Tanaro

How your Community Service Fee (CSF) works for you

This document is only intended for the homeowners in this community.

If you have received this document in error, kindly delete it and do not
duplicate the contents in any form or by any method.

1 Tanaro CSF Info Pack 2017

1
CONTENTS

Executive summary 3

RERA approval 6

How the CSF is calculated 7

The 2017 CSF explained 8

The 2017 CSF budget 10

The Capital Reserve Fund 13

2016 Community income 14

2016 CSF collection status 15

Community achievements in 2016 16

What we did for you in 2016 20

Our plans for you in 2017 21

About Emaar Community Management 22

Dont wait in line take the easy option!

Pay your CSF with a variety of easy payment methods:

Online Payment Bank Auto

Kiosks Transfer Debit

2 Tanaro CSF Info Pack 2017

EXECUTIVE SUMMARY

Welcome
The purpose of this document is to provide the homeowners of Tanaro with information
about the budget for the 2017 CSF as well as other general information regarding ongoing
plans to ensure the financial health, longevity and high quality of the community.

The CSF is carefully calculated to cover not only the costs involved in keeping your
community running smoothly but to also make improvements, based on your feedback and
to introduce the latest industry innovations in terms of efficiency and sustainability.

We worked hard to bring about a number of improvements which ultimately increased the
level of service provided to residents within the community. On the social side, a number of
very successful events brought your community together for some fun times for residents of
all ages.

Summary of community initiatives in 2016

Refurbishment of the ablution rooms at the Sharbatali mosque
Refurbishment of interlock tiles around tree pits in the Master Community
Refurbishment of the bridges around the lake area
Upgrade of gymnasium equipment

Your 2017 CSF Steep increase in Sustainability In 2016, a

rate has been CSF due to will continue to comprehensive
set at AED legislative move be one of our capital asset
21.35 per from the Dubai highest study was carried
square foot of Protective Systems priorities out to fairly and
your property to upgrade the accurately budget
Closed Circuit for future CSF
Television (CCTV) charges
systems in the
community

3 Tanaro CSF Info Pack 2017

EXECUTIVE SUMMARY
The CSF rate for 2017
The Real Estate Regulatory Agency (RERA) has approved the 2017 CSF budget at AED 21.35 per
square foot. The figures below represent a comparison of the residential portion of the budgets for
2016 and 2017.

Budget Items Budget 2016 (AED/sqft) Budget 2017 (AED/sqft)

General Fund* 17.91 19.41

Capital Reserve Fund 0.84 1.00

Master Community Levy 0.92 0.94

Total CSF Budget 19.67 21.35

* Including operating and administrative expenses please see page 10 and 11 for further details

2016 budget versus actual expenditure summary

Below is a eleven month comparison of the 2016 budget versus the actual expenditure for that same
period.

Budget Items Budget (AED) Actual (AED) Variance (AED) Variance (%)

Operating Budget 3,383,525 3,672,853 -289,328 -9%

Administrative Budget 488,669 584,381 -95,712 -20%

Master Community Levy 199,570 199,570 0 0%

Total General Fund 4,071,764 4,456,804 (385,039.26) -9%

4 Tanaro CSF Info Pack 2017

EXECUTIVE SUMMARY
Utility consumption*
In 2016, utility charges were almost AED 6,000 lower than in 2016. This was mainly due to energy
savings from chilled water for air-conditioning units in the community. The table shows a comparison
in consumption for 2015 and 2016.
*Based on invoices received to end of November 2016

2015 2016

300,000

250,000

200,000
AED

150,000

100,000

50,000

-
J F M A M J J A S O N D

CSF defaulters remain a challenge in the community

Non-payment of the CSF remains a challenge as it places a financial strain on the budget and could
lead to the suspension of essential services used by all residents. The payment of the CSF is the
obligation of every homeowner and is absolutely necessary to ensure that the community has
adequate funds to carry out the required services, including the provision of utilities.

A number of initiatives have been taken to encourage the timely payment of the CSF and to further
increase collection rates.

The year ahead

2017 promises to be an exciting year. Sustainability will continue to be one of our highest priorities,
and our team will work towards achieving specific goals, working closely with service providers to
cut costs and identify areas for improvement.

