Strata Plan BCS1234 in Kelowna has annual operating expenses of $250,000. At the last AGM, owners approved a new operating budget. The strata council wants to ensure the CRF maintains an adequate balance. What is the minimum percentage of annual operating expenses that the strata corporation must contribute to the CRF annually?

Question: Strata Plan BCS1234 in Kelowna has annual operating expenses of $250,000. At the last AGM, owners approved a new operating budget. The strata council wants to ensure the CRF maintains an adequate balance. What is the minimum percentage of annual operating expenses that the strata corporation must contribute to the CRF annually?

Answer options:

• 5% ✅ 10%
• 15%
• 25%

Correct answer: 10%

Explanation: Section 93(1)(a) of the Strata Property Act mandates that at least 10% of the previous fiscal year's operating expenses must be contributed to the contingency reserve fund.