RIOC Board Meeting Today September 14, Presentation Of Proposed Budget For 2021-22 Fiscal Year Main Item On Agenda - Spending Down, Revenue Down, Staff Reductions, Increased Expenses To Pay For Roosevelt Island Youth Center Services And Personnel

The Roosevelt Island Operating Corp (RIOC) Board of Directors will meet 5:30 PM today, September 14, via video conference. You can watch the Board meeting here and ask questions or share concerns about Roosevelt Island during the opening Public Session before the start of the meeting. Sign up to speak here.

The meeting was postponed from September 10.

The main item on the Agenda is presentation of the of Proposed Budget for fiscal year 2021-22:

AGENDA

SEPTEMBER 10, 2020 MEETING OF THE ROOSEVELT ISLAND OPERATING CORPORATION BOARD OF DIRECTORS VIDEOCONFERENCE1

5:30 P.M.

I. Call to Order

II. Roll Call

III. Approval of Minutes
1. July 2, 2020 Board Meeting (Board Action Required)
2. August 5, 2020 Board Meeting (Board Action Required)

IV. Old Business

V. New Business
1. Presentation of Proposed Budget FY 2021-22
2. Acting President’s Report
3. Committee Reports
a. Audit Committee
b. Governance Committee
c. Operations Advisory Committee
d. Real Estate Development Advisory Committee
4. Public Safety Report

VI. Adjournment

Click here to review the RIOC's Proposed Budget.

According to the Proposed Budget (Page 1-4):

The Proposed Budget FY 2021‐22 projects capital improvements in the amount of $11,910,000, a decrease of $27,882,000 over the Approved Budget FY 2020‐21 amount of $39,791,000. The Proposed amount primarily consists of capital projects in the projected amount of $8,395,000, but also includes the capitalized purchase of equipment and vehicles in the amount of $715,000 as well as miscellaneous in the amount of $2,800,000. Categories of projects include sports fields and parks, historic and landmark structures, infrastructure improvements, facilities and offices and the Tramway.

For sports fields and parks, the Proposed Budget FY 2021‐22 projects expenditures in the amount of $2,600,000, decrease of $14,635,000 over the Approved Budget FY 2020‐21 amount of $17,235,000. The decrease is mainly due to the projected completion of Lighthouse Park Expansion and Partial Reconstruction and Octagon Park ‐ Comfort Station and Sitework ‐  in FY 2020‐21 and the rescheduling of the  Sportspark renovation (Construction)  project to FY 2022‐2023.

For historic and landmark structures improvement, the Proposed Budget FY 2021‐22 projects expenditures in the amount of $0, a decrease of $1,317,000 from the Approved Budget FY 2020‐21 amount of $1,317,000. The decrease is  due to the projected completion of the  Blackwell House Exterior and Roof, Lighthouse Restoration (Construction & Design) and Smallpox Hospital (Design) in FY 2020‐21.

For infrastructure improvements, the Proposed Budget FY 2021‐22 projects expenditures in the amount of $4,010,000, a decrease of $11,732,000 from the Approved Budget FY 2020‐21 amount of $15,741,000. The decrease is mainly due to the projected completion of the Motorgate Repairs PHASE 1 (Construction) and the Southpoint Open Space Park – Seawall (Construction) projects in FY 2020‐2021.

For facilities and office improvements, the Proposed  Budget FY 2021‐22 projects expenditures in the amount of $60,000, a decrease of $983,000 over the Approved Budget FY 2020‐21 amount of $1,043,000. The decrease is mainly due to the projected completion of Youth Center Refurbishment (Construction)in FY 2020‐2021 and postponement of Dayspring Church and the Motorgate Plaza and Atrium...

... Revenues

RIOC’s Proposed Budget FY 2021‐22 projects revenues of $32,809,000, a decrease of $2,766,000 or 7.78% over the Approved Budget FY 2020‐21 amount of $35,575,000. RIOC generates most of its revenues from long‐term ground leases to developers of housing projects on the Island. These leases specify the methodology by  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 and interest income. 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.

Residential fees are projected to decrease by $41,000 or 2.21%. This is mainly due to new expected closing date for Southtown Building #9.

Ground rents are projected to increase by $137,000 or .91% mainly due to the anticipated completion of Southtown Building #8 in FY 2020‐21.

Commercial rents are projected to increase by $46,000 or 2.78% due to contractual escalations.

Tramway revenues are projected to remain at same level as the Approved Budget FY 2020‐21.

Public Safety revenues are projected to increase by $127,000 or 5.90% due to contractual escalations and Southtown Building 8 estimated to be completed by FY 2021‐22.

Transport/parking revenues are projected to increase by $511,000 or 18.78%, mainly due to the projected increase in parking rates at the Motorgate parking facility and Southtown Building #8 expected to be completed and bringing more residents to island. ...

... Other revenues are projected to decrease by $2,988,000 or 68.33%. This is mainly due to: the projected receipt of a grant for TAP Funds for the bike ramp in the amount of $2,964,000 being delayed to FY’s 23 & 24....

... Personnel Expenses

RIOC’s Proposed  Budget FY 2021‐22 projects personnel expenses of $11,917,541, a decrease of $229,158 or 1.89% over the Approved Budget FY 2020‐21 amount of $12,146,700. The projected decrease is mainly due to the reduction of staff, and the allocation of personnel costs to capital projects and community support. 

... For grant and community support, the Proposed Budget FY 2021‐22 includes an extraordinary expense of $1,340,110, an increase of $172,519 over the Approved Budget FY 2020‐21 amount of $1,167,591. This is mainly due to increased costs for community service and the allocation of youth center personnel cost to support such service.