Submitted by Kevin Chaney, on behalf of the SHC Board of Directors
Over a third of our 66 member households met on February 26 over Zoom to discuss the upcoming budget. The budget is our plan to invest in our vision for Sunnyhill, considering both our current and our long-term needs. We identify the cash and reserves we will eventually need to fund capital replacements now and in the future.
At the meeting, we reviewed how our revenue from housing charges funds our annual operating budget and planned capital replacements, with the balance added to our reserves. We now earn very little interest on our bank balance, meaning that it makes more sense to use our money toward the upkeep of our buildings, a major theme in this year’s budget.
In 2018, Sunnyhill hired a third-party engineering firm to undertake a Building Condition Assessment (BCA). The assessment outlined about $2.2 million of capital replacements that would be needed up to 2026, including roofing, windows, balconies, and interior upgrades. We fortunately have about $970,000 in available equity set aside, but we may need to add to that total. An upsetting recent news article about inadequate reserves for a Toronto condominium building provides a cautionary tale.
Condo owners in aging building face $14M in repairs. If they can't pay their part, they risk losing homes
https://www.cbc.ca/news/canada/toronto/condominum-toronto-owners-repairs-1.6323195
Our P&D consultant suggests setting aside and spending about 5% of our total asset value (currently about $130,000) annually on capital replacements. This year’s plan would have us spend about $160,000, with a heavy focus on bathroom replacements, as many of our 44-year-old bathrooms need work to address ventilation issues or accumulating water damage. Needed exterior work may be handled through the proposed Deep Green Retrofit project.
Your Board will meet in the coming days to recommend the housing charge increase for the 2022 budget. In considering the housing charge for the upcoming year, we will need to balance affordability needs with the financial sustainability of Sunnyhill and the long-term viability of our buildings. The Board will present its recommendation as a motion at our upcoming March 26 general meeting, where you will be able to vote on the motion.
Thank you to the Finance Committee (Jane, Meagan, Helen) for their assistance and budget suggestions. Being successful with our finances depends on members, as shareholders in our co-operative, participating in approving and funding the budget through our housing charges, and in facilitating the plan to spend the approved budget.
Part of implementing that plan is having the right people to support the work. We are pleased to introduce Jose Monagas as our permanent Property Coordinator, who was selected by SACHA following a “rigorous interviewing process of many individuals”. Committee Chairs are encouraged to introduce themselves and discuss ways in which Jose could assist with your committee work. One of the items arising from the budget discussion was how the Property Coordinator might be better able to support regular unit inspections.
Also, the Board is aware that some committees (Member's Concerns, Member Involvement and Personnel) have vanished over the years. These committees are vital toward maintaining a healthy co-operative community and we welcome volunteers interested in heading up their revival. Otherwise, the tasks tend to fall back on the shoulder of the Board which then deflects from its governance role. A general meeting is being planned for May 14 where we can discuss committee involvement together.
Finally, the Board is grateful to have Robert Perry join as interim Chair for the next few months and share his experience with us.
Stay tuned for notice regarding the budget vote on Saturday March 26!
Kevin Chaney
for the SHC Board of Directors
