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Contribution Increase Rate

The year-to-year increase rate that factors in both the inflation and interest rate to determine the required increase percentage for regular reserve fund contributions.

This rate cannot be based on simply meeting the shortfall for a calendar year, as on a cumulative basis over multiple fiscal-years, meeting one year’s shortfall automatically creates an exponentially growing cumulative shortfall in the following years.

Sound best-practice reserve fund planning dictates that this increase rate is to be stable over the long-term to facilitate owners’ financial planning.

About Author: Jean-François

With experience gained in construction, project management, field reviews, inspections, report writing and as strata president, J.-F. has cross-industry expertise guaranteeing that you will participate in a process geared to improving the corporation's finances and to setting the condo | strata board | council's planning to stand the test-of-time.