2016 Service Charge budget
The 2016 budget shows a small increase over last year. Possibly due to the deteriating relationship with Trinity, the RMC were not invited to discuss the budget before it was notified. Consequently we are reacting to the notification rather than proactively contributing to it. We are hopeful that we will see improvements in that relationship now that we have a new Trinity Estate Manager in place.
Three items in the budget have contributed significantly to the increase. These are
- Buildings insurance (33% increase). The property valuation has revalued Lindsay Court at £6m. It is the Freeholder who has the responsibility to insure the building and so neither we nor Trinity has any control. It is likely the Freeholder has a portfolio of properties covered by one policy, which is never the most cost effective option. We can get alternative quotes but the Freeholder is under no obligation to review. We are advised in any case, that the quote we are paying is competitive.
- Water supply (24% increase). On the basis of this assessment I have obtained meter reading from the last two years. These tend to suggest that consumption has increased quite alarmingly. The rate at which the building is using water has increased by 82% from the rate we were using it two years ago. The RMC will contact the supplier with a view to getting the meter accuracy checked and if necessary, investigating whether we have a leak after the meter. If the increased rate of consumption is the result of the occupation/use profile of the building, this is something we may have to live with. I am receiving all meter readings now so we will be aware of changes to the rate of use.
- General Maintenance (12% increase). General Maintenance has always been a bit of a bottomless pit, catch-all facility. Overspends elsewhere have tended to get moved into General Maintenance at year-end. I have always argued that doing so negates the point of having a budget. Historically, Trinity had agreed to provide reports of GM expenses at quarterly intervals but so far has failed to provide these. I am hopeful that the new Estate Manager will comply with the request. The budget increase is entirely the result of introducing separate budget lines for Communal TV/Satellite maintenance and Drainage maintenance and then leaving the GM line as £6000, as last year. I am doubtful we will reach a spend of £6K this year; the budgeted figure is based on a more expensive year in 2015, with moss clearing of the roof being a major factor.
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