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Roosevelt Island Operating Corporation

591 Main Street


New York, NY 10044
Date: October 30, 2013
Re: Serious Concerns About Rivercross Privatization As It Affects All Of Roosevelt Island
Mr. Towns, Ms. Indelicato, Mr. Lewis:
As an Island House resident, I have very serious concerns about the Rivercross Privatization because it
will affect the affordability of Island House, and it will affect the rest of the Island.
In essence, the Rivercross privatization is a windfall giveaway of $300 million where residents will cash
out on property that the State has subsidized, $300 million will walk off the Island, the build will be
transformed into market-rate housing that will leave a legacy on Roosevelt Island of $300 million in
services/revenue to be paid by the other residential complexes of Roosevelt Island, via higher rents or
maintenance charges. According to some Rivercross residents, the $300 million is a Low Number, and
it would be in the $500 million range.
This kind of giveaway is on par with the 2005 Westside Stadium giveaway, which prompted the Public
Authorities Accountability Act. Here's an article in the NY Times:
http://www.nytimes.com/2005/05/19/opinion/19herbert.html
"... The rail yards on which the stadium would be built are owned by the Metropolitan
Transportation Authority, and the development rights have been valued by the M.T.A.'s own
appraisers at $923 million. But the M.T.A. has agreed to sell the rights to this publicly owned
property to Mr. Johnson and the Jets for a mere $250 million. That's a subsidy of nearly $700
million for the mayor's fabulously wealthy buddy. When you add that subsidy to the $600 million
in public funds that the mayor and the governor had pledged from the beginning to hand to Mr.
Johnson, we're talking about a giveaway of $1.3 billion. The rascals used to do this sort of thing
in back rooms, while worrying about headlines, indictments and handcuffs. Now they've figured
out how to do it legally. ..."
I am not opposed to neighbors making profits. As a NYS taxpayer, I am opposed to giveaways that
Mint Millionaires. I am opposed to neighbors making windfall profits that the rest of us will have to pay
for. With $300 million (lost) across 30 years, that's $10 million spread across approximately 5000 units
of housing at a cost of $2000/year for EVERY APARTMENT on Roosevelt Island. Each year Island
House will have almost a million dollars of additional cost (assessments, loss of services) because the
$300 million has walked off the Island. Ditto for Westview. Eastwood/RL with approximately 20% of
the Island's housing will have an extra $2 million cost each year. Southtown, too, will have about a $2
million annual cost. Thus, ALL of us residents have an interest in the Rivercross Privatization. (I've
CCd Mr. Hirschhorn of RY Management and Mr. Kramer of Hudson-Related.)
I request that RIOC immediately investigate these concerns and take appropriate action. Mr. Saft, the
attorney for the Island House Tenants Association, has suggested that these concerns be forwarded to
the Attorney General's office, I will follow his advice. In addition, I will forward my concerns to the
Governor, Inspector General, Authorities Budget Office, and JCOPE. This decades-long financial
burden will affect the affordability of Island House and the rest of the Island: all created so that some
residents can walk off the Island with $300 million in windfall profits on State-subsidized property.
Frank Farance
Island House
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HOW DOES THIS HAPPEN?

The RIOC Board has a variety of conflicts of interests and serious mismanagement (including its
legal department) that permit this to happen.
The ground leases permit assessments.
RIOC has poor finances short-, medium-, and long-term.

RIOC'S CONFLICTS OF INTERESTS


As I have reported in the past, RIOC suffers from serious conflicts of interest. In 2010, 4 of 7 RIOC
Directors were Rivercross residents (presently, 4 of 6 Directors are Rivercross residents).
(1) April-August 2010: Ms. Margie Smith, while a RIOC Board member, was lobbying Micah Kellner
for changes in the RIOC law; he was successful in getting legislation passed in both Assembly
and Senate; Ms. Smith then threw a fundraiser for Mr. Kellner's re-election in her apartment,
with invitations to Rivercross residents (whose just-approved legislation could help Rivercross
privatization, e.g., less Governor control over RIOC Board and RIOC President appointments).
In January 2010 when Ms. Smith became a RIOC Board member, she was directed, via ethics
concerns, to no longer participate in RIRA (Roosevelt Island Residents Association). However,
she continued her participation in RIRA until Summer 2011, a year and a half later. I have
attached RIRA meeting minutes that show Ms. Smith's attendance with other RIRA members at
Mr. Kellner's office for the purpose of lobbying for RIOC legislation (changing composition of
RIOC Board of Directors, changing procedures on how RIOC President is appointed, etc.).
(2) June 2010: Once the legislation passed in the NYS Assembly and Senate, the RIOC Directors
acted upon those conflicts in getting rid of RIOC President Steve Shane over Rivercross
privatization. At the time, Island House privatization (which has no similar windfall cash-out, and
has no residents on the RIOC Board), was progressing well. The firing of Mr. Shane set back
the Island House affordability plan by several years, i.e., his firing only benefited Rivercross (see
below the disagreement Mr. Shane was having with Rivercross).
(3) December 2010 to March 2011: RIOC Board finalizes the Rivercross ground-lease extension,
inconsistent with the RIOC Board resolution, and with an Escape Clause for arbitration (the bait
and switch, resulting in the Escape Clause).
(4) Howard Polivy chairs the RIOC Board Audit Committee (obvious concerns about conflicts of
interest) and now the Real Estate Development Advisory Board (comprised of ONLY Rivercross
residents; obvious concerns about conflicts of interest). Mr. Polivy is misleading about the
billion dollars debt/liability incurred by RIOC, which can give the appearance that RIOC is in
better financial shape than it actually is, possibly with less of a focus upon capturing Rivercross
privatization profits.
(5) Margie Smith (former Rivercross Board member) chairs the RIOC Governance Committee
(obvious concerns about conflicts of interest with her legislative lobbying efforts, outside of
RIOC), and she continued to participate in RIRA activities after being appointed to the RIOC
Board.
(6) September 2010: Jonathan Kalkin and Margie Smith advocate at the RIRA Common Council
meeting to postpone RIOC Board nominee elections (November 2010), which would extend
their own RIOC Board member terms at least two years and retain the Rivercross majority of
Board members, rather than possibly having new RIOC Board members appointed (with
possibly fewer Rivercross residents on RIOC Board) before the Rivercross ground lease
extension was approved (January 2011).
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These concerns about conflicts of interest are important because it seems that RIOC Board members
are making decisions that prioritize their own personal interests (e.g., million dollar profits for each
of those RIOC Board members) rather than the benefit of RIOC, the benefit of RIOC's long-term
financial stability, or the benefit of the Roosevelt Island community. The direct conflict of interest is: the
RIOC Board determines the ground lease and the degree of profits taken out of the sales transaction,
e.g., higher contribution to RIOC (which better for Island's long-term finances) means less profits in the
pockets of 4 of the 6 RIOC Board Members.
$300 million walking off the Island benefits the people who are leaving the Island (including 4 of 6 RIOC
Board members), not us residents who will pay higher rent/maintenance (via RIOC assessments) for
decades to come.
These problems are further aggravated by mismanagement within RIOC's legal department. The
ground lease that defines the share of profits that go back to RIOC/etc.. Unlike other buildings (e.g.,
Southtown 3-5, Island House, and most likely Westview) which had to negotiate these lease provisions
in advance of the ground lease extension, and negotiate with a party (RIOC, ESDC, DHCR, Governor)
that could simply say No, what happened was the RIOC Board approved a ground lease extension that
purportedly was for simply refinancing at Rivercross, yet in fact gave Rivercross an Escape Clause to
get the Governor, ESDC, DHCR, and RIOC out of the loop on hard negotiations.
Here's an excerpt from the minutes of the December 2010 RIOC Board meeting (see attached
document):
"... Ms. Torres provided a brief background of the Rivercross ground lease. She informed the
Board that last week there were more negotiations with the representatives of the Rivercross
residents regarding their desire for a ground lease extension in order to refinance its existing
mortgage. According to Ms. Torres, RIOC is currently negotiating a proposal, which envisions
Rivercross remaining a Mitchell-Lama project. Rivercross' tenant association wants to refinance
their building's existing mortgage tomake major capital improvements to the building. Ms.
Torres asked for the approval of the proposed resolution to allow the Rivercross tenants to
secure refinancing before the currently favorable interest rates go up and the opportunity is
lost. ..."
The minutes (attached) of the January 2011 RIOC Board meeting say:
"... The second part of the resolution gives the authorization for the President to negotiate and
enter into the various agreements contemplated by the term sheet. Further responding to Mr.
Shinozaki's inquiry, Mr. Leitner noted that unless there was a significant and material change to
the terms of the term sheet, this is the final time this matter would come for Board approval. He
also noted that the purpose of the ground lease extension was to assist Rivercross to refinance
its existing mortgage and make repairs to the building."
What was promised, including the Board Resolution, did not happen (see January 2011 minutes). The
Rivercross ground lease extension has a particular BENEFIT that no other Roosevelt Island ground
lease has: the ability to send to arbitration any dispute over the profits on sales of apartments, i.e., an
Escape Clause (see Rivercross ground lease extension excerpt below). Furthermore, unlike the Island
House, Southtown, etc. ground leases and extensions, the Rivercross Ground Lease has no provisions
for assessments (known as community facilities payments, etc.), e.g., even though Island House will be
paying a million dollars a year cost.
I'm sure every building would like to not have the Governor, ESDC, DHCR, and RIOC driving a hard
negotiating stance: Wouldn't everyone love to make windfall profits, or to skip paying RIOC a portion of
their sales profits? I've heard Mr. Kramer of Hudson-Related was unhappy about having to pay too
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much ground lease money on one of his Southtown buildings (ST #5?). If Mr. Kramer had the
Rivercross Escape Clause, then he could just go to arbitration to renegotiate portions of the ground
lease. And ditto for Island House and Westview: if we had the Rivercross Escape Clause we could
have gone to arbitration, our ground lease extension would have taken a year to negotiate instead of a
decade. As I've learned from this decade of negotiations: What were the Governor, ESDC, DHCR, and
RIOC asking all along? They couldn't see tenants making obscene profits off a project that was
funded/subsidized by the State, and they wanted RIOC (and ESDC) to get their fair share of money.
This Rivercross-only benefit bestowed by the RIOC Board (of which 4 of 7 members were from
Rivercross) is inconsistent with the RIOC Board minutes and resolution, which call for staying in
Mitchell-Lama. The actual terms negotiated permit an exit from M-L, and give the Escape Clause that
gets RIOC out of its hard negotiating stance -- a bait and switch.
Once the RIOC Board resolution was approved, Rivercross got a $50 million 10-year loan with interest
only and a balloon payment, see reporting on this in July 2011 (Roosevelt Islander Blog,
"http://rooseveltislander.blogspot.com/2011/07/roosevelt-island-rivercross-mitchell.html"). Aside from
some of the bad economics (see the blog article), it sets up Rivercross as being forced into a marketrate buyout, i.e., backing into a market-rate conversion without negotiating it directly, and having an
Escape Clause (arbitration) that allows them to complete the market-rate conversion, and leaving the
Governor, ESDC, DHCR, and RIOC powerless to stop it -- unlike other M-L buildings on Roosevelt
Island which had to negotiate directly with RIOC/etc., who had a hard stance.
In the Rivercross ground lease extension (attached), provisions 4-5 were unnecessary if the purpose of
the ground lease extension were only addressing "refinancing" according to RIOC President Leslie
Torres: "which envisions Rivercross remaining a Mitchell-Lama project. Rivercross' tenant association
wants to refinance their building's existing mortgage to make major capital improvements to the
building".
I don't understand how the RIOC General Counsel can permit such an inconsistent implementation of
the RIOC Board resolution: reading the Board resolution, one gets the idea this is simply about
enabling "refinancing" and "remaining a Mitchell-Lama project", but the Rivercross ground lease
extension is very different. In the Board meeting minutes, there was no disclosure by RIOC Board
members that they had a conflict of interest in approving the Board resolution to extend the ground
lease of their apartments -- this is unconscionable for a General Counsel to overlook such a concern.
Furthermore, I have FOILed RIOC for documents declaring/reporting interests, including RIOC Board
members, but RIOC legal department reports there are no such records. Given these kinds of conflicts,
it seems that the RIOC legal department is doing a terrible job understanding conflicting interests, and
guiding this public authority on proper procedure and implementation of board resolutions.

ASSESSMENTS VIA GROUND LEASE


Since the 1990's, the ground leases and ground lease extensions for residential buildings included
provisions for future assessments (see attached excerpts from Island House and Southtown 5). I
presume this was included because RIOC's financial viability was very weak in the 1990's, and still is
true today. For example, Southtown 5 (415 Main) has the following wording in its ground lease:
"Section 40.1 (a) Charges for Island Services. Landlord may impose on Tenant a charge, in
addition to Base Rent, for the furnishing of any Island Service, except for services referred to in
Sections 3.1 [Public Safety fees, which are calculated separately], 11.2 [municipal utilities,
water/sewer] and 40.4 [AVAC, Refuse Disposal] and charged under such Sections, but only if
Landlord imposes a charge for such Island Service on all other lessees of buildings on
Roosevelt Island containing residential apartments, its pro-rata share ..."

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RIOC'S POOR FINANCES


I have attached RIOC's most recent approved budget (2013-2014) and audited financials (2012-2013).
There are three main areas of financial problems for RIOC: about 5-10 years from now, about 20-30
years from now, and about 55 years from now.
The 5-10 year problem is the bad real estate deals of the 1990's (Octagon and Southtown) coming due.
RIOC "bet the farm" on Southtown 7-9. If Southtown doesn't work out, then in 2015 (that's in about a
year, according to RIOC's approved budget), RIOC will have negative cash flow, and run out of money
around 2018 (see Page 15, Budget Risks).
What happens when RIOC runs out of money? Since the 1990's (presumably when some State person
saw lots of long-term financial problems for RIOC), they started putting in these Community Facilities
Fees (or similarly named) provisions in the ground leases and extensions, which allows RIOC to do
assessments.
So if RIOC has a $10 million negative cash flow (reasonable, according to RIOC's financials) and
assuming a straight-line assessment across the 5000 units of housing then, for example, Eastwood/RL
with 20% of those units will be paying an additional $2 million assessment. Every building will be
assessed $2000/year on every apartment. Of course, everyone will be very upset because we'll have
this financial calamity (no different than taxpayers elsewhere who are upset about increases in property
taxes).
But it gets worse. About 20-25 years from now, there will be even bigger bills because the really
expensive items will all need work: tram renovation again, seawall, AVAC, etc.. Because RIOC will be
giving back the Goldwater land to the City (for Cornell), RIOC won't have a revenue stream because
there won't be a ground lease to generate revenue.
In the long-term, there's the billion dollar debt/liability for RIOC, which is presently about $200K per
apartment. Note: The RIOC 2012-2013 Audited Financials, note 9(d) pages 26-27, are erroneous (they
don't include additional similar liabilities since the 1988 Revenue Allocation Agreement) and improperly
state the value, according to Generally Accepted Accounting Principles (the liabilities are stated in their
1988 value, not their present value with interest accrued, which is about a billion dollars).
However, if there were $300 million in Rivercross profits to go to the Island, that could put us in better
financial shape for the next 30-40 years, and worry less about the urgent need for success on
Southtown 7-9.
My sense was, at the time, Mr. Shane understood all this because he was a real estate attorney who
had deep knowledge of Mitchell-Lama deals in his earlier career work.

WHY WINDFALL PROFITS ARE NOT DESERVED IN RIVERCROSS PRIVATIZATION


While Mr. Shane was still RIOC President, he explained that NY State had made a huge investment in
Roosevelt Island and what people see now in market value was facilitated by the States' investment.
For example, this investment afforded paying $10,000-ish for Rivercross apartments. And, because of
all the benefits of Mitchell-Lama (M-L) *throughout* the duration of the program, the owners had
already consumed their benefits and were not entitled to the present market value and windfall profits.
In Island House and Westview, those arguments (Mr. Shane's advancing the State's interest) helped
preserve affordability: funding reserve, maintenance, and other affordability components, while RIOC

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got its fair share to support the Island's finances. This, in fact, works towards the favor of the tenants of
those buildings to keep the building affordable long-term.
However, for Rivercross the owners are the tenants, so what Mr. Shane was fighting in Rivercross was
the unjust taking of windfall profits and, unfortunately, 4 of the 7 members of the RIOC Board were from
Rivercross. (Note: I made these points in Summer 2010 when Mr. Shane was fired.)
The following are some rough back-of-envelope numbers to get a sense of why windfall profits should
not go to Rivercross tenants. To get a refined Deserved Value, actual numbers would need to be
supplied, based upon historical data. There are three sets of numbers that are necessary to determine
that actual Deserved Value. To simplify, I'll assume the person purchased their apartment in 1977 and
kept it since.
The first number (X) is the purchase price of the apartment. Many Rivercross apartments were
purchased for very low prices (approximately $10,000) and remained low because profit-taking was
limited. The second number (Y) is that the building had a mortgage, which was paid off. I've heard the
average cost per apartment (for the 360 apartments) was $60,000.
The third number (Z) is the benefit each tenant received, which includes the tax benefits and low
mortgages because of the M-L program. I guestimate this by comparing M-L rentals to market rate
rentals, which I will use $200/month in 1977 as a differential (actual number is probably higher), and an
annual increase to this benefit of 6% (rate R2), which seems commonplace in real estate, but would
actually be replaced by historical numbers from, say, the Rent Guidelines Board.
This third number would increase every year: in 1977 the consumed benefit would be $200/month,
1978 it would be $212, and 1979 it would be $225, and so on. Even at at 6% rate (rate R2), the number
in 2013 would be approximately $1629, i.e., the cost of a two-bedroom Rivercross is at least $1629 less
per month (with tax benefits, etc. factored in) than a comparable market rate 2-bedroom apartment.
The first two numbers (X, Y) are the value of the asset: the purchase price + the underlying mortgage
(I'm ignoring the fact that the mortgage was paid over time, which would further decrease the value of
the investment). So in 1977 let's say the apartment was worth $70,000 ($10K purchase + $60K
mortgage). With the long-term appreciation of real estate at 6% (rate R1), this means the $70,000
asset in 1977, would then be worth $74,200 in 1978.
However, to get the value of what is deserved (Deserved Value), it's not just the raw appreciation, it's
also the additional benefits that are consumed every year that must be subtracted -- Mr. Shane's point.
With a consumed benefit of $200/month ($2400) in 1977, this would mean that a $70,000 asset would
subtract the $2400, which means $67,600 is the basis for then adding the 6% (rate R1) increase in
value, which would be $71,656 (not $74,200) for 1978.
In 1978, the monthly consumed benefit is now $212 ($200 * R2), so the result is $71,656 minus $212 *
12 ($200 * R2 * 12), which is $71,565 - $2,544, which equals $69,112; then it is appreciated by 6% (R1),
which gives $73,259 as the deserved value for year 1979.
Rolling that forward to 2013, the balance is a negative (-$127,159): so even if the Rivercross tenant
received zero dollars for selling their apartment, they would have come out ahead with $127K in other
benefits consumed over the years. (Note: Even if the numbers are tweaked with smaller growth of
benefit, the result is still negative in 2013.)
Essentially, that is what got Mr. Shane in trouble with the majority of the RIOC Board: there was no
reason to give windfall profits to the Rivercross tenants, who had already received their benefits during
the years of the M-L program. The windfall profits should go to the State (RIOC, etc.), who built the
infrastructure to make this all possible.
Page 6

GOVERNMENT RELATIONS COMMITTEE MAY 5, 2010

Government Relations Committee (GRC)


Ashton Barfield (Chair)
Erin Feely-Nahem
Russell Fields
Sherie Helstien
Matthew Katz
Ellen Polivy

Report from RIRA Government


Relations Committee
Margie Smith's involvement in
legislative lobbying is
recorded below

Maple Tree Group (MTG) subcommittee


Ashton Barfield
David Bauer
Linda Heimer
Sherie Helstien
Matthew Katz
Dick Lutz
Nurit Marcus
Joyce Mincheff
Margie Smith
There hasnt been any GRC activity in the past month, but MTG has been busy.
MTG Activity
Six of us (Barfield, Helstien, Katz, Lutz, Mincheff, Smith) met Thursday, April 29, with
Assemblymember Micah Kellner and his Chief of Staff, Paul Curtis, to discuss the contents of, and
strategy for, Micahs pending legislation regarding direct community elections of RIOC Board
members (to replace our current system, in which the community elections produce suggestions for
appointment by the governor).
(There was a preliminary meeting with Paul the previous Thursday, attended by these six plus Linda
Heimer, who was unable to make it on the 29th. Bauer and Marcus were unable to attend either
session.)
The political realities of New York State government (legislature and governor), particularly the
reluctance of any governor to reduce gubernatorial power, dictate that the legislation is not as farreaching as we would like, but, if passed, it will make substantial progress toward our direct-election
goal. We ultimately endorsed Micahs strategy of going for the half-loaf that may be achievable now,
with the intention of continuing to seek the rest (plus utilizing other mechanisms for making significant
improvements in Roosevelt Island governance).
We have also requested further information about the term expirations for the RIOC Board seats and
the appointment dates for the current resident occupants, to determine when elections will be needed
for each Board member, and to evaluate how to coordinate RIOC Board elections with the even-yearNovember Common Council elections.

Ashton Barfield
April 30, 2010

MINUTES OF THE DECEMBER 15, 2010 MEETING OF THE


ROOSEVELT ISLAND OPERATING CORPORATION
BOARD OF DIRECTORS

Roosevelt Island
Operating Corporation
of the State of New York
591 Main Street
Roosevelt Island, NY 10044
(212) 832-4540
rioc.ny.gov
Andrew M. Cuomo
Governor
Leslie Torres
President
Chief Executive Officer
Fernando Martinez
Vice President
Operations
Kenneth A. Leitner
Vice President
General Counsel
Steven Chironis
Vice President
Chief Financial Officer
Board of Directors
Brian Lawlor
Chairperson
Fay Fryer Christian
Katherine Teets Grimm
Jonathan Kalkin
David Kraut
Robert L. Megna
Howard Polivy
Michael Shinozaki
Margaret Smith

A meeting of the Board of Directors was held at the Manhattan Park


Community Center, 8 River Road, Roosevelt Island on December 15, 2010 at 5:30
p.m. 1
Excerpt from of December 2010
RIOC Board meeting minutes
Directors Present:
Brian Lawlor
RIOC Chair and Commissioner, the New
York State Division of Housing and Community
Renewal (DHCR)
Meghan Anderson
Representing Robert L. Megna, Director, the New
York State Division of Budget (NYS DOB)
Fay Fryer Christian
Director
Dr. Katherine Teets Grimm Director
Jonathan Kalkin
Director
David Kraut
Director
Howard Polivy
Director
Margaret Smith
Director
Directors Absent:
Michael Shinozaki

Director

Officers and Staff Attending:


Leslie Torres
President/Chief Executive Officer
Kenneth A. Leitner
Vice President/General Counsel
Fernando Martinez
Vice President for Operations
Steven Chironis
Vice President/Chief Financial Officer
Arthur G. Eliav
Assistant General Counsel
Muneshwar Jagdharry
Comptroller
Lada Mirzalieva
Paralegal
Alexander Snedkov
Director of Engineering Department/Incoming
Thomas Turcic
Director of Engineering Department/Outgoing
Others Attending:
Robert Atterbury
Armando Cordova
Matthew Katz

Assistant, New York State Assembly Member Micah


Z. Kellner
Aerial Tramway Manager, Leitner-Poma of America,
Inc.
President, Roosevelt Island Residents Association
(RIRA)

The RIOC Board Meeting commenced following a public comment period, which was not part of the
RIOC Board Meeting.

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Section 3.

that this resolution shall take effect immediately.


*

Mr. Lawlor noted that a new item, the authorization regarding the extension of the
Rivercross ground lease and transmission of explanatory statement, has been added to the
agenda. Although the item was marked as number seven, Mr. Lawlor suggested discussing this
item prior to the sixth item of new business.
Ms. Torres provided a brief background of the Rivercross ground lease. She informed
the Board that last week there were more negotiations with the representatives of the Rivercross
residents regarding their desire for a ground lease extension in order to refinance its existing
mortgage. According to Ms. Torres, RIOC is currently negotiating a proposal, which envisions
Rivercross remaining a Mitchell-Lama project. Rivercross tenant association wants to refinance
their buildings existing mortgage to make major capital improvements to the building. Ms.
Torres asked for the approval of the proposed resolution to allow the Rivercross tenants to secure
refinancing before the currently favorable interest rates go up and the opportunity is lost.
In response to Ms. Smiths question, Mr. Leitner explained that the resolution currently
before the Board contemplates the preparation of an extension of the ground lease to enable
Rivercross to remain a Mitchell-Lama project. He noted that the proposed resolution facilitates
the Rivercross residents efforts in two ways: (1) it allows for the preparation of a reasonable
lease extension sufficient to obtain refinancing commitments from a lender; and (2) it authorized
the Corporation to send out an explanatory statement required under the Public Authority Law to
expedite the process of legal compliance.
In response to Mr. Krauts question, Mr. Leitner explained that the next step would be for
Rivercross representatives to come to RIOC with a specific proposal containing the terms and
conditions of an actual refinance offer from a lender. Mr. Lawlor noted that any lease extension
to be signed will be consistent with the terms of the proposed resolution, including a 3% rent
increase and no increase in the tax equivalency payments. Mr. Leitner also noted that the
remaining terms of the lease extension would be negotiated and summarized into a term-sheet.
Furthermore, an appraisal would be prepared. Once the term-sheet and the appraisal are
finalized, a comprehensive deal would be brought back before the Board for a final
authorization, pursuant to the Public Authorities Law.
Mr. Kalkin noted that the extension of the Rivercross ground lease is a matter where time
is of the essence. However, he also noted that it has been a process that has been reviewed by
the Real Estate Development Advisory Committee (REDAC) and is not a last minute deal. In
turn, Mr. Kraut stated that while the time might be of the essence for Rivercross, it is not
necessarily so for RIOC. He also noted that REDAC has not voted on this matter. Nevertheless,
Mr. Kraut stated that he will vote for the measure because he would like for his neighbors in
Rivercross to improve their building. He also stated that he would hope to see, in any future
deals, that Rivercross and other WIRE buildings contribute to RIOC and Roosevelt Island in a
way that is similar to Eastwood and the other projects on the Island.

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Upon a motion duly made, seconded and carried by a unanimous vote in favor (Mr.
Lawlor, Ms. Anderson, Ms. Christian, Dr. Grimm, Mr. Kalkin, Mr. Kraut, Mr. Polivy and Ms.
Smith), the following resolution was ADOPTED:
RESOLUTION
AUTHORIZATION REGARDING EXTENSION OF RIVERCROSS GROUND LEASE AND
TRANSMISSION OF EXPLANATORY STATEMENT
_____________________________________________________________________________
WHEREAS, Rivercross Tenants Corp. (Rivercross) is the lessee under a
Ground Lease from the New York State Urban Development Corporation (UDC), as amended
and restated November 30, 1977 (the Ground Lease); and
WHEREAS, UDC's interest in the Ground Lease has been assigned to RIOC; and
WHEREAS, Rivercross wishes to refinance the mortgage on its property in order to
raise funds for necessary capital improvements and to keep the project in the Mitchell-Lama
program, and, in order to do so, needs to extend the term of the Ground Lease, which currently
expires in 2028;
now, therefore be it

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RESOLVED, that the President of RIOC be, and she hereby is, authorized and
directed to cause an extension of the Ground Lease to be prepared reflecting, that so long as
Rivercross continues in the Mitchell-Lama program (i) the term of the Ground Lease shall be
extended for an additional term of years sufficient to facilitate the proposed refinancing by
Rivercross, (ii) the Base Ground Rent payable to RIOC shall continue at the current level of
$2,624.48 per month, escalating 3% as of January 1, 2012, and cumulatively thereafter on each
anniversary of such date during the term,(iii) the Tax Equivalent Payments to the ESDC shall
continue to be determined under the "Shelter Rent" formula in accordance with the letter
between Rivercross and ESDC dated February 5, 2008, and (iv) and containing such other terms
as are mutually satisfactory to both parties, and in compliance with the terms of the Public
Authorities Law; and be it further

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RESOLVED, that the President be, and she hereby is, authorized to cause an
explanatory statement of the proposed transaction to be prepared and transmitted to those parties
entitled to receive such a statement under the Public Authorities Law; and be it further

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RESOLVED, that the President/Chief Executive Officer or her designee be, and she
hereby is, authorized and directed to take such further actions and execute such further
documents as are necessary or desirable to effectuate the foregoing; and be it further

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RESOLVED, that these resolutions shall take effect immediately.


*
The sixth item of new business was the presentation of the FY 2010-2011 QTR 2
procurement report.

MINUTES OF THE JANUARY 19, 2011 MEETING OF THE


ROOSEVELT ISLAND OPERATING CORPORATION
BOARD OF DIRECTORS
A meeting of the Board of Directors was held at the Manhattan Park
Community Center, 8 River Road, Roosevelt Island on January 19, 2011 at 5:30 p.m. 1
Roosevelt Island
Operating Corporation
of the State of New York
591 Main Street
Roosevelt Island, NY 10044
(212) 832-4540
rioc.ny.gov
Andrew M. Cuomo
Governor
Leslie Torres
President
Chief Executive Officer
Fernando Martinez
Vice President
Operations
Kenneth A. Leitner
Vice President
General Counsel
Steven Chironis
Vice President
Chief Financial Officer
Board of Directors
Brian Lawlor
Chairperson
Fay Fryer Christian
Katherine Teets Grimm
Jonathan Kalkin
David Kraut
Robert L. Megna
Howard Polivy
Michael Shinozaki
Margaret Smith

Directors Present:
Garry Connor

Representing Brian Lawlor, RIOC Chair and


Commissioner, the New York State Division of
Housing and Community Renewal (DHCR)
Fay Fryer Christian
Director
2
Excerpt from of January 2011
Dr. Katherine Teets Grimm Director
RIOC Board meeting minutes
Jonathan Kalkin
Director
David Kraut
Director
Howard Polivy
Director
Michael Shinozaki
Director
Margaret Smith
Director
Directors Absent
Robert L. Megna

Director, the New York State Division of Budget


(NYS DOB)

Officers and Staff Attending:


Leslie Torres
President/Chief Executive Officer
Kenneth A. Leitner
Vice President/General Counsel
Fernando Martinez
Vice President of Operations
Steven Chironis
Vice President/Chief Financial Officer
Arthur G. Eliav
Assistant General Counsel
Muneshwar Jagdharry
Comptroller
William Yang
Legal Intern
Others Attending:
Robert Atterbury

Assistant, New York State Assembly Member Micah


Z. Kellner

The RIOC Board Meeting commenced following a public comment period, which was not part
of the RIOC Board Meeting.
2
Dr. Grimm arrived during the Presidents Report.

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February 23, 2011 at 5:30 p.m.


April 6, 2011 at 5:30 p.m.
May 18, 2011 at 5:30 p.m.
June 29, 2011 at 5:30 p.m.
August 3, 2011 at 5:30 p.m.
September 21, 2011 at 5:30 p.m.
November 9, 2011 at 5:30 p.m.
December 14, 2011 at 5:30 p.m.
Section 2.

that the Secretary is hereby authorized, upon the request of the


Chairperson or upon the request of three (3) or more of the Directors to the
Secretary, to cancel or reschedule any regular meetings of the Board of
Directors previously authorized by the Board of Directors, and to provide
written notice of the cancellation, if personally or by telefacsimile, at least
72 hours prior to the authorized regular meeting date, or if by mail, at least
ten days prior thereto, in accordance with the provisions of Article III,
Section 2 of the By-Laws; and

Section 3.

that this resolution supplements and amends the resolution adopted on


December 15, 2010, which resolution, as supplemented and amended, is
hereby ratified and confirmed, effective immediately.
*

The eighth item of new business was the presentation of the FY 2010-2011 QTR 3
procurement report.
Mr. Jagdharry briefly outlined the highlights of the third quarter procurement report.
Ms. Smith requested a more detailed report on the expenses from the Tram opening
event, including the cost of the scarves that were given out, as well as the media relations
contract. Furthermore, she requested to receive more information on the costs of benches and
waste receptacles across the Island. Mr. Jagdharry stated that the requested materials will be
provided to the Board.
*
Mr. Connor noted that Ms. Torres requested to reopen the Presidents Report. Ms. Torres
stated that the negotiations over Rivercross were recently completed, and that certain documents
were previously distributed to the Board including: (1) the proposed resolution authorizing RIOC
to enter into an extension of the ground lease and related documents; (2) term sheet; (3)
supporting memorandum from Jones Lang LaSalle; (4) financial analysis by Jones Lang LaSalle;
and (5) an appraisal. Therefore, Ms. Torres inquired whether there is a Board consensus to add
this item to the meetings agenda.

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Upon a motion duly made, seconded and carried by a unanimous vote in favor (Mr.
Connor, Ms. Christian, Dr. Grimm, Mr. Kalkin, Mr. Kraut, Mr. Polivy, Mr. Shinozaki, and Ms.
Smith), the proposed resolution authorizing RIOC to enter into an extension of the ground lease
and related documents was added to the agenda of this Board meeting.
In response to Ms. Smiths question, Ms. Torres stated that the present resolution is in
furtherance of the previous resolution on this matter, which was approved at the last Board
meeting. As such, now that the terms had been negotiated, an approval package is being
presented to the Board. In response to Mr. Krauts question, Mr. Leitner noted that, under the
proposed agreement, as stated in term sheet item nine, the base ground rent paid to the Empire
State Development Corporation (ESDC) would remain the same, while the amount paid to
RIOC will increase by 4% compounded annually. Mr. Shinozaki noted that the entire buildings
rent is less than that of some individual residential units in other buildings on Roosevelt Island.
Mr. Kalkin noted that the low rent was consistent with the purpose of Mitchell-Llama properties
to create and preserve affordable housing.
In response to Mr. Shinozakis inquiry, Mr. Leitner explained that there were two parts to
the resolution. The first part contains or refers to the materials that the Board is required to
review, as well as to the approvals and findings that need to be made in compliance with the
Public Authorities Law (PAL). The second part of the resolution gives the authorization for
the President to negotiate and enter into the various agreements contemplated by the term sheet.
Further responding to Mr. Shinozakis inquiry, Mr. Leitner noted that unless there was a
significant and material change to the terms of the term sheet, this is the final time this matter
would come for Board approval. He also noted that the purpose of the ground lease extension
was to assist Rivercross to refinance its existing mortgage and make repairs to the building. In
response to Mr. Krauts inquiry, Mr. Chironis stated he is confident in Jones Lang LaSalles
ability to deliver competent service.
Upon a motion duly made, seconded and carried by a vote of seven in favor (Mr. Connor,
Ms. Christian, Dr. Grimm, Mr. Kalkin, Mr. Kraut, Mr. Polivy, and Ms. Smith) and one opposed
(Mr. Shinozaki), the following resolution was ADOPTED.
RESOLUTION
AUTHORIZATION TO EXTEND GROUND LEASE
WITH RIVERCROSS TENANTS CORP.
AND ENTER INTO RELATED AGREEMENTS

WHEREAS, Rivercross Tenants Corp. (Rivercross), is the lessee under a Ground


Lease, from the New York State Urban Development Corporation (UDC), as amended and
restated November 30, 1977 (the Ground Lease); and
WHEREAS, UDC's interest in the Ground Lease has been assigned to RIOC; and

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WHEREAS, Rivercross wishes to refinance the mortgage on its property in order to raise
funds for necessary capital improvements and to keep the project in the Mitchell-Lama program,
and, in order to do so, needs to extend the term of the Ground Lease, which currently expires in
2028; and
WHEREAS, by resolution of the Board of Directors of RIOC dated December 15, 2010,
the President of RIOC was authorized and directed to take such steps to negotiate an appropriate
amendment and extension of the Ground Lease on terms mutually satisfactory to both parties,
and in compliance with the terms of the Public Authorities Law, and to cause an explanatory
statement of the proposed transaction to be prepared and transmitted to those parties entitled to
receive same under the Public Authorities Law; and
WHEREAS, an explanatory statement was forwarded to such parties on December 17,
2010; and
WHEREAS, in conjunction with the extension of the Ground Lease, the parties also
intend to: (i) extend the term of the sublease to RIOC of the commercial space in the building
(the "Sublease"), (ii) provide for the continued payment of the Public Service Safety Fee during
the extended term, and (iii) provide for the reimbursement to RIOC of the expenses it will incur
in connection with these transactions; and
WHEREAS, RIOC's real estate advisor, Jones Lang LaSalle, prepared a (i) term sheet
dated January 16, 2011 setting forth the terms of the above-referenced agreements, a copy of
which is annexed to this Resolution, and (ii) a memorandum dated January 16, 2011 in support
of this transaction, which was distributed to the members of the Board of Directors of RIOC; and
WHEREAS, RIOC obtained an appraisal for this transaction, a copy of which has been
distributed to the members of the Board of Directors of RIOC;
NOW, THEREFORE, The Board of Directors finds and resolves as follows:
RESOLVED, that the Board finds as follows:
Section 1.

that the extension of the term of the Ground Lease is necessary in order to
allow Rivercross to refinance its existing mortgage in order to take
advantage of the low interest rates currently available in the market, while
still remaining in the Mitchell-Lama program, thereby enhancing
affordability for all its residents;

Section 2.

the proceeds of the refinancing will permit Rivercross to perform major


capital improvements to the 35 year old building, including many
improvements which will increase energy efficiency, resulting to further
cost efficiencies;

10

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Section 3.

the result of these actions will help RIOC maintain high quality, affordable
housing stock on Roosevelt Island, which is within the mission and
statutory purposes of RIOC;

Section 4.

since Rivercross has a leasehold interest in the Property, there is no


reasonable alternative to this transaction which would achieve the same
purpose;

and be it further
RESOLVED, that the President of RIOC be, and she hereby is, authorized and directed
to negotiate and enter into, in compliance with the terms of the Public Authorities Law, an
appropriate amendment and extension of the Ground Lease, an amendment and extension of the
Sublease of the commercial space, an agreement regarding payment of the Public Safety Service
Fee during the extended term, and a reimbursement agreement, all substantially on the terms and
conditions set forth in the attached term sheet; and be it further
RESOLVED, that the President/Chief Executive Officer or her designee be, and she
hereby is, authorized and directed to take such further actions and execute such further
documents as are necessary or desirable to effectuate the foregoing; and be it further
RESOLVED, that these resolutions shall take effect immediately.
*
COMMITTEE REPORTS
AUDIT COMMITTEE
Mr. Kraut stated that the Audit Committee did not meet.
GOVERNANCE COMMITTEE
Mr. Kraut stated that the Governance Committee did not meet.
OPERATIONS ADVISORY COMMITTEE
Mr. Kalkin reminded the Board that the Operations Advisory Committee last met on
December 9, 2010. Mr. Kalkin noted that, among other topics discussed, the Committee went
over the bus schedule, the LED lighting fixtures, the parking sensor pilot program, the possible
charging station at Motorgate, and the ferry dock service. He also announced that RIOC is now a
part of the Clean Cities project, which entails a non-binding commitment to certain
environmental protection policies.
REAL ESTATE DEVELOPMENT ADVISORY COMMITTEE

11

Rivercross Ground Lease Extension,


see paragraphs 4, 5, and 6.
AMENDMENT #1 TO RESTATED GROUND LEASE

3/28/11

AMENDMENT #1 TO RESTATED GROUND LEASE, dated as of


March 2q+; 2011 (the "Effective Date") by and between
RIVERCROSS TENANTS' CORP. ("Housing Company") and ROOSEVELT
ISLAND OPERATING CORPORATION (" RIOC" )
WHEREAS, Housing Company, as successor in interest to
North Town Phase IV Associates, is the lessee under a Ground
Lease, from New York State Urban Development Corporation
("UDC"), as amended and restated November 30, 1977
(the
"Restated Ground Lease"); and
WHEREAS, UDC's rights under the Restated Ground Lease
have been assigned to RIOC;
WHEREAS, in connection with the assignment of UDC's
rights under the Restated Ground Lease to RIOC, pursuant to a
Revenue Allocation Agreement as amended ("RAA") between UDC
and RIOC, certain portions of the Basic Rent including all
"Tax Equivalent" payments payable under the Restated Ground
Lease were payable to UDC (hereinafter sometimes "ESDC") in
lieu of RIOC; and
WHEREAS, Housing Company and RIOC now wish to amend the
Restated Ground Lease to provide for the extension of the term
of the Restated Ground Lease from 2028 to 2068 and to provide
for the rent payable from and after the date of execution of
this Amendment.
NOW, THEREFORE, in consideration of the mutual
agreements herein contained, Housing Company and RJOC hereby
agree as follows:
1. All capitalized terms used herein shall have the meanings
set forth in the Restated Ground Lease, unless
specifically defined in this Amendment.
2. Paragraph 3 of the Restated Ground Lease is hereby
amended to extend the term of the Restated Ground Lease
from 2028 through 2068 and shall read in its entirety as
follows:
"The term of this Lease commenced on April 26, 1973
and shall expire (unless this Lease shall sooner
terminate as provided herein) at midnight, December
22,2068."
3. Paragraph 6 of the Restated Ground Lease is hereby
1

amended in its entirety to read as follows:


"6. Adjustment of Basic Rent.
A. In addition to the Residential Ground Rent payable to
Empire State Development Corp ("ESDC"), on behalf of
UDC, pursuant to subparagraph (1) (x) Of Paragraph 5(A)
hereof, Housing Company is paying additional
Residential Ground Rent to RIOC of $2,624.48 per
month. Effective on the first (1 st ) anniversary of the
Effective Date, the monthly payment to RIOC shall
increase by four per cent (4%) to $2,729.46, and on
each anniversary of the Effective Date thereafter
during the term of this Restated Ground Lease, the
monthly payment to RIOC shall increase by four per
cent (4%) compounded annually, so that the additional
Residential Ground Rent payable to RIOC during each
twelve month period following the anniversary of the
Effective Date shall be 104% of the amount paid during
the immediately preceding twelve month period.
B. The Residential Ground Rent and the Commercial Ground
Rent each shall be adjusted, on each Rent Adjustment
Date, to an amount equal to the Then Current Ground
Rent payable immediately prior to such increase,
provided, however, that in no event shall the
Residential Ground Rent or the Commercial Ground Rent
be decreased if the Then Current Ground Rent on such
Rent Adjustment Date is less than the Residential
Ground Rent or the Commercial Ground Rent.
Notwithstanding any provision of the Restated Ground
Lease to the contrary, the Rent Adjustment Date will
not occur or be deemed to have occurred unless and
until Housing Company is no longer a Mitchell-Lama
Development under Article II of the Private Housing
Finance Law ("PHFL") and subject to the supervision
and direction of the Commissioner of New York State
Homes and Community Renewal (referred to herein as
"HCR" and formerly known as the New York State
Division of Housing and Community Renewal), or any
successor thereto, as and to the extent required under
such statute.
C. On each Tax Equivalent Adjustment Date the tax
equivalent set forth in subparagraph l(y) of Paragraph
5A hereof shall be increased to an amount equal to the
Tax Equivalent for Conventionally Financed Housing in
effect immediately prior to such increase; it being
understood that, as set forth in a letter agreement
2

dated February 5, 2008, by and between Housing Company


and ESDC, the "Tax Equivalent Adjustment Date", as
defined in the Restated Ground Lease, has not occurred
and will not occur or be deemed to have occurred
unless and until Housing Company is no longer a
Mitchell-Lama development under Article II of the PHFL
and subject to the supervision and direction of the
Commissioner of HCR, as and to the extent required
under such statute."
4.
In the event that Housing Company is no longer a
Mitchell-Lama development under Article II of the PHFL and
subject to the supervision and direction of the
Commissioner of HCR, but leaves the Mitchell-Lama program
under an affordability plan approved by the Commissioner of
HCR, the Residential Ground Rent and Commercial Ground Rent
payable under the Restated Ground Lease shall be as agreed
to at such time.
If Housing Company leaves the MitchellLama program, the parties shall also agree as to payments
to RIOC in lieu of mortgage recording tax or sales and
compensating use taxes on construction materials
incorporated into Housing Company's property if Housing
Company is able to obtain an exemption from or abatement of
such taxes due to RIOC's status.
5.
In the event that Housing Company is no longer a
Mitchell-Lama development under Article II of the PHFL and
subject to the supervision and direction of the
Commissioner of HCR, but leaves the Mitchell-Lama program
under a plan which has not been approved as an
affordability plan by the Commissioner of HCR, the
Financial Terms (as defined in the succeeding sentence) of
the Restated Ground Lease shall be adjusted based on the
form of conversion Housing Company utilizes in leaving the
Mitchell-Lama program.
The "Financial Terms" of the
Restated Ground Lease shall be adjusted to achieve a market
rate rent, and shall include escalating to market rate the
Residential Ground Rent and the Commercial Ground Rent, as
well as imposing other fees and charges that RIOC then
typically receives for similarly structured non-MitchellLama residential properties.
Such fees and other charges
shall include, but not be limited to, capital event fees
for building sales and refinancing and transfer fees for
the sale of cooperative and condominium units, and payments
to RIOC in lieu of mortgage recording tax or sales and
compensating use taxes on construction materials
incorporated into Housing Company's property if Housing
Company is able to obtain an exemption from or abatement of

such taxes due to RIOC's status. If the parties are unable


to reach agreement on any of the Financial Terms to be
negotiated between the parties, such dispute shall be
resolved in accordance with the provisions of Paragraph 6
below.
Paragraphs 4, 5 and 6 of this Agreement are
applicable only to the determination of the Financial Terms
payable to RIOC and are not applicable to such portion of
the Basic Rent allocated to the UDC pursuant to the RAA or
to the determination of the "tax equivalent" paymerits set
forth in subparagraph 1 (y) and 2 (y) of Paragraph 5(A)of
the Restated Ground Lease.
The "tax equivalent" payments
shall be payable as provided in paragraph 6 (c) of the
Restated Ground Leas.e as same has been amended by paragraph
3 of this Amendment.
6.
If the parties are unable to reach agreement on the
renegotiated Financial Terms, as set forth in paragraph 5
above, by no later than sixty days prior to the effective
date Housing Company is leaving the Mitchell-Lama program,
the dispute shall be settled by arbitration in the City of
New York before the American Arbitration Association (or,
if such Association is no longer in existence, such other
organization as is its successor).
The following procedure
shall apply:
(a) Each party shall appoint an independent person of
recognized competence in the field involved as an
arbitrator and notify the other party of such appointment
within twenty days after notice by one such party to the
other to make an appointment.
If either party fails to
timely make an appointment and notify the other party of
the arbitrator appointed, then the arbitrator appointed by
the party which h~s not so failed shall appoint an
independent arbitrator for and on behalf of the party so
failing, and shall give notice of such appointment to the
failing party within twenty days after such failure by the
other party to appoint.
(b) The arbitrators shall meet as promptly as
practicable in an effort to resolve the dispute.
If the
arbitrators are unable to reach agreement within thirty
days after having been appointed, they shall appoint a
third arbitrator to act as an umpiring arbitrator, who
shall resolve the matter in dispute.
If the two
arbitrators cannot agree on a third arbitrator within ten
days after notice from one arbitrator to the other, the
umpiring arbitrator shall be appointed by the presiding
justice of the Appellate Division of the Supreme Court of

the State of New York, First Department, or if for any


reason such presiding justice does not make the
appointment, then by the President of the Bar Association
of the City of New York.
(c)
If any arbitrator who has been appointed fails,
refuses or is unable to act in such capacity, a new
arbitrator shall be appointed in his or her place, which
appointment shall be made in the same manner as set forth
above.
(d)
The arbitrators shall conduct such hearings as
they deem appropriate. RIOC and the Housing Company shall
each be entitled to present evidence and argument to the
arbitrators and shall have the right to participate in all
arbitration proceedings in ord~r to protect their rights.
The umpiring arbitrator shall only select the determination
of either RIOC's or the Housing Company's arbitrator, and
shall render his or her decision in writing. In rendering a
decision, the arbitrator shall have the right only to
interpret and apply the terms of the Restated Ground Lease,
as amended by this First Amendment, and may not vary,
modify or amend any provision of the Restated Ground Lease.
(e) Each party shall pay the costs and expenses of
their own arbitrator and shall share equally the cost of
the umpiring arbitrator and all other arbitration expenses.
(f) A determination made by arbitration pursuant to
this paragraph shall be final and binding upon the parties.
If a final determination is made after the date the Housing
Company leaves the Mitchell-Lama program, such
determination shall be applied retroactively to the date of
such exit, and, if as a result of the determination, the
Housing Company owes any additional sums, it shall pay the
party entitled to receive such sums within thirty days
after the date the parties are notified of the arbitrator's
final determination.
7.
Article 23 of the Restated Ground Lease is hereby
amended to provide that notices may also be sent by
nationally recognized overnight delivery service providing
evidence of delivery (such as Federal Express), and any
notices sent in such a manner shall be deemed delivered on
the next business day.
Notices to RIOC shall be addressed
as follows:
Roosevelt Island Operating Corporation, 591
Main Street, Roosevelt Island, New York 10044, attention:
President, with a copy to sent to RIOC at the same address,
attention: General Counsel. Notices to Housing Company

shall be addressed as follows:


Rivercross Tenants' Corp.,
531 Main Street, Roosevelt Island, New York 10044,
attention: President, with a copy sent to Housing company
at the same address, attention: Managing Agent.
8.
The effectiveness of this Amendment is conditioned on
UDC, d/b/a Empire State Development Corporation, consenting
to the terms hereof.
9.
In all other respects the Restated Ground Lease shall
remain in full force and effect in accordance with its
terms.

[End of Text]

IN WITNESS WHEREOF, the parties hereto have caused this


Amendment #1 to Restated Ground Lease to be executed on
their behalf as of the date first above written by their
respective officers thereunto duly authorized.
RIVERCROSS TENANTS' CORP.

By:

ROOSEVELT ISLAND OPERATING CORPORATION


By:

CONSENTED TO:

NYS URBAN DEVELOPMENT CORPORATION


D/B/A EMPIRE STATE DEVELOPMENT CORPORATION

Senior

- Legal and General Counsel

5TATEOF _ _ _ _ _ _ _ _ _ __
55:
COUNTY OF _ _ _ _ _-'---_ _

One the2

q ~ay of

in the year 2011, before me, the undersigned,

personally appeared

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, personally known to me or

proved to me on the basis of satisfactory evidence to be the individual whose name is


subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her capacity, and that by his/her signature on the instrument, the individual, or
the person upon behalf of which the individual acted, executed the instrument.

r. . . . Ei:;ZABETHSENCioN..........j
!

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No'"", PubJlc, Slate of New York i


No.01SE6137114
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proved to me on the basis of satisfactory evidence to be the individual whose name is


subscribed to the within instrument and acknowledged to me that he/she executed the
same in his/her capacity, and that by his/her signature on the instrument, the individual, or
the person upon behalf of which the individual acted, executed the instrument.
:.................... ,.".,"' U.,f'I._III.,ull n.' .........!

i
ELIZABETH SENelON
I
i Notary Public. State of New York !

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NO.01SE6137114

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Qualified In Queens Coun~ .,


Term Expires November 14J~

1;a1!Jh!illk
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. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

16.

Excerpt from Island House


Ground Lease Extension,
See Clause 20, below.

Miscellaneous.

Nothing herein shall be deemed to amend or otherwise affect the notice of intent dated
December 8, 2011 or to toll any period with respect to the anticipated date of dissolution
stated therein, it being the intention of Sponsor that until the Affordability Plan Effective
Date occurs as and when contemplated herein, Sponsor shall retain all of its existing
rights with respect to dissolution.

17.

Public Safety Fee.


The current public safety fee in the amount of$161,454.36 per annum shall continue with
an escalation of3% compounded per year with escalation starting on the first day of the
Project's fiscal year following the later of (i) the date of the Ground Lease Modification
Agreement, or (ii) the date of the Master Cooperative Closing (provided that the Master
Cooperative Closing shall occur within three years of the date of the Ground Lease
Modification Agreement).

18.

Reimbursement.
Sponsor shall pay to RIOC the sum of $1 00,000 for reimbursement of all expenses
incurred or to be incurred by RIOC in connection with the Affordability Plan and the
Ground Lease Modification Agreement which shall be payable at the earlier of the
Master Cooperative Closing or three years from the date of the Ground Lease
Modification Agreement.

19.

Retail Space Settlement Fee.


In full settlement of all claims that North Town Phase II Houses, Inc. or Sponsor may
have against RIOC relating to RIOC's use and occupancy of the Retail space up to the
effective date of the Ground Lease Modification Agreement, RIOC shall pay to Sponsor
the sum of$l,OOO,OOO.OO by crediting such amount against the first Sponsor Transfer
Fees otherwise payable to RIOC. If the Master Cooperative Closing does not occur and
no Sponsor Transfer Fees are due to RIOC, then the Retail Space Settlement Fee shall be
$1.00.

20.

Community Facilities Payment.


If RIOC shall hereafter assess a community facilities charge or other assessment,
however denominated, among one or more of the projects on Roosevelt Island, then in
determining the proportionate share of such assessment to be allocated to the Project,
there shall be taken into account, and appropriate adjustment made for the differences in

This is not an offering. An offering may only be made pursuant to an offering plan accepted for
filing by the New York State Department ofLaw. This Affordability Plan is intended to describe
the method for withdrawal of the property from the Mitchell Lama Law in accordance with the
regulations of the Division ofHousing and Community Renewal.

-237051879.9

the manner of the existing allocation for Public Safety Fees as between the Project (and
the other projects constituting the WIRE Buildings) and the other projects on Roosevelt
Island so as to equalize, on an equitable aggregate basis, the community facilities
charges, assessments and Public Safety Fees paid by all projects on Roosevelt Island
under the jurisdiction of the RIoe or its successors.
21.

River Road Access.


Sponsor, for itself and on behalf of its subtenants, licensees and occupants of the nonresidential portions of the Project located adjacent to the promenade along the East River,
a/k/a River Road, shall have the right for themselves, which shall also be exercisable by
their respective contractors, agents, employees, licensees and invitees, to use River Road
for the limited purposes of making deliveries to such portions of the Project. The use of
River Road shall be in compliance with all reasonable rules and regulations of general
applicability then in effect provided, however, that RIoe shall not impose or enforce any
rule or regulation which shall have the practical effect of preventing use of River Road
for the purposes intended by this paragraph.

This is not an offering. An offering may only be made pursuant to an offering plan accepted for
filing by the New York State Department ofLaw. This Affordability Plan is intended to describe
the method for withdrawal of the property from the Mitchell Lama Law in accordance with the
regulations of the Division ofHousing and Community Renewal.

-247051879.9

ARTICLE 40

Excerpt from Southtown 5 (415 Main)


Ground lease excerpt, see 40.1.(b)

ISLAND SERVICES AND COMMUNITY FACILITIES


Section 40.1 (a)
(a)

Island Services Generally.

Landlord and Tenant acknowledge that Landlord or its

designees or predecessors have provided or caused to be provided certain services to the


Roosevelt Island community which are in addition to services normally provided by
municipalities ("Island Services") including, but not limited to (i)Tramway

service,

(ii) the central pneumatic collection system :for the disposal and removal of refuse
("AVAC"), (iii) minibus service, (iv) public safety or security services, (v) "community
service" worker, and (vi) maintenance of (A) landscape of all areas no_At
leased to other
tenants of Landlord, (B)the

streets, as required, in excess of municipal standards,

(C) recreational and athletic facilities, and (D) parking in the Motorgate Parking Facility
and parking in other areas.
(b)

Charges for Ishmd Services.

Landlord may impose on Tenant a charge, in addition to

Base Rent, for the furnishing of any Island Service, except for services referred to in
Sections 3.1, 11.2 and 40.4 and charged under such Sections, but only if Landlord
imposes a charge for such Island Service on all other lessees of buildings on Roosevelt
Island containing residential

apartments,

in which event Tenant

shall pay, unless

otherwise provided herein, its pro-rata share (computed on the basis of the number of
Completed Units in the Building as a percentage of the then total of the completed
residential units on Roosevelt Island) of such charge as Rental under Article 3. Tenant's
share of such charges shall not be decreased by reason of a decrease in the number of
Completed Units in the Building resulting from a combination

or diminution in the

number of Units by Tenant. If Tenant fails to pay such charge, Landlord (in addition to
any other rights; and remedies provided herein) shall have all of the rights and remedies
provided in this Lease in the ease of non-payment of Rental.
142

Landlord agrees that its

collection

processes

acknowledges

for

such

charges

shall

that it provides Island Services

be non-discriminatory.

Landlord

for the benefit of Roosevelt

Island

pursuant to its enabling legislation, and charges for Island Services, if imposed, will be
for the purpose ,of providing funds for the provision thereof. Landlord agrees that it may
not impose charges for Island Services as a means of covering litigation costs or losses
incurred by Landlord as a result of litigation due to inadequate insurance coverage by
Landlord.
(c)

Additional

Island Service.

Landlord

shall have the right to designate

additional

community services as "Island Services," provided, however, that New York City would
no longer be responsible as the local municipal government as a matter of law in the
absence of any contractual or lease obligations whatsoever
services.

for the providing of such

In the event Landlord desires to have furnished any reasonable, necessary and

not otherwise adequately provided maintenance

or other services in respect of the

common areas and facilities in Southtown, which Landlord is not then providing without
charge elsewhere on Roosevelt Island, Landlord shall first offer Tenant and any other
subtenants of residential buildings that would be affected the opportunity to elect (x) to
perform or arrange for the performance of such services themselves,

without cost or

expense to Landlord, (y) to have Landlord perform (or arrange for the performance of)
such services at the sole cost and expense of Tenant and such other subtenants or (z) to
not have such services performed.

Landlord shall have no obligation to perform any

such service for Tenant if Tenant does not make any such election.

Any contractors

proposed for the provision of any such service shall be subject to Landlord's prior
written consent:, which shall not be unreasonably withheld or delayed if the proposed
contractor is not a Prohibited Person.
(d)

It is not the intention of this Article 40 to relieve the lessor under the Master Lease of its
obligation under Paragraph 3 of the Master Lease not to discriminate against residents of
143

Roosevelt

Island with respect

to the provision

of police,

fire, sanitation, health

protection, public education and other municipal services.


Section 40.2 Change in or Curtailment or Discontinuance of Island Services.
Landlord reserves the right to change, curtail or discontinue any or all of the Island Services and
Landlord shall not be liable to Tenant or Subtenants if Landlord elects not, refuses, or fails, to furnish any
or all of the Island Services, or tbr any injury to any Person or damage to the Premises or any property
caused by, or resulting from the furnishing, curtailment or discontinuance of, or changes in, or any failure
to furnish Island Services. Notwithstanding

the foregoing, except in case of emergency, Landlord shall

give Tenant reasonable advance notice of the curtailment or discontinuance

of the Tramway or AVAC

service, in light of the need to implement substitutes therefor. Nothing contained herein shall be deemed
to relieve Landlord from liability to Tenant by reason of the negligence or wrongful acts of Landlord, its
agents or employees.
Section 40.3 Security.
(a)

Notwithstanding

the provisions of Article 3 hereof with regard to Landlord's public

safety services and Tenant's monthly payments therefor, Tenant, in addition, upon at
least forty-five (45) days' prior written notice to Landlord, may hire its own security
personnel

for the Premises, provided that such personnel

shall not regularly patrol

beyond the Premises without the approval of Landlord and provided further that the
public safety services of Landlord shall not be impeded or limited in their access to the
Building. Tenant acknowledges and agrees that Landlord shall not take responsibility for
patrolling the Premises or for the internal control and security of the Premises.
(b)

Landlord shall have the right to enter the Premises, subject to the rights of Subtenants,
in connection with performance of Landlord's public safety services, including the right
to enter the Building in response to calls from Subtenants or other occupants of the
Building or while in pursuit.

144

(c)

Landlord shall have the fight, at its cost and expense, to install antennae on the roofs of
the Building for a security radio provided (i) Tenant shall have approved the plans
therefor, which approval shall not be unreasonably withheld, (ii) the antennae shall
comply with all Requirements applicable thereto, (iii) such installation shall not violate
the provisions of any insurance maintained by Tenant, (iv) Landlord's transmissions
shall not interfere with Tenant's then existing Permitted Rooftop Equipment, and (v)
Landlord shall indemnify Tenant with respect to the installation, operation, maintenance
and repair of Landlord's antennae and the roof area to which it is attached, except to the
extent any loss, cost, damage, claim or expense results from the acts or omissions of
Tenant or any Subtenant (or any Person claiming by, through or under Tenant or any
Subtenant), or their respective agents, contractors, representatives, licensees or invitees.
Section 40.4 AVAC/Refuse Disposal.

(a) Tenant shall use the AVAC system serving Roosevelt Island for the disposal and removal of
all refuse for which it was designed by depositing all such refuse into the AVAC input stations which
Tenant shall construct. Refuse which the AVAC is not designed to process shall not be disposed in or
through the AVAC. Tenant agrees that, at its sole cost and expense, it shall dispose of and remove from
the Premises all refuse which the AVAC is not designed to process, in such manner as Landlord shall
approve pursuant to agreements entered into by Landlord on behalf of Tenant, which agreements shall be
subject to Tenant's approval, such approval not to be unreasonably withheld, or such other agreements as
Landlord shall approve, such approval not to be unreasonably withheld. If such disposal and removal is
pursuant to agreements entered into by Landlord, Tenant shall pay to Landlord, within ten (10) days after
demand, at Landlord's option, either (i) Tenant's pro rata share of all costs and expenses incurred by
Landlord under such agreements, or (ii) the costs and expenses attributable to the Premises which are
incurred by Landlord under such agreements. If Tenant fails to pay such costs and expenses, Landlord (in
addition to any other fights and remedies provided herein) shall have all of the fights and remedies
provided for by law in the case of non-payment

of rent. Landlord represents, that as of the date hereof,


145

there is no condition or event to Landlord's knowledge, that would cause the termination of AVAC
service. Tenant shall, at Tenant"s expense, connect the Premises to the existing AVAC system and
maintain, repair and replace all AVAC facilities located on the Premises. Tenant and the other tenants of
buildings within Southtown, Roosevelt Island shall be collectively responsible for fifty percent (50%),
and Landlord shall be responsible for fifty percent (50%), of the costs of maintenance,

repair and

replacement of AVAC facilities serving Southtown; such collective fifty percent share to be allocated
severally to Tenant and other tenants served by a particular AVAC facility on the basis of the number of
buildings served thereby (e.g., :if an AVAC facility serves the Building and two other Southtown
buildings, Tenant's portion of such fifty percent share shall be one third).
(b) Notwithstanding

the provisions of Section 40.4(a), the cost of maintenance, repair and

replacement of the AVAC facilities to be installed to serve the Building and Building #2, Building #3,
Building #4 and Building #6 (as such terms are defined in the Development Agreement) within the leased
premises of each such building shall be shared by those of such buildings as have been completed and are
occupied on a pro-rata basis (e.g, if the Building and such Building #2, Building #3, Building #4 and
Building #6 are completed and o,zcupied, then the tenants of each of them shall be responsible for onefifth (1/5) of such costs).

Landlord shall cause similar provisions to be inserted in the lease, if any, for

Building #6.
Section 40.5 Community Facilities
(a) As its allocable share of the cost of operating, maintaining, repairing, restoring, replacing and
upgrading the open spaces (including park land), the curbs, the street trees and similar community
facilities

(collectively,

the "Cornmunity

Facilities")

on Roosevelt

Island,

including, at Landlord's

election, the costs of creating and maintaining a reasonable reserve fund and of insuring the Community
Facilities or any part thereof, Landlord may require Tenant, for each Lease Year or portion thereof during
the Term, to pay to Landlord annually (the "Community

Facilities Payment")

an amount equal to

Tenant's Pro Rata Share of such costs, provided that such obligation to make the Community Facilities

146

Payment is imposed on Tenant in a non-discriminatory

manner and Landlord provides to Tenant, in

reasonable detail, the costs and calculations used in determining the Community Facilities Payment.
Co)

For each Lease Year or portion thereof, as soon as shall be practicable after the end of

such Lease Year, Landlord shall submit to Tenant a statement setting forth (1) the costs incurred by
Landlord during such Lease Year and attributable to the Community Facilities, together with supporting
documentation,

and (2) Tenant's Community Facilities Payments as calculated pursuant to this Section

40.5. Within thirty (30) days of the date any such statement and documentation are submitted to Tenant,
Tenant shall pay the Community Facilities Payment made by Tenant for the Lease Year. Alternatively,
Landlord may require that Tenant pay one-twelfth (1/12) of the annual Community Facilities Payment on
a monthly basis, on the first day of each month.

Landlord may reasonably estimate such Community

Facilities Payment to calculate the monthly amount due. After the end of each Lease Year, Landlord shall
determine the actual Community Facilities Payment and if there is a shortfall, Tenant shall pay it to
Landlord within thirty (30) days of demand. If Tenant has overpaid, such amount will be credited against
Rental next due from Tenant.

Tenant shall continue to pay its monthly amount until a new amount is

delivered to Tenant.
(c)

Landlord shall have the right to transfer to a trust or other entity the responsibility of

performing Landlord's maintenance obligations and the right to receive installments of the Community
Facilities Payment directly from Tenant. Landlord shall give Tenant notice of the consummation of any
such transfer.

Notwithstanding

constitute Rental hereunder.


Tenant the documentation

such transfer, the Community Facilities Payment shall, at all times,

Thereafter, for .each Lease Year, such trust or other entity shall submit to
and other information required by this Section 40.5 and shall give notice

thereof to Tenant in the same manner as would otherwise be required of Landlord.


(d)

Tenant covenants and agrees that any outdoor recreational facilities and plazas which are

a part of the Premises shall not be fenced or otherwise enclosed nor access thereto restricted in any
unreasonable manner and, shall be maintained by Tenant in good repair and appearance.
Section 40.6 No Third Party Rights.
147

The provisions of this Article 40 shall not be deemed to grant any rights to any Person, including,
without limitation, any subtenant or other resident on or visitor to Roosevelt Island, except Tenant and/or
Landlord, and the terms of this Article 40 shall be enforceable only by Tenant and/or Landlord.

148

RIOC Approved Budget, 2013-2014


see page 15, Budget Risks

Roosevelt Island Operating Corporation


Approved Budget FY 2013 / 2014

The Roosevelt Island Operating Corporation


Approved Budget FY 2013-14
Table of Contents
Budget Certification Letter

Budget Highlights

2-6

Projected Actual 2013 compared to Approved Budget 2013

7-8

Approved Budget 2013 compared to Approved Budget 2014

9-10

Approved Budget By Funds

11

15 Year Cash Flow Projection

12

Capital Improvements Fund 03 Capital Project Fund

13-14

Budget Risks

15

Approved Budget 2014 Revenues

16-19

Staffing Plan 2013 vs. 2014

20

Budget Variance Report

21-41

OTPS Expense Detail

42-62

Significant Budget Dates

63

Andrew M. Cuomo
Governor

Board of Directors

Donald D. Lewis
Acting President/Chief Executive Officer
Vice President/General Counsel

Roosevelt Island Operating Corporation


Steven Chironis
Vice President/Chief Financial Officer

of the State of New York


591 Main Street, Roosevelt Island, NY 10044
T: (212) 832-4540 F: (212) 832-4582
http://rioc.ny.gov

Darryl C. Towns, Chairperson


Fay Fryer Christian
Dr. Salvatore Ferrera
Dr. Katherine Teets Grimm
David Kraut
Robert L. Megna
Howard Polivy
Michael Shinozaki
Margaret Smith

December 12, 2012

The Board of Directors


Roosevelt Island Operating Corporation
of The State of New York
591 Main Street
Roosevelt Island, New York 10044
Re: Approved Budget FY 2013/2014 Certification Letter
Dear Board Members,
Please be advised that, to the best of my knowledge and based on information as of the
date of this letter, the Approved Budget FY 2013/2014 is based on reasonable
assumptions and methods of estimation and I am not aware of any misrepresentations
contained within.
Respectively submitted,

Steven Chironis
Vice President, CFO

Roosevelt Island Operating Corp.


Approved Budget Overview Budget FY 2014
Net Income (Before Depreciation):
Budgeted net income for FY 2014 (before depreciation) is projected to decrease to $3,065,435, a decrease of 4.29% from Budgeted FY 2013 net income of
$3,202,745. The actual net income (before depreciation) for the 5 year period below has been trending upward (excluding one-time transactions fee income
items) as follows:
Projected
Approved
Actual
Actual
Actual
Actual
Actual
Budget
2009
2010
2011
2012
2013
2014
Net Income (Before Depreciation):
$2,712,444 $6,538,860 $2,153,169 $2,715,899 $3,084,936 $3,065,435
Less: One-Time Transaction Fees:

(1,006,924) (4,021,848)

Net Operating Income (Before Depreciation):

$1,705520

$2,517,012

(258,740)
$1,894,429

(170,326) (250,000)

(250,000)

$2,545,573 $2,834,936 $2,815,435

Operations:

Staffing & Wages for the 5th consecutive year all non-union employees have not been budgeted for wage and COLA increases. As of the time of
the preparation of this budget, RIOC has proposed the same union wage increases as agreed to by the major State unions of 0%, 0%, 0%, 2% and
2% for the next 5 years to its union employees. The union wage contracts are presently in negotiation but with little progress towards an
agreement. The approved budget includes the addition of one full-time position, Engineering Project Manager with a starting salary of $68K and
three part-time positions that will required the pre-approval of The New York State Department of Budget due to the State hiring freeze.

Bus & Motorpool the seven bus fleet is not schedule to start replacement until 2018. The bus fare of $.25 has not risen since 1992 and the issue of
raising the fare will be addressed this year. The department has lost money each year and the amount subsidized is on an increasing trend as
follows:

Net Loss:

Projected
Approved
Actual
Actual
Actual
Actual
Actual
Budget
2009
2010
2011
2012
2013
2014
($596,513) ($635,714) ($711,798) ($863,574) ($1,068,960) $(1,051,515)
======= ======= ======= ======= =======
========

Page

Roosevelt Island Operating Corp.


Approved Budget Overview Budget FY 2014

Motorgate Garage is jointly operated by RIOC and Roosevelt Island Associates, owners of Manhattan Park Apartments, and is managed by
Central Parking, Inc. The net profits are shared RIOC (61%) & RIA (39%). RIOCs share of projected net income FY 2014 is $1,502,500.

Tramway the Tram operator, Leitner/Poma USA (LP) has entered into a five year operating agreement to operate the Tram through November
30, 2015. The agreement requires LP to pay all operating expenses including labor, training, parts & supplies and liability insurance (except
utilities and third party equipment maintenance costs) for a fixed monthly fee of $283,100 per month. Since the re-opening of the new Tram in
November 2010, ridership has increased whereby we are forecasting a net profit of $567,000 FY 2014. With operating costs fixed for the next five
years and with a projected increase in ridership we expect the net operating profit to trend upward.

Public Safety management is committed to limiting the current Public Safety level to 41.50 employees (PS Director, Deputy Director, Captain, 37
Public Safety Officers, and an administrative assistant and a part-time crossing guard), the same level that has been maintained the past four
years. Even though a number of recent events have placed additional demands on the public safety department: (i) The NYPD request to post a
public safety officer at each Tram station during rush hours (7am-10am & 4pm-7pm). (ii) The full occupancy of Southtown Buildings 5 & 6 has
increased overall population. (iii) Multiple construction projects, construction workers, traffic and dangerous work sites. (iv) Opening of
Southpoint Park has increased more areas to patrol and an increase of visitors to the Island. (v.) Increase in gang activity requiring special training,
overall crime has decreased on the Island. As discussed in last years budget, the Island Security Camera Project will enable the increase in
demands to be met through enhancing patrols and also strategic Island surveillance. For the 5 year period below the Public Safety net loss has
essentially remain constant as follows:

Net Loss:

Projected
Approved
Actual
Actual
Actual
Actual
Actual
Budget
2009
2010
2011
2012
2013
2014
($1,209,257) ($987,862) ($1,171,083 ($1,203,126) ($1,167,726) ($1,209,850)
======= =======
=======
=======
=======
=======

Engineering & Maintenance as discussed in the Capital Projects section, there are many major capital projects that are budgeted for the next 2
years. As a result, Management believes that it is imperative that an additional Project Manager be hired to help oversee these projects.

Page

Roosevelt Island Operating Corp.


Approved Budget Overview Budget FY 2014

Grounds this year Grounds Department was increased from 9 to 10 full time employees. With the opening of Southpoint Park and the
anticipated opening of the FDR Memorial we will wait and see if additional personnel will be needed. The basic maintenance (trash collection,
snow removal, lawn maintenance and Public Safety patrols) of FDR Memorial will be performed by RIOC with the understanding that our
services will be compensated by State Parks.

Sportspark / Field / Filming Fee / Other Revenues revenues are forecasted to increase approximately 15% from $522,000 to $598,000 FY 2014.
This is primarily from the result of an increase in projected Sportspark fees of $33,000 and Field Rental fees of $35,000.

Commercial Retail Rental Income as of August 1, 2011, all of the commercial retail spaces in the WIRE Buildings and at Motorgate under the
control of RIOC (except the Child School) were subleased to Hudson/Related Retail, LLC (HRR). Terms of the contract called for a guaranteed
monthly rent of $75,000 plus 50% of net profits after payment of the guaranteed rent and rental operating expenses. The terms also require HRR to
invest a minimum of $2,350,000 in capital improvements over a five year period. The capital invested will accrue at 9% per annum which will be
repaid from future profits, if any. The return of capital invested is not guaranteed. As of the date of this report, several significant retail leases
have been signed and are in the construction process.

Mitchell / Lama Buildings Ground Rent - for projected budget purposes only, the State subsidized ground rents for the (2) remaining
Mitchell/Lama Buildings (Westview and Rivercross) we have assumed buildings to remain in the Mitchell/Lama program and the continuation
of the current ground rents. We are presently in the final negotiations with Island House and have included the projected ground rents for
budgetary purposes.

Hurricane Irene & Sandy RIOC estimates that Hurricane Irene has caused a total of $1.4 million in damages. RIOC received preliminary
approval from FEMA for $414,781 and is awaiting approval for the remainder. FEMA will provide final approval for reimbursement upon
submission by RIOC of expenditures for completed projects. To date, RIOC has incurred approximately $107,000 in reimbursable expenses.
With reference to Hurricane Sandy, RIOC has filed the requisite applications to FEMA for preliminary damage assessment and is currently
working to assess and quantity the cost of the damage.

Page

Roosevelt Island Operating Corp.


Approved Budget Overview Budget FY 2014
Capital Projects:

Sports Fields / Parks - with the completion of Southpoint Park scheduled in the fall of 2011 and the completion of Octagon Soccer Field last year
all major Sports Field / Parks projects have been completed. Only two minor projects are scheduled for FY 2014, Tennis Resurfacing for the
Octagon Courts ($60,000) and Bathroom Rehab for Octagon Soccer Field Bathrooms ($60,000).

Historic & Landmark Structures - the interior of Blackwell House is scheduled to start April 2013 at an estimated net cost (less: NYC Cultural
Affairs grant of $364,000) of $800,000. Budgeted for the Good Shepherd interior doors ($100,000), faade repoint ($100,000) and upgrading of the
fire alarm system ($80,000). The Lighthouse Renovation Project which would entail replacing the interior spiral staircase, replace the roof and repointing the faade is expected to take place in FY 2014/2015 estimated at $700,000.

Infrastructure Improvements funds budgeted for the next 15 years for Seawall Improvements is approximately $29,000,000 including
replacement of the railings. Replacement of both seawalls adjacent to Southpoint Park (approx. 1,600 linear feet) have been budgeted for an
amount of $10,000,000 that is scheduled to be completed by August 2013. Replacement of seawall railings is scheduled to start in 2013 to be
performed piecemeal over the next 5 years for a total cost of $5,000,000. Also budgeted is the replacement of the Helix Ramp for a budgeted
amount of $2,500,000.

Facilities & Offices - two major facility renovation projects are schedule for 2014; Warehouse Renovation for an amount of $3,500,000 and the
Sportpark HVAC system for $3,000,000. The Warehouse Renovation design will be completed this year with construction scheduled for 2014.
With the anticipated closing of the Steam Plant in early 2014, the 75,000 sq Sportpark facility will require major retrofitting work for new
mechanical systems.

Steam Plant - for budgetary purposes, we have budgeted $7,000,000 in 2015 for the complete demolition and site cleanup of the Steam Plant. We
believe that this is a worse case scenario whereby RIOC would be responsible for the entire cost. Presently we are in discussions with the Health
& Hospitals Corporation on cost responsibilities.

Tram Close Out & Stations the base Tram Contract of $16,693,000 has still not been closed out. Approximately $2,000,000 has been withheld
until the open items have been completed. The Bonding Company has been brought in to help complete the project. The Tram Station work in the
amount of $1,500,000 is budgeted to be completed in 2014.

Page

Roosevelt Island Operating Corp.


Approved Budget Overview Budget FY 2014
Budget Risks :

Southtown 7, 8 & 9 as noted in the budget for the past two years, the development of Southtown 7, 8 & 9 will have a significant impact on the
future cash flow of the Corporation. The developer, Hudson/Related (HR) holds an option to develop the site that expires on December 31, 2012.
Serious discussions appear to be positive although development would depend on market conditions. If development should not go forward the
future cash flow would be significantly negatively impacted as detailed on page 15.

Tram Revenue Sharing Agreement as noted in Tram Operations, net income projected for the next (5) years shows the Tram being profitable.
However, the Corporation had received full fare ($2.00) up through July 2009, the date of the last MTA fare increase. Since then, the MTA has
continued paying the $2.00 fare while retaining the $0.25 increase. In order to maintain the future long-term viability of the Tram, participation in
future fare increases would be necessary.

Page

Roosevelt Island Operating Corp.


Projected Actual FY 2013 Compared to Approved Budget FY 2013
Projected
Actual
2013

Approved
Budget
2013

Variance
Favorable
(Unfavorable)

$1,140,000
$9,389,000
$1,437,000
$4,547,000
$1,650,000
$2,601,000
$181,500
$794,000
$21,739,500

$1,239,509
$9,453,000
$1,437,000
$4,147,000
$1,662,000
$2,691,000
$291,000
$703,000
$21,623,509

($99,509)
($64,000)
$0
$400,000
($12,000)
($90,000)
($109,500)
$91,000
$115,991

$6,820,000
$3,247,314
$10,067,314

$6,782,486
$3,331,228
$10,113,714

($37,514)
$83,914
$46,400

$1,150,000
$480,400
$23,400
$4,100,000
$250,000
$125,000
$402,200
$25,200
$105,000
$168,300
$83,600
$37,200

$1,150,000
$320,900
$17,400
$4,077,200
$200,000
$107,100
$402,200
$25,200
$105,000
$168,300
$83,600
$37,200

$0
($159,500)
($6,000)
($22,800)
($50,000)
($17,900)
$0
$0
$0
$0
$0
$0

Variance
% Change

Notes

Revenues:
Residential Fees
Ground Rent
Commercial Rent
Tramway Revenue
Public Safety Reimbursement
Transport/Parking Revenue
Interest Income
Other Revenue
Total Revenues:

-8%
-1%
0%
10%
-1%
-3%
-38%
13%
1%

ST 7-9 Development fees ($96,000) deferred


Manhattan Park Participation Rent ($64,000) less than budgeted
Projected ridership up 10% over amount budgeted
Senior discounts
Interest rates below amount budgeted
Field rental & Sportspark Fees above budget

Expenses:
Personal Expenses:
Salary Expense
Fringe Benefits
Total Personal Expenses:

-1% Union paid vacations more than budgeted


3% One-time pension costs of $250,000 for early retirement
0.5%

Other Than Personal Expenses (OTPS)


Insurance
Professional Services
Marketing/Advertising
Management Fees
Legal Fees
Telecommunications
Repairs & Maintenance

Repairs & Maintenance - Equipment


Trees/Shrubs & Sod
Vehicle Gas
Vehicle Repairs & Maintenance
Vehicle Parts

Page 7

0%
-50%
-34%
-1%
-25%
-17%
0%
0%
0%
0%
0%
0%

Island House R.E. Advisory Fees ($100K), Eng.Consultant ($32K)


Promotional Island Advertising
POMA bonding fee not budgeted
Island House legal fees
Upgrade Data lines

Roosevelt Island Operating Corp.


Projected Actual FY 2013 Compared to Approved Budget FY 2013
Projected
Actual
2013

Approved
Budget
2013

Variance
Favorable
(Unfavorable)

Variance
% Change

Equipment Leased
Office Equipment
Equipment & Tools
Computer Software & Equipment
Exterminating
Uniforms
Light, Power & Heat
Water & Sewer
Office Supplies
Parts & Supplies
Service Maintenance
Employee Travel & Meals
Employee Training
Postage & Shipping
Dues & Subscriptions
Island Events
Other Expenses
Total (OTPS)

$16,400
$19,800
$53,600
$18,000
$17,100
$66,950
$612,000
$8,600
$17,100
$210,700
$70,500
$17,500
$56,400
$13,400
$15,700
$85,000
$338,200
$8,587,250

$16,400
$19,800
$53,600
$18,000
$17,100
$66,950
$588,000
$8,600
$17,100
$210,700
$70,500
$17,500
$56,400
$13,400
$15,700
$85,000
$338,200
$8,307,050

$0
$0
$0
$0
$0
$0
($24,000)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($280,200)

Total Expenses: (Before Depreciation)

$18,654,564

$18,420,764

($233,800)

-1.3%

Net Income (Before Depreciation)

$3,084,936

$3,202,745

($117,809)

-4%

Depreciation Expense

$3,577,000

$3,577,000

$0

0%

($117,809)

-31%

Net Income (Loss) - After Depreciation

($492,064)

($374,255)

Page 8

Notes

0%
0%
0%
0%
0%
0%
-4% Underbudgeted Tramway
0%
0%
0%
0%
0%
0%
0%
0%
0%
0%
-3%

Roosevelt Island Operating Corp.


