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North Shore Towers Courier n January 2017 7 value is going to greatly and negatively impact maintenance fees in the future in order to cover the real estate taxes. Real estate taxes far away any other expenditure in the budget, a whopping 45%, more than 20% above the next highest expenditure “Labor.” Unfortunately, the latter slice of the pie will also rise in 2017 as New York implements a minimum wage increase from $9 to $11 an hour, effective January 1, 2017. Redlich was quick to point out that despite what appears to be a tremendous increase in expenditures in all sectors, save one—“Maintenance & Supplies”—between the 2016 and 2017 budgets, “the 2016 budget is almost identical to the 2017 budget. The reason we’ve done so well this year is that we’re under-budget by a substantial amount in many categories. And that’s why we’ll end up with a surplus this year.” In fact, the savings in 2016 has resulted in a surplus of nearly two and a quarter MILLION dollars. Under Redlich’s recommendation, the Board has approved taking $1 million of this surplus and putting it toward NST’s 2019 mortgage payment. The money will bill placed in escrow until that time. This will help defray part of the increase in maintenance fees expected from the rise in real estate taxes. As for Capital Improvement, the most glaring expenditure comes from the renovation of the building exteriors, which is currently underway, as evinced by the bridgework protecting the walkways which circumnavigate and run between buildings and scaffolding along the facades. The New York-mandated work is budgeted at $3 million for all three buildings and expected to last approximately two years, depending on the amount of work and weather conditions. The anticipated outdoor pool renovations, which began this fall and budgeted at $150,000 for 2016 and $100,000 for 2017, are being split between the apartment cooperation and the Country Club, making a total of $500,000 for the projected total cost of the renovation. Still, the overall difference in expenditures is more than three million, again due to the building façade work. Fortunately, the surplus realized in 2016 helps offset the losses in 2017, and although the cooperation expects to end this year with a cash reserve of more than 21 and a half million dollars, that total is expected to only decrease to under 20 and a quarter million by end-of-year 2017. Turning his attention to the Country Club, which is again a separate budget, Redlich announced no increase in the membership fees for 2017. Pointing to “the slight increase” in overall operating income from 2016 to 2017, he asserted that there was “nothing dramatic.” He also acknowledged the impending upgrades to the golf carts, which he assured “will be self-funded.” The pool renovation, which will have more than doubled from this year to next, includes both the outdoor pool renovations and the remaining renovations to be completed on the indoor pool, including work on the dome and applying an epoxy to the floor to present slipping. According to Redlich, there was a net surplus upon the start of 2016 of twice the amount needed for Capital Expenditures. Even with catching up with the cost of some of projects in 2017, the Country Club is projected to end with a cash position of close to half a million dollars. To help exemplify the excellent position in which the Country Club finds itself in recent years, Redlich hearkened to his days as Board Treasurer for North Shore Towers “when 9-11 hit in 2001.” AT that time, the Country Club needed to borrow money from the apartment cooperation to sustain itself over the winter months. Since that time, the Country Club has increased its membership— due in large part to the mandatory membership initiative several years ago—to ore 2100 members and strengthened its financial position, so that “it no longer needs Big Daddy to look over its shoulder in the winter months.” Redlich’s anecdote served as the perfect endcap to his presentation and the Finance Committee and Insurance Sub-Committee Chair was greeted with an appreciative applause from the residents, many of which later positively commented on its easy-to-grasp design and transparency. (l. to r.) Board President Mario Carmiciano, NST Comptroller Robert Serikstad and Board Treasurer Steve Redlich The Committee faced residents’ questions and concerns following the presentation December 2016 ¢ NORTH SHORE TOWERS COURIER 7


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