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
Page 1
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).

Page 2
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
Page 3
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 market-
rate 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 ..."

Page 4
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

Page 5
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) Report from RIRA Government

Relations Committee
Ashton Barfield (Chair) Margie Smith's involvement in
Erin Feely-Nahem legislative lobbying is
Russell Fields recorded below
Sherie Helstien
Matthew Katz
Ellen Polivy

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 far-
reaching 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-year-
November Common Council elections.

Ashton Barfield
April 30, 2010
 MINUTES OF THE DECEMBER 15, 2010 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 December 15, 2010 at 5:30
p.m. 1 Excerpt from of December 2010
Roosevelt Island
Operating Corporation RIOC Board meeting minutes
of the State of New York Directors Present:
591 Main Street
Roosevelt Island, NY 10044 Brian Lawlor RIOC Chair and Commissioner, the New
(212) 832-4540 York State Division of Housing and Community
rioc.ny.gov
Renewal (DHCR)
Andrew M. Cuomo Meghan Anderson Representing Robert L. Megna, Director, the New
Governor
York State Division of Budget (NYS DOB)
Leslie Torres Fay Fryer Christian Director
President
Chief Executive Officer Dr. Katherine Teets Grimm Director
Jonathan Kalkin Director
Fernando Martinez
Vice President David Kraut Director
Operations Howard Polivy Director
Kenneth A. Leitner
Margaret Smith Director
Vice President
General Counsel
Directors Absent:
Steven Chironis Michael Shinozaki Director
Vice President
Chief Financial Officer
Officers and Staff Attending:
Board of Directors
Brian Lawlor Leslie Torres President/Chief Executive Officer
Chairperson Kenneth A. Leitner Vice President/General Counsel
Fay Fryer Christian
Katherine Teets Grimm Fernando Martinez Vice President for Operations
Jonathan Kalkin Steven Chironis Vice President/Chief Financial Officer
David Kraut
Robert L. Megna Arthur G. Eliav Assistant General Counsel
Howard Polivy Muneshwar Jagdharry Comptroller
Michael Shinozaki
Margaret Smith
Lada Mirzalieva Paralegal
Alexander Snedkov Director of Engineering Department/Incoming
Thomas Turcic Director of Engineering Department/Outgoing

Others Attending:
Robert Atterbury Assistant, New York State Assembly Member Micah
Z. Kellner
Armando Cordova Aerial Tramway Manager, Leitner-Poma of America,
Inc.
Matthew Katz President, Roosevelt Island Residents Association
(RIRA)

1
The RIOC Board Meeting commenced following a public comment period, which was not part of the
RIOC Board Meeting.

1
 1 Section 3. that this resolution shall take effect immediately.
2
3 *
4
5 Mr. Lawlor noted that a new item, the authorization regarding the extension of the
6 Rivercross ground lease and transmission of explanatory statement, has been added to the
7 agenda. Although the item was marked as number seven, Mr. Lawlor suggested discussing this
8 item prior to the sixth item of new business.
9
10 Ms. Torres provided a brief background of the Rivercross ground lease. She informed
11 the Board that last week there were more negotiations with the representatives of the Rivercross
12 residents regarding their desire for a ground lease extension in order to refinance its existing
13 mortgage. According to Ms. Torres, RIOC is currently negotiating a proposal, which envisions
14 Rivercross remaining a Mitchell-Lama project. Rivercross tenant association wants to refinance
15 their buildings existing mortgage to make major capital improvements to the building. Ms.
16 Torres asked for the approval of the proposed resolution to allow the Rivercross tenants to secure
17 refinancing before the currently favorable interest rates go up and the opportunity is lost.
18
19 In response to Ms. Smiths question, Mr. Leitner explained that the resolution currently
20 before the Board contemplates the preparation of an extension of the ground lease to enable
21 Rivercross to remain a Mitchell-Lama project. He noted that the proposed resolution facilitates
22 the Rivercross residents efforts in two ways: (1) it allows for the preparation of a reasonable
23 lease extension sufficient to obtain refinancing commitments from a lender; and (2) it authorized
24 the Corporation to send out an explanatory statement required under the Public Authority Law to
25 expedite the process of legal compliance.
26
27 In response to Mr. Krauts question, Mr. Leitner explained that the next step would be for
28 Rivercross representatives to come to RIOC with a specific proposal containing the terms and
29 conditions of an actual refinance offer from a lender. Mr. Lawlor noted that any lease extension
30 to be signed will be consistent with the terms of the proposed resolution, including a 3% rent
31 increase and no increase in the tax equivalency payments. Mr. Leitner also noted that the
32 remaining terms of the lease extension would be negotiated and summarized into a term-sheet.
33 Furthermore, an appraisal would be prepared. Once the term-sheet and the appraisal are
34 finalized, a comprehensive deal would be brought back before the Board for a final
35 authorization, pursuant to the Public Authorities Law.
36
37 Mr. Kalkin noted that the extension of the Rivercross ground lease is a matter where time
38 is of the essence. However, he also noted that it has been a process that has been reviewed by
39 the Real Estate Development Advisory Committee (REDAC) and is not a last minute deal. In
40 turn, Mr. Kraut stated that while the time might be of the essence for Rivercross, it is not
41 necessarily so for RIOC. He also noted that REDAC has not voted on this matter. Nevertheless,
42 Mr. Kraut stated that he will vote for the measure because he would like for his neighbors in
43 Rivercross to improve their building. He also stated that he would hope to see, in any future
44 deals, that Rivercross and other WIRE buildings contribute to RIOC and Roosevelt Island in a
45 way that is similar to Eastwood and the other projects on the Island.
46

7
 1 Upon a motion duly made, seconded and carried by a unanimous vote in favor (Mr.
2 Lawlor, Ms. Anderson, Ms. Christian, Dr. Grimm, Mr. Kalkin, Mr. Kraut, Mr. Polivy and Ms.
3 Smith), the following resolution was ADOPTED:
4
5 RESOLUTION
6
7 AUTHORIZATION REGARDING EXTENSION OF RIVERCROSS GROUND LEASE AND
8 TRANSMISSION OF EXPLANATORY STATEMENT
9 _____________________________________________________________________________
10 WHEREAS, Rivercross Tenants Corp. (Rivercross) is the lessee under a
11 Ground Lease from the New York State Urban Development Corporation (UDC), as amended
12 and restated November 30, 1977 (the Ground Lease); and
13 WHEREAS, UDC's interest in the Ground Lease has been assigned to RIOC; and
14 WHEREAS, Rivercross wishes to refinance the mortgage on its property in order to
15 raise funds for necessary capital improvements and to keep the project in the Mitchell-Lama
16 program, and, in order to do so, needs to extend the term of the Ground Lease, which currently
17 expires in 2028;
18 now, therefore be it
19 RESOLVED, that the President of RIOC be, and she hereby is, authorized and
20 directed to cause an extension of the Ground Lease to be prepared reflecting, that so long as
21 Rivercross continues in the Mitchell-Lama program (i) the term of the Ground Lease shall be
22 extended for an additional term of years sufficient to facilitate the proposed refinancing by
23 Rivercross, (ii) the Base Ground Rent payable to RIOC shall continue at the current level of
24 $2,624.48 per month, escalating 3% as of January 1, 2012, and cumulatively thereafter on each
25 anniversary of such date during the term,(iii) the Tax Equivalent Payments to the ESDC shall
26 continue to be determined under the "Shelter Rent" formula in accordance with the letter
27 between Rivercross and ESDC dated February 5, 2008, and (iv) and containing such other terms
28 as are mutually satisfactory to both parties, and in compliance with the terms of the Public
29 Authorities Law; and be it further
30 RESOLVED, that the President be, and she hereby is, authorized to cause an
31 explanatory statement of the proposed transaction to be prepared and transmitted to those parties
32 entitled to receive such a statement under the Public Authorities Law; and be it further
33 RESOLVED, that the President/Chief Executive Officer or her designee be, and she
34 hereby is, authorized and directed to take such further actions and execute such further
35 documents as are necessary or desirable to effectuate the foregoing; and be it further
36 RESOLVED, that these resolutions shall take effect immediately.
37
38 *
39
40 The sixth item of new business was the presentation of the FY 2010-2011 QTR 2
41 procurement report.
42

8
 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 Directors Present:
of the State of New York Garry Connor Representing Brian Lawlor, RIOC Chair and
591 Main Street
Roosevelt Island, NY 10044 Commissioner, the New York State Division of
(212) 832-4540 Housing and Community Renewal (DHCR)
rioc.ny.gov
Fay Fryer Christian Director
Andrew M. Cuomo
2
Dr. Katherine Teets Grimm Director Excerpt from of January 2011
Governor
Jonathan Kalkin Director RIOC Board meeting minutes
Leslie Torres David Kraut Director
President
Chief Executive Officer Howard Polivy Director
Michael Shinozaki Director
Fernando Martinez
Vice President Margaret Smith Director
Operations

Kenneth A. Leitner Directors Absent

Vice President Robert L. Megna Director, the New York State Division of Budget
General Counsel
(NYS DOB)
Steven Chironis
Vice President
Chief Financial Officer Officers and Staff Attending:
Leslie Torres President/Chief Executive Officer
Board of Directors
Brian Lawlor Kenneth A. Leitner Vice President/General Counsel
Chairperson Fernando Martinez Vice President of Operations
Fay Fryer Christian
Katherine Teets Grimm Steven Chironis Vice President/Chief Financial Officer
Jonathan Kalkin Arthur G. Eliav Assistant General Counsel
David Kraut
Robert L. Megna Muneshwar Jagdharry Comptroller
Howard Polivy William Yang Legal Intern
Michael Shinozaki
Margaret Smith
Others Attending:
Robert Atterbury Assistant, New York State Assembly Member Micah
Z. Kellner

1
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.
 1
2 February 23, 2011 at 5:30 p.m.
3 April 6, 2011 at 5:30 p.m.
4 May 18, 2011 at 5:30 p.m.
5 June 29, 2011 at 5:30 p.m.
6 August 3, 2011 at 5:30 p.m.
7 September 21, 2011 at 5:30 p.m.
8 November 9, 2011 at 5:30 p.m.
9 December 14, 2011 at 5:30 p.m.
10
11 Section 2. that the Secretary is hereby authorized, upon the request of the
12 Chairperson or upon the request of three (3) or more of the Directors to the
13 Secretary, to cancel or reschedule any regular meetings of the Board of
14 Directors previously authorized by the Board of Directors, and to provide
15 written notice of the cancellation, if personally or by telefacsimile, at least
16 72 hours prior to the authorized regular meeting date, or if by mail, at least
17 ten days prior thereto, in accordance with the provisions of Article III,
18 Section 2 of the By-Laws; and
19
20 Section 3. that this resolution supplements and amends the resolution adopted on
21 December 15, 2010, which resolution, as supplemented and amended, is
22 hereby ratified and confirmed, effective immediately.
23
24 *
25
26 The eighth item of new business was the presentation of the FY 2010-2011 QTR 3
27 procurement report.
28
29 Mr. Jagdharry briefly outlined the highlights of the third quarter procurement report.
30
31 Ms. Smith requested a more detailed report on the expenses from the Tram opening
32 event, including the cost of the scarves that were given out, as well as the media relations
33 contract. Furthermore, she requested to receive more information on the costs of benches and
34 waste receptacles across the Island. Mr. Jagdharry stated that the requested materials will be
35 provided to the Board.
36
37 *
38
39 Mr. Connor noted that Ms. Torres requested to reopen the Presidents Report. Ms. Torres
40 stated that the negotiations over Rivercross were recently completed, and that certain documents
41 were previously distributed to the Board including: (1) the proposed resolution authorizing RIOC
42 to enter into an extension of the ground lease and related documents; (2) term sheet; (3)
43 supporting memorandum from Jones Lang LaSalle; (4) financial analysis by Jones Lang LaSalle;
44 and (5) an appraisal. Therefore, Ms. Torres inquired whether there is a Board consensus to add
45 this item to the meetings agenda.
46

8
 1 Upon a motion duly made, seconded and carried by a unanimous vote in favor (Mr.
2 Connor, Ms. Christian, Dr. Grimm, Mr. Kalkin, Mr. Kraut, Mr. Polivy, Mr. Shinozaki, and Ms.
3 Smith), the proposed resolution authorizing RIOC to enter into an extension of the ground lease
4 and related documents was added to the agenda of this Board meeting.
5
6 In response to Ms. Smiths question, Ms. Torres stated that the present resolution is in
7 furtherance of the previous resolution on this matter, which was approved at the last Board
8 meeting. As such, now that the terms had been negotiated, an approval package is being
9 presented to the Board. In response to Mr. Krauts question, Mr. Leitner noted that, under the
10 proposed agreement, as stated in term sheet item nine, the base ground rent paid to the Empire
11 State Development Corporation (ESDC) would remain the same, while the amount paid to
12 RIOC will increase by 4% compounded annually. Mr. Shinozaki noted that the entire buildings
13 rent is less than that of some individual residential units in other buildings on Roosevelt Island.
14 Mr. Kalkin noted that the low rent was consistent with the purpose of Mitchell-Llama properties
15 to create and preserve affordable housing.
16
17 In response to Mr. Shinozakis inquiry, Mr. Leitner explained that there were two parts to
18 the resolution. The first part contains or refers to the materials that the Board is required to
19 review, as well as to the approvals and findings that need to be made in compliance with the
20 Public Authorities Law (PAL). The second part of the resolution gives the authorization for
21 the President to negotiate and enter into the various agreements contemplated by the term sheet.
22 Further responding to Mr. Shinozakis inquiry, Mr. Leitner noted that unless there was a
23 significant and material change to the terms of the term sheet, this is the final time this matter
24 would come for Board approval. He also noted that the purpose of the ground lease extension
25 was to assist Rivercross to refinance its existing mortgage and make repairs to the building. In
26 response to Mr. Krauts inquiry, Mr. Chironis stated he is confident in Jones Lang LaSalles
27 ability to deliver competent service.
28
29 Upon a motion duly made, seconded and carried by a vote of seven in favor (Mr. Connor,
30 Ms. Christian, Dr. Grimm, Mr. Kalkin, Mr. Kraut, Mr. Polivy, and Ms. Smith) and one opposed
31 (Mr. Shinozaki), the following resolution was ADOPTED.
32
33 RESOLUTION
34
35 AUTHORIZATION TO EXTEND GROUND LEASE
36 WITH RIVERCROSS TENANTS CORP.
37 AND ENTER INTO RELATED AGREEMENTS
38
39
40 WHEREAS, Rivercross Tenants Corp. (Rivercross), is the lessee under a Ground
41 Lease, from the New York State Urban Development Corporation (UDC), as amended and
42 restated November 30, 1977 (the Ground Lease); and
43
44 WHEREAS, UDC's interest in the Ground Lease has been assigned to RIOC; and
45

9
 1 WHEREAS, Rivercross wishes to refinance the mortgage on its property in order to raise
2 funds for necessary capital improvements and to keep the project in the Mitchell-Lama program,
3 and, in order to do so, needs to extend the term of the Ground Lease, which currently expires in
4 2028; and
5
6 WHEREAS, by resolution of the Board of Directors of RIOC dated December 15, 2010,
7 the President of RIOC was authorized and directed to take such steps to negotiate an appropriate
8 amendment and extension of the Ground Lease on terms mutually satisfactory to both parties,
9 and in compliance with the terms of the Public Authorities Law, and to cause an explanatory
10 statement of the proposed transaction to be prepared and transmitted to those parties entitled to
11 receive same under the Public Authorities Law; and
12
13 WHEREAS, an explanatory statement was forwarded to such parties on December 17,
14 2010; and
15
16 WHEREAS, in conjunction with the extension of the Ground Lease, the parties also
17 intend to: (i) extend the term of the sublease to RIOC of the commercial space in the building
18 (the "Sublease"), (ii) provide for the continued payment of the Public Service Safety Fee during
19 the extended term, and (iii) provide for the reimbursement to RIOC of the expenses it will incur
20 in connection with these transactions; and
21
22 WHEREAS, RIOC's real estate advisor, Jones Lang LaSalle, prepared a (i) term sheet
23 dated January 16, 2011 setting forth the terms of the above-referenced agreements, a copy of
24 which is annexed to this Resolution, and (ii) a memorandum dated January 16, 2011 in support
25 of this transaction, which was distributed to the members of the Board of Directors of RIOC; and
26
27 WHEREAS, RIOC obtained an appraisal for this transaction, a copy of which has been
28 distributed to the members of the Board of Directors of RIOC;
29
30 NOW, THEREFORE, The Board of Directors finds and resolves as follows:
31
32 RESOLVED, that the Board finds as follows:
33
34 Section 1. that the extension of the term of the Ground Lease is necessary in order to
35 allow Rivercross to refinance its existing mortgage in order to take
36 advantage of the low interest rates currently available in the market, while
37 still remaining in the Mitchell-Lama program, thereby enhancing
38 affordability for all its residents;
39
40 Section 2. the proceeds of the refinancing will permit Rivercross to perform major
41 capital improvements to the 35 year old building, including many
42 improvements which will increase energy efficiency, resulting to further
43 cost efficiencies;
44

10
 1 Section 3. the result of these actions will help RIOC maintain high quality, affordable
2 housing stock on Roosevelt Island, which is within the mission and
3 statutory purposes of RIOC;
4
5 Section 4. since Rivercross has a leasehold interest in the Property, there is no
6 reasonable alternative to this transaction which would achieve the same
7 purpose;
8
9 and be it further
10
11 RESOLVED, that the President of RIOC be, and she hereby is, authorized and directed
12 to negotiate and enter into, in compliance with the terms of the Public Authorities Law, an
13 appropriate amendment and extension of the Ground Lease, an amendment and extension of the
14 Sublease of the commercial space, an agreement regarding payment of the Public Safety Service
15 Fee during the extended term, and a reimbursement agreement, all substantially on the terms and
16 conditions set forth in the attached term sheet; and be it further
17
18 RESOLVED, that the President/Chief Executive Officer or her designee be, and she
19 hereby is, authorized and directed to take such further actions and execute such further
20 documents as are necessary or desirable to effectuate the foregoing; and be it further
21
22 RESOLVED, that these resolutions shall take effect immediately.
23
24 *
25
26 COMMITTEE REPORTS
27
28 AUDIT COMMITTEE
29
30 Mr. Kraut stated that the Audit Committee did not meet.
31
32 GOVERNANCE COMMITTEE
33
34 Mr. Kraut stated that the Governance Committee did not meet.
35
36 OPERATIONS ADVISORY COMMITTEE
37
38 Mr. Kalkin reminded the Board that the Operations Advisory Committee last met on
39 December 9, 2010. Mr. Kalkin noted that, among other topics discussed, the Committee went
40 over the bus schedule, the LED lighting fixtures, the parking sensor pilot program, the possible
41 charging station at Motorgate, and the ferry dock service. He also announced that RIOC is now a
42 part of the Clean Cities project, which entails a non-binding commitment to certain
43 environmental protection policies.
44
45 REAL ESTATE DEVELOPMENT ADVISORY COMMITTEE
46

11
Rivercross Ground Lease Extension,
see paragraphs 4, 5, and 6. 3/28/11
AMENDMENT #1 TO RESTATED GROUND LEASE

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 Mitchell-
Lama 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-Mitchell-
Lama 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
3
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

4
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

5
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]

6
 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

7
 5TATEOF _ _ _ _ _ _ _ _ _ __
55:
COUNTY OF _ _ _ _ _-'---_ _

One the2 q ~ay of in the year 2011, before me, the undersigned,
personally appeared 5 / ie T t _~ , 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
~~I.Iil~
. . '~
! No'"", PubJlc, Slate of New York i
i No.01SE6137114 ! .

"
i Qualified In Queens coun!&J No Pic
L. ..!.f!,~T...~~p.![.~~.~~~~T..~~~..~.~: ..........;

5T ATE OF _~,---eL0_-'-Y_oa_K____
55:
COUNTY OF NevJ~oR K
------~-----------

~ ,

One the '29 day of (%i(ch in the year 2011, before me, the undersigned,
personally appeared 5levt n S KQu.. f~c\ ,'-I , 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.

:.................... ,.".,"' U.,f'I._III.,ull n.' .........!

i

!
i
ELIZABETH SENelON I
i Notary Public. State of New York !
i NO.01SE6137114
Qualified In Queens Coun~ .,
Term Expires November 14J~
..J
1
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
1;a1!Jh!illk
ary I2-t:Jblic V

8
 Excerpt from Island House
Ground Lease Extension,
16. Miscellaneous. See Clause 20, below.
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.

-23-
7051879.9
 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 non-
residential 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.

-24-
7051879.9
 Excerpt from Southtown 5 (415 Main)
ARTICLE 40 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. Landlord agrees that its

142
 collection processes for such charges shall be non-discriminatory. Landlord

acknowledges that it provides Island Services 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 for the providing of such

services. 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 one-

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

constitute Rental hereunder. Thereafter, for .each Lease Year, such trust or other entity shall submit to

Tenant the documentation 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
 see page 15, Budget Risks
RIOC Approved Budget, 2013-2014
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 1

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 Board of Directors
Governor Darryl C. Towns, Chairperson
Fay Fryer Christian
Donald D. Lewis Dr. Salvatore Ferrera
Acting President/Chief Executive Officer Dr. Katherine Teets Grimm
Vice President/General Counsel David Kraut
Roosevelt Island Operating Corporation Robert L. Megna
Steven Chironis of the State of New York Howard Polivy
591 Main Street, Roosevelt Island, NY 10044
Vice President/Chief Financial Officer Michael Shinozaki
T: (212) 832-4540 F: (212) 832-4582
http://rioc.ny.gov 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) (258,740) (170,326) (250,000) (250,000)

Net Operating Income (Before Depreciation): $1,705520 $2,517,012 $1,894,429 $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:

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

Page 2
 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:

Projected Approved
Actual Actual Actual Actual Actual Budget
2009 2010 2011 2012 2013 2014
Net Loss: ($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 3
 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 4
 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 re-
pointing 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 5
 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 6
 Roosevelt Island Operating Corp.
Projected Actual FY 2013 Compared to Approved Budget FY 2013

Projected Approved Variance

Actual Budget Favorable Variance
2013 2013 (Unfavorable) % Change Notes
Revenues:
Residential Fees $1,140,000 $1,239,509 ($99,509) -8% ST 7-9 Development fees ($96,000) deferred
Ground Rent $9,389,000 $9,453,000 ($64,000) -1% Manhattan Park Participation Rent ($64,000) less than budgeted
Commercial Rent $1,437,000 $1,437,000 $0 0%
Tramway Revenue $4,547,000 $4,147,000 $400,000 10% Projected ridership up 10% over amount budgeted
Public Safety Reimbursement $1,650,000 $1,662,000 ($12,000) -1%
Transport/Parking Revenue $2,601,000 $2,691,000 ($90,000) -3% Senior discounts
Interest Income $181,500 $291,000 ($109,500) -38% Interest rates below amount budgeted
Other Revenue $794,000 $703,000 $91,000 13% Field rental & Sportspark Fees above budget
Total Revenues: $21,739,500 $21,623,509 $115,991 1%

Expenses:
Personal Expenses:
Salary Expense $6,820,000 $6,782,486 ($37,514) -1% Union paid vacations more than budgeted
Fringe Benefits $3,247,314 $3,331,228 $83,914 3% One-time pension costs of $250,000 for early retirement
Total Personal Expenses: $10,067,314 $10,113,714 $46,400 0.5%

Other Than Personal Expenses (OTPS)

Insurance $1,150,000 $1,150,000 $0 0%
Professional Services $480,400 $320,900 ($159,500) -50% Island House R.E. Advisory Fees ($100K), Eng.Consultant ($32K)
Marketing/Advertising $23,400 $17,400 ($6,000) -34% Promotional Island Advertising
Management Fees $4,100,000 $4,077,200 ($22,800) -1% POMA bonding fee not budgeted
Legal Fees $250,000 $200,000 ($50,000) -25% Island House legal fees
Telecommunications $125,000 $107,100 ($17,900) -17% Upgrade Data lines
Repairs & Maintenance $402,200 $402,200 $0 0%
Repairs & Maintenance - Equipment $25,200 $25,200 $0 0%
Trees/Shrubs & Sod $105,000 $105,000 $0 0%
Vehicle Gas $168,300 $168,300 $0 0%
Vehicle Repairs & Maintenance $83,600 $83,600 $0 0%
Vehicle Parts $37,200 $37,200 $0 0%

Page 7
 Roosevelt Island Operating Corp.
Projected Actual FY 2013 Compared to Approved Budget FY 2013