Approved Budget FY 2014
Approved Budget FY 2013 Compared to Approved Budget FY 2014
Approved
Budget
2013

Approved
Budget
2014

Variance
Favorable
Variance
(Unfavorable) % Change

Notes

Revenues:
Residential Fees
Ground Rent
Commercial Rent
Tramway Revenue
Public Safety Reimbursement
Transport/Parking Revenue
Interest Income
Other Revenue
Total Revenues:

$1,239,509
$9,453,000
$1,437,000
$4,147,000
$1,662,000
$2,691,000
$291,000
$703,000

$1,028,000
$10,057,000
$1,466,000
$4,350,000
$1,712,000
$2,745,000
$211,000
$754,000

($211,509)
$604,000
$29,000
$203,000
$50,000
$54,000
($80,000)
$51,000

-17.06%
6.39%
2.02%
4.90%
3.01%
2.01%
-27.49%
7.25%

Southtown 7,8,&9 Dev. Fees Deferred


Escallation increases plus ST#7 50% rent until completion
Escalation Child School & Hudson/Related Guaranteed Income
Projected Ridership increase of 5%
Escallation increases
Increase in Parking Usage
Reduction in Capital Invested
Increase Sportspark Fees ($100K) & Field Rental Fees ($35K)

$21,623,509

$22,323,000

$699,491

$6,782,486
$3,331,228

$6,911,694
$3,489,871

($129,208)
($158,643)

-1.91% New Approved Engineering Position plus 3 new part timers


-4.76% Increase Health Insurance ($57K), Pension Costs ( $85K)

$10,113,714

$10,401,565

($287,851)

-2.85%

$1,150,000
$320,900
$17,400
$4,077,200
$200,000
$107,100
$0
$402,200
$25,200
$105,000
$168,300
$83,600
$37,200
$16,400

$1,200,000
$478,000
$29,000
$4,102,000
$375,000
$125,000
$12,000
$413,000
$28,000
$120,000
$167,000
$81,000
$57,000
$24,000

($50,000)
($157,100)
($11,600)
($24,800)
($175,000)
($17,900)
($12,000)
($10,800)
($2,800)
($15,000)
$1,300
$2,600
($19,800)
($7,600)

-4.35%
-48.96%
-66.67%
-0.61%
-87.50%
-16.71%

3.23%

Expenses:
Personal Expenses:
Salary Expense
Fringe Benefits
Total Personal Expenses:
Other Than Personal Expenses (OTPS)
Insurance
Professional Services
Marketing/Advertising
Management Fees
Legal Fees
Telecommunications
Commercial Space rent
Repairs & Maintenance

Repairs & Maintenance - Equipment


Trees/Shrubs & Sod
Vehicle Gas
Vehicle Repairs & Maintenance
Vehicle Parts
Equipment Leased

Page 9

Increase Property Coverages


RE Advisory Services ST#7, Westview & Rivercross
Increase for Promoting Southpoint & FDR Memorial
POMA Bonding Fee
Increase for Westview, Rivercross, Steamplant & Cornell
Increase in Internet Data Lines
Rent for Engineering Office
-2.69% Tramway Elevator
-11.11% Bus Equipment
-14.29% Increase for Southpoint Maintenance
0.77%
3.11%
-53.23% Increase for Bus Parts
-46.34% Leasing Smart Parking Meter Fees

Roosevelt Island Operating Corp.


Approved Budget FY 2014
Approved Budget FY 2013 Compared to Approved Budget FY 2014
Approved
Budget
2013
Office Equipment
Equipment & Tools
Computer Software & Equipment
Exterminating
Uniforms
Light, Power & Heat
Water & Sewer
Office Supplies
Parts & Supplies
Service Maintenance
Employee Travel & Meals
Employee Training
Shipping
Dues & Subscriptions
Island Events
Other Expenses
Public Purpose Grants

Approved
Budget
2014

Variance
Favorable
Variance
(Unfavorable) % Change

$19,800
$53,600
$18,000
$17,100
$66,950
$588,000
$8,600
$17,100
$210,700
$70,500
$17,500
$56,400
$13,400
$15,700
$85,000
$63,200
$275,000

$20,000
$60,000
$12,000
$17,000
$68,000
$642,000
$12,000
$19,000
$212,000
$80,000
$3,200
$64,400
$11,000
$8,400
$85,000
$56,000
$275,000

($200)
($6,400)
$6,000
$100
($1,050)
($54,000)
($3,400)
($1,900)
($1,300)
($9,500)
$14,300
($8,000)
$2,400
$7,300
$0
$7,200
$0

-1.01%
-11.94%
33.33%
0.58%
-1.57%
-9.18%
-39.53%
-11.11%
-0.62%
-13.48%
81.71%
-14.18%
17.91%
46.50%
0.00%
11.39%
0.00%

$8,307,050

$8,856,000

($548,950)

-6.61%

$18,420,764

$19,257,565

($836,801)

-4.54%

Net Income (Before Depreciation)

$3,202,745

$3,065,435

($137,310)

-4.29%

Depreciation Expense

$3,577,000

$3,649,000

($72,000)

-2.01%

($209,310)

-55.93%

Total (OTPS)
Total Expenses: (Before Depreciation)

Net Income (Loss) - After Depreciation

($374,255)

($583,565)

Page 10

Notes

Increase Tram Electric


Riverwalk Commons Submetering

Data Management ($4k), Next Bus ($5k)


Grounds - Horticultural ($4K), Sportspark CPO Training ($4K)

Roosevelt Island Operating Corp.


Approved Budget FY 2014
Income Statement - By Department
Total Fund 01

Fund 01

Fund 01

Fund 01

Fund 01

Fund 01

Fund 01

Fund 02

Fund 03

Fund 04

Total

Gen. Fund

Operations

Public Safety

Bus

Parking

Parks/Rec.

Tram

Pub. Purpose

Cap. Fund

Resvd Cap

All Funds

Revenue
Residential Fees Revenue

$609,000

$609,000

$0

$0

$0

$0

$0

$0

$217,000

$202,000

$1,028,000

$10,057,000

$10,057,000

$0

$0

$0

$0

$0

$0

$0

$0

$10,057,000

Commercial Rent

$1,466,000

$1,466,000

$0

$0

$0

$0

$0

$0

$0

$0

$1,466,000

Tramway Revenue

$4,350,000

$0

$0

$0

$0

$0

$4,350,000

$0

$0

$0

$4,350,000

Ground rent

Public Safety Reimbursement

$1,712,000

$0

$1,712,000

$0

$0

$0

$0

$0

$0

$0

$1,712,000

Transport/ Parking Revenue

$2,745,000

$0

$0

$496,000

$2,249,000

$0

$0

$0

$0

$0

$2,745,000
$211,000

Interest Income

$30,000

$30,000

$0

$0

$0

$0

$0

$1,000

$30,000

$150,000

Other Revenue

$754,000

$156,000

$0

$0

$0

$598,000

$0

$0

$0

$0

$754,000

$21,723,000

$12,318,000

$1,712,000

$496,000

$2,249,000

$598,000

$4,350,000

$1,000

$247,000

$352,000

$22,323,000

$6,736,694

$3,354,138

$1,951,483

$879,758

$0

$551,315

$0

$0

$0

$0

$6,736,694

$175,000

$135,000

$16,000

$0

$0

$24,000

$0

$0

$0

$0

$175,000

$3,489,871

$2,161,932

$757,767

$362,457

$0

$207,715

$0

$0

$0

$0

$3,489,871

$10,401,565

$5,651,070

$2,725,250

$1,242,215

$0

$783,030

$0

$0

$0

$0

$10,401,565

$1,200,000

$1,050,000

$0

$0

$0

$0

$150,000

$0

$0

$0

$1,200,000

$507,000

$440,000

$0

$0

$0

$67,000

$0

$0

$0

$0

$507,000

$4,102,000

$0

$0

$0

$660,000

$0

$3,442,000

$0

$0

$0

$4,102,000

Total Revenue
Expenses
Personal Services (PS) :
Salaries
Temporary Employees
Employee Benefits
Total Personal Services (PS)
Other Than Personal Services (OTPS) :
Insurance
Professional Services
Management Fees
Legal Services

$375,000

$375,000

$0

$0

$0

$0

$0

$0

$0

$0

$375,000

Telecommunications

$125,000

$125,000

$0

$0

$0

$0

$0

$0

$0

$0

$125,000

Commercial Space Rent

$12,000

$12,000

$0

$0

$0

$0

$0

$0

$0

$0

$12,000

Repairs & Maintenance

$561,000

$444,000

$3,000

$29,000

$6,000

$49,000

$30,000

$0

$0

$0

$561,000

Vehicles Maintenance

$305,000

$56,000

$34,000

$212,000

$0

$3,000

$0

$0

$0

$0

$305,000

Equipment Purchases/ Lease

$116,000

$78,000

$21,000

$8,000

$0

$1,000

$8,000

$0

$0

$0

$116,000

$1,050,000

$532,900

$114,000

$47,300

$80,500

$122,300

$153,000

$0

$0

$0

$1,050,000

$228,000

$107,400

$24,600

$8,500

$0

$87,500

$0

$0

$0

$0

$228,000

$0

$0

$0

$0

$0

$0

$0

$275,000

$0

$0

$275,000

$8,581,000

$3,220,300

$196,600

$304,800

$746,500

$329,800

$3,783,000

$275,000

$0

$0

$8,856,000

$18,982,565

$8,871,370

$2,921,850

$1,547,015

$746,500

$1,112,830

$3,783,000

$275,000

$0

$0

$19,257,565

$2,740,435

$3,446,630

($1,209,850)

($1,051,015)

$1,502,500

($514,830)

$567,000

($274,000)

$247,000

$352,000

$3,065,435

$0

$0

$0

$0

$0

$0

$0

$0

$3,649,000

$0

$3,649,000

$2,740,435

$3,446,630

($1,209,850)

($1,051,015)

$1,502,500

($514,830)

$567,000

($274,000)

Supplies/ Services
Other Expenses
Public Purpose Grants
Total Other Than Personal Services (OTPS)
Total Expenses
NET INCOME (LOSS) BEFORE DEPRECIATION
Depreciation Expenses
NET INCOME (LOSS) AFTER DEPRECIATION

Page 11

($3,402,000)

$352,000

($583,565)

Roosevelt Island Operating Corp.


Approved FY Budget 2014 - 15 Yr Cash Flow Projection (In Thousands)

Budget
2014

<------------------------------------------------------------------------------ --------------------- Projected ---------------------------------------------->


2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026

2027

2028

CASH BALANCE :04/01

$42,000

$21,923

$5,979

$16,316

$19,061

$32,334

$33,588

$50,480

$52,977

$55,781

$56,125

$57,296

$60,132

$63,218

$65,879

TOTAL REVENUES: (See details on page 14-18)

$22,323

$23,070

$28,873

$28,943

$31,430

$31,244

$34,643

$34,880

$36,420

$36,412

$37,965

$39,518

$41,174

$42,400

$44,049

EXPENDITURES (EXCLUDING DEPRECIATION)


PERSONAL EXPENSES (4.5% INCREASE)

$10,402

$10,870

$11,359

$11,870

$12,404

$12,962

$13,546

$14,155

$14,792

$15,458

$16,153

$16,880

$17,640

$18,434

$19,263

OTHER THAN PERSONAL EXPENSES (3.5% INCR.)

$8,856

$9,166

$9,487

$9,819

$10,162

$10,518

$10,886

$11,267

$11,662

$12,070

$12,492

$12,929

$13,382

$13,850

$14,335

$19,258

$20,036

$20,846

$21,689

$22,567

$23,480

$24,432

$25,422

$26,454

$27,528

$28,646

$29,810

$31,022

$32,284

$33,598

NET CASH FLOW FROM OPERATIONS

$3,066

$3,035

$8,027

$7,254

$8,863

$7,764

$10,211

$9,458

$9,966

$8,885

$9,319

$9,709

$10,152

$10,116

$10,450

ADJUSTMENTS:
REVERSAL OF DEFERRED REVENUES

($342)

($342)

($342)

($532)

($791)

($1,027)

($1,027)

($1,027)

($1,027)

($1,027)

($1,027)

($1,027)

($1,027)

($1,027)

($1,027)

TOTAL EXPENDITURES:

ADD: PV PAYMENTS (DEFERRED REVENUE)

CASH AVAILABLE FOR CAPITAL PROJECTS

CAPITAL PROJECT EXPENDITURES


CASH BALANCE: 03/31

$10,050

$44,724

$22,801
$21,923

$24,616

$18,637
$5,979

$12,000

$13,440

$23,714

$23,038

$39,133

$39,071

$56,212

$58,910

$61,916

$63,639

$64,418

$65,977

$69,257

$72,307

$75,302

$7,398

$3,977

$6,799

$5,483

$5,732

$5,933

$6,135

$7,514

$7,122

$5,845

$6,039

$6,428

$6,741

$16,316

$19,061

$32,334

$33,588

$50,480

$52,977

$55,781

$56,125

$57,296

$60,132

$63,218

$65,879

$68,561

Page 12

The Roosevelt Island Operating Corporation (RIOC)


CAPITAL IMPROVEMENTS 2013/2014 (In Thousands)
5% inflation rate

Sports Fields/Parks
Octagon Park - Comfort Station Rehab
Octagon Park - Tennis Court Resurfacing
Mediation Steps
504 Main Childrens Park
Miscellaneous Upgrades & Improvements - Reserve
Historic & Landmark Structures
Blackwell House Interior renovation
Good Shepherd - HVAC
Good Shepherd - Roof Replacement
Good Shepherd - Faade Repointing
Good Shepherd - Interior Repairs/Doors
Good Shepherd - Alarm System
Blackwell Lighthouse Restoration
Old Tram Cabins Restoration
Miscellaneous Upgrades & Improvements - Reserve
Infrastructure Improvements
Island-Wide Road Improvements - Reserve
Island-Wide Z Brick Replacement - Reserve
Good Shepherd Plaza - Pavement Replacement
Blackwell Park Plaza & Fountains
Blackwell Circle
36 Avenue Bridge Helix (Ramp)
Seawall - Reserve
Seawall Railings Replacement
West Drive Modernization
Steamplant Decommissioning
Eastern Pier
Site Amenities - Benches, Waste Receptacles - Res.
Utilities Infrastructure Improvements - Reserve
Sewer Upgrades - Reserve
Facilities & Offices
Motorgate Project Repairs Project
Motorgate Garage - Reserve
Motorgate Atrium/Escalator/N.Elevators
Motorgate Under deck Lighting
Motorgate Enclosed Phase 3 Air Shaft
Motorgate Coat Level 3 Deck
Motorgate Coat Roof Deck
Motorgate Fire Alarm Rehabilitation
504 Main Street - Interior Demolition
504 Main Street - Window/Door Replacement
504 Main Street - ADA Elevator
AVAC Stack Repairs
AVAC Interior Painting
AVAC Mechanical/Piping - Reserve
Sportspark - HVAC
Sportspark - Roof
Sportpark - Pool
Sportpark - New Flooring Squash/Ping Pong
Sportpark - Upgrade Locker Rooms
Sportspark - Faade Repointing
Sportspark Rehabilitiation - Reserve
Warehouse/Bus Garage Rehabilitation
Miscellaneous Facilities & Offices - Reserve
Equipment & Vehicles
Admin - (2) GEMs (50% paid by NYPA)
Bus - Hybrid Buses
Bus - F-350 Pickup

Approved
Budget

Projected
Actual

Approved
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Budgets
2013 - 2027

2013

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

Total

$420
$60
$60

$300

$435
$60
$60

$631

$347

$365

$383

$402

$422

$443

$465

$489

$513

$539

$566

$594

$624

$300
$331
$910

$347
$221

$365
$232

$383
$243

$402
$255

$422
$268

$443
$281

$465
$295

$489
$310

$513
$326

$539
$342

$566
$359

$594
$377

$624
$396

$221
$5,246
$200
$116

$232
$1,783
$210
$122

$243
$2,822
$221
$128

$255
$1,913
$232
$134

$268
$2,009
$243
$141

$281
$2,109
$255
$148

$295
$2,215
$268
$155

$310
$2,326
$281
$163

$326
$2,442
$295
$171

$342
$2,564
$310
$180

$359
$2,692
$326
$189

$377
$2,827
$342
$198

$396
$2,968
$359
$208

$1,103

$1,158

$1,216

$1,276

$1,340

$1,407

$1,477

$1,551

$1,629

$1,000

$1,000
$1,000

$1,050

$1,000

$83
$116
$232
$673

$87
$122
$243
$706

$91
$128
$255
$741

$96
$134
$268
$779

$101
$141
$281
$817

$106
$148
$295
$858

$111
$155
$310
$901

$116
$163
$326
$946

$122
$171
$342
$994

$128
$180
$359
$1,043

$135
$189
$377
$1,095

$141
$198
$396
$1,150

$148
$208
$416
$1,208

$221

$232

$243

$255

$268

$281

$295

$310

$326

$342

$359

$377

$396

$232

$243

$255

$268

$281

$295

$310

$326

$342

$359

$377

$396

$416

$100
$105

$110

$116

$122

$128

$134

$141

$148

$155

$163

$171

$180

$189

$198

$105
$188

$110
$152

$116
$177
$25

$122
$1,159

$128
$1,347

$134
$1,289

$148
$1,346

$155
$1,606

$163
$1,568

$171
$302
$35

$180
$218

$189
$317

$198
$324

$1,000

$1,050
$40

$1,103

$141
$1,372
$30
$1,158

$1,216

$1,276

$1,340

$300
$300
$1,670
$800
$300

$900
$300
$600

$100
$100
$80

$100
$80
$350
$40
$4,525
$800
$100

$1,250
$1,000
$1,000

$75
$100
$200
$3,460

$750
$80
$320
$40
$250
$250
$250

$200
$600

$315
$1,280
$800

$700
$200
$210
$980 $10,495 $14,120
$200
$600
$600
$100
$105
$110
$500
$700
$200
$2,500
$5,000
$5,000
$1,000
$1,000
$2,000
$3,500
$1,500
$50
$75
$79
$30
$105
$110
$100
$210
$221
$2,840
$7,930
$2,041
$1,000
$200
$210
$600
$750
$80
$320

$3,500

$40
$250
$250

$100

$210
$3,000

$400
$300
$221
$600

$120
$40
$60

$120
$40
$60
$50

$500
$366

$295
$20

$100
$3,500
$100
$224

$30

Page 13

$60

$7,217
$60
$60
$0
$300
$6,797
$6,096
$800
$0
$0
$100
$100
$80
$700
$0
$4,316
$58,531
$4,743
$2,266
$0
$700
$200
$2,500
$24,207
$5,000
$2,000
$7,000
$1,500
$1,618
$2,266
$4,531
$21,883
$0
$4,316
$600
$0
$0
$0
$0
$0
$0
$0
$0
$400
$300
$4,531
$3,000
$600
$120
$40
$60
$100
$2,158
$3,500
$2,158
$11,588
$90
$8,142
$100

The Roosevelt Island Operating Corporation (RIOC)


CAPITAL IMPROVEMENTS 2013/2014 (In Thousands)
5% inflation rate

9
10

Approved
Budget

Projected
Actual

Approved
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Projected
Budget

Budgets
2013 - 2027

2013

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

Total

Bus - Sissor Lift


Engineering - Ford Escape
$20
P.S. - Ford Escapes
$20
P.S. - Segways
$6
P.S. - Gem
P.S. - (4) Substations (Tram/Lighthouse/Bridge/SP Park
$40
P.S. - Taser Equipment & Training
Motorpool - (2) GEMS (50% paid by NYPA)
Motorpool - Aerial Truck Lift
$70
Maintenance - Ford 350
$50
Grounds - Brush Chipper
$60
Parks & Recreation- Ford Escape
$20
Parks & Recreation- Gym Equipment
$10
IT - Servers
IT - Plotter
IT - Parking Meter Replacement
IT - Software Upgrades
$30
IT - (2) Copiers/AV/Printers
$20
IT - (20 PC Replacements)
$20
IT - Upgrade of Switches
Excavator
(2) Bobcats
Misc. Heavy equipment
Special Projects
$1,070
Admin - Islandwide Geographic Information System
$250
P.S. - Island Wireless Security Camera System
$600
IT - Off-Site Data Backup Recovery System
Parking Management System
$120
Parking Meters Replacement
$100
Other - Special Projects
Lighting & Signage
$40
Street Light Replacement
$20
Signage
$20
Tram
$1,500
Tram - Security/Monitoring/Replacement Equipment
Tram - Haul Rope Replacement
Tram - Sheve Liners Replacement
Tram - Other Equip. & Tools
Tram - Electrical PLC Replacement
Tram Modernization - Note A
$1,500
Southpoint Park
$0
TPL - Wild Rooms/Wild Gardens
Miscellaneous
$500
Contingency
$500
TOTAL CAPITAL IMPROVEMENTS
$13,551

$10
$20
$20

$20
$21
$15
$15

$22
$6
$11

$23
$16

$26
$26
$18

$24
$7
$12

$27
$7
$14

$28
$20

$30
$8
$15

$31
$22

$33
$33
$8
$16

$34
$24

$36
$8
$18

$38
$26

$40
$9
$20

$42
$9
$20

$70

$70

$59
$39
$40
$40

$62
$39
$42
$40

$20
$40
$15

$30

$40

$50

$35

$45

$50
$45
$20

$26

$33

$15
$50

$55
$25

$30
$20
$20
$20

$650
$600
$50

$0

$1,000

$32
$21
$40
$30
$30
$370

$33
$22
$22
$22

$35

$36
$24
$24
$24

$38

$32
$53

$33
$55

$35
$58

$53
$44
$22
$22
$100
$100

$55
$46
$23
$23
$80

$58
$49
$24
$24
$0

$23

$62
$28

$40
$26
$27
$26

$42

$36
$61

$38
$64

$61
$51
$26
$26
$700

$64
$54
$27
$27
$0

$26

$34
$44
$29
$30
$29

$47

$40
$67

$42
$70

$67
$56
$28
$28
$100

$70
$59
$30
$30
$0

$28

$49
$32
$33
$32

$51

$44
$74

$47
$78

$74
$62
$31
$31
$0

$78
$65
$33
$33
$880

$31

$57

$49
$81

$51
$86

$54
$90

$57
$94

$59
$99

$81
$68
$34
$34
$275
$150

$86
$72
$36
$36
$0

$90
$75
$38
$38
$0

$94
$79
$40
$40
$0

$99
$83
$42
$42
$0

$34

$38

$100
$120
$100
$50
$42
$21
$21
$1,500

$600

$750

$80

$100

$125

$100
$1,000
$1,000
$1,000
$0

$54
$35
$36
$35

$1,500
$0

$130

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$525
$551
$525
$551
$7,965 $22,801 $18,637

$579
$579
$7,398

$608
$608
$3,977

$638
$638
$6,799

$670
$670
$5,483

$704
$704
$5,732

$739
$739
$5,933

$776
$776
$6,135

$814
$814
$7,514

$855
$855
$7,122

$898
$898
$5,845

$943
$943
$6,039

$990
$990
$6,428

$1,039
$1,039
$6,741

Page 14

$20
$59
$453
$203
$141
$0
$40
$120
$80
$0
$45
$59
$15
$307
$87
$0
$680
$246
$453
$248
$40
$30
$647
$1,399
$0
$100
$0
$120
$100
$1,079
$906
$453
$453
$3,635
$250
$1,350
$305
$0
$230
$1,500
$0
$0
$11,329
$11,329
$122,584

The Roosevelt Island Operating Corporation (RIOC)


Budget Risks - (In Thousands)
Approved Budget FY 2014
1. ) Southtown 7, 8, and 9:
As noted in last year's budget, the development of Southtown 7, 8 & 9 will have a significant impact on the future cash flow of the Corporation.
The developer, Hudson/Related holds an option to develop the site which expires on December 31, 2012. On-going discussions with Hudsion/Related
appear to be positive although development would depend on market conditions. If Hudson/Related did not go forth with development of 7,8 & 9 they would owe the
Corporation a de-designation fee of Approx. $1,500,000 and the net effect on projected cash flows would be as follows:
Budget
2014

<----------------------------------------------------------- -------------------------------- Projected --------------------------------------------------------------------------------------------------------------------------->


2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028

Reversal Southtown #7, 8 & 9 Projected Revenues:


Ground Rent
Public Safety Fees
Condo Conversion Fee Income
Mini TEP & PILOT Fees
Deferred Revenues (Prepaid Rent)
Reversal of Deferred Revenues
De-Designation Fee Penalty
Net Change In Revenues (Before Adj. of Interest Income)
Change in Investment Income
Net Change in Revenues:

($364)

($364)

($181)

($202)

$0
$1,500

$0

($1,278)
($48)
($1,050)
($202)
($10,050)
$164

($1,298)
($49)
($1,230)
($450)
$164

($2,484)
($115)
($1,471)
($450)
($12,000)
$360

($2,535)
($118)
($197)
($728)
$360

($3,202)
($270)
($2,997)
($728)
($13,440)
$588

($3,291)
($279)
($1,723)
($728)
$588

($3,382)
($286)
($1,729)
($1,528)
$588

($3,474)
($296)
($215)
($2,328)
$588

($3,569)
($305)
($221)
($3,128)
$588

($3,668)
($313)
($228)
($3,928)
$588

($3,769)
($323)
($235)
($4,728)
$588

($3,872)
($333)
($242)
($4,728)
$588

($3,979)
($342)
($249)
($4,728)
$588

$955

($566)

($12,464)

($2,863)

($16,160)

($3,218)

($20,049)

($5,433)

($6,337)

($5,725)

($6,635)

($7,549)

($8,467)

($8,587)

($8,710)

$10

($8)

($187)

($43)

($323)

($64)

($401)

($163)

($190)

($172)

($199)

($226)

($254)

($258)

($261)

$965

($574)

($12,651)

($2,906)

($16,483)

($3,282)

($20,450)

($5,596)

($6,527)

($5,897)

($6,834)

($7,775)

($8,721)

($8,845)

($8,971)

($12,261)

($15,167)

($31,650)

($34,932)

($55,382)

($60,978)

($67,505)

($73,402)

($80,236)

($88,012)

($96,733)

($105,577)

$33,588

$50,480

$52,977

$55,781

$56,125

$57,296

$60,132

$63,218

$65,879

$68,561

($1,345)

($4,903)

($8,001)

($11,724)

($17,277)

($22,940)

($27,879)

($33,515)

($39,698)

($45,987)

Net Change in Revenues Brought Forward from Prior Years

$965

$390

Cash Balance - Inclusive of Southtown #7,8 & 9 Revenues:

$21,923

$5,979

$16,316

$19,061

$32,334

Adj. Cash Balance - Without Southtown #7,8 & 9

$22,887

$6,369

$4,055

$3,894

$684

As disclosed above, if the development of Southtown #7, 8 & 9 does not go forward and current projected spending levels remained the same, the Corporation would incurr a negative cash balance
beginning in 2019. Until the fate of development is known (the latter part of 2012), major capital projects not deemed as necessary will not be initiated.
2.) Tram Revenue Sharing With the MTA:
The Corporation received full fare ($2.00) up through July 2009 the date of the last MTA fare increase. Since then, the MTA has continued paying the $2.00 fare while retaining the $.25 increase.
In order to maintain the future long term financial viability of the Tram, participation in future fare increases would be necessary.

Page 15

Roosevelt Island Operating Corp.


Approved Budget FY 2014 - Revenues (In Thousands)
Approved Approved
Budget
Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
NET PRESENT VALUE - Capital Reserved (59%)
- Southtown #4
- Southtown #5
- Southtown #6
- Southtown #7 - Est. TCO 4/2016 201,000 sq'@$50/sq'=$10,050,000
- Southtown #8 - Est. TCO 04/2018 240,000sq'@$50/sq'=$12,000,000
- Southtown #9 - Est. TCO 04/2020 268,800sq'@$50/sq'=$13,440,000

$40
$64
$98
$0
$0
$0

$40
$64
$98
$0
$0
$0

$40
$64
$98
$0
$0
$0

$40
$64
$98
$96
$0
$0

$40
$64
$98
$96
$0
$0

$40
$64
$98
$96
$118
$0

$40
$64
$98
$96
$118
$0

$40
$64
$98
$96
$118
$132

$40
$64
$98
$96
$118
$132

$40
$64
$98
$96
$118
$132

$40
$64
$98
$96
$118
$132

$40
$64
$98
$96
$118
$132

$40
$64
$98
$96
$118
$132

$40
$64
$98
$96
$118
$132

$40
$64
$98
$96
$118
$132

$40
$64
$98
$96
$118
$132

$202

$202

$202

$298

$298

$416

$416

$548

$548

$548

$548

$548

$548

$548

$548

$548

$27
$43
$67
$0
$0
$0

$27
$43
$67
$0
$0
$0

$27
$43
$67
$0
$0
$0

$27
$43
$67
$65
$0
$0

$27
$43
$67
$65
$0
$0

$27
$43
$67
$65
$76
$0

$27
$43
$67
$65
$76
$0

$27
$43
$67
$65
$76
$94

$27
$43
$67
$65
$76
$94

$27
$43
$67
$65
$76
$94

$27
$43
$67
$65
$76
$94

$27
$43
$67
$65
$76
$94

$27
$43
$67
$65
$76
$94

$27
$43
$67
$65
$76
$94

$27
$43
$67
$65
$76
$94

$27
$43
$67
$65
$76
$94

$137

$137

$137

$202

$202

$278

$278

$372

$372

$372

$372

$372

$372

$372

$372

$372

NET PRESENT VALUE - Operating (1%)


- Southtown #4
- Southtown #5
- Southtown #6
- Southtown #7 - Est. TCO 4/2016 201,000 sq'@$50/sq'=$10,050,000
- Southtown #8 - Est. TCO 04/2018 240,000sq'@$50/sq'=$12,000,000
- Southtown #9 - Est. TCO 04/2020 268,800sq'@$50/sq'=$13,440,000

$1
$1
$2
$0
$0
$0

$1
$1
$2
$0
$0
$0

$1
$1
$2
$0
$0
$0

$1
$1
$2
$3
$0
$0

$1
$1
$2
$3
$0
$0

$1
$1
$2
$3
$2
$0

$1
$1
$2
$3
$2
$0

$1
$1
$2
$3
$2
$2

$1
$1
$2
$3
$2
$2

$1
$1
$2
$3
$2
$2

$1
$1
$2
$3
$2
$2

$1
$1
$2
$3
$2
$2

$1
$1
$2
$3
$2
$2

$1
$1
$2
$3
$2
$2

$1
$1
$2
$3
$2
$2

$1
$1
$2
$3
$2
$2

Total: NET PRESENT VALUE - Operating (1%)

$3

$3

$3

$6

$6

$8

$8

$10

$10

$10

$10

$10

$10

$10

$10

$10

CONDO ADDITIONAL SALES


- Condo Conversion Fees - Resales - Southtown 1-5 (50units@$3,000)
-Condo Conversion Fees - Resales -Southtown 7,8,9 (60units@$3,000)
-Southtown #5 - Initial Conversion (sale of remaining units)
-Southtown #7 - Initial Con. (2%@$750/sq'@201,600= $3,160,000
-Southtown #8 - Initial Con.(2%@$800/sq'@240,000) = $3,8400,000
-Southtown #9 - Initial Con.(2%@$850/sq'@268,800) = $4,556,000
- Island House -Capital Event Fees (per ground lease schedule)
- Island House - Condo Transfer Fees (per ground lease schedule)

$165
$0
$50
$0
$0
$0
$0
$0

$30
$0
$50
$0
$0
$0
$0
$0

$182
$0
$0
$0
$0
$0
$0
$0

$191
$0
$0
$1,050
$0
$0
$2,185
$144

$201
$180
$0
$1,050
$0
$0
$1,315
$155

$207
$185
$0
$1,050
$1,280
$0
$0
$166

$213
$191
$0
$0
$1,280
$0
$0
$179

$220
$197
$0
$0
$1,280
$1,520
$0
$192

$226
$203
$0
$0
$0
$1,520
$0
$207

$233
$209
$0
$0
$0
$1,520
$0
$222

$240
$215
$0
$0
$0
$0
$0
$239

$247
$221
$0
$0
$0
$0
$0
$257

$255
$228
$0
$0
$0
$0
$0
$277

$262
$235
$0
$0
$0
$0
$0
$297

$270
$242
$0
$0
$0
$0
$0
$308

$278
$249
$0
$0
$0
$0
$0
$320

Total: CONDO ADDITIONAL SALES

$215

$80

$182

$3,570

$2,901

$2,888

$1,863

$3,408

$2,156

$2,184

$694

$726

$760

$794

$820

$847

COMMERCIAL RENT
Hudson/Related Master Lease Guaranteed Income
Hudson/Related Profit Participation (per H/R proforma)

$912
$0

$930
$0

$949
$0

$968
$0

$987
$0

$1,007
$0

$1,027
$230

$1,048
$492

$1,069
$607

$1,090
$686

$1,112
$720

$1,134
$756

$1,157
$794

$1,180
$834

$1,203
$876

$1,227
$919

Total: NET PRESENT VALUE - Capital Reserved (59%)


NET PRESENT VALUE - Capital (40%)
- Southtown #4
- Southtown #5
- Southtown #6
- Southtown #7 - Est. TCO 4/2016 201,000 sq'@$50/sq'=$10,050,000
- Southtown #8 - Est. TCO 04/2018 240,000sq'@$50/sq'=$12,000,000
- Southtown #9 - Est. TCO 04/2020 268,800sq'@$50/sq'=$13,440,000
Total: NET PRESENT VALUE - Capital (40%)

Page 16

Roosevelt Island Operating Corp.


Approved Budget FY 2014 - Revenues (In Thousands)
Approved Approved
Budget
Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
- 281 Main Street - (HCK Tennis Bubble) - Leased thru 2046
$250
$250
$250
$250
$275
$275
$275
$275
$300
$300
$300
$300
$300
$325
$325
$325
$8
$8
$8
$8
$9
$9
$9
$9
$10
$10
$10
$11
$11
$11
$12
$12
-281 Main Street - (HCK Tennis Bubble) (Parking) - Leased thru 2046
-281 Main Street - (HCK Tennis Bubble) (% Rent) - Leased thru 2046
$30
$31
$32
$33
$34
$35
$36
$37
$38
$39
$40
$42
$43
$44
$45
$47
-587 Main St. - (The Child School) - 49,900sq'@$6/sq' thru 01/2033
$323
$332
$342
$352
$363
$374
$385
$397
$409
$421
$433
$446
$460
$474
$488
$502
Island House - Sublease Credit $3/sq'
($43)
($43)
($43)
($43)
($43)
($43)
($43)
($43)
($43)
($43)
($43)
($43)
($43)
($43)
($43)
($43)
Westview - Sublease Credit $3/sq'
($42)
($42)
($42)
($42)
($42)
($42)
($42)
($42)
($42)
($42)
($42)
($42)
($42)
($42)
($42)
($42)
Total: COMMERCIAL RENT
SOUTHTOWN PILOT/TEP
PILOT - Southtown #3 (begins 21st year after TCO - begins 2027
PILOT - Southtown #4 (begins 21st year after TCO - begins 2028
-TEP - Southtown #5 (begins 13th year after TCO - begins 2022 (A)
-TEP - Southtown #6 (begins 13th year after TCO - begins 2022(A)
-TEP - Southtown #7 (begins 13th year after TCO - begins 2029
-TEP - Southtown #8 (begins 13th year after TCO - begins 2031
-TEP - Southtown #9 (begins 13th year after TCO - begins 2033

$1,437

$1,466

$1,495

$1,526

$1,582

$1,614

$1,877

$2,172

$2,346

$2,460

$2,530

$2,603

$2,679

$2,782

$2,863

$2,947

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$0
$0
$0
$0
$0

$0
$0
$400
$400
$0
$0
$0

$0
$0
$800
$800
$0
$0
$0

$0
$0
$1,200
$1,200
$0
$0
$0

$0
$0
$1,600
$1,600
$0
$0
$0

$0
$0
$2,000
$2,000
$0
$0
$0

$400
$0
$2,000
$2,000
$0
$0
$0

$800
$400
$2,000
$2,000
$0
$0
$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$800

$1,600

$2,400

$3,200

$4,000

$4,400

$5,200

SOUTHTOWN MINI TEP (Land Only - $1 per square foot)


-TEP - Southtown #5
-TEP - Southtown #6
-TEP - Southtown #7 - closing 4/13
-TEP - Southtown #8 - closing 4/15
-TEP - Southtown #9 - closing 4/17

$145
$222
$69
$62
$50

$145
$222
$202
$0
$0

$145
$222
$202
$0
$0

$145
$222
$202
$248
$0

$145
$222
$202
$248
$0

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

$145
$222
$202
$248
$278

Total: SOUTHTOWN MINI TEP

$548

$568

$568

$816

$816

$1,094

$1,094

$1,094

$1,094

$1,094

$1,094

$1,094

$1,094

$1,094

$1,094

$1,094

$51
$45
$38

$38
$0
$0

$0
$0
$0

$0
$45
$0

$0
$0
$0

$0
$0
$51

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$0
$0
$0

$134

$38

$0

$45

$0

$51

$0

$0

$0

$0

$0

$0

$0

$0

$0

$0

$1,273
$55
$31
$0
$4,164
$2,164
$150
$48
$32

$1,299
$55
$32
$0
$4,289
$2,200
$150
$48
$32

$1,325
$55
$33
$0
$4,418
$2,244
$150
$48
$32

$1,351
$236
$34
$0
$4,550
$2,289
$150
$48
$32

$1,378
$236
$35
$0
$4,687
$2,335
$150
$48
$32

$1,406
$236
$37
$0
$4,827
$2,381
$168
$48
$32

$1,434
$236
$38
$0
$4,972
$2,429
$168
$48
$32

$1,463
$236
$39
$0
$5,121
$2,478
$168
$48
$32

$1,492
$260
$40
$0
$5,275
$2,527
$168
$48
$32

$1,522
$260
$41
$0
$5,433
$2,578
$168
$48
$32

$1,552
$260
$42
$0
$5,596
$2,629
$168
$48
$32

$1,583
$260
$44
$0
$5,764
$2,682
$188
$48
$32

$1,615
$260
$45
$0
$5,937
$2,735
$188
$48
$32

$1,647
$286
$46
$0
$6,115
$2,790
$188
$48
$32

$1,680
$286
$48
$0
$6,298
$2,846
$188
$48
$32

$1,714
$286
$49
$0
$6,487
$2,903
$188
$48
$32

SOUTHTOWN DEVELOPMENT FEES:


Development Fees - Southtown #7 - closing 4/13
Development Fees - Southtown #8 - closing 4/15
Development Fees - Southtown #9 - closing 4/17
Total: SOUTHTOWN DEVELOPMENT FEES:
- GROUND RENT
-Eastwood Ground Rent - $1,200,000 plus 2% (est. increase in rent)
-Island House - (Note C)
-Rivercross - $31,494/year - with 3% increase (Note D)
-Westview - Ground Rent Not Paid to RIOC (Note E)
-Manhattan Park - 3% increase
-Manhattan Park Percentage Rent - $170,000/mth plus 2%
-Manhattan Park - New Bus Reimb. $150,000/year, starting 04/2011
-Octagon - Deferred Revenue $48,416/yr thru 2068
-Southtown #1 - Deferred Revenue $32,091/yr thru 2068

Page 17

Roosevelt Island Operating Corp.


Approved Budget FY 2014 - Revenues (In Thousands)

-Southtown #2 - Deferred Revenue $30,429/yr thru 2068


-Southtown #3 - Deferred Revenue $64,824/yr thru 2068
-Southtown #4 - Deferred Revenue $30,993/yr thru 2068
-Southtown #5 - 2.75% increase
-Southtown #6 - 2.75% increase
-Southtown #7 - 2.75% increase
-Southtown #8 - 2.75% increase
-Southtown #9 - 2.75% increase
Total: GROUND RENT

Approved Approved
Budget
Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
$30
$30
$30
$30
$30
$30
$30
$30
$30
$30
$30
$30
$30
$30
$30
$30
$65
$65
$65
$65
$65
$65
$65
$65
$65
$65
$65
$65
$65
$65
$65
$65
$17
$31
$31
$31
$31
$31
$31
$31
$31
$31
$31
$31
$31
$31
$31
$31
$561
$576
$592
$609
$625
$642
$660
$678
$697
$716
$736
$756
$777
$798
$820
$843
$861
$885
$909
$934
$960
$986
$1,013
$1,041
$1,070
$1,099
$1,129
$1,160
$1,192
$1,225
$1,259
$1,293
$0
$364
$364
$728
$748
$769
$790
$811
$834
$857
$880
$904
$929
$955
$981
$1,008
$0
$0
$0
$550
$550
$1,100
$1,130
$1,161
$1,193
$1,226
$1,260
$1,294
$1,330
$1,367
$1,404
$1,443
$0
$0
$0
$0
$0
$615
$615
$1,230
$1,264
$1,299
$1,334
$1,371
$1,409
$1,447
$1,487
$1,528
$9,453

$10,057

$10,297

$11,638

$11,911

$13,374

$13,692

$14,633

$15,026

$15,405

$15,794

$16,214

$16,624

$17,072

$17,505

$17,949

$171
$131
$284
$171
$469
$31
$38
$63
$56
$32
$62
$0
$0
$0
$152

$176
$135
$293
$176
$483
$32
$40
$65
$58
$33
$64
$0
$0
$0
$157

$181
$139
$302
$181
$498
$33
$41
$67
$60
$34
$66
$0
$0
$0
$161

$187
$144
$311
$187
$513
$34
$42
$69
$61
$35
$68
$48
$0
$0
$166

$192
$148
$320
$192
$528
$35
$43
$71
$63
$36
$70
$49
$0
$0
$171

$198
$152
$330
$198
$544
$36
$45
$73
$65
$37
$72
$51
$64
$0
$176

$204
$157
$340
$204
$560
$37
$46
$76
$67
$38
$74
$52
$66
$0
$181

$210
$162
$350
$210
$577
$38
$47
$78
$69
$39
$76
$54
$68
$72
$187

$217
$166
$360
$217
$594
$39
$49
$80
$71
$41
$79
$56
$70
$74
$193

$223
$171
$371
$223
$612
$40
$50
$83
$73
$42
$81
$57
$72
$76
$198

$230
$177
$382
$230
$630
$42
$52
$85
$75
$43
$83
$59
$75
$79
$204

$237
$182
$394
$237
$649
$43
$53
$88
$78
$44
$86
$61
$77
$81
$210

$244
$187
$406
$244
$669
$44
$55
$90
$80
$46
$88
$63
$79
$83
$217

$251
$193
$418
$251
$689
$46
$56
$93
$82
$47
$91
$65
$81
$86
$223

$259
$199
$430
$259
$710
$47
$58
$96
$85
$48
$94
$66
$84
$89
$230

$266
$205
$443
$266
$731
$48
$60
$99
$87
$50
$97
$68
$86
$91
$237

$1,662

$1,712

$1,763

$1,864

$1,920

$2,042

$2,103

$2,238

$2,305

$2,375

$2,446

$2,519

$2,595

$2,673

$2,753

$2,835

-Motorgate - Net (Gross $220,000 Less $60,000 exp)/mth (2% inc.)

