Saving owners $18,000 at the next AGM

Indicative performance data

A 64-lot scheme one year after its forecast · Annual Refresh (Sinking Fund or LTFP)

Saving owners $18,000 at the next AGM

Last year's forecast had set a 5% contribution increase. The committee wanted to know if that was still needed after the painting was completed.

$18,000Lower contributions next year

5% to 3%Increase needed

$2,000Fee for the work

Contribution increase needed next year

Last year's forecast5%

Refreshed with actuals3%

Down 2 points

Where the gap was

The repaint came in 18% under the forecast cost and interest earned was higher than assumed, so owners pay $18,000 less next year.

Insight

Rolling the model forward with actuals showed the repaint came in 18% under the forecast cost, and interest earned was higher than assumed.

Advice

Reduce next year's increase from 5% to 3%, with the change log showing exactly why.

Opportunity

About $18,000 less in contributions next year, with the long-term position unchanged.

Results

The refreshed forecast and change log went to the AGM, and the lower increase was adopted.

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Saving owners $18,000 at the next AGM