Reserve funds should be budgeted for in the normal levy.
Therefore, the estimated cost of painting the complex would be budgeted into the current levy and not into an additional fund.
This negates the need for a special levy each year.
Be careful not to make the complex finances overly complicated by reserving funds for minor items.
A new gate motor may cost R5 000 but, in the scheme of things, it is a small amount on a million-rand annual budget and would be paid for from the gate repair budget.
Read the reader’s question here.