Projected Approved Variance

Actual Budget Favorable Variance
2013 2013 (Unfavorable) % Change Notes
Equipment Leased $16,400 $16,400 $0 0%
Office Equipment $19,800 $19,800 $0 0%
Equipment & Tools $53,600 $53,600 $0 0%
Computer Software & Equipment $18,000 $18,000 $0 0%
Exterminating $17,100 $17,100 $0 0%
Uniforms $66,950 $66,950 $0 0%
Light, Power & Heat $612,000 $588,000 ($24,000) -4% Underbudgeted Tramway
Water & Sewer $8,600 $8,600 $0 0%
Office Supplies $17,100 $17,100 $0 0%
Parts & Supplies $210,700 $210,700 $0 0%
Service Maintenance $70,500 $70,500 $0 0%
Employee Travel & Meals $17,500 $17,500 $0 0%
Employee Training $56,400 $56,400 $0 0%
Postage & Shipping $13,400 $13,400 $0 0%
Dues & Subscriptions $15,700 $15,700 $0 0%
Island Events $85,000 $85,000 $0 0%
Other Expenses $338,200 $338,200 $0 0%
Total (OTPS) $8,587,250 $8,307,050 ($280,200) -3%

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%

Net Income (Loss) - After Depreciation ($492,064) ($374,255) ($117,809) -31%

Page 8
 Roosevelt Island Operating Corp.
Approved Budget FY 2014
Approved Budget FY 2013 Compared to Approved Budget FY 2014

Approved Approved Variance

Budget Budget Favorable Variance
2013 2014 (Unfavorable) % Change Notes
Revenues:
Residential Fees $1,239,509 $1,028,000 ($211,509) -17.06% Southtown 7,8,&9 Dev. Fees Deferred
Ground Rent $9,453,000 $10,057,000 $604,000 6.39% Escallation increases plus ST#7 50% rent until completion
Commercial Rent $1,437,000 $1,466,000 $29,000 2.02% Escalation Child School & Hudson/Related Guaranteed Income
Tramway Revenue $4,147,000 $4,350,000 $203,000 4.90% Projected Ridership increase of 5%
Public Safety Reimbursement $1,662,000 $1,712,000 $50,000 3.01% Escallation increases
Transport/Parking Revenue $2,691,000 $2,745,000 $54,000 2.01% Increase in Parking Usage
Interest Income $291,000 $211,000 ($80,000) -27.49% Reduction in Capital Invested
Other Revenue $703,000 $754,000 $51,000 7.25% Increase Sportspark Fees ($100K) & Field Rental Fees ($35K)
Total Revenues: $21,623,509 $22,323,000 $699,491 3.23%

Expenses:
Personal Expenses:
Salary Expense $6,782,486 $6,911,694 ($129,208) -1.91% New Approved Engineering Position plus 3 new part timers
Fringe Benefits $3,331,228 $3,489,871 ($158,643) -4.76% Increase Health Insurance ($57K), Pension Costs ( $85K)
Total Personal Expenses: $10,113,714 $10,401,565 ($287,851) -2.85%

Other Than Personal Expenses (OTPS)

Insurance $1,150,000 $1,200,000 ($50,000) -4.35% Increase Property Coverages
Professional Services $320,900 $478,000 ($157,100) -48.96% RE Advisory Services ST#7, Westview & Rivercross
Marketing/Advertising $17,400 $29,000 ($11,600) -66.67% Increase for Promoting Southpoint & FDR Memorial
Management Fees $4,077,200 $4,102,000 ($24,800) -0.61% POMA Bonding Fee
Legal Fees $200,000 $375,000 ($175,000) -87.50% Increase for Westview, Rivercross, Steamplant & Cornell
Telecommunications $107,100 $125,000 ($17,900) -16.71% Increase in Internet Data Lines
Commercial Space rent $0 $12,000 ($12,000) Rent for Engineering Office
Repairs & Maintenance $402,200 $413,000 ($10,800) -2.69% Tramway Elevator
Repairs & Maintenance - Equipment $25,200 $28,000 ($2,800) -11.11% Bus Equipment
Trees/Shrubs & Sod $105,000 $120,000 ($15,000) -14.29% Increase for Southpoint Maintenance
Vehicle Gas $168,300 $167,000 $1,300 0.77%
Vehicle Repairs & Maintenance $83,600 $81,000 $2,600 3.11%
Vehicle Parts $37,200 $57,000 ($19,800) -53.23% Increase for Bus Parts
Equipment Leased $16,400 $24,000 ($7,600) -46.34% Leasing Smart Parking Meter Fees

Page 9
 Roosevelt Island Operating Corp.
Approved Budget FY 2014
Approved Budget FY 2013 Compared to Approved Budget FY 2014

Approved Approved Variance

Budget Budget Favorable Variance
2013 2014 (Unfavorable) % Change Notes
Office Equipment $19,800 $20,000 ($200) -1.01%
Equipment & Tools $53,600 $60,000 ($6,400) -11.94%
Computer Software & Equipment $18,000 $12,000 $6,000 33.33%
Exterminating $17,100 $17,000 $100 0.58%
Uniforms $66,950 $68,000 ($1,050) -1.57%
Light, Power & Heat $588,000 $642,000 ($54,000) -9.18% Increase Tram Electric
Water & Sewer $8,600 $12,000 ($3,400) -39.53% Riverwalk Commons Submetering
Office Supplies $17,100 $19,000 ($1,900) -11.11%
Parts & Supplies $210,700 $212,000 ($1,300) -0.62%
Service Maintenance $70,500 $80,000 ($9,500) -13.48% Data Management ($4k), Next Bus ($5k)
Employee Travel & Meals $17,500 $3,200 $14,300 81.71%
Employee Training $56,400 $64,400 ($8,000) -14.18% Grounds - Horticultural ($4K), Sportspark CPO Training ($4K)
Shipping $13,400 $11,000 $2,400 17.91%
Dues & Subscriptions $15,700 $8,400 $7,300 46.50%
Island Events $85,000 $85,000 $0 0.00%
Other Expenses $63,200 $56,000 $7,200 11.39%
Public Purpose Grants $275,000 $275,000 $0 0.00%
Total (OTPS) $8,307,050 $8,856,000 ($548,950) -6.61%

Total Expenses: (Before Depreciation) $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%

Net Income (Loss) - After Depreciation ($374,255) ($583,565) ($209,310) -55.93%

Page 10
 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
Ground rent $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
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
Interest Income $30,000 $30,000 $0 $0 $0 $0 $0 $1,000 $30,000 $150,000 $211,000
Other Revenue $754,000 $156,000 $0 $0 $0 $598,000 $0 $0 $0 $0 $754,000
Total Revenue $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
Expenses
Personal Services (PS) :
Salaries $6,736,694 $3,354,138 $1,951,483 $879,758 $0 $551,315 $0 $0 $0 $0 $6,736,694
Temporary Employees $175,000 $135,000 $16,000 $0 $0 $24,000 $0 $0 $0 $0 $175,000
Employee Benefits $3,489,871 $2,161,932 $757,767 $362,457 $0 $207,715 $0 $0 $0 $0 $3,489,871
Total Personal Services (PS) $10,401,565 $5,651,070 $2,725,250 $1,242,215 $0 $783,030 $0 $0 $0 $0 $10,401,565
Other Than Personal Services (OTPS) :
Insurance $1,200,000 $1,050,000 $0 $0 $0 $0 $150,000 $0 $0 $0 $1,200,000
Professional Services $507,000 $440,000 $0 $0 $0 $67,000 $0 $0 $0 $0 $507,000
Management Fees $4,102,000 $0 $0 $0 $660,000 $0 $3,442,000 $0 $0 $0 $4,102,000
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
Supplies/ Services $1,050,000 $532,900 $114,000 $47,300 $80,500 $122,300 $153,000 $0 $0 $0 $1,050,000
Other Expenses $228,000 $107,400 $24,600 $8,500 $0 $87,500 $0 $0 $0 $0 $228,000
Public Purpose Grants $0 $0 $0 $0 $0 $0 $0 $275,000 $0 $0 $275,000

Total Other Than Personal Services (OTPS) $8,581,000 $3,220,300 $196,600 $304,800 $746,500 $329,800 $3,783,000 $275,000 $0 $0 $8,856,000

Total Expenses $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

NET INCOME (LOSS) BEFORE DEPRECIATION $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
Depreciation Expenses $0 $0 $0 $0 $0 $0 $0 $0 $3,649,000 $0 $3,649,000
NET INCOME (LOSS) AFTER DEPRECIATION $2,740,435 $3,446,630 ($1,209,850) ($1,051,015) $1,502,500 ($514,830) $567,000 ($274,000) ($3,402,000) $352,000 ($583,565)

Page 11
 Roosevelt Island Operating Corp.
Approved FY Budget 2014 - 15 Yr Cash Flow Projection (In Thousands)

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

2014 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
TOTAL EXPENDITURES: $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)

ADD: PV PAYMENTS (DEFERRED REVENUE) $10,050 $12,000 $13,440

CASH AVAILABLE FOR CAPITAL PROJECTS $44,724 $24,616 $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

CAPITAL PROJECT EXPENDITURES $22,801 $18,637 $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

CASH BALANCE: 03/31 $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 $68,561

Page 12
 The Roosevelt Island Operating Corporation (RIOC)
CAPITAL IMPROVEMENTS 2013/2014 (In Thousands)

5% inflation rate

Approved Projected Approved Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Budgets
Budget Actual Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2013 - 2027
2013 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total
1 Sports Fields/Parks $420 $300 $435 $631 $347 $365 $383 $402 $422 $443 $465 $489 $513 $539 $566 $594 $624 $7,217
Octagon Park - Comfort Station Rehab $60 $60 $60
Octagon Park - Tennis Court Resurfacing $60 $60 $60
Mediation Steps $300 $0
504 Main Childrens Park $300 $300
Miscellaneous Upgrades & Improvements - Reserve $300 $315 $331 $347 $365 $383 $402 $422 $443 $465 $489 $513 $539 $566 $594 $624 $6,797
2 Historic & Landmark Structures $1,670 $900 $1,280 $910 $221 $232 $243 $255 $268 $281 $295 $310 $326 $342 $359 $377 $396 $6,096
Blackwell House Interior renovation $800 $800 $800
Good Shepherd - HVAC $300 $0
Good Shepherd - Roof Replacement $300 $600 $0
Good Shepherd - Faade Repointing $100 $100
Good Shepherd - Interior Repairs/Doors $100 $100 $100
Good Shepherd - Alarm System $80 $80 $80
Blackwell Lighthouse Restoration $350 $700 $700
Old Tram Cabins Restoration $40 $0
Miscellaneous Upgrades & Improvements - Reserve $200 $210 $221 $232 $243 $255 $268 $281 $295 $310 $326 $342 $359 $377 $396 $4,316
3 Infrastructure Improvements $4,525 $980 $10,495 $14,120 $5,246 $1,783 $2,822 $1,913 $2,009 $2,109 $2,215 $2,326 $2,442 $2,564 $2,692 $2,827 $2,968 $58,531
Island-Wide Road Improvements - Reserve $800 $200 $600 $600 $200 $210 $221 $232 $243 $255 $268 $281 $295 $310 $326 $342 $359 $4,743
Island-Wide Z Brick Replacement - Reserve $100 $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 $163 $171 $180 $189 $198 $208 $2,266
Good Shepherd Plaza - Pavement Replacement $500 $0
Blackwell Park Plaza & Fountains $700 $700
Blackwell Circle $200 $200
36 Avenue Bridge Helix (Ramp) $1,250 $2,500 $2,500
Seawall - Reserve $1,000 $5,000 $5,000 $1,000 $1,050 $1,103 $1,158 $1,216 $1,276 $1,340 $1,407 $1,477 $1,551 $1,629 $24,207
Seawall Railings Replacement $1,000 $1,000 $1,000 $1,000 $1,000 $1,000 $5,000
West Drive Modernization $2,000 $2,000
Steamplant Decommissioning $3,500 $3,500 $7,000
Eastern Pier $1,500 $1,500
Site Amenities - Benches, Waste Receptacles - Res. $75 $50 $75 $79 $83 $87 $91 $96 $101 $106 $111 $116 $122 $128 $135 $141 $148 $1,618
Utilities Infrastructure Improvements - Reserve $100 $30 $105 $110 $116 $122 $128 $134 $141 $148 $155 $163 $171 $180 $189 $198 $208 $2,266
Sewer Upgrades - Reserve $200 $100 $210 $221 $232 $243 $255 $268 $281 $295 $310 $326 $342 $359 $377 $396 $416 $4,531
4 Facilities & Offices $3,460 $2,840 $7,930 $2,041 $673 $706 $741 $779 $817 $858 $901 $946 $994 $1,043 $1,095 $1,150 $1,208 $21,883
Motorgate Project Repairs Project $1,000 $0
Motorgate Garage - Reserve $200 $210 $221 $232 $243 $255 $268 $281 $295 $310 $326 $342 $359 $377 $396 $4,316
Motorgate Atrium/Escalator/N.Elevators $600 $600
Motorgate Under deck Lighting $750 $750 $0
Motorgate Enclosed Phase 3 Air Shaft $80 $80 $0
Motorgate Coat Level 3 Deck $320 $320 $0
Motorgate Coat Roof Deck $0
Motorgate Fire Alarm Rehabilitation $40 $40 $0
504 Main Street - Interior Demolition $250 $250 $0
504 Main Street - Window/Door Replacement $250 $250 $0
504 Main Street - ADA Elevator $250 $0
AVAC Stack Repairs $400 $400
AVAC Interior Painting $300 $300
AVAC Mechanical/Piping - Reserve $200 $100 $210 $221 $232 $243 $255 $268 $281 $295 $310 $326 $342 $359 $377 $396 $416 $4,531
Sportspark - HVAC $600 $3,000 $3,000
Sportspark - Roof $600 $600
Sportpark - Pool $120 $120 $120
Sportpark - New Flooring Squash/Ping Pong $40 $40 $40
Sportpark - Upgrade Locker Rooms $60 $60 $60
Sportspark - Faade Repointing $100 $100
Sportspark Rehabilitiation - Reserve $50 $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 $163 $171 $180 $189 $198 $2,158
Warehouse/Bus Garage Rehabilitation $500 $3,500 $3,500
Miscellaneous Facilities & Offices - Reserve $100 $105 $110 $116 $122 $128 $134 $141 $148 $155 $163 $171 $180 $189 $198 $2,158
5 Equipment & Vehicles $366 $295 $224 $188 $152 $177 $1,159 $1,347 $1,289 $1,372 $1,346 $1,606 $1,568 $302 $218 $317 $324 $11,588
Admin - (2) GEMs (50% paid by NYPA) $20 $25 $30 $35 $90
Bus - Hybrid Buses $1,000 $1,050 $1,103 $1,158 $1,216 $1,276 $1,340 $8,142
Bus - F-350 Pickup $30 $40 $60 $100

Page 13
 The Roosevelt Island Operating Corporation (RIOC)
CAPITAL IMPROVEMENTS 2013/2014 (In Thousands)

5% inflation rate

Approved Projected Approved Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Projected Budgets
Budget Actual Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget Budget 2013 - 2027
2013 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Total
Bus - Sissor Lift $10 $20 $20
Engineering - Ford Escape $20 $20 $26 $33 $59
P.S. - Ford Escapes $20 $20 $21 $22 $23 $24 $26 $27 $28 $30 $31 $33 $34 $36 $38 $40 $42 $453
P.S. - Segways $6 $15 $6 $16 $7 $18 $7 $20 $8 $22 $8 $24 $8 $26 $9 $9 $203
P.S. - Gem $15 $11 $12 $14 $15 $16 $18 $20 $20 $141
P.S. - (4) Substations (Tram/Lighthouse/Bridge/SP Park $40 $20 $0
P.S. - Taser Equipment & Training $40 $40
Motorpool - (2) GEMS (50% paid by NYPA) $15 $30 $40 $50 $120
Motorpool - Aerial Truck Lift $70 $35 $45 $80
Maintenance - Ford 350 $50 $50 $0
Grounds - Brush Chipper $60 $45 $45
Parks & Recreation- Ford Escape $20 $20 $26 $33 $59
Parks & Recreation- Gym Equipment $10 $15 $15
IT - Servers $50 $55 $62 $70 $70 $307
IT - Plotter $25 $28 $34 $87
IT - Parking Meter Replacement $0
IT - Software Upgrades $30 $30 $32 $33 $35 $36 $38 $40 $42 $44 $47 $49 $51 $54 $57 $59 $62 $680
IT - (2) Copiers/AV/Printers $20 $20 $22 $24 $26 $29 $32 $35 $39 $39 $246
IT - (20 PC Replacements) $20 $20 $21 $22 $23 $24 $26 $27 $28 $30 $31 $33 $34 $36 $38 $40 $42 $453
IT - Upgrade of Switches $20 $22 $24 $26 $29 $32 $35 $40 $40 $248
Excavator $40 $40
(2) Bobcats $30 $30
Misc. Heavy equipment $30 $32 $33 $35 $36 $38 $40 $42 $44 $47 $49 $51 $54 $57 $59 $647
6 Special Projects $1,070 $650 $370 $53 $55 $58 $61 $64 $67 $70 $74 $78 $81 $86 $90 $94 $99 $1,399
Admin - Islandwide Geographic Information System $250 $0
P.S. - Island Wireless Security Camera System $600 $600 $100 $100
IT - Off-Site Data Backup Recovery System $50 $0
Parking Management System $120 $120 $120
Parking Meters Replacement $100 $100 $100
Other - Special Projects $50 $53 $55 $58 $61 $64 $67 $70 $74 $78 $81 $86 $90 $94 $99 $1,079
7 Lighting & Signage $40 $0 $42 $44 $46 $49 $51 $54 $56 $59 $62 $65 $68 $72 $75 $79 $83 $906
Street Light Replacement $20 $21 $22 $23 $24 $26 $27 $28 $30 $31 $33 $34 $36 $38 $40 $42 $453
Signage $20 $21 $22 $23 $24 $26 $27 $28 $30 $31 $33 $34 $36 $38 $40 $42 $453
8 Tram $1,500 $1,000 $1,500 $100 $80 $0 $700 $0 $100 $0 $0 $880 $275 $0 $0 $0 $0 $3,635
Tram - Security/Monitoring/Replacement Equipment $100 $150 $250
Tram - Haul Rope Replacement $600 $750 $1,350
Tram - Sheve Liners Replacement $80 $100 $125 $305
Tram - Other Equip. & Tools $0
Tram - Electrical PLC Replacement $100 $130 $230
Tram Modernization - Note A $1,500 $1,000 $1,500 $1,500
9 Southpoint Park $0 $1,000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
TPL - Wild Rooms/Wild Gardens $1,000 $0
10 Miscellaneous $500 $0 $525 $551 $579 $608 $638 $670 $704 $739 $776 $814 $855 $898 $943 $990 $1,039 $11,329
Contingency $500 $525 $551 $579 $608 $638 $670 $704 $739 $776 $814 $855 $898 $943 $990 $1,039 $11,329
TOTAL CAPITAL IMPROVEMENTS $13,551 $7,965 $22,801 $18,637 $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 $122,584

Page 14
 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 <----------------------------------------------------------- -------------------------------- Projected --------------------------------------------------------------------------------------------------------------------------->

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

Reversal Southtown #7, 8 & 9 Projected Revenues:

Ground Rent ($364) ($364) ($1,278) ($1,298) ($2,484) ($2,535) ($3,202) ($3,291) ($3,382) ($3,474) ($3,569) ($3,668) ($3,769) ($3,872) ($3,979)
Public Safety Fees ($48) ($49) ($115) ($118) ($270) ($279) ($286) ($296) ($305) ($313) ($323) ($333) ($342)
Condo Conversion Fee Income ($1,050) ($1,230) ($1,471) ($197) ($2,997) ($1,723) ($1,729) ($215) ($221) ($228) ($235) ($242) ($249)
Mini TEP & PILOT Fees ($181) ($202) ($202) ($450) ($450) ($728) ($728) ($728) ($1,528) ($2,328) ($3,128) ($3,928) ($4,728) ($4,728) ($4,728)
Deferred Revenues (Prepaid Rent) ($10,050) ($12,000) ($13,440)
Reversal of Deferred Revenues $0 $0 $164 $164 $360 $360 $588 $588 $588 $588 $588 $588 $588 $588 $588
De-Designation Fee Penalty $1,500
Net Change In Revenues (Before Adj. of Interest Income) $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)

Change in Investment Income $10 ($8) ($187) ($43) ($323) ($64) ($401) ($163) ($190) ($172) ($199) ($226) ($254) ($258) ($261)

Net Change in Revenues: $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)

Net Change in Revenues Brought Forward from Prior Years $965 $390 ($12,261) ($15,167) ($31,650) ($34,932) ($55,382) ($60,978) ($67,505) ($73,402) ($80,236) ($88,012) ($96,733) ($105,577)

Cash Balance - Inclusive of Southtown #7,8 & 9 Revenues: $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 $68,561

Adj. Cash Balance - Without Southtown #7,8 & 9 $22,887 $6,369 $4,055 $3,894 $684 ($1,345) ($4,903) ($8,001) ($11,724) ($17,277) ($22,940) ($27,879) ($33,515) ($39,698) ($45,987)

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 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40 $40
- Southtown #5 $64 $64 $64 $64 $64 $64 $64 $64 $64 $64 $64 $64 $64 $64 $64 $64
- Southtown #6 $98 $98 $98 $98 $98 $98 $98 $98 $98 $98 $98 $98 $98 $98 $98 $98
- Southtown #7 - Est. TCO 4/2016 201,000 sq'@$50/sq'=$10,050,000 $0 $0 $0 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96 $96
- Southtown #8 - Est. TCO 04/2018 240,000sq'@$50/sq'=$12,000,000 $0 $0 $0 $0 $0 $118 $118 $118 $118 $118 $118 $118 $118 $118 $118 $118
- Southtown #9 - Est. TCO 04/2020 268,800sq'@$50/sq'=$13,440,000 $0 $0 $0 $0 $0 $0 $0 $132 $132 $132 $132 $132 $132 $132 $132 $132
Total: NET PRESENT VALUE - Capital Reserved (59%) $202 $202 $202 $298 $298 $416 $416 $548 $548 $548 $548 $548 $548 $548 $548 $548

NET PRESENT VALUE - Capital (40%)

- Southtown #4 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27 $27
- Southtown #5 $43 $43 $43 $43 $43 $43 $43 $43 $43 $43 $43 $43 $43 $43 $43 $43
- Southtown #6 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67 $67
- Southtown #7 - Est. TCO 4/2016 201,000 sq'@$50/sq'=$10,050,000 $0 $0 $0 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65
- Southtown #8 - Est. TCO 04/2018 240,000sq'@$50/sq'=$12,000,000 $0 $0 $0 $0 $0 $76 $76 $76 $76 $76 $76 $76 $76 $76 $76 $76
- Southtown #9 - Est. TCO 04/2020 268,800sq'@$50/sq'=$13,440,000 $0 $0 $0 $0 $0 $0 $0 $94 $94 $94 $94 $94 $94 $94 $94 $94
Total: NET PRESENT VALUE - Capital (40%) $137 $137 $137 $202 $202 $278 $278 $372 $372 $372 $372 $372 $372 $372 $372 $372

NET PRESENT VALUE - Operating (1%)

- Southtown #4 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1
- Southtown #5 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1 $1
- Southtown #6 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2
- Southtown #7 - Est. TCO 4/2016 201,000 sq'@$50/sq'=$10,050,000 $0 $0 $0 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3 $3
- Southtown #8 - Est. TCO 04/2018 240,000sq'@$50/sq'=$12,000,000 $0 $0 $0 $0 $0 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2 $2
- Southtown #9 - Est. TCO 04/2020 268,800sq'@$50/sq'=$13,440,000 $0 $0 $0 $0 $0 $0 $0 $2 $2 $2 $2 $2 $2 $2 $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) $165 $30 $182 $191 $201 $207 $213 $220 $226 $233 $240 $247 $255 $262 $270 $278
-Condo Conversion Fees - Resales -Southtown 7,8,9 (60units@$3,000) $0 $0 $0 $0 $180 $185 $191 $197 $203 $209 $215 $221 $228 $235 $242 $249
-Southtown #5 - Initial Conversion (sale of remaining units) $50 $50 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-Southtown #7 - Initial Con. (2%@$750/sq'@201,600= $3,160,000 $0 $0 $0 $1,050 $1,050 $1,050 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-Southtown #8 - Initial Con.(2%@$800/sq'@240,000) = $3,8400,000 $0 $0 $0 $0 $0 $1,280 $1,280 $1,280 $0 $0 $0 $0 $0 $0 $0 $0
-Southtown #9 - Initial Con.(2%@$850/sq'@268,800) = $4,556,000 $0 $0 $0 $0 $0 $0 $0 $1,520 $1,520 $1,520 $0 $0 $0 $0 $0 $0
- Island House -Capital Event Fees (per ground lease schedule) $0 $0 $0 $2,185 $1,315 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
- Island House - Condo Transfer Fees (per ground lease schedule) $0 $0 $0 $144 $155 $166 $179 $192 $207 $222 $239 $257 $277 $297 $308 $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 $912 $930 $949 $968 $987 $1,007 $1,027 $1,048 $1,069 $1,090 $1,112 $1,134 $1,157 $1,180 $1,203 $1,227
Hudson/Related Profit Participation (per H/R proforma) $0 $0 $0 $0 $0 $0 $230 $492 $607 $686 $720 $756 $794 $834 $876 $919

