Operating Budget
The 2008 operating budget was presented to the board and approved at the December board meeting. The budget includes a 5% increase in the monthly assessments with total operating revenues of $261,870. Total operating expenses for 2008 are projected to be $237,500, an approximate increase of $7500 over 2007. The net operating income is projected to be $24,370. Two special expenses are included in the budget. $2,000 to complete the building lobby remodel and $2,500 to repair drains on the roof over the entrance driveway to help eliminate standing water and on the 13th floor to help prevent future flooding in this area. This will leave $19,870 which is designated as a contribution from the operating budget to our reserve funds for 2008. The reserve fund is anticipated to have a closing balance of $254,751 for 2007.
For 2008, in addition to the $19,870 contribution to the reserves from the operating budget, the 3rd year of our special assessment, approximately $111,000, will be added to our reserves beginning in May 2008. Reserve expenses for 2008 are anticipated to be $194,175. These expenses include exterior painting of the building, caulking and upgrading of elevator lighting. The 2008 closing balance of the reserve funds is anticipated to be $200,046 which is slightly under the figure from the original reserve study.