What Condo Boards Must Decide Every Year in Ontario
(From a Condominium Management Expert)
Practical Guidance for Smarter Governance in London & Sarnia, Ontario
If you sit on a condo board in Ontario, your year is shaped by a set of recurring decisions, many of them tied to firm deadlines under the Condominium Act, 1998. When the calendar fills up, it is easy to lose track of which approvals are mandatory, when they are due, and who is supposed to prepare them.
Knowing exactly what decisions a condo board has to make every year is the difference between governing with confidence and reacting to whatever lands on your desk. This guide maps the annual decision calendar for Ontario condo corporations, from the operating budget to the reserve fund study, so your board can stay ahead of every obligation and judge whether your current management company is keeping pace.
What Decisions Does a Condo Board Have to Make Every Year in Ontario?
Every year, an Ontario condo board must approve an operating budget, hold an annual general meeting, present audited financial statements, appoint an auditor, file an annual return with the Condominium Authority of Ontario, and keep the reserve fund properly funded. These are not optional housekeeping items. Most carry deadlines set by the Condominium Act, 1998, and missing them creates real exposure for both the corporation and its individual directors.
It helps to think of the year as a fixed cycle rather than a series of surprises. The same core approvals come around every fiscal year, usually in the same order, anchored to your corporation's year end. The recurring annual decisions most boards are responsible for include:
• Approving the annual operating budget and setting condo fees for the year
• Holding the annual general meeting (AGM) within the legal deadline
• Receiving the audited financial statements and appointing the auditor
• Reviewing reserve fund contributions and adopting or maintaining a funding plan
• Filing the annual return and paying assessment fees to the Condominium Authority of Ontario (CAO)
• Issuing Periodic Information Certificates to owners twice during the fiscal year
• Renewing insurance, key service contracts, and confirming an appraisal is current
These responsibilities sit on top of the day to day work of running the building. For a broader look at how the board fits into the corporation overall, read our guide: What Does a Condo Board Do in Ontario? A capable condo corp management partner should hand your board a calendar of these dates well in advance, not scramble to meet them.
Approving the Annual Operating Budget and Setting Condo Fees
The board's first major decision each year is approving an operating budget that funds the corporation's day to day costs and sets each owner's condo fees. This budget should be built and approved before the new fiscal year begins, then distributed to owners so they know what they will pay. Rubber stamping last year's numbers with an across the board increase is one of the clearest signs a board is flying blind.
A well prepared budget reflects real quotes, contract renewals, utility trends, and a sensible contingency, with reserve contributions carried as a distinct line. This is also where good management shows itself. Your manager should present a draft budget with a line by line explanation and a comparison against the prior year's actuals, not a single bottom line figure you are asked to approve on the spot. If your current company cannot explain why a number moved, that is a gap worth addressing.
For a deeper walkthrough of building and defending the numbers, see our guide: Condo Operating Budget Ontario: A Board's Guide Boards working with Sapphire for condo management in London Ontario typically review a draft budget weeks before the deadline, with time to ask questions.
Holding the AGM, Appointing the Auditor, and Approving the Financials
Your board must hold an annual general meeting within six months of the end of the corporation's fiscal year, and at that meeting owners receive the audited financial statements and appoint the auditor for the coming year. If your year end is December 31, the AGM has to happen by June 30 of the following year.
This is not legal advice, but generally speaking under Ontario law, the meeting requires proper notice to owners, a preliminary notice beforehand, and a quorum to proceed. The audited statements and the auditor's report are central to the meeting, which is why the audit needs to be completed in time. Owners holding at least 80 percent of the units can vote to waive the audit and use a review engagement instead, though most corporations keep the full audit for the protection it provides.
Preparation is where AGMs are won or lost, and a strong manager handles the notices, packages, and proxies on a set schedule. Our step by step guide can help: How to Prepare for Your Annual General Meeting At Sapphire, we find that boards who plan the AGM backward from the legal deadline avoid the last minute scramble that frustrates owners.
Reserve Fund Decisions: The Study, Contributions, and the Funding Plan
At least every three years the board must commission a reserve fund study, and after each study it must adopt a funding plan that sets how much the corporation will contribute going forward. In the years between studies, the board still decides annually how much to put into the reserve fund to keep it adequate for major repairs and replacements.
Under section 94 of the Condominium Act, 1998, the study looks 30 years ahead, projecting when the roof, elevators, parking structure, and other major components will need work and what that will cost. The board then implements a plan to make sure the fund can cover it. Underfunding now usually means a special assessment later, which is exactly the outcome owners remember at election time.
Proactive condominium management in Sarnia Ontario and London means tracking the three year study cycle, flagging a thinning reserve early, and giving the board options before the shortfall becomes urgent. If your reserve contributions have not been revisited since the last study, or you are not sure whether your fund is on track, that is a conversation worth having now rather than after a major component fails.
Annual Compliance Filings: CAO Returns, Certificates, and CMRAO Oversight
Each year the board is responsible for filing an annual return with the Condominium Authority of Ontario between January 1 and March 31, paying CAO assessment fees, and issuing Periodic Information Certificates to owners twice per fiscal year. The Periodic Information Certificate goes out within 60 days of the end of the first and third fiscal quarters and updates owners on the board, finances, insurance, reserve fund, and any legal proceedings.
These filings are easy to overlook and costly to miss. A return filed after the March 31 deadline carries a $200 late fee, and unpaid assessment fees add further penalties. Your condo manager must also be licensed by the CMRAO, the provincial regulator for the profession, which sets standards your board can hold any company to. A reliable management partner files these returns, issues the certificates on schedule, and keeps the records audit ready without the board having to chase them.
If you are not certain your budget and reserve contributions add up, or you simply want a second set of eyes on the numbers before the AGM, you can get a second opinion on your financial statements on us. Sapphire offers a free, no obligation financial review here: sapphirecondomgmt.ca/financial-review-on-us.
Frequently Asked Questions
Q: What decisions does a condo board have to make every year in Ontario?
A: Each year an Ontario condo board must approve an operating budget and set condo fees, hold an annual general meeting, present audited financial statements and appoint an auditor, decide reserve fund contributions, and file an annual return with the Condominium Authority of Ontario. Most of these carry deadlines under the Condominium Act, 1998.
Q: How soon after the fiscal year end must an Ontario condo hold its AGM?
A: This is not legal advice, but generally speaking under Ontario law, a condo corporation must hold its annual general meeting within six months of the end of its fiscal year. If the year ends December 31, the AGM must occur by June 30. The audited financial statements and auditor's report are presented at that meeting.
Q: How often does an Ontario condo board need a reserve fund study?
A: A reserve fund study is required at least every three years under section 94 of the Condominium Act, 1998. After each study the board must adopt a funding plan, and in the years between it decides annual contributions to keep the fund adequate for future major repairs. Strong condo management in London Ontario tracks this cycle for the board.
Related Reading
→ What Does a Condo Board Do in Ontario?