Water Usage

The EC was recently asked to determine whether it might be possible to have our water meters read on an individual Lot basis in order to ensure we have a fair and equitable user pays system. The outcome of our deliberations was that we believe the present system, while nor perfect, should stay as is. This is the background to our reasoning. To bring about any change to the existing system firstly we have to add a special by law to allow this to be done. There would be a small cost involved in doing so and the By Law would need to be passed at an EGM or an AGM. The Strata Manager would then have to open a separate trust account for this system, as the Strata Manager will be the one paying Council for each water account.

The new procedure would mean arrangements would have to be made with Central Coast Council to send all water accounts to our Strata Manager. The Strata Manager then crosses out the actual usage charge on each reading. Other fixed charges such as sewer service, water service and low income rebates remain as is. The revised lower amount is then written above the Council entry. The Strata Manager then arranges for all individual meters to be read and there would be an additional charge for this sevice. The actual water usage for each owner is then calculated. Owners corporation (common property) water usage is then calculated by subtracting the total of the individual meter readings from the Council Meter usage reading. This figure is then divided by the number of units either equally or by the unit entitlement method (in the same way our levies are calculated). Common property water usage is pool and car washing, plus any garden watering using water from the council mains.

The actual water used plus the calculated amount used for common property are then added together. The total used by the unit is then multiplied by the cost per unit (usually kl). This amount is then invoiced separately to each owner together with their Council account. The owner then pays the revised Council water account plus the invoiced water account from the Strata Manager into the special trust account. The Strata Manager then sends separate amounts to Council for the  59 owners. The calculations can be done with a fairly simple spread-sheet and matrix but there are other problems to consider. If an owner doesn’t pay their account or is late paying it, which amount is outstanding? Is it the amount Council has calculated or the lower (or higher) amount calculated by the Strata Manager? Furthermore the cost of paying for 59 meters to be read would be considerable and co-ordinating the meter reading dates would be difficult if not impossible as Council do not read their meters on any specific day.

In conclusion, while the present system is not fair to all, the process needed to change it presents its own problems and expenses.

November 2016