My strata levies have increased, but there is no explanation in the AGM minutes. Who can I ask about the increase?
I read on your site that levies are normally only increased if there is a need for new works or additional expenses, and that owners should ask why there is an increase. But, who do I ask?
I asked our strata managing agent and pointed out that there was nothing in the AGM minutes regarding a reason for the increase, but they could not give me a substantial reason. I am on the strata committee, but could not attend the AGM due to work commitments. I have emailed the other committee members, but they are too scared of one bullying member to respond to my question.
Where do I go from here?
The best first step is to review the budget documents with fellow committee members.
While I could not confirm without reviewing a copy of the income and expenditure, budget and capital works forecast report documents, depending on the percentage increase, this could be due to one of the three following things:
- Correcting a deficit in the administrative budget due to unanticipated expenditure from the last financial year
- Achieving the recommended balance for the current financial year within the capital works forecast report
- Aligning the previous budget and expenditure with the anticipated inflation for the new financial period
As a first point of call, obtain and review the documentation referenced above with your fellow committee members.
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During her tenure as a Licensed Strata Manager, Megan played an integral part of the strata industry since 2017 when commencing with an Industry Leader and was recognised for her dedication in the awarding of the 2019 SCA NSW Rising Star Award and 2020 SCA Australasia Rising Star Award.
Equipped with a Class 2 Strata Management Licence and Certificate 4 in Strata Management, she possesses a strong foundation of knowledge and expertise with respect to the multi-faceted management requirements of Owners Corporations, Building Management Committees, and all forms of Registered Associations, including but not limited to, Asset Management, Trust Account Management, Compliance Management, and complex Meeting Management with internal and external stakeholders.
Through the combination of all aspects of her professional experience, business management skills and passion for achieving success on behalf of her client base, Megan has been drawn to co-founding Tender Advisory to help Owners Corporation’s re-gain their confidence and control over the management of their properties and their trust accounts.
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