5 Tanaro CSF Info Pack 2017

RERA APPROVAL
The Real Estate Regulatory Agency (RERA), supported by the Dubai Land Department, plays a key
role in the governance of Dubais property sector. The organisation protects the rights of
homeowners, investors and developers by providing advice on all areas of strategy, policy and
certification concerned with real estate.

From the regulation of investment activities designed to yield the highest returns, to the issuance of
licenses for real estate entities and the monitoring of projects from a financial and technical aspect,
RERA serves to protect the wider interests of the market and its investors.

Your CSF is carefully drafted by our financial management team, taking into account each of the
components within your community budget. Then, after a stringent checking process, RERA
approves the CSF. To view the approved CSF, please visit the link mentioned in the graphic
displayed below. By working carefully within official RERA standards and guidelines, you can be
safe in the knowledge that your rights are protected at every stage of your dealings with us.

View the approved service charges

for your community.

Scan the QR code or visit the link

bit.ly/servicefee

6 Tanaro CSF Info Pack 2017

HOW THE CSF IS CALCULATED

Our budgeting team considers the following aspects

when calculating the CSF:

Historical expenses
We evaluate actual expense trends from the previous year
based on individual cost items. Depending upon the
operational plan, we decide whether or not to include them
again in the following years budget. In addition, our hands-on
experience from daily site operations gives further insight into
various aspects of accurate budgeting and cost savings.

Resource allocation on site

We periodically review resources on site to find ways of
improving performance by employing new technology and
operational methods based on international best practices.
This continuing development in the management of our
resources has a substantial and positive effect on the budget.

Service provider contracts

By regularly reviewing service provider contracts, we can
evaluate key areas of improvement such as performance and
cost savings. This helps us to determine future budgets and
predict expenses. During 2015, we have made comprehensive
contracts for MEP, swimming pool maintenance, cleaning,
etc., to cover costs over the next three years.

Capital assets evaluation (maintenance, repair and

replacement)
Capital assets that are no longer under manufacturers
warranty are regularly reviewed for major maintenance or
replacement. Essential equipment, such as sewage pumping
stations and/or similar items, supports the overall
infrastructure of the community. So we make allowance in our
budget for the upkeep of these items, thus ensuring the
community has sufficient funds available during times of
emergency and/or when replacements are required. During
2016, we undertook a comprehensive capital asset study to
fairly and accurately budget for future CSF charges.

Surplus/deficit adjustment from previous years

Finally, any surpluses or deficits from previous years are
brought into consideration during the determination of the CSF
rate for the current year. This allows us to maintain our funds
at an optimum level to cater for every eventuality and serve
the community to the highest standards.

7 Tanaro CSF Info Pack 2017

THE 2017 CSF EXPLAINED
The CSF charged to each homeowner represents his/her share of the annual CSF budget that is
estimated to be required for the maintenance and operation of the common property and assets of
the community. The CSF rate also includes a share towards the Master Community Fee and a
provision to the Capital Reserve Fund that will cover the replacement of common assets when
necessary.

Therefore, the CSF consists of the following three main components:

General Fund (operating, administrative, utilities and community improvement expenses)
Capital Reserve Fund
Master Community Levy

The General Fund

The General Fund consists of day to day operating and administrative expenses used to
maintain your community, whether you live in an apartment or villa. Operational expenses
include, but are not limited to, the maintenance, utility costs and management of the
following:

Common areas including infrastructure, and/or related internal policies, which

landscaping, irrigation and water
features; general and specialised
cleaning; pest control; and civil work
such as painting, tiling, masonry and
carpentry
Common and shared recreational areas
such as courts and swimming pools
Firefighting equipment
Periodic upgrades and/or replacements
of non-capital equipment and
consumables
Mechanical, Electrical and Plumbing
assets (MEP)
Access control systems
Monitoring/supervision personnel
including swimming pool lifeguards and
security staff
Compliance with statutory requirements
includes water quality testing and
monitoring, cleaning, security, waste
management, insurance, noise levels,
swimming pools, pest control and
management
Waste collection
High and low voltage systems and
networks (including earthing and
lightning protection systems)
Domestic water and supply
systems/networks
Signage its design, manufacture and
placement within the community
Community security and control rooms
Common area lighting, including streets,
walkways

