Queensland Consolidated Acts Queensland Consolidated Acts(1) The scheme operator must adopt a budget (a maintenance reserve fund budget) for each financial year for the maintenance reserve fund.
(2) For subsection (1), the maintenance reserve fund budget must—
(a) allow for raising a reasonable amount for maintenance and repairs to—
(i) provide for necessary and reasonable spending from the maintenance reserve fund for the financial year; and
(ii) reserve an appropriate proportional share of amounts necessary to be accumulated to meet anticipated major expenditure over at least the next 9 years after the financial year; and
(b) fix the amount to be raised by way of contribution to cover the estimated recurrent expenditure mentioned in paragraph (a).
Example—
Painting of village property is anticipated to be necessary in 3 years time at a cost currently estimated at $3000. The contribution amount for the maintenance reserve fund in the budget for the financial year must therefore include the annual proportional share for painting of $1000. Next year, the estimated cost has increased to $3400 and so the second year levy will be $1200. The estimated cost in the third year is $3500, so with the $2200 accumulated, a levy of $1300 is necessary to meet the cost.
(3) The residents committee may, by written notice given to the scheme operator, ask the scheme operator to give the residents committee a copy of the draft maintenance reserve fund budget for the financial year at least 14 days before the beginning of the financial year to which the draft maintenance reserve fund budget relates.
(4) The notice must be given at least 28 days before the beginning of the financial year to which the draft maintenance reserve fund budget relates.
(5) The scheme operator must comply with the notice.
(6) If, at the end of a financial year for which a budget for the maintenance reserve fund is adopted, there is a surplus or deficit, the surplus or deficit in the maintenance reserve fund must be carried forward and taken into account in adopting the budget for the general services charges for the next financial year.
(7) Subsection (6) applies despite section 106(1).