RIOC Audit Committee To Discuss Proposed Fiscal Year 2016-17 Budget Tuesday November 3 - Plans Spending Over $30 Million On Roosevelt Island Capital Infrastructure Improvements And Repairs

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The Roosevelt Island Operating Corp (RIOC) Audit Committee is meeting tomorrow. According to RIOC:

PLEASE TAKE NOTICE that a meeting of the Audit Committee of the RIOC Board of Directors will be held on Tuesday, November 3, 2015 at 5:30 p.m. at the RIOC administrative office, 591 Main Street, Roosevelt Island, New York.

Agenda:


Discussion of the Proposed Budget for Fiscal Year 2016 – 2017
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.

An audio web cast of the meeting will be available soon thereafter.

A copy of the Proposed RIOC Budget for Fiscal Year 2016-17 is here.

According to Pages 1-2 of the Proposed 2016-17 RIOC Budget:

RIOC’s Proposed Budget FY 2016‐17 projects revenues of $25,983,000, an increase of $618,000 or 2.44% over the Approved Budget FY 2015‐16 amount of $25,365,000. 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 ground rents, residential fees, 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 additional revenues ("Other Revenues"). Other Revenues mostly consist of FEMA reimbursements and permitting fees collected for activities that take place in the Sportspark sports facility, as well as permitting fees collected for outdoor field activities.

There is an aggregate increase of $336,000 in ground rent primarily due to escalations as specified in relevant ground leases. In addition, RIOC projects that the construction of Southtown Building 8, which is expected to commence not later than 2017, will result in ground rent of $598,000, which is budgeted for FY 2017‐18 in the 10‐year revenue forecast. Furthermore, projections for Rivercross and Westview are based on current level, however both projected ground rents are expected to increase.

Residential fees are projected to decrease by $96,000. This is mainly due to a projected decrease in transactions fees from Southtown Buildings condo sales as a result of reduced turnover.

Tramway revenues are projected to increase at approximately 3% or by $183,000, due to increased activities on the Island, primarily as a result of the Southtown 7 and Cornell developments; and increased visitorship to the Four Freedom State Park (“FFSP”).

Motorgate and metered parking revenues are projected to increase because of an increase in parking rates. And, commercial rents are projected to increase because of escalations in the terms of the commercial leases.

Other Revenues is projected to decrease by $36,000. Most of the decrease is due to $175,000 in FEMA reimbursements, projected to be paid in FY 2015‐16. Except for the decrease of FEMA reimbursements, other components of Other Revenues, which consist of Sportspark and field permit fees, commission on cellular telephone equipment, and miscellaneous fees, are projected to increase by $139,000.

Expenses

Personal Expenses

RIOC’s Proposed Budget FY 2016‐17 projects personal expenses of $11,105,628, an increase of $481,916 or 4.54% over the Approved Budget FY 2015‐16 amount of $10,623,712. The projected increase is due to proposed additional staffing to support elevated capital and operating activity, as well as salary increases in accordance with New York State’s Division of Budget allowance. The projected increase in personal expense is necessary for RIOC to fulfill its statutory mission to “plan, design, develop, operate, maintain and manage” Roosevelt Island.

The Island is currently experiencing an economic boom in real estate with the development of Southtown Building 7, as well as the development of the multi‐billion dollar Cornell campus site. These developments are the main drivers for the increased revenues and expenses mentioned above. RIOC is contractually and statutorily required to maintain infrastructure and provide adequate service to the Island to accommodate this growth. Accordingly, RIOC is in the midst of significant infrastructure and facilities repairs and improvements and projects to spend $30,186,000 on capital projects in the FY 16‐ 17...

Click here for the full RIOC 2016-17 Proposed Budget.