How to calculate size of sinking fund

money_man

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Is there any method or best practice to calculate the size a sinking fund should be? My estate is made up of new build semi-d and detached houses with a central green area, street lighting and ~2000m2 of public roadway, drainage etc.. We currently have a very small sinking fund as we are a new OMC. Is there a way to calculate how much we should be adding to it every year? We dont have really costly things like lifts etc. but I imagine long term maintenance could add up quickly.
 
as part of the requirements of the MUD act the mgt co needs to put a 10 year budget in place, that should inform what you need to have in a sinking fund over time and therefore what you need to be adding per unit per year.

what exactly is the OMC responsible for?
 
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