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CENTURION HOME OWNERS ASSOCIATION NPC 20th ANNUAL GENERAL MEETING
1 JUNE 2016
INDEX
1 Notice of the Annual General Meeting
2 Agenda
3 Minutes of the AGM – 4 August 2015
4 Board of Directors 2016
5 Chairman’s Report
6 Annual Financial Statements for the year ended 28 February 2016
7 Financial overview: 2016 Budget vs Actual: 2017 Budget
8 Capex Status Report & Rolling 2 year plan
9 Capital Reserve Fund (Buy-in Levy)
11 CHOA Penalty System
12 Proxy form
10 Amendment to MOI - BIL contribution
NOTICE OF THE 20th ANNUAL GENERAL MEETING
OF THE CENTURION HOME OWNERS ASSOCIATION NPC
PO Box 66717, Highveld, 0169
Company Registration Number: 1995/013780/08
10 May 2016
Dear Member
Annual General Meeting
1 Introduction
The 2016 Annual General Meeting of Centurion Home Owners Association NPC will be
held at 18:30 on Wednesday 1 June 2016 at the Centurion Country Club. Registration will
take place from 17:30.
If you would like to vote on the resolutions but are unable to attend the meeting, you may
appoint a proxy to exercise all or any of your rights to attend, vote and speak at the
meeting.
All owners and registered owners of Sectional titles may vote provided they are in good
standing (levy account paid in full).
2 Explanatory notes regarding resolutions
All resolutions are ordinary resolutions and require a majority vote to be carried.
Resolutions 1 to 6: Consider, note, accept, ratify, approve and appoint
These are ordinary resolutions related to the reporting of the Associations’ financial
position, and are self-explanatory.
Resolutions 7: Note and accept the progress report on existing Capital Projects
The members to consider report back of the status on approved projects.
Resolution 8: That as from 1 July 2016, the Buy-in Levy will be equal to 1% of the selling price or increase with 10%
Clause 23.2 of the Memorandum of Incorporation stipulates that the quantum of the buy-
in levy requires the annual approval of its members.
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The Board proposes that the MOI be amended to make provision for a Buy-in levy equal to
1% of the selling price or alternatively that the current buy-in levy of R28 400 be increased
with 10% to R31 240 per new registration as from 1 July 2016.
Resolution 9: That 8 new Capital Projects be approved – R2 060 000 for:
Project 1/2017 Paint perimeter wall – John Vorster Drive
Project 2/2017 Replace licence scanners
Project 3/2017 Replace 2 booms
Project 4/2017 Rejuvenation of road surfaces
Project 5/2017 Repaint roads after treatment
Project 6/2017 Traffic circle at Top Gate – Albert Street
Project 7/2017 Bridges walking trail
Project 8/2017 CCC Kitchen equipment
These new capital projects are presented for approval and funding out of the Capital
Reserve Fund and in line with the allocated cash provision as per resolution 10.
Resolution 10: That a cash provision of R2 060 000 be approved out of the CRF for spending against approved projects for the two-year period of FY2017 and FY2018.
The Board proposes that R2 060 000 be provided from the Capital Reserve Fund (CRF) for
approved capital projects for the rolling two-year period of FY2017 and FY2018.
Resolution 11: Adjustment of levy with R60
The Board considered a request from the Centurion Sports and Social Club (SSC) to
increase the monthly contribution with R24. A further increase of R36 is required to
assist in the capital program of the CCC for ageing capital infrastructure. These funds will
remain under the control of the CHOA Board.
Resolution 12: Note and confirm CHOA Penalty System
In terms of clause 21.2.3 of the Memorandum of Incorporation the amounts of fines and
other penalties shall be reviewed and confirmed at each AGM.
It is proposed that the penalty system be amended as highlighted in this pack.
3 Retiring of Chairman & end of term for two Directors
The Chairman will retire and two Directors have reached the end of their terms, they are:
JE de Klerk (Mr) Chairman
VFJ Blasl (Mr) Director (Available for re-election)
MSE MacDougall (Mrs) Director (Available for re-election)
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The Chairman and two Directors needs to be elected. The following nominations were
received:
For Chairman For Director
Mr. Heyno Smith Ms. Martie MacDougall
Mr. Vincent Blasl
Therefore, no elections will take place and will the positions be filled with the nominations
above received.