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
-281 Main Street - (HCK Tennis Bubble) (Parking) - Leased thru 2046 $8 $8 $8 $8 $9 $9 $9 $9 $10 $10 $10 $11 $11 $11 $12 $12
-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 $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

SOUTHTOWN PILOT/TEP
PILOT - Southtown #3 (begins 21st year after TCO - begins 2027 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $400 $800
PILOT - Southtown #4 (begins 21st year after TCO - begins 2028 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $400
-TEP - Southtown #5 (begins 13th year after TCO - begins 2022 (A) $0 $0 $0 $0 $0 $0 $0 $0 $0 $400 $800 $1,200 $1,600 $2,000 $2,000 $2,000
-TEP - Southtown #6 (begins 13th year after TCO - begins 2022(A) $0 $0 $0 $0 $0 $0 $0 $0 $0 $400 $800 $1,200 $1,600 $2,000 $2,000 $2,000
-TEP - Southtown #7 (begins 13th year after TCO - begins 2029 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-TEP - Southtown #8 (begins 13th year after TCO - begins 2031 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-TEP - Southtown #9 (begins 13th year after TCO - begins 2033 $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 $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 $145 $145 $145 $145 $145 $145 $145 $145 $145 $145 $145 $145 $145 $145 $145 $145
-TEP - Southtown #6 $222 $222 $222 $222 $222 $222 $222 $222 $222 $222 $222 $222 $222 $222 $222 $222
-TEP - Southtown #7 - closing 4/13 $69 $202 $202 $202 $202 $202 $202 $202 $202 $202 $202 $202 $202 $202 $202 $202
-TEP - Southtown #8 - closing 4/15 $62 $0 $0 $248 $248 $248 $248 $248 $248 $248 $248 $248 $248 $248 $248 $248
-TEP - Southtown #9 - closing 4/17 $50 $0 $0 $0 $0 $278 $278 $278 $278 $278 $278 $278 $278 $278 $278 $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

SOUTHTOWN DEVELOPMENT FEES:

Development Fees - Southtown #7 - closing 4/13 $51 $38 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Development Fees - Southtown #8 - closing 4/15 $45 $0 $0 $45 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Development Fees - Southtown #9 - closing 4/17 $38 $0 $0 $0 $0 $51 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Total: SOUTHTOWN DEVELOPMENT FEES: $134 $38 $0 $45 $0 $51 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0

- GROUND RENT
-Eastwood Ground Rent - $1,200,000 plus 2% (est. increase in rent) $1,273 $1,299 $1,325 $1,351 $1,378 $1,406 $1,434 $1,463 $1,492 $1,522 $1,552 $1,583 $1,615 $1,647 $1,680 $1,714
-Island House - (Note C) $55 $55 $55 $236 $236 $236 $236 $236 $260 $260 $260 $260 $260 $286 $286 $286
-Rivercross - $31,494/year - with 3% increase (Note D) $31 $32 $33 $34 $35 $37 $38 $39 $40 $41 $42 $44 $45 $46 $48 $49
-Westview - Ground Rent Not Paid to RIOC (Note E) $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
-Manhattan Park - 3% increase $4,164 $4,289 $4,418 $4,550 $4,687 $4,827 $4,972 $5,121 $5,275 $5,433 $5,596 $5,764 $5,937 $6,115 $6,298 $6,487
-Manhattan Park Percentage Rent - $170,000/mth plus 2% $2,164 $2,200 $2,244 $2,289 $2,335 $2,381 $2,429 $2,478 $2,527 $2,578 $2,629 $2,682 $2,735 $2,790 $2,846 $2,903
-Manhattan Park - New Bus Reimb. $150,000/year, starting 04/2011 $150 $150 $150 $150 $150 $168 $168 $168 $168 $168 $168 $188 $188 $188 $188 $188
-Octagon - Deferred Revenue $48,416/yr thru 2068 $48 $48 $48 $48 $48 $48 $48 $48 $48 $48 $48 $48 $48 $48 $48 $48
-Southtown #1 - Deferred Revenue $32,091/yr thru 2068 $32 $32 $32 $32 $32 $32 $32 $32 $32 $32 $32 $32 $32 $32 $32 $32

Page 17
 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
-Southtown #2 - Deferred Revenue $30,429/yr thru 2068 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30 $30
-Southtown #3 - Deferred Revenue $64,824/yr thru 2068 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65 $65
-Southtown #4 - Deferred Revenue $30,993/yr thru 2068 $17 $31 $31 $31 $31 $31 $31 $31 $31 $31 $31 $31 $31 $31 $31 $31
-Southtown #5 - 2.75% increase $561 $576 $592 $609 $625 $642 $660 $678 $697 $716 $736 $756 $777 $798 $820 $843
-Southtown #6 - 2.75% increase $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
-Southtown #7 - 2.75% increase $0 $364 $364 $728 $748 $769 $790 $811 $834 $857 $880 $904 $929 $955 $981 $1,008
-Southtown #8 - 2.75% increase $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
-Southtown #9 - 2.75% increase $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
Total: GROUND RENT $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

PUBLIC SAFETY REIMBURSEMENT

-Island House - (3% increase) $171 $176 $181 $187 $192 $198 $204 $210 $217 $223 $230 $237 $244 $251 $259 $266
-Octagon - Public Safety Fees (3% increase) $131 $135 $139 $144 $148 $152 $157 $162 $166 $171 $177 $182 $187 $193 $199 $205
-R.I. Associates (Manhattan Park) - (3% increase) $284 $293 $302 $311 $320 $330 $340 $350 $360 $371 $382 $394 $406 $418 $430 $443
-Rivercross - (3% increase) $171 $176 $181 $187 $192 $198 $204 $210 $217 $223 $230 $237 $244 $251 $259 $266
-Roosevelt Landings (Eastwood) - (3% increase) $469 $483 $498 $513 $528 $544 $560 $577 $594 $612 $630 $649 $669 $689 $710 $731
-Southtown #1 (Sloan/Kettering) - Public Safety Fees (3% increase) $31 $32 $33 $34 $35 $36 $37 $38 $39 $40 $42 $43 $44 $46 $47 $48
-Southtown #2 (Weil Medical) - (3% increase) $38 $40 $41 $42 $43 $45 $46 $47 $49 $50 $52 $53 $55 $56 $58 $60
-Southtown #3 (Riverwalk Place) - (3% increase) $63 $65 $67 $69 $71 $73 $76 $78 $80 $83 $85 $88 $90 $93 $96 $99
-Southtown #4 (Riverwalk Landing) - (3% increase) $56 $58 $60 $61 $63 $65 $67 $69 $71 $73 $75 $78 $80 $82 $85 $87
-Southtown #5 (Riverwalk Court) - Safety Fees (3% increase) $32 $33 $34 $35 $36 $37 $38 $39 $41 $42 $43 $44 $46 $47 $48 $50
-Southtown #6 (Riverwalk 6) - (3% increase) $62 $64 $66 $68 $70 $72 $74 $76 $79 $81 $83 $86 $88 $91 $94 $97
-Southtown #7 (Riverwalk 7) - (est. 04/2016, est units 201@$20/mth) $0 $0 $0 $48 $49 $51 $52 $54 $56 $57 $59 $61 $63 $65 $66 $68
-Southtown #8 (Riverwalk 8) - (est. 04/2018, est units 268@$20/mth) $0 $0 $0 $0 $0 $64 $66 $68 $70 $72 $75 $77 $79 $81 $84 $86
-Southtown #9 (Riverwalk 9) - (est. 04/2015, est units 300@$20/mth) $0 $0 $0 $0 $0 $0 $0 $72 $74 $76 $79 $81 $83 $86 $89 $91
-Westview - Public Safety Fees (increase 3% starting 2014) $152 $157 $161 $166 $171 $176 $181 $187 $193 $198 $204 $210 $217 $223 $230 $237
Total: PUBLIC SAFETY REIMBURSEMENT $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
-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) $147 $150 $153 $156 $159 $162 $166 $169 $172 $176 $179 $183 $186 $190 $194 $198
-Tram -$300,000/mth (2% increase) $4,000 $4,200 $4,284 $4,370 $4,457 $4,546 $4,637 $4,730 $4,824 $4,921 $5,019 $5,120 $5,222 $5,327 $5,433 $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) $111 $114 $116 $118 $120 $123 $125 $128 $130 $133 $136 $138 $141 $144 $147 $150
-Bus Revenue - Remain (2% increase) $375 $382 $390 $397 $405 $414 $422 $430 $439 $448 $457 $466 $475 $485 $494 $504
-Main Street Parking - (2% increase) $168 $171 $175 $178 $182 $185 $189 $193 $197 $201 $205 $209 $213 $217 $222 $226
Total: BUS & PARKING $654 $667 $680 $694 $708 $722 $736 $751 $766 $781 $797 $813 $829 $846 $863 $880

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) $64 $36 $68 $70 $72 $74 $76 $78 $81 $83 $86 $88 $91 $93 $96 $99
-Telephone Commission - Sprint (3% increase) $47 $48 $50 $51 $53 $54 $56 $58 $59 $61 $63 $65 $67 $69 $71 $73
-Telephone Commission - Verizon (3% increase) $58 $60 $61 $63 $65 $67 $69 $71 $73 $75 $78 $80 $82 $85 $87 $90
-Tennis Fees - (3% increase) $51 $52 $54 $56 $57 $59 $61 $63 $65 $66 $68 $70 $73 $75 $77 $79
-Permit Revenues - (3% increase) $12 $12 $13 $13 $14 $14 $14 $15 $15 $16 $16 $17 $17 $18 $18 $19
-Sportspark - (3% increase) $100 $200 $206 $212 $219 $225 $232 $239 $246 $253 $261 $269 $277 $285 $294 $303
-Sports Field Rental - Capobianco Feld (2% increase) $20 $20 $21 $21 $22 $22 $23 $23 $23 $24 $24 $25 $25 $26 $26 $27
-Sports Field Rental - Fire Fighters' Field (5% increase) $87 $90 $92 $95 $98 $101 $104 $107 $110 $114 $117 $120 $124 $128 $132 $136
-Sports Field Rental - Octagon Field (5% increase) $108 $140 $144 $149 $153 $158 $162 $167 $172 $177 $183 $188 $194 $200 $206 $212
-Special Events Permits - (3% increase) $12 $12 $13 $13 $14 $14 $14 $15 $15 $16 $16 $17 $17 $18 $18 $19
-Filming Fees - (5% increase) $144 $84 $88 $93 $97 $102 $107 $113 $118 $124 $130 $137 $144 $151 $158 $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 $250 $150 $300 $525 $750 $1,080 $1,160 $1,240 $1,830 $1,800 $1,770 $1,740 $1,710 $1,710 $1,710 $1,710
Capital $30 $30 $45 $75 $75 $60 $60 $60 $90 $90 $90 $90 $90 $90 $90 $90
Public Purpose $2 $1 $1 $1 $1 $1 $1 $1 $2 $2 $2 $2 $2 $2 $2 $2
Operating $10 $30 $30 $90 $90 $120 $120 $120 $180 $180 $180 $180 $180 $180 $180 $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

TOTAL REVENUES: $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

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 $25,000 $15,000 $20,000 $35,000 $50,000 $54,000 $58,000 $62,000 $61,000 $60,000 $59,000 $58,000 $57,000 $57,000 $57,000 $57,000
Capital $3,000 $3,000 $3,000 $5,000 $5,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000 $3,000
Public Purpose $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50 $50
Operating $1,000 $3,000 $2,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000 $6,000

Interest Rate Used: 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 Approved Budget for FY 13/14

HOME LOCATION Current Annual Salary HOME LOCATION Current Annual Salary
NAME DEPT JOB TITLE DESCR FTE STATUS CODE as 8/7/11 NAME DEPT JOB TITLE DESCR FTE STATUS CODE as 8/19/12

Summary: Summary:
Administration: Executive 4.00 1100 567,320 Administration: Executive 4.00 1100 567,314

Finance 6.00 1300 425,686 Finance 6.00 1300 425,686

Human Resources 2.00 1400 139,424 Human Resources 2.00 1400 139,424

Legal 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 1,382,698 Total Administrative 16.00 1,419,092

Operations: Operations 0.00 2000 0 Operations: Operations 0.00 2000 0

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 0 Island Operations 0.00 2200 0

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

Engineering 3.00 2050 251,019 Engineering 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

Over-time Wages 175,000 Over-time Wages 175,000

Total Salaries 6,607,485 Total Salaries 6,736,694

Temporary Employees 175,000 Temporary Employees 175,000

Total Budgeted Wages 114.50 6,782,485 Total Budgeted Wages 117.00 6,911,694

Page 20
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
Revenue
Residential Fees Revenue
01-40122-5000 SOUTOWN 7,8,9 DEVELOPMENT FEES $0 $134,000 $38,000 ($96,000) 0.00%
01-40123-5000 TEP $548,000 $548,056 $568,000 $19,944 3.64%
01-40401-5000 NET PRESENT VALUE - Operating $3,000 $3,425 $3,000 ($425) -12.41%
03-40400-5000 CONDO ADDITIONAL SALES $250,000 $215,000 $80,000 ($135,000) -62.79%
03-40401-5000 NET PRESENT VALUE - Capital $137,000 $136,981 $137,000 $19 0.01%
04-40401-5000 NET PRESENT VALUE - Capital Reserved $202,000 $202,047 $202,000 ($47) -0.02%
$1,140,000 $1,239,509 $1,028,000 ($211,509) -17.06%

Ground rent
01-40015-5000 MANHATTAN PARK PERCENT RENT $2,100,000 $2,164,000 $2,200,000 $36,000 1.66%
01-40090-5000 GROUND RENT $7,289,000 $7,289,000 $7,857,000 $568,000 7.79%
$9,389,000 $9,453,000 $10,057,000 $604,000 6.39%

Commercial Rent
01-40208-4000 COMMERCIAL RENT $1,437,000 $1,437,000 $1,466,000 $29,000 2.02%
$1,437,000 $1,437,000 $1,466,000 $29,000 2.02%

Tramway Revenue
01-40020-2900 TRAMWAY REVENUE $4,400,000 $4,000,000 $4,200,000 $200,000 5.00%
01-40021-2900 TRAMWAY REDUCED FARE REIMBURSEM $147,000 $147,000 $150,000 $3,000 2.04%
$4,547,000 $4,147,000 $4,350,000 $203,000 4.90%

Public Safety Reimbursement

01-40080-2100 PUBLIC SAFETY REIMBURSEMENT $1,650,000 $1,662,000 $1,712,000 $50,000 3.01%
$1,650,000 $1,662,000 $1,712,000 $50,000 3.01%

Transport/ Parking Revenue

01-40000-5000 MAIN STREET PARKING $180,000 $168,000 $171,000 $3,000 1.79%
01-40010-2240 BUS REVENUE $360,000 $375,000 $382,000 $7,000 1.87%
01-40010-5000 BUS REVENUE - Octagon $111,000 $111,000 $114,000 $3,000 2.70%
01-40030-6000 MOTORGATE $1,950,000 $2,037,000 $2,078,000 $41,000 2.01%

Page 21
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
$2,601,000 $2,691,000 $2,745,000 $54,000 2.01%

Interest Income
01-40050-0000 INTEREST INCOME - Operating $5,000 $10,000 $30,000 $20,000 200.00%
02-40050-0000 INTEREST INCOME - Public Purpose $500 $1,000 $1,000 $0 0.00%
03-40050-0000 INTEREST INCOME - Capital $1,000 $30,000 $30,000 $0 0.00%
04-40050-0000 INTEREST INCOME - Capital Reserved $175,000 $250,000 $150,000 ($100,000) -40.00%
$181,500 $291,000 $211,000 ($80,000) -27.49%

Unrealized Gain (Loss)

04-40051-0000 UNREALIZED GAIN (LOSS) - Capital Reserve $0 $0 $0 $0 0.00%
$0 $0 $0 $0 0.00%

Other Revenue
01-40060-2310 FILMING $100,000 $144,000 $84,000 ($60,000) -41.67%
01-40100-2310 SPECIAL EVENTS PERMITS $12,000 $12,000 $12,000 $0 0.00%
01-40200-2310 SPORTS FIELD RENTAL $250,000 $215,000 $250,000 $35,000 16.28%
01-40203-3400 SPORTSPARK $200,000 $100,000 $200,000 $100,000 100.00%
01-40205-5000 PERMIT REVENUES $12,000 $12,000 $12,000 $0 0.00%
01-40206-3000 TENNIS FEE $51,000 $51,000 $52,000 $1,000 1.96%
01-40212-1500 TELEPHONE COMMISSION $105,000 $105,000 $108,000 $3,000 2.86%
01-40300-1000 MISCELLANEOUS REVENUE $64,000 $64,000 $36,000 ($28,000) -43.75%
$794,000 $703,000 $754,000 $51,000 7.25%

Total Revenue: $21,739,500 $21,623,509 $22,323,000 $699,491 3.23%

Expenses
Personal Services (PS) :
Salaries
01-60010-1050 SALARIES - Administrative Services $177,000 $177,082 $177,082 $0 0.00%
01-60010-1100 SALARIES- Executive $567,000 $567,320 $567,314 $6 0.00%
01-60010-1300 SALARIES- Finance $425,000 $425,686 $425,686 $0 0.00%
01-60010-1400 SALARIES- Human Resources $139,000 $139,424 $139,424 $0 0.00%
01-60010-1500 SALARIES- Information Technology $175,000 $228,339 $228,339 $0 0.00%

Page 22
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60010-1600 SALARIES- Legal $169,000 $169,724 $169,724 $0 0.00%
01-60010-1800 SALARIES- Community Relations $80,000 $80,544 $116,944 ($36,400) -45.19%
01-60010-2050 SALARIES - Engineering $251,000 $251,019 $319,019 ($68,000) -27.09%
01-60010-2100 SALARIES- Public Safety $1,925,000 $1,854,469 $1,871,483 ($17,014) -0.92%
01-60010-2210 SALARIES - Grounds $600,000 $626,028 $575,026 $51,002 8.15%
01-60010-2220 SALARIES - Maintenance $280,000 $267,925 $318,656 ($50,731) -18.93%
01-60010-2230 SALARIES- Warehouse $164,000 $164,266 $164,266 $0 0.00%
01-60010-2240 SALARIES - Bus Operations $900,000 $875,687 $844,758 $30,929 3.53%
01-60010-2250 SALARIES - Motor Pool $225,000 $215,602 $215,602 $0 0.00%
01-60010-2300 SALARIES - Parks & Recreations $85,000 $73,824 $73,824 $0 0.00%
01-60010-2310 SALARIES - Permits & Film $58,000 $58,444 $58,444 $0 0.00%
01-60010-3400 SALARIES- Sportspark $250,000 $257,103 $296,103 ($39,000) -15.17%
$6,470,000 $6,432,486 $6,561,694 ($129,208) -2.01%

Salaries OT
01-60030-1500 SALARIES HOURLY OT- Information Techno $2,000 $2,000 $2,000 $0 0.00%
01-60030-1800 SALARIES HOURLY OT- Community Relation $2,000 $2,000 $2,000 $0 0.00%
01-60030-2050 SALARIES HOURLY OT - Engineering $2,000 $2,000 $2,000 $0 0.00%
01-60030-2100 SALARIES HOURLY OT- Public Safety $80,000 $80,000 $80,000 $0 0.00%
01-60030-2210 SALARIES HOURLY OT- Grounds $17,000 $17,000 $17,000 $0 0.00%
01-60030-2220 SALARIES HOURLY OT- Maintenance $25,000 $25,000 $25,000 $0 0.00%
01-60030-2230 SALARIES HOURLY OT- Warehouse $2,000 $2,000 $2,000 $0 0.00%
01-60030-2240 SALARIES HOURLY OT- Bus Operations $35,000 $35,000 $35,000 $0 0.00%
01-60030-2250 SALARIES HOURLY OT - Motor Pool $6,000 $6,000 $6,000 $0 0.00%
01-60030-2300 SALARIES HOURLY OT - Parks & Recreations $2,000 $2,000 $2,000 $0 0.00%
01-60030-2310 SALARIES HOURLY OT - Permits & Film $2,000 $2,000 $2,000 $0 0.00%
01-60031-2100 SALARIES HOURLY OT- Public Safety (Renw $0 $0 $0 $0 0.00%
$175,000 $175,000 $175,000 $0 0.00%

Temporary Employees
01-60100-1000 TEMPORARY EMPLOYEE - Administrative $10,000 $10,000 $10,000 $0 0.00%
01-60100-1050 TEMPORARY EMPLOYEE - Administrative Se $1,000 $1,000 $1,000 $0 0.00%
01-60100-1800 TEMPORARY EMPLOYEE - Community Relat $9,000 $9,000 $9,000 $0 0.00%

Page 23
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60100-2100 TEMPORARY EMPLOYEE - Public Safety $16,000 $16,000 $16,000 $0 0.00%
01-60100-2200 TEMPORARY EMPLOYEE - Island Operations $12,000 $12,000 $12,000 $0 0.00%
01-60100-2210 TEMPORARY EMPLOYEE - Grounds $65,000 $65,000 $65,000 $0 0.00%
01-60100-2220 TEMPORARY EMPLOYEE - Maintenance $40,000 $40,000 $40,000 $0 0.00%
01-60100-2230 TEMPORARY EMPLOYEE - Warehouse $7,000 $7,000 $7,000 $0 0.00%
01-60100-2300 TEMPORARY EMPLOYEE - Parks & Recreatio $6,000 $6,000 $6,000 $0 0.00%
01-60100-3400 TEMPORARY EMPLOYEE - Sportspark $9,000 $9,000 $9,000 $0 0.00%
$175,000 $175,000 $175,000 $0 0.00%

$6,820,000 $6,782,486 $6,911,694 ($129,208) -1.91%

Workers Compensation & Disability

01-60060-0000 WORKERS COMPENSATION - General $160,000 $160,000 $160,000 $0 0.00%
01-60070-1000 DISABILITY INSURANCE - Administrative $2,000 $2,133 $2,202 ($69) -3.23%
$162,000 $162,133 $162,202 ($69) -0.04%

ER Payroll Taxes
01-60080-1000 ER PAYROLL TAXES- Administrative $1,200 $1,185 $1,185 $0 0.00%
01-60080-1050 ER PAYROLL TAXES - Administrative Service $14,700 $14,701 $14,701 $0 0.00%
01-60080-1100 ER PAYROLL TAXES - Executive $37,000 $37,333 $37,332 $1 0.00%
01-60080-1300 ER PAYROLL TAXES - Finance $35,000 $34,635 $34,635 $0 0.00%
01-60080-1400 ER PAYROLL TAXES - Human Resources $11,300 $11,356 $11,356 $0 0.00%
01-60080-1500 ER PAYROLL TAXES - Information Technolog $18,600 $18,656 $18,656 $0 0.00%
01-60080-1600 ER PAYROLL TAXES - Legal $13,600 $13,674 $13,674 $0 0.00%
01-60080-1800 ER PAYROLL TAXES - Community Relations $8,000 $8,072 $11,201 ($3,129) -38.76%
01-60080-2050 ER PAYROLL TAXES - Engineering $20,400 $20,391 $25,938 ($5,547) -27.20%
01-60080-2100 ER PAYROLL TAXES - Public Safety $164,300 $164,368 $166,017 ($1,649) -1.00%
01-60080-2200 ER PAYROLL TAXES - Island Operations $1,400 $1,422 $1,422 $0 0.00%
01-60080-2210 ER PAYROLL TAXES - Grounds $61,000 $61,035 $58,318 $2,717 4.45%
01-60080-2220 ER PAYROLL TAXES - Maintenance $28,900 $28,874 $33,100 ($4,226) -14.64%
01-60080-2230 ER PAYROLL TAXES - Warehouse $14,600 $14,584 $14,584 $0 0.00%
01-60080-2240 ER PAYROLL TAXES - Bus Operations $76,900 $76,913 $72,671 $4,242 5.52%
01-60080-2250 ER PAYROLL TAXES - Motor Pool $18,300 $18,333 $18,333 $0 0.00%

Page 24
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60080-2300 ER PAYROLL TAXES - Parks & Recreations $6,800 $6,857 $6,857 $0 0.00%
01-60080-2310 ER PAYROLL TAXES - Permits & Film $5,000 $4,969 $4,969 $0 0.00%
01-60080-3400 ER PAYROLL TAXES - Sportspark $24,000 $24,185 $27,859 ($3,674) -15.19%
$561,000 $561,543 $572,808 ($11,265) -2.01%

Other Post Employment Benefits Other Than Pension (GASB 45)

