HomeMy WebLinkAboutCS-07-87MEETING: Council
DAIS: JANUARY 26, 1987
REPORT #2
TOWN OF NEWCASTLE
REPORT File #
Res. # -
By -Law #
REPORT #: CS -07 -87 FILE #:.
SUBJECT: ORONO ARMORIES BUDGET 1986/87
RECOMMENDATIONS:
It is respectfully recommended to Council: -
1. That Report CS -07 -87 be received for information.
BACKGROUND AND COMMENTS:
Direction was given to staff to present to Council background information in reference
to the Orono Armories Budget 1986/87 and the related rent increases to Matthews
Insurance Company and the Orono Showcase.
Attached please find the current budget for the Orono Armories building.
It must be noted that the Capital works that has been done in 1985 and 1986 has been
carried in the operating budget.
In 1985 one furnace was replaced to a capital cost of $2,298. and in 1986 the large
garage door was bricked in and a new door was installed to capital cost of $2,470.
Please note that the actual deficit of the facility was $1,983. in 1985. This
prompted the previous C.A.O. to review the rental rates for 1986 with a view to
eliminate the deficit.
../2
Council Meeting
REPORT NO. CS -07 -87
Page 2.
We budgeted a deficit of 425 -for 1986. However, we should come in at only a $4.
deficit for 1986.
With the revised rental rates below the facility will realize a profit in 1987 of
$1,392. based on the proposed budget attached including a capital expenditure of
$1,800. to replace the eavestroughs.
Matthews Insurance
Orono Showcase
TOTAL REVENUE
1986 1987
401 /mo. 421.38/mo.
255/mo. 280 /mo.
TOTAL
% Increase 1987
5% 6,257.
9.8% 3,360.
9,617.
The above does not include capital depreciation or any other long term major capital
renovations.
Respectfully submitted,
Jan Devantier, R.D.M.R.
Director of Community Services
'ohn Blanchard, Treasurer
JD :sa
Attachment
Recommended for presentation
to Council
uawrence L. K s tt
Chief Admini t at've Officer
I
CORPORATION
I
OF THE TOWN OF NEWCASTLE
FUNCTION:
GENERAL GOVERNMENT
(
1986
I
I
CURRENT BUDGET
ACCOUNT DESCRIPTION:
ORONO ARMOURIES
I
I
I
I
Account Number
Description 1985 Budget
1985 Actual
1986 Budget *1986 Actual
1987 Budget]
7026 - 0125 -X -8
Heat
3,400
3,565
3,300
2,988
I
3,300
I 7026 - 0129 -X -4
Hydro
1,300
1,422
1,500
1,601
1,700
7026- 0130 -X -8
Utilities - Water & Sewer
0
72
100
95
100
7026 - 0134 -X -7
Mechanical Maintenance
500
125
525
350
525
7026 - 0172 -X -0
R/M Supplies - Building
700
1,396
800
453
600
7026 - 0254 -X -1
Insurance
150
0
200
0
200
7026- 0501 -X -2
B1dg.Const. /Renovations
2,500
25298
1,900
2,470
1,800
I
I
Total Expenditures
8,725
8,878
8,325
7,957
8, 225 I
6510 -X- 00002 -0
Rental Revenue
7,284
6,895
7,900
7,953
9,617
Net Operating Costs (surplus)
1,441
1, 983
425
4
(1,392) �
* PROJECTED ACTUAL
0
TO:
FROM:
DATE:
SUBJECT:
tJ p
TOWN OF NEWCASTLE
WARANDUM
454
Lou Ann Birkett, Purchasing and Supply Agent
Jan Devantier, R.D.M.R., Director of Community Services
December 5, 1986
LEASE AGREEMENT
ORONO CO- OPERATIVE SHOWCASE
In reference to your phone call today regarding the lease renewal of the
Orono Armories to the Orono Showcase,. I have the following comments:
The rental rate charged to the two tenants do not cover the yearly
operating costs (the approximate deficit is $500. per year).
The rental rate to the Orono Co- operative Showcase is $255. per month
($3,060.annually) for the use of 2,856 sq. ft. This works out to $1.07
per sq. ft. Below are some comparative rental rates (1986 rates).
Durham Regional Police $10.68 /sq. ft.
Ministry of Government Service $ 6.00 /sq. ft.
Matthew and Associates $ 7.70 /sq. ft.
Standard Commercial office /store space $10- 15 /sq. ft.
If we raise the rent to $280. /month (9.8 %) the increased revenues from
the Insurance Company and the Showcase should allow for a break even
operating budget.
It again demonstrates the need to evaluate the long term use of this
facility.
It is therefore proposed that the Orono Showcase lease be increased from
$255. /month to $280. /month from Jan. 1 - Dec. 31, 1987. This represents
a 9.8% increase and gives an annual rental fee of $1.18 /sq.ft.
JD:sa
cc: J. Blanchard, Treasurer