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AGENDA
20th ANNUAL GENERAL MEETING OF THE
CENTURION HOME OWNERS ASSOCIATION NPC
P.O. Box 66717, Highveld, 0169
Company registration number: 1995/013780/08
Wednesday 1 June 2016 at 18h30 (Registration from 17h30) at
The Centurion Country Club Time line
1. 18:30 Welcome/Apologies (Voting for Directors close at 19:00)
2. 18:35 Approval of the minutes of the AGM held on 4 August 2015
3. 18:40 Matters arising from the minutes of the AGM held on 4 August 2015
4. 18:45 Chairman’s Report
5. 19:10 Financial Report
• Resolution 1 – Consider and accept the FY2016 Financial Statements
• Resolution 2 – Note and ratify Director’s Remuneration
• Resolution 3 – Consider and accept the Auditor’s Report
• Resolution 4 – Appointment of Auditors
6. 19:20 Operational budgets
• Resolution 5 – Note and ratify the 10% increase in levies for FY2017
• Resolution 6 – Note and accept the FY2017 Operational Budget
7. 19:50 Capital Budgets
• Resolution 7 – Note and accept progress report on existing capital
Projects
• Resolution 8 – Approval for the amendment of the MOI to make
provision for a 1% Buy-in Levy or 10% increase on
current amount
• Resolution 9 – Approval of new capital projects
• Resolution 10 – Approval of the 2-year cash provision for FY2017 and
FY2018
• Resolution 11 – Adjustment of levy with R60
8. 20:20 Other Resolutions
• Resolution 12 – Note and confirm the Penalty System
9. 20:30 Marketing
10. 20:40 General
11. 21:10 Voting results
Election of Chairman and Directors
12. Closure
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MINUTES OF THE 19TH ANNUAL GENERAL MEETING OF THE CENTURION HOME OWNERS ASSOCCIATION NPC
HELD AT THE CENTURION COUNTRY CLUB ON 4 AUGUST 2015 AT 18:30
Directors: JE de Klerk (Chairman), SR Peddie, VFJ Blasl, MSE MacDougall and WE Nel
1. WELCOME AND APOLOGIESWelcome:The Chairman, Sias de Klerk (SdK), welcomed all present and thanked them for their attendance. Asthere was a quorum, (97 present and 18 proxies), he declared the meeting properly constituted.He extended a special word of welcome to the Board of Directors, Past Chairmen of the CHOA, PastPresidents of the Centurion Sports and Social Club, the General Manager, Jaco Venter and his staff andCouncillor Spoelstra.Apologies:Janet Kobrin, Hennie le Roux and Iain McFadyen
2. APPROVAL OF THE MINUTES OF THE AGM HELD ON 24 JUNE 2014Approval:SdK asked that the meeting approved the Minutes of the AGM of 24 June 2014.The meeting approved the minutes of the AGM held on 24 June 2015.Proposed by Willem de Kok (1664), seconded by Pierre Lombard (1469).
3. MATTERS ARISING FROM THE MINUTESChange in the Buy-in Levy StructureJan Small (1421) pointed out that the proposed change in Levy Structure as raised by him at theprevious meeting seemed to have received no attention from the Board.
SdK said that as the state of finances of the Estate was sound the Board did not deem itnecessary to increase the mandated levy or to change the Buy-in Levy structure. This mattercould however be revisited in future if necessary.
4. FINANCIAL REPORTFinancial Statements and Budget for 2014/2015Martie MacDougall (MMD) presented the Audited Financial Statements, a summary of the FinancialStatements and the 2016 Budget which were distributed to the members for their scrutiny.
Resolution 1 – Consider and accept the FY2015 Financial Statements MMD asked the meeting to consider and accept the FY2015 Financial Statements as documented. The Financial Statements were considered and accepted. Proposed by Willem de Kok (1664), seconded by Jan Small (1421).
Resolution 2 – Note and ratify Director’s Remuneration The meeting was asked to consider the remuneration amount. JE de Klerk, MSE MacDougall, SR Peddie, VFJ Blasl, PF Fourie each received R17 520 over a 12-month period. DS Stone received R5 840 over a 4-month period. MMD asked for the Director’s remuneration to be noted and ratified. The Director’s remunerations were ratified. Proposed by Jan Hiemstra (1667), seconded by Pierre Lombard (1469).
Discussion
SdK requested that the remuneration of Directors be increased in future in order to draw thebest candidates.
Willem de Kok maintained that Board members should serve on the Board for love of the causeand not for the sake of remuneration. He supported the current remuneration but suggestedthat Board members claim expenses.
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Jan Hiemstra said that an increase would be acceptable because increases in remunerationwould be controlled by the members.
Margaret Lee (1343) supported an increase in remuneration.
SdK said that a committee would be formed to look into this matter and to make a proposalafter careful consideration of the views of its members. The Board received a mandate toinvestigate and implement.
Resolution 3 – Consider and accept the Auditor’s Report C&S Audits Incorporated audited the Annual Financial Statements of the Centurion Home Owners Association and found that the Financial Statements fairly presented the financial position of the company as on 28 February 2015 and of its cash flows for the year then ended, in accordance with International Financial Reporting Standards for Small and Medium-sized Entities and in the manner required by the Companies Act of South Africa.
MMD requested the meeting to consider and accept the Auditor’s Report. The Auditor’s Report was considered and accepted. Proposed by Willem de Kok (1664), seconded by Pierre Lombard (1469).
