TO: ALL SHAREHOLDERS (my notes and observations in red below) FROM : BOARD OF DIRECTORS (Total savings $2.33 per share -12.20% - per share) DATE: JANUARY 23, 2013 (Total savings $2.33 per share $1.25 to you -$1.08 kept by co-op - 6.56% maintenance decrease & 5.7% increase) RE: MAINTENANCE (from $19.05 to $17.80 per share - decrease $1.25 per share - read the nonsense below) It is indeed a Happy New Year. As mentioned in the previous memo, our mortgage loan was successfully refinanced and our monthly mortgage payments are now lower. Although most Co-ops and Condos have had multiple maintenance and/or assessments over the past six years,we have had none.(wrong). In addition, we have been able to do a substantial amount of improvements during this period.
The Board of Directors wants to return a substantial part (.54% to be exact) of the savings on our mortgage payments to the Riveredge shareholders and has voted to decrease the maintenance by $1.25/share beginning in March. This means that your monthly maintenance will decrease by an amount determined by multiplying the number of the shares you own by $1.25. For example: If you have 600 shares (600 x $1.25), your maintenance will be reduced by $750 a year, or $62.50 a month.
The future has many financial uncertainties, looming tax increases, as well as fuel and vendor increases. All these unknowns have been taken into consideration in our decision. We feel we can reduce the maintenance and still cover the anticipated expenses of operation and maintaining the Riveredge and afford future improvements and projects.
We feel exuberant about the new mortgage and the good it will bring to the Riveredge community far into the future.
The Riveredge Board of Directors Glenn Keegan, Les Lew, Karen Gongora, Janet Henry, Nami Kaur, Michale Hertz, Carol Dallinga
At this juncture, we want to reassure you that, as stated last year, we are not anticipating an increase in maintenance or assessment (barring a catastrophe). In addition to the renovation project, we will shortly be renovating the laundry room with new washers and dryers. The laundry room will have approximately 10 new washers, 12 dryers, new floor tile, paint, and sink with ceramic wall flash. This will require the laundry room to be closed for approximately ten business days while the work is being done. Two weeks notice will be given before the project begins. When the renovation project is completed the Storage Room will be converted to sealed storage units. We also plan to paint and tile the B-1 and B-2 hallways. Again, we budgeted for this work and no increase is anticipated. We are fortunate to live n a unique location that is able to offer high quality amenities at minimal or no additional cost to our community.
The Board's fiscal policy is predicated on the fiduciary responsibility of the Board to maintain the integrity of the Riveredge and to be fair to all residents, no matter how long they have resided here. This philosophy promotes a stable financial environment where residents do not have to worry if Riveredge is living hand to mouth, which could result in unexpected assessments.
Our mortgage comes due on January 1, 2013. The mortgage provides for a hefty prepayment penalty and if we had refinanced during this period of low inflation we would have incurred a prepayment penalty of $250,000. The prepayment penalty drops dramatically as of July 1st and we decided to watch interest rates and wait. To our advantage, rates have remained low. With this in mind, if you would like to join a Mortgage Refinance Project, please drop a note in the Board Room box on B-1, with your name, phone and apartment number. We appreciate the expertise of our knowledgeable residents.
Our future is bright and exciting. Stay healthy to enjoy it and be imaginative.
