Kings Hill Residential Estate Management Company Ltd

Transcription

1 Kings Hill Residential Estate Management Company Ltd Residential Estate Charge Budget 01 January December 2018 Incorporated in England and Wales. Company Number VAT Reg. No

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3 Kings Hill Residential Estate Management Company Ltd Contact List & Useful Information Contact List Invoice Payment Queries Zoe Brooker Estate Queries Emma Cottee Website Susan Davies This mailbox is monitored by all members of the KHREMC team, and as such queries will be dealt with by the appropriate member of staff. If contacting KHREMC Ltd by , you should expect a response within 3 working days. Frequently Asked Questions (FAQ) Why am I receiving an invoice from KHREMC and why do I have to pay an estate charge? KHREMC are responsible for the ongoing maintenance for the majority of the communal residential areas at Kings Hill, and residents of these areas are required to contribute towards the cost of this upkeep. On the completion of your property purchase, you will have signed a Deed of Covenant which sets out your obligation to pay the annual estate charge. The estate charge is capped by the increase in the Retail Price Index, but may be set lower than the maximum permitted, if agreed by the Company's Directors. What does my annual estate charge cover? The purpose of this estate charge pack is to explain each aspect of the core services provided for the residential estate throughout the forthcoming year. The budget detail page provides a breakdown of specific services, and the associated cost in providing them. How can I pay this year's fee? Direct Bank Transfer KHREMCL Ltd Sort Code Account no Please use your resident ID or address in the reference box or we may not be able to allocate your payment to your account. Cheque Payable to KHREMCL Ltd Please write your resident ID or address on the reverse or we may not be able to allocate your payment to your account. Card Payment Visa & MasterCard (debit & credit) Phone Cash Visit our office in Liberty Square (Open Monday to Friday 9am - 5pm) I have a question concerning the residential estate, who do I contact? Please contact Emma Cottee or Susan Davies (contact details above) who will be able to answer any enquiries you may have regarding the estate management. I already pay service charges to other companies, why the extra one? Kings Hill Residential Estate Management Co Ltd (KHREMC Ltd) maintains the communal residential estate areas, and this is what your fee pays for. You may also pay a service charge for the immediate areas near your home if a management company was set up by the original house builder who developed your property. These charges are totally separate from KHREMC Ltd, and there is no doubling up of services. 3

4 Residential Estate Charge Explanatory Notes Management Management Fees The company has no direct employees however the management fees are an apportionment of the salaries paid to Liberty Property Trust UK Ltd (LPTUK) employees. The cost is apportioned to Kings Hill Residential Estate Management Co Ltd (KHREMC) based on time spent managing the residential estate and administering the estate charge. Accounting Fees The financial statements of KHREMC are audited annually, additional accounting costs are incurred for the preparation and submission of tax returns. Site Management Resources These costs relate to office and administrative expenses incurred in running the company. They include postage, stationery, and an allocation of overhead costs such as rent, rates and utility costs recharged from LPTUK. Utilities Electricity The company has appointed an energy consultant, Control Energy Costs (CEC) to secure the best possible contracts on the market, negotiate the most competitive prices with various energy suppliers and monitor the consumption, advising on any cost saving initiatives. The electricity supplies for the residential estate serve the ball park, the Guardian sculpture, pedestrian footpaths on Braeburn Way, and any other areas not adopted by the local authority. Soft Services Security Equipment The Directors have approved the purchase of two additional Speed Indicator Devices from the reserves for installation on the main distributor roads in the residential area of Kings Hill. These devices monitor the speed of vehicles on the residential roads, the costs of servicing these devices along with 50% of the costs to monitor and administer the ANPR cameras are paid by KHREMC, the remaining 50% of these costs are paid for by the commercial development. The ANPR system is monitored and administered by Kent Police and provides an effective crime deterrent across the estate. The company also makes provision to contribute towards the cost of police or local borough council initiatives for tackling speed and parking throughout the development. A Speedwatch system has been purchased from Kent Police which can be operated by trained volunteers from the community. The costs to maintain and service this additional equipment have been allowed for. Please note that KHREMC does not make any contribution to the operational costs of Kings Hill Security. This company is paid for by the commercial and retail estate management companies. Cleaning and Environmental Daily litter picking (Monday - Saturday) is carried out across the residential estate, and all site furniture such as bus shelters and benches are cleaned regularly. Owing to the extent of the residential area, an additional part-time cleaning operative has been allowed for to ensure a comprehensive litter picking which will be extended to cover Saturday. The maintenance of all the communal landscaping including mowing, weeding, pruning, tree works and the replanting of any failed items within the estate is included within this category. Also included is a contingency for winter gritting and snow clearing on the main residential roads. The 52 dog bins, plus bag dispensers in some locations, within the area are maintained, serviced and the contents disposed of at least once a week. 4