Resolution 4 – Reappointment of the Auditors (C&S Audits incorporated) MMD asked for a proposal for the Auditors to be reappointed. C&S Audits Incorporated was reappointed as Auditors. Proposed by Willem de Kok (1664), seconded by Willem de Kock (1503).
5. OPERATIONAL BUDGETSResolution 5 – Note and ratify the 9.6% (average rounded) increase in levies for FY2016The 9.6% increase in the levy was implemented on the 1st of March 2015. MMD asked for a proposalfor levies to be ratified.The levy increase of 9.6% was ratified.Proposed by Jan Small (1421), seconded by André Roux (1549).
Resolution 6 – Note and accept the FY2016 Operational BudgetMMD Presented Operating and Capital Income & Expenditure – 2015 Budget vs. Actual and 2016Budget as was circulated to the members.
MMD asked for the FY2016 Operational Budget to be accepted by the meeting.The Operational Budget for FY 2016 was considered and accepted.Proposed by Paul Harris (1898/2), seconded by Philip Lourens (1701).
6. CAPITAL BUDGETSSdK produced the figures for the Capital Reserve Fund (CRF) which was used to cover the costs ofprojects as were circulated.
Project Progress FY2015
Upgrade Main Gate (3/2013) – Completed
Relocation of Garden and Storeroom Facilities (3/2013b) – Completed
Upgrade & revamp Top Gate (1/2014) –Ongoing
Special projects feedback
Security Upgrade (2/2015)
Vincent Blasl gave a video presentation of this project. It stated that our Estate had the best safety record of all Estates in the country. Personnel were dedicated. Security equipment was of the highest standard. Capital outlay was appropriate.
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Approach to Security was pro-active.
Recommendations were Not to stop investing in Security. To stay in touch with criminal trends. To keep in touch with latest Security technology. That residents had to take responsibility at all times for their Security at home.
Acknowledgements VB thanked all the Security staff as well as the Estate Manager for their hard work
and dedication and asked that residents contribute generously towards theChristmas bonus for Security.
This project was completed within Budget.
Flood mitigation upgrade (3/2015)SdK reported that all three bridges have been renovated. This project was completed.
Resolution 7 – Note and accept progress report on existing capital projects SdK asked for a proposal that the progress report on existing capital projects be noted and accepted. The progress report on existing capital projects was noted and accepted. Proposed by Jacques Wickens (2313/R), seconded by Edwin Nel (1916).
Resolution 8 – Approval of the 6% increase in the Buy-in Levy SdK asked for the 6% increase in the Buy-in Levy be approved. The 6% increase for the Buy-in Levy was approved. Proposed by Willem de Kok (1664), seconded by Lajos Vari (1878/1).
Resolution 9 – Approval of 7 new capital projects The following capital projects were presented for approval and funding out of the CRF.
1/2014 Additional approval for upgrading the Top Gate – R400 000
1/2016 Rewire Lodge fence – R50 000
2/2016 Replace HOA Vehicle – R150 000
3/2016 Gabions at river exit – R300 000
4/2016 Resurface Tennis Courts – R150 000
5/2016 Solar lights at strategic areas – R200 000
6/2016 Repair and repave at two gates – R200 000Discussion Some members requested that the priorities at the Top Gate be revisited before R400 000 expenditure would be approved.
SdK asked that the new capital projects to be approved. The additional R400 000 for Top Gate roof and guard house was not approved. The other projects were approved. Proposed by Philip Lourens (1701), seconded by Neels Erasmus (1841).
Approval of the 2-year cash provision of R2 100 000 for FY2016 and FY2017 Amendment: The projected expenditure for the 2-year spend was reduced to R1 700 000.
Resolution 10 – Approval of the 2-year cash provision of R2 100 000 for FY2016 and FY2017 SdK asked that the 2-year cash provision of R1 700 000 for FY2015 and FY2016 be approved. The 2-year cash provision of R1 700 000 for FY2015 and FY2016 was approved. Proposed by Philip Lourens (1701), seconded by Pierre Lombard (1469).
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7. OTHER RESOLUTIONSResolution 11 – Maintenance of road infrastructureSdK said that the Tshwane Metro Council (TMC) did not budget for any maintenance or upgrade ofinfrastructure in the Estate. The CHOA had to budget for this maintenance.Discussion
Some members agreed that we look after our own infrastructure.
Other members disagreed.They said that it would be wrong to do so as the TMC should not get away with raising taxesand giving less in return. To maintain our own infrastructure could only perpetuate itsattitude. They suggested that the CHOA exhaust every avenue to engage with TMC in thisregard.Some members said that the CHOA should withhold payment of rates and taxes.Others suggested that the CHOA seek legal opinion regarding an interdict or litigation.
Jan Hiemstra warned against litigation and withholding of payments. He also said that it wasinappropriate to mention a specific individual’s name with regard to possible legalrepresentation.
