We have set a budget based on what we expect it will cost to provide the services listed in the breakdown in 2022/23.
Some costs increase because the contract has an inflation allowance built-in, such as grounds maintenance and the servicing and testing of fire alarms, emergency lighting and other fire prevention equipment. This year there has been a substantial increase in the cost of electricity when the contract was renewed, and the building insurance premium increase was much higher than inflation.
The cleaning contract expires this year, and we have started the process for re-tendering. The budget for cleaning includes the cost of procurement and an increase in costs above inflation for the new contract. This is because our experience in the market for other contracts has been that prices are now much higher than current charges.
Other increases are where our experience in the past couple of years shows that more is being spent on a service, such as bulk refuse collection or communal repairs, and the budget needs to increase to avoid large deficits.
Some schemes are now being charged for depreciation on equipment renewals – this is where the cost of replacing equipment, often communal aerials and satellite receivers, has been spread over several years rather than recharge residents the full cost in one year.
If you receive services from a Managing Agent, the budget for this item will be based on the latest information we have of their estimated service charges. It also includes ground rent if this is charged by the freeholder.
Finally, we may be doing extra works at your scheme, such as fire prevention compartmentation works. You will have received notification of these works in January 2022.
Please note that this is an estimate of what we expect to spend over the coming year, and your service charge will be adjusted if the actual costs are lower than the budget. You will not be charged if work is not carried out. This adjustment will be made to your account in October 2022, once the actual costs are confirmed. However, if Mount Green’s expenses are higher then you will be asked to pay the difference