Strata Manager Evelyn Chen is preparing the annual budget for Strata Plan NWP5678 in New Westminster. The strata corporation's current fiscal year operating expenses are $300,000. The depreciation report recommends an annual CRF contribution of $45,000 for the next 3 years. The strata council wishes to follow this recommendation. What is the minimum percentage of the previous year's operating expenses that the strata corporation must include in the budget for the CRF contribution?

Question: Strata Manager Evelyn Chen is preparing the annual budget for Strata Plan NWP5678 in New Westminster. The strata corporation's current fiscal year operating expenses are $300,000. The depreciation report recommends an annual CRF contribution of $45,000 for the next 3 years. The strata council wishes to follow this recommendation. What is the minimum percentage of the previous year's operating expenses that the strata corporation must include in the budget for the CRF contribution?

Answer options:

• 10%
• 15% ✅ At least 10%, but potentially higher if the depreciation report dictates.
• 5%

Correct answer: At least 10%, but potentially higher if the depreciation report dictates.

Explanation: While Section 93(1)(a) of the Strata Property Act sets a 10% minimum, the actual contribution may be higher, especially if a depreciation report indicates a larger contribution is needed to adequately fund future repairs and replacements.