01-60095-1000 OTHER POST EMPLOYMENT BENEFIT(OPE $425,000 $425,000 $425,000 $0 0.00%

MCTMT Taxes (3% Increase)

01-60071-1000 MCTMT TAXES- Administrative $34 $34 $34 $0 0.00%
01-60071-1050 MCTMT TAXES - Administrative Services $605 $605 $605 $0 0.00%
01-60071-1100 MCTMT TAXES - Executive $1,929 $1,929 $1,929 $0 0.00%
01-60071-1300 MCTMT TAXES - Finance $1,447 $1,447 $1,447 $0 0.00%
01-60071-1400 MCTMT TAXES - Human Resources $474 $474 $474 $0 0.00%
01-60071-1500 MCTMT TAXES - Information Technology $783 $783 $783 $0 0.00%
01-60071-1600 MCTMT TAXES - Legal $577 $577 $577 $0 0.00%
01-60071-1800 MCTMT TAXES - Community Relations $312 $312 $436 ($124) -39.74%
01-60071-2050 MCTMT TAXES - Engineering $860 $860 $1,092 ($232) -26.98%
01-60071-2100 MCTMT TAXES - Public Safety $6,631 $6,631 $6,688 ($57) -0.86%
01-60071-2200 MCTMT TAXES - Island Operations $41 $41 $41 $0 0.00%
01-60071-2210 MCTMT TAXES - Grounds $2,407 $2,407 $2,234 $173 7.19%
01-60071-2220 MCTMT TAXES - Maintenance $1,132 $1,132 $1,304 ($172) -15.19%
01-60071-2230 MCTMT TAXES - Warehouse $590 $590 $590 $0 0.00%
01-60071-2240 MCTMT TAXES - Bus Operations $3,096 $3,096 $2,991 $105 3.39%
01-60071-2250 MCTMT TAXES - Motor Pool $753 $753 $753 $0 0.00%
01-60071-2300 MCTMT TAXES - Parks & Recreations $278 $278 $278 $0 0.00%
01-60071-2310 MCTMT TAXES - Permits & Film $206 $206 $206 $0 0.00%
01-60071-3400 MCTMT TAXES - Sportspark $905 $905 $1,038 ($133) -14.70%
$23,060 $23,060 $23,500 ($440) -1.91%

Health Insurance
01-60090-1050 HEALTH INSURANCE- ER - Administrative S $33,000 $33,569 $36,549 ($2,980) -8.88%

Page 25
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60090-1100 HEALTH INSURANCE- Executive $61,000 $61,939 $56,199 $5,740 9.27%
01-60090-1300 HEALTH INSURANCE - Finance $95,000 $98,063 $95,500 $2,563 2.61%
01-60090-1400 HEALTH INSURANCE - Human Resources $25,000 $25,815 $28,099 ($2,284) -8.85%
01-60090-1500 HEALTH INSURANCE-Information Technolog $40,000 $54,186 $39,301 $14,885 27.47%
01-60090-1600 HEALTH INSURANCE - Legal $25,000 $25,815 $28,100 ($2,285) -8.85%
01-60090-1800 HEALTH INSURANCE- Community Relations $18,000 $18,062 $19,650 ($1,588) -8.79%
01-60090-2050 HEALTH INSURANCE - Engineering $43,000 $43,877 $67,400 ($23,523) -53.61%
01-60090-2100 HEALTH INSURANCE- Public Safety $382,000 $382,813 $450,362 ($67,549) -17.65%
01-60090-2210 HEALTH INSURANCE- Grounds $150,000 $171,673 $155,864 $15,809 9.21%
01-60090-2220 HEALTH INSURANCE- Maintenance $40,000 $51,834 $53,423 ($1,589) -3.07%
01-60090-2230 HEALTH INSURANCE - Warehouse $34,000 $37,993 $41,288 ($3,295) -8.67%
01-60090-2240 HEALTH INSURANCE- Bus Operations $150,000 $167,222 $152,762 $14,460 8.65%
01-60090-2250 HEALTH INSURANCE - Motor Pool $40,000 $42,993 $42,991 $2 0.00%
01-60090-2300 HEALTH INSURANCE - Parks & Recreations $15,000 $18,062 $19,650 ($1,588) -8.79%
01-60090-2310 HEALTH INSURANCE - Permits & Film $8,000 $7,753 $8,449 ($696) -8.98%
01-60090-3400 HEALTH INSURANCE- Sportspark $33,000 $33,569 $36,549 ($2,980) -8.88%
$1,192,000 $1,275,238 $1,332,136 ($56,898) -4.46%

Dental/Vision
01-60091-1050 DENTAL/ VISION - Administrative Services $2,135 $2,135 $2,199 ($64) -3.00%
01-60091-1100 DENTAL/ VISION- Executive $5,981 $5,981 $5,010 $971 16.23%
01-60091-1300 DENTAL/ VISION- Finance $7,620 $7,620 $7,665 ($45) -0.59%
01-60091-1400 DENTAL/ VISION- Human Resources $2,108 $2,108 $2,172 ($64) -3.04%
01-60091-1500 DENTAL/ VISION- Information Technology $4,368 $4,368 $4,499 ($131) -3.00%
01-60091-1600 DENTAL/ VISION- Legal $1,639 $1,639 $1,688 ($49) -2.99%
01-60091-1800 DENTAL/ VISION- Community Relations $1,613 $1,613 $1,661 ($48) -2.98%
01-60091-2050 DENTAL/ VISION - Engineering $3,721 $3,721 $5,494 ($1,773) -47.65%
01-60091-2100 DENTAL/ VISION- Public Safety $27,484 $27,484 $28,179 ($695) -2.53%
01-60091-2210 DENTAL/ VISION - Grounds $1,613 $1,613 $994 $619 38.38%
01-60091-2220 DENTAL/ VISION - Maintenance $1,612 $1,612 $1,661 ($49) -3.04%
01-60091-2230 DENTAL/ VISION- Warehouse $2,756 $2,756 $2,838 ($82) -2.98%
01-60091-2240 DENTAL/ VISION - Bus Operations $6,450 $6,450 $5,494 $956 14.82%
01-60091-2250 DENTAL/ VISION - Motor Pool $965 $965 $994 ($29) -3.01%

Page 26
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60091-2300 DENTAL/ VISION - Parks & Recreations $1,612 $1,612 $1,661 ($49) -3.04%
01-60091-2310 DENTAL/ VISION - Permits & Film $496 $496 $511 ($15) -3.02%
01-60091-3400 DENTAL/ VISION- Sportspark $2,604 $2,604 $2,682 ($78) -3.00%
$74,777 $74,777 $75,402 ($625) -0.84%

Term Life /LTD (8% Increase)

01-60096-1050 TERM LIFE/LTD - Administrative Services $857 $857 $1,104 ($247) -28.82%
01-60096-1100 TERM LIFE/LTD- Executive $1,602 $1,602 $1,932 ($330) -20.60%
01-60096-1300 TERM LIFE/LTD- Finance $1,912 $1,912 $2,406 ($494) -25.84%
01-60096-1400 TERM LIFE/LTD- Human Resources $631 $631 $795 ($164) -25.99%
01-60096-1500 TERM LIFE/LTD- Information Technology $987 $987 $1,234 ($247) -25.03%
01-60096-1600 TERM LIFE/LTD- Legal $716 $716 $881 ($165) -22.99%
01-60096-1800 TERM LIFE/LTD- Community Relations $284 $284 $366 ($82) -28.87%
01-60096-2050 TERM LIFE/LTD - Engineering $1,050 $1,050 $1,691 ($641) -61.05%
01-60096-2100 TERM LIFE/LTD- Public Safety $10,088 $10,088 $13,144 ($3,056) -30.29%
01-60096-2210 TERM LIFE/LTD - Grounds $302 $302 $385 ($83) -27.48%
01-60096-2220 TERM LIFE/LTD - Maintenance $303 $303 $385 ($82) -27.06%
01-60096-2230 TERM LIFE/LTD- Warehouse $624 $624 $789 ($165) -26.44%
01-60096-2240 TERM LIFE/LTD - Bus Operations $1,171 $1,171 $1,514 ($343) -29.29%
01-60096-2250 TERM LIFE/LTD - Motor Pool $303 $303 $385 ($82) -27.06%
01-60096-2300 TERM LIFE/LTD - Parks & Recreations $327 $327 $409 ($82) -25.08%
01-60096-2310 TERM LIFE/LTD - Permits & Film $284 $284 $366 ($82) -28.87%
01-60096-3400 TERM LIFE/LTD- Sportspark $688 $688 $934 ($246) -35.76%
$22,129 $22,129 $28,720 ($6,591) -29.78%

Pension
01-60092-1050 PENSION - Administrative Services $33,468 $33,468 $36,833 ($3,365) -10.05%
01-60092-1100 PENSION- Executive $107,222 $107,222 $118,002 ($10,780) -10.05%
01-60092-1300 PENSION- Finance $80,455 $80,455 $88,543 ($8,088) -10.05%
01-60092-1400 PENSION- Human Resources $26,351 $26,351 $29,000 ($2,649) -10.05%
01-60092-1500 PENSION- Information Technology $43,156 $43,156 $47,494 ($4,338) -10.05%
01-60092-1600 PENSION- Legal $32,078 $32,078 $35,303 ($3,225) -10.05%
01-60092-1800 PENSION- Community Relations $11,046 $11,046 $12,156 ($1,110) -10.05%

Page 27
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60092-2050 PENSION - Engineering $47,443 $47,443 $66,356 ($18,913) -39.86%
01-60092-2100 PENSION- Public Safety $88,473 $88,473 $93,377 ($4,904) -5.54%
01-60092-2210 PENSION- Grounds $62,411 $62,411 $59,152 $3,259 5.22%
01-60092-2220 PENSION - Maintenance $28,605 $28,605 $33,920 ($5,315) -18.58%
01-60092-2230 PENSION- Warehouse $25,887 $25,887 $28,489 ($2,602) -10.05%
01-60092-2240 PENSION - Bus Operations $99,577 $99,577 $117,536 ($17,959) -18.04%
01-60092-2250 PENSION - Motor Pool $24,527 $24,527 $25,762 ($1,235) -5.04%
01-60092-2300 PENSION - Parks & Recreations $13,953 $13,953 $15,355 ($1,402) -10.05%
01-60092-2310 PENSION - Permits & Film $11,046 $11,046 $12,156 ($1,110) -10.05%
01-60092-3400 PENSION- Sportspark $22,057 $22,057 $24,274 ($2,217) -10.05%
$757,755 $757,755 $843,708 ($85,953) -11.34%

Othet Employee Benefits

01-60093-2210 FRINGE BENEFITS ANNUITY - Grounds $7,040 $7,040 $5,200 $1,840 26.14%
01-60094-2210 LEGAL SERVICES- Grounds $2,393 $2,393 $1,995 $398 16.63%
01-60094-2220 LEGAL SERVICES - Maintenance $480 $480 $480 $0 0.00%
01-60094-2240 LEGAL SERVICES - Bus Operations $1,680 $1,680 $1,560 $120 7.14%
01-60094-2250 LEGAL SERVICES - Motor Pool $360 $360 $360 $0 0.00%
01-60098-2220 SCHOLARSHIP AND EDUCATION - Maintena $480 $480 $480 $0 0.00%
01-60098-2240 SCHOLARSHIP AND EDUCATION - Bus Ope $1,680 $1,680 $1,560 $120 7.14%
01-60098-2250 SCHOLARSHIP AND EDUCATION - Motor Po $360 $360 $360 $0 0.00%
01-60099-2220 SUPPLEMENTAL BENEFITS - Maintenance $2,880 $2,880 $2,880 $0 0.00%
01-60099-2240 SUPPLEMENTAL BENEFITS - Bus Operations $10,080 $10,080 $9,360 $720 7.14%
01-60099-2250 SUPPLEMENTAL BENEFITS - Motor Pool $2,160 $2,160 $2,160 $0 0.00%
$29,593 $29,593 $26,395 $3,198 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%

Other Than Personal Services (OTPS) :
Insurance
01-60200-1000 INSURANCE - General $1,000,000 $1,000,000 $1,050,000 ($50,000) -5.00%
01-60200-2900 INSURANCE - Tramway $150,000 $150,000 $150,000 $0 0.00%

Page 28
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
$1,150,000 $1,150,000 $1,200,000 ($50,000) -4.35%

Professional Services
01-60220-1050 PROFESSIONAL SERVICES - Administrative $30,000 $10,000 $6,000 $4,000 40.00%
01-60220-1100 PROFESSIONAL SERVICES - Executive $36,000 $36,000 $68,000 ($32,000) -88.89%
01-60220-1120 PROFESSIONAL SERVICES - Urban Fellowsh $65,000 $65,000 $0 $65,000 -100.00%
01-60220-1300 PROFESSIONAL SERVICES - Finance $45,000 $31,500 $57,000 ($25,500) -80.95%
01-60220-1400 PROFESSIONAL SERVICES ADP - Payroll $51,000 $51,000 $54,000 ($3,000) -5.88%
01-60220-1500 PROFESSIONAL SERVICES - Information Tec $59,000 $59,000 $60,000 ($1,000) -1.69%
01-60220-1700 PROFESSIONAL SERVICES - Marketing/ Advn $6,000 $6,000 $6,000 $0 0.00%
01-60220-1800 PROFESSIONAL SERVICES - Community Rel $0 $0 $0 $0 0.00%
01-60220-2050 PROFESSIONAL SERVICES - Engineering $50,000 $18,000 $68,000 ($50,000) -277.78%
01-60220-2200 PROFESSIONAL SERVICES - Island Operation $2,400 $2,400 $15,000 ($12,600) -525.00%
01-60220-2210 PROFESSIONAL SERVICES - Grounds (Line S $0 $0 $0 $0 0.00%
01-60220-2900 PROFESSIONAL SERVICES- Tramway $0 $0 $0 $0 0.00%
01-60220-3000 PROFESSIONAL SERVICES - RI Locations Po $0 $0 $0 $0 0.00%
01-60220-3400 PROFESSIONAL SERVICES - Sportspark $36,000 $36,000 $44,000 ($8,000) -22.22%
01-60220-4000 PROFESSIONAL SERVICES - PM: Commercia $0 $0 $0 $0 0.00%
01-60220-5000 PROFESSIONAL SERVICES- PM Housing $100,000 $6,000 $100,000 ($94,000) -1566.67%
03-60220-1300 PROFESSIONAL SERVICES - Finance $0 $0 $0 $0 0.00%
$480,400 $320,900 $478,000 ($157,100) -48.96%

Marketing / Advertisting
01-60540-1000 MARKETING/ ADVERTISING - Administrativ $12,000 $6,000 $6,000 $0 0.00%
01-60540-1800 MARKETING/ ADVERTISING - Community R $9,000 $9,000 $20,000 ($11,000) -122.22%
01-60540-3400 MARKETING/ ADVERTISING - Sportspark $2,400 $2,400 $3,000 ($600) -25.00%
$23,400 $17,400 $29,000 ($11,600) -66.67%

Management Fees
01-60210-2900 MANAGEMENT FEES -Tramway $3,420,000 $3,397,200 $3,420,000 ($22,800) -0.67%
01-60210-6000 MANAGEMENT FEE - Motorgate $660,000 $660,000 $660,000 $0 0.00%
01-60310-2900 FRANCHISE FEE - Tramway $20,000 $20,000 $22,000 ($2,000) -10.00%
$4,100,000 $4,077,200 $4,102,000 ($24,800) -0.61%

Page 29
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change

Legal Services
01-60240-1600 LEGAL SERVICES- Legal $25,000 $25,000 $100,000 ($75,000) -300.00%
01-60240-4000 LEGAL SERVICES- PM Commercial $0 $0 $0 $0 0.00%
01-60240-5000 LEGAL SERVICES- PM Housing $0 $0 $0 $0 0.00%
01-60241-1600 LEGAL SERVICES - Human Resources $100,000 $100,000 $100,000 $0 0.00%
01-60242-1600 LEGAL SERVICES - PM Commercial $25,000 $25,000 $25,000 $0 0.00%
01-60243-1600 LEGAL SERVICES - PM Housing $100,000 $50,000 $150,000 ($100,000) -200.00%
01-60246-0000 SETTLEMENTS - General $0 $0 $0 $0 0.00%
03-60240-1200 LEGAL SERVICES - Development, Future $0 $0 $0 $0 0.00%
$250,000 $200,000 $375,000 ($175,000) -87.50%

Telecommunications
01-60400-1500 TELEPHONE $60,000 $58,200 $60,000 ($1,800) -3.09%
01-60401-1500 TELEPHONE LONG DISTANCE $1,000 $1,200 $1,000 $200 16.67%
01-60402-1500 TELEPHONE- CELL $28,000 $24,000 $28,000 ($4,000) -16.67%
01-60403-1500 MAINTENANCE- INTERNAL TELEPHONE S $6,000 $4,800 $6,000 ($1,200) -25.00%
01-60404-1500 INTERNET SERVICE PROVIDER- DATA LIN $20,000 $18,000 $20,000 ($2,000) -11.11%
01-60690-1500 WEB SITE HOSTING $10,000 $900 $10,000 ($9,100) -1011.11%
01-60700-1500 TV CABLE SERVICES $0 $0 $0 $0 0.00%
$125,000 $107,100 $125,000 ($17,900) -16.71%

Commercial Space Rent

01-61081-5100 Commercial Spaece rent $12,000 ($12,000)
$0 $0 $12,000 ($12,000)

Repairs & Maintenance

01-60407-5000 REPAIRS & MAINT PARKING METERS - PM $4,800 $4,800 $5,000 ($200) -4.17%
01-60408-3000 REPAIRS & MAINT POTHOLES / LINE STRIP $130,000 $130,000 $130,000 $0 0.00%
01-60410-2210 REPAIRS & MAINT SEWERS - Grounds $5,000 $5,000 $5,000 $0 0.00%
01-60410-2220 REPAIRS & MAINT SEWERS - Maintenance $5,000 $5,000 $5,000 $0 0.00%

Page 30
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60410-2240 REPAIRS & MAINT SEWERS - Bus Operations $5,000 $5,000 $5,000 $0 0.00%
01-60410-2900 REPAIRS & MAINT SEWERS - Tramway $0 $0 $0 $0 0.00%
01-60410-3000 REPAIRS & MAINT SEWERS - RI Locations P $10,000 $10,000 $10,000 $0 0.00%
01-60411-2200 REPAIRS & MAINT ISLAND FIXTURES - Isla $10,000 $10,000 $10,000 $0 0.00%
01-60411-2210 REPAIRS & MAINT ISLAND FIXTURES - Gro $10,000 $10,000 $10,000 $0 0.00%
01-60411-2220 REPAIR & MAINT ISLAND FIX - Maintenance $30,000 $30,000 $30,000 $0 0.00%
01-60411-6000 REPAIR & MAINT ISLAND FIX - Motorgate $0 $0 $0 $0 0.00%
01-60412-0000 REPAIRS & MAINT BUILDING - General $0 $0 $0 $0 0.00%
01-60412-1000 REPAIRS & MAINT BUILDING- Administrativ $5,000 $5,000 $5,000 $0 0.00%
01-60412-2200 REPAIRS & MAINT BUILDING - Island Opera $5,000 $5,000 $5,000 $0 0.00%
01-60412-2210 REPAIRS & MAINT BUILDING - Grounds $0 $0 $0 $0 0.00%
01-60412-2220 REPAIRS & MAINT BUILDING - Maintenance $5,000 $5,000 $5,000 $0 0.00%
01-60412-2240 REPAIRS & MAINT BUILDING- Bus Operatio $10,000 $10,000 $10,000 $0 0.00%
01-60412-2800 REPAIRS & MAINT BUILDING- AVAC $5,000 $5,000 $5,000 $0 0.00%
01-60412-2900 REPAIRS & MAINT BUILDING - Tramway $15,000 $15,000 $15,000 $0 0.00%
01-60412-3000 REPAIRS & MAINT BUILDING - RI Locations $20,000 $20,000 $20,000 $0 0.00%
01-60412-3400 REPAIRS & MAINT BUILDING - Sportspark $40,000 $40,000 $40,000 $0 0.00%
01-60412-4000 REPAIRS & MAINT BUILDING - PM Commer $0 $0 $0 $0 0.00%
01-60412-5000 REPAIRS & MAINT BUILDING - PM Housing $0 $0 $0 $0 0.00%
01-60412-6000 REPAIRS & MAINT BUILDING - Motorgate $6,000 $6,000 $6,000 $0 0.00%
01-60413-2100 REPAIRS & MAINT ELEVATORS - Public Saf $3,000 $3,000 $3,000 $0 0.00%
01-60413-2220 REPAIRS & MAINT ELEVATORS - Maintenan $12,000 $12,000 $12,000 $0 0.00%
01-60413-2900 REPAIRS & MAINT ELEVATORS-Tramway $4,800 $4,800 $15,000 ($10,200) -212.50%
01-60413-3000 REPAIRS & MAINT ELEVATORS-RI Location $15,000 $15,000 $15,000 $0 0.00%
01-60413-3400 REPAIRS & MAINT ELEVATORS- Sportspark $3,000 $3,000 $3,000 $0 0.00%
01-60414-1000 REPAIRS & MAINT OTHER - Administrative $3,600 $3,600 $4,000 ($400) -11.11%
01-60414-2220 REPAIRS & MAINT OTHER - Maintenance $6,000 $6,000 $6,000 $0 0.00%
01-60414-2240 REPAIRS & MAINT OTHER - Bus Operations $4,000 $4,000 $4,000 $0 0.00%
01-60414-3000 REPAIRS & MAINT OTHER - RI Locations Po $24,000 $24,000 $24,000 $0 0.00%
01-60414-3400 REPAIRS & MAINT OTHER- Sportspark $6,000 $6,000 $6,000 $0 0.00%
$402,200 $402,200 $413,000 ($10,800) -2.69%

Repairs & Maintenance Equipment

Page 31
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60440-1000 REPAIRS & MAINT EQUIP - Administrative $1,200 $1,200 $2,000 ($800) -66.67%
01-60440-2210 REPAIRS & MAINT EQUIP -Grounds $7,200 $7,200 $8,000 ($800) -11.11%
01-60440-2220 REPAIRS & MAINT EQUIPMENT - Maintenan $2,400 $2,400 $2,000 $400 16.67%
01-60440-2240 REPAIRS & MAINT EQUIP - Bus Operations $8,400 $8,400 $10,000 ($1,600) -19.05%
01-60440-2800 REPAIRS & MAINT EQUIPMENT - AVAC $6,000 $6,000 $6,000 $0 0.00%
01-60440-2900 REPAIRS & MAINT EQUIPMENT - Tramway $0 $0 $0 0.00%
$25,200 $25,200 $28,000 ($2,800) -11.11%

Other Repairs & Maintenance

01-60490-2210 TREES, SHRUBS & SOD- Grounds $105,000 $105,000 $120,000 ($15,000) -14.29%
$105,000 $105,000 $120,000 ($15,000) -14.29%

Vehicles Gas
01-60450-1050 VEHICLES GAS - Administrative Services $1,500 $1,500 $1,000 $500 33.33%
01-60450-2100 VEHICLES GAS - Public Safety $20,000 $20,000 $20,000 $0 0.00%
01-60450-2200 VEHICLES GAS - Island Operations $0 $0 $0 $0 0.00%
01-60450-2210 VEHICLES GAS - Grounds $15,000 $15,000 $15,000 $0 0.00%
01-60450-2220 VEHICLES GAS - Maintenance $4,000 $4,000 $4,000 $0 0.00%
01-60450-2230 VEHICLES GAS - Warehouse $2,800 $2,800 $2,000 $800 28.57%
01-60450-2240 VEHICLES GAS - Bus Operations $124,000 $124,000 $124,000 $0 0.00%
01-60450-2250 VEHICLES GAS - Motor Pool $0 $0 $0 $0 0.00%
01-60450-3400 VEHICLES GAS - Sportspark $1,000 $1,000 $1,000 $0 0.00%
$168,300 $168,300 $167,000 $1,300 0.77%

Vehicles Repair & Maintenance

01-60500-1050 VEHICLE REPAIRS & MAINT - Administrativ $1,200 $1,200 $1,000 $200 16.67%
01-60500-2100 VEHICLE REPAIR & MAINT- Public Safety $8,000 $8,000 $8,000 $0 0.00%
01-60500-2200 VEHICLE REPAIRS & MAINT - Island Operati $1,200 $1,200 $1,000 $200 16.67%
01-60500-2210 VEHICLE REPAIR & MAINT- Grounds $6,000 $6,000 $6,000 $0 0.00%
01-60500-2220 VEHICLE REPAIRS & MAINT. - Maintenance $6,000 $6,000 $6,000 $0 0.00%
01-60500-2230 VEHICLE REPAIRS & MAINT - Warehouse $2,400 $2,400 $2,000 $400 16.67%
01-60500-2240 VEHICLE REPAIR & MAINT- Bus Operations $48,000 $48,000 $48,000 $0 0.00%
01-60500-2250 VEHICLE REPAIRS & MAINT - Motor Pool $8,400 $8,400 $8,000 $400 4.76%

