Category: Budgets

Operating and capital budgets; building condition assessments (BCA). Subtopic of Housing charges & finances

Housing charges

Setting Housing Charges, Occupancy and Spending Bylaws

**Sources:** Occupancy Bylaw, Article 3; Occupancy Bylaw, Article 4; Spending Bylaw, Article 4

 3.3 Payment of Housing Charges

 (a) Time of Payment

Housing charges are due each month before noon on the first business day of the month.

 (b) No Cash Payments

Housing charges cannot be paid in cash.

 (c) Pre-authorized Payment

Members may pay housing charges using pre-authorized payment methods. These are generally more convenient for both members and the Co-op. Available methods include:

* pre-authorized payment;

* post-dated cheques; and

* pre-authorized debit, where available.

Payment arrangements may be made through the Co-op office.

 (d) Other Ways to Pay

Members may also pay monthly by debit card at the Co-op office where debit payment is available.

Members who do not use one of the payment methods listed above must pay by monthly cheque or money order delivered to the Co-op office. If the office is closed, payments may be deposited in the Co-op office mailbox.

With approval of the Board, the Co-op may introduce additional or optional payment methods provided they meet the Co-op’s operational requirements and are convenient for members.

3.4 Other Charges

Members are responsible for paying the Co-op for any additional costs, charges or expenses caused by:

* any member of their household; or

* anyone permitted on Co-op property by the member or another household member.

This responsibility applies whether or not a by-law has been violated. Examples include debt collection costs and repair expenses.

See also:  https://www.woodsworthcoop.ca/index.php/tag/schedule-of-charges/

3.5(d) Adjustment of the Last Month’s Housing Charge Deposit and Maintenance Deposit

When the full monthly housing charge changes:

* the Last Month’s Housing Charge Deposit will be adjusted to equal the member’s new monthly housing charge; and

* the Maintenance Deposit will be adjusted to 50% of the Last Month’s Housing Charge Deposit.

Members must pay any increase on the date established by the Board unless the members’ meeting approving the housing charge change establishes another date. Any reduction will be credited against future housing charges.

For members receiving housing charge subsidy (RGI), the Maintenance Deposit will be adjusted annually following the review of household income and composition. Members must pay any increase on the date established by the Board. Any reduction will be credited to future housing charges.

See also: Topping up last month’s housing charge and maintenance deposits

3.6 Housing Charges Are Per Unit

Housing charges and member deposits are payable on a per-unit basis.

Where more than one member occupies a unit, each member is jointly responsible for the full amount of the housing charges and deposits, regardless of any private arrangement between them.

Only one monthly payment shall be made for each unit.

If one or more occupants move out, the remaining members continue to be responsible for all housing charges applicable to the unit.

 4.1 The Members Set the Full Monthly Housing Charges

The full monthly housing charges may be established or changed only by a majority vote of the members at a general meeting.

Members approve housing charges annually, or more frequently if required.

Whenever housing charges are proposed to change, the Board must present a budget for member approval. Existing housing charges remain in effect until new charges are approved.

Members may approve housing charges that differ from those proposed in the budget.

4.2 Annual Budgets

 (a) Operating Budget (Spending Bylaw, Article 4)

Each year the Board of Directors shall submit an operating budget for the next fiscal year for approval by the members at a general meeting.

The operating budget must include:

* the total expected cost of operating the Co-op;

* a detailed breakdown of operating costs;

* the proposed full monthly housing charges for each unit or unit type; and

* proposed charges for separately billed services, such as parking.

Approval of the operating budget authorizes the Board to spend operating funds during the fiscal year up to the total amount approved by the members, subject to the Spending Bylaw.

Unless the members decide otherwise when approving the budget, the Board may use a surplus in one operating expense category to offset a deficit in another category without exceeding the total approved operating budget.

Members also approve a schedule of Total Market Housing Charges (TMHC) for each unit type and size. Members receiving housing charge subsidy (RGI) pay only the subsidized amount determined under the Co-op’s subsidy policies.

 (b) Capital Budget

If capital expenditures are planned, the Board shall prepare a capital budget for member approval. Whenever practical, it shall be presented at the same meeting as the operating budget.

The capital budget must include:

* proposed capital expenditures;

* proposed funding sources;

* the impact on the capital reserve;

* the impact on future operating budgets; and

* the estimated timeline for the expenditures.

 (c) Approval by Members

Approval of the operating budget or capital budget authorizes the Board to spend funds as approved, subject to the Spending Bylaw.

Members may also decide, by resolution at a general meeting, which items are included in or excluded from total housing charges. Any such motion must clearly state the approved change.

4.3 Notice of Proposed Budget

A proposed budget and proposed housing charges may be considered only if the notice of the general meeting states that a budget will be considered.