The meeting decided to form a sub-committee to investigate this matter and to give feedback and make proposals to the Board. The Board could in the meantime continue to make minor repairs. SdK asked that the maintenance of road infrastructure be approved. The maintenance of road infrastructure was not approved.
Resolution 12 – Note and confirm the Penalty System (changes recommended) The following changes were proposed:
Building alterations – Construction exceeding 12 months. Penalty 4 x monthly levy.
Failure to address nuisance pets or excessive pets. Penalty R500 p.m.
Faeces left on communal grounds and not picked up. Penalty R500.
The General Manager may at his sole discretion issue a penalty to any resident, visitor orcontractor who habitually transgresses any of the rules or verbally or otherwise abuses theCHOA or Security Personnel by an amount up to a maximum of R2 500.
JV asked that the Penalty System be noted and confirmed. The Penalty System was noted and confirmed with the changes as proposed. Proposed by Jan Hiemstra (1667), seconded by André Grove (1500).
8. GENERALMotion received from Lajos Vari (1878/1) - Towards a sustainable communityLajos Vari said that the earth was in great peril and that the Estate could do something small tocounteract this.SdK asked Lajos Vari to set up a committee to investigate sustainability possibilities and to makerecommendations to the Board.
Discussion/Questions SdK invited discussion/questions from the floor.
Joyce Harris (1898/2) suggested that a water purification plant be erected on the Estate tosupply the Estate with its own water.
Mention was made that residents did not always receive a sms when their visitors were at thegate and also that ID/Driver’s Licences were not scanned consistently. JV will attend to thisproblem.
Neels Erasmus (1841) requested that the paving at the walking trail be extended.JV to attend to it.
It was requested that a Reaction vehicle be available near the Top Gate at all times. JV to attendto this matter.
Freddy Hecht (1600) wanted to know if the Optical Cables could be used for Internet.JV said that it was used for Security only.
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A member enquired about Strategic Planning on the Estate.SdK invited Mr Tomes to view these at the CHOA Office.
A member enquired about measures that were envisaged to manage the flooding on the 2nd
and 4th fairways.SdK said that the flooding was there to stay and that the R150 000 contributed by M&T wasspent to alleviate the results of flooding on these fairways.
9. VOTING RESULTSElection of Chairman
Mr Sias de Klerk – 97 Votes
Mr Willem de Kock – 41 VotesSias de Klerk was re-elected as Chairman of the CHOA.
Election of Directors
Mr Willem de Kock – 41 Votes
Mr Philip Lourens – 88 Votes
Ms Dot van Ryneveld–84 Votes
Ms Belinda Winterstein – 58 VotesDot van Ryneveld and Philip Lourens were elected as Directors.
SdK welcomed the new members on the Board and thanked those members who stood foroffice but who were not elected.
Willem de Kok congratulated the members on their election.
Pierre Lombard said that it required lots of dedication and cool headedness to serve on theBoard.He proposed a motion of thanks to the Board and to Security.
10. CLOSURESdK invited all members to join him in the Res Bar for a drink.The meeting closed at 20:50
_________________________ SIAS DE KLERK CHAIRMAN: CENTURION HOME OWNERS ASSOCIATION
Minuted by A. Skinner
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Chairman's report for the 2016 AGM 1 JE de Klerk
Chairman's Report (2016 AGM)
Centurion Home Owners Association NPC (CHOA)
The CHOA is incorporated under the Companies Act as a non-profit company (NPC)
that has no share capital. It operates on a not-for-profit basis for the benefit of its
members (the home owners). It is tax-exempt except for income not obtained from
its members as levies.
Vision of Centurion Residential Estate and Country Club
The Board of Directors of the CHOA set specific goals for the estate to support the
vision that was communicated during the previous AGM, and can be summarized as
follows:
Security. The security of our estate was and is the first priority and we can
proudly claim that we have one of the best track records, if not the best, when
it comes to security.
Lifestyle. A harmonious and peaceful lifestyle was created on our estate and
all the role players played a significant role to achieve this.
Aesthetic standards. The upgrades and improvements that took place over
the last few years improved the aesthetic standards of our estate today.
Critical facilities and landscaping are in a good state and enhance the look
and feel of our estate.
Property Values. Our investments in property on the estate remains one of
our main focus points. Good progress has been made. We have one of the best
positioned estates in the country and the property values must reflect that.
Infrastructure. Our roads and bulk services from the municipality is a major
concern. The Board started to address this now.
Financial Position. The Board set the objective that the CHOA must be
financially sound, now and in the future. Strategic plans are in place to
ensure that the CHOA remain financially strong.
Capital projects. All the capital projects of 2015/2016 were completed.
FY2016 HIGHLIGHTS
Operating surplus
(After tax and depreciation) R 895 000
R 500 000 was transferred to the
CRF and R 395 000 was
transferred to Retained Income.
Retained income
(Reserve for operations) R2 009 000 Up 24,4% from previous year.
Objective is R3 500 000.
Revenue from BIL R1 248 800 R 56 000 more than budgeted.