$2,037

$2,078

$2,119

$2,162

$2,205

$2,249

$2,294

$2,340

$2,387

$2,434

$2,483

$2,533

$2,583

$2,635

$2,688

$2,741

TRAMWAY
-Tram - Reduce Fare Reimb. - $12,000/mth (2% increase)
-Tram -$300,000/mth (2% increase)

$147
$4,000

$150
$4,200

$153
$4,284

$156
$4,370

$159
$4,457

$162
$4,546

$166
$4,637

$169
$4,730

$172
$4,824

$176
$4,921

$179
$5,019

$183
$5,120

$186
$5,222

$190
$5,327

$194
$5,433

$198
$5,542

Total: TRAMWAY

$4,147

$4,350

$4,437

$4,526

$4,616

$4,709

$4,803

$4,899

$4,997

$5,097

$5,199

$5,303

$5,409

$5,517

$5,627

$5,740

BUS & PARKING


-Octagon Bus - (2% increase)
-Bus Revenue - Remain (2% increase)
-Main Street Parking - (2% increase)

$111
$375
$168

$114
$382
$171

$116
$390
$175

$118
$397
$178

$120
$405
$182

$123
$414
$185

$125
$422
$189

$128
$430
$193

$130
$439
$197

$133
$448
$201

$136
$457
$205

$138
$466
$209

$141
$475
$213

$144
$485
$217

$147
$494
$222

$150
$504
$226

Total: BUS & PARKING

$654

$667

$680

$694

$708

$722

$736

$751

$766

$781

$797

$813

$829

$846

$863

$880

PUBLIC SAFETY REIMBURSEMENT


-Island House - (3% increase)
-Octagon - Public Safety Fees (3% increase)
-R.I. Associates (Manhattan Park) - (3% increase)
-Rivercross - (3% increase)
-Roosevelt Landings (Eastwood) - (3% increase)
-Southtown #1 (Sloan/Kettering) - Public Safety Fees (3% increase)
-Southtown #2 (Weil Medical) - (3% increase)
-Southtown #3 (Riverwalk Place) - (3% increase)
-Southtown #4 (Riverwalk Landing) - (3% increase)
-Southtown #5 (Riverwalk Court) - Safety Fees (3% increase)
-Southtown #6 (Riverwalk 6) - (3% increase)
-Southtown #7 (Riverwalk 7) - (est. 04/2016, est units 201@$20/mth)
-Southtown #8 (Riverwalk 8) - (est. 04/2018, est units 268@$20/mth)
-Southtown #9 (Riverwalk 9) - (est. 04/2015, est units 300@$20/mth)
-Westview - Public Safety Fees (increase 3% starting 2014)
Total: PUBLIC SAFETY REIMBURSEMENT
MOTORGATE

Page 18

Roosevelt Island Operating Corp.


Approved Budget FY 2014 - Revenues (In Thousands)
Approved Approved
Budget
Budget Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
TOTAL OPERATING INCOME:

$20,629

$21,358

$21,885

$27,347

$27,165

$29,445

$29,164

$32,466

$32,007

$33,561

$33,568

$35,135

$36,703

$38,343

$39,543

$41,165

OTHER INCOME
-Miscellaneous Revenues (3% increase)
-Telephone Commission - Sprint (3% increase)
-Telephone Commission - Verizon (3% increase)
-Tennis Fees - (3% increase)
-Permit Revenues - (3% increase)
-Sportspark - (3% increase)
-Sports Field Rental - Capobianco Feld (2% increase)
-Sports Field Rental - Fire Fighters' Field (5% increase)
-Sports Field Rental - Octagon Field (5% increase)
-Special Events Permits - (3% increase)
-Filming Fees - (5% increase)

$64
$47
$58
$51
$12
$100
$20
$87
$108
$12
$144

$36
$48
$60
$52
$12
$200
$20
$90
$140
$12
$84

$68
$50
$61
$54
$13
$206
$21
$92
$144
$13
$88

$70
$51
$63
$56
$13
$212
$21
$95
$149
$13
$93

$72
$53
$65
$57
$14
$219
$22
$98
$153
$14
$97

$74
$54
$67
$59
$14
$225
$22
$101
$158
$14
$102

$76
$56
$69
$61
$14
$232
$23
$104
$162
$14
$107

$78
$58
$71
$63
$15
$239
$23
$107
$167
$15
$113

$81
$59
$73
$65
$15
$246
$23
$110
$172
$15
$118

$83
$61
$75
$66
$16
$253
$24
$114
$177
$16
$124

$86
$63
$78
$68
$16
$261
$24
$117
$183
$16
$130

$88
$65
$80
$70
$17
$269
$25
$120
$188
$17
$137

$91
$67
$82
$73
$17
$277
$25
$124
$194
$17
$144

$93
$69
$85
$75
$18
$285
$26
$128
$200
$18
$151

$96
$71
$87
$77
$18
$294
$26
$132
$206
$18
$158

$99
$73
$90
$79
$19
$303
$27
$136
$212
$19
$166

Total: OTHER INCOME

$702

$755

$810

$835

$862

$890

$918

$948

$978

$1,010

$1,042

$1,076

$1,111

$1,146

$1,184

$1,222

INTEREST INCOME (Note B)


Capital - Reserve
Capital
Public Purpose
Operating

$250
$30
$2
$10

$150
$30
$1
$30

$300
$45
$1
$30

$525
$75
$1
$90

$750
$75
$1
$90

$1,080
$60
$1
$120

$1,160
$60
$1
$120

$1,240
$60
$1
$120

$1,830
$90
$2
$180

$1,800
$90
$2
$180

$1,770
$90
$2
$180

$1,740
$90
$2
$180

$1,710
$90
$2
$180

$1,710
$90
$2
$180

$1,710
$90
$2
$180

$1,710
$90
$2
$180

Total: INTEREST INCOME

$292

$211

$376

$691

$916

$1,261

$1,341

$1,421

$2,102

$2,072

$2,042

$2,012

$1,982

$1,982

$1,982

$1,982

$21,623

$22,323

$23,070

$28,873

$28,943

$31,596

$31,423

$34,835

$35,087

$36,642

$36,651

$38,222

$39,795

$41,471

$42,708

$44,369

TOTAL REVENUES:

Note (A): Southtown TEP (Tax Equivalent Payment) is based on appraised value and NYC tax rate at time of occurance. It is phased in over a 5 year period @20%,40%,60%,80% and the full amount in the 5th year.
A estimated TEP of $2,000,000 was used.
Note(B): Interest Caculation: (Projected Average Balances)
Capital - Reserve
Capital
Public Purpose
Operating
Interest Rate Used:

$25,000
$3,000
$50
$1,000

$15,000
$3,000
$50
$3,000

$20,000
$3,000
$50
$2,000

$35,000
$5,000
$50
$6,000

$50,000
$5,000
$50
$6,000

$54,000
$3,000
$50
$6,000

$58,000
$3,000
$50
$6,000

$62,000
$3,000
$50
$6,000

$61,000
$3,000
$50
$6,000

$60,000
$3,000
$50
$6,000

$59,000
$3,000
$50
$6,000

$58,000
$3,000
$50
$6,000

$57,000
$3,000
$50
$6,000

$57,000
$3,000
$50
$6,000

$57,000
$3,000
$50
$6,000

$57,000
$3,000
$50
$6,000

1.00%

1.00%

1.50%

1.50%

1.50%

2.00%

2.00%

2.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

3.00%

Note ( C): Island House assumes ground rent under the Conversion Condo Scenario.
Note ( D): Rivercross assumes staying in Mithchell/Lama
Note ( E): Westview assumes staying in Mithchell/Lama

Page 19

The Roosevelt Island Operating Corporation (RIOC)

Budget for Staffing Plan


FY 2013 vs. FY 2014
Aprroved Budget for FY 12/13

NAME

HOME
DEPT

JOB TITLE DESCR

Approved Budget for FY 13/14

FTE

STATUS

LOCATION Current Annual Salary


CODE
as 8/7/11

NAME

HOME
DEPT

JOB TITLE DESCR

Summary:
Administration:

Operations:

FTE

STATUS

LOCATION
CODE

Current Annual Salary


as 8/19/12

Summary:

Executive

4.00

1100

567,320

Finance

6.00

1300

Human Resources

2.00

Legal

Administration:

Executive

4.00

1100

567,314

425,686

Finance

6.00

1300

425,686

1400

139,424

Human Resources

2.00

1400

139,424

2.00

1600

169,724

Legal

2.00

1600

169,724

Community Relations

1.50

1800

80,544

Community Relations

2.00

1800

116,944

Total Administrative

15.50

Total Administrative

16.00

1,382,698

Operations:

1,419,092

Operations

0.00

2000

Operations

0.00

2000

Administrative Services

3.00

1050

177,082

Administrative Services

3.00

1050

177,082

IT

3.00

1500

228,339

IT

3.00

1500

228,339

Public Safety

41.50

2100

1,854,469

Public Safety

42.00

2100

1,871,483

Island Operations

0.00

2200

Island Operations

0.00

2200

Bus Operations

16.50

2240

875,687

Bus Operations

16.00

2240

844,758

Warehouse

2.50

2230

164,266

Warehouse

3.00

2230

164,266

Mortor Pool

4.00

2250

215,602

Mortor Pool

4.00

2250

215,602

3.00

2050

251,019

4.00

2050

319,019

Maintenance

5.00

2220

267,925

Maintenance

6.00

2220

318,656

Parks & Recreation

1.00

2300

73,824

Parks & Recreation

1.00

2300

73,824

Grounds

12.00

2210

626,028

Grounds

11.00

2210

575,026

Films & Permits

1.00

2310

58,444

Films & Permits

0.50

2310

58,444

Sportspark

6.50

3400

257,103

Sportspark

7.50

3400

296,103

Total Operations

99.00

5,049,787

Total Operations

101.00

5,142,602

Total RIOC

114.50

6,432,485

Total RIOC

117.00

6,561,694

Engineering

Over-time Wages

175,000

Total Salaries

6,607,485

Temporary Employees
Total Budgeted Wages

175,000
114.50

6,782,485

Engineering

Over-time Wages

175,000

Total Salaries

6,736,694

Temporary Employees
Total Budgeted Wages

Page 20

175,000
117.00

6,911,694

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014
Projected
2013
Revenue
Residential Fees Revenue
01-40122-5000
01-40123-5000
01-40401-5000
03-40400-5000
03-40401-5000
04-40401-5000

Approved
Budget 2013

Approved
Budget 2014

Variance
Favorable
(Unfavorable)

Variance
% Change

SOUTOWN 7,8,9 DEVELOPMENT FEES


TEP
NET PRESENT VALUE - Operating
CONDO ADDITIONAL SALES
NET PRESENT VALUE - Capital
NET PRESENT VALUE - Capital Reserved

$0
$548,000
$3,000
$250,000
$137,000
$202,000
$1,140,000

$134,000
$548,056
$3,425
$215,000
$136,981
$202,047
$1,239,509

$38,000
$568,000
$3,000
$80,000
$137,000
$202,000
$1,028,000

($96,000)
$19,944
($425)
($135,000)
$19
($47)
($211,509)

Ground rent
01-40015-5000
01-40090-5000

MANHATTAN PARK PERCENT RENT


GROUND RENT

$2,100,000
$7,289,000
$9,389,000

$2,164,000
$7,289,000
$9,453,000

$2,200,000
$7,857,000
$10,057,000

$36,000
$568,000
$604,000

1.66%
7.79%
6.39%

Commercial Rent
01-40208-4000

COMMERCIAL RENT

$1,437,000
$1,437,000

$1,437,000
$1,437,000

$1,466,000
$1,466,000

$29,000
$29,000

2.02%
2.02%

Tramway Revenue
01-40020-2900
01-40021-2900

TRAMWAY REVENUE
TRAMWAY REDUCED FARE REIMBURSEM

$4,400,000
$147,000
$4,547,000

$4,000,000
$147,000
$4,147,000

$4,200,000
$150,000
$4,350,000

$200,000
$3,000
$203,000

5.00%
2.04%
4.90%

$1,650,000
$1,650,000

$1,662,000
$1,662,000

$1,712,000
$1,712,000

$50,000
$50,000

3.01%
3.01%

$180,000
$360,000
$111,000
$1,950,000

$168,000
$375,000
$111,000
$2,037,000

$171,000
$382,000
$114,000
$2,078,000

$3,000
$7,000
$3,000
$41,000

1.79%
1.87%
2.70%
2.01%

Public Safety Reimbursement


01-40080-2100
PUBLIC SAFETY REIMBURSEMENT

Transport/ Parking Revenue


01-40000-5000
01-40010-2240
01-40010-5000
01-40030-6000

MAIN STREET PARKING


BUS REVENUE
BUS REVENUE - Octagon
MOTORGATE

Page 21

0.00%
3.64%
-12.41%
-62.79%
0.01%
-0.02%
-17.06%

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014
Projected
2013

Approved
Budget 2013

$2,601,000
Interest Income
01-40050-0000
02-40050-0000
03-40050-0000
04-40050-0000

INTEREST INCOME - Operating


INTEREST INCOME - Public Purpose
INTEREST INCOME - Capital
INTEREST INCOME - Capital Reserved

Unrealized Gain (Loss)


04-40051-0000

UNREALIZED GAIN (LOSS) - Capital Reserve

Other Revenue
01-40060-2310
01-40100-2310
01-40200-2310
01-40203-3400
01-40205-5000
01-40206-3000
01-40212-1500
01-40300-1000

FILMING
SPECIAL EVENTS PERMITS
SPORTS FIELD RENTAL
SPORTSPARK
PERMIT REVENUES
TENNIS FEE
TELEPHONE COMMISSION
MISCELLANEOUS REVENUE

Total Revenue:
Expenses
Personal Services (PS) :
Salaries
01-60010-1050
01-60010-1100
01-60010-1300
01-60010-1400
01-60010-1500

SALARIES - Administrative Services


SALARIES- Executive
SALARIES- Finance
SALARIES- Human Resources
SALARIES- Information Technology

$2,691,000

Approved
Budget 2014
$2,745,000

$5,000
$500
$1,000
$175,000
$181,500

$10,000
$1,000
$30,000
$250,000
$291,000

$30,000
$1,000
$30,000
$150,000
$211,000

$0
$0

$0
$0

$0
$0

$100,000
$12,000
$250,000
$200,000
$12,000
$51,000
$105,000
$64,000
$794,000

$144,000
$12,000
$215,000
$100,000
$12,000
$51,000
$105,000
$64,000
$703,000

$84,000
$12,000
$250,000
$200,000
$12,000
$52,000
$108,000
$36,000
$754,000

$21,739,500

$177,000
$567,000
$425,000
$139,000
$175,000
Page 22

$21,623,509

$177,082
$567,320
$425,686
$139,424
$228,339

$22,323,000

$177,082
$567,314
$425,686
$139,424
$228,339

Variance
Favorable
(Unfavorable)
$54,000

$20,000
$0
$0
($100,000)
($80,000)

$0
$0

($60,000)
$0
$35,000
$100,000
$0
$1,000
$3,000
($28,000)
$51,000

Variance
% Change
2.01%

200.00%
0.00%
0.00%
-40.00%
-27.49%

0.00%
0.00%

-41.67%
0.00%
16.28%
100.00%
0.00%
1.96%
2.86%
-43.75%
7.25%

$699,491

3.23%

$0
$6
$0
$0
$0

0.00%
0.00%
0.00%
0.00%
0.00%

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60010-1600
01-60010-1800
01-60010-2050
01-60010-2100
01-60010-2210
01-60010-2220
01-60010-2230
01-60010-2240
01-60010-2250
01-60010-2300
01-60010-2310
01-60010-3400

SALARIES- Legal
SALARIES- Community Relations
SALARIES - Engineering
SALARIES- Public Safety
SALARIES - Grounds
SALARIES - Maintenance
SALARIES- Warehouse
SALARIES - Bus Operations
SALARIES - Motor Pool
SALARIES - Parks & Recreations
SALARIES - Permits & Film
SALARIES- Sportspark

Projected
2013
$169,000
$80,000
$251,000
$1,925,000
$600,000
$280,000
$164,000
$900,000
$225,000
$85,000
$58,000
$250,000
$6,470,000

Approved
Budget 2013
$169,724
$80,544
$251,019
$1,854,469
$626,028
$267,925
$164,266
$875,687
$215,602
$73,824
$58,444
$257,103
$6,432,486

Approved
Budget 2014
$169,724
$116,944
$319,019
$1,871,483
$575,026
$318,656
$164,266
$844,758
$215,602
$73,824
$58,444
$296,103
$6,561,694

Variance
Favorable
(Unfavorable)
$0
($36,400)
($68,000)
($17,014)
$51,002
($50,731)
$0
$30,929
$0
$0
$0
($39,000)
($129,208)

Variance
% Change
0.00%
-45.19%
-27.09%
-0.92%
8.15%
-18.93%
0.00%
3.53%
0.00%
0.00%
0.00%
-15.17%
-2.01%

Salaries OT
01-60030-1500
01-60030-1800
01-60030-2050
01-60030-2100
01-60030-2210
01-60030-2220
01-60030-2230
01-60030-2240
01-60030-2250
01-60030-2300
01-60030-2310
01-60031-2100

SALARIES HOURLY OT- Information Techno


SALARIES HOURLY OT- Community Relation
SALARIES HOURLY OT - Engineering
SALARIES HOURLY OT- Public Safety
SALARIES HOURLY OT- Grounds
SALARIES HOURLY OT- Maintenance
SALARIES HOURLY OT- Warehouse
SALARIES HOURLY OT- Bus Operations
SALARIES HOURLY OT - Motor Pool
SALARIES HOURLY OT - Parks & Recreations
SALARIES HOURLY OT - Permits & Film
SALARIES HOURLY OT- Public Safety (Renw

$2,000
$2,000
$2,000
$80,000
$17,000
$25,000
$2,000
$35,000
$6,000
$2,000
$2,000
$0
$175,000

$2,000
$2,000
$2,000
$80,000
$17,000
$25,000
$2,000
$35,000
$6,000
$2,000
$2,000
$0
$175,000

$2,000
$2,000
$2,000
$80,000
$17,000
$25,000
$2,000
$35,000
$6,000
$2,000
$2,000
$0
$175,000

$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

Temporary Employees
01-60100-1000
01-60100-1050
01-60100-1800

TEMPORARY EMPLOYEE - Administrative


TEMPORARY EMPLOYEE - Administrative Se
TEMPORARY EMPLOYEE - Community Relat

$10,000
$1,000
$9,000

$10,000
$1,000
$9,000

$10,000
$1,000
$9,000

$0
$0
$0

0.00%
0.00%
0.00%

Page 23

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60100-2100
01-60100-2200
01-60100-2210
01-60100-2220
01-60100-2230
01-60100-2300
01-60100-3400

TEMPORARY EMPLOYEE - Public Safety


TEMPORARY EMPLOYEE - Island Operations
TEMPORARY EMPLOYEE - Grounds
TEMPORARY EMPLOYEE - Maintenance
TEMPORARY EMPLOYEE - Warehouse
TEMPORARY EMPLOYEE - Parks & Recreatio
TEMPORARY EMPLOYEE - Sportspark

Projected
2013
$16,000
$12,000
$65,000
$40,000
$7,000
$6,000
$9,000
$175,000
$6,820,000

Workers Compensation & Disability


01-60060-0000
WORKERS COMPENSATION - General
01-60070-1000
DISABILITY INSURANCE - Administrative

ER Payroll Taxes
01-60080-1000
01-60080-1050
01-60080-1100
01-60080-1300
01-60080-1400
01-60080-1500
01-60080-1600
01-60080-1800
01-60080-2050
01-60080-2100
01-60080-2200
01-60080-2210
01-60080-2220
01-60080-2230
01-60080-2240
01-60080-2250

ER PAYROLL TAXES- Administrative


ER PAYROLL TAXES - Administrative Service
ER PAYROLL TAXES - Executive
ER PAYROLL TAXES - Finance
ER PAYROLL TAXES - Human Resources
ER PAYROLL TAXES - Information Technolog
ER PAYROLL TAXES - Legal
ER PAYROLL TAXES - Community Relations
ER PAYROLL TAXES - Engineering
ER PAYROLL TAXES - Public Safety
ER PAYROLL TAXES - Island Operations
ER PAYROLL TAXES - Grounds
ER PAYROLL TAXES - Maintenance
ER PAYROLL TAXES - Warehouse
ER PAYROLL TAXES - Bus Operations
ER PAYROLL TAXES - Motor Pool

$160,000
$2,000
$162,000

$1,200
$14,700
$37,000
$35,000
$11,300
$18,600
$13,600
$8,000
$20,400
$164,300
$1,400
$61,000
$28,900
$14,600
$76,900
$18,300
Page 24

Approved
Budget 2013
$16,000
$12,000
$65,000
$40,000
$7,000
$6,000
$9,000
$175,000
$6,782,486

Approved
Budget 2014
$16,000
$12,000
$65,000
$40,000
$7,000
$6,000
$9,000
$175,000
$6,911,694

Variance
Favorable
(Unfavorable)
$0
$0
$0
$0
$0
$0
$0
$0

Variance
% Change
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%

($129,208)

-1.91%

$160,000
$2,133
$162,133

$160,000
$2,202
$162,202

$0
($69)
($69)

0.00%
-3.23%
-0.04%

$1,185
$14,701
$37,333
$34,635
$11,356
$18,656
$13,674
$8,072
$20,391
$164,368
$1,422
$61,035
$28,874
$14,584
$76,913
$18,333

$1,185
$14,701
$37,332
$34,635
$11,356
$18,656
$13,674
$11,201
$25,938
$166,017
$1,422
$58,318
$33,100
$14,584
$72,671
$18,333

$0
$0
$1
$0
$0
$0
$0
($3,129)
($5,547)
($1,649)
$0
$2,717
($4,226)
$0
$4,242
$0

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-38.76%
-27.20%
-1.00%
0.00%
4.45%
-14.64%
0.00%
5.52%
0.00%

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60080-2300
01-60080-2310
01-60080-3400

ER PAYROLL TAXES - Parks & Recreations


ER PAYROLL TAXES - Permits & Film
ER PAYROLL TAXES - Sportspark

Other Post Employment Benefits Other Than Pension (GASB 45)


01-60095-1000
OTHER POST EMPLOYMENT BENEFIT(OPE

Projected
2013
$6,800
$5,000
$24,000
$561,000

$425,000

MCTMT Taxes (3% Increase)


01-60071-1000
MCTMT TAXES- Administrative
01-60071-1050
MCTMT TAXES - Administrative Services
01-60071-1100
MCTMT TAXES - Executive
01-60071-1300
MCTMT TAXES - Finance
01-60071-1400
MCTMT TAXES - Human Resources
01-60071-1500
MCTMT TAXES - Information Technology
01-60071-1600
MCTMT TAXES - Legal
01-60071-1800
MCTMT TAXES - Community Relations
01-60071-2050
MCTMT TAXES - Engineering
01-60071-2100
MCTMT TAXES - Public Safety
01-60071-2200
MCTMT TAXES - Island Operations
01-60071-2210
MCTMT TAXES - Grounds
01-60071-2220
MCTMT TAXES - Maintenance
01-60071-2230
MCTMT TAXES - Warehouse
01-60071-2240
MCTMT TAXES - Bus Operations
01-60071-2250
MCTMT TAXES - Motor Pool
01-60071-2300
MCTMT TAXES - Parks & Recreations
01-60071-2310
MCTMT TAXES - Permits & Film
01-60071-3400
MCTMT TAXES - Sportspark

Health Insurance
01-60090-1050

HEALTH INSURANCE- ER - Administrative S


Page 25

Approved
Budget 2013
$6,857
$4,969
$24,185
$561,543

$425,000

Approved
Budget 2014
$6,857
$4,969
$27,859
$572,808

$425,000

Variance
Favorable
(Unfavorable)
$0
$0
($3,674)
($11,265)

$0

Variance
% Change
0.00%
0.00%
-15.19%
-2.01%

0.00%

$34
$605
$1,929
$1,447
$474
$783
$577
$312
$860
$6,631
$41
$2,407
$1,132
$590
$3,096
$753
$278
$206
$905
$23,060

$34
$605
$1,929
$1,447
$474
$783
$577
$312
$860
$6,631
$41
$2,407
$1,132
$590
$3,096
$753
$278
$206
$905
$23,060

$34
$605
$1,929
$1,447
$474
$783
$577
$436
$1,092
$6,688
$41
$2,234
$1,304
$590
$2,991
$753
$278
$206
$1,038
$23,500

$0
$0
$0
$0
$0
$0
$0
($124)
($232)
($57)
$0
$173
($172)
$0
$105
$0
$0
$0
($133)
($440)

0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-39.74%
-26.98%
-0.86%
0.00%
7.19%
-15.19%
0.00%
3.39%
0.00%
0.00%
0.00%
-14.70%
-1.91%

$33,000

$33,569

$36,549

($2,980)

-8.88%

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60090-1100
01-60090-1300
01-60090-1400
01-60090-1500
01-60090-1600
01-60090-1800
01-60090-2050
01-60090-2100
01-60090-2210
01-60090-2220
01-60090-2230
01-60090-2240
01-60090-2250
01-60090-2300
01-60090-2310
01-60090-3400

Dental/Vision
01-60091-1050
01-60091-1100
01-60091-1300
01-60091-1400
01-60091-1500
01-60091-1600
01-60091-1800
01-60091-2050
01-60091-2100
01-60091-2210
01-60091-2220
01-60091-2230
01-60091-2240
01-60091-2250

HEALTH INSURANCE- Executive


HEALTH INSURANCE - Finance
HEALTH INSURANCE - Human Resources
HEALTH INSURANCE-Information Technolog
HEALTH INSURANCE - Legal
HEALTH INSURANCE- Community Relations
HEALTH INSURANCE - Engineering
HEALTH INSURANCE- Public Safety
HEALTH INSURANCE- Grounds
HEALTH INSURANCE- Maintenance
HEALTH INSURANCE - Warehouse
HEALTH INSURANCE- Bus Operations
HEALTH INSURANCE - Motor Pool
HEALTH INSURANCE - Parks & Recreations
HEALTH INSURANCE - Permits & Film
HEALTH INSURANCE- Sportspark

Projected
2013
$61,000
$95,000
$25,000
$40,000
$25,000
$18,000
$43,000
$382,000
$150,000
$40,000
$34,000
$150,000
$40,000
$15,000
$8,000
$33,000
$1,192,000

Approved
Budget 2013
$61,939
$98,063
$25,815
$54,186
$25,815
$18,062
$43,877
$382,813
$171,673
$51,834
$37,993
$167,222
$42,993
$18,062
$7,753
$33,569
$1,275,238

Approved
Budget 2014
$56,199
$95,500
$28,099
$39,301
$28,100
$19,650
$67,400
$450,362
$155,864
$53,423
$41,288
$152,762
$42,991
$19,650
$8,449
$36,549
$1,332,136

Variance
Favorable
(Unfavorable)
$5,740
$2,563
($2,284)
$14,885
($2,285)
($1,588)
($23,523)
($67,549)
$15,809
($1,589)
($3,295)
$14,460
$2
($1,588)
($696)
($2,980)
($56,898)

Variance
% Change
9.27%
2.61%
-8.85%
27.47%
-8.85%
-8.79%
-53.61%
-17.65%
9.21%
-3.07%
-8.67%
8.65%
0.00%
-8.79%
-8.98%
-8.88%
-4.46%

$2,135
$5,981
$7,620
$2,108
$4,368
$1,639
$1,613
$3,721
$27,484
$1,613
$1,612
$2,756
$6,450
$965

$2,135
$5,981
$7,620
$2,108
$4,368
$1,639
$1,613
$3,721
$27,484
$1,613
$1,612
$2,756
$6,450
$965

$2,199
$5,010
$7,665
$2,172
$4,499
$1,688
$1,661
$5,494
$28,179
$994
$1,661
$2,838
$5,494
$994

($64)
$971
($45)
($64)
($131)
($49)
($48)
($1,773)
($695)
$619
($49)
($82)
$956
($29)

-3.00%
16.23%
-0.59%
-3.04%
-3.00%
-2.99%
-2.98%
-47.65%
-2.53%
38.38%
-3.04%
-2.98%
14.82%
-3.01%

DENTAL/ VISION - Administrative Services


DENTAL/ VISION- Executive
DENTAL/ VISION- Finance
DENTAL/ VISION- Human Resources
DENTAL/ VISION- Information Technology
DENTAL/ VISION- Legal
DENTAL/ VISION- Community Relations
DENTAL/ VISION - Engineering
DENTAL/ VISION- Public Safety
DENTAL/ VISION - Grounds
DENTAL/ VISION - Maintenance
DENTAL/ VISION- Warehouse
DENTAL/ VISION - Bus Operations
DENTAL/ VISION - Motor Pool
Page 26

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60091-2300
01-60091-2310
01-60091-3400

DENTAL/ VISION - Parks & Recreations


DENTAL/ VISION - Permits & Film
DENTAL/ VISION- Sportspark

Projected
2013
$1,612
$496
$2,604
$74,777

Approved
Budget 2013
$1,612
$496
$2,604
$74,777

Approved
Budget 2014
$1,661
$511
$2,682
$75,402

Variance
Favorable
(Unfavorable)
($49)
($15)
($78)
($625)

Variance
% Change
-3.04%
-3.02%
-3.00%
-0.84%

$857
$1,602
$1,912
$631
$987
$716
$284
$1,050
$10,088
$302
$303
$624
$1,171
$303
$327
$284
$688
$22,129

$857
$1,602
$1,912
$631
$987
$716
$284
$1,050
$10,088
$302
$303
$624
$1,171
$303
$327
$284
$688
$22,129

$1,104
$1,932
$2,406
$795
$1,234
$881
$366
$1,691
$13,144
$385
$385
$789
$1,514
$385
$409
$366
$934
$28,720

($247)
($330)
($494)
($164)
($247)
($165)
($82)
($641)
($3,056)
($83)
($82)
($165)
($343)
($82)
($82)
($82)
($246)
($6,591)

-28.82%
-20.60%
-25.84%
-25.99%
-25.03%
-22.99%
-28.87%
-61.05%
-30.29%
-27.48%
-27.06%
-26.44%
-29.29%
-27.06%
-25.08%
-28.87%
-35.76%
-29.78%

$33,468
$107,222
$80,455
$26,351
$43,156
$32,078
$11,046

$33,468
$107,222
$80,455
$26,351
$43,156
$32,078
$11,046

$36,833
$118,002
$88,543
$29,000
$47,494
$35,303
$12,156

($3,365)
($10,780)
($8,088)
($2,649)
($4,338)
($3,225)
($1,110)

-10.05%
-10.05%
-10.05%
-10.05%
-10.05%
-10.05%
-10.05%

Term Life /LTD (8% Increase)


01-60096-1050
TERM LIFE/LTD - Administrative Services
01-60096-1100
TERM LIFE/LTD- Executive
01-60096-1300
TERM LIFE/LTD- Finance
01-60096-1400
TERM LIFE/LTD- Human Resources
01-60096-1500
TERM LIFE/LTD- Information Technology
01-60096-1600
TERM LIFE/LTD- Legal
01-60096-1800
TERM LIFE/LTD- Community Relations
01-60096-2050
TERM LIFE/LTD - Engineering
01-60096-2100
TERM LIFE/LTD- Public Safety
01-60096-2210
TERM LIFE/LTD - Grounds
01-60096-2220
TERM LIFE/LTD - Maintenance
01-60096-2230
TERM LIFE/LTD- Warehouse
01-60096-2240
TERM LIFE/LTD - Bus Operations
01-60096-2250
TERM LIFE/LTD - Motor Pool
01-60096-2300
TERM LIFE/LTD - Parks & Recreations
01-60096-2310
TERM LIFE/LTD - Permits & Film
01-60096-3400
TERM LIFE/LTD- Sportspark

Pension
01-60092-1050
01-60092-1100
01-60092-1300
01-60092-1400
01-60092-1500
01-60092-1600
01-60092-1800

PENSION - Administrative Services


PENSION- Executive
PENSION- Finance
PENSION- Human Resources
PENSION- Information Technology
PENSION- Legal
PENSION- Community Relations

Page 27

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60092-2050
01-60092-2100
01-60092-2210
01-60092-2220
01-60092-2230
01-60092-2240
01-60092-2250
01-60092-2300
01-60092-2310
01-60092-3400

Othet Employee Benefits


01-60093-2210
01-60094-2210
01-60094-2220
01-60094-2240
01-60094-2250
01-60098-2220
01-60098-2240
01-60098-2250
01-60099-2220
01-60099-2240
01-60099-2250

PENSION - Engineering
PENSION- Public Safety
PENSION- Grounds
PENSION - Maintenance
PENSION- Warehouse
PENSION - Bus Operations
PENSION - Motor Pool
PENSION - Parks & Recreations
PENSION - Permits & Film
PENSION- Sportspark

Projected
2013
$47,443
$88,473
$62,411
$28,605
$25,887
$99,577
$24,527
$13,953
$11,046
$22,057
$757,755

Approved
Budget 2013
$47,443
$88,473
$62,411
$28,605
$25,887
$99,577
$24,527
$13,953
$11,046
$22,057
$757,755

Approved
Budget 2014
$66,356
$93,377
$59,152
$33,920
$28,489
$117,536
$25,762
$15,355
$12,156
$24,274
$843,708

$7,040
$2,393
$480
$1,680
$360
$480
$1,680
$360
$2,880
$10,080
$2,160
$29,593

$7,040
$2,393
$480
$1,680
$360
$480
$1,680
$360
$2,880
$10,080
$2,160
$29,593

$5,200
$1,995
$480
$1,560
$360
$480
$1,560
$360
$2,880
$9,360
$2,160
$26,395

FRINGE BENEFITS ANNUITY - Grounds


LEGAL SERVICES- Grounds
LEGAL SERVICES - Maintenance
LEGAL SERVICES - Bus Operations
LEGAL SERVICES - Motor Pool
SCHOLARSHIP AND EDUCATION - Maintena
SCHOLARSHIP AND EDUCATION - Bus Ope
SCHOLARSHIP AND EDUCATION - Motor Po
SUPPLEMENTAL BENEFITS - Maintenance
SUPPLEMENTAL BENEFITS - Bus Operations
SUPPLEMENTAL BENEFITS - Motor Pool

Other Than Personal Services (OTPS) :


Insurance
01-60200-1000
INSURANCE - General
01-60200-2900
INSURANCE - Tramway

Variance
Favorable
(Unfavorable)
($18,913)
($4,904)
$3,259
($5,315)
($2,602)
($17,959)
($1,235)
($1,402)
($1,110)
($2,217)
($85,953)

Variance
% Change
-39.86%
-5.54%
5.22%
-18.58%
-10.05%
-18.04%
-5.04%
-10.05%
-10.05%
-10.05%
-11.34%

$1,840
$398
$0
$120
$0
$0
$120
$0
$0
$720
$0
$3,198

26.14%
16.63%
0.00%
7.14%
0.00%
0.00%
7.14%
0.00%
0.00%
7.14%
0.00%
10.81%

$3,247,314

$3,331,228

$3,489,871

($158,642)

-4.76%

$10,067,314

$10,113,714

$10,401,565

($287,850)

-2.85%

($50,000)
$0

-5.00%
0.00%

$1,000,000
$150,000
Page 28

$1,000,000
$150,000

$1,050,000
$150,000

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014
Projected
2013
$1,150,000

Approved
Budget 2013
$1,150,000

Approved
Budget 2014
$1,200,000

Variance
Favorable
(Unfavorable)
($50,000)

Variance
% Change
-4.35%

Professional Services
01-60220-1050
01-60220-1100
01-60220-1120
01-60220-1300
01-60220-1400
01-60220-1500
01-60220-1700
01-60220-1800
01-60220-2050
01-60220-2200
01-60220-2210
01-60220-2900
01-60220-3000
01-60220-3400
01-60220-4000
01-60220-5000
03-60220-1300

PROFESSIONAL SERVICES - Administrative


PROFESSIONAL SERVICES - Executive
PROFESSIONAL SERVICES - Urban Fellowsh
PROFESSIONAL SERVICES - Finance
PROFESSIONAL SERVICES ADP - Payroll
PROFESSIONAL SERVICES - Information Tec
PROFESSIONAL SERVICES - Marketing/ Advn
PROFESSIONAL SERVICES - Community Rel
PROFESSIONAL SERVICES - Engineering
PROFESSIONAL SERVICES - Island Operation
PROFESSIONAL SERVICES - Grounds (Line S
PROFESSIONAL SERVICES- Tramway
PROFESSIONAL SERVICES - RI Locations Po
PROFESSIONAL SERVICES - Sportspark
PROFESSIONAL SERVICES - PM: Commercia
PROFESSIONAL SERVICES- PM Housing
PROFESSIONAL SERVICES - Finance

$30,000
$36,000
$65,000
$45,000
$51,000
$59,000
$6,000
$0
$50,000
$2,400
$0
$0
$0
$36,000
$0
$100,000
$0
$480,400

$10,000
$36,000
$65,000
$31,500
$51,000
$59,000
$6,000
$0
$18,000
$2,400
$0
$0
$0
$36,000
$0
$6,000
$0
$320,900

$6,000
$68,000
$0
$57,000
$54,000
$60,000
$6,000
$0
$68,000
$15,000
$0
$0
$0
$44,000
$0
$100,000
$0
$478,000

$4,000
($32,000)
$65,000
($25,500)
($3,000)
($1,000)
$0
$0
($50,000)
($12,600)
$0
$0
$0
($8,000)
$0
($94,000)
$0
($157,100)

40.00%
-88.89%
-100.00%
-80.95%
-5.88%
-1.69%
0.00%
0.00%
-277.78%
-525.00%
0.00%
0.00%
0.00%
-22.22%
0.00%
-1566.67%
0.00%
-48.96%

Marketing / Advertisting
01-60540-1000
01-60540-1800
01-60540-3400

MARKETING/ ADVERTISING - Administrativ


MARKETING/ ADVERTISING - Community R
MARKETING/ ADVERTISING - Sportspark

$12,000
$9,000
$2,400
$23,400

$6,000
$9,000
$2,400
$17,400

$6,000
$20,000
$3,000
$29,000

$0
($11,000)
($600)
($11,600)

0.00%
-122.22%
-25.00%
-66.67%

Management Fees
01-60210-2900
01-60210-6000
01-60310-2900

MANAGEMENT FEES -Tramway


MANAGEMENT FEE - Motorgate
FRANCHISE FEE - Tramway

$3,420,000
$660,000
$20,000
$4,100,000

$3,397,200
$660,000
$20,000
$4,077,200

$3,420,000
$660,000
$22,000
$4,102,000

($22,800)
$0
($2,000)
($24,800)

-0.67%
0.00%
-10.00%
-0.61%

Page 29

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014
Projected
2013

Approved
Budget 2013

Approved
Budget 2014

Variance
Favorable
(Unfavorable)

Variance
% Change

Legal Services
01-60240-1600
01-60240-4000
01-60240-5000
01-60241-1600
01-60242-1600
01-60243-1600
01-60246-0000
03-60240-1200

LEGAL SERVICES- Legal


LEGAL SERVICES- PM Commercial
LEGAL SERVICES- PM Housing
LEGAL SERVICES - Human Resources
LEGAL SERVICES - PM Commercial
LEGAL SERVICES - PM Housing
SETTLEMENTS - General
LEGAL SERVICES - Development, Future

$25,000
$0
$0
$100,000
$25,000
$100,000
$0
$0
$250,000

$25,000
$0
$0
$100,000
$25,000
$50,000
$0
$0
$200,000

$100,000
$0
$0
$100,000
$25,000
$150,000
$0
$0
$375,000

($75,000)
$0
$0
$0
$0
($100,000)
$0
$0
($175,000)

-300.00%
0.00%
0.00%
0.00%
0.00%
-200.00%
0.00%
0.00%
-87.50%

Telecommunications
01-60400-1500
01-60401-1500
01-60402-1500
01-60403-1500
01-60404-1500
01-60690-1500
01-60700-1500

TELEPHONE
TELEPHONE LONG DISTANCE
TELEPHONE- CELL
MAINTENANCE- INTERNAL TELEPHONE S
INTERNET SERVICE PROVIDER- DATA LIN
WEB SITE HOSTING
TV CABLE SERVICES