Notice shall be given in accordance with the Co-operative Corporations Act and the Co-op’s by-laws.

A copy of the proposed budget, including any proposed housing charge schedule by unit type, must be delivered to every unit at least five (5) days before the budget meeting.

 4.4 Changes in Housing Charges

 (a) Beginning of Changed Housing Charges

Any approved change to the full monthly housing charges takes effect on the first day of the third month following member approval.

The members may, by a two-thirds vote at a general meeting, approve a different effective date, including an earlier date.

 (b) Notice of Change

Notice of an approved change in full housing charges must be delivered to every unit within a reasonable time following the meeting, subject to any applicable legislative requirements.

4.5 Mid-year Change in Housing Charges

Occupancy Bylaw:

If the Board determines that changes to the operating budget and/or housing charges are necessary during a fiscal year, it shall prepare a revised budget or explanatory statement setting out the reasons for the proposed change and submit it to the members for approval at a general meeting.

Notice of the meeting shall be given in accordance with Section 4.3.

The timing and procedures governing any mid-year budget or housing charge change shall follow Sections 4.1 through 4.4 of this By-law.

Consistent with the Spending Bylaw, the Board shall not increase total operating expenses or housing charges during a fiscal year without approval of the members at a duly called meeting.

 

Annual budgets, housing charges and reserves

This explainer is based on the Occupancy, Organizational and Spending Bylaws and the Investment Policy.

Members’ authority and role

Election & approvals: Members elect directors who prepare operating and capital budgets; members then vote to approve or amend those budgets.

Statutory rights: Members have the right to vote on housing charges and other major commitments specified in the by‑laws.

Scope of amendment: Members may amend any by‑law or budget presented at a members’ meeting, provided the decision falls within members’ powers under the by‑laws (Organizational Bylaw, Articles 4.2 / 6.1 and Article 24.1(a)).

Board responsibilities

Financial oversight: The board oversees the co‑op’s financial affairs, presents budgets to members, and makes financial decisions within approved budgets and applicable by‑laws.

Long‑term planning: The board must ensure long‑term financial planning and maintain a current building condition assessment, reserve fund study, and asset management plan (Organizational Bylaw, Article 9.1(b)).

Committees: Co‑op committees may submit requests for operating budget items; such requests are subject to by‑laws and board approval (Organizational Bylaw, Article 17.1(d)).

Budgets:
(a) Operating budget — Requirements

Each year the board prepares and presents an operating budget for the next fiscal year for member approval. It must include:

  • Total expected operating cost.
  • Detailed breakdown by expense category.
  • Full monthly housing charge proposed for each unit type.
  • Charges for separately billed services (e.g., parking).
    (Occupancy Bylaw, Article 4 Setting Housing Charges)

The operating budget will include:

  • The amount of money available for the Emergency Housing Charge (EHC) Assistance Fund the financial year must be approved as part of the operating budget.  (Article 7, EHC)
(b) Capital budget — Requirements

If capital projects are planned, the board prepares a capital budget for member approval (ideally presented with the operating budget). It must include:

  • Proposed capital expenses – the list of capital items to be replaced or repaired
  • The estimated cost
  • Proposed funding sources.
  • Impact on the capital reserve.
  • Impact on future operating and capital budgets.
  • Estimated timeline for the projects.

    The board will take the building condition assessment (BCA) recommendations into consideration in preparing the capital budget. (Spending Bylaw, Article 5 (c).

Notice and delivery requirements

Proposed by‑laws or budgets must be referenced in the meeting notice or agenda.

A copy of the proposed budgets must be delivered to every member at least five days before the meeting (Organizational Bylaw, Article 3.3(e)).
Note: Notice of a members’ meeting has to be given at least ten days before the date of the meeting.

A general meeting may only consider a proposed budget or housing charges if the meeting notice states a budget will be considered and notice is given as required by the Co‑operative Corporations Act and by‑laws.

Changes in housing charges

Effective date: Changes to full monthly housing charges begin on the first day of the third month after members approve them, unless a two‑thirds vote at the meeting sets a different date (including earlier).

Notice of change: Deliver notice of the approved change to each unit within a reasonable time after the meeting (or within any government‑required timeframe).

Mid‑year changes

If the board proposes mid‑year changes to the budget or housing charges, it must prepare a statement explaining the reasons and present it at a members’ meeting. Notice follows the rules above and timing/other rules follow sections on budgets and charge changes.

