Dear Sir/Madam

SERVICE CHARGE BUDGET FOR BELLAMY HOUSE

Please find enclosed a copy of the proposed Service Charge Budget for your
development for the next financial year, beginning on 1st May 2023

The budget shows the anticipated service charge for your development and your
individual share as specified in your lease/management deed.

Our teams work incredibly hard to review your development's budget, making
sure that we are doing all we can to keep costs as low as possible whilst not
compromising on the service we provide. It is however unavoidable that some of
the UK-wide cost of living challenges we’re all facing have affected some areas of
your service charge budget.

We are really pleased to be able to commence budget meetings again in-person

and I welcome the opportunity to go through the budget with you at our next
meeting scheduled for Wednesday 22nd March 2023 at 10am – in the communcal
lounge.

I have provided below a summary of items in the budget that I believe require
further explanation. We can of course discuss this further in the budget meeting.

Communal electricity

Steep increases in energy prices, due to unprecedented pressures in the global

energy market, are unfortunately having repercussions for homes and businesses
across the UK.

We have renegotiated our electricity contract across all our developments as the
current deal came to an end at the end of September 2022. We do everything we
can to get the best deal possible for our customers, but the reality is that it’s an
incredibly tough market and there are no ‘good’ deals to be had at the moment.
Whilst we appreciate further prices rises are unwelcome, I want to assure you the
latest deal we have reached is comparable with how the overall market has risen.

FirstPort procurement team works closely with an independent energy consultancy

firm who secure green energy contracts at the most competitive price possible for
our developments. We know our customers want the lowest price possible without
risk of in-year price hikes and we tender our contracts as a whole portfolio, fixing
the price for twelve months. The latest deal we have secured will be in place until
the end of September 2023, meaning that if there is (as predicted) further price
rises up to this date, the price for communal electricity at our developments will
not increase further.

It’s important to bear in mind that your electricity costs are based on actual usage.
The increase in this year’s budget has therefore been based on the data available
to reflect your development’s likely usage more accurately over the next year.
Management Fee

Like everyone, we’re experiencing a significant rise in costs across all areas of our
business. Due to the continuing economic climate and the current rate of inflation
now standing at 11.8% (June 2022), this has resulted in an increase at 7.5%. It’s
important to us to help support our customers at challenging times and we’re
pleased to have been able to keep this increase below inflation.

Planned Major Works

We want to keep you informed of your development’s cyclical and long-term

maintenance plan, and below is a summary of the major works projects we are
planning to deliver this year. The reserve fund contribution we have allocated in
your budget takes into account this planned work so that we have money set aside
to help fund it.

We will advise you of more detail closer to the project, when we formally consult
and issue notices to customers inclusive of specifications and copy quotations.
This will give you an opportunity to make any formal observations. You do not
need to do anything until you receive formal notification in our notice of intentions.

• Emergency Call System Upgrade – is due to be completed this year as

planned, the project is in the final stages but is currently onhold.

Answering any further questions or queries

I hope you find this summary useful. If you have any questions, please direct
them to your Development Manager or Property Manager in the first instance. If
you have an urgent query and you are unable to contact your Development
Manager/Property Manager, you can call our contact centre on 0333 321 4041.

Yours faithfully

David Brown
Property Manager
 14369 Bellamy House
Service Charge Budget
Year ending 30 Apr 2024
30 Apr 2022 Actual 30 Apr 2024 30 Apr 2023
INCOME
3,524.86 Sundry Income 3,765 3,765

3,524.86 Total Income 3,765 3,765

MANAGER/EMERGENCY CALL
14,801.04 Staff Employment 16,262 16,071
313.58 Telephone 450 415
4,245.75 Monitoring Service 4,450 3,191
825.88 Monitoring Telephone 800 800
524.24 Sundry Expenditure 650 500
COMMUNAL SERVICES
9,814.25 Insurance 11,585 10,744
- Health & Safety 540 540
9,300.32 Electricity 24,525 7,500
2,685.64 Water & Sewerage 3,500 3,250
2,503.02 Window Cleaning 2,681 2,553
3,498.01 Communal Area Cleaning 3,800 3,570
3,017.50 Grounds Maintenance 3,092 2,908

REPAIRS & MAINTENANCE

477.88 Lift 500 478
1,200.16 Fire Systems Maintenance 850 1,184
1,812.30 Door & Emergency Systems 1,863 1,807
2,866.59 General Maintenance 5,000 5,000
- Insurance Excess 350 350
210.00 Laundry 300 300
RESERVE FUNDS
12,000.00 Redecoration Contribution 14,000 14,000
14,000.00 Contingency Contribution 14,000 14,000
PROFESSIONAL SERVICES
11,612.02 Management Fees 13,045 12,135
405.00 Audit Fees 496 431

96,113.18 Total Expenditure 122,739 101,727

92,588.32 TOTAL SERVICE CHARGE 118,974 97,962

Prepared on Wednesday 1st March 2023
This document and its contents are confidential to FirstPort Retirement Property Services and the residents of
the development to which it relates. It may not be copied, published or otherwise distributed without the
written consent of FirstPort Retirement Property Services.
Apportionments for Property: 14369
Bellamy House
New Street
Braintree
Essex
Number of Units : 26

Schedule 1 Schedule Budget: 118,974.00

The apportionments applicable within the development are as follows:

1 / 26 = £4,575.92 per annum or £88.00 per week

Total Budget for Bellamy House £ 118,974.00

Financial year ending 30 April 2024
Development number 14369
Development name Bellamy House

Income
Estimated income from the hire of the guest room and any other income applicable to the development

Staff Employment Costs

Development Manager's salary package, including where applicable: Estimated pay increase in the new
year, Employers National insurance, Pension contribution, Apprenticeship levy contribution.

