The Comparative Study of 2001 Operating Costs was published
last fall and distributed to CNYC member cooperatives and
condominiums and professional subscribers. This annual analysis
provides a framework to help you decide if your own building
is operating economically and efficiently, by analyzing
operating costs. Code numbers are used to identify the participants,
while preserving their anonymity. When the Study is sent
to members whose financial data is included, they are advised
of their code numbers so that they can easily find their
own statistic.
Participating buildings are listed in one of six categories,
cooperatives from the east side of Manhattan, cooperatives
from the west side of Manhattan, small cooperatives (those
with fewer than 100 rooms), large cooperatives from outside
of Manhattan, lofts and condominiums. The Comparative Study
analyzes all data on a per-room basis, beginning with the
current assessment and mortgage figures for participating
buildings and their maintenance fees. It then lists amounts
spent per room on wages, fuel, utilities, repairs and maintenance,
insurance, management fees, administrative costs, water
& sewer fees, property tax, and debt service. When possible,
elevator maintenance and legal and accounting costs are
each listed separately. The Study also presents a second
chart of summary statistics for each category of buildings
analyzed, calculating the averages and medians for each
item, and the average portion of total operating budget
devoted to each.
The Comparative Study is most helpful to the buildings
whose financial data is included, but other buildings will
still find it a very useful diagnostic tool. To maximize
your benefit from the Comparative Study of 2002 Operating
Costs, please be certain that CNYC has the 2002 financial
statement from your cooperative or condominium along with
an accurate room count.
The Comparative Study of 2001 Operating Costs can be purchased
from CNYC for $5. Send your check to CNYC at 250 West 57th Street, NYC 10023-2142, being sure to specify the address
to which to send the Comparative Study.
JULY PROPERTY TAX BILLS INCLUDE ABATEMENTS
FOR QUALIFYING HOMEOWNERS IN CO-OPS AND CONDOS
In mid June, the Department of Finance of the City of New
York sent out property tax bills for fiscal 2004, which
begins July 1, 2003, to all property tax payers. Because
the City Council had not yet fixed the tax rate for the
new fiscal year, these bills were calculated by applying
the 12.517% tax rate established last January to this year’s
assessment. The July bills include provision for the property
tax abatement (since the abatement program continues in
place through June 2004) for qualifying homeowners in cooperatives
and condominiums.
The Department of Finance will recalculate all tax bills
once the new tax rate is established. Adjustments will appear
on all January tax bills– those for individual unit
owners in condominiums and those for cooperative apartment
buildings. As it has done in the past, the Department of
Finance will send a chart to the contact person in all participating
cooperatives in autumn, telling precisely the dollar amount
of exemptions and abatements due to each apartment owner.
The cooperative has until June 30, 2004, to distribute the
abatement.
3.5% INCREASE IN UNION CONTRACT
The new agreement between Local 32-B-32J of the Building
Service Employees International Union and the Realty Advisory
Board on Labor Relations Inc. established in April 23, 2003
calls for average increases in wages and benefits of 3.5%
for the next three years. The benefits increases are instituted
through the commercial agreement, which has an anniversary
date of January first, and wage increases begin on the 21st
of April of each year. See page 5 for full details of this
contract, which applies to most residential buildings in
Manhattan, Brooklyn, Queens and Staten Island. Buildings
in the Bronx and Westchester have a different contract,
which was renegotiated in 2001.
WATER RATES UP 5.5%
Water and sewer costs are of growing concern in New York
city as their increases outpace inflation. These rates are
set annually in May by the Water Board, which must provide
for adequate functioning of the city’s complex water
and sewer services and for long term planning to maintain
and upgrade the system. The Water Board holds hearings in
each of the five boroughs to give rate payers an opportunity
for input before it votes on the rate for water services
in the fiscal year that begins July 1st.
In this challenging year of cost increases everywhere, the
City Council questioned the Water Board’s proposed
rate increase of 6.5%; the Council’s own budget process
would not conclude until June, and thus the Water Board
acts prior to knowing what city funding is to be allocated
to water issues. The City Council Finance and Environmental
Protection Committees convened a joint hearing on April
28, 2003, in the hope of getting the Water Board to reconsider
the magnitude of the increase. The City Council also wanted
the Water Board to revise its calendar and wait until after
the City budget is enacted to set its rates. While the Water
Board didn’t agree to change its pattern of rate setting
in May, it did roll back its rate increase for fiscal 2004
to 5.5%. On July 22, CNYC will present a workshop on water
issues with Warren Liebold of the Department of Environmental
Protection as featured speaker.