Following much discussion about the High Royds Budget 2022/23, HRRA has produced an Initial Analysis of Trinity Budget Estimates.
The following information is provided in good faith by members of HRRA. It is our interpretation of the budgets as we have received them. We are not auditors or accountants and cannot be responsible for any inaccuracies. We have undertaken this exercise as we feel Trinity did not provide a detailed enough narrative to explain the various budgets.
HRRA are aware that there have been a number of concerns expressed on Facebook about Trinity Estates budget estimates for 2022/23.
HRRA are disappointed that Trinity did not provide a detailed budget narrative to go with the financial information as requested by us. They appear to have only dealt with increased utility cost impacts and the addition of the Clocktower to the schedule.
Members of HRRA have been looking at the budget changes and there are some observations we can make based on the information received and our knowledge of the different types of properties on the High Royds Estate.
Freeholds – Leaseholds
First, it should be noted that whilst all properties contribute to the maintenance of the wider estate many freehold properties are not managed by Trinity, nor are some properties whose freeholds are owned by Housing Associations such as Chevin House and Menston House.
Second, leasehold properties (and those freehold converted properties who “opted in” to the full service charge schedule) pay different charges according to the cost of the services attributable to their individual blocks.
Increases
HRRA have undertaken an analysis of some charges and what is evident is that there have been significant increases in electricity budget estimates (+159%) whilst many other elements have only increased marginally and in some cases not at all.
What we don’t know at this stage is whether Trinity have been able to manage costs within the 2021/22 budgets or whether increased costs will lead to a deficit when the actual costs for 2021/22 are issued sometime in 2023. (Trinity will now be calculating the actual costs for the year just ended and have around six months to publish these costs, unless they issue a section 20B notice to notify residents of a delay). If it does result in a deficit for the total service charge schedule, residents could be faced with an additional service charge demand.
Owners should be aware of this possibility.
Owners should also be aware that we are still waiting for actual costs for the year 2020/21 to be published.
We can see that there have been huge increases in electricity costs clearly caused by the energy crisis but made worse because communal electricity is charged based on commercial tariffs and not residential tariffs. This is an issue affecting many thousands of properties with communal energy supplies around the country and we understand the government has been asked to review the position by those representing affected properties.
This issue was referred to in the notes of our last meeting published on the HRRA website.
When looking at the information below readers should keep in mind that when these budgets were issued in September 2021 inflation was running at about 3% so it’s quite possible that Trinity’s budget estimates for 21/22 were too low leading to a potential shortfall particularly on electricity costs incurred. This year September inflation surpassed 10% (depending on which measure you use).
These figures are based on an Avant leasehold converted property –
The Wider Estate Charge:
The Wider Estate budget has increased by 16.70%
Excluding the electricity portion of this schedule the overall increase is actually 7.8%
The electricity provision has increased by 159% and the landscaping budget has increased by 15%, mainly due to increased fuel costs for the contractor.
Block Charges:
We have also reviewed one of the leasehold blocks and the percentage increases are as follows:
The “External Block” schedule has increased by 18%, but excluding the electricity portion the increase is 8.9%.
The “Converted Internal” Block schedule shows an increase of 40.18% but this is only 4% if you exclude electricity charges.
The Buildings Insurance schedule has only increased by 4.3%
Small number of cost lines
When analysing the budget schedules it is evident that there are a very small number of cost lines which contribute significantly to the overall increase. HRRA feel that this could have been made much clearer by Trinity when issuing the budgets.
Residents should have a voice
HRRA will continue to query budgets/charges on residents’ behalf, but if we are to be an effective body we need more residents to become involved to understand the issues and help.
If residents really want a voice we need to establish a recognized residents’ association such as a Recognised Tenants’ Association or a Recognised Management Company, and elect HRRA Officers who will then have the legal right to contribute to the budget process on an annual basis on behalf of all residents, and hopefully ensure we have a well-managed Estate where people understand the associated costs and can contribute in a positive and proactive manner.
For more information – and for those residents who are willing to help and become involved with HRRA, you can contact us by e-mail at hrra@highroyds.org.uk
High Royds Residents' Association 