Special contributions are reserve fund contributions with interest accrued in the reserve fund – above and beyond regular reserve fund contributions – typically for a future fiscal-year when a large expenditure occurs.
Special contributions are in effect 50 percent simple-majority vote monies on the same footing as operating budget expenses –if the expenditure was detailed in an existing RFS|DR’s benchmark component inventory.
These are introduced in reserve fund planning that incrementally moves a strata corporation – according to the long-term plan of a strata council – towards improved funding above and beyond smooth increases in regular contributions.
While special levies are voted on typically in a current year – usually in reaction to a catastrophic event – special contributions are planned well ahead of their implemented year, as detailed in a best-practice depreciation report.
With reserve fund planning and best-practice depreciation reports, all the members of, and all active strata councils that a development will have over its economic life, will be prepared for the demands of managing strata finances.