RESOLUTION FOR INCREASE THE SERVICE CHARGE

RESOLUTION FOR INCREASE THE SERVICE CHARGE 

We have not increased the members’ contribution since 2007. However our operation cost has been increased drastically throughout the following years.

2009/2010   6M

2010/2011 10M

In 2009/2010 only, the common elements and car park expenditure have increased by over 9 M and this is expected to increase still further in 2010/2011. The availability of sufficient funds will ensure timely maintenance and replacement of aging plant and equipment and this in turn will help to protect and enhance the value of property that members have invested in.

There has been incessant escalation in price of diesel, Electricity Tariff (3.2 M to 4.2 M in March 2011 due to the 25% increase in fuel adjustment charges), Janitorial, Security and the Maintenance and the costs have recorded appreciable increases. Increasing inflation and increases in cost of material of contractors, added further stain to our cash outflow.

Further, the following Expenditures increased drastically during the Year.

Electricity                              Rs 1,584,651

Promotional Expenses          Rs 4,255,218

Advertising                             Rs 1,427,066

Lift Maintenance                   Rs    358,899

As you are aware that we have completed the painting of the external walls from 3^rd floor onwards. We have also planned re-tile the building (common areas) and to refurbish the ceiling whilst addressing the electrical concerns.  Furthermore two elevators on the southern side also needs to be re-placed along with the two escalators in the mall, operating the existing escalators is not financially feasible option as the maintenance cost has skyrocketed and also electricity consumption is high compared to the latest escalators which are currently available in the market.

In the light of the above we will be proposing to build a sinking fund of Rs. 25 Million over next five years commencing from January 2011.

Furthermore this would be applicable for the surcharge which is levied on member’s contribution when an Apartment is converted as office/commercial purpose.

Letter to increase the Charges

From                    : XXXXX XXXXX Pannapala

Date                     : 25th, October 2012

Subjects               : Billing On XXXXX (PVT) LTD Power Consumption

To                         : Maintenance Engineer,

                               Mr. Gervin  Abeydeera

Increase in Billing of XXXXX (PVT) LTD  cooling package

As you are aware the electricity cost of the corporation has increased by 20%, this is due to the fuel Adjustment Charges (F.A.C) imposed by the Ceylon Electricity Board. Further, as a result of this over monthly electricity cost has increased by 1 M.

However, as per the corporation practice we have charged additional charge form the XXXXX (PVT) LTD when C E B imposed F.A.C. this was happen from January 2011 onward and, When  C.E.B. Stopped  levying  F.A.C  the same was withdraw   from XXXXX (PVT) LTD power consumption bill.

Again form February 2012 C.E.B. Started levying F.A.C to our main bill and no respective increase has done for keels. Therefore,  From  October 2012 the  F.A.C. will be added  to keels power consumption  bill and areas  as to be  collected  from  same  party

Further, Please be kind enough to advice the Accountant AMPL to issue the invoice on power consumption according to the fluctuation for respective bill

Thank  you

…………………………..

XXXXX XXXXX Pannapala

(Accounts Clark)

AVIVA Management (Pvt) Ltd