$60,000
$1,000
$28,000
$6,000
$20,000
$10,000
$0
$125,000

$58,200
$1,200
$24,000
$4,800
$18,000
$900
$0
$107,100

$60,000
$1,000
$28,000
$6,000
$20,000
$10,000
$0
$125,000

($1,800)
$200
($4,000)
($1,200)
($2,000)
($9,100)
$0
($17,900)

-3.09%
16.67%
-16.67%
-25.00%
-11.11%
-1011.11%
0.00%
-16.71%

Commercial Space Rent


01-61081-5100

Commercial Spaece rent

$12,000
$12,000

($12,000)
($12,000)

$5,000
$130,000
$5,000
$5,000

($200)
$0
$0
$0

$0

Repairs & Maintenance


01-60407-5000
01-60408-3000
01-60410-2210
01-60410-2220

REPAIRS & MAINT PARKING METERS - PM


REPAIRS & MAINT POTHOLES / LINE STRIP
REPAIRS & MAINT SEWERS - Grounds
REPAIRS & MAINT SEWERS - Maintenance

$4,800
$130,000
$5,000
$5,000
Page 30

$0

$4,800
$130,000
$5,000
$5,000

-4.17%
0.00%
0.00%
0.00%

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60410-2240
01-60410-2900
01-60410-3000
01-60411-2200
01-60411-2210
01-60411-2220
01-60411-6000
01-60412-0000
01-60412-1000
01-60412-2200
01-60412-2210
01-60412-2220
01-60412-2240
01-60412-2800
01-60412-2900
01-60412-3000
01-60412-3400
01-60412-4000
01-60412-5000
01-60412-6000
01-60413-2100
01-60413-2220
01-60413-2900
01-60413-3000
01-60413-3400
01-60414-1000
01-60414-2220
01-60414-2240
01-60414-3000
01-60414-3400

REPAIRS & MAINT SEWERS - Bus Operations


REPAIRS & MAINT SEWERS - Tramway
REPAIRS & MAINT SEWERS - RI Locations P
REPAIRS & MAINT ISLAND FIXTURES - Isla
REPAIRS & MAINT ISLAND FIXTURES - Gro
REPAIR & MAINT ISLAND FIX - Maintenance
REPAIR & MAINT ISLAND FIX - Motorgate
REPAIRS & MAINT BUILDING - General
REPAIRS & MAINT BUILDING- Administrativ
REPAIRS & MAINT BUILDING - Island Opera
REPAIRS & MAINT BUILDING - Grounds
REPAIRS & MAINT BUILDING - Maintenance
REPAIRS & MAINT BUILDING- Bus Operatio
REPAIRS & MAINT BUILDING- AVAC
REPAIRS & MAINT BUILDING - Tramway
REPAIRS & MAINT BUILDING - RI Locations
REPAIRS & MAINT BUILDING - Sportspark
REPAIRS & MAINT BUILDING - PM Commer
REPAIRS & MAINT BUILDING - PM Housing
REPAIRS & MAINT BUILDING - Motorgate
REPAIRS & MAINT ELEVATORS - Public Saf
REPAIRS & MAINT ELEVATORS - Maintenan
REPAIRS & MAINT ELEVATORS-Tramway
REPAIRS & MAINT ELEVATORS-RI Location
REPAIRS & MAINT ELEVATORS- Sportspark
REPAIRS & MAINT OTHER - Administrative
REPAIRS & MAINT OTHER - Maintenance
REPAIRS & MAINT OTHER - Bus Operations
REPAIRS & MAINT OTHER - RI Locations Po
REPAIRS & MAINT OTHER- Sportspark

Projected
2013
$5,000
$0
$10,000
$10,000
$10,000
$30,000
$0
$0
$5,000
$5,000
$0
$5,000
$10,000
$5,000
$15,000
$20,000
$40,000
$0
$0
$6,000
$3,000
$12,000
$4,800
$15,000
$3,000
$3,600
$6,000
$4,000
$24,000
$6,000
$402,200

Repairs & Maintenance Equipment


Page 31

Approved
Budget 2013
$5,000
$0
$10,000
$10,000
$10,000
$30,000
$0
$0
$5,000
$5,000
$0
$5,000
$10,000
$5,000
$15,000
$20,000
$40,000
$0
$0
$6,000
$3,000
$12,000
$4,800
$15,000
$3,000
$3,600
$6,000
$4,000
$24,000
$6,000
$402,200

Approved
Budget 2014
$5,000
$0
$10,000
$10,000
$10,000
$30,000
$0
$0
$5,000
$5,000
$0
$5,000
$10,000
$5,000
$15,000
$20,000
$40,000
$0
$0
$6,000
$3,000
$12,000
$15,000
$15,000
$3,000
$4,000
$6,000
$4,000
$24,000
$6,000
$413,000

Variance
Favorable
(Unfavorable)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
($10,200)
$0
$0
($400)
$0
$0
$0
$0
($10,800)

Variance
% Change
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-212.50%
0.00%
0.00%
-11.11%
0.00%
0.00%
0.00%
0.00%
-2.69%

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60440-1000
01-60440-2210
01-60440-2220
01-60440-2240
01-60440-2800
01-60440-2900

REPAIRS & MAINT EQUIP - Administrative


REPAIRS & MAINT EQUIP -Grounds
REPAIRS & MAINT EQUIPMENT - Maintenan
REPAIRS & MAINT EQUIP - Bus Operations
REPAIRS & MAINT EQUIPMENT - AVAC
REPAIRS & MAINT EQUIPMENT - Tramway

Other Repairs & Maintenance


01-60490-2210
TREES, SHRUBS & SOD- Grounds

Vehicles Gas
01-60450-1050
01-60450-2100
01-60450-2200
01-60450-2210
01-60450-2220
01-60450-2230
01-60450-2240
01-60450-2250
01-60450-3400

VEHICLES GAS - Administrative Services


VEHICLES GAS - Public Safety
VEHICLES GAS - Island Operations
VEHICLES GAS - Grounds
VEHICLES GAS - Maintenance
VEHICLES GAS - Warehouse
VEHICLES GAS - Bus Operations
VEHICLES GAS - Motor Pool
VEHICLES GAS - Sportspark

Variance
Favorable
(Unfavorable)
($800)
($800)
$400
($1,600)
$0
$0
($2,800)

Variance
% Change
-66.67%
-11.11%
16.67%
-19.05%
0.00%
0.00%
-11.11%

$120,000
$120,000

($15,000)
($15,000)

-14.29%
-14.29%

$1,500
$20,000
$0
$15,000
$4,000
$2,800
$124,000
$0
$1,000
$168,300

$1,000
$20,000
$0
$15,000
$4,000
$2,000
$124,000
$0
$1,000
$167,000

$500
$0
$0
$0
$0
$800
$0
$0
$0
$1,300

33.33%
0.00%
0.00%
0.00%
0.00%
28.57%
0.00%
0.00%
0.00%
0.77%

$1,200
$8,000
$1,200
$6,000
$6,000
$2,400
$48,000
$8,400

$1,000
$8,000
$1,000
$6,000
$6,000
$2,000
$48,000
$8,000

$200
$0
$200
$0
$0
$400
$0
$400

16.67%
0.00%
16.67%
0.00%
0.00%
16.67%
0.00%
4.76%

Projected
2013
$1,200
$7,200
$2,400
$8,400
$6,000
$0
$25,200

Approved
Budget 2013
$1,200
$7,200
$2,400
$8,400
$6,000
$0
$25,200

Approved
Budget 2014
$2,000
$8,000
$2,000
$10,000
$6,000

$105,000
$105,000

$105,000
$105,000

$1,500
$20,000
$0
$15,000
$4,000
$2,800
$124,000
$0
$1,000
$168,300

$1,200
$8,000
$1,200
$6,000
$6,000
$2,400
$48,000
$8,400

Vehicles Repair & Maintenance


01-60500-1050
VEHICLE REPAIRS & MAINT - Administrativ
01-60500-2100
VEHICLE REPAIR & MAINT- Public Safety
01-60500-2200
VEHICLE REPAIRS & MAINT - Island Operati
01-60500-2210
VEHICLE REPAIR & MAINT- Grounds
01-60500-2220
VEHICLE REPAIRS & MAINT. - Maintenance
01-60500-2230
VEHICLE REPAIRS & MAINT - Warehouse
01-60500-2240
VEHICLE REPAIR & MAINT- Bus Operations
01-60500-2250
VEHICLE REPAIRS & MAINT - Motor Pool
Page 32

$28,000

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60500-3400

VEHICLE REPAIRS & MAINT - Sportspark

Projected
2013
$2,400
$83,600

Approved
Budget 2013
$2,400
$83,600

Approved
Budget 2014
$1,000
$81,000

Variance
Favorable
(Unfavorable)
$1,400
$2,600

Variance
% Change
58.33%
3.11%

Vehicles Parts
01-60640-2050
01-60640-2100
01-60640-2210
01-60640-2230
01-60640-2240
01-60640-2250
01-60640-3400

VEHICLES PARTS - Engineering


VEHICLES PARTS - Public Safety
VEHICLES PARTS - Grounds
VEHICLES PARTS - Warehouse
VEHICLES PARTS - Bus Operations
VEHICLES PARTS - Motor Pool
VEHICLES PARTS - Sportspark

$0
$6,000
$3,000
$1,200
$20,000
$6,000
$1,000
$37,200

$0
$6,000
$3,000
$1,200
$20,000
$6,000
$1,000
$37,200

$0
$6,000
$3,000
$1,000
$40,000
$6,000
$1,000
$57,000

$0
$0
$0
$200
($20,000)
$0
$0
($19,800)

0.00%
0.00%
0.00%
16.67%
-100.00%
0.00%
0.00%
-53.23%

Equipment Lease
01-60300-1050
01-60300-2210
01-60300-2220
01-60300-2230
01-60300-2240
01-60300-2250
01-60300-2900

LEASED EQUIPMENT - Administrative Service


LEASED EQUIPMENT - Grounds
LEASED EQUIP- Maintenance
LEASED EQUIPMENT - Warehouse
LEASED EQUIP-Bus Operations
LEASED EQUIPMENT - Motor Pool
LEASED EQUIPMENT - Tramway

$5,000
$3,600
$3,000
$1,200
$2,400
$0
$1,200
$16,400

$5,000
$3,600
$3,000
$1,200
$2,400
$0
$1,200
$16,400

$12,000
$4,000
$3,000
$1,000
$2,000
$0
$2,000
$24,000

($7,000)
($400)
$0
$200
$400
$0
($800)
($7,600)

-140.00%
-11.11%
0.00%
16.67%
16.67%
0.00%
-66.67%
-46.34%

Office Equipment Purchase


01-60470-1000
01-60470-1050
01-60470-1100
01-60470-1500
01-60470-2050
01-60470-2100
01-60470-2210
01-60470-2230
01-60470-2250

OFFICE EQUIP PURCHASE - Administrative


OFFICE EQUIP PURCHASE - Administrative S
OFFICE EQUIP PURCHASE - Executive
OFFICE EQUIP PURCH - Information Technolo
OFFICE EQUIP PURCH - Engineering
OFFICE EQUIP PURCH - Public Safety
OFFICE EQUIP PURCHASE - Grounds
OFFICE EQUIP PURCHASE - Warehouse
OFFICE EQUIP PURCHASE - Motor Pool

$0
$2,400
$0
$9,600
$1,200
$3,000
$0
$1,200
$1,200

$0
$2,400
$0
$9,600
$1,200
$3,000
$0
$1,200
$1,200

$0
$2,000
$0
$10,000
$2,000
$3,000
$0
$1,000
$1,000

$0
$400
$0
($400)
($800)
$0
$0
$200
$200

0.00%
16.67%
0.00%
-4.17%
-66.67%
0.00%
0.00%
16.67%
16.67%

Page 33

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014
Projected
2013
01-60470-2800
01-60470-2900
01-60470-3400

Equipment Purchases
01-60510-1050
01-60510-1500
01-60510-2050
01-60510-2100
01-60510-2210
01-60510-2220
01-60510-2230
01-60510-2240
01-60510-2250
01-60510-2900
01-60510-3400

Variance
Favorable
(Unfavorable)
$0
$0
$200
($200)

Variance
% Change
0.00%
0.00%
16.67%
-1.01%

OFFICE EQUIP PURCHASE - AVAC


OFFICE EQUIP PURCH - Tramway
OFFICE EQUIP PURCHASE - Sportspark

$0
$0
$1,200
$19,800

EQUIPMENT PURCHASE - Administrative Ser


EQUIPMENT PURCHASE - Information Techn
EQUIPMENT PURCHASE - Engineering
EQUIPMENT PURCHASE - Public Safety
EQUIPMENT PURCHASE - Grounds
EQUIPMENT PURCHASE - Maintenance
EQUIPMENT PURCHASE - Warehouse
EQUIPMENT PURCHASE- Bus Operations
EQUIPMENT PURCHASE - Motor Pool
EQUIPMENT PURCHASE - Tramway
EQUIPMENT PURCHASE - Sportspark

$0
$0
$0
$18,800
$6,000
$2,400
$6,000
$4,200
$4,200
$6,000
$6,000
$53,600

$0
$0
$0
$18,800
$6,000
$2,400
$6,000
$4,200
$4,200
$6,000
$6,000
$53,600

$0
$0
$0
$18,000
$6,000
$4,000
$6,000
$6,000
$6,000
$6,000
$8,000
$60,000

$0
$0
$0
$800
$0
($1,600)
$0
($1,800)
($1,800)
$0
($2,000)
($6,400)

0.00%
0.00%
0.00%
4.26%
0.00%
-66.67%
0.00%
-42.86%
-42.86%
0.00%
-33.33%
-11.94%

$12,000
$6,000
$18,000

$12,000
$6,000
$18,000

$6,000
$6,000
$12,000

$6,000
$0
$6,000

50.00%
0.00%
33.33%

$2,100
$2,100
$5,100
$2,100
$2,100
$1,500
$0
$2,100

$2,100
$2,100
$5,100
$2,100
$2,100
$1,500
$0
$2,100

$2,000
$2,000
$5,000
$2,000
$2,000
$2,000
$0
$2,000

Other Equipment Purchases


01-60660-1500
COMPUTER PURCHASE SOFTWARE
01-60780-1500
COMPUTER PURCHASES

Exterminator
01-60250-1000
01-60250-2100
01-60250-2210
01-60250-2230
01-60250-2240
01-60250-2250
01-60250-2900
01-60250-3400

Approved
Budget 2014
$0
$0
$1,000
$20,000

Approved
Budget 2013
$0
$0
$1,200
$19,800

EXTERMINATOR - Admin
EXTERMINATOR - Public Safety
EXTERMINATOR - Grounds
EXTERMINATOR - Warehouse
EXTERMINATOR - Bus Operations
EXTERMINATOR - Motor Pool
EXTERMINATOR - Tramway
EXTERMINATOR - Sportspark
Page 34

$100
$100
$100
$100
$100
($500)
$0
$100

4.76%
4.76%
1.96%
4.76%
4.76%
-33.33%
0.00%
4.76%

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014
Projected
2013

Approved
Budget 2013

Approved
Budget 2014

$17,100

$17,100

$17,000

Variance
Favorable
(Unfavorable)
$100

Variance
% Change
0.58%

Uniforms
01-60290-1000
01-60290-2100
01-60290-2200
01-60290-2210
01-60290-2220
01-60290-2230
01-60290-2240
01-60290-2250
01-60290-2900
01-60290-3400
01-60291-2100
01-60291-2200
01-60291-2210
01-60291-2220
01-60291-2230
01-60291-2240
01-60291-2250
01-60291-2900

UNIFORMS - Administrative
UNIFORMS - Public Safety
UNIFORMS - Island Operations
UNIFORMS - Grounds
UNIFORMS - Maintenance
UNIFORMS - Warehouse
UNIFORMS - Bus Operations
UNIFORMS - Motor Pool
UNIFORMS - Tramway
UNIFORMS - Sportspark
UNIFORMS CLEANING- Public Safety
UNIFORMS CLEANING - Island Operations
UNIFORMS CLEANING - Grounds
UNIFORMS CLEANING - Maintenance
UNIFORMS CLEANING - Warehouse
UNIFORMS CLEANING - Bus Operations
UNIFORMS CLEANING - Motor Pool
UNIFORMS CLEANING - Tramway

$3,000
$26,100
$1,500
$3,900
$1,750
$1,550
$5,400
$1,800
$0
$1,800
$10,500
$300
$3,000
$1,250
$900
$3,000
$1,200
$0
$66,950

$3,000
$26,100
$1,500
$3,900
$1,750
$1,550
$5,400
$1,800
$0
$1,800
$10,500
$300
$3,000
$1,250
$900
$3,000
$1,200
$0
$66,950

$3,000
$26,000
$2,000
$4,000
$2,000
$1,000
$5,000
$2,000
$0
$2,000
$12,000
$0
$3,000
$1,000
$1,000
$3,000
$1,000
$0
$68,000

$0
$100
($500)
($100)
($250)
$550
$400
($200)
$0
($200)
($1,500)
$300
$0
$250
($100)
$0
$200
$0
($1,050)

0.00%
0.38%
-33.33%
-2.56%
-14.29%
35.48%
7.41%
-11.11%
0.00%
-11.11%
-14.29%
100.00%
0.00%
20.00%
-11.11%
0.00%
16.67%
0.00%
-1.57%

Light, Power, Heat


01-60320-1000
01-60320-2100
01-60320-2240
01-60320-2800
01-60320-2900
01-60320-3000
01-60320-3400
01-60320-4000
01-60320-6000

LIGHT, POWER, HEAT - Admin


LIGHT, POWER, HEAT - Public Safety
LIGHT, POWER, HEAT - Bus Operations
LIGHT, POWER, HEAT - AVAC
LIGHT, POWER, HEAT - Tramway
LIGHT, POWER, HEAT - RI Locations Points
LIGHT, POWER, HEAT - Sportspark
LIGHT, POWER, HEAT - PM Commercial
LIGHT, POWER, HEAT - Motorgate

$42,000
$60,000
$24,000
$12,000
$120,000
$180,000
$90,000
$24,000
$60,000

$42,000
$60,000
$24,000
$12,000
$60,000
$180,000
$90,000
$60,000
$60,000

$42,000
$60,000
$24,000
$12,000
$150,000
$180,000
$90,000
$24,000
$60,000

$0
$0
$0
$0
($90,000)
$0
$0
$36,000
$0

0.00%
0.00%
0.00%
0.00%
-100.00%
0.00%
0.00%
60.00%
0.00%

Page 35

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014
Projected
2013
$612,000

Approved
Budget 2013
$588,000

Approved
Budget 2014
$642,000

Variance
Favorable
(Unfavorable)
($54,000)

Variance
% Change
-9.18%

Water & Sewer


01-60322-1050
01-60322-2100
01-60322-2200
01-60322-2210
01-60322-2220
01-60322-2230
01-60322-2240
01-60322-2250
01-60322-2900
01-60322-3400

WATER & SEWER - Administrative Services


WATER & SEWER - Public Safety
WATER & SEWER - Island Operations
WATER & SEWER - Grounds
WATER & SEWER - Maintenance
WATER & SEWER - Warehouse
WATER & SEWER - Bus Operations
WATER & SEWER - Motor Pool
WATER & SEWER - Tramway
WATER & SEWER - Sportspark

$0
$0
$2,000
$0
$0
$0
$0
$0
$3,600
$3,000
$8,600

$0
$0
$2,000
$0
$0
$0
$0
$0
$3,600
$3,000
$8,600

$0
$0
$6,000
$0
$0
$0
$0
$0
$3,000
$3,000
$12,000

$0
$0
($4,000)
$0
$0
$0
$0
$0
$600
$0
($3,400)

0.00%
0.00%
-200.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-100.00%
0.00%
-39.53%

Office Supplies
01-60420-1000
01-60420-1050
01-60420-1100
01-60420-1500
01-60420-1600
01-60420-1800
01-60420-2050
01-60420-2100
01-60420-2200
01-60420-2230
01-60420-2240
01-60420-2900
01-60420-3400

OFFICE SUPPLIES - Administrative


OFFICE SUPPLIES - Administrative Services
OFFICE SUPPLIES - Executive
OFFICE SUPPLIES - Information Technology
OFFICE SUPPLIES - Legal
OFFICE SUPPLIES- Community Relations
OFFICE SUPPLIES - Engineering
OFFICE SUPPLIES - Public Safety
OFFICE SUPPLIES - Island Operations
OFFICE SUPPLIES - Warehouse
OFFICE SUPPLIES - Bus Operations
OFFICE SUPPLIES - Tramway
OFFICE SUPPLIES - Sportspark

$8,000
$0
$0
$3,000
$600
$300
$300
$4,000
$0
$0
$300
$0
$600
$17,100

$8,000
$0
$0
$3,000
$600
$300
$300
$4,000
$0
$0
$300
$0
$600
$17,100

$10,000
$0
$0
$3,000
$600
$300
$300
$4,000
$0
$0
$300
$0
$500
$19,000

($2,000)
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$100
($1,900)

-25.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
16.67%
-11.11%

Parts & Supplies


01-60430-1000

PARTS & SUPPLIES - Administrative

$1,800

$1,800

$2,000

($200)

-11.11%

Page 36

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

$0
$3,600
$7,500
$3,000
$800
$3,000
$6,000
$36,000
$36,000
$42,000
$6,000
$3,000
$38,000
$0
$6,000
$12,000
$6,000
$210,700

Approved
Budget 2013
$0
$3,600
$7,500
$3,000
$800
$3,000
$6,000
$36,000
$36,000
$42,000
$6,000
$3,000
$38,000
$0
$6,000
$12,000
$6,000
$210,700

Approved
Budget 2014
$0
$4,000
$7,500
$5,000
$1,500
$3,000
$6,000
$36,000
$36,000
$40,000
$6,000
$3,000
$38,000
$0
$6,000
$12,000
$6,000
$212,000

Variance
Favorable
(Unfavorable)
$0
($400)
$0
($2,000)
($700)
$0
$0
$0
$0
$2,000
$0
$0
$0
$0
$0
$0
$0
($1,300)

Variance
% Change
0.00%
-11.11%
0.00%
-66.67%
-87.50%
0.00%
0.00%
0.00%
0.00%
4.76%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-0.62%

$11,200
$11,500
$12,000
$6,600
$6,000
$7,200
$5,000
$600
$0
$2,400
$8,000
$70,500

$11,200
$11,500
$12,000
$6,600
$6,000
$7,200
$5,000
$600
$0
$2,400
$8,000
$70,500

$15,000
$12,000
$12,000
$7,000
$6,000
$7,000
$10,000
$1,000
$0
$2,000
$8,000
$80,000

($3,800)
($500)
$0
($400)
$0
$200
($5,000)
($400)
$0
$400
$0
($9,500)

-33.93%
-4.35%
0.00%
-6.06%
0.00%
2.78%
-100.00%
-66.67%
0.00%
-100.00%
0.00%
-13.48%

Projected
2013
01-60430-1050
PARTS & SUPPLY - Administrative Services
01-60430-1500
PARTS & SUPPLIES - Information Technology
01-60430-1514
PARTS & SUPPLIES - Access Control
01-60430-1800
PARTS & SUPPLIES - Community Relations
01-60430-2050
PARTS & SUPPLY - Engineering
01-60430-2100
PARTS & SUPPLIES - Public Safety
01-60430-2200
PARTS & SUPPLIES - Island Operations
01-60430-2210
PARTS & SUPPLIES - Grounds
01-60430-2220
PARTS & SUPPLIES - Maintenance
01-60430-2230
PARTS & SUPPLIES - Warehouse
01-60430-2240
PARTS & SUPPLIES - Bus Operations
01-60430-2250
PARTS & SUPPLIES - MotorPool
01-60430-2800
PARTS & SUPPLIES - AVAC
01-60430-2900
PARTS & SUPPLIES - Tramway
01-60430-3000
PARTS & SUPPLIES - RI Locations Points
01-60430-3400
PARTS & SUPPLIES - Sportspark
01-60430-6000
PARTS & SUPPLY - Motorgate
PARTS & SUPPLY - Motor Pool
Service Maintenance Agreement
01-60750-0000
SERVICE MAINTENANCE AGREE - General
01-60750-1300
SERVICE MAINTENANCE AGREE - Finance
01-60750-1500
SERVICE MAINTENANCE AGREEMENT- C
01-60750-1514
SERVICE MAINTENANCE AGREE - Access C
01-60750-2050
SERVICE MAINTENANCE AGREE - Engineer
01-60750-2100
SERVICE MAINTENANCE AGREE - Public Sa
01-60750-2240
SERVICE MAINTENANCE AGREE - Bus Ope
01-60750-2800
SERVICE MAINTENANCE AGREE - AVAC
01-60750-2900
SERVICE MAINTENANCE AGREE - Tramway
01-60750-3000
SERVICE MAINTENANCE AGREE - RI Locat
01-60750-3400
SERVICE MAINTENANCE AGREE - Sportspa

Page 37

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014
Projected
2013

Approved
Budget 2013

Approved
Budget 2014

Variance
Favorable
(Unfavorable)

Variance
% Change

Employee Travel & Meal


01-60520-1000
01-60520-1050
01-60520-1100
01-60520-1300
01-60520-1400
01-60520-1500
01-60520-1600
01-60520-1800
01-60520-2000
01-60520-2050
01-60520-2100
01-60520-2200
01-60520-2210
01-60520-2220
01-60520-2230
01-60520-2240
01-60520-2250
01-60520-3400

EMPL TRV & MEAL - Administrative


EMPL TRV & MEAL - Administrative Services
EMPL TRV & MEAL- Executive
EMPL TRV & MEAL- Finance
EMPL TRV & MEAL- Human Resources
EMPL TRV & MEAL- Information Technology
EMPL TRV & MEAL- Legal
EMPL TRV & MEAL- Community Relations
EMPL TRV & MEAL- Operations
EMPL TRV & MEAL- Engineering
EMPL TRV & MEAL- Public Safety
EMPL TRV & MEAL - Island Operations
EMPL TRV & MEAL- Grounds
EMPL TRV & MEAL- Maintenance
EMPL TRV & MEAL - Warehouse
EMPL TRV & MEAL- Bus Operations
EMPL TRV & MEAL - Motor Pool
EMPL TRV & MEAL - Sportspark

$1,200
$0
$3,600
$3,100
$900
$2,000
$900
$300
$600
$1,200
$2,000
$0
$0
$0
$0
$1,500
$0
$200
$17,500

$1,200
$0
$3,600
$3,100
$900
$2,000
$900
$300
$600
$1,200
$2,000
$0
$0
$0
$0
$1,500
$0
$200
$17,500

$0
$0
$600
$0
$0
$1,000
$1,000
$0
$0
$0
$600
$0
$0
$0
$0
$0
$0
$0
$3,200

$1,200
$0
$3,000
$3,100
$900
$1,000
($100)
$300
$600
$1,200
$1,400
$0
$0
$0
$0
$1,500
$0
$200
$14,300

100.00%
0.00%
83.33%
100.00%
100.00%
50.00%
-11.11%
100.00%
100.00%
100.00%
70.00%
0.00%
0.00%
0.00%
0.00%
100.00%
0.00%
100.00%
81.71%

Employee Training
01-60530-1000
01-60530-1050
01-60530-1100
01-60530-1300
01-60530-1400
01-60530-1500
01-60530-1600
01-60530-1800
01-60530-2050
01-60530-2100
01-60530-2200

EMPLOYEE TRAINING - Administrative


EMPLOYEE TRAINING - Administrative Servi
EMPLOYEE TRAINING - Executive
EMPLOYEE TRAINING - Finance
EMPLOYEE TRAINING - Human Resources
EMPLOYEE TRAINING - Information Technol
EMPLOYEE TRAINING - Legal
EMPLOYEE TRAINING - Community Relation
EMPLOYEE TRAINING - Engineering
EMPLOYEE TRAINING - Public Safety
EMPLOYEE TRAINING - Island Operations

$1,200
$1,200
$1,200
$3,600
$1,000
$3,800
$3,500
$300
$3,800
$14,600
$600

$1,200
$1,200
$1,200
$3,600
$1,000
$3,800
$3,500
$300
$3,800
$14,600
$600

$1,000
$1,000
$500
$2,900
$1,000
$5,000
$3,500
$500
$4,000
$15,000
$500

$200
$200
$700
$700
$0
($1,200)
$0
($200)
($200)
($400)
$100

16.67%
16.67%
58.33%
19.44%
0.00%
-31.58%
0.00%
-66.67%
-5.26%
-2.74%
16.67%

Page 38

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60530-2210
01-60530-2220
01-60530-2230
01-60530-2240
01-60530-2250
01-60530-2900
01-60530-3400

EMPLOYEE TRAINING - Grounds


EMPLOYEE TRAINING - Maintenance
EMPLOYEE TRAINING - Warehouse
EMPLOYEE TRAINING - Bus Operations
EMPLOYEE TRAINING - Motor Pool
EMPLOYEE TRAINING - Tramway
EMPLOYEE TRAINING - Sportspark

Shipping
01-60550-1000
01-60550-1050
01-60551-1050
01-60551-1400
01-60551-1800
01-60551-2050
01-60551-2100
01-60551-2200
01-60551-2210
01-60551-2230
01-60551-2240
01-60551-2250
01-60551-2800
01-60551-2900
01-60551-3400
01-60552-1000
01-60552-1500

POSTAGE - Administrative
POSTAGE - Administrative Services
SHIPPING - Administrative Services
SHIPPING - Human Resources
SHIPPING - Community Relations
SHIPPING - Engineering
SHIPPING - Public Safety
SHIPPING - Island Operations
SHIPPING - Grounds
SHIPPING - Warehouse
SHIPPING - Bus Operations
SHIPPING - Motor Pool
SHIPPING - AVAC
SHIPPING - Tramway
SHIPPING - Sportspark
UPS SHIPPING - Administrative
UPS SHIPPING - Information Technology

Projected
2013
$7,800
$1,200
$1,200
$8,400
$0
$0
$3,000
$56,400

Approved
Budget 2013
$7,800
$1,200
$1,200
$8,400
$0
$0
$3,000
$56,400

Approved
Budget 2014
$12,000
$1,000
$1,000
$8,500
$0
$0
$7,000
$64,400

Variance
Favorable
(Unfavorable)
($4,200)
$200
$200
($100)
$0
$0
($4,000)
($8,000)

Variance
% Change
-53.85%
16.67%
16.67%
-1.19%
0.00%
0.00%
-133.33%
-14.18%

$8,600
$0
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$0
$200
$600
$1,800
$13,400

$8,600
$0
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$0
$200
$600
$1,800
$13,400

$10,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$1,000
$0
$11,000

($1,400)
$0
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$200
$0
$200
($400)
$1,800
$2,400

-16.28%
0.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
100.00%
0.00%
100.00%
-66.67%
0.00%
17.91%

$3,000
$0
$1,000

$3,000
$0
$1,000

$0
$0
$0

$3,000
$0
$1,000

100.00%
0.00%
100.00%

Subscriptions / Membership
01-60560-1000
SUBSCRIPTIONS / MEMBERSHIP- Administr
01-60560-1050
SUBSCRIPTIONS/ MEMBERSHIP - Administr
01-60560-1300
SUBSCRIPTIONS/ MEMBERSHIP - Finance
Page 39

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014

01-60560-1600
01-60560-2050
01-60560-2100

Other Expenses
01-60570-0000
01-60580-1000
01-60580-1050
01-60580-1500
01-60580-1800
01-60580-2050
01-60580-2100
01-60580-2200
01-60580-2210
01-60580-2220
01-60580-2230
01-60580-2240
01-60580-2250
01-60580-3400
01-60630-1300
01-60790-1400
01-60790-2900
02-61750-1000

SUBSCRIPTIONS/ MEMBERSHIP - Legal


SUBSCRIPTIONS/ MEMBERSHIP - Engineerin
SUBSCRIPTIONS/ MEMBERSHIP - Public Saf

BANK CHARGES - General


MISCELLANEOUS - Administrative
MISCELLANEOUS - Administrative Services
MISCELLANEOUS - Information Technology
MISCELLANEOUS - Community Relations
MISCELLANEOUS - Engineering
MISCELLANEOUS - Public Safety
MISCELLANEOUS - Island Operations
MISCELLANEOUS - Grounds
MISCELLANEOUS - Maintenance
MISCELLANEOUS - Warehouse
MISCELLANEOUS - Bus Operations
MISCELLANEOUS - Motor Pool
MISCELLANEOUS - Sportspark
BAD DEBT EXPENSE
MTA METRO CARD PURCHASE- HR
MTA METRO CARD PURCHASE - Tramway
PUBLIC PURPOSE GRANTS

Projected
2013
$10,500
$300
$900
$15,700

Approved
Budget 2013
$10,500
$300
$900
$15,700

Approved
Budget 2014
$8,400
$0
$0
$8,400

Variance
Favorable
(Unfavorable)
$2,100
$300
$900
$7,300

Variance
% Change
20.00%
100.00%
100.00%
46.50%

$19,200
$20,000
$0
$0
$0
$0
$4,000
$0
$2,000
$0
$0
$600
$0
$600
$0
$16,800
$0
$275,000
$338,200

$19,200
$20,000
$0
$0
$0
$0
$4,000
$0
$2,000
$0
$0
$600
$0
$600
$0
$16,800
$0
$275,000
$338,200

$18,000
$16,000
$0
$0
$0
$0
$4,000
$0
$2,000
$0
$0
$0
$0
$0
$0
$16,000
$0
$275,000
$331,000

$1,200
$4,000
$0
$0
$0
$0
$0
$0
$0
$0
$0
$600
$0
$600
$0
$800
$0
$0
$7,200

6.25%
20.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
100.00%
0.00%
100.00%
0.00%
4.76%
0.00%
0.00%
2.13%

$79,000
$6,000
$85,000

$79,000
$6,000
$85,000

$80,000
$5,000
$85,000

($1,000)
$1,000
$0

-1.27%
16.67%
0.00%

($548,950)
($836,800)

-6.61%
-4.54%

Island Evenst - Community Relations


01-60681-1800
ISLAND EVENTS - Community Relations
01-60681-2100
ISLAND EVENTS - Public Safety

$8,587,250
$18,654,564
Page 40

$8,307,050
$18,420,764

$8,856,000
$19,257,565

The Roosevelt Island Operating Corporation (RIOC)


Budget Variance Report
Approved Budget 2014
Projected
2013

NET INCOME Before Depreciation:


Depreciation Expenses
03-70000-0000
03-70010-0000
03-70020-0000
03-70030-0000
03-70040-0000
03-70100-0000
03-70400-0000
03-70600-0000
03-70800-0000

DEPRECN EXPENSE OFFICE FURNITURE, F


DEPRCN EXPENSES BUILDINGS
DEPRCN EXPENSES BUILDINGS IMPROVEM
DEPRECN EXPENSES INFRASTRUCTURE
DEPRECN EXPENSES SEAWALL
DEPRECN EXPENSE VEHICLES
DEPRECN EXPENSE BUSES
DEPRECN EXPENSE LANDMARKS
DEPRECN EXPENSE EQUIPMENT

NET INCOME/(LOSS) Including Depreciation:

Approved
Budget 2013

Approved
Budget 2014

Variance
Favorable
(Unfavorable)

Variance
% Change

$3,084,936

$3,202,745

$3,065,435

($137,309)

-4.29%

$72,000
$694,000
$641,000
$1,155,000
$64,000
$56,000
$380,000
$303,000
$212,000
$3,577,000

$72,000
$694,000
$641,000
$1,155,000
$64,000
$56,000
$380,000
$303,000
$212,000
$3,577,000

$74,000
$708,000
$654,000
$1,178,000
$65,000
$57,000
$388,000
$309,000
$216,000
$3,649,000

($2,000)
($14,000)
($13,000)
($23,000)
($1,000)
($1,000)
($8,000)
($6,000)
($4,000)
($72,000)

-2.78%
-2.02%
-2.03%
-1.99%
-1.56%
-1.79%
-2.11%
-1.98%
-1.89%
-2.01%

($209,309)

-55.93%

($492,064)

Page 41

($374,255)

($583,565)

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
(-) 01-60200-1000-INSURANCE - General
Automobile
General Liability (including Tram)
Property (Including Equipment) - (excluding Tram)
Reserve for Deductible Payments
Boiler & Machinery
Director's & Officers Liability
Tram Liability Portion - Resposibilty of Operator
Total 01-60200-1000-INSURANCE - General
(-) 01-60200-2900-INSURANCE - Tramway
Property only (liability resposible by operator)
Total 01-60200-2900-INSURANCE - Tramway
(-) 01-60220-1050-PROFESSIONAL SERVICES - Administrative Services
Document Scanning Services
Total 01-60220-1100-PROFESSIONAL SERVICES - Administrative Services
(-) 01-60220-1100-PROFESSIONAL SERVICES - Executive
Public Relations Consultant
Green Energy Consulting
Total 01-60220-1100-PROFESSIONAL SERVICES - Executive
(-) 01-60220-1120-PROFESSIONAL SERVICES - Urban Fellowship Scholarship
National Urban Scholarship
Total 01-60220-1120-PROFESSIONAL SERVICES - Urban Fellowship Scholarship
(-) 01-60220-1300-PROFESSIONAL SERVICES - Finance
Annual Audit Fee
Blackbaud Annual Maintenance & Cloud Hosting Fees
Total 01-60220-1300-PROFESSIONAL SERVICES - Finance
(-) 01-60220-1400-PROFESSIONAL SERVICES ADP - Payroll
ADP Payroll Processing
FSA Processing
Total 01-60220-1400-PROFESSIONAL SERVICES ADP - Payroll
(-) 01-60220-1500-PROFESSIONAL SERVICES - Information Technology
Media Images - Annual Bandwith Storage
Media Images - Monthly Live Streaming
Media Images - Web Captioning - meetings 8 @$800/meeting
Disaster Recovery Services
Network Support Services - On Call
Total 01-60220-1500-PROFESSIONAL SERVICES - Information Technology
(-) 01-60220-1700-PROFESSIONAL SERVICES - Marketing/ Advng/ PR
Marketing - Misc Events
Total 01-60220-1700-PROFESSIONAL SERVICES - Marketing/ Advng/ PR
(-) 01-60220-2050-PROFESSIONAL SERVICES - Engineering
Engineering Consultant - partime

Page 42

Amount
$190,000
$730,000
$325,000
$50,000
$10,000
$25,000
($280,000)
$1,050,000
$150,000
$150,000
$6,000
$6,000
$48,000
$20,000
$68,000
$0
$0
$32,000
$25,000
$57,000
$50,000
$4,000
$54,000
$6,000
$4,000
$6,000
$38,000
$6,000
$60,000
$6,000
$6,000
$68,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Total 01-60220-2050-PROFESSIONAL SERVICES - Engineering
(-) 01-60220-2200-PROFESSIONAL SERVICES - Island Operations
CAD Consulting Services
Drivers Certifications - Island Operations
Total 01-60220-2200-PROFESSIONAL SERVICES - Island Operations
(-) 01-60220-3400-PROFESSIONAL SERVICES - Sportspark
Monthly Pool Servicing
Lifeguard Certifications
Swim Classes
Basketball Refereeing Services
Aerobic Classes
Total 01-60220-3400-PROFESSIONAL SERVICES - Sportspark
(-) 01-60220-4000-PROFESSIONAL SERVICES - PM: Commercial
Main Street Development - Master Lease
Total 01-60220-4000-PROFESSIONAL SERVICES - PM: Commercial
(-) 01-60220-5000-PROFESSIONAL SERVICES- PM Housing
Real Estate Consulting - Westview/Rivercross
Total 01-60220-5000-PROFESSIONAL SERVICES- PM Housing
(-) 01-60540-1000-MARKETING/ ADVERTISING - Administrative
Advertising - Events
Main Street Wire (Admin)
Total 01-60540-1000-MARKETING/ ADVERTISING - Administrative
(-) 01-60540-1800-MARKETING/ ADVERTISING - Community Relations
General Advertising - Promotion of FDR Memorial & Southpoint
Main Street Wire (Community Relations)
Printing (Banners/Posters/Calenders)
Total 01-60540-1800-MARKETING/ ADVERTISING - Community Relations
(-) 01-60540-3400-MARKETING/ ADVERTISING - Sportspark
Main Street Wire (Sportpark)
Total 01-60540-3400-MARKETING/ ADVERTISING - Sportspark
(-) 01-60210-2900-MANAGEMENT FEES -Tramway
POMA $283,100/month (includes all operating expenses plus liability insurance)
Bonding Insurance Fee
Total 01-60210-2900-MANAGEMENT FEES -Tramway
(-) 01-60210-6000-MANAGEMENT FEE - Motorgate
Central Parking - averaging $55,000/mth
Total 01-60210-6000-MANAGEMENT FEE - Motorgate
(-) 01-60310-2900-FRANCHISE FEE - Tramway
Franchise Fee - 1/2% $4,400,000
Total 01-60310-2900-FRANCHISE FEE - Tramway
(-) 01-60240-1600-LEGAL SERVICES- Legal

