The current fiscal year, which ends on November 30, 2015, has seen tremendous pressure on expenses, the most significant being:

Transcription

1 October 16, 2015 To: Owner(s) Toronto Standard Condominium Corp. # Dundas Street West Etobicoke, ON M9B 6M1 RE: Operating Budget December 1, 2015 to November 30, 2016 Dear Owner(s): The Board of Directors of T.S.C.C. # 1723, with the assistance of our management company, DEL Property Management Inc. has prepared and adopted an operating budget for the fiscal year 2015/2016 which begins effective December 1, Our goal is to ensure the prudent use of the Corporation s funds to maintain and enhance the property, to continue to develop a healthy reserve fund, as required by the Condominium Act, 1998, and to maintain the long term value of the property for owners. The approved budget incorporates expenses specific to Essex II along with the proportionate share of the recreation costs and shared roadway/walkway costs which are shared with Essex I, Nuvo 1 & 2 and Parc Nuvo. This budget also includes the required costs to meet the needs of the updated Reserve Fund Study as specified by The Condominium Act, which you will find enclosed. The study calls for an increase to be added to the Reserve Fund of 5.52% in each of the next three years, and ensures that there are sufficient funds to meet the needs of the Corporation. The current fiscal year, which ends on November 30, 2015, has seen tremendous pressure on expenses, the most significant being: - Insurance Deductibles paid $32,000 - Increased gas consumption due to cold winter $14,000 - Repairs & maintenance related to three floods $11,000 Due to these non-anticipated expenses, we decided to utilize the $30,700 balance in our contingency fund at the end of November 2014 to partially offset this fiscal year s forecasted deficit of $71,655. Accordingly, this has led to the need for a 4.961% increase in the maintenance fees equating to a total increase in common elements assessment income of $108,445 for the fiscal year The following initiatives have been undertaken in the upcoming fiscal year, so as to minimize the increase in maintenance fees for unit owners:

2 a. Service Contracts: The Board negotiated a reduction in the current contract with DEL Property Management in the amount of $16,146 along with a comprehensive update to the services provided, for a 13.5% annual reduction over the previous contract., The new contract is valid for a five year term and includes a 60-day termination clause by either party, with no penalties due for early termination. The decision was made to reduce the bi-annual window cleaning to an annual spring window cleaning for the upcoming year, resulting in a cost saving of $7200. b. Repairs and Maintenance fees have gone up by 0.46% or $10,100 as a result of aging building components and increased service calls. c. Utilities A 1.19% increase has been projected, in keeping with typical rate increases by the City. d. Administration Fees Include a 25% projected increase in insurance premiums as a result of the Kitec incidents. We acknowledge that this has been a difficult year for Essex II owners, particularly for those whose units were damaged by the Kitec-related flooding. Our focus now is to have all of the piping in Essex 2 replaced, and have the same cleared from our status certificates. In an effort to mitigate our losses both at the Corporation level as well as at the unit owner level, we are in the process of contracting with a lawyer, to work towards recovering the expenses incurred due to the Kitec piping incidents. We have also initiated a demand on the developer for recovery of expenses caused by the installation of the undersized main hot water recirculation lines and we will continue to keep you informed on the developments for both of these actions. Currently, most owners take advantage of the Electronic Funds Transfer Program and the new monthly amount will automatically take effect December 1, We encourage the few owners who are still on the manual system to sign up for automatic payments. Please complete the enclosed form, attach a VOID cheque and return both to the Management office by November 11, If you are currently on EFT there is no need to fill out a new form. If you still wish to use cheques, please provide the Management office with twelve (12) post-dated cheques, dated the first (1 st ) day of each month from December 1, 2015 up to and including November 30, Please make your cheques payable to TSCC # 1723 and submit them to the Management office not later than November 11, 2015.

3 T.S.C.C. # /2016 MONTHLY CEA FEES SUITE FEE SUITE FEE SUITE FEE SUITE FEE SUITE FEE SUITE FEE SUITE FEE PH PH PH PH PH PH PH PH , , , , , ,

4

5

6

7

8

9 ESSEX SHARED ROADWAY / WALKWAY O P E R A T I N G B U D G E T January 1, 2016 to December 31, 2016 CURRENT APPROVED BUDGET PROJECTED BUDGET BUDGET CHANGE Maintenance & Service Contracts 18,062 18,070 18,068 (2) Repairs & Maintenance 3,822 4,800 4,800 - Utilities 2,500 2,500 2,500 - Special Projects - - 1,700 1,700 Administration 8,430 14,280 12,847 (1,433) Total Operating Expense : 32,814 39,650 39, Less: Sundry Income (50) NET OPERATING EXPENSE: 32,769 39,550 39, Contribution to Reserve 24,392 24,392 24, TOTAL FUNDS REQUIRED 57,161 63,942 64, T.S.C.C. NO ,591 9,591 9, % T.S.C.C. NO ,872 12,872 13, % T.S.C.C. NO ,895 13,895 14, % T.S.C.C. NO ,690 13,690 13, % T.S.C.C. NO ,895 13,895 14, % COMMON ELEMENT ASSESSMENT: 63,942 63,941 64, %

10 ESSEX SHARED ROADWAY / WALKWAY OPERATING BUDGET - January 1,2016 to December 31, 2016 CURRENT APPROVED BUDGET PROJECTED BUDGET BUDGET CHANGE Service Contracts : Grounds Maintenance 13,280 13,280 13,280 - Management Fees 4,782 4,790 4,788 (2) Total : 18,062 18,070 18,068 (2) Repairs & Maintenance : Catch Basins 1,187 2,200 2,200 - Electrical General Landscaping Snow Clearing Signs General Repairs and Hardware Total : 3,822 4,800 4,800 - Utilities : Hydro 2,500 2,500 2,500 - Water Total : 2,500 2,500 2,500 - Administration : Office Expense Meeting Costs (200) Insurance 6,093 6,645 7, Audit Fees 2,135 2,135 2,135 - Legal Fees 66 5,000 3,000 (2,000) Total : 8,430 14,280 12,847 (1,433)

11 October 16, 2015 To: All Owners of TSCC Dundas Street West Etobicoke, ON M9B 6M1 RE: RESERVE FUND STUDY UPDATE Dear Unit Owner: The Board of Directors of Toronto Standard Condominium Corporation No has reviewed the latest Reserve Fund Study at a meeting held on September 22, 2015 with a proposed funding plan in accordance with the Condominium Act, The plan proposed by the Board does not differ from the projections made by the engineers in the Reserve Fund Study. A copy of the Study and this funding plan has been forwarded to the auditor for review in keeping with the Act. This proposal is forwarded to you for your records. There is no action required by unit owners and the Corporation is currently meeting the new funding criteria. Attached to this letter is a copy of the funding plan showing the planned contributions to the reserve fund (both for TSCC 1723 & the Shared Roadway / Walkway). Unit owners are reminded that the Reserve Fund Study and the funding requirements are required to be updated by the Corporation s engineer every three (3) years. If you have any questions or concerns please feel free to contact the Management Office at or by way of at essex@delcondo.com Sincerely, DEL Property Management As Agents for and on Behalf of T.S.C.C. # 1723 J. Plant Jennifer Plant, R.C.M. Property Manager

12

13

14

15

16

17

18

19

20

21

22

23