Capital Reserve Fund (Buy-
in levy)
(Reserve for capital projects)
R1 806 000 Up from previous year from
R909 000.
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Chairman's report for the 2016 AGM 2 JE de Klerk
Capital expenditure from the
CRF
R 852 346 Additional R72 000 spent on
gabions due to erosion causing
risk to existing gabions on the
16th fairway bridge.
Audit Report Unqualified
Forced entries into homes
(no.)
0
FY2016 LOW LIGHTS
Perimeter fence breached 0 No forced entry
Unforced entries into homes
(no.)
5 Some stolen items recovered
OTHER STATISTICS
New property sales
registered
57 Same as previous year
Average property selling
price
R3 609 000 Up 6,5% from previous year
Average property selling
price R/m² R10 500 Up 10,5% from previous year
Number of Buy-in Levies 46 1 Up from previous year
Plans submitted for
alterations 41 Up from previous year
Rule transgression penalties 55 Down 44% from previous year
Warnings issued 62 Down 7,5% from previous year
Financials
The CHOA can report that the Operating Budget is well under control. The
conservative approach in the budget regarding income resulted in a positive
deviation every year and there are strict controls to ensure discipline on all
expenses. The balance sheet is healthy and is improving every year. It is a high
priority for the board to ensure a strong balance sheet.
The capital expenditure the last few years had the result that the main facilities of
our estate is of a high standard and the focus can now move to other areas of concern
to the board like the roads and the clubhouse. The operational profit ended in a
surplus for FY2016. The reserves (retained income) increased by 24,5% but we are
still behind our stated goal of the equivalent of three months of levy income. The
Board remains committed to achieving this goal and resolutions will be put to the
vote at the AGM to support this specific objective.
As stated in the chairman’s report last year, roads in our Estate are deteriorating
each year and it remains a serious concern to the Board. It is the conclusion of the
Board that it has become necessary to include the upgrade of our roads in the capital
budget. We cannot continue to stand by and see how the roads in the estate are
becoming a disgrace to the estate. The decision taken last year to start spending
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Chairman's report for the 2016 AGM 3 JE de Klerk
money on critical areas of the roads, mainly to protect the roads from major damage,
is simply not enough. The board did as promised, put pressure on the local council
to upgrade the estate roads, but with no success. That is why a resolution is going
to put forward for consideration to start the process to prolong the life circle span of
the roads.
In spite of difficult economic conditions the payments of levies remain a very positive
point. There was no legal action at the end of February 2016 against any home owner
regarding outstanding levies and levies received in advance amounted to just over
R592 000. A special word of thanks to our members for the exceptional commitment
shown regarding payment of levies and to the team that ensures this achievement
every year.
The levy increase was investigated during the year by the board, and it was decided
to increase the levies for FY2017 with 10% (which was in line with the Board’s
mandate). Members will be requested to ratify this increase at the AGM.
The success and improvement of the estate in its totality was always part of the
Board’s strategic thinking, and it became evident that, due to the economic down
turn in 2008 and again the last few years, the social levy that the CHOA pays to the
SSC must be increased to support the SSC’s operating budget. Corporates also cut
back on golf memberships when due to the economic pressures, they need to cut back
on operating expenses. The sporting pattern in SA also changed. The popularity of
golf is on the decline and other sports like mountain biking is on the increase. The
CHOA levy and the social levy were historically very low considering what the estate
can offer to home owners and the standards that we maintain. . The Board
recommends an increase of R250 000 (R24/household/month) for FY2017 to be
implemented from June 2016 (proportionally) to support the operating budget of the
SSC.
Capital Reserve Fund (CRF)
The income for the FY2016 was R1 248 800 against a budget of R1 192 800.
Expenses for FY2016 came in at R852 346 against a budget of R950 000.
The balance of the CRF stands at R1 806 000 after the Board transferred R500 000
from the operating surplus.
The Board decided to recommend to increase the Buy-in levy for the FY2017 with
1% of the sales price or alternatively 10% increase on the current amount of R28 400
that amounts to R31 240.
Capital expenditure
The capital projects budgeted for in FY2016, were completed successfully. There are
no new major project to be approved for the next two years. The capital projects on
the list for approval are based on maintenance and technology.
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Chairman's report for the 2016 AGM 4 JE de Klerk
The upgrade of the top gate was completed successfully and the objectives that were
set out for these projects, as requested at the previous AGM, were met.
A rolling two year capital project plan, including new projects, is part of this
documentation and is being submitted for the approval of the members.
In addition to the above, the Board recommends that the SSC is assisted with capital
investments limited to the clubhouse. The SSC will be self-sufficient operationally
should the recommended increase in social levy be approved. It is however necessary
that the CHOA continue supporting the SSC to fund capital projects to upgrade
facilities within the clubhouse. The aim is that all facilities on our estate must be at
an acceptable standard.