Page 43

Amount
$68,000
$12,000
$3,000
$15,000
$6,000
$2,000
$6,000
$24,000
$6,000
$44,000
$0
$0
$100,000
$100,000
$3,000
$3,000
$6,000
$11,000
$3,000
$6,000
$20,000
$3,000
$3,000
$3,400,000
20,000
$3,420,000
$660,000
$660,000
$22,000
$22,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Reduced Reserve from $75,000 to $25,000 - trend for last 3 years
Total 01-60240-1600-LEGAL SERVICES- Legal
(-) 01-60241-1600-LEGAL SERVICES - Human Resources
Increase @ 2009/2010 Amount (legal) to $100,000 - 3 union contracts expiring
Total 01-60241-1600-LEGAL SERVICES - Human Resources
(-) 01-60242-1600-LEGAL SERVICES - PM Commercial
Reduce Reserve from $100,000 to $25,000 - Master Lease Concluded
Total 01-60242-1600-LEGAL SERVICES - PM Commercial
(-) 01-60243-1600-LEGAL SERVICES - PM Housing
ST 7-9, Westview, Rivercross
Total 01-60243-1600-LEGAL SERVICES - PM Housing
(-) 01-60400-1500-TELEPHONE
Verizon - DSL Line
Verizon - Info Hot Line
Verizon - Local Service
Verizon - Motorgate Pay Phone
Total 01-60400-1500-TELEPHONE
(-) 01-60401-1500-TELEPHONE LONG DISTANCE
ATT - Averaging $80/mth
Total 01-60401-1500-TELEPHONE LONG DISTANCE
(-) 01-60402-1500-TELEPHONE - CELL
Nextel - averaging $2,250/month
Total 01-60401-1500-TELEPHONE LONG DISTANCE
(-) 01-60403-1500-MAINTENANCE- INTERNAL TELEPHONE SYSTEM HARDWARE
Annual Maintenance - CBS Whitcom
Phone System Equipment
Total 01-60403-1500-MAINTENANCE- INTERNAL TELEPHONE SYSTEM HARDWA
(-) 01-60404-1500-INTERNET SERVICE PROVIDER- DATA LINE
Covad - Internet Data Line
Verizon - AVAC DSL Line $90/mnth
Verizon - PSD DSL Line $125/mnth
Verizon - ENG. DSL Line $90/mnth
Verizon - 591. DSL Line $415/mnth
Verizon - BRIDGE Lic. REC.. DSL Line $130/mnth
Verizon - SPORTSPARK DSL Line $230/mnth
Verizon - WAREHOUSE DSL Line $230/mnth
Total 01-60404-1500-INTERNET SERVICE PROVIDER- DATA LINE
(-) 01-60690-1500-WEB SITE HOSTING
EZ Facility
Grand Central Network
Total 01-60690-1500-WEB SITE HOSTING

Page 44

Amount
$100,000
$100,000
$100,000
$100,000
$25,000
$25,000
$150,000
$150,000
$7,800
$3,000
$48,000
$1,200
$60,000
$1,000
$1,000
$28,000
$28,000
$4,800
$1,200
$6,000
$4,100
$1,100
$1,500
$1,100
$5,000
$1,600
$2,800
$2,800
$20,000
$4,000
$6,000
$10,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
(-) 01-60407-5000-REPAIR & MAINT PARKING METER - PM: Housing
Parking Meter Preventive Maintenance
Replacement Cards est. 2@$1,200
Total 01-60407-5000-REPAIR & MAINT PARKING METER - PM: Housing
(-) 01-60408-3000-REPAIRS & MAINT POTHOLES - RI Locations Points
Reserve to remain for Potholes@ $100,000
Reserve to remain for Line Striping @ $30,000 (trans. from Professional services)
Total 01-60408-3000-REPAIRS & MAINT POTHOLES - RI Locations Points
(-) 01-60410-2210-REPAIRS & MAINT SEWERS - Grounds
Reserve to remain @ $5,000
Total 01-60410-2210-REPAIRS & MAINT SEWERS - Grounds
(-) 01-60410-2220-REPAIRS & MAINT SEWERS - Maintenance
Reserve to remain @ $5,000
Total 01-60410-2220-REPAIRS & MAINT SEWERS - Maintenance
(-) 01-60410-2240-REPAIRS & MAINT SEWERS - Bus Operations
Reserve to remain @ $5,000
Total 01-60410-2240-REPAIRS & MAINT SEWERS - Bus Operations
(-) 01-60410-3000-REPAIRS & MAINT SEWERS - RI Locations Points
Reserve to remain @ $10,000
Total 01-60410-3000-REPAIRS & MAINT SEWERS - RI Locations Points
(-) 01-60411-2200-REPAIRS & MAINT ISLAND FIXTURES - Island Operations
Reserve to remain @ $10,000
Total 01-60411-2200-REPAIRS & MAINT ISLAND FIXTURES - Island Operations
(-) 01-60411-2210-REPAIRS & MAINT ISLAND FIXTURES - Grounds
Reserve to remain @ $10,000
Total 01-60411-2210-REPAIRS & MAINT ISLAND FIXTURES - Grounds
(-) 01-60411-2220-REPAIR & MAINT ISLAND FIX - Maintenance
Reserve to remain @ $30,000
Total 01-60411-2220-REPAIR & MAINT ISLAND FIX - Maintenance
(-) 01-60412-1000-REPAIRS & MAINT BUILDING- Administrative
Reserve to remain @ $5,000
Total 01-60412-1000-REPAIRS & MAINT BUILDING- Administrative
(-) 01-60412-2200-REPAIRS & MAINT BUILDING - Island Operations
Reserve to remain @ $5,000
Total 01-60412-2200-REPAIRS & MAINT BUILDING - Island Operations
(-) 01-60412-2220-REPAIRS & MAINT BUILDING - Maintenance
Reserve to remain @ $5,000
Total 01-60412-2220-REPAIRS & MAINT BUILDING - Maintenance
(-) 01-60412-2240-REPAIRS & MAINT BUILDING- Bus Operations
Reserve to remain @ $10,000
Total 01-60412-2240-REPAIRS & MAINT BUILDING- Bus Operations

Page 45

Amount
$2,500
$2,500
$5,000
$100,000
$30,000
$130,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$10,000
$10,000
$10,000
$10,000
$10,000
$10,000
$30,000
$30,000
$5,000
$5,000
$5,000
$5,000
$5,000
$5,000
$10,000
$10,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
(-) 01-60412-2800-REPAIRS & MAINT BUILDING- AVAC
Reserve to remain @ $5,000
Total 01-60412-2800-REPAIRS & MAINT BUILDING- AVAC
(-) 01-60412-2900-REPAIRS & MAINT BUILDING - Tramway
Reserve to remain @ $15,000
Total 01-60412-2900-REPAIRS & MAINT BUILDING - Tramway
(-) 01-60412-3000-REPAIRS & MAINT BUILDING - RI Locations Points
Reserve Increase to @ $20,000
Total 01-60412-3000-REPAIRS & MAINT BUILDING - RI Locations Points
(-) 01-60412-3400-REPAIRS & MAINT BUILDING - Sportspark
Mens Lockers - Gym
Painting - Sportpark
Misc. Repairs
Total 01-60412-3400-REPAIRS & MAINT BUILDING - Sportspark
(-) 01-60412-4000-REPAIRS & MAINT BUILDING - PM Commercial
Responsibility of Master Lessor
Total 01-60412-4000-REPAIRS & MAINT BUILDING - PM Commercial
(-) 01-60412-6000-REPAIRS & MAINT BUILDING - Motorgate
Minor Repairs - Not thru Central Parking
Total 01-60412-6000-REPAIRS & MAINT BUILDING - Motorgate
(-) 01-60413-2100-REPAIRS & MAINT ELEVATORS - Public Safety
Slade Elevator - Monthly Maintenance
Total 01-60413-2100-REPAIRS & MAINT ELEVATORS - Public Safety
(-) 01-60413-2200-REPAIRS & MAINT ELEVATORS - Maintenance
Slade Elevator - Monthly - Cultural Center
Slade Elevator - Monthly - Good Shephard
Slade Elevator -Monthly - Blackwell School
Other Elevator Repairs - RI Location Points
Total 01-60413-2200-REPAIRS & MAINT ELEVATORS - Maintenance
(-) 01-60413-2900-REPAIRS & MAINT ELEVATORS-Tramway
Slade Elevator - $400/mth - RIOC responsible not Leitner/Poma
Reserve for Repairs
Total 01-60413-2900-REPAIRS & MAINT ELEVATORS-Tramway
(-) 01-60413-3000-REPAIRS & MAINT ELEVATORS- RI Location Points
Elevator Repairs & Inspections - Island wide
Total 01-60413-3000-REPAIRS & MAINT ELEVATORS- RI Location Points
(-) 01-60413-3400-REPAIRS & MAINT ELEVATORS- Sportspark
Slade Elevator - $250/mth - Sportpark
Total 01-60413-3400-REPAIRS & MAINT ELEVATORS- Sportspark
(-) 01-60414-1000-REPAIRS & MAINT OTHER - Administrative
Carpet Cleaning - 591 Main Street

Page 46

Amount
$5,000
$5,000
$15,000
$15,000
$20,000
$20,000
$30,000
$6,000
$4,000
$40,000
$0
$0
$6,000
$6,000
$3,000
$3,000
$3,000
$3,000
$3,000
$3,000
$12,000
$5,000
$10,000
$15,000
$15,000
$15,000
$3,000
$3,000
$2,400

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Misc. Repairs - 591 Main
Total 01-60414-1000-REPAIRS & MAINT OTHER - Administrative
(-) 01-60414-2220-REPAIRS & MAINT OTHER - Maintenance
Carpet Cleaning - Maintenance
Misc. Repairs - Maintenace
Total 01-60414-2220-REPAIRS & MAINT OTHER - Maintenance
(-) 01-60414-2240-REPAIRS & MAINT OTHER - Bus Operations
Reserve to $4,000
Total 01-60414-2240-REPAIRS & MAINT OTHER - Bus Operations
(-) 01-60414-3000-REPAIRS & MAINT OTHER - RI Locations Points
Reserve to $24,000
Total 01-60414-3000-REPAIRS & MAINT OTHER - RI Locations Points
(-) 01-60414-3400-REPAIRS & MAINT OTHER- Sportspark
Reserve to remain @ $6,000
Total 01-60414-3400-REPAIRS & MAINT OTHER- Sportspark
(-) 01-60440-1000-REPAIRS & MAINT EQUIP - Administrative
Reserve to $2,000
Total 01-60440-1000-REPAIRS & MAINT EQUIP - Administrative
(-) 01-60440-2210-REPAIRS & MAINT EQUIP -Grounds
Maint. for Power Tools
Misc. Repairs Eqipment - Grounds
Semi-Annual Maint. - Backhoe
Total 01-60440-2210-REPAIRS & MAINT EQUIP -Grounds
(-) 01-60440-2220-REPAIRS & MAINT EQUIPMENT - Maintenance
Reserve to @ $2,000
Total 01-60440-2220-REPAIRS & MAINT EQUIPMENT - Maintenance
(-) 01-60440-2240-REPAIRS & MAINT EQUIP - Bus Operations
Annual Maint. - Lifts
Maintenance - Gasboy Fuel Station
Misc Repairs Equip. - Bus
Total 01-60440-2240-REPAIRS & MAINT EQUIP - Bus Operations
(-) 01-60440-2800-REPAIRS & MAINT EQUIPMENT - AVAC
Reserve to remain @ $6,000
Total 01-60440-2800-REPAIRS & MAINT EQUIPMENT - AVAC
(-) 01-60440-2900-REPAIRS & MAINT EQUIPMENT - Tramway
Equipment repairs responsibility of Operator
Total 01-60440-2900-REPAIRS & MAINT EQUIPMENT - Tramway
(-) 01-60490-2210-TREES, SHRUBS & SOD- Grounds
LI Landscap - Blackwell Park
LI Landscap - Riverwalk
LI Landscap - Southpoint Park

Page 47

Amount
$1,600
$4,000
$3,600
$2,400
$6,000
$4,000
$4,000
$24,000
$24,000
$6,000
$6,000
$2,000
$2,000
$3,600
$2,000
$2,400
$8,000
$2,000
$2,000
$4,000
$3,000
$3,000
$10,000
$6,000
$6,000
$0
$0
$7,200
$9,600
$32,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Mulch & Topsoil
Tree Pruning
Trees & Shrubs
Southpoint Park - Weeding Maintenance
Total 01-60490-2210-TREES, SHRUBS & SOD- Grounds
(-) 01-60450-1050-VEHICLES GAS - Administrative Services
Reserve to @ $10500
Total 01-60450-1050-VEHICLES GAS - Administrative Services
(-) 01-60450-2100-VEHICLES GAS - Public Safety
Reserve to Remain @ $20,000
Total 01-60450-2100-VEHICLES GAS - Public Safety
(-) 01-60450-2210-VEHICLES GAS - Grounds
Reserve to remain @ $15,000
Total 01-60450-2210-VEHICLES GAS - Grounds
(-) 01-60450-2220-VEHICLES GAS - Maintenance
Reserve to remain @ $4,000
Total 01-60450-2220-VEHICLES GAS - Maintenance
(-) 01-60450-2230-VEHICLES GAS - Warehouse
Reserve to @ $2,000
Total 01-60450-2230-VEHICLES GAS - Warehouse
(-) 01-60450-2240-VEHICLES GAS - Bus Operations
Reserve to remain @ $124,000
Total 01-60450-2240-VEHICLES GAS - Bus Operations
(-) 01-60450-3400-VEHICLES GAS - Sportspark
Reserve to remain @ $1,000
Total 01-60450-3400-VEHICLES GAS - Sportspark
(-) 01-60500-1000-VEHICLE REPAIR & MAINT - Administrative
Hybrid Repairs
Total 01-60500-1000-VEHICLE REPAIR & MAINT - Administrative
(-) 01-60500-2100-VEHICLE REPAIR & MAINT- Public Safety
Reserve to remain @ $8,000
Total 01-60500-2100-VEHICLE REPAIR & MAINT- Public Safety
(-) 01-60500-2200-VEHICLE REPAIRS & MAINT - Island Operations
Reserve to @ $1,000
Total 01-60500-2200-VEHICLE REPAIRS & MAINT - Island Operations
(-) 01-60500-2210-VEHICLE REPAIR & MAINT- Grounds
Reserve to remain @ $6,000
Total 01-60500-2210-VEHICLE REPAIR & MAINT- Grounds
(-) 01-60500-2220-VEHICLE REPAIRS & MAINT. - Maintenance
Reserve to remain @ $6,000
Total 01-60500-2220-VEHICLE REPAIRS & MAINT. - Maintenance

Page 48

Amount
$12,000
$9,600
$34,600
$15,000
$120,000
$1,000
$1,000
$20,000
$20,000
$15,000
$15,000
$4,000
$4,000
$2,000
$2,000
$124,000
$124,000
$1,000
$1,000
$1,000
$1,000
$8,000
$8,000
$1,000
$1,000
$6,000
$6,000
$6,000
$6,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
(-) 01-60500-2230-VEHICLE REPAIRS & MAINT - Warehouse
Reserve to @ $2,000
Total 01-60500-2230-VEHICLE REPAIRS & MAINT - Warehouse
(-) 01-60500-2240-VEHICLE REPAIR & MAINT- Bus Operations
Reserve to remain @ $48,000
Total 01-60500-2240-VEHICLE REPAIR & MAINT- Bus Operations
(-) 01-60500-2250-VEHICLE REPAIRS & MAINT - Motor Pool
Reserve to @ $8,000
Total 01-60500-2250-VEHICLE REPAIRS & MAINT - Motor Pool
(-) 01-60500-3400-VEHICLE REPAIRS & MAINT - Sportspark
Reserve to @ $1,000
Total 01-60500-3400-VEHICLE REPAIRS & MAINT - Sportspark
(-) 01-60640-2100-VEHICLES PARTS - Public Safety
Increase Reserve to $6,000
Total 01-60640-2100-VEHICLES PARTS - Public Safety
(-) 01-60640-2210-VEHICLES PARTS - Grounds
Reserve to remain @ $3,000
Total 01-60640-2210-VEHICLES PARTS - Grounds
(-) 01-60640-2230-VEHICLES PARTS - Warehouse
Reserve to remain @ $1,200
Total 01-60640-2230-VEHICLES PARTS - Warehouse
(-) 01-60640-2240-VEHICLES PARTS - Bus Operations
Reserve to @ $40,000
Total 01-60640-2240-VEHICLES PARTS - Bus Operations
(-) 01-60640-2250-VEHICLES PARTS - Motor Pool
Reserve to remain @ $6,000
Total 01-60640-2250-VEHICLES PARTS - Motor Pool
(-) 01-60640-3400-VEHICLES PARTS - Sportspark
Reserve to remain @ $1,000
Total 01-60640-3400-VEHICLES PARTS - Sportspark
(-) 01-60300-1050-LEASED EQUIPMENT - Administrative Services
EMS Smart Meter
Renting of Xmas Street Lights
Total 01-60300-1050-LEASED EQUIPMENT - Adminstrative Services
(-) 01-60300-2210-LEASED EQUIPMENT - Grounds
Misc. Leased Equip - Grounds
Storage Containers - Maintenace
Total 01-60300-2210-LEASED EQUIPMENT - Grounds
(-) 01-60300-2220-LEASED EQUIP- Maintenance
ADA Portable Toilets - Maintenance
Total 01-60300-2220-LEASED EQUIP- Maintenance

Page 49

Amount
$2,000
$2,000
$48,000
$48,000
$8,000
$8,000
$1,000
$1,000
$6,000
$6,000
$3,000
$3,000
$1,000
$1,000
$40,000
$40,000
$6,000
$6,000
$1,000
$1,000
$7,000
$5,000
$12,000
$2,400
$1,600
$4,000
$3,000
$3,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
(-) 01-60300-2230-LEASED EQUIPMENT - Warehouse
Misc. Leased Equip - Warehouse
Total 01-60300-2230-LEASED EQUIPMENT - Warehouse
(-) 01-60300-2240-LEASED EQUIP-Bus Operations
Gas Cylinders - Bus
Misc. Leased Equip. - Bus
Total 01-60300-2240-LEASED EQUIP-Bus Operations
(-) 01-60300-2900-LEASED EQUIPMENT - Tramway
Temporary enclosures - Tramway
Total 01-60300-2900-LEASED EQUIPMENT - Tramway
(-) 01-60470-1000-OFFICE EQUIP PURCHASE - Administrative
Reserve to @ $2,000
Total 01-60470-1000-OFFICE EQUIP PURCHASE - Administrative
(-) 01-60470-1500-OFFICE EQUIP PURCH - Information Technology
Reserve to @ $10,000
Total 01-60470-1500-OFFICE EQUIP PURCH - Information Technology
(-) 01-60470-2050-OFFICE EQUIP PURCHASE - Engineering
Reserve to @ $2,000
Total 01-60470-2050-OFFICE EQUIP PURCHASE - Engineering
(-) 01-60470-2100-OFFICE EQUIP PURCH - Public Safety
Reserve to remain @ $3,000
Total 01-60470-2100-OFFICE EQUIP PURCH - Public Safety
(-) 01-60470-2230-OFFICE EQUIP PURCHASE - Warehouse
Reserve to @ $1,000
Total 01-60470-2230-OFFICE EQUIP PURCHASE - Warehouse
(-) 01-60470-2250-OFFICE EQUIP PURCHASE - Motor Pool
Reserve to @ $1,000
Total 01-60470-2250-OFFICE EQUIP PURCHASE - Motor Pool
(-) 01-60470-2900-OFFICE EQUIP PURCH - Tramway
Responsibility of POMA/Leitner
Total 01-60470-2900-OFFICE EQUIP PURCH - Tramway
(-) 01-60470-3400-OFFICE EQUIP PURCHASE - Sportspark
Reserve to @ $1,000
Total 01-60470-3400-OFFICE EQUIP PURCHASE - Sportspark
(-) 01-60510-2100-EQUIPMENT PURCHASE - Public Safety
Drug Test Kits
Misc. Other - Police Equip.
Police Equip. - Batons, Leg Irons, Safety Strobes
Radar Units
Traffice Safety Equipment
Replacement Radios 16@$500/each

Page 50

Amount
$1,000
$1,000
$1,000
$1,000
$2,000
$2,000
$2,000
$2,000
$2,000
$10,000
$10,000
$2,000
$2,000
$3,000
$3,000
$1,000
$1,000
$1,000
$1,000
$0
$0
$1,000
$1,000
$1,200
$2,400
$3,000
$2,400
$1,000
$8,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Total 01-60510-2100-EQUIPMENT PURCHASE - Public Safety
(-) 01-60510-2210-EQUIPMENT PURCHASE - Grounds
Misc. Ground Equipment
Total 01-60510-2210-EQUIPMENT PURCHASE - Grounds
(-) 01-60510-2220-EQUIPMENT PURCHASE - Maintenance
Reserve to remain @ $4,000
Total 01-60510-2220-EQUIPMENT PURCHASE - Maintenance
(-) 01-60510-2230-EQUIPMENT PURCHASE - Warehouse
Reserve to remain @ $6,000
Total 01-60510-2230-EQUIPMENT PURCHASE - Warehouse
(-) 01-60510-2240-EQUIPMENT PURCHASE- Bus Operations
Reserve to @ $6,000
Total 01-60510-2240-EQUIPMENT PURCHASE- Bus Operations
(-) 01-60510-2250-EQUIPMENT PURCHASE - Motor Pool
Reserve to @ $6,000
Total 01-60510-2250-EQUIPMENT PURCHASE - Motor Pool
(-) 01-60510-2900-EQUIPMENT PURCHASE - Tramway
Reserve to remain @ $6,000
Total 01-60510-2900-EQUIPMENT PURCHASE - Tramway
(-) 01-60510-3400-EQUIPMENT PURCHASE - Sportspark
Misc. Equip. - Sportpark
Pool Equipment
Total 01-60510-3400-EQUIPMENT PURCHASE - Sportspark
(-) 01-60660-1500-COMPUTER PURCHASE SOFTWARE
Misc. Upgrades
Total 01-60660-1500-COMPUTER PURCHASE SOFTWARE
(-) 01-60780-1500-COMPUTER PURCHASES
Reserve to remain @ $6,000
Total 01-60780-1500-COMPUTER PURCHASES
(-) 01-60250-1000-EXTERMINATOR - Administrative
Urban Exterminating - $200/month 10 months
Total 01-60250-1000-EXTERMINATOR - Administrative
(-) 01-60250-2100-EXTERMINATOR - Public Safety
Urban Exterminating - $200/month 10 months
Total 01-60250-2100-EXTERMINATOR - Public Safety
(-) 01-60250-2210-EXTERMINATOR - Grounds
Urban Exterminating (Grounds)
Other - Island Wide Exterminating
Total 01-60250-2210-EXTERMINATOR - Grounds
(-) 01-60250-2230-EXTERMINATOR - Warehouse
Urban Exterminating - $200/month 10 months

Page 51

Amount
$18,000
$6,000
$6,000
$4,000
$4,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$6,000
$4,400
$3,600
$8,000
$6,000
$6,000
$6,000
$6,000
$2,000
$2,000
$2,000
$2,000
$1,400
$3,600
$5,000
$2,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Total 01-60250-2230-EXTERMINATOR - Warehouse
(-) 01-60250-2240-EXTERMINATOR - Bus Operations
Urban Exterminating - $200/month 10 months
Total 01-60250-2240-EXTERMINATOR - Bus Operations
(-) 01-60250-2250-EXTERMINATOR - Motor Pool
Urban Exterminating - $200/month 10 months
Total 01-60250-2250-EXTERMINATOR - Motor Pool
(-) 01-60250-2900-EXTERMINATOR - Tramway
Responsibility of Lietner/POMA
Total 01-60250-2900-EXTERMINATOR - Tramway
(-) 01-60250-3400-EXTERMINATOR - Sportspark
Urban Exterminating - $200/month 10 months
Total 01-60250-3400-EXTERMINATOR - Sportspark
(-) 01-60290-1000-UNIFORMS - Administrative
Caps (120@$10)
T Shirts (180@$10)
Total 01-60290-1000-UNIFORMS - Administrative
(-) 01-60290-2100-UNIFORMS - Public Safety
Replacement Boots (30@$70/each)
New Coats (20 @$300)
New Employees (6 @ $1,500)
Replacement Sets (6@$1,500)
Total 01-60290-2100-UNIFORMS - Public Safety
(-) 01-60290-2200-UNIFORMS - Island Operations
Repalcement Sets 1@$750
Shirts & Coveralls (Island Opers.)
Total 01-60290-2200-UNIFORMS - Island Operations
(-) 01-60290-2210-UNIFORMS - Grounds
Coveralls (Grounds) 10@$40
New Coats - 8@$225
New Shirt Sets - 8@$225
Total 01-60290-2210-UNIFORMS - Grounds
(-) 01-60290-2220-UNIFORMS - Maintenance
Coveralls - 10@40
New Jackets - 4@$200
New Jackets - 4@$200
Total 01-60290-2220-UNIFORMS - Maintenance
(-) 01-60290-2230-UNIFORMS - Warehouse
Coverall - 5@$40
New Jackets 3$200
New Shirt Sets 1$200

Page 52

Amount
$2,000
$2,000
$2,000
$2,000
$2,000
$0
$0
$2,000
$2,000
$1,200
$1,800
$3,000
$2,000
$6,000
$9,000
$9,000
$26,000
$750
$1,250
$2,000
$400
$1,800
$1,800
$4,000
$400
$800
$800
$2,000
$200
$600
$200

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Total 01-60290-2230-UNIFORMS - Warehouse
(-) 01-60290-2240-UNIFORMS - Bus Operations
New Jackets - 12@$225
New Shirt Sets - 12@$225
Total 01-60290-2240-UNIFORMS - Bus Operations
(-) 01-60290-2250-UNIFORMS - Motor Pool
New Jackets - 4@$225
New Shirt Sets - 4@$225
Total 01-60290-2250-UNIFORMS - Motor Pool
(-) 01-60290-2900-UNIFORMS - Tramway
Responsibility of Operator
Total 01-60290-2900-UNIFORMS - Tramway
(-) 01-60290-3400-UNIFORMS - Sportspark
New Jackets - 4@$225
New Shirt Sets - 4@$225
Total 01-60290-3400-UNIFORMS - Sportspark
(-) 01-60291-2100-UNIFORMS CLEANING - Public Safety
37 Officers @$25/month
Total 01-60291-2100-UNIFORMS CLEANING - Public Safety
(-) 01-60291-2200-UNIFORMS CLEANING - Island Operations
Employee transferred
Total 01-60291-2200-UNIFORMS CLEANING - Island Operations
(-) 01-60291-2210-UNIFORMS CLEANING - Grounds
10 Employees @$25/mth
Total 01-60291-2210-UNIFORMS CLEANING - Grounds
(-) 01-60291-2220-UNIFORMS CLEANING - Maintenance
5 Employees @$25/mth
Total 01-60291-2220-UNIFORMS CLEANING - Maintenance
(-) 01-60291-2230-UNIFORMS CLEANING - Warehouse
3 Employees @$25/mth
Total 01-60291-2230-UNIFORMS CLEANING - Warehouse
(-) 01-60291-2240-UNIFORMS CLEANING - Bus Operations
10 employees @$25/month
Total 01-60291-2240-UNIFORMS CLEANING - Bus Operations
(-) 01-60291-2250-UNIFORMS CLEANING - Motor Pool
4 Employees@$25/mth
Total 01-60291-2250-UNIFORMS CLEANING - Motor Pool
(-) 01-60291-2900-UNIFORMS CLEANING - Tramway
Responsibility of Operator
Total 01-60291-2900-UNIFORMS CLEANING - Tramway
(-) 01-60320-1000-LIGHT, POWER, HEAT - Admin

Page 53

Amount
$1,000
$2,500
$2,500
$5,000
$1,000
$1,000
$2,000
$0
$0
$1,000
$1,000
$2,000
$12,000
$12,000
$0
$0
$3,000
$3,000
$1,000
$1,000
$1,000
$1,000
$3,000
$3,000
$1,000
$1,000
$0
$0

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Averaging $3,500/mth
Total 01-60320-1000-LIGHT, POWER, HEAT - Admin
(-) 01-60320-2100-LIGHT, POWER, HEAT - Public Safety
Averaging $5,000/mth
Total 01-60320-2100-LIGHT, POWER, HEAT - Public Safety
(-) 01-60320-2240-LIGHT, POWER, HEAT - Bus Operations
Averaging $2,000/mth
Total 01-60320-2240-LIGHT, POWER, HEAT - Bus Operations
(-) 01-60320-2800-LIGHT, POWER, HEAT - AVAC
Averaging $1,000/mth
Total 01-60320-2800-LIGHT, POWER, HEAT - AVAC
(-) 01-60320-2900-LIGHT, POWER, HEAT - Tramway
Estimated @ $10,000/month
Total 01-60320-2900-LIGHT, POWER, HEAT - Tramway
(-) 01-60320-3000-LIGHT, POWER, HEAT - RI Locations Points
Averaging $15,000/mth
Total 01-60320-3000-LIGHT, POWER, HEAT - RI Locations Points
(-) 01-60320-3400-LIGHT, POWER, HEAT - Sportspark
Averaging $7,5000/mth
Total 01-60320-3400-LIGHT, POWER, HEAT - Sportspark
(-) 01-60320-4000-LIGHT, POWER, HEAT - PM Commercial
Averaging $2,000/mth
Total 01-60320-4000-LIGHT, POWER, HEAT - PM Commercial
(-) 01-60320-6000-LIGHT, POWER, HEAT - Motorgate
Averaging $5,000/mth
Total 01-60320-6000-LIGHT, POWER, HEAT - Motorgate
(-) 01-60322-2200-WATER & SEWER - Island Operations
Riverwalk Commons - UtiliVisor Submetering
DEP - est. @ $2,000 yr.
Total 01-60322-2200-WATER & SEWER - Island Operations
(-) 01-60322-2900-WATER & SEWER - Tramway
Averaging $250/month
Total 01-60322-2900-WATER & SEWER - Tramway
(-) 01-60322-3400-WATER & SEWER - Sportspark
Averaging $250/month
Total 01-60322-3400-WATER & SEWER - Sportspark
(-) 01-60420-1000-OFFICE SUPPLIES - Administrative
Averaging $800/month
Total 01-60420-1000-OFFICE SUPPLIES - Administrative
(-) 01-60420-1500-OFFICE SUPPLIES - Information Technology
Averaging $250/month

Page 54

Amount
$42,000
$42,000
$60,000
$60,000
$24,000
$24,000
$12,000
$12,000
$150,000
$150,000
$180,000
$180,000
$90,000
$90,000
$24,000
$24,000
$60,000
$60,000
$4,000
$2,000
$6,000
$3,000
$3,000
$3,000
$3,000
$10,000
$10,000
$3,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Total 01-60420-1500-OFFICE SUPPLIES - Information Technology
(-) 01-60420-1600-OFFICE SUPPLIES - Legal
Averaging $50/month
Total 01-60420-1600-OFFICE SUPPLIES - Legal
(-) 01-60420-1800-OFFICE SUPPLIES- Community Relations
Averaging $25/month
Total 01-60420-1800-OFFICE SUPPLIES- Community Relations
(-) 01-60420-2050-OFFICE SUPPLIES - Engineering
Averaging $25/month
Total 01-60420-2050-OFFICE SUPPLIES - Engineering
(-) 01-60420-2100-OFFICE SUPPLIES - Public Safety
Averaging $350/month
Total 01-60420-2100-OFFICE SUPPLIES - Public Safety
(-) 01-60420-2240-OFFICE SUPPLIES - Bus Operations
Averaging $25/month
Total 01-60420-2240-OFFICE SUPPLIES - Bus Operations
(-) 01-60420-2900-OFFICE SUPPLIES - Tramway
Responsibility of Operator
Total 01-60420-2900-OFFICE SUPPLIES - Tramway
(-) 01-60420-3400-OFFICE SUPPLIES - Sportspark
Averaging $40/month
Total 01-60420-3400-OFFICE SUPPLIES - Sportspark
(-) 01-60430-1000-PARTS & SUPPLIES - Administrative
Misc. Supplies 591 Main
Parts & Supplies - Parking Collection
Total 01-60430-1000-PARTS & SUPPLIES - Administrative
(-) 01-60430-1500-PARTS & SUPPLIES - Information Technology
Misc Computer Parts
Printer Toner
Total 01-60430-1500-PARTS & SUPPLIES - Information Technology
(-) 01-60430-1514-PARTS & SUPPLIES - Access Control
Idesco Access Cards - 500@$4.50/each
Replacement Lock Sets - 10@ $225
Replacement of Bill Cannisters - 5 @ $600/each
Total 01-60430-1514-PARTS & SUPPLIES - Access Control
(-) 01-60430-1800-PARTS & SUPPLIES - Community Relations
Banners & Promotional Supplies
Total 01-60430-1800-PARTS & SUPPLIES - Community Relations
(-) 01-60430-2050-PARTS & SUPPLY - Engineering
Paper 7 Toner For CAD Printer
Total 01-60430-2050-PARTS & SUPPLY - Engineering

Page 55

Amount
$3,000
$600
$600
$300
$300
$300
$300
$4,000
$4,000
$300
$300
$0
$0
$500
$500
$1,400
$600
$2,000
$2,800
$1,200
$4,000
$2,250
$2,250
$3,000
$7,500
$5,000
$5,000
$1,500
$1,500

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
(-) 01-60430-2100-PARTS & SUPPLIES - Public Safety
Car Washes
Misc Safety Products
Total 01-60430-2100-PARTS & SUPPLIES - Public Safety
(-) 01-60430-2200-PARTS & SUPPLIES - Island Operations
Misc. Electrical Supplies
Misc. Supplies - Island OperationsTraffic Signs & Supplies
Total 01-60430-2200-PARTS & SUPPLIES - Island Operations
(-) 01-60430-2210-PARTS & SUPPLIES - Grounds
Misc. Supplies - Grounds
Playground Supplies - Grounds
Roadway Salt
Tools - Grounds
Total 01-60430-2210-PARTS & SUPPLIES - Grounds
(-) 01-60430-2220-PARTS & SUPPLIES - Maintenance
Electrical supplies - Maint
Misc. Supplies - Maint
Total 01-60430-2220-PARTS & SUPPLIES - Maintenance
(-) 01-60430-2230-PARTS & SUPPLIES - Warehouse
Cleaning Supplies - Warehouse
Lumber - Warehouse
Misc. Supplies
Total 01-60430-2230-PARTS & SUPPLIES - Warehouse
(-) 01-60430-2240-PARTS & SUPPLIES - Bus Operations
Fare Box Parts
Total 01-60430-2240-PARTS & SUPPLIES - Bus Operations
(-) 01-60430-2250-PARTS & SUPPLY - Motor Pool
Misc. Supplies - Motorpool
Total 01-60430-2250-PARTS & SUPPLY - Motor Pool
(-) 01-60430-2800-PARTS & SUPPLIES - AVAC
Compressor Parts
ENVAC Parts
Other Misc. Parts - AVAC
Total 01-60430-2800-PARTS & SUPPLIES - AVAC
(-) 01-60430-2900-PARTS & SUPPLIES - Tramway
Responsibility of Operator
Total 01-60430-2900-PARTS & SUPPLIES - Tramway
(-) 01-60430-3000-PARTS & SUPPLIES - RI Locations Points
Misc. Supplies - RI Location Points
Total 01-60430-3000-PARTS & SUPPLIES - RI Locations Points
(-) 01-60430-3400-PARTS & SUPPLIES - Sportspark

Page 56

Amount
$1,200
$1,800
$3,000
$2,000
$4,000
$6,000
$6,000
$12,000
$6,000
$12,000
$36,000
$12,000
$24,000
$36,000
$16,000
$6,000
$18,000
$40,000
$6,000
$6,000
$3,000
$3,000
$12,000
$20,000
$6,000
$38,000
$0
$0
$6,000
$6,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Cleaning Supplies - Sportpark
Pool Chemicals - Sportspark
Sports Equipment - Sportpark
Total 01-60430-3400-PARTS & SUPPLIES - Sportspark
(-) 01-60430-6000-PARTS & SUPPLY - Motorgate
Emergency Supplies (not paid thru Central Parking)- Motorgate
Total 01-60430-6000-PARTS & SUPPLY - Motorgate
(-) 01-60750-0000-SERVICE MAINTENANCE AGREE - General
Active Fire Extinguishers - Maint Agreement
Cummins - Maint Agree. Coin Counting Machine
BES Blackberry Service Maintenance
Mcaffee Service Maintenance
VM Ware - Service Maintenance
Doculex - Document Management Annual Service
Total 01-60750-0000-SERVICE MAINTENANCE AGREE - General
(-) 01-60750-1300-SERVICE MAINTENANCE AGREE - Finance
Balackbaud (Web Purchasing) Maintenance
Blackbaud (Financial Edge) Software Maintenance
Total 01-60750-1300-SERVICE MAINTENANCE AGREE - Finance
(-) 01-60750-1500-SERVICE MAINTENANCE AGREEMENT- COPIER
4 Savin Color Copiers - Est Annual Uasage 120,000 copies @ $.07/each
8 Savin B&W Copiers - Est. Annual usaged 360,000 copies @ $.01/eack
Total 01-60750-1500-SERVICE MAINTENANCE AGREEMENT- COPIER
(-) 01-60750-1514-SERVICE MAINTENANCE AGREE - Access Control
ADT Security Monitoring Services
Motorola Emergency Repeater Service - Radios
Other Misc. Securitry Services
Total 01-60750-1514-SERVICE MAINTENANCE AGREE - Access Control
(-) 01-60750-2050-SERVICE MAINTENANCE AGREE - Engineering
HP Plotter Service Maintenance
Total 01-60750-2050-SERVICE MAINTENANCE AGREE - Engineering
(-) 01-60750-2100-SERVICE MAINTENANCE AGREE - Public Safety
Active Fire extinguisher Maint Agreement
Northeastern - Annual Radio Service Agreement
V.I.P. Towing - On Call Towing Services
Total 01-60750-2100-SERVICE MAINTENANCE AGREE - Public Safety
(-) 01-60750-2240-SERVICE MAINTENANCE AGREE - Bus Operations
Gasboy Fuel tank Maint Services
Nextbus Annual Service Fee
Dolphin Vehicle Repair - Service Maintenance
Total 01-60750-2240-SERVICE MAINTENANCE AGREE - Bus Operations
(-) 01-60750-2800-SERVICE MAINTENANCE AGREE - AVAC

Page 57

Amount
$4,000
$4,000
$4,000
$12,000
$6,000
$6,000
$600
$900
$1,500
$4,000
$4,000
$4,000
$15,000
$1,700
$10,300
$12,000
$8,400
$3,600
$12,000
$3,000
$3,000
$1,000
$7,000
$6,000
$6,000
$1,200
$4,800
$1,000
$7,000
$3,000
$5,000
$2,000
$10,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Allstate Sprinkler - Fire Sprinkler Maintenance
Total 01-60750-2800-SERVICE MAINTENANCE AGREE - AVAC
(-) 01-60750-2900-SERVICE MAINTENANCE AGREE - Tramway
Responsibility of Operator
Total 01-60750-2900-SERVICE MAINTENANCE AGREE - Tramway
(-) 01-60750-3000-SERVICE MAINTENANCE AGREE - RI Locations
Active Fire extinguisher Maint Agreement
Total 01-60750-3000-SERVICE MAINTENANCE AGREE - RI Locations
(-) 01-60750-3400-SERVICE MAINTENANCE AGREE - Sportspark
EZ Facility - Mantenance Service
Todd Harris - Monthly Pool Service
Simplex Grinnell - Annual HVAC Service
Total 01-60750-3400-SERVICE MAINTENANCE AGREE - Sportspark
(-) 01-60520-1000-EMPL TRV & MEAL - Administrative
Responsibility of Operator
Total 01-60520-1000-EMPL TRV & MEAL - Administrative
(-) 01-60520-1100-EMPL TRV & MEAL- Executive
President - T&E
Total 01-60520-1100-EMPL TRV & MEAL- Executive
(-) 01-60520-1300-EMPL TRV & MEAL- Finance
Responsibility of Operator
Total 01-60520-1300-EMPL TRV & MEAL- Finance
(-) 01-60520-1400-EMPL TRV & MEAL- Human Resources
Responsibility of Operator
Total 01-60520-1400-EMPL TRV & MEAL- Human Resources
(-) 01-60520-1500-EMPL TRV & MEAL- Information Technology
2 Positions @ $300/per
IT Director - 2 IT Conferences Up State
Total 01-60520-1500-EMPL TRV & MEAL- Information Technology
(-) 01-60520-1600-EMPL TRV & MEAL- Legal
Asst. General Counsel - T&E
General Counsel - T&E
Total 01-60520-1600-EMPL TRV & MEAL- Legal
(-) 01-60520-1800-EMPL TRV & MEAL- Community Relations
Responsibility of Operator
Total 01-60520-1800-EMPL TRV & MEAL- Community Relations
(-) 01-60520-2000-EMPL TRV & MEAL - Operations
Responsibility of Operator
Total 01-60520-2000-EMPL TRV & MEAL - Operations
(-) 01-60520-2050-EMPL TRV & MEAL- Engineering
Responsibility of Operator

Page 58

Amount
$1,000
$1,000
$0
$0
$2,000
$2,000
$2,500
$4,500
$1,000
$8,000
$0
$0
$600
$600
$0
$0
$0
$0
$600
$400
$1,000
$400
$600
$1,000
$0
$0
$0
$0
$0