5 Residential Estate Charge Explanatory Notes Hard Services Mechanical & Electrical Services Maintenance of residential street lighting on unadopted roads and some greenways includes inspections and any resulting maintenance or re-lamping. The contract is an all-inclusive one which means that any re-lamping costs are met within the fixed price contract. A contingency for other repairs is also included. Fabric Repairs & Maintenance Included in this category is the maintenance of playground equipment across five different areas, including the ball park and tennis courts (Gibson Drive, Tiffen Way, Emerald Walk, Melrose Avenue and the new playground Waterloo Walk which will be competed in 2018). Weekly visual inspections are undertaken for safety purposes with more detailed independent monthly and quarterly inspections carried out so that any planned or reactive repairs are identified and implemented. An annual, independent inspection is also carried out to ensure the safety of any equipment in the play areas. This category also includes a provision for the repair to the bus shelters on the residential estate. Income Bank Interest Any interest earned on the company's bank account is credited to the estate charge account. Insurance All Risks Insurance Cover The insurance cover is for public and property owner's liability. Exceptional Expenditure Major Works In order to maintain and enhance the residential area, items of exceptional expenditure have been included in the budget. The items planned for this year can be found on the detailed page of this pack. Forward Funding Any additional fees received over and above expenditure incurred are held in a reserve, to ensure Kings Hill is maintained to a high standard in the future and, to alleviate the impact of any upcoming major works which are anticipated as the estate ages. Whilst the estate is fairly young and development is on-going, maintenance and repair costs are lower and some costs are often met by the developer. However, it is anticipated that as the estate ages in the coming years, the reserve will be required as works of a more major nature may be needed. The reserve equates to 1.5 years fees per household. Notes on accounts VAT All estate charge expenditure is shown exclusive of VAT, however, the developer has elected to waive the exemption from Value Added Tax (also known as an Option to Tax). VAT will therefore be charged at the appropriate rate on all estate charges invoiced to residents. 5

6 Summary Estate Expenditure Report Kings Hill Residential Estate Management Company Ltd 01 January December 2018 Cost Category Estate Charge Estate Charge Variance Variance Budget 2018 Budget 2017 % MANAGEMENT 1 Management Fees 49, , , % 2 Accounting Fees 11, , (1,174.85) (9.48%) 3 Site Management Resources 42, , , % 4 Health, Safety & Environmental Sub Total 103, , , % UTILITIES 5 Electricity 1, , (274.89) (16.44%) Sub Total 1, , (274.89) (16.44%) SOFT SERVICES 6 Security Equipment 6, , (10,006.67) (62.13%) 7 Cleaning & Environmental 402, , , % Sub Total 408, , , % HARD SERVICES 8 Mechanical & Electrical Services 8, , (5,767.20) (40.23%) 9 Fabric Repairs & Maintenance 32, , , % Sub Total 41, , (2,522.80) (5.75%) INCOME 10 Interest (1,677.76) (2,337.57) (28.23%) Sub Total (1,677.76) (2,337.57) (28.23%) INSURANCE 11 All Risks Insurance Cover 11, , % Sub Total 11, , % EXCEPTIONAL EXPENDITURE 12 Major Works 195, , , % Sub Total 195, , , % TOTAL WORKS 760, , , % FORWARD FUNDING 13 Estate Expenditure Reserve (198,857.64) 21, (220,056.00) (1,038.08%) Sub Total (198,857.64) 21, (220,056.00) (1,038.08%) TOTAL 2018 BUDGET 561, , , % 6