Security
We report with great pleasure and satisfaction that the security at the estate
remains one of the biggest success stories of all estates in the country. Thanks must
go to all security personnel for their pro-active actions to ensure that our estate is
not vulnerable to criminals.
In total we had 5 unforced incidents. Our security team managed to resolve all the
incidents. Some stolen goods were recovered and arrests were made.
By comparison, we had 5 incidents (forced and unforced entries) during the previous
financial year (FY2015).
Resident satisfaction
The CHOA continued with the performance evaluation system for our staff. This
again included a resident satisfaction survey that was sent out in January 2016. We
used the web-based Survey Monkey and invited all residents to participate. We
received 262 responses which represents a return of about 30%. The results again
generally indicated a positive attitude in the Estate with a high level of satisfaction
regarding the services provided by the CHOA. The overall weighted average on all
responses from all questions amount to 82.2%, this is 0,6% lower than the previous
year. Various aspects that transpired from this survey have and are still receiving
attention.
Sport and Social Club
The financial statements of the CCC were distributed to all members before the
AGM of the SSC. There is a marked improvement in the financials of the SSC taking
exceptional items into account. To name one, bore holes were drilled at a
considerable cost to ensure water for the golf course.
The success of the CCC is vital for the success and sustainability of the Estate in the
future. The macro and micro economy and tendencies of golf as a sport means that
CCC needs the assistance of the CHOA as discussed under Financials and the
capital budget.
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Chairman's report for the 2016 AGM 5 JE de Klerk
As stated in last year’s report, the newly elected Management Committee of the SSC
started to implement a turn-around strategy with good results. The look and feel of
the club has been changed to ensure that the club is friendlier to all members, golf
members as well as all home owners. The new pizza area was introduced with great
success. There are more changes in the pipe line that will improve the general
service to all home owners.
Personnel
The success of the CHOA is mainly determined by people and this estate is blessed
with a group of excellent staff members.
Our General Manager, Jaco Venter, with his dedication and commitment, is an
example for the rest of the staff. I would like to thank each and every staff member
for their dedication and loyalty in the way that they fulfill their daily tasks.
Board of Directors
Apart from various sub-committee meetings, official Board meetings took place on a
monthly basis and were always well attended. Two Board members are at the end
of their two year term. The position of Chairman also becomes vacant due to the
fact that I am relocating to the Cape later in the year.
Outlook
The outlook of the Estate remains positive and will always be an address of
aspiration. The number of property sales each year is absolute proof of this. It is
important to note that property sales in FY2016 was just over R200m, about 46 new
families moved to our estate, again, it is clear that our estate is a very popular
destination when people buy property. The track record of the estate regarding
management, financial position, security and physical assets is of a high standard
and there is no reason to believe that the state of affairs will change. Owners and
residents can look forward to a secure and enjoyable stay in their Estate.
JE de Klerk Chairman
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Sub Budget Sub Actual Sub Budget
A 15 524 16 149 17 278
1 LEVIES 15 064 15 192 16 620
2 REGISTRATION FEES 209 357 261
3 SERVICE FEES 47 105 79
4 PENALTIES IMPOSED - 23 -
5 SECURITY ACCESS CONTROL & SUNDRY INCOME 65 145 71
6 INVESTMENTS 139 327 247
B 14 786 14 900 16 618
1 557 551 636
2 1 193 1 123 1 252
3 7 447 7 250 8 124
4 4 186 4 231 4 635
5 1 403 1 745 1 971
5.1 Public Relations & Community Affairs 101 113 215
5.2 961 1 068 1 351
5.3 88 175 209
5.4 145 290 90
5.5 Recycling 108 99 106
C OPERATING surplus before the items listed below 738 1 250 660
1 76 123 52
2 3 50 0
3 102 182 108
4 Contingency 451 - 498
5 Transfer to capital reserve fund 100 500
6 Transfer to CCC reserve
D OPERATING surplus for the year 6 395 2
SECURITY OPERATIONS
MANAGEMENT & ADMINISTRATION
GARDEN & RIVER MAINTENANCE
R'000
2017 Budget
R'000 R'000
2016 Budget 2016 Actuals
Operating and Capital income & expenditure - 2016 Budget vs Actual - 2017 Budget
Operating
REVENUE:
EXPENSES:
INFRASTRUCTURE MAINTENANCE
MISCELLANEOUS
Municipal responsibilities
Depreciation
Social Membership CCC
Minor Projects (R10 000 - R30 000)
Interest paid
Taxation
