Effective Recommendations Start-date
Depreciation reports include recommended changes to the amount and/or magnitude of regular and special contributions to the reserve fund of a strata corporation.
The effective recommendations start-date exists because the strata corporation will vote on changes at the next AGM, and implement these changes as of the beginning of the first day of the fiscal-year that follows the current fiscal-year, regardless of when the vote took place.
This effective date typically coincides with the second column in the thirty year projection common to all scenarios.
It is important to note that the ‘effective date’ used by appraisers in their appraisals usually refers to the date of their visit to a property – their version has little to no place in reserve fund planning.