I think you are confusing annual operating budgets (waste disposal etc) with reserve funds (major repairs and replacements). Under the Condominium Act the developer is not expected to have a reserve fund study done; the first study is only done once a Corrporation is formed. The Developer certainly prepares an annual budget but, in fairness, it is hard to be sure of many costs (e.g. utilities) until there has been a year of activity. However, I understand that operating costs in the second year tend to increase significantly, presumably because the developer underestimates. In Ontario Reserve Fund Studies must be done AT LEAST every 3-years and a new Corporation should have one done as soon as possible after its creation. RF studies cost money so I doubt many Corporations do one every year - they look 30-years into the future. The Act actually says that until a RF Study is done you must contribute an amount equal to at least 10% of the operating costs. 10% is very low; most established condo corps contribute between 20-40% so it is not surprising fees rise after the first Study is done.