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Fairfield Rent Increases 2010/2011

As you will be aware, the Co-operative usually increases your rent and service charges annually. We have a duty to consult with tenants over the proposed level of increase and the justification for that. In addition we offer tenatns the opportunity to give feedback which will be considered by our Committee of Management at February’s Committee meeting in two weeks time where a final decision will be made on the 2010/11 increases. To allow open consultation in addition to this letter we will be making a presentation at the Fairfield Housing Co-operative Offices at 6pm on Monday 22nd February 2010 to which all tenants are cordially invited. This will allow you to make your views known directly.

Rent Increase

At present it is proposed that 2.4 % will be the level of increase required. This mirrors exactly the rate of inflation in December 2009 and is 1% percent less than previous years which has seen an increase of inflation plus 1% applied.

There are several key factors in relation to the overall expenditure of the Co-operative which increase or decrease annually and at certain points throughout the year. In addition, we have to ensure an adequate surplus is made for future capital provisions in relation to maintenance costs. You must also bear in mind the significant expenditure on capital works during the last three years.

Rent increase factors 2010/2011

  • Inflationary Increase and VAT increases in repairs and maintenance contractor costs.
  • Inflationary increases to overhead costs.
  • Below inflation cost of living salary increases at 2.25%.
  • Capital costs relating to bathroom replacements, 50 programmed for 2010/2011.
  • Reduction in some existing loan payments due to low interest rates.
  • Increased costs of new borrowings relating to new developments.
  • Generation of savings and reduction in expenditure in some areas
  • Requirement to generate surplus to fund future investment in existing stock to ensure compliance with Scottish Housing Quality Standard.
  • Over £0.085m investment in all housing stock over the three year period 2007-2010 which saw complete kitchen renewal, gas boiler replacement, commencement of bathroom replacement, and digital TV upgrades to almost all of our properties.

Proposed activity 2010/2011

  • Bathroom replacement continuing as part of a rolling programme in Angus Court and Tulloch Road.
  • Replacement of hard wired smoke alarms various phases.
  • Completion of 16 homes in Leonard Street in November 2010.
  • Completion of second phase of 27 homes in Muirton between Sept 2010 and January 2011.
  • Provision of dedicated Money Advice Worker one day per week.
  • Maintaining current high satisfaction levels with Co-operatives services.
  • Continuation of free grass cutting for elderly and disabled residents in Fairfield.
  • Continuation of Toolkit Training apprenticeship scheme.
  • Development of further homes out with Fairfield including Scone, Errol Crieff and Perth City Centre.

Service Charge Increase

We have comprehensively reviewed the way we provide estate management services with a view to continuing to provide quality services for all residents 2010/11 will see the following actions;

All stair cleaning services will continue to be contracted out to a local private cleaning contractor. Generally satisfaction levels have been high overall and cleaning has been carried effectively on a weekly basis.

Bins will be washed and desanitised at least twice a year by a local private contractor.

Estate staff will be expected to work hard to enhance Fairfield and maintain an excellent level of quality at all times.

General cleaning, litter picking, free bulk item uplift, stair lighting maintenance, voids clearance and small repairs will continue as core caretaking duties.

Communal Garden areas will continue to be maintained by external contractors.

Grass cutting will be offered to residents with gardens at the same charge as last year with a one off charge covering the whole season. Free grass cutting will continue to be offered to pensioners and registered disabled. If you were on the scheme last year you don’t have to do anything, if you feel you are eligible now contact the office.

• It is proposed that Service Charges will also increase by 2.4%.

Summary

This year we all face harsh economic conditions and we feel that an inflation only increase is fair and allows for adequate funding for the Co-operative. If you feel differently to that and wish to let us know that you have several options available to you.

You can make your views known at the meeting on Monday 22nd February, or complete and return the form below, you can write to us at this address, or you can e-mail me at grant@fairfield-ha.org.uk. Please do this by Tuesday 23rd February so your views can be considered by the Committee at their meeting on the 24th February where the final proposals will be considered.