Village Funding
Village finances are administered by our management company, which is currently Lendlease. There are several sources of funds, each with a different purpose.
In addition our Social Committee collects, and in consultation with our Residents' Committee distributes, excess proceeds derived from social activities they organise for the village.
- Trust Account
- Refurbishment and Improvements Contribution
- Amenities Fund
- Finalisation Fund
In addition our Social Committee collects, and in consultation with our Residents' Committee distributes, excess proceeds derived from social activities they organise for the village.
The time value of money
The 'time value of money' refers to the effect of inflation: money held loses value. From one year to the next any money held will buy less at the end of that time than it would have at the beginning of that time. Putting money in an interest bearing account can only partially mitigate this effect, particularly in regard to our village. First, even if the interest rate equals the CPI rate there is tax to pay, which reduces the value of the interest received. Second, the types of things saved money would be spent on in our village are going up in cost faster than the CPI. It is therefore not financially prudent to keep money aside for no specific purpose. How much money is put aside is therefore based on an educated assessment of the likely in-flows against the time-frame and urgency of proposed refurbishment or improvement works.