8 Tanaro CSF Info Pack 2017

THE 2017 CSF EXPLAINED
Administrative expenses this part of the budget covers the general administration costs that allow
us to deliver community services to the required standards. Administrative expenses include, but are
not limited to, the management of the following:

Community events and awareness Campaigns

Statutory fees and permits Common area insurance
Auditors fees Management costs
Legal and professional fees Communication charges such as printing,
Bank charges SMS and postage

Capital Reserve Fund

The Capital Reserve Fund has been established for the costs incurred in the repair and replacement
of significant capital items. Examples of this would be elevator or chiller replacements, or perhaps
flooring, complete painting and cladding of buildings. It is vitally important to have a robust fund to
guarantee not only the smooth running of the community but also to ensure that the value of the
building and individual units are maintained well into the future.

Special Levy
The Special Levy is a one-off charge for items not in the design or those not covered under the
General Fund. There is no Special Levy to be applied in 2017.

Master Community Levy

The Master Community Levy goes towards maintenance of areas that are not part of any particular
community but are common to the Master Community and shared by all. A Master Community Levy
is charged to each community and other non-residential entities for example: hotels, clubs and
retail areas within the Master Community. This charge is paid through the CSF and covers items
such as plants and the maintenance of the Master Community infrastructure including roads,
bridges, underground services, storm drains, sewage lines and pavements.

9 Tanaro CSF Info Pack 2017

THE 2017 CSF BUDGET
After a thorough review of 2016 expenditures and cost projections for 2017, the CSF budget for the
residential portion of Tanaro has been determined and approved by RERA at AED 5,035,079 or
AED 21.35 per square foot of saleable area of the residential units.

Budget amount AED per square

Budget Items
(AED) foot

OPERATING BUDGET

MEP services (MEP) 490,505 2.08

Infrastructure Maintenance
0 0
(IRM)
Specialised System and
261,349 1.11
Services (SSS)

Maintenance Landscaping 50,106 0.21

Water treatment and testing 2,844 0.01

Health, safety and

0 0
environment

Community facilities 143,400 0.61

Cleaning 279,689 1.19

Security services 292,858 1.24

Concierge 110,837 0.47

Services
Pest control 12,800 0.05

Waste management 7,353 0.03

Contingency/community
60,000 0.25
improvement
Common area cooling
1,580,000 6.70
charges

Utilities Electricity & water 550,000 2.34

Effluent water 20,000 0.08

Subtotal 3,861,741 16.37

10 Tanaro- SF Info Pack 2017

THE 2017 CSF BUDGET
Budget amount AED per square
Budget Items
(AED) foot

ADMINISTRATIVE BUDGET

Community events and

0 0
programmes

Statutory fees and permits 22,770 0.10

Community Management Fee 391,436 1.66

Insurance 199,756 0.85

Bank charges 67,000 0.29

Professional services 28,665 0.12

Communication
5,480 0.02
charges/postal charges

Subtotal 715,107 3.04

CAPITAL RESERVE FUND 235,839 1.00

MASTER COMMUNITY LEVY 222,392 0.94

Community Service Fee for 2017 5,035,079 21.35

11 Tanaro- SF Info Pack 2017

THE 2017 CSF BUDGET
Components of your 2017 CSF
Please note, the administrative and operational expenses, plus the utilities charges for all common
assets and common areas, are covered by the General Fund.

12%

29%
Operational expenses
14%
Utilities for common areas
Capital Reserve Fund

8% Master Community Levy

Administrative expenses

37%

Comparison of 2016 and 2017

The graph below shows a comparison of the 2016 and 2017 CSF budgets in AED, per square foot
of your property.

10
9
8
7
6
AED

5
4
3
2
1
0
Utilities Operational Administrative Master Capital Reserve
expenses expenses Community Fund
Levy

2016 2017

12 Tanaro CSF Info Pack 2017

THE CAPITAL RESERVE FUND
As previously described, the Capital Reserve Fund has been established to maintain and preserve
the value of individual and common property in your community.

