Letter To Owners Budget 2009

CARLETON CONDOMINIUM CORPORATION NO. 419 c/o P.O. BOX 8287 STATION “T” OTTAWA, ONTARIO KIG 3H7 Tel. (613) 738-9700 Fax. (613) 738-0070

March 10, 2009

Dear Owners: The Board of Directors approved the budget 2009/10. There is no increase in condo fees. The budget 2009/10 was maintained at the same level as the previous year’s budget. Our Corporation is ending the fiscal year in a good financial position, with a small surplus in the operating accounts and an improved balance in the reserve fund (about $80,000). This creates the right conditions to undertake a major renovation project (hallways renovation) while continuing to build up our reserve fund. The budget was finalized after a review of our condo expenditures over the past three years and meets three major needs identified by the Board. First, the need to provide quality and costefficient services; second, the need to maintain a relatively high contribution to the reserve fund, to re-build our reserves and invest in our building; third, the need to realign our condo fees with those prevailing on the market for comparable condominiums. What are the main changes in the new Budget? The Board and the Manager worked together to improve the efficiency of our repair and maintenance expenditures, which resulted in a 5.6% reduction of this budget line; over this fiscal year a specific attention will be paid to quality and cost of repairs and maintenance contracts. Similarly, administration costs were reduced by 3%; with a main reduction for legal and professional fees. For these budget lines, the goal was to realign them to the actual expenditures recorded over the previous years. The main increase in our budget lines is due to utilities (9%), i.e. water and electivity. Potential savings should be sought in this area. In this fiscal year, the corporation will update its Reserve Fund Study and the Board is considering including an energy audit in this study; this can help us to identify economically and technically feasible ways to reduce utility costs and improve our energy efficiency. Feedback from owners will also be actively sought by the Board. What are the main changes in support of the new Budget? First, the Board remains committed to strengthening the record keeping for maintenance and repairs expenditures. More generally, the Board will keep working to strengthen communication among all stakeholders in the Corporation. Feedback on the repair and maintenance service received by your unit is of specific importance to the Board. Second, over this fiscal year the Board will continue a review of the existing maintenance and service contracts to ensure that the corporation will continue to benefit of quality service at the most efficient prices. Should you have any comment or question, please do not hesitate to contact the Board or the Manager.

______________________ Maria Lo Treasurer

______________________ Alessandro Alasia President

______________________ Jim Mchugh Manager

Email: [email protected]

Email: [email protected]

Email: [email protected]

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Carleton Condominium Corporation No. 419 BUDGET 2009/2010 BUDGET LINE

A

B

C

D

E

F

Actual

Actual

Budget

Projected

Budget

%

2006/07

2007/08

2008/09

year-end

2009/10

change

Note

E-over-C REVENUE 3015

Condominium Fees

417,966

3016

Special Assessment

168,615

3873

Administration & Parking Total Revenue

475,683

492,683

492,683

0.00

492,683

0.00

#1

0.00

3,480

1,196

2,577

2,875

2,875

590,061

476,879

495,260

495,558

495,558

10,059

11,557

11,250

10,800

11,250

EXPENSES Repairs & Maintenance 4102

Elevator Repairs/Contract

4205

Garage/Parking Repairs

3,175

3,100

3,000

2,775

3,000

4218

General Maintenance

40,074

28,837

40,000

33,000

36,000

4302

HVAC Repairs & Maintenance

12,295

12,265

14,000

13,750

14,000

5202

Window Cleaning

1,690

3,651

3,650

3,650

3,000

5203

Waste Removal

3,677

4,219

3,675

3,970

4,000

5206

Cleaning Supplies

1,910

2,354

1,200

1,100

1,200

72,880

65,983

76,775

69,045

72,450

Total Rep. & Maintenance

-5.63

Administration 5001

Office Supplies & Services

2,360

2,453

2,200

1,800

1,800

5003

Telecommunication

3,021

2,570

2,750

2,508

2,750

5010

Management Fees

18,447

18,534

19,480

19,476

19,480

5011

Legal & Professional Fees

6,371

9,598

5,000

7,367

2,000

5012

Audit Fees

3,273

2,847

1,850

2,940

2,500

5301

Insurance

10,485

9,758

9,055

8,000

8,100

#3

5501

Building Maintenance/Wages

31,621

35,106

35,263

35,263

35,263

#4

5507

Worker's Compensation

911

911

1,100

1,000

1,100

5512

Employee's Benefits

2,579

2,690

2,900

2,700

2,900

5520

Employee's Apartment Benefit

1,087

1,581

1,300

1,300

1,300

5601

Intrusion & Fire Security

5,517

9,568

7,500

8,374

8,500

85,672

95,616

88,398

90,728

85,693

99,000

Total Administration

#2

-3.06

Utilities 5701

Electricity

91,642

86,387

90,500

97,500

5704

Water

22,299

22,093

25,000

24,500

27,000

113,941

108,480

115,500

122,000

126,000

Total Utilities

8901

Total Operating Costs

272,493

270,079

280,673

281,773

284,143

Reserve Contribution

328,615

200,000

210,000

210,000

210,000

Total Expenses

601,108

470,079

490,673

491,773

494,143

Excess Revenue(Expenditure)

-11,047

6,800

4,587

3,785

1,415

9.09

#5

#6

See next page for notes.

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Notes: 1. No Increase because we have built up the reserve fund to a level that can be sustained if we do not have any major emergencies. 2. Decrease is based on not having any current legal issues pending. 3. Minor increase this year although rates have been going down because of our good claims record. 4. Superintendent salary will remain the same as we gave him an increase last fiscal year. 5. Increases based on the notices received from the utilities of their proposed increases over the next fiscal year. 6. Reserve contributions have increased substantially over the years and we are now at a level that can sustain the projected repairs. The Board is commissioning a new study that should be available in the fall of 2009.

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