Martyn has asked me to prepare this introduction to his November 2012 newsletter. We had hoped at this stage to give more definitive news regarding the future of Golfe Santo Antonio (GSA) following a creditors’ meeting which was scheduled for the 14th Nov but unfortunately, due to the National Strike, this meeting was deferred until 6th December. In the meantime GSA are continuing to provide essential services, and QDM seemed, during my brief visit earlier this month, to be in generally good shape. As I hope you are aware, due to the efforts of your Committee, QDM is the only resort within Vigia, which has been able to agree a budget based upon actual expenditure incurred. David Curtis’ note, (see link at right) provides further details. It is important that Owners appreciate that budgeting on the basis of actuals does mean that quarterly payments for the Community Urbanisation Charge will vary. Again there is further clarification in David’s report. In my comments I would like to focus on the issue of outstanding payments of both C&U Charges and Reserve Fund contributions from a number of Owners.
That these payments be kept up to date is critical. Vigia’s cash flow depends upon these to maintain services and salaries to a group of very loyal staff on whom we depend. As you know we have a small group of perpetual non-payers. We believe the Administrator is currently in the process of taking legal advice to recover unpaid debts from these individuals. Additionally there are a few Owners, perhaps who are concerned about the long-term viability of Vigia, who seem reluctant to pay but have always paid in the past. Can I remind them that quarterly payments in arrears means that the payments they are being asked for represent the costs of services already provided, not a deposit against services still to be delivered. The only exception to this is that David Curtis is recommending (subject to safeguards) an additional €2000 be added to the 3rd quarter payment to ensure funds are available to undertake remedial infrastructure work currently outstanding, and of which your committee are aware and agree need to be done. Even taking this into account thanks in no small part to his efforts the total C&U costs to Owners in 2012 is expected to be lower than 2011 despite significant rises in IVA (VAT) being levied by the Government.
Reserve Fund Payments
This fund is an essential part of our financial planning. To re-iterate the fund is held in a ring fenced account and cannot be used without the agreement of your OA. Furthermore Vigia have agreed in principle that an OA Committee member be a joint signatory on this account to provide yet further protection. The fund is designed to meet unexpected costs, and in the current economic climate pay for goods and services where external providers are not willing or unable to deal with Vigia/GSA.
At €100 per house the cost is not huge but provides us with an important source of reserve funding. Vigia maintains a list of outstanding payments and will be providing us with a link to their database. It is important that owners check their status as errors have arisen in the past. It will also be evident that some of the outstanding payments relate to fractional ownership properties.
The position here is that the Reserve Fund payment is charged to the joint house account. Fractional owners DO NOT need to send additional funds, but Vigia require ALL the Owners within each property to confirm that payment can be made from this joint account to the Reserve Fund. This rule is clearly designed to protect joint owners and ensure that debits can only be made from the house account when all have confirmed agreement. There are properties where one or two owners have given approval but others have not. This relates to 2011 as well as 2012 and may well mean that you are in arrears despite having authorised payment in the past.
We would be grateful if all fractional Owners could send their individual agreements to these debits being actioned to Eliseu Romba at firstname.lastname@example.org .
Even if you have already authorised payment it is possible that but due to the departure of two members of staff earlier in the year Vigia are unable to access these approvals, so please DO SO AGAIN if your property is shown on the list as having payment outstanding. Thank you.
Finally I would like to thank our two resident Committee members Martyn Uttley and David Murphy. They have willingly committed an enormous amount of work, and time in discussions and meetings with Vigia, other Owners Associations and the Administrator, to protect the interests of all QDM Owners.