What can a strata corporation do with an operating budget surplus?

If a strata corporation has a budget surplus after meeting all operating expenses in a fiscal year, the budget surplus may be: 1

  • Transferred into the contingency reserve fund;
  • Carried forward as part of the operating fund; or
  • Used to reduce the total contribution to the following year’s operating fund.

If the owners would like to use the surplus funds for another purpose, this use must be approved by a ¾ vote of the owners at an Annual or Special General Meeting. 2

 

 

 

Notes:

  1. Strata Property Act, SBC 1998, c.43, s.105(1). Note that these options are subject to certain restrictions and obligations for new construction and owners developer under section 14.
  2. Strata Property Act, SBC 1998, c.43, s.105(1)