Solid financial results

Transcription

1 Lucienne Fild

2 Never underestimate the power of a small group of committed people to change the world. In fact, it is the only thing that ever has. Margaret Mead, distinguished American anthropologist, intellectual and scientist. The quote above is just so relevant in the context of Atlantic Beach Estate where it has taken a small group of committed people, supported by a whole community, just three short years to transform this Estate into a prestigious and financially sound lifestyle estate. I am sure that you will agree with me that your property values reflect this. If, like me, you compare your home to those advertised by our three property partners every week, you are likely to have noticed a significant increase in property prices on the Estate over the past 12 months. In recent conversation with a resident who is renting a home on the Estate, he mentioned that he and his family are so impressed with the vast improvements made on the Estate in recent years. However, he also lamented the fact that he had opted for a wait and see approach before buying property since it has now become almost unaffordable for him to buy a home on the Estate. The good news is that the noticeable increase in property values is not just perceived; it is real. A number of initiatives implemented over the past three years by the small team referred to earlier have been fundamental in achieving this. While these achievements are outlined in detail in the CEO s Operational Report, I would like to single out the following factors that are contributing to the positive image of the Estate: Solid financial results Only three years ago the Atlantic Beach Homeowners Association had no cash reserves and posted a loss at the end of its financial year. You ll remember that it took a special levy to rescue our Estate from the financial trouble it was in. At the end of the most recent financial year, the Audited Financial Statements showed a healthy financial position with R4, 5 million in cash reserves (R2.71 million in 2013; R2.59 million in 2012 and R0.26 million in 2011). It is important to note that the current cash reserve was achieved against an accumulated capital expenditure over the past three years of around R4 million, which was required to bring the Estate s previously neglected infrastructure up to standard. The Association achieved a net after tax surplus of R for the year ended 30 June 2014, this having taken into account capital expenditure amounting to R1.13 million. The Board once again approved a below inflation levy increase of 5.7% for the 2014/15 financial year. This equates to a levy increase of R100 a month, which we believe to be extremely reasonable. Solid forward planning and good financial controls, which include

3 good debtor management, will allow us to keep levy increases at reasonable levels going forward. Our intensified focus on collecting long-outstanding levies continues to pay off. Although the Annual Financial Statements reflect outstanding debt due by homeowners as R1.66 million (2013: R2.34 million), close to R of this debt is payable by one owner against whom we have taken legal action. It is encouraging that the vast majority of homeowners are paying their levies timeously and we thank you for this. The following infrastructure enhancements were made in the past financial year: New and improved beach gate entrance lighting installed; IT systems upgraded; New gardens planted and existing gardens enhanced; Pool, tennis courts, gym and function room upgraded; 1800m² of pavements paved; and Three new storm water pumps purchased to reduce impact of increase in storm water. A successful property partnership On 1 July 2013, our newly forged property partnership with Complete Coast, Pam Golding and Seeff Properties came into effect. This initiative has resulted in the significant increase in the marketing of the Estate and a substantial rise in the demand for our properties. In addition, this partnership is generating additional revenue for the Estate. Overall, this initiative has achieved significant results in just one year, which include: Weekly advertising in Property Junction, distributed as part of the Sunday Times; Regular exposure in Estate Living Magazine, Real Estate Magazine, Purely Local, Property 24; Listed as one of South Africa s top security estates by Property24 and Real Estate Magazine; The Women s Month Initiative, which celebrated the women on the Estate. A solid security system The majority of homeowners chose Atlantic Beach Estate first and foremost for the security that it offers. I am exceptionally proud of the fact that the Estate s security systems have proven reliable and effective over the past year. There has not been a single breach of our perimeter fence over the past 12 months and incidents on the Estate have been restricted mainly to petty theft, vandalism and domestic issues.

4 The security officers provided by Thorburn Security Solutions deliver a professional service and we are pleased with the many compliments that are received on a regular basis from residents commending them for their friendliness, honesty and willingness to go beyond the call of duty to help. Supporting the community beyond our gates The majority of us living on the Estate are incredibly privileged and we recognise that the same is not true for many members of the communities living beyond our gates. This has resulted in a generosity and willingness to help others that has encouraged a number of social responsibility initiatives spearheaded by our CEO, Harry White, and his team. The following are a few examples: Following the drowning of an Atlantis boy in October last year, the Association decided to sponsorship two lifesaving chairs for Melkbos beach. Victims of domestic violence are often further traumatised when they have to report to the police station. To help make this a less painful experience the Association, with the help of residents, supported the upgrade of the Victim Support Centre at SAPS Melkbosstrand. At the same time a garden was also established at the police station. The brown bag collections have received tremendous support from residents and have thus far supported the SAPS Trauma Centre, the A21 Campaign, Orion, Thuthuzela Care Centre and Olive Close Creche. A sign of a healthy community is its willingness to reach out and help other communities that are less fortunate. I know that there are many residents who do this without expecting recognition, whether it is charity work, animal rescue or patrolling the streets of Melkbos at night with the Melkbos Neighbourhood Watch. Saving our fynbos An important feature and major attraction of our beautiful Estate is the fynbos nature reserve, which makes up large parts of it. Harry and the members of this Board therefore dedicated much time over the first few months of 2014 to dealing with the issue of the removal by Atlantic Beach Management (ABM) of the post and fence rail and the subsequent cutting of the fynbos. We are happy to report that as a result of our considerable efforts and the groundwork done by our legal representatives, both the City of Cape Town and the Western Cape Government have issued pre-compliance notices to ABM, instructing ABM to implement a rectification process. We are hopeful that in due course this process will see the status quo of the past being restored. We see no reason to commit further resources to additional legal action at this stage, but should the Board feel that the current process initiated by the City and the Western Cape Government is not resulting in the desired outcomes, the Board will reconsider.

5 In closing At the beginning of this message I made reference to the small group of committed people. While I don t think they need an introduction, I do believe that this team deserves a huge thank you. None of them are residents of this Estate, yet they have dedicated much of their time to turning our home into the prestigious Estate that it has become. The team in question consists of our CEO, Harry White, who is supported by Dirk Muller, our Estate and Security Manager, Nikki Delport, our Estate Liaison Officer, Ellmer Hartnick, our Maintenance Manager, and of course our landscaping and maintenance teams. This onsite operational team is strongly backed by Mike Morey, MD of Pam Golding Property Management Services, and Raynelle White, who is the Property Manager and Legal Compliance Officer. Of course none of this would have been possible without the vision and expert input from my fellow Board members. Not always obvious are the many hours sacrificed by all Board members to applying their minds to issues concerning our Estate. I would like to thank Don Boyce, David Lotz, Alan Keet and Nico van der Walt for volunteering their time and skills to help steer the Association and the Estate in the right direction. In closing, I would also like to thank you, the homeowners, for the overwhelming support you have shown the Management Team and the Board during the year under review. While it is impossible for us to please everyone all the time, I firmly believe that we have delivered in line with the expectations of the vast majority of homeowners whom we represent. Lucienne Fild Chairman Atlantic Beach Homeowners Association