Archived December 16, 2025
Spending bylaw and policies – forum October 23, 2025, 7pm in the Penthouse. The bylaw and policies were approved by the members on December 16, 2025.
These changes to policies and the bylaw have been reviewed and approved by the board and finance committee.
1. Spending Bylaw #90 – this draft bylaw replaces Spending Bylaw #47 which dates from 1979, with a minor change in 1997. The current bylaw #47 does not include advice on bids and quotes.
The main topics of this bylaw are:
Authorization of spending, the operating and capital budgets, interest on savings, budget control, emergency expenses including reporting un-budgeted emergency expenses, disability accommodation expenses, fair, open and objective business practices, signing officers.
2. Definitions
a) Routine or non-discretionary expenses
Expenses such as property taxes, mortgage payments, utilities and existing salaries (once a staff position and salary have been approved)
b) Spending threshold calculation
In order to avoid fixed spending thresholds in the by-law any limits are indicated as a percentage of TMHC (Total Market Housing Charges – a line item in the operating budget). The percentages should be rounded to the nearest $1,000 and the values used (1% and 2.5% TMHC) should be published with the operating budget. As an example in 2025 1% of the TMHC was $2,752,236 X 0.01
= $27, 533.36 or $28,000 rounded to nearest $1,000. 2.5% was $69,000.
c) Total Market Housing Charges (TMHC)
Equivalent to rent in a traditional rental building, TMHC is the monthly charges members pay to cover the co-op’s operating costs, including the mortgage, property taxes, and maintenance, and funding reserves. Also called “market rent”
The operating budget section covers staff and management costs and contracts. The section on business practices includes bids and quotes: rules for all spending except routine or non-discretionary, and choosing a quote or bid.
Authorization of spending includes “No personal benefit: about conflict of interest”
Operating budget includes “Staffing and Management” – The Board is responsible for decisions about staffing and management. A management contract will not be renewed without a review.
Reporting to members – Reporting to members includes:
The board will provide the members with a summary of the operating budget with actual expenditures and income based on the six month financial report. Significant un-budgeted emergency expenses (greater than 1% of the TMHC) must be reported by the board to the members.
Emergency expenses includes: “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).
Reporting un-budgeted emergency expenses: must be reported by Management to the Board. Significant un-budgeted emergency expenses (greater than 1% of the TMHC [about $28,000 in 2025) must be reported by the board to the members.
Contracts
The Co-op must review the prices of regular suppliers and contractors at least every second year to see if their prices remain competitive. Where the Co-op has a contract, the Co-op must review prices at the end of the contract. There will be no automatic renewal of any contract or agreement.
Management spending
Co-op staff can spend up to 0.5% of TMHC without consulting the Board of Directors. Amounts greater than 0.5% must be approved by the Board of Directors.
Bids and quotes: rules for all spending except routine or non-discretionary
- Expenditures under 1% of total market housing charges budget (TMHC)
- Expenditures between 1% and below 2.5% of the TMHC
- Expenses of 2.5% of the TMHC or more.
Choosing a quote or bid: must consider
• whether the quote or bid meets the requirements set out in the detailed scope of work
• the quality of goods and services to be provided
• the experience of the service provider or contractor
• the timeframe of the work
• the extent to which the product or service is “environmentally friendly”, and
• the cost of the work.
The board or other person authorized by the board does not have to choose the lowest quote or bid.They may choose another for reasons such as quality, experience and timing. If they do not choose the lowest bid, they must document the reasons for their choice in the open minutes of the board meeting.
Draft Spending Bylaw #90
2. Investment Policy – the Organizational Bylaw in Article 24.3 provides the co-op with high-level guidelines on investing. The co-op must follow any Government requirements and the co-op’s operating agreement. Where government requirements do not apply, the policy gives the board direction on how the co-op can invest co-op money.
The Co-op can invest the replacement reserve, the voluntary replacement reserve, accessibility reserve and capital improvement reserve, Member Shares and Member Deposits and other funds that are surplus to the Co-op’s daily needs.
The Co-op wants to invest this money in order to maintain and preserve its members’ homes and earn income to meet other Co-op needs.
The policy covers investment goals, external advice, asset mix, permitted investments, prohibited investments, socially responsible investments, reserve funds, administration.
Investment policy DRAFT
3. Finance Committee Policy – this new document describes the role and functioning of the Finance Committee. It reflects the outline documented in the Organizational Bylaw such as committee makeup and our current practices. See the link to the policy below.
The key point: The Finance Committee with the Treasurer discusses, reviews and helps develop recommendations on financial matters. The Treasurer takes recommendations to the Board for discussion. The Board of Directors makes final decisions. The policy also talks about committee operation and confidentiality and conflict of interest.
Finance Committee Policy
