This article is for informational purposes only and does not constitute professional advice.
Always seek the guidance of a qualified expert for specific concerns.
First Port like to make it difficult to understand what you are paying for. The budget shows all sections and a simple breakdown of what the costs are expected to be for the year.
This article should help you understand the budget document and how to work out what First Port are charging you for.
The budget document is broken down to different phases and sections. It will show the budget for the whole development but you will only be paying a percentage for the phases/sections that apply to you.
First You Need To Understand Your Invoice
You will first need to look at your last years invoice to work out which items you pay for and how much you pay towards each section.
- Dates - The dates which the budget is for. Remember you pay in advance based on the budget
- Schedules/Phases - These are the schedules that you pay for. You will not pay for all of the schedules in the budget just the ones that apply to you. For example if you live in phase 2A you will not pay for hedge cutting in phase 1A
- Breakdown - This is shows the breakdown of what the total cost for each schedule is made up from. Without submitting a Section 22 Notice you will not get a more detailed breakdown.
Note that Management Fees, Account Preperations Fees & Audit Fees are what are paid to First Port for managing the estate and not to contractors.
Contractor Fees are normally bunched into "General Maintenance", gardening costs are under "Grounds Maintenance" - Schedule Totals - This is the total cost of all the items in the schedule. This figure is then shared out amoung all the people that contribute to this schedule by a percentage.
- Your Percent - This is the percent you pay towards that total cost of the schedule
- Your Schedule Total - This is the total amount you pay towards that schedule. it is calculated by the schedule total multiplied by your percent
- Your Total - This is the total amount you have to pay in advance made up of all the schedule totals that you contribute towards
Understading The Budget
The budget is broken down into schedules. A good description of what each schedule means in in the begining of your budget document so should not need to be repeated here.
Do not forget a budget is only an estimated cost for the year. Once final signed off accounts have been produced any shortfall will also be invoiced to you at a later date.
- Date - The Year and date of the budget
- Schedule - Which area this relates to. You will likely be paying for multiple schedules so check your invoice to see which ones applly to you.
- Total Cost - The total cost expected for this item on the schedule. This will be made up of all the sub sitems listed.
- Reserve Funds - First Port are ment to keep reserve funds which are designed to build up over time to cover large future expenses e.g Road resurfacing, Draininage Repairs and other large expenses.
- Total Costs - This is the figure that you will pay a percentage towards