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Total 01-60520-2050-EMPL TRV & MEAL- Engineering
(-) 01-60520-2100-EMPL TRV & MEAL- Public Safety
Officer Travel - To/From Court Appearances
Total 01-60520-2100-EMPL TRV & MEAL- Public Safety
(-) 01-60520-2240-EMPL TRV & MEAL- Bus Operations
Responsibility of Operator
Total 01-60520-2240-EMPL TRV & MEAL- Bus Operations
(-) 01-60520-3400-EMPL TRV & MEAL - Sportspark
Responsibility of Operator
Total 01-60520-3400-EMPL TRV & MEAL - Sportspark
(-) 01-60530-1050-EMPLOYEE TRAINING - Administrative Services
3 Positions @ $400/per - Admin. Services
Total 01-60530-1050-EMPLOYEE TRAINING - Administrative Services
(-) 01-60530-1000-EMPLOYEE TRAINING - Administrative
3 Positions @ $400/per
Total 01-60530-1000-EMPLOYEE TRAINING - Administrative
(-) 01-60530-1100-EMPLOYEE TRAINING - Executive
President - Training
Total 01-60530-1100-EMPLOYEE TRAINING - Executive
(-) 01-60530-1300-EMPLOYEE TRAINING - Finance
6 Positions @$200/per
Controller - Training
CFO - Training
Compliance Officer - Training
Total 01-60530-1300-EMPLOYEE TRAINING - Finance
(-) 01-60530-1400-EMPLOYEE TRAINING - Human Resources
HR Director - Training
HR Assistant - Training
Total 01-60530-1400-EMPLOYEE TRAINING - Human Resources
(-) 01-60530-1500-EMPLOYEE TRAINING - Information Technology
2 IT Specialists
IT Director - Training
The Training Consortium - Annual Retainer
Total 01-60530-1500-EMPLOYEE TRAINING - Information Technology
(-) 01-60530-1600-EMPLOYEE TRAINING - Legal
Associate Counsel - Training
General Counsel - Training
Lada Mirzalieva - Training
Total 01-60530-1600-EMPLOYEE TRAINING - Legal
(-) 01-60530-1800-EMPLOYEE TRAINING - Community Relations
Community Relations Director - Training

Page 59

Amount
$0
$600
$600
$0
$0
$0
$0
$1,000
$1,000
$1,000
$1,000
$500
$500
$1,200
$600
$600
$500
$2,900
$600
$400
$1,000
$1,600
$600
$2,800
$5,000
$1,500
$1,500
$500
$3,500
$500

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Total 01-60530-1800-EMPLOYEE TRAINING - Community Relations
(-) 01-60530-2050-EMPLOYEE TRAINING - Engineering
3 Egineering Associates
Tuition Reimbursement
Director of Engineering - Training
Total 01-60530-2050-EMPLOYEE TRAINING - Engineering
(-) 01-60530-2100-EMPLOYEE TRAINING - Public Safety
Training - P.S. Other
Training New Officers
Tuition Reimb. - 4 emplyees @$1,400/per
Total 01-60530-2100-EMPLOYEE TRAINING - Public Safety
(-) 01-60530-2200-EMPLOYEE TRAINING - Island Operations
Supervisors Training
Total 01-60530-2200-EMPLOYEE TRAINING - Island Operations
(-) 01-60530-2210-EMPLOYEE TRAINING - Grounds
Horticutural Training - Grounds
Supervisors Training
Training Allowance 32BJ
Total 01-60530-2210-EMPLOYEE TRAINING - Grounds
(-) 01-60530-2220-EMPLOYEE TRAINING - Maintenance
Supervisors Training
Training - Mainenance - Other
Total 01-60530-2220-EMPLOYEE TRAINING - Maintenance
(-) 01-60530-2230-EMPLOYEE TRAINING - Warehouse
Supervisors Training - Warehouse
Training - Warehouse - Other
Total 01-60530-2230-EMPLOYEE TRAINING - Warehouse
(-) 01-60530-2240-EMPLOYEE TRAINING - Bus Operations
Bus Drivers Certification Training
Dolphin Software Training
Supervisors Training - Bus
Total 01-60530-2240-EMPLOYEE TRAINING - Bus Operations
(-) 01-60530-2900-EMPLOYEE TRAINING - Tramway
Responsibility of Operator
Total 01-60530-2900-EMPLOYEE TRAINING - Tramway
(-) 01-60530-3400-EMPLOYEE TRAINING - Sportspark
Supervisors Training - Sportspark
COP Training 4@$1,500/each
Total 01-60530-3400-EMPLOYEE TRAINING - Sportspark
(-) 01-60550-1000-POSTAGE - Administrative
Pitey Bowes - Average monthly postage usage - $250/mth

Page 60

Amount
$500
$2,000
$1,400
$600
$4,000
$4,500
$4,500
$6,000
$15,000
$500
$500
$8,000
$800
$3,200
$12,000
$500
$500
$1,000
$500
$500
$1,000
$6,000
$1,800
$700
$8,500
$0
$0
$1,000
$6,000
$7,000
$3,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
Pitney Bowes - monthly rental $320/mth
Miscellaneous Shipping
Total 01-60550-1000-POSTAGE - Administrative
(-) 01-60552-1000-UPS SHIPPING - Administrative
Misc. shipping
Total 01-60552-1000-UPS SHIPPING - Administrative
(-) 01-60552-1500-UPS SHIPPING - Information Technology
Responsibility of Operator
Total 01-60552-1500-UPS SHIPPING - Information Technology
(-) 01-60560-1000-SUBSCRIPTIONS / MEMBERSHIP- Administrative
Responsibility of Operator
Total 01-60560-1000-SUBSCRIPTIONS / MEMBERSHIP- Administrative
(-) 01-60560-1300-SUBSCRIPTIONS/ MEMBERSHIP - Finance
Responsibility of Operator
Total 01-60560-1300-SUBSCRIPTIONS/ MEMBERSHIP - Finance
(-) 01-60560-1600-SUBSCRIPTIONS/ MEMBERSHIP - Legal
West Law Monthly Subscription - $650/mth
Total 01-60560-1600-SUBSCRIPTIONS/ MEMBERSHIP - Legal
(-) 01-60560-2050-SUBSCRIPTIONS/ MEMBERSHIP - Engineering
Responsibility of Operator
Total 01-60560-2050-SUBSCRIPTIONS/ MEMBERSHIP - Engineering
(-) 01-60560-2100-SUBSCRIPTIONS/ MEMBERSHIP - Public Safety
Responsibility of Operator
Total 01-60560-2100-SUBSCRIPTIONS/ MEMBERSHIP - Public Safety
(-) 01-60570-0000-BANK CHARGES - General
Amalgamated - Est.@ $100/mth
Chase - Average Monthly $1,400
Total 01-60570-0000-BANK CHARGES - General
(-) 01-60580-1000-MISCELLANEOUS - Administrative
Employee Medical Testing
Other various misc.
Total 01-60580-1000-MISCELLANEOUS - Administrative
(-) 01-60580-2100-MISCELLANEOUS - Public Safety
Remain @ $4,000 for misc.
Total 01-60580-2100-MISCELLANEOUS - Public Safety
(-) 01-60580-2210-MISCELLANEOUS - Grounds
Emergency Snow Removal
Total 01-60580-2210-MISCELLANEOUS - Grounds
(-) 01-60790-1400-MTA METRO CARD PURCHASE- HR
Avg. 40 Employees/month @$35 each
Total 01-60790-1400-MTA METRO CARD PURCHASE- HR

Page 61

Amount
$5,000
$2,000
$10,000
$1,000
$1,000
$0
$0
$0
$0
$0
$0
$8,400
$8,400
$0
$0
$0
$0
$1,200
$16,800
$18,000
$8,000
$8,000
$16,000
$4,000
$4,000
$2,000
$2,000
$16,000
$16,000

Roosevelt Island Operating Corp.


Approved Budget 2014
Other Than Personal Services (OTPS) - Detail
Account
(-) 02-61750-1000-PUBLIC PURPOSE GRANTS
Public Purpose Grants - $100,000
Youth Center - $175,000
Total 02-61750-1000-PUBLIC PURPOSE GRANTS
(-) 01-60681-1800-ISLAND EVENTS - Community Relations
Fall Arts Festival
Halloween Parade
Roosevelt Island Day
Summer Movies
RI Day
Black History Month
Hispanic History Month
Womens History Month
Easter Egg Hunt
Other
Total 01-60681-1800-ISLAND EVENTS - Community Relations
(-) 01-60681-2100-ISLAND EVENTS - Public Safety
Miscellaneous Events
Total 01-60681-2100-ISLAND EVENTS - Public Safety
(-) 01-61081-5100 - COMMERCIAL SPACE RENT - Engineering
Rent for Engineering Office $1k/month
Total 01-61081-5100-COMMERCIAL SPACE RENT - Engineering
Total Other Than Personal Services (OTPS)

Amount
$100,000
$175,000
$275,000
$24,000
$3,000
$5,000
$12,000
$5,000
$2,750
$2,750
$2,750
$2,750
$20,000
$80,000
$5,000
$5,000
$12,000
$12,000
$8,856,000

Page 62

The Roosevelt Island Operating Corporation (RIOC)


Significant Budget Dates
Approved Budget FY 2014

1. ) Meeting with Departments Heads

August/September 2012

2.) Presentation of Department Needs to Executive Management

September 2012

3.) Review of Preliminary Budget with Executive Management

September 2012

4.) Review of Proposed Budget with Audit Committee

September 2012

5.) Presentation of Proposed Budget to Board of Directors

September 2012

6.) Review of Budget Queries

October/November 2012

7.) Presentation of Proposed Budget to Board for Ratification

December 2012

8.) Filing of Approved Budget to Public Authority Reporting System (PARIS)

December 2012

Page 63

RIOC Audited Financials


2012-2013, see note 9.d, pg 26-27

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Financial Statements and Managements
Discussion and Analysis
March 31, 2013 and 2012
(With Independent Auditors Report Thereon)

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)

Table of Contents
Page
Independent Auditors Report

1-3

Managements Discussion and Analysis

4 - 11

Basic Financial Statements:


Statements of Net Position

12

Statements of Revenues, Expenses and Changes in Net Position

13

Statements of Cash Flows

14

Notes to Financial Statements

15 - 31

Supplemental Information:
Schedule of Operations by Department for the year ended March 31, 2013

32

Schedule of Operations by Department for the year ended March 31, 2012

33

Budget Variance for the year ended March 31, 2013

34

Budget Variance for the year ended March 31, 2012

35

Independent Auditors Report on Internal Control Over


Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards

36-37

Independent Auditors Report on Compliance with Investment Guidelines

38-39

INDEPENDENT AUDITORS REPORT

The Board of Directors


Roosevelt Island Operating Corporation

Report on the Financial Statements


We have audited the accompanying financial statements of Roosevelt Island Operating Corporation
(RIOC), a component unit of the State of New York, as of and for the years ended March 31,
2013 and 2012, and the related notes to the financial statements, which collectively comprise the
RIOCs financial statements as listed in the table of contents.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the preparation
and fair presentation of financial statements that are free from material misstatement, whether due
to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We
conducted our audits in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that we
plan and perform the audits to obtain reasonable assurance about whether the financial statements
are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditors judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the RIOCs preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of RIOCs internal control. Accordingly, we express no

such opinion. An audit also includes evaluating the appropriateness of accounting policies used and
the reasonableness of significant accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the
net position of Roosevelt Island Operating Corporation as of March 31, 2013 and 2012, and the
respective changes in net position and cash flows for the years then ended, in accordance with
accounting principles generally accepted in the United States of America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
managements discussion and analysis on pages 4 through 11 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is
required by the Governmental Accounting Standards Board, who considers it to be an essential part
of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United
States of America, which consisted of inquiries of management about the methods of preparing the
information and comparing the information for consistency with managements responses to our
inquiries, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the
information because the limited procedures do not provide us with sufficient evidence to express an
opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that
collectively comprise RIOCs basic financial statements. The accompanying schedules listed in the
Table of Contents under the heading of Supplemental Information, which are the responsibility of
management, are presented for the purpose of additional analysis and are not a required part of the
basic financial statements. Such information, except for the portion marked unaudited, was
derived from and relates directly to the underlying accounting and other records used to prepare the
basic financial statements. The information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing
and reconciling such information directly to the underlying accounting and other records used to
prepare the basic financial statements or to the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States
of America. In our opinion, the information is fairly stated, in all material respects, in relation to
the basic financial statements as a whole. The information marked unaudited has not been
subjected to the auditing procedures applied in the audit of the financial statements and,
accordingly, we do not express an opinion or provide any assurance on it.
2

Other Reporting Required by Government Auditing Standards


In accordance with Government Auditing Standards, we have also issued our report dated May 17,
2013, on our consideration of RIOCs internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering RIOCs internal
control over financial reporting and compliance.

Elmhurst, New York


May 17, 2013

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Managements Discussion and Analysis
March 31, 2013 and 2012
The following managements discussion and analysis (MD&A) provides a comprehensive overview
of the financial position of Roosevelt Island Operating Corporation at March 31, 2013 and 2012,
and the results of its operations for the years then ended. Management has prepared the financial
statements and related footnote disclosures along with this MD&A in accordance with generally
accepted accounting principles as defined by the Governmental Accounting Standards Board for
state and local governments. This MD&A should be read in conjunction with the audited financial
statements and accompanying notes to financial statements, which directly follow the MD&A.
OVERVIEW OF THE FINANCIAL STATEMENTS
This annual financial report consists of three parts: managements discussion and analysis (this
section), basic financial statements, and supplemental information. RIOC was created by the New
York State Legislature in 1984 as a public benefit corporation charged with maintaining, operating,
and developing Roosevelt Island. RIOC follows enterprise fund reporting; accordingly, the financial
statements are presented using the economic resources measurement focus and the accrual basis of
accounting. Enterprise fund statements offer short and long-term financial information about the
activities of the Corporation. These statements are presented in a manner similar to a private
business. While detailed sub-information is not presented, separate accounts are maintained for each
fund to control and manage transactions for specific purposes and to demonstrate that RIOC is
properly performing its contractual obligations.
FINANCIAL ANALYSIS OF THE CORPORATION
NET POSITION
The following is a summary of the RIOCs statement of net position at March 31, 2013 and 2012
and the percentage changes between March 31, 2013 and March 31, 2012:

2013
$

2012

% Change

Current and other assets


Capital assets, net
Total assets

45,314,018
68,724,541
$ 114,038,559

46,439,059
67,090,562
$ 113,529,621

-2%
2%
0%

Liabilities
Net position:
Investment in capital assets
Restricted for capital projects
Unrestricted
Total net position

33,762,970

33,458,916

1%

68,724,541
10,450,427
1,100,621
80,275,589

67,090,562
11,113,352
1,866,791
80,070,705

2%
-6%
-41%
0%

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Managements Discussion and Analysis
March 31, 2013 and 2012
(continued)
On RIOCs statement of net position at March 31, 2013, total assets of $114,038,559 exceeded total
liabilities of $33,762,970 by $80,275,589 (total net position). Total assets are comprised of capital
assets (e.g., buildings, machinery and equipment) totaling $68,724,541, cash and cash equivalents
totaling $40,740,110 and other assets of $4,573,908. Liabilities comprised of accounts payable of
$809,459, unearned revenues of $29,910,944 (prepaid rents), other post-employment benefits of
$2,382,670, and other liabilities totaling $659,897. Unearned revenues represent the prepaid ground
rent revenue received for the Southtown and Octagon development projects that will be recognized
over their respective lease terms. Of total net position, $10,450,427 is available to be used to meet
ongoing capital obligations. Additionally, $1,100,621 is available for ongoing operational expenses.
Short-term investments decreased by $1,744,460 or 4%. This was mainly due to purchases of
capital assets (infrastructure) totaling $5,058,492.
OPERATING ACTIVITIES
RIOCs statements of revenues, expenses and changes in fund net position are used to report
changes in the net position, including depreciation expense. Revenues reported here are based on a
standard of recognition whereby revenues are recorded when earned. The statements of revenues,
expenses and changes in fund net position detail program revenues by major source and expenses
by natural classification and indicate the change in net position.
RIOCs total operating revenues for the year ended March 31, 2013 amounted to $21,869,710,
which includes $21,572,641 in revenues identified as program revenues and $297,069 of nonprogram specific revenues, primarily interest income earned on investments and settlement of
insurance claimed. During the fiscal year ending March 31, 2013, operating revenues increased by
$1,022,807 or 5% over the last fiscal year. The increase in operating revenues is mainly attributed to
the Tramway revenue, which increased by $342,952 or 8%. The increase in the Tramway revenue is
due to increased rider-ships of the modernized tram system which provides higher capacity, faster,
safer and smoother rides, and no downtime. In addition, residential fees increased by $233,121 or
27% primarily due to an increase in condo sales and transactions. Also, commercial rent increased
by $124,897 or 10% stemming from the assignment of the commercial spaces to the master lease,
which provided a steady stream of revenue. However, interest income declined by $78,230 or 30%
due to the significant drop in the interest rate.
RIOCs total operating expenses were $21,664,826 in 2013 and $21,567,047 in 2012, including
depreciation of $3,424,513 and $3,436,043, respectively. For the fiscal year ending March 31, 2013,
total operating expenses before depreciation increased by $109,309 or 1% over the last fiscal year,
which is due primarily to accruals for compensated absences.

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Managements Discussion and Analysis
March 31, 2013 and 2012
(continued)

The following summarizes RIOCs change in net position for the fiscal years ended March 31, 2013
and 2012:
2013
Operating revenues:
Residential fees
Ground rent
Commercial rent
Tramway revenue
Public safety reimbursement
Transport/parking revenue
Interest income
Other revenues
Total operating revenues

1,111,441
9,356,679
1,421,038
4,640,843
1,673,097
2,521,892
185,403
959,317
21,869,710

2012

% Change

878,320
9,174,109
1,296,141
4,297,891
1,613,297
2,485,613
263,633
837,899
20,846,903

27%
2%
10%
8%
4%
1%
-30%
14%
5%

Operating expenses:
Personal services
Insurance
Professional services and legal services
Management fees
Telecommunications
Repairs and maintenance
Vehicles maintenance
Equipment purchases/lease
Supplies/services
Other expenses
Total operating expenses excluding depreciation

10,008,395
1,137,448
670,825
4,074,439
115,623
281,689
350,663
73,481
1,051,650
476,100
18,240,313

9,795,206
1,061,546
699,139
4,072,518
115,029
382,153
318,719
112,977
1,039,350
534,367
18,131,004

2%
7%
-4%
0%
1%
-26%
10%
-35%
1%
-11%
1%

Operating income before depreciation


Depreciation expenses
Change in net position
Capital contributions for stabilization of Renwick Ruins
Net position, beginning of year

3,629,397
3,424,513
204,884
80,070,705

2,715,899
3,436,043
(720,144)
29,113
80,761,736

34%
0%
-128%
-100%
-1%

Net position, end of year

80,275,589

$ 80,070,705

0%

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Managements Discussion and Analysis
March 31, 2013 and 2012
(continued)
CAPITAL ASSETS
The following summarizes RIOCs capital assets for the fiscal years ended March 31, 2013 and
2012 and the percentage change between fiscal years:
2013
Seawall
Buildings
Land improvements
Machinery and equipment
Infrastructure
Leasehold Improvements
Net capital assets

2,801,889
12,913,630
6,809,287
2,467,171
43,693,442
39,122
$ 68,724,541

2012

% Change

2,846,890
12,451,326
6,351,161
3,001,922
42,439,263
$ 67,090,562

-2%
4%
7%
-18%
3%
100%
2%

The capital assets of $68,724,541 presented in the financial statements have been depreciated using
the straight-line method, effective from the date of acquisition. The increase of $1,633,979
from the prior year represents additions of new capital assets valued at $5,058,492 less depreciation
expense of $3,424,513. Total depreciation expense for all capital assets amounted to $3,424,513 and
$3,436,043 for the years ended March 31, 2013 and 2012, respectively. A more detailed analysis of
RIOCs capital assets is presented in the notes to financial statements on pages 19-20.
INFRASTRUCTURE ASSETS
The amounts reported in the accompanying statements of assets for the capital assets (net of
depreciation) of RIOC of $68,724,541 and $67,090,562 at March 31, 2013 and 2012, respectively,
do not include an amount for two infrastructure items: the bulk of the seawall, and Main Street (the
road). Pursuant to the provisions of Governmental Accounting Standards Board (GASB) Statement
No. 34, addressing the capitalization of infrastructure assets, infrastructure assets dating from prior
to 1980 are not required to be recognized. Improvements to such infrastructure items, however, are
reported.
ECONOMIC FACTORS AFFECTING RIOCS FUTURE FINANCIAL POSITION
Six (6) of the anticipated nine (9) buildings (Buildings) of the Southtown Development Project
have been completed. The developer, Hudson/Related Joint Venture and RIOC have come to
tentative terms for Buildings 7-9 as of the date of this report. Of the remaining Buildings, the
Building 7 Lease Closing needs to occur before July 31, 2013; the Building 8 Lease Closing shall
occur no later than 30 months after the Building 7 Lease Closing; and the Building 9 Lease Closing
shall occur no later than 30 months after the Building 8 Lease Closing. Should development fail to
occur within the expected timeframe, RIOC is protected by a letter of credit in the amount of

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Managements Discussion and Analysis
March 31, 2013 and 2012
(continued)
$1,420,800. RIOC believes that the development will occur as the economy recovers and the
housing market rebounds.
The Modernized Tram, which was placed in service on November 31, 2010, now better meets the
transportation needs of the residents and visitors: more passengers are shuttled quickly and safely;
there is greater availability - the system allows for one cabin to continue operations while the other
is down for preventive maintenance; and it is more reliable with redundant generators to power the
system. As a result of these increased efficiencies and capabilities, rider-ship on the Tram is
increasing. During the fiscal year ended March 31, 2013, Tramway revenue exceeded the budget
by $493,843 or 12% (see Budget variance report - page 34). The infrastructure improvement was
funded by a $15 million grant from the State of New York and $10 million from RIOC.
The Franklin D. Roosevelt Four Freedoms State Park (Park) located at the southern tip of the
island, was completed on October 17, 2012. The Park cost approximately $43,523,002. The
majority of the funding came from private funds raised by Franklin D. Roosevelt Four Freedom
Park, LLC, which is now a subsidiary of the Four Freedoms Park Conservancy, Inc. The State and
City of New York provided $6,000,000 and $13,588,000, respectively, toward the construction of
the Park; the Federal government provided $501,609. The remaining funds came from private
sources. At the commemoration of the Park, Governor Andrew Cuomo announced that the Park
would be part of the New York State Park System. The New York Times has lauded the Park as the
spiritual heart of New York City, and to date the Park has seen over 40,000 visitors and an
increased visitorship to Roosevelt Island.
The development of Southpoint Park is completed; the park is now open to the public. The
$13,300,000 project was funded by appropriations from the City of New York for $4,500,000, the
State of New York for $4,400,000, and $4,400,000 from RIOC. The park significantly enhances the
availability of vibrant open space to the community, while naturally benefiting in usage from the
scores of visitors that the aforementioned Franklin D. Roosevelt Four Freedoms State Park is
attracting.
The revitalization of Main Street and improvement of the retail businesses are in progress. On
August 1, 2011, RIOC entered into a Master Sublease Agreement with Hudson Related Retail LLC
(HRR) to redevelop, improve, market, lease and professionally operate the Retail Spaces controlled
by RIOC. RIOC receives an annual guaranteed rent of $900,000 - escalating by 2% annually
beginning on the first anniversary of the Commencement Date for the first five years and 2.5%
annually thereafter - as well as participation in the profits of the Master Sub-lessee. According to
its certified financial statements as of December 31, 2012, Hudson Related Retail LLC invested
$636,436 and incurred a loss of $320,279. According to the agreement, RIOC will share future
profits 50/50 once HRR is paid back its investment.
On September 28, 2012, RIOC entered into a lease modification with Northtown Phase II Houses
Inc. (the Housing Company) one of four Mitchell-Lama housing projects built on the Island
to extend the term of its ground lease until December 22, 2068. During the term of the lease, the
8

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Managements Discussion and Analysis
March 31, 2013 and 2012
(continued)
Housing Company will exit Mitchell-Lama and pursue an affordable home ownership plan whereby
at least 65% of the 400 residential units (260 units) will either be restricted price cooperative
apartments or affordable rental units (the Conversion). The lease provides that the Housing
Company has three years from the date of the lease to execute the Conversion. Provided that this
takes place, the base ground rent will increase as follows: (a) the current base rent will increase
from $136,000 to $236,000 per annum increasing by 10% on each 5th anniversary for 30 years;
(b) the Housing Company will pay a transfer fee due in connection with the initial sale of each
apartment equal to five percent (5%) of the units gross sales price but not to exceed $4,500,000
in the aggregate; (c) for any resales following such initial sales the seller will be obligated to pay
RIOC one percent (1%) of the units gross sales price. If the Conversion does not take place and
the building remains as an affordable rental, the base ground rent will increase as of the date of the
lease modification according to the aforementioned increase and escalation schedule.
Roosevelt Island was selected by the City of New York for the future site of the Cornell/Technion
Applied Sciences Graduate School (Cornell). The project, which is projected to be built in three
phases over a twenty year period, will be built primarily on property that is currently controlled by
the City. We expect the project to have an indeterminate level of significant impacts on Island
infrastructure, including but not limited to substantial construction related to the project and an
increase in the daily population by at least 5,000 new residents. RIOC and Cornell are currently in
discussions related to the short-term and long-term impacts the school will have on the Islands
infrastructure, including cost sharing of selected capital projects. In addition to the costs related to
the Cornell Project, RIOC may incur substantial costs (and significant environmental risks) from
New York Citys concurrent closure of a large steam plant located on the island, which formerly
served the Goldwater Hospital Site (as well as Coler Hospital and several RIOC-owned facilities)
and which the City now proposes to abandon in place. RIOC may be able to shift some or all of
these costs to a future developer of the site and has issued a Request For Expressions of Interest
(RFEI) to developers for the steam plant site.
As noted above, RIOC issued a RFEI to attract proposals for the adaptive reuse or redevelopment of
the approximately 56,000-square-foot site of the steam plant and adjacent land located on the
Island. The steam plant is on Tramway Plaza, adjacent to the east side of the Roosevelt Island Tram
Terminal and the north side of the Ed Koch Queensborough Bridge. The purpose of the RFEI is to
learn the types of reuse and redevelopment plans that are both economically feasible and beneficial
to the Roosevelt Island community and to assess the interest of qualified developers. After a review
of the proposals, RIOC may request detailed development proposals from qualified developers in
order to select a developer to enter into a long-term lease with RIOC for the design, development,
and operation of the proposed site.
The closure of the steam plant will also require heating upgrades to Sports Park, which relied on the
plant. The costs to upgrade the Sports Park heating system may be substantial; RIOC has recently
engaged an engineering firm to conduct an analysis of the heating and ventilation systems and other
capital assets, including but not limited to cursory overviews of the facilitys lighting, electrical,
plumbing, and roofing systems. In addition to determining the financial impact related to the closure
9

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Managements Discussion and Analysis
March 31, 2013 and 2012
(continued)
of the steam plant, the study will identify the long-term viability of each noted asset and include a
cost analysis that can be utilized to maintain these assets in a state of good repair.
The expected increase in traffic due to construction of Cornell has also precipitated the
Corporations release of a Request For Proposals (RFP) for the Roosevelt Island Bridge Helix
Ramp, which was rehabilitated in 1987 and would not have been addressed for some years in
RIOCs capital plan. The purpose of the RFP is to solicit the services of a qualified engineering firm
to perform structural evaluation, corrective engineering, and design services. A firm has been
identified and approved by the RIOC Board a contract for services is being drafted.
The Corporation has engaged a consultant to provide engineering design and marine permitting
services for the completion of the Southpoint Park (SPP) shorelines. Failures due to deterioration
exist along both shores, and the west shore seawall consists of a succession of different masonry
construction types, ranging from cut granite to large concrete blocks interspersed with eroded gaps.
The eastern seawall, while in generally better condition, does have some localized failures including
but not limited to damage to some 100 linear feet that was breached during Hurricane Irene; the
portion damaged by the storm event has been approved by FEMA as a project for disaster recovery
funding. Public access to the shorelines is not practical until structural integrity is restored.
Moreover, loss of park area is beginning to occur as erosion penetrates beyond the wall breaches.
As noted above, Roosevelt Island was affected by Hurricane Irene. Before and during the storm,
RIOC staff took measures to mitigate potential damage and to protect lives and property. Similarly,
staff and contractor labor was used immediately following the storm to clear the roads and open
spaces of debris and downed trees. Under Federal guidelines, these efforts were identified as
eligible for reimbursement by FEMA. The following projects to rehabilitate portions of the Island
impacted by Hurricane Irene were identified to FEMA and completed: (1) repairs were made to
fencing damaged by falling trees; (2) repairs were made to damaged stone benches and walkways;
(3) RIOC replaced safety mulch washed away from playgrounds; (4) streetlights adorning the open
space at Lighthouse Park were damaged. Currently, plans for mitigation and repair at the South
Point seawall are being designed by an engineering firm, and repairs are being made to several
hundred linear feet of the West Side Sidewalk. These ongoing projects have similarly been
identified to FEMA and are approved for reimbursement upon completion. The filing deadline for
the continuing projects has been extended to December 21, 2015. As work is completed, the eligible
costs are submitted to FEMA/OEM for review and approval. To date, RIOC has realized $103,142
in construction and labor costs and is projected to incur an additional $1,405,052 for a projected
total of $1,508,194. The receipt of the Federal share (75% of costs incurred in a FEMA approved
scope of work) is dependent upon RIOCs outlay of cash for identified projects. As the completed
projects are reviewed and approved by FEMA/OEM, the Corporation will receive the Federal share
of the eligible costs as a reimbursement. Based on the projected total expenditures of $1,508,194,
RIOC will receive reimbursements totaling approximately $1,131,145.

10

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Managements Discussion and Analysis
March 31, 2013 and 2012
(continued)
Similarly, the Island experienced damages caused by Hurricane Sandy during October 2012. RIOC
has preliminarily identified projects to FEMA, including but not limited to, repairs of the Overlook
Pier on the West Promenade, and foot bridges in Lighthouse Park. The projects are under review by
FEMA and OEM for eligibility under Federal guidelines. RIOCs preliminary estimates to
undertake repairs and mitigate future damage total approximately $734,000. No filing deadline will
be established until the projects are deemed eligible.
RIOCs fifteen-year capital improvement plan provides a framework for the Corporation to renew
existing aged infrastructure, and maintain the quality of life for the Islands residents, workers, and
visitors. The Corporation achieves this by making capital improvements and strategically acquiring
capital assets that support essential services such as transit, sanitation, and public safety. Significant
projects in the first five years include the installation of LED lighting in the Motorgate Garage and
repairs to its helix ramp, renovations of the Blackwell House interior, and modernization of the west
drive. Feature projects and acquisitions slated for the fifteen-year period include: rehabilitation of
the Islands seawall, representing $21.6 million in estimated expenditures; replacement of the
railings at a cost of $3 million; $3.6 million toward maintaining a state of good repair on the
Islands newly renovated aerial tramway; and $5.5 million toward the purchase of hybrid-electric
buses, supplementing the Corporations ability to continue providing transportation services as its
current fleet ages.
REQUEST FOR INFORMATION
This financial report is designed to provide a general overview of RIOCs finances for all those with
an interest in the Corporations finances. Questions concerning any of the information provided in
this report, or requests for additional financial information, should be addressed to the Chief
Financial Officer, The Roosevelt Island Operating Corporation, 591 Main Street, Roosevelt Island,
New York 10044.

11

THE ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Statements of Net Position
March 31, 2013 and 2012
2013

2012

Assets
Current assets
Cash
Short-term investments
Receivables
Prepaid expenses
Total current assets
Noncurrent investments
Capital assets, net of accumulated depreciation
Total assets

692,141
40,047,969
1,086,151
1,437,302
43,263,563
2,050,455
68,724,541

417,734
41,792,429
983,142
1,199,409
44,392,714
2,046,345
67,090,562

114,038,559

113,529,621

809,459
556,151
29,910,944
2,382,670
103,746

457,249
413,532
30,437,919
2,046,344
103,872

Liabilities and Net Position


Current liabilities - accounts payable and accrued expenses
Compensated absences
Unearned revenue
Postemployment benefits other than pension
Other liabilities
Total liabilities

33,762,970

33,458,916

Net Position:
Investment in capital assets
Restricted for capital projects
Unrestricted net assets
Total net position

68,724,541
10,450,427
1,100,621
80,275,589

67,090,562
11,113,352
1,866,791
80,070,705

Total liabilities and net position

See accompanying notes to financial statements.

12

114,038,559

113,529,621

THE ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Statements of Revenues, Expenses and Changes in Net Position
Years ended March 31, 2013 and 2012
2013
Operating revenues:
Residential fees
Ground rent
Commercial rent
Tramway revenue
Public safety reimbursement
Transport/parking revenue
Interest income
Other revenues
Total operating revenues

1,111,441
9,356,679
1,421,038
4,640,843
1,673,097
2,521,892
185,403
959,317
21,869,710

Operating expenses:
Personnel services
Insurance
Professional services and legal services
Management fees
Telecommunications
Repairs and maintenance
Vehicles maintenance
Equipment purchases/lease
Supplies/services
Other expenses
Total operating expenses excluding depreciation

10,008,395
1,137,448
670,825
4,074,439
115,623
281,689
350,663
73,481
1,051,650
476,100
18,240,313

Operating income before depreciation


Depreciation expenses
Change in net position
Net position, beginning of year
Capital contributions for stabilization of Renwick Ruins
Net position, end of year

3,629,397
3,424,513
204,884
80,070,705
80,275,589

See accompanying notes to financial statements.

13

2012

878,320
9,174,109
1,296,141
4,297,891
1,613,297
2,485,613
263,633
837,899
20,846,903

9,795,206
1,061,546
699,139
4,072,518
115,029
382,153
318,719
112,977
1,039,350
534,367
18,131,004
2,715,899
3,436,043
(720,144)
80,761,736
29,113
$ 80,070,705

The Roosevelt Island Operating Corporation


(A Component Unit of the State of New York)
Statements of Cash Flows
Years ended March 31, 2013 and 2012

Cash flows from operating activities:


Receipts from tenants and customers
Payments related to employees
Payments to vendors
Net cash provided by operating activities
Cash flow from investing activities
Purchase of capital assets
Purchases of noncurrent investments
Purchase of short-term investments
Sale of short-term investments
Net cash used by investing activities
Cash flow from financing activities
Capital contributions for Renwick Ruins Project

2013

2012

$ 21,611,911
(9,822,014)
(8,197,349)
3,592,548

$ 20,712,144
(9,553,102)
(9,255,816)
1,903,226

(5,058,492)
(4,110)
(3,755,806)
5,500,267
(3,318,141)

(4,130,906)
(766,521)
(25,672,950)
28,188,338
(2,382,039)

Net cash provided by financing activities


Net increase in cash
Cash at beginning of year
Cash at end of year
Reconciliation of operating income to net cash
provided by operating activities
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by all activities:
Depreciation and amortization
Provision for bad debt
Changes in:
Receivables
Prepaid expenses
Accounts payable and accrued expenses
Compensated absences
Unearned revenue
Postemployment benefits other than pension
Other liabilities
Net cash provided by operating activities

See accompanying notes to financial statements.

14

29,113
29,113

274,407
417,734
692,141

(449,700)
867,434
417,734

204,884

(720,144)

3,424,513

3,436,044
(5,650)

(103,010)
(237,893)
352,210
(526,975)
142,620
336,325
(126)
3,592,548

121,469
(711,019)
(77,034)
(101,198)
(376,510)
337,865
(597)
1,903,226

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
1. Organization
In 1969, the City of New York entered into a lease with the New York State Urban
Development Corporation (UDC) for the development of Roosevelt Island. In May 1981,
pursuant to a memorandum of understanding between UDC and the New York State Division of
Housing and Community Renewal (DHCR), responsibility for Roosevelt Island was assigned to
DHCR. DHCR then assigned all of its rights and responsibilities to Safe Affordable Housing
for Everyone, Inc. (SAHE), a corporation under the direct control of the New York State
Commissioner of Housing.
Effective April 1, 1981, SAHE, a Community Development Corporation (formed under Article
(6) of the Private Housing Finance Law), became responsible for the day-to-day operation of the
services and facilities of Roosevelt Island.
On September 4, 1984, Roosevelt Island Operating Corporation (RIOC) was organized pursuant
to Chapter 899 of the New York Unconsolidated Law as a public benefit corporation. The
responsibility for the operation, security and maintenance of Roosevelt Island was transferred
from SAHE to RIOC on April 1, 1985.
Generally accepted accounting principles require that the reporting entity include (1) the
primary government, (2) organizations for which the primary government is financially
accountable and (3) other organizations for which the nature and significance of their
relationship with the primary government are such that exclusion would cause the reporting
entitys financial statements to be misleading or incomplete. The criteria provided in
Governmental Accounting Standards Board codification 2100, The Financial Reporting Entity,
have been considered and there are no agencies or entities which should be, but are not,
combined with the financial statements of RIOC. However, RIOC is considered a component
unit of the State of New York.
2. Summary of Significant Accounting Policies
(a) Basis of Presentation
RIOC was created by the New York State Legislature in 1984 as a public benefit corporation
charged with maintaining, operating, and developing Roosevelt Island. RIOC follows enterprise
fund reporting; accordingly, the financial statements are presented using the economic resources
measurement focus and the accrual basis of accounting. Enterprise fund statements offer short
and long-term financial information about the activities of the Corporation. These statements are
presented in a manner similar to a private business. While detailed sub-information is not
presented, separate accounts are maintained for each fund to control and manage transactions
for specific purposes and to demonstrate that RIOC is properly performing its contractual
obligations.

15

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
2. Summary of Significant Accounting Policies (continued)
(a) Basis of Presentation (continued)
The financial statements of RIOC are prepared in accordance with generally accepted
accounting principles (GAAP). RIOCs reporting entity applies all relevant Governmental
Accounting Standards Board (GASB) pronouncements and Accounting Principles Board (APB)
opinions issued after November 30, 1989, unless they conflict with GASB pronouncements.
New Accounting Pronouncement:
For the year ended March 31, 2013, RIOC adopted the provisions of GASB Statement No. 63
Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net
Position. This statement amends the net asset reporting requirements in Statement No. 34
Basic Financial Statements and Managements Discussion and Analysis-for State and Local
Governments and other pronouncements by incorporating deferred outflows of resources and
deferred inflows of resources into the definitions of the required components of the residual
measure and by renaming that measure as net position, rather than net assets.
(b) Budgetary Information
During the year ended March 31, 2013, RIOC did not request appropriations for the State of
New York and, as such, a budget was not required to be adopted by law. Accordingly,
budgetary information was not included in the notes to financial statements. However, the
Board did approve an operating budget for managements internal use, and is included under
supplementary information.
(c) Cash and Cash Equivalents
The following is a summary of cash and cash equivalents as of March 31, 2013 and 2012:
2013
$

Cash - deposits
Short-term investments:
Certificates of deposit (CDARS)
Money market accounts

692,141

2012
$

21,135,884
18,912,085
40,047,969
$

Total cash and cash equivalents

16

40,740,110

417,734

20,990,528
20,801,901
41,792,429
$

42,210,163

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
2. Summary of Significant Accounting Policies (continued)
(c) Cash and Cash Equivalents (continued)
RIOC defines cash and cash equivalents as short-term, highly liquid investments with purchased
maturities of three months or less.
The money market accounts are secured by collateral securities held in escrow by JP Morgan
Chase Bank, NA and managed by the National Collateral Management Group with market
values totaling $23,284,101 and $23,616,692 as of March 31, 2013 and March 31, 2012,
respectively.
Investments managed internally consist of certificates of deposit, CDARS, a FDIC insured
program administered by Amalgamated Bank, with purchased maturities of twelve months or
less, and interest bearing cash deposit accounts. RIOC is limited under its investment guidelines
primarily to the investment of funds in obligations of the United States of America (United
States Government Securities), the State of New York, high grade Corporate Securities or
certificates of deposit. All cash and funds invested in certificates in any fiduciary bank or trust
company must be secured at all times by United States Government Securities or obligations of
the State of New York, with a market value, combined with any FDIC coverage, at least equal
to the amount of such deposits. Monies held by the Trustees are only secured by obligations
guaranteed by the United States of America.
(d) Noncurrent Investments
This represents funds set aside to satisfy the obligation of the postemployment benefits other
than pension under GASB Statement No. 45 and are invested in collateralized money market
and CDARS.
(e) Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets are reported
on the statement of assets in the accompanying financial statements. Capital assets are defined
by RIOC as assets with an initial individual cost of more than $5,000 and an estimated useful
life in excess of two years. Such assets are recorded at historical cost or estimated historical
cost if purchased or constructed. The costs of normal maintenance and repairs that do not add to
the value of the assets or materially extend assets lives are not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed.
Property, plant and equipment of RIOC are depreciated using the straight-line method over the
following estimated useful lives:

17

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
2. Summary of Significant Accounting Policies (continued)
e) Capital Assets (continued)
Seawall (improvement of 1995)
Buildings
Building improvements
Infrastructure
Vehicles
Office equipment
Computer equipment
Leasehold improvements

73
40
15
50
10
5
5
15

(f) Unearned Revenue


Unearned revenue reported in the statement of net position represents amounts collected in
advance for lease-related payments pertaining to subsequent fiscal years. These amounts will be
recognized as income on an annual basis over a period of the remaining fifty-six years on the
ground lease for the City of New York expiring in 2068 under the accrual basis of accounting.
Breakdown is as follows:

Buildings
Octagon
Southtown Bldg #1
Southtown Bldg #2
Southtown Bldg #3
Southtown Bldg #4
Southtown Bldg #5
Southtown Bldg #6
Sportspark Field
Total

Balance at
April 01, 2012
$

2,687,361
1,806,666
1,723,950
3,684,234
4,803,418
6,133,911
9,441,305
157,074
$ 30,437,919

Additions
$

163,683
163,683

Amortization
$

(47,354)
(31,836)
(30,378)
(64,920)
(84,642)
(108,087)
(166,367)
(157,074)
(690,658)

Balance at
March 31, 2013
$

2,640,007
1,774,830
1,693,572
3,619,314
4,718,776
6,025,824
9,274,938
163,683
29,910,944

(g) Compensated Absences


It is RIOCs policy to accrue for unused compensated absences for all full time employees.
Accrued compensated time as of March 31, 2013 and 2012 were $556,151 and $413,532,
respectively.

