CHAMPAGNE SHARE BLOCK LIMITED
CK 1956/003056/06
DIRECTORS: MR J. RIDL(CHAIRMAN), MR A. ROGERS, MRS N. FELDON, MR L. McQUEEN, MR R. BOWDEN,
MR C. DA COSTA, MR S. FREDERIC, MR SJ MACQUET & MR RJ MACQUET
HEAD OFFICE: P.O. BOX 763, HILLCREST, 3650 TEL NO: 031-765 7100 FAX: 031-7655195
RESORT: TEL: 036-4688000 FAX: 036-4681169 EMAIL: shareblock@champagnesportsresort.com
NEWSLETTER NUMBER 57 31 October 2009
September and October are the months of renewal & revitalisation as plant life enjoys warmer temperatures and the life giving Spring rains like millions of Springs before. Our trickling river is bubbling again. The brooding mountains overlook this process. One never tires of the beauty.
REFURBISHMENT PLAN
The AGM and our previous newsletter discussed the owner survey of the state of refurbishment. It was clear that there was overwhelming support for Option 1 - i.e. to speed up the new minimum standard and to take into account many individuals financial positions. This message clearly guides your board to meet this decision and to raise an additional amount of R600. This will be added to the levy and accounted for as a separate line item. In itself, this may be seen as one off, but it should be noted it is part of a dynamic process over time, which will no doubt involve further decision making processes. We have a strong body of owners who will disappointed that the full R2000 with the full refurb is not taking place, certainly at this point. Management will no doubt be relieved that the cause is now clearly determined in a fair way amongst all the owners.
BACKGROUND TO THE 2010 LEVY
The proposal is for levies to increase by 8.3% based on the positions below. In addition an amount of R600 will be added as a new line item called refurbishment project, which line will contain only spend related to the phase 1 project. This will have a total impact of 23%.
However, unless the timeshare owners in conjunction with your board decide to extend the refurb program, the next years levy will be based on a 8.3% base, which then would reflect the levy excluding the particular circumstance. In effect, it has the same effect as though there was a special levy, which does not impact on normal affairs.
The levy is based on the existing budget, having examined variances and thus adjusting for such variances. We have a number of risk factors, where we have needed to make fair assumptions.
We have assumed an inflation position of 8%. Information to hand shows it could average 6% but there were also upward pressures. We were also informed by the industry as a whole, who are generally using an 8% base.
Staffing is always a problem when it is dictated to us by a wage determination. Further, our sector determination would only come available in July. We would budget CPI+2% for the first period to July, and say CPI +3% for the second period. We would attempt to bring staff in line with the July determination.
The rates position is a wild card, as our local municipality has certain challenges – I think that’s the way they put it today. Our valuations are under objection and we are still awaiting what the Randage will be. Last year we budgeted R345K and the year is likely to be less than R200K, also because new rates would only be partially applied for the year. We have taken a position of allowing R425K. We need to note that this could be above or below the actual outcome.
Electricity has been allowed as a 20% increase for the whole year. We had increased the previous year and thus have a higher base to work from. Once again, we hope we have taken a sufficient position, with the threat that the proposed electricity levy may also impact on us. This also directly relates to generator diesel. In this regard, we have not increased the budget, but still allowed R240K. Thus, on balance we hope these items will smooth each other out.
Our normal LTM – the line item which specifically takes the long term maintenance plan into account, is insufficient to cover a refurbishment of the magnitude described in the survey. We have therefore increased this item by the normal inflation rate only. The clarity given by adopting the phase 1 refurb program will allow us greater clarity in planning forward for this crucial cost centre. During this past year, we have had savings in rates and diesel and these amounts have been able to be used to catch up with thatching program.
Should the Hotel build additional rooms, the budget will be adjusted if necessary. This would not have a negative effect.
We are satisfied that our budget is still very competitive in the industry. We all face similar costs pressures and we have been able to maintain our levy nicely below our peers. We also understand that all the explanations in the world do not soften the impact of our rising costs. We always think budgeting may be easier with experience. It seems our experience is needed to cater to ever increasing complexities in the economy. We have the good fortune in having an additional week in the system in 2010 and this will provide a buffer to the budget.
LEVIES FOR 2010
We come to the time of year when we all need to pay our way. For a broader view on the budget process please refer to the section below on the levy budget. The levies approved by your board are as follows:
UNIT 2010 LEVY REFURB LEVY TOTAL LEVY AFTER DISCOUNT
1 BEDROOM 3609.93 492.72 4102.65 3794.95
2 BEDROOM 4030.83 550.17 4581.00 4237.43
3 BEDROOM 4589.29 626.39 5215.68 4824.50
2 BEDROOM SPLIT 2306.79 275.09 2581.88 2388.23
3 BEDROOM SPLIT 2509.08 313.20 2822.28 2610.60
Levies are payable by the 01st of January 2010, in order to qualify for the 7.5% discount. However, due to the December break, we allow a grace period to the 31st of January 2010. From this point, the window in which to take your discount is over and interest at 1.5% per month applies. It is not our intention to penalize our owners, but at least to see that the specific additional costs of sending out additional statements, are borne by the specific additional income.
PAYMENT OF THE LEVY
If you pay by credit card, please send us your instruction to debit your card. If you wish to pay by cheque, please post to P O Box 763, Hillcrest, 3650 and most important if you pay by direct transfer, please advise us of your account details by email shareblock@champagnesportsresort.com or fax your deposit advice to 031-7655195. As so many amounts are the same, this avoids confusion. The bank account details are as follows Standard Bank – Hillcrest, Account No. 250831686, Branch code 045726. Please include your account number as reference. The share block office in Hillcrest is closed from the 15th of December to the 04th of January 2010. A staff member will, however, see to deposits daily. Emails for administrative matters will be dealt with from the 04th of January 2010.
ARREAR LEVIES
We have some owners who have levies in arrears. They are effectively blocked from booking until they bring their account up to date. For bookings, it is important to note that there is no carry over system, so if you have done nothing – you lose your week. Thus for these owners, please do pay your levy, so that you can get the benefit of your week. It’s a no win situation to lose your week and still have to pay the levy
TECHNICAL MATTERS
The old company Champagne Sports & Racket Club (Pty) Ltd had to be closed in order to comply with specific tax legislation. This is covered in detail in previous newsletters & AGM’s. If you see a liquidation advertisement cropping up again, this is because the powers that be had some administrative glitches and we may have to repeat the process for good order. My goodness what a waste of time!
REMINDER – 2010 HOTEL POOL
As mentioned above, if you decide that you don’t intend using your week, you may ask the Company to place your week in the Hotel Pool. They will then occupy your week and pay your levy on your behalf. This is a year to year arrangement with the hotel and is on a first come – first served basis.
REMINDER - NEW EMAIL ADDRESS
Please note the new email address at the Head Office shareblock@champagnesportsresort.com The old address will forward mails for a limited period.
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