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Budget

Index

Index

Service Charges

Budget

Reserve Funds

Budget

Budget for 2018-19

Explanation

The Management Company is mutually owned and non profit making, so service charges are set just to cover expected costs as set out by property legal agreements, with property owners paying for the services from which they benefit. Specific points are:

  • Unlike recent years and despite the focus on keeping costs down, it has no longer been possible to keep the average rise in charges close to the level of inflation with house charges even decreasing. There are unavoidable average rises of 5.9% for flats and 5.8% for houses.
  • A major reason for this is a large 72% increase in insurance premiums because of the Estate's very poor record of claims for water damage. Only flat owners can do anything about this. Owners, including those off-site who are renting their flats, have a responsibility to maintain their flats and plumbing. Inspections by a qualified tradesperson should be carried out for electricity and plumbing every 5 years. If the Management Company discovers that alterations have been made without the consent required under the lease, or if a leak occurs, action is taken, but it is then too late to prevent damage, an insurance claim and premium rises. Legal advice is that we are not allowed by law to intervene in the insurer's handling of claims.
  • Another major factor is the need for flat block roof repairs. There were several last year and this year two repairs were required to 1-71 St Benedicts Close and another to 31-45 Church Lane. Owners in these blocks have to pay for these and money must be collected to inspect all roofs during the periodic work in 2020. Repairs in 2020 would be funded from reserves and costs recovered in 2020-25, so reserves are essential.
  • Electrical work is being carried out in June after the 5-yearly inspection and testing. However, the electrical installations are now 30 years old and do not meet current safety standards. Money is being collected to replace these in around 2025. This applies to Estate lighting paid by flats and houses as well as flat communal areas.
  • The other main cost increase affecting everyone is for removing dumped waste, which is partly shared between flats and houses for Estate areas and partly paid by flats for bin stores. Only residents can keep costs down by disposing of waste properly. Please report anyone you see dumping waste, so this can be charged to them.
  • To keep increases to a minimum, flat communal area floors will no longer be sealed before 2020 and metal grilles over air vents to deter mouse entry will only be fitted if flat owners opt for this, paid for by higher charges in 2019-20 for their blocks.

Budget

DescriptionY/E 2018 EstimateY/E 2019 EstimateEstateFlatsAccount Code
Maintenance
Repairs and maintenance£8,500£7,750£1,250£6,500GE16
Parking control£680£720£720GE16
Door entry system£500£250£250SS01
Cleaning of flat common areas£14,112£14,414£14,414CL01
Bin store cleaning & rubbish removal£6,984£7,906£3,953£3,953RR01
Gardening£30,140£30,764£15,382£15,382GA01
Tree pruning£2,500£2,500£2,500GA04
Utilities
Electricity£5,200£4,824£2,171£2,653EL01
Professional fees
Legal and professional fees£500£750£750LP08
Managing Agent fees£43,902£44,824£8,965£35,859MF01
Accountancy fees£4,050£4,200£2,520£1,680AU01
Health and safety fees£998£984£197£787HS04
Management Company & sundry expenses£300£300£300LP06
Insurance
Buildings insurance£11,168£19,210£793£18,417IN02
Terrorism insurance£5,051£5,266£217£5,049IN05
D&O insurance£365£365£365IN08
Total estimated annual expenditure£134,950£145,027£40,083£104,944
Non-annual expenditure
Estate Reserve Fund collection£2,413£3,154£3,154RE01
Flats Common Reserve Fund collection£14,389£10,611£10,611RE01
Flats Reserve A collection£1,515£1,535£1,535RE01
Flats Reserve B collection£1,882£1,882£1,882RE01
Flats Reserve C collection£1,730£1,750£1,750RE01
Flats Reserve D collection£1,686£1,687£1,687RE01
Flats Reserve E collection£3,816£4,477£4,477RE01
Flats Reserve F collection£3,327£4,529£4,529RE01
Flats Reserve G collection£4,101£4,139£4,139RE01
Flats Reserve H collection£1,807£1,409£1,409RE01
Flats Reserve I collection£10,955£14,340£14,340RE01
Flats Reserve J collection£4,256£4,257£4,257RE01
Flats Reserve K collection£5,098£5,097£5,097RE01
Flats Reserve L collection£1,827£1,846£1,846RE01
Total estimated non-annual expenditure£58,802£60,713£3,154£57,559
Total
Total estimated expenditure£193,752£205,740£43,237£162,503

Where Your Money Goes

What service charges are spent on is illustrated in pie charts for freehold houses (and WHA) and leasehold flats in a document (PDF, 103kb) showing the breakdown.

Budget

Previous Budgets

Previous budgets can be found on the Documents page.

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© St Benedicts (Tooting) Management Company Limited - 4 June 2018