Each year the condo’s Board of Directors is responsible to prepare a budget for the coming year. Normally the budget is prepared by select members of the Board (the Treasurer & the President, for example) and then presented to the entire Board of Directors for discussion and approval. It is a responsibility of the Board and does not require approval of the owners. However, many Boards will present the budget at a General Meeting of the owners. During this meeting, owners may ask questions or offer opinions, which could influence the Board’s final budget projections.
The importance of the condominium corporation’s budget is twofold:
- To assess the expenses of managing the day-to-day operations over the next year and
to make the required contribution to the Reserve Fund (as required by the NB Condominium Property Act and as recommended in your Reserve Fund Study).
- To determine what income is required to offset these expenses. Income is mostly from condominium fees, although rental of guest suites, revenue from estoppel certificates, interest revenue, and rental fees for storage lockers & parking spaces does contribute a small portion in some condominium corporations.