VAT now payable on development-based staff employment costs as per HMRC from 01 November 2018

Telephone
Budget includes business calls, rental, broadband and VAT.

Monitoring Service
This is the cost of the 24 hour emergency monitoring service including
VAT, provided by Cummunity Interest Co.

Monitoring Telephone
The cost of the telephone line to the monitoring centre.

Sundry Expenditure
For small sundry items such as office stationery, postage and refreshments.

Insurance
This is the cost of insuring the building. It includes where applicable; terrorism cover for the development,
Development Manager sickness and Lift cover and allowance for revaluations.

Buildings cover is provided by Covea Insurance plc

Health & Safety

Cost of risk assessment undertaken by independent company

Electricity
Estimate is based on historical consumption

Water and Sewerage

Estimate is based on historical consumption

Window Cleaning
Window cleaning is carried out by Stuarts Cleaning Services Ltd Stuarts Cleaning Services Ltd
The windows are cleaned approximately 6 times each year
The frames are cleaned approximately times each year

Communal Area Cleaning

Cost for the contract cost with Sqeeky Clean and additional costs listed
below if applicable
Additional Cleaning £250.00

Grounds Maintenance
Cost for the contract cost with Essex Support Ltd and additional costs
listed below if applicable

Ad-Hoc Works £350.00

Lift Maintenance
Lifts are serviced throughout the year. The contractor is Precision Lift
Services Ltd
Fire Systems Maintenance
This is the cost of the system maintenance contract with BBC

Door & Emergency Systems

This is the cost of the system maintenance contract with Open View

General Maintenance
This pays for day to day work we expect to undertake.

Insurance Excess
All claims result in the payment of a policy excess.

Laundry
This is a provisional amount to include for maintenance, or repairs or rental of equipment

Redecoration Contribution
This amount is based on a realistic assessment of anticipated costs for internal and external redecoration of
communal areas.
The last external redecoration was 2020
The last internal redecoration was 2015
The balance in the Redecoration Fund at the last set of Accounts was £12,000

Contingency Contribution
In the next year, we plan to collect £14,000
This is set aside to pay for any major repairs which are needed in the future which cannot be claimed from
either insurance, or service contracts.
The balance in the Contingency Fund at the last set of Accounts was £46,699

Management Fees
Your Area Manager is able to provide some information on what services are included in the management
fees.

Accountancy & Audit Fees

The developments year end accounts are audited by an Independent Chartered Accountant. This provision
covers the cost of this service.

Notes
Please note that whilst some parts of the budget are set using the number of dwellings in the development,
that the budget is apportioned using the fraction stated in the lease
14369
Bellamy House

Monthly & Weekly Breakdown Schedule of Budget Cost Heads

The following gives a monthly & weekly breakdown of the cost for
each costhead included in the budget based on each type of
property/lease fraction.

Budget Year Ending

30/04/2024 A
Type of property/lease fraction 1/26

MANAGER/EMERGENCY CALL
Staff Employment £16,262
Monthly £52.12
Weekly £12.03
Telephone £450
Monthly £1.44
Weekly £0.33
Monitoring Service £4,450
Monthly £14.26
Weekly £3.29
Monitoring Telephone £800
Monthly £2.56
Weekly £0.59
Sundry Expenditure £650
Monthly £2.08
Weekly £0.48
COMMUNAL SERVICES
Insurance £11,585
Monthly £37.13
Weekly £8.57
Risk Assessments £540
Monthly £1.73
Weekly £0.40
Electricity £24,525
Monthly £78.61
Weekly £18.14
Water & Sewerage £3,500
Monthly £11.22
Weekly £2.59
Window Cleaning £2,681
Monthly £8.59
Weekly £1.98
Communal Area Cleaning £3,800
Monthly £12.18
Weekly £2.81
Grounds Maintenance £3,092
Monthly £9.91
Weekly £2.29
 Budget Year Ending
30/04/2024 A
Type of property/lease fraction 1/26

REPAIRS & MAINTENANCE

Lift £500
Monthly £1.60
Weekly £0.37
Fire Systems Maintenance £850
Monthly £2.72
Weekly £0.63
Door & Emergency Systems £1,863
Monthly £5.97
Weekly £1.38
General Maintenance £5,000
Monthly £16.03
Weekly £3.70
Insurance Excess £350
Monthly £1.12
Weekly £0.26
Laundry £300
Monthly £0.96
Weekly £0.22
RESERVE FUNDS
Redecoration Contribution £14,000
Monthly £44.87
Weekly £10.36
Contingency Contribution £14,000
Monthly £44.87
Weekly £10.36
PROFESSIONAL SERVICES
Management Fees £13,045
Monthly £41.81
Weekly £9.65
Accountancy & Audit Fees £496
Monthly £1.59
Weekly £0.37