Process – summary
  • Board drafts operating and capital budgets (incorporating committee requests as applicable) with the help of staff and the Finance Committee.
  • Board ensures required long‑term studies and plans are current.
  • Meeting notice states budgets will be considered and includes proposals/agenda.
  • Deliver proposed budgets/by‑laws to members at least five days before meeting.
  • Members consider, may amend, then vote to approve or reject budgets and housing charges.
  • Approved budgets authorize spending per the Spending By‑law; approved housing charge changes take effect per the timing rules above.
Emergency expenses

Spending Bylaw Article 9.1. What are emergency expenses
Emergency expenses are those expenses the Co-op must make immediately because a delay will:
• risk property damage, or
• endanger the safety of persons or property, or
• disrupt essential services to members (for example, light and power, heat, hot water, refrigeration, cooking)

Confidentiality

Confidential staff information (e.g., individual salaries, staff contracts, management contracts) remains confidential; aggregated salary or fee information may be presented in general terms in the budget (Organizational Bylaw, Article 20.2).

Member approval and authority to spend

Member approval is required for housing charges, operating and capital budgets, and major commitments noted in the by‑laws.

See Organizational Bylaw, Article 24.1
(a)  When member approval is needed
(b) When member approval is not needed
c) Optional member approval  – The board can request approval from the members for any action that is not within the definition of
Major Commitment. If the board requests approval, it must follow the decision of the members’ meeting.

Approval of an operating or capital budget authorizes the board to spend as stated in the budget, subject to the Spending By‑law. Article 3. Authorization of spending.

Reserves and investment earnings

The Board must maintain a Capital Replacement Plan or Asset Management Plan, updated at least every five years, to guide investment and spending decisions.

Capital replacement reserves, other reserves, and Co‑op funds may be invested together.

Reserves may be a budget item to meet long-term planning needs.
Additionally, the Spending Bylaw earmarks earnings on reserves to be added back to the reserves.

The Spending Bylaw says that ninety five (95) percent of any income earned on the co-op’s cash and investments shall be allocated to replacement reserves. The other five percent shall be allocated to operations. This ratio roughly represents the ratio of our combined replacement reserves to accumulated surplus.

The Board can override this ratio but must report this to members as part of the budget process (Spending Bylaw, Article 7)

Where to find more information

See other articles in  Budgets in Finances: budgets, housing charges & reports

Reporting on spending to members, see Financial Oversight and Reporting to Members

Bylaws and policies

Occupancy Bylaw –  Setting Housing Charges (Article 4)

Spending Bylaw – Operational, capital budgets, spending, budget control

Investment Policy– Reserve funds (Article 9)

Organizational Bylaw– Holding Members’ Meetings, Duties of the Board, Financial (Article 24)

Articles about General Members’ Meetings.

Budgets – terminology

An article from the Board of Directors, The Weekly, July 13, 2025

The board thought it might be helpful to review what our budgets consist of, and some financ-y terms that are used, for those that may not already be familiar or for those that want a review.

The co-op earns money mainly from our housing charges. The revenue is allocated to two broad categories.

Operating budget : This is what we use for our day-to-day spending. This includes things like our mortgage, our utilities, cable, maintenance, our office, our committees and more.

Capital budget: This is what we use for our big projects and to keep our buildings and units up-to-date, safe and sound.

Here are some terms you may have heard:

Reserve: A reserve is exactly how it sounds. Money that we are putting aside or “reserving”. for later use. There is a reserve for both Operating and Capital expenses. We need to keep our reserves healthy so we can pay for everything we need to.

Budget: A budget is an amount that the co-op PLANS to spend on something. We have a budget for every operating and capital expense. Budgets are sometimes done based on a fact-based assumption on how much something will cost. The budgets also help us to know if we are earning enough money to cover our expenses and if we have enough to cover future expenses.

Actual: An actual is the amount that was actually spent on something. So, the co-op may plan to spend a certain amount, but depending on the needs, timing and actual cost, it may come over or under the budgeted amount. Obviously as a co-op we want to stay on budget, but there will always be variances.

To Date: This means the amount spent so far. This helps us know whether we are nearing our budget and if we need to allocate more or intervene.

Contingency: Usually with big Capital expenses, a contingency amount is built into the budget, to cover anything unforeseen.

Fiscal Year: Fiscal year refers to the annual time -period an organization is using for its financial reporting. Fiscal years don’t always coincide with the beginning of a calendar year. In our co-op’s case the Fiscal Year begins August 1, which is why we effect housing charge changes at that time.

Audit: You may have noticed we have an audit once a year done by an outside firm (to ensure objectivity). At a high level, the audit is done to make sure the finances of the co-op are healthy, and to ensure that our accounting practices are correct and our accounts are whole. The audit is a protective measure for the coop and provides another set of eyes on our finances.

Thanks for Reading.
Co-operatively,
The Board of Directors