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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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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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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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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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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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