​The Housing Charges
Monthly housing, parking charges and bike charges can be set only by a majority vote of the Members at a general meeting. Members do this annually or more often as needed. A budget must be presented to the Members when they are asked to consider an increase in housing charges. Section 4.2 of this by-law shows how the Co-op must present a budget to its Members. Existing charges continue until the Members approve a change. The Members may approve changes that are different from those proposed in the budget.
 
The Budget
a) Each year, the Board, in consultation with the Finance Committee, will prepare an operating budget for the next fiscal year. The Members will consider the proposed budget at a general Members’ meeting during which the budget is presented. Article 4 of the Organizational By-law outlines how notice must be given for this meeting. The operating budget must contain:  

• The total expected cost of operating the Co-op

• A breakdown of the total expected costs in detailed categories

• The total costs incurred in operating the Co-op from the date of the last budget until the date of the current budget

• The charges proposed for each unit, as well as those changed separately (such as parking spaces) and

• The cost of any special expenses which the Board suggests and the related charges

 
b)The Board must also prepare a capital budget if it is planning capital expenses. The capital budget must contain:  

• The proposed capital expenses

• The proposed source of funds

• The effect of the proposed expenses on the Co-op’s future operating budget

• The effect of the proposed expenses on the Co-op’s capital reserve

• The expected timeline for the capital expenses

c) Approval of an operating budget or capital budget by the Members authorizes the Board to spend money as stated in the budget subject to the Spending By-law if it has one.
 
Notice of Proposed Budget
A general meeting can consider a proposed budget and proposed housing charges only if the notice of the general meeting states that a budget will be considered. The notice must be given as required by the Co-operative Corporations Act and the by-laws.  A copy of the proposed budget must accompany the notice of the general meeting. This must include the full housing charges for each type of unit if changes are proposed. See 4.6 f) of the Organizational By-law for exception.
 
Changes in Housing Charges
 
Subject to section 4.5 of this by-law, any change in housing charges will take effect on the first day of the third month after the Members decide on the change, which is normally the first day of the next fiscal year. Notice of the change in housing charges must be delivered to each unit within a reasonable time after the meeting in which the Members decide on the change.
 
Members can decide by a two-thirds vote at the general meeting on a different date for the new charges to begin, including an earlier date.
 
 
Mid-Year Change of Housing Charges
The Board of Directors may feel that there should be a change in the total operating expenses and/or housing charges during a fiscal year. If so, the Board must call a special Members’ meeting to consider the change.  The Board will prepare a budget or statement showing the reason for the change and submit it to a meeting of the Members. Refer to Section 4.3 of this by-law for the procedure for giving notice for this meeting. Timing and other rules about any change are stated elsewhere in Article 4.