For a summary of AGM (for those who missed it) link here

Summary: Draft report as at 2nd November 2010
10 Year Admin & Sinking Funds Budget Projections
(2010-2020)

The budget is for consideration, before the final draft
The budgets in the draft for 2010-2011 have revised the budgets approved at the 2010 AGM. The out years from 2011/12 to 2019/20 are planning projections. The sinking fund projections allow for the accumulation of sufficient funds to meet the future costs of major projects such as road and fencing, and for planned projects including a new bore and tank, and the construction of stockyards.

The projections show that levies should rise by about 24% in the 2011/2012 Financial Year to provide for the increased costs of routine administration and maintenance of the Estate. Levies have not been raised for several years, if ever, and have therefore not kept pace with rising costs and with the need for more regular maintenance of capital assets. NOTE: To maintain the capital assets of the property and to preserve the capital value of the estate it will be necessary to increase levies in 2011/2012 by about $10,000. This represents an increase of about 24%.

It is further proposed to increase levies by a total of $1000 per annum thereafter to allow for increasing costs. NOTE: the proposal to charge horse owners a small weekly agistment fee beginning in the 2011/2012 Financial Year. This will ensure that the burden of maintenance on the horse paddocks falls on horse owners rather than all members of the Association. Should the agistment fee not be approved an extra $5000 total will need to be added to the increase in levies on all members.

It is recommended that the Association require the Executive Committee to adhere to the annual budgets with authorisation to vary individual line items by 10% over or under. Greater variation will require authorisation by Special General Meeting.To allow the Executive Committee some leeway to cope with unforeseen expenditures a small contingency fund has been added to both the Administration and Sinking Funds budgets.

Expenditures on projects not authorised within these budgets will require authorisation from an AGM or SGM. All such proposals should be fully and accurately costed and should indicate whether or not additional levies will be required. Major proposals should be subjected to a due diligence process to ensure viability and accuracy of costing.

It is recommended that a "Future Works Provision Fund" be set up, separate from but part of the Sinking Fund, to allow budgeted funds for future expenditures to be set aside or quarantined for specific purposes. 

NOTE:Provision to reseal the roads in 2028-2030 is the major item for which the Association will have to set aside capital. The cost will be in the vicinity of $150,000.00 by then. The second major long term item is renewing fences as they deteriorate and need replacing. Provision for a new bore and tank, and for stockyards are also major items.
It is proposed that a "Future Works Provision Fund" be set up, into which capital from the Sinking Fund is set aside for future forecasted expenditure. $10k per annum to be set aside for roads in each of the 15 years leading up to 2028/2030. A total of about $150k.

From: Meeting held on 22nd March
Summary & Motion of the Community Consultation
Draft Ten Year Budget Plan

 It was proposed at the 2010 AGM that the community association have a 10 year budget plan. Ross volunteered to put together a draft budget plan, and a subcommittee met on several occasions to discuss this.

At the general meeting on 22nd March, Damian (chair) outlined the reason for the meeting and Ross was invited to go through his draft budget plan with the community. (The meeting was attended by seventeen interested members of the community).

Discussion and questions followed. The bigger question was put: How much do we intend to do, here at Buckingham?

Damien concluded that unless we can identify major savings, (apart from volunteers, generosity and good spirit) across the board – bore, horse, fences, etc. there will need to be a visible increase in levies.

The meeting accepted that there needed to be an increase in levies and that a motion be put to the AGM:
That we need to increase the levies by 12.5% each year for the next two years, to be reviewed in 2012, based on the CPI.

FEBRUARY SUMMARY:

As you are no doubt aware we live in a unique situation on Buckingham. We really are very privileged to not just own our two acre block but also be partners in a beautiful big piece of rural land, with lakes, dams, privacy, peace, quiet, fresh air, freedom to roam and a million of other positives. However, in order to maintain this uniqueness, there are ongoing and future costs that must be considered.
To this end, a draft budget plan has been prepared and the committee now wishes to consult with the community before a final plan is presented for consideration. It indicates that levies should be increased to ensure that the Association can meet all of the costs required to administer and maintain the Estate, and to cope with major capital expenditures into the future.
The draft plan also proposes that the Executive Committee be required to adhere to the annual budgets, and that any variation to the budgets must be approved by a Special General Meeting of owners. However sufficient contingency is built in to allow the Committee reasonable flexibility.

Administration Fund
Analysis of the financial affairs of the Association has revealed that the Administration Fund levy should be increased in the 2011/2012 financial year to provide for the increased costs of routine administration and maintenance of the Estate; and that it should continue to increase by a small amount each year thereafter.

Sinking Fund
The Sinking Fund provides for major expenditure, either for new capital assets or to replace existing assets; and it provides for major repairs and maintenance.
The draft plan assumes that the Association should plan for these major expenditures, and should prudently set aside capital funds each year in order to provision for them.
Roads. The most costly item is the maintenance of the roads. The roads have recently been resealed and will probably not need to be done again until 2028-2030. However the cost by then will be in the vicinity of $150k; requiring that the Association set aside about $10k per annum from now on.
Fencing. Fencing is one of the most expensive capital assets on any rural property, and it deteriorates over time. $5k per annum, increasing to $10k per annum over time, has been provisioned in the draft plan to meet the future costs of new and replacement fencing.
New Capital Expenditure. New capital assets provisioned in the draft plan include a new bore and tank ($30k), stockyards ($15k), soil and pasture improvement, and tree planting.

The analysis indicates that the Sinking Fund levy should rise in the 2011/2012 financial year, and should continue to increase by a small amount each year thereafter.

Consultation: General Meeting (newsletter circulated to residents)

To be held on 22nd March at 8.00pm in the Community Hall to provide guidance and input before the final plan is produced for formal consideration.

Residents can access their strata accounts on the Ian McNamee web site. You will need to obtain a password first, so please contact : Ian McNamee & Partners Pty Ltd
Strata Department via their web site at www.mcnamee.com.au and then click on the Strata tab, followed by the email contact address. You need to send them an email and they will give you the details as to how you can access your account.

Living in a Community Scheme is a very informative document available at www.fairtrading.nsw.gov.au

New Water troughs

New water troughs are now in the front horse paddock (stage 2) horse owners will have to take responsibility of monitoring these and contact the executive if any problems arise.

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Copyright BCA 2006