Strata tip #68: Sinking Fund – Better to have and not need, than to not have and want

While you can’t refund excess sinking fund monies, you can reduce sinking fund levies in future years if you have excess funds.  Conversely, excess sinking fund monies can be used to undertake capital upgrades, either in advance of time or as whole new projects.  A well-managed sinking fund will have a contingency which hopefully you’ll never need to use, but if you do then you’ll be delighted to have it.