In terms of , a body corporate shall establish, for administrative expenses, a fund sufficient in the opinion of the body corporate for the repair, upkeep, control, management and administration of the common property (including reasonable provision for future maintenance and repairs), for the payment of rates and taxes and other local authority charges for the supply of electric current, gas, water, fuel and sanitary and other services to the building or buildings and land, and any premiums of insurance, and for the discharge of any duty or fulfilment of any other obligation of the body corporate.
The Body Corporate is responsible for determining the amount to be raised as set out in Section 37(1)(c) the Sectional Titles Act.
How does the Body Corporate determine this amount?
The trustees prepare the budget for the upcoming financial year and the expenses that must be considered are stipulated in Section 37(1)(a) of the Sectional Titles Act.
Who makes the final decision to determine the amount raised or to determine the increase to the levy?
Management Rule 31(2) clearly states that at every annual general meeting, the Body Corporate shall approve the estimate of income and expenditure, and shall determine the amount to be levied upon the owners during the ensuing financial year.
In other words, the decision to increase levies are in the hands of the owner and therefor it is very important for the owners to attend every annual general meeting.