Page 32
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60500-3400 VEHICLE REPAIRS & MAINT - Sportspark $2,400 $2,400 $1,000 $1,400 58.33%
$83,600 $83,600 $81,000 $2,600 3.11%

Vehicles Parts
01-60640-2050 VEHICLES PARTS - Engineering $0 $0 $0 $0 0.00%
01-60640-2100 VEHICLES PARTS - Public Safety $6,000 $6,000 $6,000 $0 0.00%
01-60640-2210 VEHICLES PARTS - Grounds $3,000 $3,000 $3,000 $0 0.00%
01-60640-2230 VEHICLES PARTS - Warehouse $1,200 $1,200 $1,000 $200 16.67%
01-60640-2240 VEHICLES PARTS - Bus Operations $20,000 $20,000 $40,000 ($20,000) -100.00%
01-60640-2250 VEHICLES PARTS - Motor Pool $6,000 $6,000 $6,000 $0 0.00%
01-60640-3400 VEHICLES PARTS - Sportspark $1,000 $1,000 $1,000 $0 0.00%
$37,200 $37,200 $57,000 ($19,800) -53.23%

Equipment Lease
01-60300-1050 LEASED EQUIPMENT - Administrative Service $5,000 $5,000 $12,000 ($7,000) -140.00%
01-60300-2210 LEASED EQUIPMENT - Grounds $3,600 $3,600 $4,000 ($400) -11.11%
01-60300-2220 LEASED EQUIP- Maintenance $3,000 $3,000 $3,000 $0 0.00%
01-60300-2230 LEASED EQUIPMENT - Warehouse $1,200 $1,200 $1,000 $200 16.67%
01-60300-2240 LEASED EQUIP-Bus Operations $2,400 $2,400 $2,000 $400 16.67%
01-60300-2250 LEASED EQUIPMENT - Motor Pool $0 $0 $0 $0 0.00%
01-60300-2900 LEASED EQUIPMENT - Tramway $1,200 $1,200 $2,000 ($800) -66.67%
$16,400 $16,400 $24,000 ($7,600) -46.34%

Office Equipment Purchase

01-60470-1000 OFFICE EQUIP PURCHASE - Administrative $0 $0 $0 $0 0.00%
01-60470-1050 OFFICE EQUIP PURCHASE - Administrative S $2,400 $2,400 $2,000 $400 16.67%
01-60470-1100 OFFICE EQUIP PURCHASE - Executive $0 $0 $0 $0 0.00%
01-60470-1500 OFFICE EQUIP PURCH - Information Technolo $9,600 $9,600 $10,000 ($400) -4.17%
01-60470-2050 OFFICE EQUIP PURCH - Engineering $1,200 $1,200 $2,000 ($800) -66.67%
01-60470-2100 OFFICE EQUIP PURCH - Public Safety $3,000 $3,000 $3,000 $0 0.00%
01-60470-2210 OFFICE EQUIP PURCHASE - Grounds $0 $0 $0 $0 0.00%
01-60470-2230 OFFICE EQUIP PURCHASE - Warehouse $1,200 $1,200 $1,000 $200 16.67%
01-60470-2250 OFFICE EQUIP PURCHASE - Motor Pool $1,200 $1,200 $1,000 $200 16.67%

Page 33
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60470-2800 OFFICE EQUIP PURCHASE - AVAC $0 $0 $0 $0 0.00%
01-60470-2900 OFFICE EQUIP PURCH - Tramway $0 $0 $0 $0 0.00%
01-60470-3400 OFFICE EQUIP PURCHASE - Sportspark $1,200 $1,200 $1,000 $200 16.67%
$19,800 $19,800 $20,000 ($200) -1.01%

Equipment Purchases
01-60510-1050 EQUIPMENT PURCHASE - Administrative Ser $0 $0 $0 $0 0.00%
01-60510-1500 EQUIPMENT PURCHASE - Information Techn $0 $0 $0 $0 0.00%
01-60510-2050 EQUIPMENT PURCHASE - Engineering $0 $0 $0 $0 0.00%
01-60510-2100 EQUIPMENT PURCHASE - Public Safety $18,800 $18,800 $18,000 $800 4.26%
01-60510-2210 EQUIPMENT PURCHASE - Grounds $6,000 $6,000 $6,000 $0 0.00%
01-60510-2220 EQUIPMENT PURCHASE - Maintenance $2,400 $2,400 $4,000 ($1,600) -66.67%
01-60510-2230 EQUIPMENT PURCHASE - Warehouse $6,000 $6,000 $6,000 $0 0.00%
01-60510-2240 EQUIPMENT PURCHASE- Bus Operations $4,200 $4,200 $6,000 ($1,800) -42.86%
01-60510-2250 EQUIPMENT PURCHASE - Motor Pool $4,200 $4,200 $6,000 ($1,800) -42.86%
01-60510-2900 EQUIPMENT PURCHASE - Tramway $6,000 $6,000 $6,000 $0 0.00%
01-60510-3400 EQUIPMENT PURCHASE - Sportspark $6,000 $6,000 $8,000 ($2,000) -33.33%
$53,600 $53,600 $60,000 ($6,400) -11.94%

Other Equipment Purchases

01-60660-1500 COMPUTER PURCHASE SOFTWARE $12,000 $12,000 $6,000 $6,000 50.00%
01-60780-1500 COMPUTER PURCHASES $6,000 $6,000 $6,000 $0 0.00%
$18,000 $18,000 $12,000 $6,000 33.33%

Exterminator
01-60250-1000 EXTERMINATOR - Admin $2,100 $2,100 $2,000 $100 4.76%
01-60250-2100 EXTERMINATOR - Public Safety $2,100 $2,100 $2,000 $100 4.76%
01-60250-2210 EXTERMINATOR - Grounds $5,100 $5,100 $5,000 $100 1.96%
01-60250-2230 EXTERMINATOR - Warehouse $2,100 $2,100 $2,000 $100 4.76%
01-60250-2240 EXTERMINATOR - Bus Operations $2,100 $2,100 $2,000 $100 4.76%
01-60250-2250 EXTERMINATOR - Motor Pool $1,500 $1,500 $2,000 ($500) -33.33%
01-60250-2900 EXTERMINATOR - Tramway $0 $0 $0 $0 0.00%
01-60250-3400 EXTERMINATOR - Sportspark $2,100 $2,100 $2,000 $100 4.76%

Page 34
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
$17,100 $17,100 $17,000 $100 0.58%

Uniforms
01-60290-1000 UNIFORMS - Administrative $3,000 $3,000 $3,000 $0 0.00%
01-60290-2100 UNIFORMS - Public Safety $26,100 $26,100 $26,000 $100 0.38%
01-60290-2200 UNIFORMS - Island Operations $1,500 $1,500 $2,000 ($500) -33.33%
01-60290-2210 UNIFORMS - Grounds $3,900 $3,900 $4,000 ($100) -2.56%
01-60290-2220 UNIFORMS - Maintenance $1,750 $1,750 $2,000 ($250) -14.29%
01-60290-2230 UNIFORMS - Warehouse $1,550 $1,550 $1,000 $550 35.48%
01-60290-2240 UNIFORMS - Bus Operations $5,400 $5,400 $5,000 $400 7.41%
01-60290-2250 UNIFORMS - Motor Pool $1,800 $1,800 $2,000 ($200) -11.11%
01-60290-2900 UNIFORMS - Tramway $0 $0 $0 $0 0.00%
01-60290-3400 UNIFORMS - Sportspark $1,800 $1,800 $2,000 ($200) -11.11%
01-60291-2100 UNIFORMS CLEANING- Public Safety $10,500 $10,500 $12,000 ($1,500) -14.29%
01-60291-2200 UNIFORMS CLEANING - Island Operations $300 $300 $0 $300 100.00%
01-60291-2210 UNIFORMS CLEANING - Grounds $3,000 $3,000 $3,000 $0 0.00%
01-60291-2220 UNIFORMS CLEANING - Maintenance $1,250 $1,250 $1,000 $250 20.00%
01-60291-2230 UNIFORMS CLEANING - Warehouse $900 $900 $1,000 ($100) -11.11%
01-60291-2240 UNIFORMS CLEANING - Bus Operations $3,000 $3,000 $3,000 $0 0.00%
01-60291-2250 UNIFORMS CLEANING - Motor Pool $1,200 $1,200 $1,000 $200 16.67%
01-60291-2900 UNIFORMS CLEANING - Tramway $0 $0 $0 $0 0.00%
$66,950 $66,950 $68,000 ($1,050) -1.57%

Light, Power, Heat

01-60320-1000 LIGHT, POWER, HEAT - Admin $42,000 $42,000 $42,000 $0 0.00%
01-60320-2100 LIGHT, POWER, HEAT - Public Safety $60,000 $60,000 $60,000 $0 0.00%
01-60320-2240 LIGHT, POWER, HEAT - Bus Operations $24,000 $24,000 $24,000 $0 0.00%
01-60320-2800 LIGHT, POWER, HEAT - AVAC $12,000 $12,000 $12,000 $0 0.00%
01-60320-2900 LIGHT, POWER, HEAT - Tramway $120,000 $60,000 $150,000 ($90,000) -100.00%
01-60320-3000 LIGHT, POWER, HEAT - RI Locations Points $180,000 $180,000 $180,000 $0 0.00%
01-60320-3400 LIGHT, POWER, HEAT - Sportspark $90,000 $90,000 $90,000 $0 0.00%
01-60320-4000 LIGHT, POWER, HEAT - PM Commercial $24,000 $60,000 $24,000 $36,000 60.00%
01-60320-6000 LIGHT, POWER, HEAT - Motorgate $60,000 $60,000 $60,000 $0 0.00%

Page 35
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
$612,000 $588,000 $642,000 ($54,000) -9.18%

Water & Sewer

01-60322-1050 WATER & SEWER - Administrative Services $0 $0 $0 $0 0.00%
01-60322-2100 WATER & SEWER - Public Safety $0 $0 $0 $0 0.00%
01-60322-2200 WATER & SEWER - Island Operations $2,000 $2,000 $6,000 ($4,000) -200.00%
01-60322-2210 WATER & SEWER - Grounds $0 $0 $0 $0 0.00%
01-60322-2220 WATER & SEWER - Maintenance $0 $0 $0 $0 0.00%
01-60322-2230 WATER & SEWER - Warehouse $0 $0 $0 $0 0.00%
01-60322-2240 WATER & SEWER - Bus Operations $0 $0 $0 $0 0.00%
01-60322-2250 WATER & SEWER - Motor Pool $0 $0 $0 $0 0.00%
01-60322-2900 WATER & SEWER - Tramway $3,600 $3,600 $3,000 $600 -100.00%
01-60322-3400 WATER & SEWER - Sportspark $3,000 $3,000 $3,000 $0 0.00%
$8,600 $8,600 $12,000 ($3,400) -39.53%

Office Supplies
01-60420-1000 OFFICE SUPPLIES - Administrative $8,000 $8,000 $10,000 ($2,000) -25.00%
01-60420-1050 OFFICE SUPPLIES - Administrative Services $0 $0 $0 $0 0.00%
01-60420-1100 OFFICE SUPPLIES - Executive $0 $0 $0 $0 0.00%
01-60420-1500 OFFICE SUPPLIES - Information Technology $3,000 $3,000 $3,000 $0 0.00%
01-60420-1600 OFFICE SUPPLIES - Legal $600 $600 $600 $0 0.00%
01-60420-1800 OFFICE SUPPLIES- Community Relations $300 $300 $300 $0 0.00%
01-60420-2050 OFFICE SUPPLIES - Engineering $300 $300 $300 $0 0.00%
01-60420-2100 OFFICE SUPPLIES - Public Safety $4,000 $4,000 $4,000 $0 0.00%
01-60420-2200 OFFICE SUPPLIES - Island Operations $0 $0 $0 $0 0.00%
01-60420-2230 OFFICE SUPPLIES - Warehouse $0 $0 $0 $0 0.00%
01-60420-2240 OFFICE SUPPLIES - Bus Operations $300 $300 $300 $0 0.00%
01-60420-2900 OFFICE SUPPLIES - Tramway $0 $0 $0 $0 0.00%
01-60420-3400 OFFICE SUPPLIES - Sportspark $600 $600 $500 $100 16.67%
$17,100 $17,100 $19,000 ($1,900) -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
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60430-1050 PARTS & SUPPLY - Administrative Services $0 $0 $0 $0 0.00%
01-60430-1500 PARTS & SUPPLIES - Information Technology $3,600 $3,600 $4,000 ($400) -11.11%
01-60430-1514 PARTS & SUPPLIES - Access Control $7,500 $7,500 $7,500 $0 0.00%
01-60430-1800 PARTS & SUPPLIES - Community Relations $3,000 $3,000 $5,000 ($2,000) -66.67%
01-60430-2050 PARTS & SUPPLY - Engineering $800 $800 $1,500 ($700) -87.50%
01-60430-2100 PARTS & SUPPLIES - Public Safety $3,000 $3,000 $3,000 $0 0.00%
01-60430-2200 PARTS & SUPPLIES - Island Operations $6,000 $6,000 $6,000 $0 0.00%
01-60430-2210 PARTS & SUPPLIES - Grounds $36,000 $36,000 $36,000 $0 0.00%
01-60430-2220 PARTS & SUPPLIES - Maintenance $36,000 $36,000 $36,000 $0 0.00%
01-60430-2230 PARTS & SUPPLIES - Warehouse $42,000 $42,000 $40,000 $2,000 4.76%
01-60430-2240 PARTS & SUPPLIES - Bus Operations $6,000 $6,000 $6,000 $0 0.00%
01-60430-2250 PARTS & SUPPLIES - MotorPool $3,000 $3,000 $3,000 $0 0.00%
01-60430-2800 PARTS & SUPPLIES - AVAC $38,000 $38,000 $38,000 $0 0.00%
01-60430-2900 PARTS & SUPPLIES - Tramway $0 $0 $0 $0 0.00%
01-60430-3000 PARTS & SUPPLIES - RI Locations Points $6,000 $6,000 $6,000 $0 0.00%
01-60430-3400 PARTS & SUPPLIES - Sportspark $12,000 $12,000 $12,000 $0 0.00%
01-60430-6000 PARTS & SUPPLY - Motorgate $6,000 $6,000 $6,000 $0 0.00%
PARTS & SUPPLY - Motor Pool $210,700 $210,700 $212,000 ($1,300) -0.62%

Service Maintenance Agreement

01-60750-0000 SERVICE MAINTENANCE AGREE - General $11,200 $11,200 $15,000 ($3,800) -33.93%
01-60750-1300 SERVICE MAINTENANCE AGREE - Finance $11,500 $11,500 $12,000 ($500) -4.35%
01-60750-1500 SERVICE MAINTENANCE AGREEMENT- C $12,000 $12,000 $12,000 $0 0.00%
01-60750-1514 SERVICE MAINTENANCE AGREE - Access C $6,600 $6,600 $7,000 ($400) -6.06%
01-60750-2050 SERVICE MAINTENANCE AGREE - Engineer $6,000 $6,000 $6,000 $0 0.00%
01-60750-2100 SERVICE MAINTENANCE AGREE - Public Sa $7,200 $7,200 $7,000 $200 2.78%
01-60750-2240 SERVICE MAINTENANCE AGREE - Bus Ope $5,000 $5,000 $10,000 ($5,000) -100.00%
01-60750-2800 SERVICE MAINTENANCE AGREE - AVAC $600 $600 $1,000 ($400) -66.67%
01-60750-2900 SERVICE MAINTENANCE AGREE - Tramway $0 $0 $0 $0 0.00%
01-60750-3000 SERVICE MAINTENANCE AGREE - RI Locat $2,400 $2,400 $2,000 $400 -100.00%
01-60750-3400 SERVICE MAINTENANCE AGREE - Sportspa $8,000 $8,000 $8,000 $0 0.00%
$70,500 $70,500 $80,000 ($9,500) -13.48%

Page 37
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
Employee Travel & Meal
01-60520-1000 EMPL TRV & MEAL - Administrative $1,200 $1,200 $0 $1,200 100.00%
01-60520-1050 EMPL TRV & MEAL - Administrative Services $0 $0 $0 $0 0.00%
01-60520-1100 EMPL TRV & MEAL- Executive $3,600 $3,600 $600 $3,000 83.33%
01-60520-1300 EMPL TRV & MEAL- Finance $3,100 $3,100 $0 $3,100 100.00%
01-60520-1400 EMPL TRV & MEAL- Human Resources $900 $900 $0 $900 100.00%
01-60520-1500 EMPL TRV & MEAL- Information Technology $2,000 $2,000 $1,000 $1,000 50.00%
01-60520-1600 EMPL TRV & MEAL- Legal $900 $900 $1,000 ($100) -11.11%
01-60520-1800 EMPL TRV & MEAL- Community Relations $300 $300 $0 $300 100.00%
01-60520-2000 EMPL TRV & MEAL- Operations $600 $600 $0 $600 100.00%
01-60520-2050 EMPL TRV & MEAL- Engineering $1,200 $1,200 $0 $1,200 100.00%
01-60520-2100 EMPL TRV & MEAL- Public Safety $2,000 $2,000 $600 $1,400 70.00%
01-60520-2200 EMPL TRV & MEAL - Island Operations $0 $0 $0 $0 0.00%
01-60520-2210 EMPL TRV & MEAL- Grounds $0 $0 $0 $0 0.00%
01-60520-2220 EMPL TRV & MEAL- Maintenance $0 $0 $0 $0 0.00%
01-60520-2230 EMPL TRV & MEAL - Warehouse $0 $0 $0 $0 0.00%
01-60520-2240 EMPL TRV & MEAL- Bus Operations $1,500 $1,500 $0 $1,500 100.00%
01-60520-2250 EMPL TRV & MEAL - Motor Pool $0 $0 $0 $0 0.00%
01-60520-3400 EMPL TRV & MEAL - Sportspark $200 $200 $0 $200 100.00%
$17,500 $17,500 $3,200 $14,300 81.71%

Employee Training
01-60530-1000 EMPLOYEE TRAINING - Administrative $1,200 $1,200 $1,000 $200 16.67%
01-60530-1050 EMPLOYEE TRAINING - Administrative Servi $1,200 $1,200 $1,000 $200 16.67%
01-60530-1100 EMPLOYEE TRAINING - Executive $1,200 $1,200 $500 $700 58.33%
01-60530-1300 EMPLOYEE TRAINING - Finance $3,600 $3,600 $2,900 $700 19.44%
01-60530-1400 EMPLOYEE TRAINING - Human Resources $1,000 $1,000 $1,000 $0 0.00%
01-60530-1500 EMPLOYEE TRAINING - Information Technol $3,800 $3,800 $5,000 ($1,200) -31.58%
01-60530-1600 EMPLOYEE TRAINING - Legal $3,500 $3,500 $3,500 $0 0.00%
01-60530-1800 EMPLOYEE TRAINING - Community Relation $300 $300 $500 ($200) -66.67%
01-60530-2050 EMPLOYEE TRAINING - Engineering $3,800 $3,800 $4,000 ($200) -5.26%
01-60530-2100 EMPLOYEE TRAINING - Public Safety $14,600 $14,600 $15,000 ($400) -2.74%
01-60530-2200 EMPLOYEE TRAINING - Island Operations $600 $600 $500 $100 16.67%

Page 38
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60530-2210 EMPLOYEE TRAINING - Grounds $7,800 $7,800 $12,000 ($4,200) -53.85%
01-60530-2220 EMPLOYEE TRAINING - Maintenance $1,200 $1,200 $1,000 $200 16.67%
01-60530-2230 EMPLOYEE TRAINING - Warehouse $1,200 $1,200 $1,000 $200 16.67%
01-60530-2240 EMPLOYEE TRAINING - Bus Operations $8,400 $8,400 $8,500 ($100) -1.19%
01-60530-2250 EMPLOYEE TRAINING - Motor Pool $0 $0 $0 $0 0.00%
01-60530-2900 EMPLOYEE TRAINING - Tramway $0 $0 $0 $0 0.00%
01-60530-3400 EMPLOYEE TRAINING - Sportspark $3,000 $3,000 $7,000 ($4,000) -133.33%
$56,400 $56,400 $64,400 ($8,000) -14.18%

Shipping
01-60550-1000 POSTAGE - Administrative $8,600 $8,600 $10,000 ($1,400) -16.28%
01-60550-1050 POSTAGE - Administrative Services $0 $0 $0 $0 0.00%
01-60551-1050 SHIPPING - Administrative Services $200 $200 $0 $200 100.00%
01-60551-1400 SHIPPING - Human Resources $200 $200 $0 $200 100.00%
01-60551-1800 SHIPPING - Community Relations $200 $200 $0 $200 100.00%
01-60551-2050 SHIPPING - Engineering $200 $200 $0 $200 100.00%
01-60551-2100 SHIPPING - Public Safety $200 $200 $0 $200 100.00%
01-60551-2200 SHIPPING - Island Operations $200 $200 $0 $200 100.00%
01-60551-2210 SHIPPING - Grounds $200 $200 $0 $200 100.00%
01-60551-2230 SHIPPING - Warehouse $200 $200 $0 $200 100.00%
01-60551-2240 SHIPPING - Bus Operations $200 $200 $0 $200 100.00%
01-60551-2250 SHIPPING - Motor Pool $200 $200 $0 $200 100.00%
01-60551-2800 SHIPPING - AVAC $200 $200 $0 $200 100.00%
01-60551-2900 SHIPPING - Tramway $0 $0 $0 $0 0.00%
01-60551-3400 SHIPPING - Sportspark $200 $200 $0 $200 100.00%
01-60552-1000 UPS SHIPPING - Administrative $600 $600 $1,000 ($400) -66.67%
01-60552-1500 UPS SHIPPING - Information Technology $1,800 $1,800 $0 $1,800 0.00%
$13,400 $13,400 $11,000 $2,400 17.91%

Subscriptions / Membership
01-60560-1000 SUBSCRIPTIONS / MEMBERSHIP- Administr $3,000 $3,000 $0 $3,000 100.00%
01-60560-1050 SUBSCRIPTIONS/ MEMBERSHIP - Administr $0 $0 $0 $0 0.00%
01-60560-1300 SUBSCRIPTIONS/ MEMBERSHIP - Finance $1,000 $1,000 $0 $1,000 100.00%

Page 39
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change
01-60560-1600 SUBSCRIPTIONS/ MEMBERSHIP - Legal $10,500 $10,500 $8,400 $2,100 20.00%
01-60560-2050 SUBSCRIPTIONS/ MEMBERSHIP - Engineerin $300 $300 $0 $300 100.00%
01-60560-2100 SUBSCRIPTIONS/ MEMBERSHIP - Public Saf $900 $900 $0 $900 100.00%
$15,700 $15,700 $8,400 $7,300 46.50%

Other Expenses
01-60570-0000 BANK CHARGES - General $19,200 $19,200 $18,000 $1,200 6.25%
01-60580-1000 MISCELLANEOUS - Administrative $20,000 $20,000 $16,000 $4,000 20.00%
01-60580-1050 MISCELLANEOUS - Administrative Services $0 $0 $0 $0 0.00%
01-60580-1500 MISCELLANEOUS - Information Technology $0 $0 $0 $0 0.00%
01-60580-1800 MISCELLANEOUS - Community Relations $0 $0 $0 $0 0.00%
01-60580-2050 MISCELLANEOUS - Engineering $0 $0 $0 $0 0.00%
01-60580-2100 MISCELLANEOUS - Public Safety $4,000 $4,000 $4,000 $0 0.00%
01-60580-2200 MISCELLANEOUS - Island Operations $0 $0 $0 $0 0.00%
01-60580-2210 MISCELLANEOUS - Grounds $2,000 $2,000 $2,000 $0 0.00%
01-60580-2220 MISCELLANEOUS - Maintenance $0 $0 $0 $0 0.00%
01-60580-2230 MISCELLANEOUS - Warehouse $0 $0 $0 $0 0.00%
01-60580-2240 MISCELLANEOUS - Bus Operations $600 $600 $0 $600 100.00%
01-60580-2250 MISCELLANEOUS - Motor Pool $0 $0 $0 $0 0.00%
01-60580-3400 MISCELLANEOUS - Sportspark $600 $600 $0 $600 100.00%
01-60630-1300 BAD DEBT EXPENSE $0 $0 $0 $0 0.00%
01-60790-1400 MTA METRO CARD PURCHASE- HR $16,800 $16,800 $16,000 $800 4.76%
01-60790-2900 MTA METRO CARD PURCHASE - Tramway $0 $0 $0 $0 0.00%
02-61750-1000 PUBLIC PURPOSE GRANTS $275,000 $275,000 $275,000 $0 0.00%
$338,200 $338,200 $331,000 $7,200 2.13%

