2nd draft of budget

[Jeff Hower]

last week I forwarded the 2nd draft of the 2012 budget.  [it was incorporated w/ the weekly update] we had moved various items into capital, firmed up the prices on the utilities, there is a slight surplus.

 

do you have any questions / suggestions before next wednesday's meeting?  if not, then this draft will be presented for approval

 

pls advise

--
Best regards,

Jeff Hower, R.A.M.
Vice President | CityLine Division 

Cooper Square Realty
601 Surf Avenue
Brooklyn, New York 11224
ph - 718-266-2175 | fax  718-266-2542
Email - jeff....@coopersquare.com

A FirstService Residential Management Company

   

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[Steve Richman]

Jeff:

 

Please do not consider the budget finalized, as I have some questions and concerns.

 

First, it would be great to see a quick reconciliation between the first draft of the budget and the latest version.  We discussed number of changes, such as rates for electricity and gas which hopefully are now locked in and we need to make these locked in rates are properly reflected in the new budget.

 

We also reduced certain maintenance items from the first draft as it contained items of a capital nature.  We need to see what was taken out of the original budget and most importantly, if they are now part of a “capital” budget, determine how such capital budget is to be funded. 

 

We need to include a line item in the budget for reserves to meet Fannie Mae requirements.  Last year we considered the elevator assessment as part of this reserve.  We need to do the same this year for the remaining $200,000 assessment and somehow reflect the balance required.  Some of the balance required will be for the capital items, mentioned in the paragraph above.

 

Can we set up a conference call on Monday am for those who want to participate in a budget discussion? I don’t want to tell unit owners that no increase in common charges are necessary only to hit them for an increase later in the year.

 

Steve

 

Steven L. Richman

Eastbridge Ventures LLC

800 Westchester Avenue - N307

Rye Brook, NY 10573

tel: (212) 856-9200

fax: (646) 349-3951

sric...@eastbridgeventures.com

[Jeff Hower]

Steve, et.al.

responses are below

On Fri, Dec 9, 2011 at 1:52 PM, Steve Richman <sric...@eastbridgeventures.com> wrote:

Jeff:

 

Please do not consider the budget finalized, as I have some questions and concerns.

  - understood

 

First, it would be great to see a quick reconciliation between the first draft of the budget and the latest version.  We discussed number of changes, such as rates for electricity and gas which hopefully are now locked in and we need to make these locked in rates are properly reflected in the new budget.

 

- they have been incorporated [properly reflected]

 

We also reduced certain maintenance items from the first draft as it contained items of a capital nature.  We need to see what was taken out of the original budget and most importantly, if they are now part of a “capital” budget, determine how such capital budget is to be funded. 

 - that was listed on the last page [20 on the pdf]  the discussion is how to fund these items

 

We need to include a line item in the budget for reserves to meet Fannie Mae requirements.  Last year we considered the elevator assessment as part of this reserve.  We need to do the same this year for the remaining $200,000 assessment and somehow reflect the balance required.  Some of the balance required will be for the capital items, mentioned in the paragraph above.

- that too was mentioned - oleg has a good idea on how to present this

 

 

Can we set up a conference call on Monday am for those who want to participate in a budget discussion? I don’t want to tell unit owners that no increase in common charges are necessary only to hit them for an increase later in the year. 

- i'll suggest the time in the weekly update