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Sub Budget Sub Actual Sub Budget
E 1 193 1 249 1 331
F 650 852 1 250
Project:
1/2014 Top gate upgrade 564
1/2016 Rewire Lodge fence -1 additional energizer 50 58
2/2016 Replace HOA vehicle (capitalized) 150
3/2016 Gabions at river exit 300 300
4/2016 Resurface tennis courts 150 158
5/2016 Solar lights at stategic areas 200
6/2016 Repair/repave paving at two gates 250
7/2016 Gabions additional (17th) 72
8/2016 CCC Kitchen equipment 500
G CAPITAL surplus/(shortfall) for the year 543 397 81
H TOTAL INCOME/(EXPENSE) FOR THE YEAR 549 792 83
R'000 R'000 R'000
Operating and Capital income & expenditure - 2016 Budget vs Actual - 2017 Budget
2017 Budget
REVENUE: Buy-in levy
EXPENSES:
Capital 2016 Budget 2016 Actuals
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CHOA - CAPITAL EXPENDITURE AND FUNDING
STATUS OF PROJECTS
DATE
Year PTDFY 2017
(Mrc16-Feb17)
FY 2018 (Mrc17-Feb18)
CAPITAL RESERVE FUND (Buy-in levy)
COMPLETED:
1/2014 600 000 564 402 564 402
1/2016 Rewire Lodge fence -1 additional energizer 50 000 58 077 58 077
2/2016 Replace HOA vehicle 150 000 162 699 162 699
4/2016 Resurface tennis courts 150 000 157 867 157 867
COMPLETED: FOR RATIFICATION
7/2016 Gabions - additional (16th) 72 000 72 000 72 000
IN PROGRESS:
3/2016 Gabions at river exit 300 000 300 000 Aug 2016
5/2016 Solar lights at stategic areas 200 000 200 000 Sep 2016
6/2016 Repair and repave paving at two gates 250 000 250 000 Sep 2016
NEW PROJECTS FOR APPROVAL:
1/2017 Paint perimeter walls 300 000 300 000 Jul/Aug 2017
2/2017 Replace license scanners 240 000 240 000 Oct 2017
3/2017 Replace two booms 40 000 40 000 Oct 2017
4/2017 Rejuvenation of road surface 500 000 500 000 Apr 2017
5/2017 Repaint road after treatment 250 000 250 000 May 2017
6/2017 Circle at top gate 150 000 150 000 Aug 2017
7/2017 Bridges walking trail 80 000 80 000 Jul 2017
8/2017 CCC Kitchen equipment 500 000 500 000 Jul 2016
2 132 000 1 015 045 1 015 045 1 250 000 1 560 000
Traffic calming measures to ensure the safety of all road users at the
Albert street gate. Tshwane's approval received
Replacing/upgrading of kitchen equipment
Replacing the stepping stones with a wooden walkway (after 16th
fairway) due to very slippery and dangerous conditions in winter and
rainy seasons.
AGM 2016
Project
No.PROJECT DETAILS
AGM
Approved
Budget
EXPENDITURE FY20162016 AGM
Approval
Required
Target
completion
date
Comments
CASH FLOW
Update & revamp Top Gate facility as approved Completed
Repair paved areas at gates where sagging has taken place.
Replace current gabions that was damaged during floods and
reconstruct river exit for better flow during floods to protect security
infrastructure
Completed - capitalized
Completed
Extra lightning to manage internal risk
Completed
Repaint John Vorster wall due to damp and poor plastering in certain
area's
Replacement of license plate scanners due to excesive use (life
expentancy +- 3 years)
Replacement of booms due to wear and tear (life expectancy +-7 years)
Completed - Extensive erosion causing risk to existing gabions and
bridge embankment on 16th fairway bridge
The tar surface has been in use for 20 years and is becoming dry and
brittle. This project will seal all cracks and rejuvenate the road surface to
prevent stone loss and prolong the lifespan with 4-7 years
Repainting of the road markings after rejuvenation of the road surface
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CAPITAL RESERVE FUND (CRF)
2016/17
PROPOSED LEVEL OF BUY-IN LEVY AS FROM 1 July 2016
PROJECTED BALANCES OF CRF: 29-Feb-16 28-Feb-17 28-Feb-18
Balance 909 439 1 805 893 1 887 293
Total sales per annum: 46 42 42
Net inflow of funds from Buy-in-Levy based on sales 1 248 800 1 331 400 1 512 000
Cost of approved Projects (780 346) (750 000)
Cost of Projects for approval (72 000) (500 000) (1 560 000)
1 305 893 1 887 293 1 839 293
Transfer from operational retained income 500 000
Balance of CRF 1 805 893 1 887 293 1 839 293
TARGET LEVEL of CRF is R1m
The CRF is funded by means of an amount levied on new property transactions and is referred to as the Buy-in Levy.
The quantum of this Buy-in Levy is to be determined annually at the AGM.
In terms of the MOI of the CHOA NPC, a Capital Reserve Fund (CRF) must be maintained for the funding of projects
required for the maintenance and upgrading of the Estate.
1 % of Sales price as per purchase contract
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BUY-IN LEVY (BIL) AMENDMENT – ANNUAL INCREASE CHANGE TO 1% OF
SELLER PRICE
As previously requested during the 2014 AGM, to avoid a long annual debate at the
AGM every year and to address the capital need, the Board thoroughly investigated
this matter and came back with a proposal to amend the MOI to make provision for a
1% BIL based on the selling price that will have a positive effect on the Capital
Reserve Fund and escalating capital needs.
