Proposed Fiscal Year 2017-18 Budget On Agenda For Roosevelt Island Operating Corp (RIOC) Audit Committee Meeting Today - Projected Revenues Almost $28 Million, 7.6% Increase Over Previous Year
The Roosevelt Island Operating Corp (RIOC) Audit Committee is meeting later today.
According to RIOC:
PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Thursday, November 17, 2016 at 5:30 P.M. at the RIOC Administrative Office, 591 Main Street, Roosevelt Island, New York.An audio web cast of the meeting will be available soon thereafter.
1. Discussion of the Proposed Budget FY 2017-18.
2. Any Other Committee Business That May be Brought Before the Committee
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The Open Meetings Law of the State of New York requires that all public bodies conduct meetings, convened for the purpose of officially conducting public business, in a manner open to attendance by the general public to observe and listen.
Revenue projections are as follows:
RIOC’s Proposed Budget FY 2017‐18 projects revenues of $27,969,000 and increase of $1,986,000 or 7.64% over the Approved Budget FY 2016‐17 amount of $25,983,000. RIOC generates most of its revenues from long‐term ground leases to developers of housing projects on the Island. These leases specify the manner in which the ground lease revenues are derived, including amounts, timing, and escalation of ground lease payments, specifically residential fees, ground rents, and public safety fees. In addition, RIOC generates revenues from its Tramway transportation system, Motorgate parking garage, metered street parking, commercial leases, interest income, and other revenues. Other revenues mostly consist of permitting fees collected for activities that take place in the Sportspark sports facility, the Cultural Center, the Sports Fields, and third party construction on the Island.Click here for the full RIOC Proposed Fiscal Year 2017-18 Budget.
Residential fees are projected to increase by $792,000 or 64.65%. This is mainly due to the projected construction of Southtown Building 8 and initial sales of co‐op apartments from Island House.
There is an aggregate increase of $1,044,000 or 9.42% in ground rent primarily due to escalations as specified in relevant ground leases and the projected construction of Southtown Building 8, which is expected to commence in April 2017. Furthermore, projections for Rivercross and Westview are based on current levels, however both projected ground rents are expected to increase.
Commercial rents are projected to increase because of escalations in the terms of the commercial leases.
Tramway revenues are projected to decrease by $261,000 or 4.37%, due to over‐projection of the revenues in the FY 16‐17 budget.
Public Safety revenues are projected to increase by $70,000 or 3.71% due to contractual escalations.
Motorgate and metered parking revenues are projected to increase by $174,000 or 7.04%, mainly due to increased parking at Motorgate.
Interest revenues are projected to decrease by $57,000 or 34.97% due to the short‐term nature of investments and the current levels of interest rates.
Other Revenues is projected to increase by $209,000 or 13.23%. Most of the increase is due to Sportspark and field permit fees, commission on cellular telephone equipment, miscellaneous fees, and contributed rental income.
The Proposed Budget is expected to be approved during the December 8, 2016 RIOC Board meeting.