But instead of collecting the money and simply holding on to it in a regular account, we invest the
fund every year so that the money can work even harder our team invests the proceeds of the
fund in term deposits with a selection of A class banks for periods of between six months and a
year. At the time of investment (and re-investment), quotations are received from five to seven
banks and the term deposits are placed with the bank offering the highest rate of interest.

We wish to inform you that Tanaro has accumulated a Capital Reserve Fund of AED 684,723 as of
30 November 2016. This includes the original funds contributed by the homeowners along with
interest earnings of AED 13,623 on those contributions.

The Capital Reserve Fund

Total CRF
AED 684,723
Interest Earned
AED 13,623

Principal Amount Invested

AED 671,100
*Figures are provisional (unaudited) as of
30 November 2016

13 Tanaro CSF Info Pack 2017

2016 COMMUNITY INCOME
Throughout the course of the year, your community generates an income by way of a variety of
channels. This helps us to reduce overall costs to you. Below is a breakdown of the monies earned
by your community during 2015.

Late Payment Fee

In line with directions from RERA, a Late Payment Fee (LPF) of 1% per month is charged on any
amount overdue after the CSF Invoice due date. The LPF is a deterrent for homeowners who delay
or default on their CSF payments and also serves to offset any interest payments to be made by the
community by borrowing, due to shortage of funds.

Access cards & transponders

The access cards & transponders used by residents to enter their community or the parking areas
are provided to homeowners at a small cost and the income generated from these is credited to the
communitys account.

Marketing and Distribution Permit Fee

The community is often the target of marketing for many small and medium-sized businesses. To
ensure that only legitimate businesses gain access to the community to promote their goods and
services, we regulate activity with the provision of a permit that allows the distribution of promotional
material.

Notices of Violation/vandalism penalties

To ensure adherence to Community Rules and architectural codes, Notices of Violation are issued
along with penalties to those who fail to comply. Private contractors are also given Notices of
Violation if they breach any community rule or carry out activities that contravene their entry permits.

Vandalism is a serious offence, and persons who vandalise community property are penalised and
reported to the local law enforcement authorities. Funds from these penalties form part of the
income to the community.

Miscellaneous income
The Miscellaneous Fund is income generated from other avenues such as interest earned on call
accounts or bounced cheque charges.

Did you know?

All Late Payment Fees collected from overdue accounts are

credited to your community as income.

14 Tanaro CSF Info Pack 2017

2016 CSF COLLECTION STATUS
Your community boasts a healthy CSF collection rate, with a figure of 92.91% by the end of
November 2016. This is one of the strongest collection rates in the emirate. However, the team does
not rest there but goes on to adopt a robust policy to claim overdue payments, thus ensuring
recovery of collectables is made at the earliest possible time.

Year 2016* 2015 2014 2013 2012

Overall collection rate (%) 92.91% 99.06% 98.41% 98.93% 99.42%

Total arrears (AED) 329,019 43,123 73,014 46,652 28,800

The impact of delaying your payment on your community

Due to some homeowners defaulting on their CSF, the community loses the potential benefits of any
cost savings since appropriate adjustments cannot be made in the CSF Invoices sent out. As a
result, community funds are negatively impacted with limited or no actual cash to rebate against
budgeted savings.

Delayed/non-payment of the CSF has the potential to deprive your

community of the funds required to continue the supply of essential
services such as common area maintenance, air-conditioning, security, Despite challenges,
waste collection, street lighting and irrigation. Whilst we make financial the CSF collection
provision to cover every contingency, timely payment of the CSF is vital rates remain high in
to uphold the high standard of living you expect in your community. your community
Ultimately, a possible increase in the overall CSF budget may have to
be introduced to cover any deficits and this will affect all
homeowners.

