Increase in the tariff of the Maltese DzKSU in Malta and Luznava
The municipality of Rēzekne Municipality has received the questions of the residents of Loznava parish and complaints regarding the decision of a multi-apartment building manager – a local government capital company Maltese Household Company (DzKSU) – to increase the management fee by 1 January 2016. We called for a conversation Maltese JKSU Board member Annu pinku and representative of shareholders, head of the Maltese parish administration Vitali antsin order to explain why it was necessary to increase the tariff, how the tariff alignment with the population was carried out, how much management fees and other topical issues would be in the future.
At first, tell me how the management fees are formed?
The procedures for calculating the management fee shall be determined by the relevant regulatory enactments. It is subject to a special formula, which is proportionately comprised of the total area management expenditure and the maintenance expenditure of the residential house, which is used to carry out more works. The management costs are included in the maintenance costs of the house (water, sewerage, maintenance and servicing of the heating system), administrative expenditure (finance, accounting, lawyer, maintenance of administrative buildings etc.), as well as payments and taxes laid down in the law. We don't make any more than we do. In legislation, a separate section is intended for expenditure relating to, for example, the cleaning of grass, the cleaning of snow or the cleaning of stairways, which is not included in the tariffs for the management of multi-apartment buildings in Malta and Luznava because the population had expressed the wish that they would do so themselves. The tariff is lower, but at the same time there is a situation in which flowers are singing under the windows, while others, the staircase, are clean and cleaned in some houses, but do not know where to make their feet.
What is the average management fee in Malta and Luznava today? Is it the same?
We'll take an example of an average large multi-storey house in Malta, a school street 36. To date, the homes of the house paid 0.14229 EURO per square metre, now with an increase of 0.16179 EUR/m2. This is one of the cheapest houses, but it is generally expected that the average cost per square metre in Malta will be around 0.20 EUR/m2, while at Luznava, in the non-insulated houses, 0.25612 EURO per square metre was paid. It should be noted that residents who live in a warmed home have different bills because the insulation costs are covered. The management fee varies slightly from one house to another and also in Malta and Luznava as a whole. As seen, the Maltese tariff is lower because the houses have been built up since 1997, so we can afford the biggest jobs from each house, while at the same time collecting less management fees. A different situation is in Luznava, where the stockpiling started only with the acquisition of buildings five years ago. The people of each house can look at their home tariff for what purpose money is spent, as much as spent – it is all publicly available information to be viewed on the company's website www.maltasdzksu.lv.
Why was it decided to increase the management fee?
The management fee was increased in accordance with Cabinet Regulation No. 1014 of the Cabinet of Ministers for the calculation of management fees, “the procedures for calculating the fee for the management and management of the residential house” (9.12.2008), as Paragraph 7 OF THE CABINET Regulations states that, among all other costs related to the management of the house, domestic management and legal services are also included – thus the law provides such state units. So far neither the manager nor the lawyer did, even though these specialists were in all the companies in this area. In addition, as we have a small state (excluding plumber, fuel and auxiliary workers, we have eight employees), who are all very busy, it was even impossible to impose these obligations on any of the existing employees. Consequently, the staff unit of the lawyer and the house manager will be partially charged at the expense of the tariff increase.
How much is the tariff increase?
The increase is equal to both Malta and Luznava and is EUR 0,0434 per square metre. On average, the total increase of 50 square metres for large apartments will be slightly higher than EUR 2. In addition, the cost of management in Malta has not been increased since the time of the Maltese parish Council since 2008. The tariff has not been increased since the start of house management, it is also for a period of five years.
Was an apartment owners meeting in Malta, Luznava and Old Zone before the tariff increase?
Such meetings were not organised. Neither THE CABINET regulations nor the “Law on the Management of Housing Houses” do not provide for it. If the people had an interest in discussing the matter at the general meeting, the people of the house themselves could meet together, if necessary, also invite the Maltese JCC representative and discuss the matter. As a manager, we did not have to be the initiator of the meeting.
The increase in the tariff fee was carried out on the basis of population questionnaires. How has questionnaires been carried out and whether the survey is carried out in accordance with all laws and regulations?
Paragraph 10 OF CABINET Regulation No. 1014 provides: “for the calculated residential house management and management fee for the following calendar year, the residential manager shall notify the apartment owner in writing not later than by 15 October of the relevant year, indicating the time and place in the notification (for example, the website on the Internet, informative stand), where the apartment owner may acquaint itself with a summary of the estimates. On the basis of this point, we also prepared information, both questionnaires and estimates. By 15 October, questionnaires were posted to citizens' mailboxes, notifications were posted to information boards, and all information, including questionnaires, was published on the Maltese JCC website. Those who do not have access to the Internet could also be acquainted with the economists in the company. Questionnaires could be completed and submitted from 15 October to 1 December, which is long enough to find time to bring or send a questionnaire. We had a register of questionnaires, the questionnaires were collected after 1 December and decided to increase the tariff because all our home-managed homes dominated the replies“ for ”(that is, including apartments owned by the municipality, as well as the non-submitted questionnaires because, as expected in the questionnaire described in the questionnaire, the non-submission of the questionnaire was considered to be a consent).
