In our budgetary preparations for next year, our water bill is anticipated to rise 10% again – which for a small building adds 3-4K in expenses, there are union pay requirements, plus the pension surcharge, MTA surcharge which is on gross income, utility increases, which add up as well. From our operating standpoint this will be offset with our new sublet fee and storage room implementation, so we may be lucky to keep maintenance flat. As a driver of financial prudence, we are upgrading our parking amenity, and increasing the fee to a discounted amount compared to Riverdale indoor parking surrounding us, increasing our revenue side.
The arrear issue is one we are monitoring closely, it has increased across the spectrum, and we are looking to work with each shareholder to confirm circumstances and to work with the shareholder to get back on track. For the 2010 budget we are going to go the conservative route and assume a 1% reduction in maintenance revenue due to arrears etc to be safe. If it does not materialize we can adjust at year end or bank the money.
Additional budgetary note – a provision has been made each month to continue funding our reserve fund, to keep focus on the long term needs of the building as part of the budgetary planning process. We maintain a separate project list with funding requirements and time frame and as funding is completed the project commences.
I hope this helps.