency fund or percentage allocated in your administration or operational budget .