Island Evenst - Community Relations

01-60681-1800 ISLAND EVENTS - Community Relations $79,000 $79,000 $80,000 ($1,000) -1.27%
01-60681-2100 ISLAND EVENTS - Public Safety $6,000 $6,000 $5,000 $1,000 16.67%
$85,000 $85,000 $85,000 $0 0.00%

$8,587,250 $8,307,050 $8,856,000 ($548,950) -6.61%

$18,654,564 $18,420,764 $19,257,565 ($836,800) -4.54%

Page 40
 The Roosevelt Island Operating Corporation (RIOC)
Budget Variance Report
Approved Budget 2014
Variance
Projected Approved Approved Favorable Variance
2013 Budget 2013 Budget 2014 (Unfavorable) % Change

NET INCOME Before Depreciation: $3,084,936 $3,202,745 $3,065,435 ($137,309) -4.29%

Depreciation Expenses
03-70000-0000 DEPRECN EXPENSE OFFICE FURNITURE, F $72,000 $72,000 $74,000 ($2,000) -2.78%
03-70010-0000 DEPRCN EXPENSES BUILDINGS $694,000 $694,000 $708,000 ($14,000) -2.02%
03-70020-0000 DEPRCN EXPENSES BUILDINGS IMPROVEM $641,000 $641,000 $654,000 ($13,000) -2.03%
03-70030-0000 DEPRECN EXPENSES INFRASTRUCTURE $1,155,000 $1,155,000 $1,178,000 ($23,000) -1.99%
03-70040-0000 DEPRECN EXPENSES SEAWALL $64,000 $64,000 $65,000 ($1,000) -1.56%
03-70100-0000 DEPRECN EXPENSE VEHICLES $56,000 $56,000 $57,000 ($1,000) -1.79%
03-70400-0000 DEPRECN EXPENSE BUSES $380,000 $380,000 $388,000 ($8,000) -2.11%
03-70600-0000 DEPRECN EXPENSE LANDMARKS $303,000 $303,000 $309,000 ($6,000) -1.98%
03-70800-0000 DEPRECN EXPENSE EQUIPMENT $212,000 $212,000 $216,000 ($4,000) -1.89%
$3,577,000 $3,577,000 $3,649,000 ($72,000) -2.01%

NET INCOME/(LOSS) Including Depreciation: ($492,064) ($374,255) ($583,565) ($209,309) -55.93%

Page 41
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
(-) 01-60200-1000-INSURANCE - General
Automobile $190,000
General Liability (including Tram) $730,000
Property (Including Equipment) - (excluding Tram) $325,000
Reserve for Deductible Payments $50,000
Boiler & Machinery $10,000
Director's & Officers Liability $25,000
Tram Liability Portion - Resposibilty of Operator ($280,000)
Total 01-60200-1000-INSURANCE - General $1,050,000
(-) 01-60200-2900-INSURANCE - Tramway
Property only (liability resposible by operator) $150,000
Total 01-60200-2900-INSURANCE - Tramway $150,000
(-) 01-60220-1050-PROFESSIONAL SERVICES - Administrative Services
Document Scanning Services $6,000
Total 01-60220-1100-PROFESSIONAL SERVICES - Administrative Services $6,000
(-) 01-60220-1100-PROFESSIONAL SERVICES - Executive
Public Relations Consultant $48,000
Green Energy Consulting $20,000
Total 01-60220-1100-PROFESSIONAL SERVICES - Executive $68,000
(-) 01-60220-1120-PROFESSIONAL SERVICES - Urban Fellowship Scholarship
National Urban Scholarship $0
Total 01-60220-1120-PROFESSIONAL SERVICES - Urban Fellowship Scholarship $0
(-) 01-60220-1300-PROFESSIONAL SERVICES - Finance
Annual Audit Fee $32,000
Blackbaud Annual Maintenance & Cloud Hosting Fees $25,000
Total 01-60220-1300-PROFESSIONAL SERVICES - Finance $57,000
(-) 01-60220-1400-PROFESSIONAL SERVICES ADP - Payroll
ADP Payroll Processing $50,000
FSA Processing $4,000
Total 01-60220-1400-PROFESSIONAL SERVICES ADP - Payroll $54,000
(-) 01-60220-1500-PROFESSIONAL SERVICES - Information Technology
Media Images - Annual Bandwith Storage $6,000
Media Images - Monthly Live Streaming $4,000
Media Images - Web Captioning - meetings 8 @$800/meeting $6,000
Disaster Recovery Services $38,000
Network Support Services - On Call $6,000
Total 01-60220-1500-PROFESSIONAL SERVICES - Information Technology $60,000
(-) 01-60220-1700-PROFESSIONAL SERVICES - Marketing/ Advng/ PR
Marketing - Misc Events $6,000
Total 01-60220-1700-PROFESSIONAL SERVICES - Marketing/ Advng/ PR $6,000
(-) 01-60220-2050-PROFESSIONAL SERVICES - Engineering
Engineering Consultant - partime $68,000

Page 42
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Total 01-60220-2050-PROFESSIONAL SERVICES - Engineering $68,000
(-) 01-60220-2200-PROFESSIONAL SERVICES - Island Operations
CAD Consulting Services $12,000
Drivers Certifications - Island Operations $3,000
Total 01-60220-2200-PROFESSIONAL SERVICES - Island Operations $15,000
(-) 01-60220-3400-PROFESSIONAL SERVICES - Sportspark
Monthly Pool Servicing $6,000
Lifeguard Certifications $2,000
Swim Classes $6,000
Basketball Refereeing Services $24,000
Aerobic Classes $6,000
Total 01-60220-3400-PROFESSIONAL SERVICES - Sportspark $44,000
(-) 01-60220-4000-PROFESSIONAL SERVICES - PM: Commercial
Main Street Development - Master Lease $0
Total 01-60220-4000-PROFESSIONAL SERVICES - PM: Commercial $0
(-) 01-60220-5000-PROFESSIONAL SERVICES- PM Housing
Real Estate Consulting - Westview/Rivercross $100,000
Total 01-60220-5000-PROFESSIONAL SERVICES- PM Housing $100,000
(-) 01-60540-1000-MARKETING/ ADVERTISING - Administrative
Advertising - Events $3,000
Main Street Wire (Admin) $3,000
Total 01-60540-1000-MARKETING/ ADVERTISING - Administrative $6,000
(-) 01-60540-1800-MARKETING/ ADVERTISING - Community Relations
General Advertising - Promotion of FDR Memorial & Southpoint $11,000
Main Street Wire (Community Relations) $3,000
Printing (Banners/Posters/Calenders) $6,000
Total 01-60540-1800-MARKETING/ ADVERTISING - Community Relations $20,000
(-) 01-60540-3400-MARKETING/ ADVERTISING - Sportspark
Main Street Wire (Sportpark) $3,000
Total 01-60540-3400-MARKETING/ ADVERTISING - Sportspark $3,000
(-) 01-60210-2900-MANAGEMENT FEES -Tramway
POMA $283,100/month (includes all operating expenses plus liability insurance) $3,400,000
Bonding Insurance Fee 20,000
Total 01-60210-2900-MANAGEMENT FEES -Tramway $3,420,000
(-) 01-60210-6000-MANAGEMENT FEE - Motorgate
Central Parking - averaging $55,000/mth $660,000
Total 01-60210-6000-MANAGEMENT FEE - Motorgate $660,000
(-) 01-60310-2900-FRANCHISE FEE - Tramway
Franchise Fee - 1/2% $4,400,000 $22,000
Total 01-60310-2900-FRANCHISE FEE - Tramway $22,000
(-) 01-60240-1600-LEGAL SERVICES- Legal

Page 43
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Reduced Reserve from $75,000 to $25,000 - trend for last 3 years $100,000
Total 01-60240-1600-LEGAL SERVICES- Legal $100,000
(-) 01-60241-1600-LEGAL SERVICES - Human Resources
Increase @ 2009/2010 Amount (legal) to $100,000 - 3 union contracts expiring $100,000
Total 01-60241-1600-LEGAL SERVICES - Human Resources $100,000
(-) 01-60242-1600-LEGAL SERVICES - PM Commercial
Reduce Reserve from $100,000 to $25,000 - Master Lease Concluded $25,000
Total 01-60242-1600-LEGAL SERVICES - PM Commercial $25,000
(-) 01-60243-1600-LEGAL SERVICES - PM Housing
ST 7-9, Westview, Rivercross $150,000
Total 01-60243-1600-LEGAL SERVICES - PM Housing $150,000
(-) 01-60400-1500-TELEPHONE
Verizon - DSL Line $7,800
Verizon - Info Hot Line $3,000
Verizon - Local Service $48,000
Verizon - Motorgate Pay Phone $1,200
Total 01-60400-1500-TELEPHONE $60,000
(-) 01-60401-1500-TELEPHONE LONG DISTANCE
ATT - Averaging $80/mth $1,000
Total 01-60401-1500-TELEPHONE LONG DISTANCE $1,000
(-) 01-60402-1500-TELEPHONE - CELL
Nextel - averaging $2,250/month $28,000
Total 01-60401-1500-TELEPHONE LONG DISTANCE $28,000
(-) 01-60403-1500-MAINTENANCE- INTERNAL TELEPHONE SYSTEM HARDWARE
Annual Maintenance - CBS Whitcom $4,800
Phone System Equipment $1,200
Total 01-60403-1500-MAINTENANCE- INTERNAL TELEPHONE SYSTEM HARDWA $6,000
(-) 01-60404-1500-INTERNET SERVICE PROVIDER- DATA LINE
Covad - Internet Data Line $4,100
Verizon - AVAC DSL Line $90/mnth $1,100
Verizon - PSD DSL Line $125/mnth $1,500
Verizon - ENG. DSL Line $90/mnth $1,100
Verizon - 591. DSL Line $415/mnth $5,000
Verizon - BRIDGE Lic. REC.. DSL Line $130/mnth $1,600
Verizon - SPORTSPARK DSL Line $230/mnth $2,800
Verizon - WAREHOUSE DSL Line $230/mnth $2,800
Total 01-60404-1500-INTERNET SERVICE PROVIDER- DATA LINE $20,000
(-) 01-60690-1500-WEB SITE HOSTING
EZ Facility $4,000
Grand Central Network $6,000
Total 01-60690-1500-WEB SITE HOSTING $10,000

Page 44
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
(-) 01-60407-5000-REPAIR & MAINT PARKING METER - PM: Housing
Parking Meter Preventive Maintenance $2,500
Replacement Cards est. 2@$1,200 $2,500
Total 01-60407-5000-REPAIR & MAINT PARKING METER - PM: Housing $5,000
(-) 01-60408-3000-REPAIRS & MAINT POTHOLES - RI Locations Points
Reserve to remain for Potholes@ $100,000 $100,000
Reserve to remain for Line Striping @ $30,000 (trans. from Professional services) $30,000
Total 01-60408-3000-REPAIRS & MAINT POTHOLES - RI Locations Points $130,000
(-) 01-60410-2210-REPAIRS & MAINT SEWERS - Grounds
Reserve to remain @ $5,000 $5,000
Total 01-60410-2210-REPAIRS & MAINT SEWERS - Grounds $5,000
(-) 01-60410-2220-REPAIRS & MAINT SEWERS - Maintenance
Reserve to remain @ $5,000 $5,000
Total 01-60410-2220-REPAIRS & MAINT SEWERS - Maintenance $5,000
(-) 01-60410-2240-REPAIRS & MAINT SEWERS - Bus Operations
Reserve to remain @ $5,000 $5,000
Total 01-60410-2240-REPAIRS & MAINT SEWERS - Bus Operations $5,000
(-) 01-60410-3000-REPAIRS & MAINT SEWERS - RI Locations Points
Reserve to remain @ $10,000 $10,000
Total 01-60410-3000-REPAIRS & MAINT SEWERS - RI Locations Points $10,000
(-) 01-60411-2200-REPAIRS & MAINT ISLAND FIXTURES - Island Operations
Reserve to remain @ $10,000 $10,000
Total 01-60411-2200-REPAIRS & MAINT ISLAND FIXTURES - Island Operations $10,000
(-) 01-60411-2210-REPAIRS & MAINT ISLAND FIXTURES - Grounds
Reserve to remain @ $10,000 $10,000
Total 01-60411-2210-REPAIRS & MAINT ISLAND FIXTURES - Grounds $10,000
(-) 01-60411-2220-REPAIR & MAINT ISLAND FIX - Maintenance
Reserve to remain @ $30,000 $30,000
Total 01-60411-2220-REPAIR & MAINT ISLAND FIX - Maintenance $30,000
(-) 01-60412-1000-REPAIRS & MAINT BUILDING- Administrative
Reserve to remain @ $5,000 $5,000
Total 01-60412-1000-REPAIRS & MAINT BUILDING- Administrative $5,000
(-) 01-60412-2200-REPAIRS & MAINT BUILDING - Island Operations
Reserve to remain @ $5,000 $5,000
Total 01-60412-2200-REPAIRS & MAINT BUILDING - Island Operations $5,000
(-) 01-60412-2220-REPAIRS & MAINT BUILDING - Maintenance
Reserve to remain @ $5,000 $5,000
Total 01-60412-2220-REPAIRS & MAINT BUILDING - Maintenance $5,000
(-) 01-60412-2240-REPAIRS & MAINT BUILDING- Bus Operations
Reserve to remain @ $10,000 $10,000
Total 01-60412-2240-REPAIRS & MAINT BUILDING- Bus Operations $10,000

Page 45
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
(-) 01-60412-2800-REPAIRS & MAINT BUILDING- AVAC
Reserve to remain @ $5,000 $5,000
Total 01-60412-2800-REPAIRS & MAINT BUILDING- AVAC $5,000
(-) 01-60412-2900-REPAIRS & MAINT BUILDING - Tramway
Reserve to remain @ $15,000 $15,000
Total 01-60412-2900-REPAIRS & MAINT BUILDING - Tramway $15,000
(-) 01-60412-3000-REPAIRS & MAINT BUILDING - RI Locations Points
Reserve Increase to @ $20,000 $20,000
Total 01-60412-3000-REPAIRS & MAINT BUILDING - RI Locations Points $20,000
(-) 01-60412-3400-REPAIRS & MAINT BUILDING - Sportspark
Mens Lockers - Gym $30,000
Painting - Sportpark $6,000
Misc. Repairs $4,000
Total 01-60412-3400-REPAIRS & MAINT BUILDING - Sportspark $40,000
(-) 01-60412-4000-REPAIRS & MAINT BUILDING - PM Commercial
Responsibility of Master Lessor $0
Total 01-60412-4000-REPAIRS & MAINT BUILDING - PM Commercial $0
(-) 01-60412-6000-REPAIRS & MAINT BUILDING - Motorgate
Minor Repairs - Not thru Central Parking $6,000
Total 01-60412-6000-REPAIRS & MAINT BUILDING - Motorgate $6,000
(-) 01-60413-2100-REPAIRS & MAINT ELEVATORS - Public Safety
Slade Elevator - Monthly Maintenance $3,000
Total 01-60413-2100-REPAIRS & MAINT ELEVATORS - Public Safety $3,000
(-) 01-60413-2200-REPAIRS & MAINT ELEVATORS - Maintenance
Slade Elevator - Monthly - Cultural Center $3,000
Slade Elevator - Monthly - Good Shephard $3,000
Slade Elevator -Monthly - Blackwell School $3,000
Other Elevator Repairs - RI Location Points $3,000
Total 01-60413-2200-REPAIRS & MAINT ELEVATORS - Maintenance $12,000
(-) 01-60413-2900-REPAIRS & MAINT ELEVATORS-Tramway
Slade Elevator - $400/mth - RIOC responsible not Leitner/Poma $5,000
Reserve for Repairs $10,000
Total 01-60413-2900-REPAIRS & MAINT ELEVATORS-Tramway $15,000
(-) 01-60413-3000-REPAIRS & MAINT ELEVATORS- RI Location Points
Elevator Repairs & Inspections - Island wide $15,000
Total 01-60413-3000-REPAIRS & MAINT ELEVATORS- RI Location Points $15,000
(-) 01-60413-3400-REPAIRS & MAINT ELEVATORS- Sportspark
Slade Elevator - $250/mth - Sportpark $3,000
Total 01-60413-3400-REPAIRS & MAINT ELEVATORS- Sportspark $3,000
(-) 01-60414-1000-REPAIRS & MAINT OTHER - Administrative
Carpet Cleaning - 591 Main Street $2,400

Page 46
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Misc. Repairs - 591 Main $1,600
Total 01-60414-1000-REPAIRS & MAINT OTHER - Administrative $4,000
(-) 01-60414-2220-REPAIRS & MAINT OTHER - Maintenance
Carpet Cleaning - Maintenance $3,600
Misc. Repairs - Maintenace $2,400
Total 01-60414-2220-REPAIRS & MAINT OTHER - Maintenance $6,000
(-) 01-60414-2240-REPAIRS & MAINT OTHER - Bus Operations
Reserve to $4,000 $4,000
Total 01-60414-2240-REPAIRS & MAINT OTHER - Bus Operations $4,000
(-) 01-60414-3000-REPAIRS & MAINT OTHER - RI Locations Points
Reserve to $24,000 $24,000
Total 01-60414-3000-REPAIRS & MAINT OTHER - RI Locations Points $24,000
(-) 01-60414-3400-REPAIRS & MAINT OTHER- Sportspark
Reserve to remain @ $6,000 $6,000
Total 01-60414-3400-REPAIRS & MAINT OTHER- Sportspark $6,000
(-) 01-60440-1000-REPAIRS & MAINT EQUIP - Administrative
Reserve to $2,000 $2,000
Total 01-60440-1000-REPAIRS & MAINT EQUIP - Administrative $2,000
(-) 01-60440-2210-REPAIRS & MAINT EQUIP -Grounds
Maint. for Power Tools $3,600
Misc. Repairs Eqipment - Grounds $2,000
Semi-Annual Maint. - Backhoe $2,400
Total 01-60440-2210-REPAIRS & MAINT EQUIP -Grounds $8,000
(-) 01-60440-2220-REPAIRS & MAINT EQUIPMENT - Maintenance
Reserve to @ $2,000 $2,000
Total 01-60440-2220-REPAIRS & MAINT EQUIPMENT - Maintenance $2,000
(-) 01-60440-2240-REPAIRS & MAINT EQUIP - Bus Operations
Annual Maint. - Lifts $4,000
Maintenance - Gasboy Fuel Station $3,000
Misc Repairs Equip. - Bus $3,000
Total 01-60440-2240-REPAIRS & MAINT EQUIP - Bus Operations $10,000
(-) 01-60440-2800-REPAIRS & MAINT EQUIPMENT - AVAC
Reserve to remain @ $6,000 $6,000
Total 01-60440-2800-REPAIRS & MAINT EQUIPMENT - AVAC $6,000
(-) 01-60440-2900-REPAIRS & MAINT EQUIPMENT - Tramway
Equipment repairs responsibility of Operator $0
Total 01-60440-2900-REPAIRS & MAINT EQUIPMENT - Tramway $0
(-) 01-60490-2210-TREES, SHRUBS & SOD- Grounds
LI Landscap - Blackwell Park $7,200
LI Landscap - Riverwalk $9,600
LI Landscap - Southpoint Park $32,000

Page 47
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Mulch & Topsoil $12,000
Tree Pruning $9,600
Trees & Shrubs $34,600
Southpoint Park - Weeding Maintenance $15,000
Total 01-60490-2210-TREES, SHRUBS & SOD- Grounds $120,000
(-) 01-60450-1050-VEHICLES GAS - Administrative Services
Reserve to @ $10500 $1,000
Total 01-60450-1050-VEHICLES GAS - Administrative Services $1,000
(-) 01-60450-2100-VEHICLES GAS - Public Safety
Reserve to Remain @ $20,000 $20,000
Total 01-60450-2100-VEHICLES GAS - Public Safety $20,000
(-) 01-60450-2210-VEHICLES GAS - Grounds
Reserve to remain @ $15,000 $15,000
Total 01-60450-2210-VEHICLES GAS - Grounds $15,000
(-) 01-60450-2220-VEHICLES GAS - Maintenance
Reserve to remain @ $4,000 $4,000
Total 01-60450-2220-VEHICLES GAS - Maintenance $4,000
(-) 01-60450-2230-VEHICLES GAS - Warehouse
Reserve to @ $2,000 $2,000
Total 01-60450-2230-VEHICLES GAS - Warehouse $2,000
(-) 01-60450-2240-VEHICLES GAS - Bus Operations
Reserve to remain @ $124,000 $124,000
Total 01-60450-2240-VEHICLES GAS - Bus Operations $124,000
(-) 01-60450-3400-VEHICLES GAS - Sportspark
Reserve to remain @ $1,000 $1,000
Total 01-60450-3400-VEHICLES GAS - Sportspark $1,000
(-) 01-60500-1000-VEHICLE REPAIR & MAINT - Administrative
Hybrid Repairs $1,000
Total 01-60500-1000-VEHICLE REPAIR & MAINT - Administrative $1,000
(-) 01-60500-2100-VEHICLE REPAIR & MAINT- Public Safety
Reserve to remain @ $8,000 $8,000
Total 01-60500-2100-VEHICLE REPAIR & MAINT- Public Safety $8,000
(-) 01-60500-2200-VEHICLE REPAIRS & MAINT - Island Operations
Reserve to @ $1,000 $1,000
Total 01-60500-2200-VEHICLE REPAIRS & MAINT - Island Operations $1,000
(-) 01-60500-2210-VEHICLE REPAIR & MAINT- Grounds
Reserve to remain @ $6,000 $6,000
Total 01-60500-2210-VEHICLE REPAIR & MAINT- Grounds $6,000
(-) 01-60500-2220-VEHICLE REPAIRS & MAINT. - Maintenance
Reserve to remain @ $6,000 $6,000
Total 01-60500-2220-VEHICLE REPAIRS & MAINT. - Maintenance $6,000

Page 48
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
(-) 01-60500-2230-VEHICLE REPAIRS & MAINT - Warehouse
Reserve to @ $2,000 $2,000
Total 01-60500-2230-VEHICLE REPAIRS & MAINT - Warehouse $2,000
(-) 01-60500-2240-VEHICLE REPAIR & MAINT- Bus Operations
Reserve to remain @ $48,000 $48,000
Total 01-60500-2240-VEHICLE REPAIR & MAINT- Bus Operations $48,000
(-) 01-60500-2250-VEHICLE REPAIRS & MAINT - Motor Pool
Reserve to @ $8,000 $8,000
Total 01-60500-2250-VEHICLE REPAIRS & MAINT - Motor Pool $8,000
(-) 01-60500-3400-VEHICLE REPAIRS & MAINT - Sportspark
Reserve to @ $1,000 $1,000
Total 01-60500-3400-VEHICLE REPAIRS & MAINT - Sportspark $1,000
(-) 01-60640-2100-VEHICLES PARTS - Public Safety
Increase Reserve to $6,000 $6,000
Total 01-60640-2100-VEHICLES PARTS - Public Safety $6,000
(-) 01-60640-2210-VEHICLES PARTS - Grounds
Reserve to remain @ $3,000 $3,000
Total 01-60640-2210-VEHICLES PARTS - Grounds $3,000
(-) 01-60640-2230-VEHICLES PARTS - Warehouse
Reserve to remain @ $1,200 $1,000
Total 01-60640-2230-VEHICLES PARTS - Warehouse $1,000
(-) 01-60640-2240-VEHICLES PARTS - Bus Operations
Reserve to @ $40,000 $40,000
Total 01-60640-2240-VEHICLES PARTS - Bus Operations $40,000
(-) 01-60640-2250-VEHICLES PARTS - Motor Pool
Reserve to remain @ $6,000 $6,000
Total 01-60640-2250-VEHICLES PARTS - Motor Pool $6,000
(-) 01-60640-3400-VEHICLES PARTS - Sportspark
Reserve to remain @ $1,000 $1,000
Total 01-60640-3400-VEHICLES PARTS - Sportspark $1,000
(-) 01-60300-1050-LEASED EQUIPMENT - Administrative Services
EMS Smart Meter $7,000
Renting of Xmas Street Lights $5,000
Total 01-60300-1050-LEASED EQUIPMENT - Adminstrative Services $12,000
(-) 01-60300-2210-LEASED EQUIPMENT - Grounds
Misc. Leased Equip - Grounds $2,400
Storage Containers - Maintenace $1,600
Total 01-60300-2210-LEASED EQUIPMENT - Grounds $4,000
(-) 01-60300-2220-LEASED EQUIP- Maintenance
ADA Portable Toilets - Maintenance $3,000
Total 01-60300-2220-LEASED EQUIP- Maintenance $3,000

