4.1 The Members Set the Full Monthly Housing Charges
The full monthly housing charges can be set only by a vote of the members at a general meeting. Members do this annually or more often as needed. A budget must be presented to the members for approval when they are asked to consider a change in housing charges. Existing charges continue until the members approve a change. The members may approve charges that are different from those proposed in the budget.
4.2 Annual Budgets
- Operating budget
Each year the board of directors will submit an operating budget for the next fiscal year for approval of the members at a general meeting. The operating budget must contain:- the total expected cost of operating the co-op
- a breakdown of the total expected cost in detailed categories
- the full monthly housing charges proposed for each unit or kind of unit
- The cost of any special expenses which the board suggests and that charges to the member that would result from this.
- Capital (replacement) budget
The board of directors may prepare a capital budget for approval of the members if it is planning replacement expenses that are out of the ordinary. If possible, it should be presented to the members at the same time as the operating budget. A capital budget must contain:- the proposed capital expenses
- the proposed source of funds
- the effect of the proposed expenses on the co-op’s capital reserve
- the effect of the proposed expenses on the co-op’s future operating budget
- the estimated timeline for the capital expenses.
- Approval by members
Approval of an operating budget or capital budget by the members authorizes the board of directors to spend money as stated in the budget.
4.3 Notice of Proposed Budget
A general meeting can consider a proposed budget and proposed housing charges only if the notice of the general meeting states that a budget will be considered. The notice must be given as required by the Co-operative Corporations Act and the by-laws. A copy of the proposed budget must be delivered to each unit at least five days before the budget meeting. This must include the full housing charges for each type of unit if changes are proposed.
4.4 Notice of Change in Housing Charges
Notice of change in housing charges must be delivered to each unit within a reasonable time after the meeting and at least 60 days before the housing charge change can take effect. The members at a general members meeting can decide by a two -thirds vote on a different date for the new charges to begin, including an earlier date.
4.5 Mid-year Change in Housing Charges
The board of directors may decide that there should be a change in the budget and/or housing charges during a fiscal year. If so, the board will prepare a budget or statement showing the reason for the change and submit it to a meeting of the members. Section 4.3 of this By-law states how the co‑op will give notice of this meeting. Timing and other rules about any change will be as stated in sections 4.1 to 4.4 as applicable.