What is a Condominium Budget?

 

How does the HST effect the operating budget?


Pie-Graph example of a normal $1.2 Million Dollar Condominium Budget.

You will note the various expenditures and percentages of each.

The highest percentage of costs relates to

1)  Services

2)  Utilities

3)  Reserve Funds

 

 

Condo Building Operating Budget








 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TEMS #1 and #2

How did the HST effect ALL CONDOMINIUMS across the Province.

In the past service contracts would include a 5% GST however that has now changed with the introduction of the HST.  All service contracts wil now have to include the increase to 13%  Service contracts include:  Property Management, Security, Cleaning & Maintenance, etc.

When a normal 5% GST becomes an HST 13% all utilities bill are increased.  The operating budgets for condominiums has to cover expenditures for their fiscal year therefore maintenance fees must fall in line with the budget.

Operating budgets increase as a result of inflation and higher costs relating to building operations and now with the additional HST, maintenance fees which are calculated as per square feet of a Condo Owners unit have to be increased.

ITEMS #3 -   The reserve funds are determined without HST on service related items.  All reserve funds will be inadequate since they do not have a 13% HST fee included.  Condo Corporations will have to top up their contributions to the Reserve Fund.