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Levy increases /special levy
Please assist anyone, we were given fair notice of a AGM and 24-36 hours before the meeting received an SMS advising meeting was cancelled. Then in the post box receive a letter advising the following:
Levy increase of 40%
Special Levy for Water Deposit (municipality) R380.00
Special Levy (plumbers Acc) R680.00
payable within 5 days.
No dicussion just like that.
Looking back I find that the levy increases over the past 3 years have amounted to almost 150% and there is even more invome as new units built have been sold and additional revenue is received.
Surely this is unacceptable as I have not seen a budget for the new year or the Financials for the previous year??
And do I get my water deposit back should I sell?
All units despite the size are expected to pay equal amounts, we pay individual rates and the levy was changed to equal amounts following the rates changes. Surely this is not right??
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RE: Levy increases /special levy
Follow.
RE: RE: Levy increases /special levy
Unfortuneately the regulations make it possible for the inciumbent Trustees to impose a special levy without prior notice.
This Levy is only for an unbudgeted expense.
You may however at your AGM impose a restriction on the Trustees regarding special levies. i.e that it has to be ratified at a special general meeting. Note ratification wiould not be the subject of a special resolution but by a simple majority vote.
The water deposit is a balance sheet item and should not come out of the expense accounts and not normally subject of a special levy.
If however a water deposit was not raised on purchase of the unit it is reasonable to request such a deposit from the owners.
Such deposit is refundable on sale of the unit and should be held in a control account.
Talk to your auditors.
RE: Levy increases /special levy
I would be inclined to disregard the letter advising the increases because this sounds like some autocratic trustee imposing his/her own will on the complex. There can be NO changes to the status quo WITHOUT discussion with EVERYONE in the complex. "No discussion" probably equals "autocracy" - you do as I say because I say so. And that is NOT acceptable!
FIGHT IT!
RE: Levy increases /special levy
Hi
This is just a repeat of my post on the topic "Levies" a few days ago:
Ordinary monthly contributions may only be increased in one of two ways....Show More
1. An interim increase of 10% maximum (PMR 31 (4A)) which is from the end of the financial year until the AGM is held. 2. At the AGM the members have to approve the estimates presented by the trustees (PMR's 36 and 56 (b)). This is the amount the trustees must use to determine the new contributions i.t.o. PMR 31 and not any amount they might wish to use.
Apart from 1 above the trustees have NO authority to increase contributions.
From this the 40% is highly irregular as it does not appear that the correct procedures were followed neither were the requirements of the STA met. You should attempt to get the signatures of owners who hold at least 25% of the PQ values in the scheme to request a special general meeting to resolve the problem (PMR 53). If the trustees do not convene the meeting within 14 days the owners may do so themselves.
I have taken part in the following Paddocks courses:
- UCT Sectional Title Scheme Management Course - 2006 12
- Paddocks Sectional Title Bookkeeping Course - 2009 03
- Paddocks Law of Sectional Title Meetings Course - 2009 07
