The management committee of the corporation shall prepare a management budget every year listing the estimate for each expenditure item and the amount receivable including monthly management fees and other revenue.
When preparing the budget, the management committee shall refer to the expenditure of previous years. Other information, such as the proposed items to be added and deleted in the coming year, and various fee adjustments arising from estimated inflation, shall also be included. Legislation provides that an increase of over 50% of the management fee shall be determined by a resolution of the general meeting of the corporation.
The Budget mainly covers the following items -
monthly management fees and other revenue;
salary, long service payment, mandatory provident fund and labour insurance for the management staff,
expenses for maintenance of common areas and facilities;
expenses for cleansing services and cleansing materials;
water and electricity charges for public use, rates, telephone charges, stationery and miscellaneous expenses;
fire insurance and third party risks insurance; and
contingency fund (to meet unexpected or emergency expenses such as the burst of water pipes, sudden blackout, etc.).