directors, is taking decisions for the good of
all.’
Although the discussion with Jeff and Andrew
ranged across topics as diverse as wildfires,
the removal of invasive alien vegetation,
and the estate’s relationship with the local
municipality and communities on the borders
of the estate, they both pointed out that all of
these concerns are significant in its financial
planning process.
‘These things are all part of it, because we
assess every single aspect of the estate,
and that’s where we’re coming from,’ says
Andrew.
‘It’s
about
continuous
training,
continuous evaluation of our programmes,
and continuous evaluation of where we are,
St Francis Links — Clubhouse
and where we’re going.
‘It’s like maintaining an asset: if you don’t
PLANNING PROCESS like sustainable water and electricity supplies maintain it, it’s going to cost you so much
Both management and the board of directors – even though these costs remain contained, more later – so what we do is we pre-empt
involve themselves in the estate’s annual since their water and electrical consultants that by doing the planning and the evaluation
scenario planning process. ‘Things change, have been involved with the estate since and the training before it becomes a problem.’
and this makes you re-evaluate your 25-year inception.
BOTTOM LINE
plan,’ says Jeff. One example: energy supply.
The estate is currently studying various Both Jeff and Andrew made the point, though, Clearly, as St Francis Links demonstrates,
options for offsetting the rising costs of that management’s tasks include keeping a well-conducted, well-maintained financial
electricity. a continuous watch on trends in everything reserve study exercise will strengthen the
from tourism (‘When Cape Town went into standing of your estate, and having an
For its financial projections, though, the St drought, we saw a drop in tourism – and if appropriate,
Francis team works on a 10-year basis. the rand goes weaker, trips will turn domestic, reserve fund will meet many of the legal,
judiciously
managed
capital
and might even grow’) to fibre to the home professional,
‘We start over every year: we kick a year out, (‘We watch what’s happening, ask around. It’s of your homeowners association, and also
put in the replacement costs for the 11 th year, all about the backbone, and if the Eastern enhance the resale values of the individual
and modify our requirements accordingly,’ Cape’s not geared for it, it makes no sense for properties on your estate.
says Jeff. us to factor it in. Yet!’)
CONTINGENCY
These
trends
will
inform
decisions
management will have to take in the future
requirements includes deciding the size of the – and therefore inform its planning for its
contingency amount required to cover ad hoc financial reserves.
a
holistic
view
of
the
fiduciary
responsibilities
that
estate’s
Taking
and
expenses, or increases in the specifications of
‘It’s a continuous evaluation of where you are
items like security technologies.
and what’s happening internationally, and
‘We used to work on a 25% contingency, but whether there is a better way of doing things
we’ve actually been able to reduce that to – because we have limited resources, and it’s
10%,’ says Andrew. ‘Because there are so many up to us to make sure that we utilise those
risks involved, the size of the contingency resources to the maximum,’ says Andrew.
depends on how often you evaluate it: if you
Jeff makes the point that St Francis Links is
monitor it closely, you can reduce it.’
ultimately in the business of community.
LIMITED RESOURCES
in its ‘We have to make decisions based on the
costs of good of the entire estate – and fortunately
consultants required for studies into things everyone on our team, every one of our
St
Francis
operational
Links
makes
budget
for
provision
the
St Francis Links — 17th par 3
51
INDUSTRY JOURNAL
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stfrancislinks.com