Actions taken against late payers

There are several deterrents in place to ensure every homeowner pays their CSF in full and on time:

A Move In Permit (MIP) will not be issued to Denial of services including non-issuance of
new residents/tenants unless all CSF arrears NOC for transfer of property, visa renewal,
are paid up in full as per our Move In/Move access cards, garbage collection, etc.
Out Policy

Levying of Late Payment Fee set at 1% per Referral of the case to a professional debt
month of the outstanding amount recovery agency

Suspension of non-emergency services Initiation of legal action

Owners are encouraged to pay any CSF arrears promptly and make regular
payments in a timely manner to avoid action being taken against them.

15 Tanaro CSF Info Pack 2017

COMMUNITY ACHIEVEMENTS IN 2016
We are dedicated to enhancing your community for the long term benefit of all homeowners and
residents. In keeping with this commitment, besides the normal day to day management, we
proactively and continuously seek to identify areas for improvement. We also organise numerous
events, campaigns and initiatives throughout the year to boost community spirit and promote a
pleasant living environment. Some key accomplishments/events in 2016 are detailed below:

Community market day Community dhow cruise

Great bargains, tasty food and fun In February 2016, residents
activities, were the highlights of the enjoyed a sumptuous feast of
much-awaited Community Market Arabic and international cuisine
Day held on 08 April 2016. The while cruising the picturesque
event brought residents of the Dubai creek on a traditional
community together to sell pre- wooden dhow. With delicious
owned household items, books and food, a relaxing Arabic ambience
toys at good bargains alongside and panoramic views under the
stands offering a variety of tasty beautiful moonlight, they
snacks and drinks. experienced a memorable night of
live music and captivating dance
performances.
.

16 Tanaro CSF Info Pack 2017

COMMUNITY ACHIEVEMENTS IN 2016

Christmas market day Halloween event

Children and adults joined to enjoy Creepy crawlies, scary monsters,
and cheer the Christmas themed cute minions, cartoon characters and
Market Day. With festive decorations all things Halloween came alive at
adorning the lawn, residents huddled The Greens & Views on Monday, 31
at the busy flea market while October 2016 at the annual
jugglers, unicyclists and games kept Halloween Event and Costume
the children entertained. Contest.
The climax of the evening was the
Participating vendors put up stalls
Costume Contest, in which children
and sold a variety of items such as
who had been shortlisted participated
pre-owned homeware, jewelry, toys,
for a chance to win a trophy in the
arts & crafts, clothes and books.
Scariest, Funniest and the Most
Creative Costume categories.
After all the singing and dancing,
Santa Claus and his elves made a
quick stop at the community grotto.
Families and children gathered
together to meet and click a picture
with him to capture this wonderful
time of the year. Children giggled
with excitement as they made their
way to the Santas grotto, bouncy
castle, and various other games
stalls.

17 Tanaro CSF Info Pack 2017

COMMUNITY ACHIEVEMENTS IN 2016
Festival of lights
The community wore a beautiful
glow across the Central Lawn as
residents celebrated Diwali, the
Festival of Lights on 27 October
2016. Children and adults got a
taste of the Indian festival at the
snacks counters, while the ladies in
the community took the opportunity
to showcase their artistic skills in
the Rangoli contest and the best
creations were awarded.
18
Desert safari
Residents took a thrilling ride
through the Arabian desert and
enjoyed an exciting evening of
dune bashing, scenic views,
good food and fun on 25
November 2016. More than 60
enthusiastic participants set out
on a safari trail that traversed the
Hatta area, giving thrill seekers
panoramic desert views as they
made their way to the camp in Al
Madam.
Earth hour
The community switched over to the dark side
once again this year for Earth Hour on 28 March
2016. Around 200 residents participated by
coming out onto the central lawn to meet,
mingle and light candles to mark the event.
Tanaro CSF Info Pack 2017
COMMUNITY ACHIEVEMENTS IN 2016

Refurbished streetscape Refurbished bridges

Restoration of the tree pits on the Bridges, besides being

main streets of the Master functional architectural features
Community has been completed. of a community, also have a
The over developed roots of mature very impactful aesthetic effect.
trees were pruned with the The exterior walls of the bridges
assistance of the incumbent in the Master Community had
landscaping service provider. deteriorated over time due to
contact with lake water and
other external factors,
restorative efforts were
undertaken immediately.
Plastering and repainting of
these bridges have been
carried out.