Page 49
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
(-) 01-60300-2230-LEASED EQUIPMENT - Warehouse
Misc. Leased Equip - Warehouse $1,000
Total 01-60300-2230-LEASED EQUIPMENT - Warehouse $1,000
(-) 01-60300-2240-LEASED EQUIP-Bus Operations
Gas Cylinders - Bus $1,000
Misc. Leased Equip. - Bus $1,000
Total 01-60300-2240-LEASED EQUIP-Bus Operations $2,000
(-) 01-60300-2900-LEASED EQUIPMENT - Tramway
Temporary enclosures - Tramway $2,000
Total 01-60300-2900-LEASED EQUIPMENT - Tramway $2,000
(-) 01-60470-1000-OFFICE EQUIP PURCHASE - Administrative
Reserve to @ $2,000 $2,000
Total 01-60470-1000-OFFICE EQUIP PURCHASE - Administrative $2,000
(-) 01-60470-1500-OFFICE EQUIP PURCH - Information Technology
Reserve to @ $10,000 $10,000
Total 01-60470-1500-OFFICE EQUIP PURCH - Information Technology $10,000
(-) 01-60470-2050-OFFICE EQUIP PURCHASE - Engineering
Reserve to @ $2,000 $2,000
Total 01-60470-2050-OFFICE EQUIP PURCHASE - Engineering $2,000
(-) 01-60470-2100-OFFICE EQUIP PURCH - Public Safety
Reserve to remain @ $3,000 $3,000
Total 01-60470-2100-OFFICE EQUIP PURCH - Public Safety $3,000
(-) 01-60470-2230-OFFICE EQUIP PURCHASE - Warehouse
Reserve to @ $1,000 $1,000
Total 01-60470-2230-OFFICE EQUIP PURCHASE - Warehouse $1,000
(-) 01-60470-2250-OFFICE EQUIP PURCHASE - Motor Pool
Reserve to @ $1,000 $1,000
Total 01-60470-2250-OFFICE EQUIP PURCHASE - Motor Pool $1,000
(-) 01-60470-2900-OFFICE EQUIP PURCH - Tramway
Responsibility of POMA/Leitner $0
Total 01-60470-2900-OFFICE EQUIP PURCH - Tramway $0
(-) 01-60470-3400-OFFICE EQUIP PURCHASE - Sportspark
Reserve to @ $1,000 $1,000
Total 01-60470-3400-OFFICE EQUIP PURCHASE - Sportspark $1,000
(-) 01-60510-2100-EQUIPMENT PURCHASE - Public Safety
Drug Test Kits $1,200
Misc. Other - Police Equip. $2,400
Police Equip. - Batons, Leg Irons, Safety Strobes $3,000
Radar Units $2,400
Traffice Safety Equipment $1,000
Replacement Radios 16@$500/each $8,000

Page 50
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Total 01-60510-2100-EQUIPMENT PURCHASE - Public Safety $18,000
(-) 01-60510-2210-EQUIPMENT PURCHASE - Grounds
Misc. Ground Equipment $6,000
Total 01-60510-2210-EQUIPMENT PURCHASE - Grounds $6,000
(-) 01-60510-2220-EQUIPMENT PURCHASE - Maintenance
Reserve to remain @ $4,000 $4,000
Total 01-60510-2220-EQUIPMENT PURCHASE - Maintenance $4,000
(-) 01-60510-2230-EQUIPMENT PURCHASE - Warehouse
Reserve to remain @ $6,000 $6,000
Total 01-60510-2230-EQUIPMENT PURCHASE - Warehouse $6,000
(-) 01-60510-2240-EQUIPMENT PURCHASE- Bus Operations
Reserve to @ $6,000 $6,000
Total 01-60510-2240-EQUIPMENT PURCHASE- Bus Operations $6,000
(-) 01-60510-2250-EQUIPMENT PURCHASE - Motor Pool
Reserve to @ $6,000 $6,000
Total 01-60510-2250-EQUIPMENT PURCHASE - Motor Pool $6,000
(-) 01-60510-2900-EQUIPMENT PURCHASE - Tramway
Reserve to remain @ $6,000 $6,000
Total 01-60510-2900-EQUIPMENT PURCHASE - Tramway $6,000
(-) 01-60510-3400-EQUIPMENT PURCHASE - Sportspark
Misc. Equip. - Sportpark $4,400
Pool Equipment $3,600
Total 01-60510-3400-EQUIPMENT PURCHASE - Sportspark $8,000
(-) 01-60660-1500-COMPUTER PURCHASE SOFTWARE
Misc. Upgrades $6,000
Total 01-60660-1500-COMPUTER PURCHASE SOFTWARE $6,000
(-) 01-60780-1500-COMPUTER PURCHASES
Reserve to remain @ $6,000 $6,000
Total 01-60780-1500-COMPUTER PURCHASES $6,000
(-) 01-60250-1000-EXTERMINATOR - Administrative
Urban Exterminating - $200/month 10 months $2,000
Total 01-60250-1000-EXTERMINATOR - Administrative $2,000
(-) 01-60250-2100-EXTERMINATOR - Public Safety
Urban Exterminating - $200/month 10 months $2,000
Total 01-60250-2100-EXTERMINATOR - Public Safety $2,000
(-) 01-60250-2210-EXTERMINATOR - Grounds
Urban Exterminating (Grounds) $1,400
Other - Island Wide Exterminating $3,600
Total 01-60250-2210-EXTERMINATOR - Grounds $5,000
(-) 01-60250-2230-EXTERMINATOR - Warehouse
Urban Exterminating - $200/month 10 months $2,000

Page 51
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Total 01-60250-2230-EXTERMINATOR - Warehouse $2,000
(-) 01-60250-2240-EXTERMINATOR - Bus Operations
Urban Exterminating - $200/month 10 months $2,000
Total 01-60250-2240-EXTERMINATOR - Bus Operations $2,000
(-) 01-60250-2250-EXTERMINATOR - Motor Pool
Urban Exterminating - $200/month 10 months $2,000
Total 01-60250-2250-EXTERMINATOR - Motor Pool $2,000
(-) 01-60250-2900-EXTERMINATOR - Tramway
Responsibility of Lietner/POMA $0
Total 01-60250-2900-EXTERMINATOR - Tramway $0
(-) 01-60250-3400-EXTERMINATOR - Sportspark
Urban Exterminating - $200/month 10 months $2,000
Total 01-60250-3400-EXTERMINATOR - Sportspark $2,000
(-) 01-60290-1000-UNIFORMS - Administrative
Caps (120@$10) $1,200
T Shirts (180@$10) $1,800
Total 01-60290-1000-UNIFORMS - Administrative $3,000
(-) 01-60290-2100-UNIFORMS - Public Safety
Replacement Boots (30@$70/each) $2,000
New Coats (20 @$300) $6,000
New Employees (6 @ $1,500) $9,000
Replacement Sets (6@$1,500) $9,000
Total 01-60290-2100-UNIFORMS - Public Safety $26,000
(-) 01-60290-2200-UNIFORMS - Island Operations
Repalcement Sets 1@$750 $750
Shirts & Coveralls (Island Opers.) $1,250
Total 01-60290-2200-UNIFORMS - Island Operations $2,000
(-) 01-60290-2210-UNIFORMS - Grounds
Coveralls (Grounds) 10@$40 $400
New Coats - 8@$225 $1,800
New Shirt Sets - 8@$225 $1,800
Total 01-60290-2210-UNIFORMS - Grounds $4,000
(-) 01-60290-2220-UNIFORMS - Maintenance
Coveralls - 10@40 $400
New Jackets - 4@$200 $800
New Jackets - 4@$200 $800
Total 01-60290-2220-UNIFORMS - Maintenance $2,000
(-) 01-60290-2230-UNIFORMS - Warehouse
Coverall - 5@$40 $200
New Jackets 3$200 $600
New Shirt Sets 1$200 $200

Page 52
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Total 01-60290-2230-UNIFORMS - Warehouse $1,000
(-) 01-60290-2240-UNIFORMS - Bus Operations
New Jackets - 12@$225 $2,500
New Shirt Sets - 12@$225 $2,500
Total 01-60290-2240-UNIFORMS - Bus Operations $5,000
(-) 01-60290-2250-UNIFORMS - Motor Pool
New Jackets - 4@$225 $1,000
New Shirt Sets - 4@$225 $1,000
Total 01-60290-2250-UNIFORMS - Motor Pool $2,000
(-) 01-60290-2900-UNIFORMS - Tramway
Responsibility of Operator $0
Total 01-60290-2900-UNIFORMS - Tramway $0
(-) 01-60290-3400-UNIFORMS - Sportspark
New Jackets - 4@$225 $1,000
New Shirt Sets - 4@$225 $1,000
Total 01-60290-3400-UNIFORMS - Sportspark $2,000
(-) 01-60291-2100-UNIFORMS CLEANING - Public Safety
37 Officers @$25/month $12,000
Total 01-60291-2100-UNIFORMS CLEANING - Public Safety $12,000
(-) 01-60291-2200-UNIFORMS CLEANING - Island Operations
Employee transferred $0
Total 01-60291-2200-UNIFORMS CLEANING - Island Operations $0
(-) 01-60291-2210-UNIFORMS CLEANING - Grounds
10 Employees @$25/mth $3,000
Total 01-60291-2210-UNIFORMS CLEANING - Grounds $3,000
(-) 01-60291-2220-UNIFORMS CLEANING - Maintenance
5 Employees @$25/mth $1,000
Total 01-60291-2220-UNIFORMS CLEANING - Maintenance $1,000
(-) 01-60291-2230-UNIFORMS CLEANING - Warehouse
3 Employees @$25/mth $1,000
Total 01-60291-2230-UNIFORMS CLEANING - Warehouse $1,000
(-) 01-60291-2240-UNIFORMS CLEANING - Bus Operations
10 employees @$25/month $3,000
Total 01-60291-2240-UNIFORMS CLEANING - Bus Operations $3,000
(-) 01-60291-2250-UNIFORMS CLEANING - Motor Pool
4 Employees@$25/mth $1,000
Total 01-60291-2250-UNIFORMS CLEANING - Motor Pool $1,000
(-) 01-60291-2900-UNIFORMS CLEANING - Tramway
Responsibility of Operator $0
Total 01-60291-2900-UNIFORMS CLEANING - Tramway $0
(-) 01-60320-1000-LIGHT, POWER, HEAT - Admin

Page 53
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Averaging $3,500/mth $42,000
Total 01-60320-1000-LIGHT, POWER, HEAT - Admin $42,000
(-) 01-60320-2100-LIGHT, POWER, HEAT - Public Safety
Averaging $5,000/mth $60,000
Total 01-60320-2100-LIGHT, POWER, HEAT - Public Safety $60,000
(-) 01-60320-2240-LIGHT, POWER, HEAT - Bus Operations
Averaging $2,000/mth $24,000
Total 01-60320-2240-LIGHT, POWER, HEAT - Bus Operations $24,000
(-) 01-60320-2800-LIGHT, POWER, HEAT - AVAC
Averaging $1,000/mth $12,000
Total 01-60320-2800-LIGHT, POWER, HEAT - AVAC $12,000
(-) 01-60320-2900-LIGHT, POWER, HEAT - Tramway
Estimated @ $10,000/month $150,000
Total 01-60320-2900-LIGHT, POWER, HEAT - Tramway $150,000
(-) 01-60320-3000-LIGHT, POWER, HEAT - RI Locations Points
Averaging $15,000/mth $180,000
Total 01-60320-3000-LIGHT, POWER, HEAT - RI Locations Points $180,000
(-) 01-60320-3400-LIGHT, POWER, HEAT - Sportspark
Averaging $7,5000/mth $90,000
Total 01-60320-3400-LIGHT, POWER, HEAT - Sportspark $90,000
(-) 01-60320-4000-LIGHT, POWER, HEAT - PM Commercial
Averaging $2,000/mth $24,000
Total 01-60320-4000-LIGHT, POWER, HEAT - PM Commercial $24,000
(-) 01-60320-6000-LIGHT, POWER, HEAT - Motorgate
Averaging $5,000/mth $60,000
Total 01-60320-6000-LIGHT, POWER, HEAT - Motorgate $60,000
(-) 01-60322-2200-WATER & SEWER - Island Operations
Riverwalk Commons - UtiliVisor Submetering $4,000
DEP - est. @ $2,000 yr. $2,000
Total 01-60322-2200-WATER & SEWER - Island Operations $6,000
(-) 01-60322-2900-WATER & SEWER - Tramway
Averaging $250/month $3,000
Total 01-60322-2900-WATER & SEWER - Tramway $3,000
(-) 01-60322-3400-WATER & SEWER - Sportspark
Averaging $250/month $3,000
Total 01-60322-3400-WATER & SEWER - Sportspark $3,000
(-) 01-60420-1000-OFFICE SUPPLIES - Administrative
Averaging $800/month $10,000
Total 01-60420-1000-OFFICE SUPPLIES - Administrative $10,000
(-) 01-60420-1500-OFFICE SUPPLIES - Information Technology
Averaging $250/month $3,000

Page 54
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Total 01-60420-1500-OFFICE SUPPLIES - Information Technology $3,000
(-) 01-60420-1600-OFFICE SUPPLIES - Legal
Averaging $50/month $600
Total 01-60420-1600-OFFICE SUPPLIES - Legal $600
(-) 01-60420-1800-OFFICE SUPPLIES- Community Relations
Averaging $25/month $300
Total 01-60420-1800-OFFICE SUPPLIES- Community Relations $300
(-) 01-60420-2050-OFFICE SUPPLIES - Engineering
Averaging $25/month $300
Total 01-60420-2050-OFFICE SUPPLIES - Engineering $300
(-) 01-60420-2100-OFFICE SUPPLIES - Public Safety
Averaging $350/month $4,000
Total 01-60420-2100-OFFICE SUPPLIES - Public Safety $4,000
(-) 01-60420-2240-OFFICE SUPPLIES - Bus Operations
Averaging $25/month $300
Total 01-60420-2240-OFFICE SUPPLIES - Bus Operations $300
(-) 01-60420-2900-OFFICE SUPPLIES - Tramway
Responsibility of Operator $0
Total 01-60420-2900-OFFICE SUPPLIES - Tramway $0
(-) 01-60420-3400-OFFICE SUPPLIES - Sportspark
Averaging $40/month $500
Total 01-60420-3400-OFFICE SUPPLIES - Sportspark $500
(-) 01-60430-1000-PARTS & SUPPLIES - Administrative
Misc. Supplies 591 Main $1,400
Parts & Supplies - Parking Collection $600
Total 01-60430-1000-PARTS & SUPPLIES - Administrative $2,000
(-) 01-60430-1500-PARTS & SUPPLIES - Information Technology
Misc Computer Parts $2,800
Printer Toner $1,200
Total 01-60430-1500-PARTS & SUPPLIES - Information Technology $4,000
(-) 01-60430-1514-PARTS & SUPPLIES - Access Control
Idesco Access Cards - 500@$4.50/each $2,250
Replacement Lock Sets - 10@ $225 $2,250
Replacement of Bill Cannisters - 5 @ $600/each $3,000
Total 01-60430-1514-PARTS & SUPPLIES - Access Control $7,500
(-) 01-60430-1800-PARTS & SUPPLIES - Community Relations
Banners & Promotional Supplies $5,000
Total 01-60430-1800-PARTS & SUPPLIES - Community Relations $5,000
(-) 01-60430-2050-PARTS & SUPPLY - Engineering
Paper 7 Toner For CAD Printer $1,500
Total 01-60430-2050-PARTS & SUPPLY - Engineering $1,500

Page 55
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
(-) 01-60430-2100-PARTS & SUPPLIES - Public Safety
Car Washes $1,200
Misc Safety Products $1,800
Total 01-60430-2100-PARTS & SUPPLIES - Public Safety $3,000
(-) 01-60430-2200-PARTS & SUPPLIES - Island Operations
Misc. Electrical Supplies $2,000
Misc. Supplies - Island OperationsTraffic Signs & Supplies $4,000
Total 01-60430-2200-PARTS & SUPPLIES - Island Operations $6,000
(-) 01-60430-2210-PARTS & SUPPLIES - Grounds
Misc. Supplies - Grounds $6,000
Playground Supplies - Grounds $12,000
Roadway Salt $6,000
Tools - Grounds $12,000
Total 01-60430-2210-PARTS & SUPPLIES - Grounds $36,000
(-) 01-60430-2220-PARTS & SUPPLIES - Maintenance
Electrical supplies - Maint $12,000
Misc. Supplies - Maint $24,000
Total 01-60430-2220-PARTS & SUPPLIES - Maintenance $36,000
(-) 01-60430-2230-PARTS & SUPPLIES - Warehouse
Cleaning Supplies - Warehouse $16,000
Lumber - Warehouse $6,000
Misc. Supplies $18,000
Total 01-60430-2230-PARTS & SUPPLIES - Warehouse $40,000
(-) 01-60430-2240-PARTS & SUPPLIES - Bus Operations
Fare Box Parts $6,000
Total 01-60430-2240-PARTS & SUPPLIES - Bus Operations $6,000
(-) 01-60430-2250-PARTS & SUPPLY - Motor Pool
Misc. Supplies - Motorpool $3,000
Total 01-60430-2250-PARTS & SUPPLY - Motor Pool $3,000
(-) 01-60430-2800-PARTS & SUPPLIES - AVAC
Compressor Parts $12,000
ENVAC Parts $20,000
Other Misc. Parts - AVAC $6,000
Total 01-60430-2800-PARTS & SUPPLIES - AVAC $38,000
(-) 01-60430-2900-PARTS & SUPPLIES - Tramway
Responsibility of Operator $0
Total 01-60430-2900-PARTS & SUPPLIES - Tramway $0
(-) 01-60430-3000-PARTS & SUPPLIES - RI Locations Points
Misc. Supplies - RI Location Points $6,000
Total 01-60430-3000-PARTS & SUPPLIES - RI Locations Points $6,000
(-) 01-60430-3400-PARTS & SUPPLIES - Sportspark

Page 56
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Cleaning Supplies - Sportpark $4,000
Pool Chemicals - Sportspark $4,000
Sports Equipment - Sportpark $4,000
Total 01-60430-3400-PARTS & SUPPLIES - Sportspark $12,000
(-) 01-60430-6000-PARTS & SUPPLY - Motorgate
Emergency Supplies (not paid thru Central Parking)- Motorgate $6,000
Total 01-60430-6000-PARTS & SUPPLY - Motorgate $6,000
(-) 01-60750-0000-SERVICE MAINTENANCE AGREE - General
Active Fire Extinguishers - Maint Agreement $600
Cummins - Maint Agree. Coin Counting Machine $900
BES Blackberry Service Maintenance $1,500
Mcaffee Service Maintenance $4,000
VM Ware - Service Maintenance $4,000
Doculex - Document Management Annual Service $4,000
Total 01-60750-0000-SERVICE MAINTENANCE AGREE - General $15,000
(-) 01-60750-1300-SERVICE MAINTENANCE AGREE - Finance
Balackbaud (Web Purchasing) Maintenance $1,700
Blackbaud (Financial Edge) Software Maintenance $10,300
Total 01-60750-1300-SERVICE MAINTENANCE AGREE - Finance $12,000
(-) 01-60750-1500-SERVICE MAINTENANCE AGREEMENT- COPIER
4 Savin Color Copiers - Est Annual Uasage 120,000 copies @ $.07/each $8,400
8 Savin B&W Copiers - Est. Annual usaged 360,000 copies @ $.01/eack $3,600
Total 01-60750-1500-SERVICE MAINTENANCE AGREEMENT- COPIER $12,000
(-) 01-60750-1514-SERVICE MAINTENANCE AGREE - Access Control
ADT Security Monitoring Services $3,000
Motorola Emergency Repeater Service - Radios $3,000
Other Misc. Securitry Services $1,000
Total 01-60750-1514-SERVICE MAINTENANCE AGREE - Access Control $7,000
(-) 01-60750-2050-SERVICE MAINTENANCE AGREE - Engineering
HP Plotter Service Maintenance $6,000
Total 01-60750-2050-SERVICE MAINTENANCE AGREE - Engineering $6,000
(-) 01-60750-2100-SERVICE MAINTENANCE AGREE - Public Safety
Active Fire extinguisher Maint Agreement $1,200
Northeastern - Annual Radio Service Agreement $4,800
V.I.P. Towing - On Call Towing Services $1,000
Total 01-60750-2100-SERVICE MAINTENANCE AGREE - Public Safety $7,000
(-) 01-60750-2240-SERVICE MAINTENANCE AGREE - Bus Operations
Gasboy Fuel tank Maint Services $3,000
Nextbus Annual Service Fee $5,000
Dolphin Vehicle Repair - Service Maintenance $2,000
Total 01-60750-2240-SERVICE MAINTENANCE AGREE - Bus Operations $10,000
(-) 01-60750-2800-SERVICE MAINTENANCE AGREE - AVAC

Page 57
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Allstate Sprinkler - Fire Sprinkler Maintenance $1,000
Total 01-60750-2800-SERVICE MAINTENANCE AGREE - AVAC $1,000
(-) 01-60750-2900-SERVICE MAINTENANCE AGREE - Tramway
Responsibility of Operator $0
Total 01-60750-2900-SERVICE MAINTENANCE AGREE - Tramway $0
(-) 01-60750-3000-SERVICE MAINTENANCE AGREE - RI Locations
Active Fire extinguisher Maint Agreement $2,000
Total 01-60750-3000-SERVICE MAINTENANCE AGREE - RI Locations $2,000
(-) 01-60750-3400-SERVICE MAINTENANCE AGREE - Sportspark
EZ Facility - Mantenance Service $2,500
Todd Harris - Monthly Pool Service $4,500
Simplex Grinnell - Annual HVAC Service $1,000
Total 01-60750-3400-SERVICE MAINTENANCE AGREE - Sportspark $8,000
(-) 01-60520-1000-EMPL TRV & MEAL - Administrative
Responsibility of Operator $0
Total 01-60520-1000-EMPL TRV & MEAL - Administrative $0
(-) 01-60520-1100-EMPL TRV & MEAL- Executive
President - T&E $600
Total 01-60520-1100-EMPL TRV & MEAL- Executive $600
(-) 01-60520-1300-EMPL TRV & MEAL- Finance
Responsibility of Operator $0
Total 01-60520-1300-EMPL TRV & MEAL- Finance $0
(-) 01-60520-1400-EMPL TRV & MEAL- Human Resources
Responsibility of Operator $0
Total 01-60520-1400-EMPL TRV & MEAL- Human Resources $0
(-) 01-60520-1500-EMPL TRV & MEAL- Information Technology
2 Positions @ $300/per $600
IT Director - 2 IT Conferences Up State $400
Total 01-60520-1500-EMPL TRV & MEAL- Information Technology $1,000
(-) 01-60520-1600-EMPL TRV & MEAL- Legal
Asst. General Counsel - T&E $400
General Counsel - T&E $600
Total 01-60520-1600-EMPL TRV & MEAL- Legal $1,000
(-) 01-60520-1800-EMPL TRV & MEAL- Community Relations
Responsibility of Operator $0
Total 01-60520-1800-EMPL TRV & MEAL- Community Relations $0
(-) 01-60520-2000-EMPL TRV & MEAL - Operations
Responsibility of Operator $0
Total 01-60520-2000-EMPL TRV & MEAL - Operations $0
(-) 01-60520-2050-EMPL TRV & MEAL- Engineering
Responsibility of Operator $0

Page 58
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Total 01-60520-2050-EMPL TRV & MEAL- Engineering $0
(-) 01-60520-2100-EMPL TRV & MEAL- Public Safety
Officer Travel - To/From Court Appearances $600
Total 01-60520-2100-EMPL TRV & MEAL- Public Safety $600
(-) 01-60520-2240-EMPL TRV & MEAL- Bus Operations
Responsibility of Operator $0
Total 01-60520-2240-EMPL TRV & MEAL- Bus Operations $0
(-) 01-60520-3400-EMPL TRV & MEAL - Sportspark
Responsibility of Operator $0
Total 01-60520-3400-EMPL TRV & MEAL - Sportspark $0
(-) 01-60530-1050-EMPLOYEE TRAINING - Administrative Services
3 Positions @ $400/per - Admin. Services $1,000
Total 01-60530-1050-EMPLOYEE TRAINING - Administrative Services $1,000
(-) 01-60530-1000-EMPLOYEE TRAINING - Administrative
3 Positions @ $400/per $1,000
Total 01-60530-1000-EMPLOYEE TRAINING - Administrative $1,000
(-) 01-60530-1100-EMPLOYEE TRAINING - Executive
President - Training $500
Total 01-60530-1100-EMPLOYEE TRAINING - Executive $500
(-) 01-60530-1300-EMPLOYEE TRAINING - Finance
6 Positions @$200/per $1,200
Controller - Training $600
CFO - Training $600
Compliance Officer - Training $500
Total 01-60530-1300-EMPLOYEE TRAINING - Finance $2,900
(-) 01-60530-1400-EMPLOYEE TRAINING - Human Resources
HR Director - Training $600
HR Assistant - Training $400
Total 01-60530-1400-EMPLOYEE TRAINING - Human Resources $1,000
(-) 01-60530-1500-EMPLOYEE TRAINING - Information Technology
2 IT Specialists $1,600
IT Director - Training $600
The Training Consortium - Annual Retainer $2,800
Total 01-60530-1500-EMPLOYEE TRAINING - Information Technology $5,000
(-) 01-60530-1600-EMPLOYEE TRAINING - Legal
Associate Counsel - Training $1,500
General Counsel - Training $1,500
Lada Mirzalieva - Training $500
Total 01-60530-1600-EMPLOYEE TRAINING - Legal $3,500
(-) 01-60530-1800-EMPLOYEE TRAINING - Community Relations
Community Relations Director - Training $500

