DEPRECIATION REPORT ANALYSIS The following is with respect to CRF contributions, which focus more on ownership culture and strata council decision-making (less dependent on the physical attributes of the property). Contribution/Operating Budget ratios (the higher,the better) It is often worth observing what strata corporations are contrib- uting to their CRF. However, these contributions may be high simply because they are bigger properties with more unit owners Factor/Parameter Contribution OB Contribution/OB (%) Type Low-rise $29,512 $308,929 13% Mid-rise $50,846 $472,685 25% High-rise $73,607 $600,851 13% Townhouses $43,456 $243,603 21% Age 0 to 10 years old $46,915 $453,525 13% 11 to 20 years old $43,955 $377,224 15% 21 to 30 years old $41,943 $221,818 19% 30+ years old $37,581 $447,209 14% Units 0 to 25 units $11,443 $87,418 15% 26 to 50 units $22,569 $129,441 19% 51 to 75 units $34,104 $219,720 16% 76 to 100 units $47,289 $361,500 14% 100 to 199 units $64,683 $475,824 13% 200+ units $109,814 $1,521,457 16% The best are mid-rises, those 21 to 30 years old and those with 26 to 50 units. People in these types of properties contribute more to their CRF. These types of properties probably have more manage- able sized renewal projects and older properties probably have had them done already. Newer properties showed lower ratios, as developers may be encouraging lower monthly strata fees than what is actually required, potentially due to market demands. TABLE 9: DATA ON CONTRIBUTIONS AND OPERATING BUDGETS FOR PROPERTIES BASED ON TYPE, AGE AND POPULATION DENSITY. paying more strata fees. Therefore, it is more appropriate to couple this with their operating budget, which is directly related to their strata fee revenues. This normalizes the playing field and allows a more appropriate means of comparing various CRFs’ financial health. It should be noted that the Strata Property Regulation requires 10 per cent of their OB (Operating Budget) to go to the CRF unless it is already at 25 per cent of the OB. TABLE 10: DATA ON CONTRIBUTIONS AND OPERATING BUDGETS FOR 2017 COMPARED TO 2014. Factor/Parameter Contribution/OB (%) - 2014 Contribution/OB (%) - 2017 Type Low-rise 13% 13% Mid-rise 13% 25% High-rise 9% 13% Townhouses 17% 21% Age 0 to 10 years old 9% 13% 11 to 20 years old 12% 15% 21 to 30 years old 17% 19% 30+ years old 11% 14% Units 0 to 25 units 14% 15% 26 to 50 units 16% 19% 51 to 75 units 14% 16% 76 to 100 units 15% 14% 100 to 199 units 11% 13% 200+ units 7% 16% Initial study: Annual CRF Contribution/Operating Budget ratios ranged between 7% and 17% (all types, age & size). Followup study: There has been an increase in in this ratio, which now ranges from 13% to 25%. No average was less than 10% (statutory minimum in B.C.) – further evidence of higher contributions. 14 BCBEC ELEMENTS A BCBEC PUBLICATION