Photos by Mike Savitsky Powerful good news at finance meeting BY VICTOR G. MIMONI Nothing warms a bitter-cold December evening like good news and NST residents got plenty of it at the recent Open Finance Meeting in the Country Club ballroom. Board of Directors President Rob Ricken drew applause from a crowd of nearly a hundred residents when he announced a $669,000 operating budget surplus – and that for an unprecedented fifth consecutive year, there will be no increase in maintenance fees for 2014. “I believe this is unprecedented for any large cooperative in New York or Florida,” Ricken told the Courier, recalling that the last increase, only about 3 percent, was back in 2009. He explained to newcomers to the city’s premier residential complex that, “North Shore Towers is a pretty big enterprise, worth between $600 and $700 million.” Ricken attributed this success not only to sound management by the board, but also to the timely refinancing of the mortgage, saying that the interest savings “saved the day.” In fact, he said that there was no significant increase in revenue and some increase in expenses, but interest and cost savings, coupled with a significant decrease in fuel costs put the budget in the black. The microphone was then turned over to Mort Gitter, who made a detailed presentation of the audited financial statement for the operating and capital budgets. Not surprisingly for an operating budget, maintenance charges were the lion’s share of income at $39.5 million, followed by electricity revenue and commercial rent. On the downside, no surprise that the $19.1 million real estate tax bill took the biggest bite of the money pie, followed by labor and related costs, fuel for the generators and mortgage. Nevertheless, when all the bills are paid, $669,000 is left. The capital budget is dominated by the massive generator project, replacing three of the six units which power NST separate and apart from the electric grid. Other major costs were for movie theater renovation, improving the dome over the indoor pool and contingency funds. General Manager Glen Kotowski explained after the presentation, “The three new generators have been built and test-run, and as of the end of 2013, $4.4 million will have been paid toward this $13 million budgeted expenditure.” Gitter did report that, “It can’t be all good news.” Because of anticipated expense increases in coming years, the board decided that rather than borrow “money that would have to be paid back with interest,” there would be a 25-cent-per-share assessment, payable in June, as in past years. “This should be far less than the rebate,” Gitter said, referring to the real estate tax rebate to compensate coop owners for the city’s archaic practice of taxing them at a higher rate than private homeowners. The audience applauded the presentation, and washed down the news with coffee and pastries supplied by the Towers Restaurant. North Shore Towers Courier n January 2014 3 Israel unveils plans at NST BY VICTOR G. MIMONI Congressmember Steve Israel paid another visit to NST recently, listening to residents’ concerns and talking about challenges in Washington and his vision for the future of this part of Long Island. Israel discussed the rollout of Obamacare and how it obscured the vital service it will provide, the need for worker housing to make the area attractive to business, his battle to get his colleagues to understand the unfairness of federal treatment of coops, and how he has been branded “The leading hawk against Iran.” Israel also announced an initiative to “make New York the Alzheimer’s research capital of the world.” Robert Serikstad (left) looks on and Mort Gitter studies his notes as board president Robert Ricken addresses the meeting. Mort Gitter outlined the specifics of the budget surplus and where the money was going The crowd of nearly 100 residents began filing in long before the meeting started.
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