FINANCIAL TIMES Not all good news at year-end meeting
STORY BY STEPHEN
VRATTOS
Photos by Dawn Steinberg Perhaps it was merely the result
of the season, with many
already ensconced in their
warm winter nests down south, or
maybe it was the looming holidays
and the numerous events and additional
responsibilities they bring,
which kept residents away from the
cinema for the end-of-year Open
Shareholders Finance Meeting.
Whatever the reason, there were
more than a few good seats still
available when the annual money
matters meeting convened the evening
of Wednesday, December 6.
The night’s headliner was Board
Treasurer Steve Redlich, unsurprisingly.
Upon his return to the
Board in 2015 after many years,
Redlich reassumed the mantle of
“Treasurer” and quickly distinguished
himself with his audiovisual
presentations at the co-op’s public
gatherings in the cinema. With
his affable demeanor and deft use
of colorful graphs, tables and pie
charts, he conveyed the traditionally
moribund and heady financial
reportage—which escaped the ken
of even those with an acumen for
numbers, never mind the many
without—in an easily digestible,
dare I say, entertaining manner.
Redlich’s methods also gave an
air of transparency to the residents,
who had difficulty following the
co-op’s money matters previously.
Thus, he became a trusted favorite
on the Board. The fact that the
uncertain financial state of the
country and subsequently North
Shore Towers had experienced a
dramatic one-eighty at the time of
his re-election may also have had
much to do with his star power.
Whatever the reason, Redlich’s
appeal and efficacy may be facing
their first difficult test, with his
announcement of the impending
and startling increased assessment
of in property taxes, which will
translate to the increase in maintenance
fees for the first time in
years.
To his credit, Redlich prognosticated
the looming tax debacle at
October Open Board Meeting. But
the unfriendly news and its consequences
Redlich wisely saved for
the latter half of his presentation.
He graciously began with a shoutout
to the Finance Committee and
additional personnel who diligently
aided him in putting together
the report, as well as explaining
the step-by-step procedures, the
many meetings with Management,
Country Club and Committee,
which take place throughout the
year and lead to the comprehensive
report about to be given.
The Country Club budget was
the first of three Redlich presented.
It combined both the Capital
Improvement and Operating
Budgets of the club, whereas
the two which followed separated
the former from the latter
as pertains to the North Shore
Towers Apartment Corporation.
Most interestingly on the
Operating side, in 2018 there
will be no increase in general
resident membership dues for the
Country Club. However, resident
and non-resident (outside) golf
members will see an increase
of $150 and $250, respectively.
Redlich commended The Men’s
Golf Association for “stepping
up to the plate,” for it was they
who initiated the increase, feeling
strongly about taking a more
active role in upgrades to the
course and equipment in the
future in return for their greater
financial commitment.
As for the Capital Improvement
end, the greatest expense is
attributed to the outdoor pool
renovations, the improvement
costs of which grew as the concrete
was broken up and more problems,
which needed to be fixed, were
discovered. Other big ticket items
include a new practice area for
the golfers and repaving various
cart paths in dire need of repair
along the course. As a result, the
cash position of the Country Club
drops to under $200,000, which
according to Redlich is “tight,”
but with the extra revenue stream
generated by the increase in golf
dues and all the expenses being
absorbed in 2018, the number will
climb going forward.
Transitioning to the Capital
expenditures budget for the
Apartment Corporation, Local
Law 11 continues to take a hefty
bite out of the co-op’s coffers. Of
some respite is the increase in the
2017 projected expense for the law,
because more work was completed
than anticipated, translating to a
decrease in the projected 2018
costs, though it doesn’t change
the overall expense. When the dust
settles (so to speak), by the end of
2018, the co-op’s projected ending
balance will be down to little more
than $2.5. Redlich noted this figure
was in the mid to upper teens not
too long ago and reiterated the
great impact of Local Law 11 as
contributing the lion’s share of this
decrease.
Before continuing to the
Operating Budget for the
(l. to r.) NST Board President Mario Carmiciano, Comptroller Robert
Serikstad and Board Treasurer Steve Redlich
12 NORTH SHORE TOWERS COURIER ¢ January 2018