25Matters that must be dealt with in proposed annual budget—the Act, s 112(3)(a)

25 Matters that must be dealt with in proposed annual budget—the Act, s 112(3)(a)

25 Matters that must be dealt with in proposed annual budget—the Act, s 112(3)(a)

(1) The following matters must be dealt with in the proposed annual budget for a retirement village—

(a) total proposed expenditure,

(b) the expected surplus or deficit,

(c) recurrent charges and the method used to calculate the charges,

(d) expected increases in recurrent charges, including—

(i) increases calculated in line with a fixed formula, and

(ii) increases arising under section 34,

(e) the total expected income from recurrent charges,

(f) the effect of an expected surplus or deficit on the village’s finances,

(g) for each category of expenditure—

(i) the proposed expenditure, and

(ii) the proposed expenditure indicated in the approved annual budget for the current year, and

(iii) the anticipated actual expenditure for the current year,

(h) if an item of proposed or actual expenditure is an apportionment relating to more than one retirement village or business—the method of apportionment,

(i) if one or more residents of the village are paying significantly higher recurrent charges than other residents, including because they receive optional services—the method of apportionment of the charges.

(2) To avoid doubt, an operator must not, for subsection (1)(g), create a category of expenditure by grouping unrelated categories of expenditure together.

(3) A proposed annual budget that includes costs associated with the operator’s head office, or other management and administration costs, must itemise—

(a) the goods and services to which the costs relate, and

(b) the approximate cost of each good or service, and

(c) if the operator operates more than one retirement village or business—the method used to apportion the costs between the villages or businesses.