7 Detailed Expenditure Report Kings Hill Residential Estate Management Company Ltd 01 January December 2018 Cost Category Estate Charge Estate Charge Variance Variance Budget 2018 Budget 2017 % MANAGEMENT 1 Management Fees Salary recharges 49, , , % 2 Accounting Fees Audit fees 4, , % Tax fees 3, , (2,115.00) (41.35%) IXBRL tagging Sage accounts support 2, , % Sage pay fee % Information Commissioners office fee Bank audit letter Site Management Resources Office costs recharged 29, , , % Postage 2, , % Printing & stationery 1, , % Financing fees 1, % Legal advice 8, , % Other miscellaneous % 4 Health, Safety & Environmental Mgt Health and safety report - greenways UTILITIES Sub Total 103, , , % 5 Electricity Electricity 1, , (274.89) (16.44%) Sub Total 1, , (274.89) (16.44%) SOFT SERVICES 6 Security Equipment Police parking initiatives Parking patrols - 5, (5,000.00) (100.00%) ANPR camera phone line 1, , ANPR camera support and maintenance 1, , (6.66) (0.50%) CCTV Maintenance costs Speed awareness patrols - 5, (5,000.00) (100.00%) Mobile speed camera bases Mobile speed camera 2, , Cleaning & Environmental Gully cleaning 2, , % Estate road sweeping 1, , Litter picking 50, , , % Litter picking vehicle 2, , (114.00) (4.10%) Litter picker radio communication Contingency for fly tipping 2, , % Dog bin clearing & maintenance 26, , % Jetwash roundabouts 1, , (37.79) (3.07%) External landscaping 272, , , % Green waste removal 23, , , % Landscaping consultancy 11, , % Snow clearing / gritting 7, , Pest control % Sub Total 408, , , % 7

8 Detailed Expenditure Report Kings Hill Residential Estate Management Company Ltd 01 January December 2018 Cost Category Estate Charge Estate Charge Variance Variance Budget 2018 Budget 2017 % HARD SERVICES 8 Mechanical & Electrical Services Street light maintenance 8, , (5,767.20) (40.23%) 9 Fabric Repairs & Maintenance Melrose Avenue play area 2, , % Gibson Drive play area 4, , Gibson Drive ball parks 4, , , % Tiffen Way play area 1, , Emerald Walk play area 2, , Waterloo Walk play area 1, , External repairs & maintenance 15, , INCOME Sub Total 41, , (2,522.80) (5.75%) 10 Interest Interest Income (2,097.20) (2,731.49) (23.22%) Taxation % Sub Total (1,677.76) (2,337.57) (28.23%) INSURANCE 11 All Risks Insurance Cover Public and property owner's liability 11, , % Sub Total 11, , % EXCEPTIONAL EXPENDITURE 12 Major Works Youth pod camera to deter vandalism - 5, (5,000.00) (100.00%) Replacement trees Discovery Drive 10, , % Upgrade of the Gibson Drive Play area 80, , , % Benches for communal areas 3, , Street light painting 20, , , % Parking and traffic initiatives 50, , , % TIFFEN WAY PLAY AREA - 2, (2,700.00) (100.00%) New residential Website 12, , % Mobile phone signal improvement project 20, , % Sub Total 195, , , % TOTAL WORKS 760, , , % FORWARD FUNDING 13 Estate expenditure reserve (198,857.64) 21, (220,056.00) (1,038.08%) Sub Total (198,857.64) 21, (220,056.00) (1,038.08%) TOTAL 2018 BUDGET 561, , , % 8

9 Residential Estate Charge Summary of Variances Budget to 2018 Budget The overall estate charge budget for the year 1 January December 2018 shows an increase of 41.18% compared with the budget for the previous year ending 31 December There are a range of positive and negative variances contained within the summary schedule, the financial variances are explained as follows: Service Variance Reason Management Fees 3, The apportionment of salaries from Liberty Property Trust UK Ltd. These salaries are apportioned based on actual time spent by staff dealing with residential estate management issues. Accounting Fees ( 1,174.85) Accounting fees are expecting to decrease due to a reduction in the amount charged for tax consultation and preparation of the tax return by BDO. Site Management Resources 3, As with management fees, the overheads are expected to increase as they are based on the allocation of staff time. Legal costs are also expected to increase slightly due to responding to more legal enquiries from Buyers and Sellers. Electricity ( ) Electricity costs for the 2018 budget were based on actual expenditure in Security Equipment Cleaning & Environmental ( 10,006.67) Initiatives to raise speed awareness are planned for 2018 and discussions are ongoing with T&MBC regarding parking initiatives to reduce hazardous parking at Kings Hill is to be moved to Major works. 82, Landscaping and coppicing to increase in 2018 at Gibson drive along with an annual increase in general landscaping costs. Mechanical & Electrical Services ( 5,767.20) 2018 budget to be reduced due to adoption of roads. Fabric Repairs & Maintenance Interest 3, The budget has been increased to allow for pressure washing of the tennis courts Interest income to reduce due to the reduction of late penalty interest. All Risks Insurance Cover Budget increase based on the policy premium for Major Works 144, Major works vary from year to year depending on the requirements identified main expenditure will be to upgrade the Gibson drive play area (see newsletter for details), complete Traffic calming and management initiatives, investigating options to improve mobile network coverage and set up a dedicated KHREMC website for KHREMC to update regularly and keep residents informed of plans for the estate. 9