18

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
2. Summary of Significant Accounting Policies (continued)
(h) Public Purpose Grants
Included in "Other Expenses" are expenditures for public purpose grants totaling $275,000 per
year for the years ended 2013 and 2012. The Roosevelt Island Youth Center was granted
$175,000 each year to help fund operating expenses. The remaining grants of $100,000 are
awarded to various Island-based not-for-profits that must apply each year and require Board
approval.
(i) Estimates
The preparation of financial statements in conformity with generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues, expenses and expenditures
during the reporting period. Actual results could differ from those estimates.
3. Capital Assets
Capital assets for the year ended March 31, 2013 are summarized as follows:
Buildings

Balance at
April 01, 2012

Capital assets:
$ 3,719,049
Seawall
40,326,092
Building and building improvements
13,300,334
Landmarks
4,315,621
Vehicles
3,276,243
Equipment
49,384,946
Infrastructure
Leasehold improvements
114,322,285
Total capital assets
Less accumulated depreciation:
Seawall
Building and building improvements
Landmarks
Vehicles
Equipment
Infrastructure
Total accumulated depreciation
Net capital assets

Increase

(872,159)
(27,874,765)
(6,949,173)
(1,962,257)
(2,627,685)
(6,945,684)
(47,231,723)
$ 67,090,562

19

6,000
1,680,705
748,839
79,641
98,923
2,405,262
39,122
5,058,492

(51,001)
(1,218,402)
(290,713)
(435,491)
(277,823)
(1,151,083)
(3,424,513)
$

1,633,979

Balance at
March 31, 2013

Decrease

3,725,049
42,006,797
14,049,173
4,395,262
3,375,166
51,790,208
39,122
119,380,777

(923,160)
(29,093,167)
(7,239,886)
(2,397,748)
(2,905,508)
(8,096,767)
(50,656,236)
$ 68,724,541

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
3. Capital Assets (continued)
Capital assets for the year ended March 31, 2012 are summarized as follows:
Balance at
April 1, 2011
Capital assets:
Seawall
$ 3,719,049
Building and building improvements
39,924,943
Landmarks
12,989,185
Vehicles
4,277,552
Equipment
3,104,128
Infrastructure
46,176,522
Total capital assets
110,191,379
Less accumulated depreciation:
Seawall
Building and building improvements
Landmarks
Vehicles
Equipment
Infrastructure
Total accumulated depreciation
Net capital assets

Increase
$

(821,213)
(26,703,515)
(6,664,821)
(1,533,747)
(2,226,140)
(5,846,244)
(43,795,680)
$ 66,395,699

401,149
311,149
38,069
172,115
3,208,424
4,130,906

(50,946)
(1,171,250)
(284,352)
(428,510)
(401,545)
(1,099,440)
(3,436,043)
$

694,863

Balance at
March 31, 2012

Decrease
-

3,719,049
40,326,092
13,300,334
4,315,621
3,276,243
49,384,946
114,322,285

(872,159)
(27,874,765)
(6,949,173)
(1,962,257)
(2,627,685)
(6,945,684)
(47,231,723)
$ 67,090,562

4. Operating Revenues, Basic Rent and Housing Company Reimbursement


Operating revenues in the accompanying statement of revenues, expenses and fund net position
consist of income derived from the following sources:
(a) Residential Fees
The net present value (NPV) fee for Southtown buildings # 4, 5 and 6 were collected in
advance and recognized over the term of the lease see above section 2 (f) Unearned
Revenue. Tax equivalent payments (TEP) are collected and recognized from Southtown
buildings # 5 and 6 over the term of the lease. Condo sales fees are collected and recognized
upon closing of a sale. TEP and NPV are fixed and the Condo fees vary according to sales.

20

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
4. Operating Revenues, Basic Rent and Housing Company Reimbursement (continued)
(b) Ground Rent
Ground rents are derived from ground subleases between RIOC and various developers of
housing on Roosevelt Island. Most of the ground subleases expire in 2068, which coincides
with the expiration of the master lease between RIOC and New York City, the owner of
Roosevelt Island. Ground rents account for nearly 45% of annual revenues. The two main
sources of ground rents are Manhattan Park and Roosevelt Landings (formerly Eastwood).
The other streams of ground rents are from Southtown Buildings #1,2,3,4,5 and 6; Island
House; Rivercross; and, Octagon.
Manhattan Park - Under the terms of the ground sublease between RIOC and Roosevelt
Island Associates dated August 4, 1986 and expiring in 2068, annual rent, which
commenced on the Rent Commencement Date of January 1, 1991, consists of a base ground
rent of $100,000 and additional fixed ground rent of $1,900,000, increasing $100,000
annually through December 31, 2011. As of January 1, 2012 and continuing through
December 31, 2026, annual ground rent consists of the base ground rent of $100,000 and
additional fixed ground rent of $4,000,000. Beyond 2026 until expiration in 2068, the
ground rent is based upon the appraised value of the property times an applicable
percentage, which is the market rate of return. Ground rents earned under the terms of the
ground sublease were $4,100,000 and $4,025,000 for the years ended March 31, 2013 and
2012, respectively.
In addition to the ground rent mentioned above, RIOC receives a percentage payment, which
is based on a percentage of Manhattan Parks annual rent rolls. Percentage payments
received were $2,040,649 for the year ended March 31, 2013, and the same amount,
$2,040,649, for the year ended March 31, 2012.
Roosevelt Landings (formerly Eastwood) - The ground sublease between RIOC and North
Town Phase 1 Houses, Inc., dated March 15, 1972, was amended and restated with the base
ground rent increasing to $1 million per year effective October 1, 2006, plus a percentage
interest in subsequent increasing rent rolls. Ground rents earned totaled $1,354,838 and
$1,289,330 for the years ended March 31, 2013 and 2012, respectively.
(c) Commercial Rent
On August 1, 2011, RIOC entered into a Master Sublease Agreement with Hudson Related
Retail LLC to redevelop, improve, market, lease and professionally operate the Commercial
Retail Spaces controlled by RIOC. Hudson Related Retail LLC will pay RIOC an annual
guaranteed rent of $900,000 plus participation in the profits of Hudson Related Retail LLC.
According to its certified financial statements as of December 31, 2012, Hudson Related
Retail LLC invested $636,436 and incurred a loss of $320,279. According to the agreement,
RIOC will share future profits 50/50 once HRR is paid back its investment.
21

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
4. Operating Revenues, Basic Rent and Housing Company Reimbursement (continued)
(d) Tramway Revenue
During February 2004, RIOC entered into an agreement with The New York Transit
Authority (NYCTA) for revenue collection from the Tramway. In the agreement, RIOC
receives from the NYCTA a fare of $2.00 for all swipes of full-fare Metro Cards, including
transfers, in turnstiles located in RIOCs tram stations. The funds are transmitted to RIOC
via electronic funds transfer and the NYCTA supplies appropriate reports for the
reconciliation of the revenue and rider-ship. There is a franchise fee expense associated
with this agreement that is of 1 percent of gross sales.
(e) Public Safety Reimbursement
The intent of the initial agreements with the four original Mitchell-Lama housing projects
(the WIRE Projects) was for the Corporation to recoup approximately 50% of the cost of
maintaining a public safety department on the Island. Accordingly, no less than 50% of such
costs have been reimbursed by the WIRE Projects and are included in public safety
reimbursement on the accompanying statements of revenues, expenses, and changes in fund
net position. Additionally, Manhattan Park, Southtown and the Octagon projects are
responsible for their respective share of the cost of RIOCs public safety department. Public
safety reimbursements were $1,652,712 and $1,613,297 for fiscal year ending March 31,
2013 and 2012, respectively.
(f) Transportation and Parking Fees
The Motorgate Garage, the Roosevelt Island parking facility, is managed by an agent,
Central Parking System (Central). This agreement is cancelable by RIOC on 30-day notice
and by Central on 180-day notice. Central collects the parking fees and pays the operating
costs in connection with the management of the garage. The excess of parking revenues
over operating costs is returned to RIOC. RIOC shares the Motorgate revenue with
Roosevelt Island Associates, operator of Manhattan Park, with RIOC receiving 61% of the
net income. RIOCs share of Motorgate revenues totaled $1,919,258 and $1,889,277 for the
years ended March 31, 2013 and 2012, respectively.
Transportation revenues from the provision of bus services totaled $451,054 and $449,827
for the years ended March 31, 2013 and 2012, respectively. The cost of running the bus
service totaled $1,631,502 and $1,320,105 for the same respective periods. Additionally,
revenues from street parking meters for these periods totaled $151,580 and $146,509.
(g) Interest and Other Revenues
Interest income is derived from deposits that are either FDIC insured or collateralized by
government securities according to the investment guidelines of the State of New York.
Other revenues comprised of fees for usage of the sports fields and facilities.
22

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
4. Operating Revenues, Basic Rent and Housing Company Reimbursement (continued)
(h) De-designation Fee Income
The development agreement for Southtown buildings (Buildings) five (5) through nine (9)
between Hudson Related Joint Venture (Developer) and RIOC included a contingent dedesignation (cancellation of project or portion of) fee of $2,252,198. As of the date of this
report, Buildings five (5) and six (6) were completed within the agreed upon timeframe, and
resulted in the pro-rata reduction of the de-designation fee to $1,420,800. The agreement is
collateralized by a Guaranty Letter of Credit issued by Deutsche Bank Trust Company, NA
in the amount of $1,420,800 maturing on August 15, 2013, to be renewed annually. Of the
remaining Buildings, the Building 7 Lease Closing need to occur before July 31, 2013; the
Building 8 Lease Closing shall occur no later than 30 months after the Building 7 Lease
Closing; and the Building 9 Lease Closing shall occur no later than 30 months after the
Building 8 Lease Closing. In the event that the Developer fails to close a Building lease in
accordance with the foregoing schedule, except if due to RIOC, RIOC may draw the entire
balance of the Guaranty Letter of Credit and apply same at its sole discretion, and in
addition thereto, at its sole option, de-designate Developer for each such Building and for
the remainder of the Building.
(i) Future Minimum Payments Due
Future minimum payments due to RIOC under current leases all with the housing companies
and leases for commercial space are as follows:
Years ending
March 31
2014
2015
2016
2017
2018
Total

Housing
Companies
$
11,601,033
12,337,866
13,529,227
14,653,964
15,559,829

Commercial
Leases
$
1,465,632
1,695,366
1,725,806
1,781,969
1,813,874

67,681,919

8,482,647

5. Management Agreements
The Roosevelt Island Tramway System is operated by Leitner-Poma of America, Inc., a
subsidiary of Pomagalski S.A, the designer and builder of the modernized Tramway system,
which went into operation on November 30, 2010. RIOC entered into a 5-year fixed fee
operating agreement at an annual cost of $3,397,200.
23

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
5. Management Agreements (Continued)
RIOC also has a parking management agreement with Central Parking System (Central) for
the management of Motorgate Garage. This agreement is cancelable by RIOC on 30-day notice
and by Central on 180-day notice. RIOC pays an annual management fee of $40,000 and certain
operating costs in connection with the management of the garage.
6. Income Taxes
RIOC is a public benefit corporation of the State of New York and as such is exempt from
income tax under Section 115 of the Internal Revenue Code. Accordingly, no income taxes
have been provided for in the financial statements.
7. Retirement Plans
Retirement plans in which RIOC contributes are detailed as follows:
(a) Non-Union Employees:
Plan Description
RIOCs non-union employees participate in the New York State and Local Employees
Retirement System (ERS). This is a cost-sharing multiple-employer retirement system. ERS
provides retirement benefits as well as death and disability benefits. Obligations of
employers and employees to contribute and benefits to employees are governed by the New
York State Retirement and Social Security Law (NYSRSSL). As set forth in the NYSRSSL,
the Comptroller of the State of New York serves as sole trustee and administrative head of
ERS. The Comptroller shall adopt and may amend rules and regulations for the
administration and transaction of the business of ERS and for the custody and control of
their funds. ERS issues a publicly available financial report that includes financial
statements and required supplementary information. That report may be obtained by writing
to the New York State and Local Retirement Systems, Albany, New York 12244.
Funding Policy
ERS is contributory (3%) except for employees who joined the System before July 27, 1976.
Employees who joined the System after July 27, 1976, but prior to January 1, 2011, and
have been members of the System for at least ten years, or have at least ten years of credited
service are not required to contribute 3% of their salaries. Employee hired after January 1,
2011 shall contribute 3% of salary for the duration of employment. Under the authority of
the NYSRSSL, the Comptroller shall certify annually the rates expressed as proportions of
payroll of members, which shall be used in computing the contributions required to be made
by employers to the pension accumulated fund. RIOC is required to contribute at an
actuarially determined rate.

24

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
7. Retirement Plans (continued)
Funding Policy (continued)
The required contributions for the current year and two preceding years were approximately:
March 31, 2011
March 31, 2012
March 31, 2013

$
$
$

389,011
639,065
583,380

RIOC has made the required contributions for each year.


(b) Union Employees
Union employees participate in separate defined contribution plans, which are administered
by each union. RIOC contributed $188,730 and $197,630 for the years ended March 31,
2013 and 2012, respectively, to union employees defined contribution plans.
8. Risk Management
RIOC purchases commercial insurance policies to adequately protect against potential loss
stemming from general liability, vehicle liability, property damage, and public officials and
employee liability. Coverages for the forthcoming fiscal year ended March 31, 2014 were
appropriately increased to provide adequate protection for RIOC as follows:
2013-2014
Coverage Amount

Coverages
General liability - RIOC and Tram
Property
Boiler and machinery
Automobile
Public officials liability

25

$125 million limit


$75 million loss limit
$100 million limit
$1 million limit
$5 million limit

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
9. Commitments and Contingencies
Commitments and contingencies at March 31, 2013 and 2012 are detailed as follows:
(a) Leases
RIOC has agreements with four (4) housing companies operating on the Island to sublease
commercial space occupied by the housing companies. Rent expense for the years ended
March 31, 2013 and 2012 approximated $86,000 per year.
(b) Litigation
RIOC is a defendant in various lawsuits. In the opinion of RIOCs legal counsel, these suits
are without substantial merit and should not result in judgments which in the aggregate
would have a material adverse effect on RIOCs financial statements.
(c) Prior Years New York State Appropriations
The Office of the State Comptroller of the State of New York, requested confirmation of the
following potential liabilities:
Appropriation # 0060083
Appropriation # 0066230
Appropriation # 0071968
Appropriation # 0078460
Appropriation # 0084266

fiscal year 89/90


fiscal year 90/91
fiscal year 91/92
fiscal year 92/93
fiscal year 93/94

1,299,964
2,463,531
2,702,481
1,346,400
1,648,254
9,460,630

The appropriations were made to RIOC for services and expenses related to the
development and operation of Roosevelt Island. Furthermore, the appropriations required
RIOC for repayment by such corporation to the State of New York of an amount equal to
any receipts collected by the corporation during the fiscal year beginning April 1, 1989 in
excess of the amount that the director of the budget estimates that the corporation will
receive during the fiscal year. RIOCs records indicate that it satisfied the repayment
requirements of the appropriations; and it doesnt owe any monies to the State of New York
for appropriations made during the fiscal years 89/90 to 93/94.
(d) Revenue Allocation Agreement between New York State Urban Development Corporation
(UDC), now known as the Empire State Development Corporation (ESD) and Roosevelt
Island Operating Corporation (RIOC)
On August 3rd, 1988 ESD and RIOC entered into an agreement in the sharing of all revenues
derived by RIOC in order for ESD to recover its investment in Roosevelt Island. The total
26

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
9. Commitments and Contingencies (continued)
(d) Revenue Allocation Agreement between New York State Urban Development Corporation
(UDC), now known as the Empire State Development Corporation (ESD) and Roosevelt
Island Operating Corporation (RIOC) - continued
amount invested in developing the Roosevelt Island infrastructure and funding of ESDs
operating deficits prior to the assignment of operations to RIOC amounted to $170,356,976
along with a stated interest rate of 5.74%. The agreement calls for revenues to be allocated
in the following manner; (1) RIOC Operating Expenditures, (2) All Other State Subsidies,
(3) State (RIOC) Capital Investments and (4) ESD Debt. To date, no revenues have been
allocated for the ESD debt other than Tax Equivalency Payments (TEP) payments for
the islands original affordable Mitchell-Lama buildings. ESD acknowledges that there are
significant projected future capital investments to be made by RIOC and that it is highly
unlikely that there would be sufficient excess revenues to share with ESD.
(e) Claims
The contractor for the modernization of the Roosevelt Island Aerial Tramway has submitted
claims to RIOC for additional compensation in the amount of $18,794,956 (on top of the
fixed fee contracted price of $16,693,894) on account of various items of alleged extra work
and alleged interferences to its work. RIOC believes that these claims are without merit.
In addition, the contractor also claims a Contract Sum balance of $1,995,230 under the
Design/Build Agreement. The claimed Contract Sum balance is disputed by RIOC for
reason of various incomplete items of Work and contractors failure to return the Tramway
to service within the Contract Time.
The Corporations legal counsel is reviewing these claims and has not yet formed an opinion
on these matters.
10. Postemployment Benefits Other Than Pensions
The Corporation implemented the accounting and disclosure requirements of GASB Statement
No. 45 - Accounting and Financial Reporting by Employers for Postemployment Benefits
Other Than Pensions effective for its fiscal year beginning April 1, 2007.
Plan Description - The Corporation provides continuation of medical coverage to
administrative, non-represented employees (those categorized as M/C) that retire at age 55 or
older with five (5) years of service with the Corporation or a combination of service with a
previous NYS public employer and a minimum of one (1) year service with RIOC. The
employee must meet the requirements for retiring as a member of the NYS Employees
Retirement System, and the employee must be enrolled in NYSHIP. The Corporation
contributes 90% for employees and 75% for an employees spouse.
27

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
10. Postemployment Benefits Other Than Pensions (continued)
The Corporation provides certain health care benefits for retired employees. Substantially all of
the Corporations non-union employees may become eligible for these benefits if they reach the
normal retirement age, of the respective tier of the New York State Employees Retirement
System, while working for the Corporation. The Corporation, on an annual basis, accrues the
cost which represents the present value of these benefits to be paid over the estimated lives of
the retirees.
Total expenditures charged to operations for the years ended March 31, 2013 and 2012
amounted to $457,950 and $461,412, respectively. At March 31, 2013, the liability for retired
employees included in non-current accrued fringe benefits amounted to $2,382,670.
The number of participants as of January 1, 2013 was as follows:

Active employees

33

Retired employees
Spouses of retired employees

10
1

Total

44

Funding Policy - The Corporation currently pays for post-retirement health care benefits on a
pay-as-you-go basis. These financial statements assume that pay-as-you-go funding will
continue. The fund set aside for this purpose is discussed in Note 2 (d).
Benefit Obligations and Normal Cost
2013
Actuarial accrued liability (AAL):
Actuarial accrued liability
Less: Actuarial value of assets
Unfunded actuarial accrued liability (UAAL)
Normal cost

2012

4,879,082
4,879,082

$
$

4,641,422
4,641,422

261,151

274,538

455,051
81,854
(78,955)
457,950
(121,625)
336,325
2,046,344
2,382,669

458,992
68,339
(65,919)
461,412
(123,547)
337,865
1,708,479
2,046,344

Annual OPEB Cost and Net OPEB Obligation


Annual required contribution
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost (expense)
Contribution made on a pay-as-you-go basis
Increase in net OPEB obligation
Net OPEB obligation at beginning of year
Net OPEB obligation at end of year

28

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
10. Postemployment Benefits Other Than Pensions (continued)

Actuarial methods and assumptions:


Valuation method
Amortization period
Amortization method
Interest rate
Inflation rate
Annual payroll growth rate
Retirement rates

Projected Unit Credit Method


30 years
Level percent of pay, open group
4.0%
3.0%
3.5%
Later of age 65 and first eligibility

Healthcare cost trend:


Year

Medical Trend Rate

2012
2013
2014
2015
2016
2017 and beyond

7.5%
7.0%
6.5%
6.0%
5.5%
5.0%

11. Pollution Remediation Obligations


In accordance with the GASB Statement No. 49 - Accounting for Pollution Remediation
Obligations, management has concluded that no obligating event has occurred that would
require recognition of a future pollution remediation obligation in the accompanying financial
statements.
12. Accounting Standards Issued But Not Yet Implemented
GASB Statement No. 61 The Financial Reporting Entity: Omnibus is designed to improve
financial reporting for governmental entities by amending the requirements of Statements No.
14 The Financial Reporting Entity and No. 34 Basic Financial Statements and
Managements Discussion and Analysis for State and Local Governments. This statement
amends the criteria for including component units by only including those component units for
which the elected officials are financially accountable or that the government determines would
be misleading to exclude. This statement also amends the criteria for blending of component
units to include only those component units that are also intertwined with the primary
government that they are essentially the same as the primary government. The provisions of this
statement are effective for periods beginning after June 15, 2012, which is the fiscal year
beginning April 1, 2013 for RIOC. Management has not yet determined the effect that this
statement will have on the future financial statements of RIOC.
29

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
12. Accounting Standards Issued But Not Yet Implemented (continued)
GASB Statement No. 65 Items Previously Reported as Assets and Liabilities establishes
accounting and financial reporting standards that reclassify, as deferred outflows of resources or
deferred inflows of resources, certain items that were previously reported as assets and liabilities
and recognizes, as outflows of resources or inflows of resources, certain items that were
previously reported as assets and liabilities. This statement also provides other financial
reporting guidance related to the impact of the financial statement elements deferred outflows of
resources and deferred inflows of resources such as changes in the determination of the major
fund calculations and limiting the use of the term deferred in the financial statement
presentations. The provisions of this statement are effective for periods beginning after
December 15, 2012, which is the fiscal year beginning April 1, 2013 for RIOC. Management
has not yet determined the effect that this statement will have on the future financial statements
of RIOC.
GASB Statement No. 66 Technical Corrections 2012 an Amendment of GASB
Statements No. 10 and No. 62 improves accounting and financial reporting for a governmental
entity by resolving conflicting guidance that resulted from the issuance of two pronouncements,
Statements No. 54 Fund Balance Reporting and Governmental Fund Type Definitions, and
No. 62 Codification of Accounting and Financial Reporting Guidance Contained in PreNovember 30, 1989 FASB and AICPA Pronouncements. This statement also amends
Statement No. 10 Accounting and Financial Reporting for Risk Financing and Related
Insurance Issues by removing the provision that limits fund-based reporting of an entitys risk
financing activities to the general fund and the internal service fund type. This statement also
amends Statement 62 by modifying the specific guidance on accounting for (1) operating lease
payments that vary from a straight-line basis, (2) the difference between the initial investment
(purchase price) and the principal amount of a purchased loan or group of loans, and (3)
servicing fees related to mortgage loans that are sold when the stated service fee rate differs
significantly from a current (normal) servicing fee rate. The provisions of this statement are
effective for periods beginning after December 15, 2012, which is the fiscal year beginning
April 1, 2013 for RIOC. Management has not yet determined the effect that this statement will
have on the future financial statements of RIOC.
GASB Statement No. 67 Financial Reporting for Pension Plans an amendment of GASB
Statement No. 25 replaces existing standards of financial reporting and notes disclosures for
most pension plans that are administered through trusts or equivalent arrangements. The
provisions of this statement are effective for periods beginning after June 15, 2013, which is the
fiscal year beginning April 1, 2014 for RIOC. Management has not yet determined the effect
that this statement will have on the future financial statements of RIOC.

30

ROOSEVELT ISLAND OPERATING CORPORATION


(A Component Unit of the State of New York)
Notes to Financial Statements
March 31, 2013 and 2012
(continued)
12. Accounting Standards Issued But Not Yet Implemented (continued)
GASB Statement No. 68 Accounting and Financial Reporting for Pensions an amendment
of GASB Statement No. 27 replaces existing standards of accounting and financial reporting
for pension plans that are provided to the employees of state and local governmental employers
through pension plans that are administered through trusts or equivalent arrangements. The
provisions of this statement are effective for periods beginning after June 15, 2014, which is the
fiscal year beginning April 1, 2015 for RIOC. Management has not yet determined the effect
that this statement will have on the future financial statements of RIOC.

31

The Roose ve lt Island O pe rating C orporation


(A Component Unit of the State of New York)
Sche dule of O perations by Department
Ye ar Ende d March 31, 2013

Operations
Operating Revenues:
Residential fees
Ground rent
Commercial rent
T ramway revenue
Public safety reimbursement
T ransport/parking revenue
Interest income
Other revenues

T otal operating revenues


Operating Expenses:
Personnel Services :
Salaries
T emporary employees
Employee benefits
Compensated absences expenses
T otal personnel services
Other T han Personnel Services (OT PS):
Insurance
Professional services
Management fees
Legal services
T elecommunications
Island Improvements/Capital Plan
Repairs and maintenance
Vehicles maintenance
Equipment purchases/lease
Supplies/services
Other expenses

369,739
9,356,679
1,421,038
7,107
313,918

Ge ne ral Fund
Bus
Parking

Public Safety

1,673,097
-

451,055
-

Parks/Rec.

2,070,838
-

645,399

Public
Purpose Fund

T ram

4,640,843
-

6
-

Capital
Fund

Re se rve d
Fund

540,116
1,452
-

Total

201,586
176,837
-

1,111,441
9,356,679
1,421,038
4,640,843
1,673,097
2,521,893
185,402
959,317

11,468,481

1,673,097

451,055

2,070,838

645,399

4,640,843

541,568

378,423

21,869,710

3,057,350
153,941
1,986,191
142,620

2,035,023
678,180
-

947,221
320,646
-

483,221
18,611
185,391
-

6,522,815
172,552
3,170,408
142,620

5,340,102

2,713,203

1,267,867

687,223

10,008,395

987,448
364,345
247,161
115,623
7,000
241,992
42,407
62,514
494,733
92,898

638,120
-

59,319
-

150,000
3,436,319
-

6,892
34,535
773
90,738
14,218

9,896
272,632
6,985
47,911
2,977

12,501
1,090
1,856
163,037
83,354

11,952
1,354
181,674
70

275,583

1,137,448
423,664
4,074,439
247,161
115,623
7,000
281,688
350,664
73,482
1,051,649
469,100

(1,545)
73,556
-

T otal Other T han Personnel Services (OT PS)

2,656,121

147,156

340,401

710,131

321,157

3,781,369

275,583

8,231,918

T otal operating expenses excluding depreciation

7,996,223

2,860,359

1,608,268

710,131

1,008,380

3,781,369

275,583

18,240,313

3,472,258
-

(1,187,262)
-

(1,157,213)
-

541,568
3,424,513

378,423
-

3,629,397
3,424,513

Operating income (loss) before depreciation


Depreciation expense
Operating income (loss)

3,472,258

$ (1,187,262) $ (1,157,213) $

32

1,360,707
1,360,707

(362,981)
-

859,474
-

(362,981) $

859,474

(275,577)
$

(275,577) $ (2,882,945) $

378,423

204,884

Roosevelt Island O perating Corporation


(A Component Unit of the State of New York)
Schedule of O perations by Department
Year Ended March 31, 2012

Operations

Public Safety

Ge ne ral Fund
T ransportation
Parking

Parks/Rec.

T ram

Public

Capital

Reserved

Purpose Fund

Fund

Fund

Total

Operating Revenues:
Residential fees

369,739

Ground rent

9,174,109

Commercial rent

306,995

$ 201,586

878,320
9,174,109

1,296,141

1,296,141

T ramway revenue

4,297,891

4,297,891

Public safety reimbursement

1,613,297

1,613,297

T ransport/parking revenue

449,827

2,035,786

2,485,613

12,976
167,420

670,479

(5)
-

3,373
-

247,289
-

263,633
837,899

11,020,385

1,613,297

449,827

2,035,786

670,479

4,297,891

(5)

310,368

448,875

20,846,903

3,311,788

1,986,680

724,628

438,816

6,461,912

132,143

5,520

27,690

165,353

657,007
-

275,617
-

204,845
-

3,269,139
(101,198)

2,649,207

1,000,245

671,351

9,795,206
1,061,546

Interest income
Other revenues
T otal operating revenues
Operating Expenses
Personnel Services:
Salaries
T emporary employees
Employee benefits

2,131,670
(101,198)

Compensated absences expenses

5,474,403

T otal personnel services


Other T han Personnel Services (OT PS) :
Insurance

911,546

150,000

Professional services

550,671

40,839

591,510

638,951

3,433,567

4,072,518

Management fees
Legal services

107,629

107,629

T elecommunications

115,029

115,029

Repairs and maintenance

317,166

8,531

18,199

14,334

8,483

15,440

382,153

Vehicles maintenance

44,134

35,423

238,522

640

318,719

Equipment purchases/lease

93,129

8,269

6,407

5,172

112,977

536,046
132,368

98,358
16,635

37,975
2,395

70,620
-

136,995
106,494

159,356
2,025

274,450

1,039,350
534,367

Supplies/services
Other expenses
T otal Other T han Personnel Services (OT PS)

2,807,718

167,216

303,498

723,905

293,451

3,765,560

274,450

8,335,798

T otal operating expenses excluding depreciation

8,282,121

2,816,423

1,303,743

723,905

964,802

3,765,560

274,450

18,131,004

2,738,264
-

(1,203,126)
-

310,368
3,436,043

448,875
-

2,715,899
3,436,043

2,738,264

$ (1,203,126) $

Operating income (loss) before depreciation


Depreciation expense
Operating income (loss)

(853,916)
-

1,311,881
-

(853,916) $ 1,311,881

33

(294,323)
-

532,331
-

$ (294,323) $

532,331

(274,455)
$

(274,455) $ (3,125,675) $ 448,875

(720,144)

The Roosevelt Island Operating Corporation


(A Component Unit of the State of New York)
Budget Variance Report
Year Ended March 31, 2013
(Unaudited)
Actual
Budget
Operating revenues:
Residential fees
Ground rent
Commercial rent
Tramway revenue
Public safety reimbursement
Transport/parking revenue
Interest income
Other revenues

Total operating revenues


Operating expenses:
Personnel Services:
Salaries
Salaries - overtime
Temporary employees
Workers compensation & disability
ER payroll taxes
Health insurance
Dental/vision
Pension
Other employee benefits
Compensated absences expenses
Total Personnel Services
Other Than Personnel Services (OTPS) :
Insurance
Professional services
Marketing /advertisting
Management fees
Legal services
Telecommunications
Island Improvements/Capital Plan
Repairs and maintenance
Repairs and maintenance equipment
Other repairs and maintenance
Vehicles gas
Vehicles repair and maintenance
Vehicles parts
Equipment lease
Office equipment purchase
Equipment purchases
Other equipment purchases
Exterminator
Uniforms
Light, power, heat
Water and sewer
Office supplies
Parts and supplies
Service maintenance agreement
Employee travel and meal
Employee training
Shipping
Subscriptions /membership
Other expenses
Island Events - Community relations
Total Other Than Personnel Services
Total operating expenses excluding depreciation
Operating income (loss) before depreciation
Depreciation expenses
Operating income (loss)

1,111,441
9,356,679
1,421,038
4,640,843
1,673,097
2,521,892
185,403
959,317

1,239,509
9,453,000
1,437,000
4,147,000
1,662,000
2,691,000
291,000
703,000

Favorable (Unfavorable)
Variance
Percent
$

(128,068)
(96,321)
(15,962)
493,843
11,097
(169,108)
(105,597)
256,317

-10%
-1%
-1%
12%
1%
-6%
-36%
36%

21,869,710

21,623,509

246,201

1%

6,290,604
232,211
172,553
128,234
582,080
1,111,071
68,124
772,110
508,788
142,620

6,432,486
175,000
175,000
162,133
584,603
1,275,238
74,777
757,755
476,722
-

141,882
(57,211)
2,447
33,899
2,523
164,167
6,653
(14,355)
(32,066)
(142,620)

2%
-33%
1%
21%
0%
13%
9%
-2%
-7%
100%

10,008,395

10,113,714

105,319

1%

1,137,448
406,600
17,063
4,074,439
247,161
115,623
7,000
169,451
14,019
98,219
208,240
76,406
66,017
28,980
12,067
23,324
9,111
9,800
46,241
650,696
45,797
14,819
232,665
51,632
8,229
27,783
8,763
18,043
324,159
82,123

1,150,000
320,900
17,400
4,077,200
200,000
107,100
402,200
25,200
105,000
168,300
83,600
37,200
16,400
19,800
53,600
18,000
17,100
66,950
588,000
8,600
17,100
210,700
70,500
17,500
56,400
13,400
15,700
338,200
85,000

12,552
(85,700)
337
2,761
(47,161)
(8,523)
(7,000)
232,749
11,181
6,781
(39,940)
7,194
(28,817)
(12,580)
7,733
30,276
8,889
7,300
20,709
(62,696)
(37,197)
2,281
(21,965)
18,868
9,271
28,617
4,637
(2,343)
14,041
2,877

1%
-27%
2%
0%
-24%
-8%
0%
58%
44%
6%
-24%
9%
-77%
-77%
39%
56%
49%
43%
31%
-11%
-433%
13%
-10%
27%
53%
51%
35%
-15%
4%

8,231,918

8,307,050

75,132

1%

18,240,313

18,420,764

180,451

3,629,397
3,424,513

3,202,745
3,577,000

426,652
152,487

1%
13%
4%

579,139

155%

204,884

34

(374,255) $

3%

The Roosevelt Island Operating Corporation (RIOC)


(A Component Unit of the State of New York)
Budget Variance Report
Year Ended March 31, 2012

Operating revenues:
Residential fees
Ground rent
Commercial rent
Tramway revenue
Public safety reimbursement
Transport/parking revenue
Interest income
Other revenues

Total operating revenues


Operating expenses:
Personnel Services :
Salaries
Salaries-overtime
Temporary employees
Workers compensation & disability
ER payroll taxes
Health insurance
Dental/vision
Pension
Other employee benefits
Compensated absences expenses

(88,455)
(24,891)
(310,859)
553,891
(1,703)
(90,387)
(245,367)
220,899

-9%
0%
-19%
15%
0%
-4%
-48%
36%

20,833,775

13,128

0%

6,316,468
145,444
165,353
190,595
573,367
1,083,897
75,411
836,645
509,224
(101,198)

6,349,785
175,000
175,000
186,098
579,699
1,190,395
72,482
700,868
473,804
-

33,317
29,556
9,647
(4,497)
6,332
106,498
(2,929)
(135,777)
(35,420)
101,198

1%
17%
6%
-2%
1%
9%
-4%
-19%
-7%
100%

9,795,206

9,903,131

107,925

1%

1,061,546
583,375
8,135
4,072,518
107,629
115,029
286,126
18,288
77,738
171,689
83,908
63,122
18,485
17,726
54,731
22,036
10,780
53,375
667,272
9,067
17,187
251,878
29,790
19,388
50,142
9,933
15,464
337,288
102,153

940,000
404,200
18,600
4,135,200
375,000
106,800
391,400
21,600
85,000
146,100
83,600
34,200
20,600
22,200
57,800
26,000
15,600
69,870
469,000
20,000
20,700
227,100
80,100
17,200
56,400
13,400
14,500
340,000
85,000

(121,546)
(179,175)
10,465
62,682
267,371
(8,229)
105,274
3,312
7,262
(25,589)
(308)
(28,922)
2,115
4,474
3,069
3,964
4,820
16,495
(198,272)
10,933
3,513
(24,778)
50,310
(2,188)
6,258
3,467
(964)
2,712
(17,153)

-13%
-44%
56%
2%
71%
-8%
27%
15%
9%
-18%
0%
-85%
10%
20%
5%
15%
31%
24%
-42%
55%
17%
-11%
63%
-13%
11%
26%
-7%
1%
-20%

20,846,903

Total Personnel Services


Other Than Personnel Services (OTPS) :
Insurance
Professional services
Marketing/advertisting
Management fees
Legal services
Telecommunications
Repairs and maintenance
Repairs and maintenance equipment
Other repairs and maintenance
Vehicles gas
Vehicles repairs and maintenance
Vehicles parts
Equipment lease
Office equipment purchase
Equipment purchases
Other equipment purchases
Exterminator
Uniforms
Light, power, and heat
Water and sewer
Office supplies
Parts and supplies
Service maintenance agreement
Employee travel and meal
Employee training
Shipping
Subscriptions/membership
Other expenses
Island Events - Community relations
Total Other Than Personnel Services
Total operating expenses excluding depreciation
Operating income (loss) before depreciation
Depreciation expenses
Operating income (loss)

878,320
9,174,109
1,296,141
4,297,891
1,613,297
2,485,613
263,633
837,899

Favorable (Unfavorable)
Variance
Percent

(Unaudited)
Budget

Actual

966,775
9,199,000
1,607,000
3,744,000
1,615,000
2,576,000
509,000
617,000

8,335,798

8,297,170

(38,628)

0%

18,131,004

18,200,301

69,297

2,715,899
3,436,043

2,633,474
3,256,000

82,425
(180,043)

0%
3%
-6%

(97,618)

-16%

(720,144) $

35

(622,526) $

INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER


FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF THE FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS

The Board of Directors


Roosevelt Island Operating Corporation
We have audited in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States, the financial statements of
Roosevelt Island Operating Corporation (RIOC), a component unit of the State of New York, as
of and for the year ended March 31, 2013, and the related notes to the financial statements, which
collectively comprise RIOCs basic financial statements, and have issued our report thereon dated
May 17, 2013.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered RIOCs internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinion on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of RIOCs internal
control. Accordingly, we do not express an opinion on the effectiveness of RIOCs internal control
over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the RIOCs financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies,
in internal control that is less severe than a material weakness, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.

36

Compliance and Other Matters


As part of obtaining reasonable assurance about whether RIOCs financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion
on compliance with those provisions was not an objective of our audit, and accordingly, we do not
express such an opinion. The results of our tests disclosed no instances of noncompliance or other
matters that are required to be reported under Government Auditing Standards.
Purpose of this Report
This report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of RIOCs internal control
or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering RIOCs internal control and compliance.
Accordingly, this communication is not suitable for any other purpose.

Elmhurst, New York


May 17, 2013

37

INDEPENDENT AUDITORS REPORT ON INVESTMENT COMPLIANCE

The Board of Directors


Roosevelt Island Operating Corporation
Report on Investment Program Compliance
We have audited the Roosevelt Island Operating Corporations (RIOC), a component unit of the
State of New York, compliance with the types of compliance requirements described in the Section
201.3 of Title Two of the Official Compilation of Codes, Rules, and Regulations of the State of
New York related to its investment program during the year ended March 31, 2013.
Managements Responsibility
Management is responsible for compliance with the requirements of Section 201.3 of Title Two of
the Official Compilation of Codes, Rules, and Regulations of the State of New York related to its
investment program.
Auditors Responsibility
Our responsibility is to express an opinion on the compliance of RIOCs investment program based
on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and, the State of New York
Investment Guidelines for Public Authorities. Those standards and the State of New York
Comptrollers Investment Guidelines for Public Authorities require that we plan and perform the
audit to obtain reasonable assurance about whether noncompliance with the types of compliance
requirements referred to above that could have a direct and material effect on the investment
program occurred. An audit includes examining, on a test basis, evidence about RIOCs
compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for the
investment program. However, our audit does not provide a legal determination of RIOCs
compliance.

38

Opinion on Investment Program


In our opinion, the Roosevelt Island Operating Corporation complied, in all material respects, with
the types of compliance requirements referred to above that could have a direct and material effect
on its investment program for the year ended March 31, 2013.
Report on Internal Control over Compliance
Management of RIOC is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered RIOCs internal control over compliance with
the types of requirement that could have a direct and material effect on the investment program to
determine the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for the investment program and to test and report on internal
control over compliance in accordance with Section 201.3 of Title Two of the Official Compilation
of Codes, Rules, and Regulations of the State of New York, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express
an opinion on the effectiveness of RIOCs internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control
over compliance does not allow management or employees, in the normal course of performing
their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement will not
be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal
control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with
governance.
Our consideration of internal control over compliance was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control
over compliance that might be material weaknesses or significant deficiencies. We did not identify
any deficiencies in internal control over compliance that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements
of Section 201.3 of Title Two of the Official Compilation of Codes, Rules, and Regulations of the
State of New York. Accordingly, this report is not suitable for any other purpose.

Elmhurst, New York


May 17, 2013
39

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