It Has Been a Snowy Winter in Ottawa
Most snow removal contracts in Ottawa provide for a fixed fee covering snow removal (and related work) up to a total snowfall of 254 centimeters (100 inches) for the season. [We know that this doesn’t generally apply outside of Ottawa and so it might not be so interesting for our other readers!]
Most snow removal contracts in Ottawa also say that freezing rain (or simply rain) is deemed to equate to a certain amount of snowfall. The contracts will also typically say that the snowfall data is the data found on the Environment Canada Weather Website – www.weather.gc.ca.
In Ottawa, it’s been a snowy winter. Ottawa has exceeded the 254 centimeters and that does not include March! [The precise amount of the overage will depend upon the assumptions – particularly the assumptions for rain or freezing rain – in the contract.]
For condominium corporations in Ottawa, this may well mean a budget deficit (at least for the cost of snow removal). Therefore, condominium corporations in Ottawa may need to be considering the following:
- How can we plan to cover the budget deficit? Is there an accumulated surplus that can be used to cover the deficit? Will any payments have to be delayed (in order to carry the deficit)?
- The anticipated budget deficit will of course need to be mentioned in Paragraph 9 of the status certificates.
- ALSO: Will it be necessary to increase common expenses (for instance in the next fiscal year) or perhaps even levy a special assessment in order to recoup the deficit? If so, this might also need to be mentioned in Paragraph 12 of the status certificates.
It’s a fabulous winter for skiers in Ottawa.
But it’s not so great for budget planners!
As always, stay tuned to Condo Law News to keep up to date on the latest developments in condominium law!