The Riveredge Board of Directors
Hallways before construction Hallways April 2012
Memorandum TO:.... ...All Shareholders Riveredge Owners, Inc FROM:...Steven Librett DATE: ...Aug 1, 2008 Subject: Maintenance Increase from $18.50 to $19.05 per share ($.55) = $46,700 Annually (this generated approx $15,000 from Sept thru Dec 2008, and is called "comprehensive" and "necessary", right , give me a break, this is embarrassing.) The Board of Directors has completed a comprehensive review of the building's operating expenses for 2008 in conjunction with the Accountant (not Shavelson, Neuman & Company LLP per Andrea Braudy) and Management Company. In reviewing the current price of fuel and utilities (gas, electric, and water) along with other necessary expenses, the Board of Directors have determined a 3% maintenance increase effective September 1, 2008 necessary. Along with the above-mentioned increases in expenditures we must also prepare for anticipated increases in property taxes from the City of Yonkers, the Village of Hastings and the County of Westchester, which are respectively a 7.5%, 8.8%, and 23.8% increase from last year. The Board of Directors has made an effort to keep the increase in maintenance to a minimum and will continue to monitor and review operating expenses including heating oil prices, throughout the remainder of the year. However, they want shareholders to understand that another increase may be necessary early 2009 due to the instability in the cost of fuel. While the Board of Directors as fellow shareholders understand that increases are unpleasant and may present a hardship for certain individuals, these actions are unavoidable as operating costs increase. We hope you comprehend the necessity of these increases as we endeavor to protect your investment in Riveredge Owners, Inc. Lastly, we invite you to contact our office with any questions or comments. VOTE COUNT: AGAINST - Peter Merson Apt 8T FOR: - Glenn Keegan, Les Lew, Janet Henry, Karen Gongora, Jane Hand
Dear Fellow Shareholders: The Riveredge Board of Directors* has been closely monitoring Riveredge's operation costs since it adopted the 2006 Budget last November. During the last six months, we have been hit with large increases in energy costs, real estate taxes and insurance that far exceeded our budgetary projections, leaving us with a large budgetary shortfalland no alternative other than to revise the 2006 Budget. The Board of Directors must insure the financial solvency of the Riveredge and maintain the building on a sound financial basis. The Board therefore has decided that it must increase the annual maintenance to $18.50 per share, retroactive to January 1, 2006. This decision is not made lightly. Over the past years, we have kept maintenance increases to a minimum. Operating costs had remained steady and we were aware that the assessment for the facade repair and new roof was a burden on shareholders(The assessment "burden" was $2.25 per share per year from 2002 thru 2006 - if you don't remember - AND - a total of $763,000 was collected). Unfortunately, in the last two years, and especially the last year, operating costs have begun to spiral out of control, due mainly to steep increases in energy costs. These increases have hit us both directly in higher fuel and electricity costs and indirectly in higher costs of goods and services, as well as in real estate tax increases as Yonkers' and Westchester County's costs have risen. Insurance costs have also increased dramatically. The Board considered the option of extending the current assessment or to charge a maintenance surcharge to cover the budget shortfall, but these options do not address the fact that operating costs are an annual cost that will not decrease. Instead, these costs just keep going up.The current assessment was put in place to pay for the facade repair and new roof. It was not meant to be used for ongoing operating expenses. The monies collected are to repay a loan that is due on October 1, 2006. The assessment (burden) is scheduled to finish with the August, 2006 payment and there is no plan to extend the assessment. The retroactive part of the maintenance increase will appear on the May invoice. Shareholders have the option of paying the retroactive increase with the May maintenance, or over two months with a charge of $10. We have attached a financial analysis of the Riveredge's operational costs for your review. The Board will be available in the Lobby on Thursday, April 27, 2006 at 7:00 PM for any questions on the maintenance charge. Thank you. The Riveredge Board of Directors* VOTE COUNT: AGAINST - Peter Merson Apt 8T FOR: - Glenn Keegan, Les Lew, Janet Henry, Karen Gongora, Jane Hand
RIVEREDGE OWERS, INC. 1 David Lane Yonkers, New York 10701
February 28, 2005
Dear Fellow Shareholders: $14.00 to $15.85/share($1.85) The Riveredge Owners Board of Directors approved the 2005 budget for the Building at its February meeting. Due to substantial increases in operating expenses, the funds necessary to operate and maintain the Building are anticipated to be 13.5% higher during 2005. After much discussion and thoughtful consideration, the Board voted to increase maintenance fees in order to balance the budget. Effective as of April 1, 2005, the maintenance will be increased by 13.5% (13.2%) from $14.00 per share to $15.85 per share. We recognize that this is a significant increase. However, it is necessary to cover our escalating operating expenses. In the past year we had the following major increases: Real estate taxes $38,000 Fuel 12,000 Electricity 8,000 Insurance 7,000 Total $65,000 a 41% increase in costs over 2004 Although the Board of Directors has worked diligently to contain the cost of operating the Building, these costs increases are not under our control and for the most part could not be anticipated. Indeed, further increases in the cost of fuel oil and anticipated increases in real estate taxes remain a major concern of the Board. Ensuring the cooperative remains fiscally sound is an obligation that the Board takes seriously. This increase in the maintenance is the minimum amount necessary to bring the budget into balance. Thank you. The Riveredge Board of Directors
The actual memo for this increase is not yet available , but it DID OCCUR. The actual date of this memo is not yet available , but it DID OCCUR. The financial accuracy of this note can be verified via the Audited Annual Financial Statements.
I (Peter Merson) initiated this through the Yonkers Dept of Housing and Buildings, after writing 3 letters to the Riveredge Board of Directors over 3 months requesting it be fixed, and receiving no response.
24 hours after the "Hearing", I got exactly what I had requested three months earlier.