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Reserve Fund Annual Allocation

The benchmark analysis produces this reserve fund regular contributions specific number for the current fiscal-year at the point-in-time of the depreciation report assignment.

Based on market forces, cumulative expenditure events since construction and on the efforts of successive strata councils, it represents a current maximum regular contributions amount that could be drawn on the strata corporation in the current fiscal-year, if it were to conduct all planned current and future expenditures as laid out in the benchmark, the projection and the benchmarked scenario.

Beware of reports that take either the benchmark current replacement requirements or the benchmark current fiscal-year annual allocation number and stipulate that maximum or ‘full-funding | fully-funded status’ is attained by slapping either amount, without adjusting it for inflation or in any way, in any other year or even in thirty years’ time at the end of a projection – estimating that your retirement requirements in thirty years’ time are equal to today’s estimated needs makes little sense.

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.