Dear Members,

I am pleased to present my annual report for the Arnhem Body Corporate.

 

1.  BUDGET

With the next exterior renovation project coming up in a few years, the focus this past year was on saving where we could – unfortunately, we ended the 2024 financial year with a deficit of R28 967 (approximately 1.9% over budget).

The following costly expenses have contributed to this deficit:

  • Unplanned plumbing repair work on common property, consisting of burst supply lines, leaking sewer pipes and troubleshooting, which amounted to over R73 000 in repairs for the year;
  • Unplanned electrical repair work, which amounted to over R32 000 for the year;
  • Statutory window replacement contributions which amounted to R51 657 for the year (budget: R20 000).
  • Replacing and upgrading failed remote-control receivers and reprogramming of remotes, which amounted to R61 579 (budget: R13 800).

Over the next financial year, further statutory contributions to window replacements are foreseen, since many of the remaining steel bathrooms & kitchen windows in the block are now well beyond repair and in urgent need of replacement. The fence also needs to be repainted, as well as some urgent repairs to cracks in the brick façade.

The budget therefore makes provision for a significant 7.02% levy increase, which will be tabled for approval at the Annual General Meeting.

 

2.  SOLAR PROJECT

Enclosed to this year’s AGM invite is a proposal for the long-awaited solar project. This will be Arnhem’s first revenue-generating project, which will help to keep levies down in the long-term.

After the first phase is completed, the income raised by the system will be used to fund the removal of the asbestos roof over the older garages and upgrading it to new aluminium sheeting. The solar system can then be expanded to maximise these benefits.

 

3.  WINDOWS

Since Cape Town has seen one of its wettest winters in many years, several owners have experienced leaks, particularly in north-west facing units, related to the now 54-year-old aluminium windows.

The expectation has always been that replacing the windows with newer technology will make the problems go away, but this may not necessarily be the case, based on experiences this past year. The matter will be tabled at the AGM, where we may need to consider the following:

  • Reconsidering sliding windows as the only acceptable design and increasing the design options deemed acceptable (for example: permitting hinged windows which do not have the traditional disadvantages of sliding windows);
  • Passing a resolution which makes it mandatory for a new owner to replace original windows upon the sale of a unit, at no cost to the Body Corporate;
  • Passing a resolution which limits all window replacements to a single supplier, which will allow achieving better uniformity and consistency;
  • Passing a resolution which limits the Body Corporate liability for windows (e.g. limiting a window replacement to one per 20- or 30-year interval).

The above may be somewhat controversial and are only examples, but a thorough discussion in this regard is long overdue.

 

4.  GENERAL

In spite of increasing maintenance and repair obligations as the building becomes older, Arnhem is very well maintained and remains an excellent choice for investing and living.

There is a currently a big demand for sales and rentals, generally driven by Arnhem’s generously sized units, fantastic views and location.

 

Yours faithfully,

Klaas Carstens

Chairperson 2023/2024