Short notice: finance Q&A this Thursday evening

Management posted last year’s audited financials on Friday. Tonight, via another short email, they announced that this Thursday at 7pm will be a 1-hour “Finance Meeting” in the community room.

FINANCE MEETING
Thursday, March 23, 2017
7PM – 8PM

Building 4 Community Room
477 F.D.R. Drive

If you wish to obtain a copy of our Audited Financial Statement or the Corporation’s budget, they are both posted on our website, and available in the Management office.

It’s no mystery why the board and management don’t want to make a big deal about the newly released financial report — it shows a deficit of $2.3 million, almost a million dollars larger than the unaudited numbers distributed to shareholders just before our annual meeting in December. With a projected deficit of almost $1 million for the current fiscal year, our coop is in perhaps its worst slump since privatization 20 years ago.

The board will almost certainly have to impose a second large maintenance increase this spring, which still won’t cover the deficit from the last two fiscal years.

  • Ruggy Joesten

    If the increase of $1,000 (average) per apartment per year generated $1.7MM in spring of 2016, is it safe to assume an increase of something like $1,300 / year this year with a deficit of 2.3MM? I’m new to he coop, but the trend seems somewhat alarming.

    • The board also has the option to borrow more money, which it has done before in order to keep maintenance low. But one could argue that those one-time infusions, which have no effect on long-term budgets, is what makes the maintenance increases needed now so large.