Sinking fund adequacy
What makes a sinking fund adequate, the 10-year plan requirement, and how AppInfo.Name flags shortfalls.
Before you start
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A 10-year capital works plan has been created in StrataBuddy.
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Current sinking fund balance is entered and up to date.
Review the adequacy projection
Open Finance → Capital works. The adequacy chart projects the fund balance against planned expenditure over 10 years. A green band means the fund is projected to cover all planned works.
Understand a shortfall warning
An amber or red indicator means projected expenditure exceeds the fund balance at some point in the 10-year window. StrataOwn shows the first shortfall year and the gap amount.
Address the shortfall
Options include increasing the sinking fund levy contribution, deferring lower-priority capital items, or raising a special levy. Use the Simulate contribution tool to model the effect of a contribution increase before putting it to a vote.
Frequently Asked Questions
Is there a statutory minimum balance?expand_more
Most states do not prescribe a minimum dollar balance, but require the fund to be adequate for likely expenditure. The 10-year plan and adequacy projection are how this obligation is demonstrated.
How does StrataOwn calculate adequacy?expand_more
StrataOwn takes the current fund balance, adds projected annual contributions, and subtracts planned capital items year by year. The result is charted as a running balance; any year the balance goes negative is flagged as a shortfall.
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