near - term, and there could be operating cost savings. The RFS tells us the garage will need major repairs soon. The corporation spent a small amount on patch repairs last year which may extend life, and the garage looks to be in good condition. The garage is a significant expense for the corporation (and it may be structural in nature), and so it is worthwhile to have an engineer complete a condition assessment. If the result of the assessment is that there is a significant difference compared to the RFS in timing or costs, it would make sense to have a financial update of the RFS completed. Work is needed on the roadways. Patch repairs should be considered at a minimum for health and safety, but the work could advance. Because timing of projects is changing, it would be a good idea to complete a cash flow review to make sure this will not result in a negative balance. • The current investments need to be reviewed and considered to have cash available for the garage project. • There is a slight variance between RFS estimates and actual. Could the corporation consider transferring some excess operating surplus (if available), or slightly increasing fees to boost the reserve fund balance A minor change now could prevent a large, unexpected increase with the next RFS update. This sample condo has some work still to do, but they are on their way. I would recommend that this review be completed in November or December annually, regardless of your corporation ’ s year - end. The late fall/early winter is the ideal time to work on planning for the spring construction season. If the review is not aligned with your year - end take another look at the plan when budget time comes around. A common concern in many condominium corporations is transparency. You can also use the details of this planning process to communicate with owners effectively about their financial position and what they can expect in terms of upcoming construction around their homes. An
open planning process, displaying the proper due diligence can go a long way. You may do this regularly at the AGM, with written communications through the year, or call a special meeting of owners if there are items of significance within the plan that need to be discussed in detail. Now, not only are the board and owners satisfied that the right decisions are being made, but property management also has clear direction (and was hopefully an active participant in the process). All of the people affected by these major decisions are set up for success because expectations are clear. But, construction projects are full of surprises. Remember to adjust along the way. What if your review raises alarms? DON ’ T PANIC. Engage your experts to help you develop a plan. Communicate to your owners early and often about what ’ s happening. And finally, be realistic about your options. Just like with your annual review, significant variances from your plan should be approach with critical thinking, open communication, and considering all the facts. –LM
CCI Review 2021/2022 —September 2021 - 24
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