Redwood Estate

42 Main Road, Tawa

Financial Information for Owners

Disclaimer: The following information is intended for villa owners and residents of Redwood Estate, Tawa. Neither the body corporate nor management company accept responsibility or liability to any other person or organisation using this information.
Levy Calculation
Budgets for operational needs, long term maintenance and contingency funds are approved each year at the Annual General Meeting as required by the Unit Titles Act 2010. Owners' levies are calculated by apportioning the total of the approved budgets by each villa's ownership share of the body corporate (as shown in each owner's Land Title Certificate). In addition, a fee is due to the management company for services provided in accordance with the individual service agreement between each owner and the management company. This fee is added to the body corporate levy and the combined amount is due in fortnightly instalments. Payments are due in advance.
Operational Fund
The opertational account is used to fund the buildings insurance premium, body corporate administration costs and minor repairs to the common property. Routine maintenance of the common property is covered under each owner's individual service agreement with the management company, so no levy is made by the body corporate for routine maintenance.
Long Term Maintenance Fund
Section 116 of the Unit Titles Act 2010 requires the body corporate to have a Long Term Maintenance Plan (LTMP) , which should be reviewed at least once every three years. The LTMP details the expected requirments for repairs or replacement of common property assets over the next 30 years (years 1 to 10 in detail, years 11 to 30 in outline). The Long Term Maintenance Fund is created to accumulate money to pay for the expected expenditure detailed in the LTMP, which can vary substantially from year to year. The LTMP can be partially or fully funded by the LTM Fund. If the LTMP is only partially funded by the LTM Fund, then any shortfall must be paid from the operational fund levy for the year in which the expenditure is due. The Redwood Estate LTMP is due for review at the 2026 Annual General Meeting.
Contingency Fund
The Contingency Fund is created to provide a reserve of money in case the body corporate is faced with unexpected expenditure such as unplanned legal costs, repairs not covered by insurance, or other unforseen expenditure. Levy contributions to the Redwood Estate Contingency Fund were suspended in 2017, since which time the fund has not needed to be used.