10 Expenditure Variance Report Kings Hill Residential Estate Management Company Ltd 01 January December 2017 Cost Category Estate Charge Estate Charge Estate Charge 2017 Actual vs 2016 Actual vs 2016 Actual 2017 Budget 2017 Actual 2017 Budget 2017 Actual % % MANAGEMENT 1 Management Fees 52, , , (10.64%) (20.59%) 2 Accounting Fees 11, , , (9.52%) (4.19%) 3 Site Management Resources 39, , , % 2.39% 4 Health, Safety & Environmental Sub Total 103, , , (4.70%) (9.88%) UTILITIES 5 Electricity 2, , , (7.21%) (31.28%) Sub Total 2, , , (7.21%) (31.28%) SOFT SERVICES 6 Security Equipment 16, , , (28.48%) (28.17%) 7 Cleaning & Environmental 292, , , (6.63%) 2.09% Sub Total 308, , , (7.67%) 0.52% HARD SERVICES 8 Mechanical & Electrical Services 14, , , % 10.40% 9 Fabric Repairs & Maintenance 27, , , (43.66%) (39.70%) Sub Total 41, , , (25.98%) (22.56%) INCOME 10 Interest (2,497.98) (2,337.57) (2,079.25) (11.05%) (16.76%) Sub Total (2,497.98) (2,337.57) (2,079.25) (11.05%) (16.76%) INSURANCE 11 All Risks Insurance Cover 8, , , % 23.01% Sub Total 8, , , % 23.01% EXCEPTIONAL EXPENDITURE 12 Major Works 66, , , (14.27%) (34.14%) Sub Total 66, , , (14.27%) (34.14%) WORKS TOTAL 528, , , (9.02%) (7.35%) FORWARD FUNDING 13 Estate Expenditure Reserve 37, , , % % Sub Total 37, , , % % GRAND TOTAL 566, , , % 0.08% 10

11 Residential Estate Charge Summary of Variances Actual Expenditure to 2017 Budget The overall estate expenditure for the year 1 January December 2017 is under budget by 9.02% when compared with the 2016 budget. There are a range of positive and negative variances contained within the summary schedule, the financial variances are explained as follows: Service Variance Reason Management Fees ( 4,915.74) Residential estate issues took up less time by senior staff than anticipated in the year. Accounting Fees ( 1,179.80) Audit charges where lower than expected due to less time needed to review the accounts Site Management Resources 1, Legal costs have increased in 2017 to respond to queries from residents and preperation of legal packs. Electricity ( ) Decrease in Electricity for the year at the Ball Park due to change of supplier. Security Equipment ( 4,587.96) Equipment purchased for Speedwatch initiative to improve awareness of speeding in residential areas. The other planned initiatives in partnership with Kent Police and Tonbridge and Malling Borough council could not be implemented Cleaning & Environmental ( 21,181.93) The budget for snow gritting was only partially used. Savings were also made in coppicing but was carried out when necessary. Mechanical & Electrical Services 1, Adhoc street light maintenance was more than expected due to more adhoc maintenance than expected in 2017 but the 2018 budget will remain in line with the 2017 budget as a contingency. Fabric Repairs & Maintenance ( 12,882.13) Budgeted repair contingencies for the majority of play area equipment were not fully utilised, although all of the required repairs were completed. Interest All Risks Insurance Cover The interest received is less than expected due to interest rates being lower through the year Insurance costs were greater than budget due to an increase in insurance premiums and insurance premium tax. Major Works ( 7,233.90) Improvements to Gibson Drive Play Area made in 2017 cost less than budgeted. 11

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