The citizens have said that they did not all receive questionnaires?
The questionnaire was posted to each mailbox. Even if no questionnaire was received for some reason, it was available on both the information board and the Maltese JCC website and on location in the company. The information was widely distributed to be received by all who had interest. Now there is news that we have not informed the people who are in Riga or Rēzekne, but in the sense of the law, we do not have to inform them either. We must respond only to those declared at the address. In addition, those who are in Riga or Rezekne were able to find a questionnaire on the company's website. More or less, but questionnaires were received from all houses - this already shows that the questionnaire information had reached each house. Whether each citizen drew attention to this information and completed and submitted the questionnaire.
Section 20 of the Law on Housing Owners provides that, if a decision is taken without calling the general meeting, but in the case of questionnaires, the non-submission of the reply shall be deemed to mean that the citizen has voted against the adoption of the decision. However, in the Maltese JKSU questionnaire, the non-submission of the questionnaire means that the vote is “for”. Why did it?
It was explained in the questionnaire that the non-submission means an answer to the tariff lifting. We created exactly the following questionnaire because it was important for us to clarify the opinion of the people, that is, not “i simply do not submit, because i do not want to pay more”, but rather to justify why it is against and what the price that the citizen would be willing to pay and what services would be. If only is not submitted and automatically against, then it is not possible for us to obtain the reasoning why it is. If citizens would indicate a different tariff instead of our calculated tariff and argue why, then we would consider this tariff and assess whether we are able to provide a service at such a price. If we can't, then the people should look for another manager or manage to manage the house themselves. Of course, no citizen is interested in paying more, but we cannot, as a company, and we must not provide a service under cost, so there was a need to make changes to the tariff.
Did the lawyer's remuneration be allocated only to the total area of apartments or whether the water supply and the heating were taken into account, as the most likely lawyer would be working with customers who had not only management debts but also debts for other services?
It is planned that the lawyer will have to deal with debt and legal proceedings. Of course, we cannot extend his salary to management fees, because the debts of the population are not only management but also water, heat and waste. This 0,0434 EUR per square metre increase includes 50 per cent of the remuneration of the lawyer. The rest of the remuneration will be calculated from other sectors.
Does this mean that a tariff increase in other sectors will be expected soon?
In Malta, all sectors are stable and ashamed for us, so we will be able to take from the reserves and pay neither the removal of the waste nor the heating or water for the time being, but we will soon need to review the rest of the tariffs in Luznava. In the case of a case, i can also inform you that a decision of 1 July has taken a national decision to impose a value added tax on a house management service, so that all residents of a multi-apartment house expect an increase of 21 per cent. It will certainly be an unpleasant increase for citizens, but it will be difficult for management companies, because we will have to pay taxes at once, also for debtors.
Is there a description of the lawyer's job?
The description of the job is currently not prepared. We have not yet come to a common denominator with a representative of the shareholder of the capital, Maltese parish administration, or a lawyer as an outsourcing service, that is, a debt-recovery firm or, however, as a staff member, but in any event the work will mostly involve debtors and legal proceedings.
How had he been working with the debtors so far?
I don't agree if someone says that we're working badly with debtors. Although there has been no state unit, both the board of directors, the economist and the secretary who are about to go to the court, although this is not her direct obligation, worked with the debtors. Unfortunately, the proceedings are slow, for example, in March 2015, we brought an action against the debtor in court. In October, the court was appointed, but that debtor did not come, so that the court was transferred to March 2016. All this time, the debtor continues to pay, but we must continue to provide services. This is all in the company's stalemate.
Is every citizen “hand-held” a contract for management?
The Law on the Management of Residential Houses stipulates that the management contract is closed not with each individual individually, but with domestic production. If the apartment owners have not taken a decision to enter into a management contract, the residential house maintenance and management contracts, which have been concluded individually with each owner of the apartment, shall be valid. The provisions of the management contracts also provide that the owners of apartment owners are obliged to participate in the joint management and management of the house, covering the necessary expenditure related to it in proportion to their share of the total property.
Does Maltese DzKSU manage all the apartment houses in Malta and Loznava parish?
Yes, we are now managing all the houses. Including private houses where waste management is to be ensured, the Maltese DzKSU has more than 2,000 customers. But we, as a keeper, are certainly not compelled. We'll meet people in a meeting of people every year – if the service provider is not satisfied, you can set up an association, establish SIA and manage your house themselves. If they were all happier, why not!
In addition to the annual meetings organised by Maltese DzKSU every spring in each apartment house, a meeting of residents is planned to be organized in Loznava in mid-February, in order to explain the need for improvement of management fees, to tell about the work performed and planned work, as well as to respond to unclear questions. Both apartment owners and tenants are invited to the meeting. A precise meeting time will be announced at the beginning of February.
Madara Laksa,
Public relations specialist of the municipality of Rezekne