Refurbishment of ablution room

The ablution room in Sharbatali
mosque has recently undergone a
renovation and are completely
equipped with basins, toilets, stools
and wash taps and relevant toiletries.
Hygiene, cleanliness and sanitation are
maintained throughout our wash areas
accordingly.
Gym gets an Upgrade
Fitness is a big priority for many of
our residents. So after discussions
with the Interim Board the gym at
Tanaro now features brand new
cardio equipment to enhance your
workout experience.

19 Tanaro CSF Info Pack 2017

WHAT WE DID FOR YOU IN 2016
ECM Operational services management
Soft services expertise
Cleaning and waste management
Landscaping and irrigation maintenance
Concierge and security services
Pest control deployment
Hard services expertise
All areas of Mechanical, Electrical and
Plumbing (MEP) maintenance
Electro-mechanical services
Water distribution networks
Civil works
Energy management
Technical and performance audits
Infrastructure and underground networks
management
Technical specialised contracts
CCTV operation/maintenance
Building Management Systems (BMS)
Capital replacements
Elevator/window cleaning
24/7 Customer Contact Centre
Our team is always on hand to help you call
us any time on 800 EMAAR (36227)
20
Community management services
Administrative and secretarial
Board meetings
Record keeping
Insurances management
Dispute resolution
General communications and management
Financial management
Annual budget preparation
Monitoring bank accounts
Directing day to day expenses
Cash flow management (receivables
and payables)
Asset management
CSF invoicing and collection
Financial reporting
Executive management
Policy making
Strategy expertise
Extensive knowledge of government/local
authorities and compliance issues
Tanaro CSF Info Pack 2017
OUR PLANS FOR YOU IN 2017
In 2017, our team is planning many initiatives to improve the community of residents in Tanaro
Some of these developments are listed below.

New tennis court

We will soon be building a new outdoor tennis
court for residents. This will enable children
and adults from the community to enjoy one of
their favourite sports and whats more
important it will help them stay physically
active.

Upgrade of the CCTV systems

As per the guidelines from Dubai Polices
Department of Protective Systems, we have
been informed to upgrade the Closed Circuit
Television (CCTV) Systems in the community
with immediate effect. In 2017, this will be one
of our top priorities.

21 Tanaro CSF Info Pack 2017

EMAAR COMMUNITY MANAGEMENT
As Emaar Community Management (ECM), our primary objective is to manage and maintain
the wellbeing of your community. As such, we provide a broad spectrum of comprehensive
management services. These include, but are not limited to, technical, executive,
environmental, security, financial, administrative and customer service functions. We serve a
portfolio of six Master Communities with over 35,000 units and 120,000 residents.

As an entity, ECM is an ISO 9001:2008 (Quality Management Systems) certified

company with recently acquired qualifications in Environment Management
Systems (ISO 14001:2004), Energy Management Systems (ISO 50001:2013)
and Occupational Health & Safety Management System Standards (OHSAS
18001:2007).

Our teams are trained by the US-based Community Associations

Institute (CAI) and many of our members are endorsed both locally by
RERA and internationally with the prestigious Certified Manager of
Community Associations (CMCA) accreditation. In 2013, we received
the most prestigious accreditation in the industry when we became an
Accredited Association Management Company (AAMC) ECM is the
only community management organisation outside of the US to be
awarded the title.

Sustainability is close to our hearts at ECM. We are members of the US

Green Building Council, which means we have to adopt more sustainable
building and management practices through every aspect of our business
and work towards changing the way our communities are designed, built
and managed. We conduct regular initiatives throughout the year with a
variety of sustainability drives and awareness campaigns.

In terms of support, our Customer Contact Centre is available 24 hours a day, seven days a week
and provides a rapid and efficient response to queries through a variety of channels such as emails
and telephone calls. With strong corporate governance, we promote and uphold the brand image of
our parent company, Emaar Properties PJSC, as a quality lifestyle developer, as well as continually
striving to preserve and enhance the communities wellbeing and market value.

For more information on what we do, visit www.ecm.ae

22 Tanaro CSF Info Pack 2017