Operating Fund

Two Chairs and a big lamp on the Operating Fund page.

What is the operating fund?

Your strata corporation relies on “strata fees” or “condo fees” to raise money to do the following: an operating fund pay for common expenses occurring each year such as landscaping and window washing; and operating fund to pay for a depreciation report examining the quality of the building; and a contingency reserve fund dealing with repairs that occur less frequently such as replacing roofing, siding, windows, building envelopes or parking membranes. Owners contribute to the operating fund through strata fees.

What are the rules on spending money from the operating fund?

Your strata corporation or condo cannot spend money from the operating fund unless two conditions are met: its purpose is to pay for common expenses or a depreciation report; and, second, it must be approved by a resolution passed by a 3/4 vote at an annual general meeting (special general meeting, or authorized through a budget.

Can your strata take money from the operating fund to pay for an unplanned expense?

Your condo can use the operating fund to pay for unplanned expenditures provided that either the amount spent will be less than the amount indicated in the bylaws, or the amount is than either $2,000 or 5% of the amount paid into the operating fund in the current year. Importantly, your strata may take money from the operating fund or contingency reserve fund to pay for unplanned expenses, if it has “reasonable grounds to believe that spending the money immediately will ensure the safety of others or prevent damage.

How are your condo fees calculated?

To calculate the amount of your condo fees, take the unit entitlement of your strata lot and divide by the the total unit entitlement of all strata lots. Once you have amount, multiply it by the the total contribution. Although this formula is generally used, your strata corporation may by a unanimous vote resolution, held after the first annual general meeting, decide to use different formulas to calculate a strata lot’s share of the contribution to the operating fund and contingency reserve fund.