Currently the MOI reads as follows:
23.2.1 The amount to be contributed by new members pursuant to the Capital
Reserve Fund shall be revised on an annual basis in accordance with the
recommendation of the Board of Directors and be subject to the approval of the
Association at its Annual General Meeting. The objective of the annual review
shall be to maintain the Capital Reserve Fund at an appropriate level having
regard to factors such as inflation.
23.2.3 In the event of any stand being sold, alienated or otherwise disposed of,
the new owner shall be obligated to pay the Capital Reserve Fund
contribution applicable at that time. The ex-owner shall not be entitled to
a refund of the Capital Reserve Fund contributions paid by him.
If this resolution is passed, Par. 23.2 of the MOI will be amended to read as follows:
23.2.1 The amount to be contributed by new members pursuant to the Capital Reserve Fund shall calculated at 1% (one percent) of the purchase price as is noted in the duly signed and binding purchase and sale agreement entered into by the exiting member and prospective member.
23.2.3 In the event of any stand being sold, alienated or otherwise disposed of, the new owner shall be obliged to pay the Capital Reserve Fund contribution calculated at 1% (one percent) of the purchase price as is noted in the duly signed and binding purchase and sale agreement entered into by the exiting member and prospective member. The ex-owner shall not be entitled to a refund of the Capital Reserve Fund contribution(s) so paid.
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PROPOSED AMENDED CHOA PENALTY SYSTEM 2016/17
Transgressions/Offences Penalty
1 Urinating in public R300
2 Fire in public areas and on building sites R500
3 Non-registered worker/Illegal immigrant on Property R750 per worker
4 Contractor workers on-site after hours & weekends R1500 per case
5 Workers wandering around off their building site R200 per worker
6 Damage to curbs, light poles, neighbouring stands, plants, etc. Cost of repairs plus 50% administration
fee
7 Speeding, ignoring stop signs, reckless driving, unlicensed vehicles (quad bikes, golf
carts), unlicensed driving and all other traffic violations R300 per offence
8 Dumping of building rubble on the golf course and common areas R1000
9 Untidy building site, excessive rubble R300
10
Building Alterations – construction exceeding 6 months Double levy
Building Alterations – construction exceeding 9 months Triple levy
Building Alterations – construction exceeding 12 months 4 x levy
11
Continuous contraventions that are not rectified within reasonable time will attract a
monthly fine
11.1 Failure to maintain property in acceptable condition R300 p.m.
If repeated 6 months - Double levy
If repeated 12 months - Triple levy
11.2 Failure to rectify unacceptable colour schemes R300 p.m.
11.3 Failure to remove or rectify unacceptable structures R300 p.m.
11.4 Failure to address nuisance pets or excessive number of pets R500 p.m.
12 Gardens that are neclected
Cleaning cost + R200
13 Parking of trailers/caravans/boats on sidewalks or in driveways Admin fee of R50 and if repeated 3
times R300
14 Any motorized vehicles on golf course without permission (excluding golf carts used on
paths) R500
15 Illegal entry to the Estate R350
16 Activities that causes an aggravation and a nuisance to other residents/ Country Club may
be penalized at the discretion of the General Manager or Safety & Security Manager R500
17 Faeces left on communal areas and not picked up R500
18
The General Manager may in his sole discretion issue a penalty to any resident, visitor or
contractor who habitually transgresses any of the rules or verbally or otherwise abuse the
CHOA or Security personnel by an amount up to a maximum of R2 000 R2500
After 30 days, unpaid penalties will be added to levy accounts where it will attract interest
Appeals against any penalty issued may be directed to the Board of Directors (in writing).
June 2016
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20th ANNUAL GENERAL MEETING OF THE
CENTURION HOME OWNERS ASSOCIATION NPC
of P.O. Box 66717, Highveld, 0169
Company Registration Number: 1995/013780/08
PROXY
I, ______________________________________________________________________________________
(Please print full names)
Stand Nr. _________________
Address ____________________________________________________________________________
____________________________________________________________________________
being a member of the CENTURION HOME OWNERS ASSOCIATION NPC, hereby appoint :
M___________________________of_________________________________________________(address)
Or falling him/her
M___________________________of_________________________________________________(address)
as my proxy to vote for me and on my behalf at the Annual General Meeting to be held on 1 June
2016 at the Centurion Country Club, or any adjournment thereof.
SIGNED THIS __________ DAY OF ___________________ 2016.
___________________________
SIGNATURE
NOTES:
1. A member entitled to attend and vote is entitled to appoint a proxy to attend, speak and vote on his behalf, and such proxy needs not also to be a member of the Centurion HOA.
2. All proxies must be handed in at the entrance at least 30 minutes before the commencement of the meeting. 3. Proxies may not be used for voting purposes of Chairman and Directors.
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