Page 59
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Total 01-60530-1800-EMPLOYEE TRAINING - Community Relations $500
(-) 01-60530-2050-EMPLOYEE TRAINING - Engineering
3 Egineering Associates $2,000
Tuition Reimbursement $1,400
Director of Engineering - Training $600
Total 01-60530-2050-EMPLOYEE TRAINING - Engineering $4,000
(-) 01-60530-2100-EMPLOYEE TRAINING - Public Safety
Training - P.S. Other $4,500
Training New Officers $4,500
Tuition Reimb. - 4 emplyees @$1,400/per $6,000
Total 01-60530-2100-EMPLOYEE TRAINING - Public Safety $15,000
(-) 01-60530-2200-EMPLOYEE TRAINING - Island Operations
Supervisors Training $500
Total 01-60530-2200-EMPLOYEE TRAINING - Island Operations $500
(-) 01-60530-2210-EMPLOYEE TRAINING - Grounds
Horticutural Training - Grounds $8,000
Supervisors Training $800
Training Allowance 32BJ $3,200
Total 01-60530-2210-EMPLOYEE TRAINING - Grounds $12,000
(-) 01-60530-2220-EMPLOYEE TRAINING - Maintenance
Supervisors Training $500
Training - Mainenance - Other $500
Total 01-60530-2220-EMPLOYEE TRAINING - Maintenance $1,000
(-) 01-60530-2230-EMPLOYEE TRAINING - Warehouse
Supervisors Training - Warehouse $500
Training - Warehouse - Other $500
Total 01-60530-2230-EMPLOYEE TRAINING - Warehouse $1,000
(-) 01-60530-2240-EMPLOYEE TRAINING - Bus Operations
Bus Drivers Certification Training $6,000
Dolphin Software Training $1,800
Supervisors Training - Bus $700
Total 01-60530-2240-EMPLOYEE TRAINING - Bus Operations $8,500
(-) 01-60530-2900-EMPLOYEE TRAINING - Tramway
Responsibility of Operator $0
Total 01-60530-2900-EMPLOYEE TRAINING - Tramway $0
(-) 01-60530-3400-EMPLOYEE TRAINING - Sportspark
Supervisors Training - Sportspark $1,000
COP Training 4@$1,500/each $6,000
Total 01-60530-3400-EMPLOYEE TRAINING - Sportspark $7,000
(-) 01-60550-1000-POSTAGE - Administrative
Pitey Bowes - Average monthly postage usage - $250/mth $3,000

Page 60
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
Pitney Bowes - monthly rental $320/mth $5,000
Miscellaneous Shipping $2,000
Total 01-60550-1000-POSTAGE - Administrative $10,000
(-) 01-60552-1000-UPS SHIPPING - Administrative
Misc. shipping $1,000
Total 01-60552-1000-UPS SHIPPING - Administrative $1,000
(-) 01-60552-1500-UPS SHIPPING - Information Technology
Responsibility of Operator $0
Total 01-60552-1500-UPS SHIPPING - Information Technology $0
(-) 01-60560-1000-SUBSCRIPTIONS / MEMBERSHIP- Administrative
Responsibility of Operator $0
Total 01-60560-1000-SUBSCRIPTIONS / MEMBERSHIP- Administrative $0
(-) 01-60560-1300-SUBSCRIPTIONS/ MEMBERSHIP - Finance
Responsibility of Operator $0
Total 01-60560-1300-SUBSCRIPTIONS/ MEMBERSHIP - Finance $0
(-) 01-60560-1600-SUBSCRIPTIONS/ MEMBERSHIP - Legal
West Law Monthly Subscription - $650/mth $8,400
Total 01-60560-1600-SUBSCRIPTIONS/ MEMBERSHIP - Legal $8,400
(-) 01-60560-2050-SUBSCRIPTIONS/ MEMBERSHIP - Engineering
Responsibility of Operator $0
Total 01-60560-2050-SUBSCRIPTIONS/ MEMBERSHIP - Engineering $0
(-) 01-60560-2100-SUBSCRIPTIONS/ MEMBERSHIP - Public Safety
Responsibility of Operator $0
Total 01-60560-2100-SUBSCRIPTIONS/ MEMBERSHIP - Public Safety $0
(-) 01-60570-0000-BANK CHARGES - General
Amalgamated - Est.@ $100/mth $1,200
Chase - Average Monthly $1,400 $16,800
Total 01-60570-0000-BANK CHARGES - General $18,000
(-) 01-60580-1000-MISCELLANEOUS - Administrative
Employee Medical Testing $8,000
Other various misc. $8,000
Total 01-60580-1000-MISCELLANEOUS - Administrative $16,000
(-) 01-60580-2100-MISCELLANEOUS - Public Safety
Remain @ $4,000 for misc. $4,000
Total 01-60580-2100-MISCELLANEOUS - Public Safety $4,000
(-) 01-60580-2210-MISCELLANEOUS - Grounds
Emergency Snow Removal $2,000
Total 01-60580-2210-MISCELLANEOUS - Grounds $2,000
(-) 01-60790-1400-MTA METRO CARD PURCHASE- HR
Avg. 40 Employees/month @$35 each $16,000
Total 01-60790-1400-MTA METRO CARD PURCHASE- HR $16,000

Page 61
 Roosevelt Island Operating Corp.
Approved Budget 2014
Other Than Personal Services (OTPS) - Detail

Account Amount
(-) 02-61750-1000-PUBLIC PURPOSE GRANTS
Public Purpose Grants - $100,000 $100,000
Youth Center - $175,000 $175,000
Total 02-61750-1000-PUBLIC PURPOSE GRANTS $275,000
(-) 01-60681-1800-ISLAND EVENTS - Community Relations
Fall Arts Festival $24,000
Halloween Parade $3,000
Roosevelt Island Day $5,000
Summer Movies $12,000
RI Day $5,000
Black History Month $2,750
Hispanic History Month $2,750
Womens History Month $2,750
Easter Egg Hunt $2,750
Other $20,000
Total 01-60681-1800-ISLAND EVENTS - Community Relations $80,000
(-) 01-60681-2100-ISLAND EVENTS - Public Safety
Miscellaneous Events $5,000
Total 01-60681-2100-ISLAND EVENTS - Public Safety $5,000
(-) 01-61081-5100 - COMMERCIAL SPACE RENT - Engineering
Rent for Engineering Office $1k/month $12,000
Total 01-61081-5100-COMMERCIAL SPACE RENT - Engineering $12,000

Total Other Than Personal Services (OTPS) $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

3
 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 $ 45,314,018 $ 46,439,059 -2%

Capital assets, net 68,724,541 67,090,562 2%
Total assets $ 114,038,559 $ 113,529,621 0%

Liabilities $ 33,762,970 $ 33,458,916 1%

Net position:
Investment in capital assets 68,724,541 67,090,562 2%
Restricted for capital projects 10,450,427 11,113,352 -6%
Unrestricted 1,100,621 1,866,791 -41%
Total net position $ 80,275,589 $ 80,070,705 0%

4
 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 non-
program 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.

5
 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 2012 % Change

Operating revenues:
Residential fees $ 1,111,441 $ 878,320 27%
Ground rent 9,356,679 9,174,109 2%
Commercial rent 1,421,038 1,296,141 10%
Tramway revenue 4,640,843 4,297,891 8%
Public safety reimbursement 1,673,097 1,613,297 4%
Transport/parking revenue 2,521,892 2,485,613 1%
Interest income 185,403 263,633 -30%
Other revenues 959,317 837,899 14%
Total operating revenues 21,869,710 20,846,903 5%

Operating expenses:
Personal services 10,008,395 9,795,206 2%
Insurance 1,137,448 1,061,546 7%
Professional services and legal services 670,825 699,139 -4%
Management fees 4,074,439 4,072,518 0%
Telecommunications 115,623 115,029 1%
Repairs and maintenance 281,689 382,153 -26%
Vehicles maintenance 350,663 318,719 10%
Equipment purchases/lease 73,481 112,977 -35%
Supplies/services 1,051,650 1,039,350 1%
Other expenses 476,100 534,367 -11%
Total operating expenses excluding depreciation 18,240,313 18,131,004 1%

Operating income before depreciation 3,629,397 2,715,899 34%

Depreciation expenses 3,424,513 3,436,043 0%
Change in net position 204,884 (720,144) -128%
Capital contributions for stabilization of Renwick Ruins - 29,113 -100%
Net position, beginning of year 80,070,705 80,761,736 -1%
Net position, end of year $ 80,275,589 $ 80,070,705 0%

6
 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 2012 % Change

Seawall $ 2,801,889 $ 2,846,890 -2%

Buildings 12,913,630 12,451,326 4%
Land improvements 6,809,287 6,351,161 7%
Machinery and equipment 2,467,171 3,001,922 -18%
Infrastructure 43,693,442 42,439,263 3%
Leasehold Improvements 39,122 - 100%
Net capital assets $ 68,724,541 $ 67,090,562 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

7
 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 $ 692,141 $ 417,734
Short-term investments 40,047,969 41,792,429
Receivables 1,086,151 983,142
Prepaid expenses 1,437,302 1,199,409
Total current assets 43,263,563 44,392,714
Noncurrent investments 2,050,455 2,046,345
Capital assets, net of accumulated depreciation 68,724,541 67,090,562

Total assets $ 114,038,559 $ 113,529,621

Liabilities and Net Position

Current liabilities - accounts payable and accrued expenses $ 809,459 $ 457,249

Compensated absences 556,151 413,532
Unearned revenue 29,910,944 30,437,919
Postemployment benefits other than pension 2,382,670 2,046,344
Other liabilities 103,746 103,872

Total liabilities 33,762,970 33,458,916

Net Position:
Investment in capital assets 68,724,541 67,090,562
Restricted for capital projects 10,450,427 11,113,352
Unrestricted net assets 1,100,621 1,866,791
Total net position 80,275,589 80,070,705

Total liabilities and net position $ 114,038,559 $ 113,529,621

See accompanying notes to financial statements.

12
 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 2012

Operating revenues:
Residential fees $ 1,111,441 $ 878,320
Ground rent 9,356,679 9,174,109
Commercial rent 1,421,038 1,296,141
Tramway revenue 4,640,843 4,297,891
Public safety reimbursement 1,673,097 1,613,297
Transport/parking revenue 2,521,892 2,485,613
Interest income 185,403 263,633
Other revenues 959,317 837,899
Total operating revenues 21,869,710 20,846,903

Operating expenses:
Personnel services 10,008,395 9,795,206
Insurance 1,137,448 1,061,546
Professional services and legal services 670,825 699,139
Management fees 4,074,439 4,072,518
Telecommunications 115,623 115,029
Repairs and maintenance 281,689 382,153
Vehicles maintenance 350,663 318,719
Equipment purchases/lease 73,481 112,977
Supplies/services 1,051,650 1,039,350
Other expenses 476,100 534,367
Total operating expenses excluding depreciation 18,240,313 18,131,004

Operating income before depreciation 3,629,397 2,715,899

Depreciation expenses 3,424,513 3,436,043
Change in net position 204,884 (720,144)
Net position, beginning of year 80,070,705 80,761,736
Capital contributions for stabilization of Renwick Ruins - 29,113
Net position, end of year $ 80,275,589 $ 80,070,705

See accompanying notes to financial statements.

13
 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

2013 2012
Cash flows from operating activities:
Receipts from tenants and customers $ 21,611,911 $ 20,712,144
Payments related to employees (9,822,014) (9,553,102)
Payments to vendors (8,197,349) (9,255,816)
Net cash provided by operating activities 3,592,548 1,903,226
Cash flow from investing activities
Purchase of capital assets (5,058,492) (4,130,906)
Purchases of noncurrent investments (4,110) (766,521)
Purchase of short-term investments (3,755,806) (25,672,950)
Sale of short-term investments 5,500,267 28,188,338
Net cash used by investing activities (3,318,141) (2,382,039)
Cash flow from financing activities
Capital contributions for Renwick Ruins Project - 29,113
Net cash provided by financing activities - 29,113

Net increase in cash 274,407 (449,700)

Cash at beginning of year 417,734 867,434
Cash at end of year $ 692,141 $ 417,734

Reconciliation of operating income to net cash

provided by operating activities
Operating income (loss) $ 204,884 $ (720,144)
Adjustments to reconcile operating income (loss) to net
cash provided by all activities:
Depreciation and amortization 3,424,513 3,436,044
Provision for bad debt (5,650)
Changes in:
Receivables (103,010) 121,469
Prepaid expenses (237,893) (711,019)
Accounts payable and accrued expenses 352,210 (77,034)
Compensated absences (526,975) (101,198)
Unearned revenue 142,620 (376,510)
Postemployment benefits other than pension 336,325 337,865
Other liabilities (126) (597)
Net cash provided by operating activities $ 3,592,548 $ 1,903,226

See accompanying notes to financial statements.

14
 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 2012

Cash - deposits $ 692,141 $ 417,734

Short-term investments:
Certificates of deposit (CDARS) 21,135,884 20,990,528
Money market accounts 18,912,085 20,801,901
40,047,969 41,792,429

Total cash and cash equivalents $ 40,740,110 $ 42,210,163

16
 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) 73

Buildings 40
Building improvements 15
Infrastructure 50
Vehicles 10
Office equipment 5
Computer equipment 5
Leasehold improvements 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:

Balance at Balance at
Buildings April 01, 2012 Additions Amortization March 31, 2013

Octagon $ 2,687,361 $ - $ (47,354) $ 2,640,007

Southtown Bldg #1 1,806,666 - (31,836) 1,774,830
Southtown Bldg #2 1,723,950 - (30,378) 1,693,572
Southtown Bldg #3 3,684,234 - (64,920) 3,619,314
Southtown Bldg #4 4,803,418 - (84,642) 4,718,776
Southtown Bldg #5 6,133,911 - (108,087) 6,025,824
Southtown Bldg #6 9,441,305 - (166,367) 9,274,938
Sportspark Field 157,074 163,683 (157,074) 163,683
Total $ 30,437,919 $ 163,683 $ (690,658) $ 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:
Balance at Balance at
Buildings April 01, 2012 Increase Decrease March 31, 2013

Capital assets:
Seawall $ 3,719,049 $ 6,000 $ - $ 3,725,049
Building and building improvements 40,326,092 1,680,705 - 42,006,797
Landmarks 13,300,334 748,839 - 14,049,173
Vehicles 4,315,621 79,641 - 4,395,262
Equipment 3,276,243 98,923 - 3,375,166
Infrastructure 49,384,946 2,405,262 - 51,790,208
Leasehold improvements - 39,122 - 39,122
Total capital assets 114,322,285 5,058,492 - 119,380,777

Less accumulated depreciation:

Seawall (872,159) (51,001) - (923,160)
Building and building improvements (27,874,765) (1,218,402) - (29,093,167)
Landmarks (6,949,173) (290,713) - (7,239,886)
Vehicles (1,962,257) (435,491) - (2,397,748)
Equipment (2,627,685) (277,823) - (2,905,508)
Infrastructure (6,945,684) (1,151,083) - (8,096,767)
Total accumulated depreciation (47,231,723) (3,424,513) - (50,656,236)

Net capital assets $ 67,090,562 $ 1,633,979 $ - $ 68,724,541

19
 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 Balance at
April 1, 2011 Increase Decrease March 31, 2012
Capital assets:
Seawall $ 3,719,049 $ - $ - $ 3,719,049
Building and building improvements 39,924,943 401,149 - 40,326,092
Landmarks 12,989,185 311,149 - 13,300,334
Vehicles 4,277,552 38,069 - 4,315,621
Equipment 3,104,128 172,115 - 3,276,243
Infrastructure 46,176,522 3,208,424 - 49,384,946
Total capital assets 110,191,379 4,130,906 - 114,322,285

Less accumulated depreciation:

Seawall (821,213) (50,946) - (872,159)
Building and building improvements (26,703,515) (1,171,250) - (27,874,765)
Landmarks (6,664,821) (284,352) - (6,949,173)
Vehicles (1,533,747) (428,510) - (1,962,257)
Equipment (2,226,140) (401,545) - (2,627,685)
Infrastructure (5,846,244) (1,099,440) - (6,945,684)
Total accumulated depreciation (43,795,680) (3,436,043) - (47,231,723)

Net capital assets $ 66,395,699 $ 694,863 $ - $ 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 de-
designation (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 Housing Commercial

March 31 Companies Leases
2014 $ 11,601,033 $ 1,465,632
2015 12,337,866 1,695,366
2016 13,529,227 1,725,806
2017 14,653,964 1,781,969
2018 15,559,829 1,813,874

Total $ 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 $ 389,011

March 31, 2012 $ 639,065
March 31, 2013 $ 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
Coverages Coverage Amount

General liability - RIOC and Tram $125 million limit

Property $75 million loss limit
Boiler and machinery $100 million limit
Automobile $1 million limit
Public officials liability $5 million limit

25
 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 fiscal year 89/90 $ 1,299,964

Appropriation # 0066230 fiscal year 90/91 2,463,531
Appropriation # 0071968 fiscal year 91/92 2,702,481
Appropriation # 0078460 fiscal year 92/93 1,346,400
Appropriation # 0084266 fiscal year 93/94 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 10
Spouses of retired employees 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 2012
Actuarial accrued liability (AAL):
Actuarial accrued liability $ 4,879,082 $ 4,641,422
Less: Actuarial value of assets - -
Unfunded actuarial accrued liability (UAAL) $ 4,879,082 $ 4,641,422

Normal cost $ 261,151 $ 274,538

Annual OPEB Cost and Net OPEB Obligation
Annual required contribution $ 455,051 $ 458,992
Interest on net OPEB obligation 81,854 68,339
Adjustment to annual required contribution (78,955) (65,919)
Annual OPEB cost (expense) 457,950 461,412
Contribution made on a pay-as-you-go basis (121,625) (123,547)
Increase in net OPEB obligation 336,325 337,865
Net OPEB obligation at beginning of year 2,046,344 1,708,479
Net OPEB obligation at end of year $ 2,382,669 $ 2,046,344

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 Projected Unit Credit Method
Amortization period 30 years
Amortization method Level percent of pay, open group
Interest rate 4.0%
Inflation rate 3.0%
Annual payroll growth rate 3.5%
Retirement rates Later of age 65 and first eligibility

Healthcare cost trend:

Year Medical Trend Rate
2012 7.5%
2013 7.0%
2014 6.5%
2015 6.0%
2016 5.5%
2017 and beyond 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 Pre-
November 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

Ge ne ral Fund Public Capital Re se rve d

Operations Public Safety Bus Parking Parks/Rec. T ram Purpose Fund Fund Fund Total

Operating Revenues:
Residential fees $ 369,739 $ - $ - $ - $ - $ - $ - $ 540,116 $ 201,586 $ 1,111,441
Ground rent 9,356,679 - - - - - - - - 9,356,679
Commercial rent 1,421,038 - - - - - - - - 1,421,038
T ramway revenue - - - - - 4,640,843 - - - 4,640,843
Public safety reimbursement - 1,673,097 - - - - - - - 1,673,097
T ransport/parking revenue - - 451,055 2,070,838 - - - - - 2,521,893
Interest income 7,107 - - - - - 6 1,452 176,837 185,402
Other revenues 313,918 - - - 645,399 - - - - 959,317
T otal operating revenues 11,468,481 1,673,097 451,055 2,070,838 645,399 4,640,843 6 541,568 378,423 21,869,710
Operating Expenses:
Personnel Services :
Salaries 3,057,350 2,035,023 947,221 - 483,221 - - - - 6,522,815
T emporary employees 153,941 - - - 18,611 - - - - 172,552
Employee benefits 1,986,191 678,180 320,646 - 185,391 - - - - 3,170,408
Compensated absences expenses 142,620 - - - - - - - - 142,620
T otal personnel services 5,340,102 2,713,203 1,267,867 - 687,223 - - - - 10,008,395
Other T han Personnel Services (OT PS):
Insurance 987,448 - - - - 150,000 - - - 1,137,448
Professional services 364,345 - - - 59,319 - - - - 423,664
Management fees - - - 638,120 - 3,436,319 - - - 4,074,439
Legal services 247,161 - - - - - - - - 247,161
T elecommunications 115,623 - - - - - - - - 115,623
Island Improvements/Capital Plan 7,000 7,000
Repairs and maintenance 241,992 6,892 9,896 (1,545) 12,501 11,952 - - - 281,688
Vehicles maintenance 42,407 34,535 272,632 - 1,090 - - - - 350,664
Equipment purchases/lease 62,514 773 6,985 - 1,856 1,354 - - - 73,482
Supplies/services 494,733 90,738 47,911 73,556 163,037 181,674 - - - 1,051,649
Other expenses 92,898 14,218 2,977 - 83,354 70 275,583 - - 469,100
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

Operating income (loss) before depreciation 3,472,258 (1,187,262) (1,157,213) 1,360,707 (362,981) 859,474 (275,577) 541,568 378,423 3,629,397
Depreciation expense - - - - - - - 3,424,513 - 3,424,513
Operating income (loss) $ 3,472,258 $ (1,187,262) $ (1,157,213) $ 1,360,707 $ (362,981) $ 859,474 $ (275,577) $ (2,882,945) $ 378,423 $ 204,884

32
 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

Ge ne ral Fund Public Capital Reserved

Operations Public Safety T ransportation Parking Parks/Rec. T ram Purpose Fund Fund Fund Total

Operating Revenues:
Residential fees $ 369,739 $ - $ - $ - $ - $ - $ - $ 306,995 $ 201,586 $ 878,320
Ground rent 9,174,109 - - - - - - - - 9,174,109
Commercial rent 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
Interest income 12,976 - - - - - (5) 3,373 247,289 263,633
Other revenues 167,420 - - - 670,479 - - - - 837,899
T otal operating revenues 11,020,385 1,613,297 449,827 2,035,786 670,479 4,297,891 (5) 310,368 448,875 20,846,903
Operating Expenses
Personnel Services:
Salaries 3,311,788 1,986,680 724,628 - 438,816 - - - - 6,461,912
T emporary employees 132,143 5,520 - - 27,690 - - - - 165,353
Employee benefits 2,131,670 657,007 275,617 - 204,845 - - - - 3,269,139
Compensated absences expenses (101,198) - - - - - - - - (101,198)
T otal personnel services 5,474,403 2,649,207 1,000,245 - 671,351 - - - - 9,795,206
Other T han Personnel Services (OT PS) :
Insurance 911,546 - - - - 150,000 - - - 1,061,546
Professional services 550,671 - - - 40,839 - - - - 591,510
Management fees - - - 638,951 - 3,433,567 - - - 4,072,518
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
Supplies/services 536,046 98,358 37,975 70,620 136,995 159,356 - - - 1,039,350
Other expenses 132,368 16,635 2,395 - 106,494 2,025 274,450 - - 534,367
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

Operating income (loss) before depreciation 2,738,264 (1,203,126) (853,916) 1,311,881 (294,323) 532,331 (274,455) 310,368 448,875 2,715,899
Depreciation expense - - - - - - - 3,436,043 - 3,436,043
Operating income (loss) $ 2,738,264 $ (1,203,126) $ (853,916) $ 1,311,881 $ (294,323) $ 532,331 $ (274,455) $ (3,125,675) $ 448,875 $ (720,144)

33
 The Roosevelt Island Operating Corporation
(A Component Unit of the State of New York)
Budget Variance Report
Year Ended March 31, 2013
(Unaudited) Favorable (Unfavorable)
Actual Budget Variance Percent
Operating revenues:
Residential fees $ 1,111,441 $ 1,239,509 $ (128,068) -10%
Ground rent 9,356,679 9,453,000 (96,321) -1%
Commercial rent 1,421,038 1,437,000 (15,962) -1%
Tramway revenue 4,640,843 4,147,000 493,843 12%
Public safety reimbursement 1,673,097 1,662,000 11,097 1%
Transport/parking revenue 2,521,892 2,691,000 (169,108) -6%
Interest income 185,403 291,000 (105,597) -36%
Other revenues 959,317 703,000 256,317 36%
Total operating revenues 21,869,710 21,623,509 246,201 1%
Operating expenses:
Personnel Services:
Salaries 6,290,604 6,432,486 141,882 2%
Salaries - overtime 232,211 175,000 (57,211) -33%
Temporary employees 172,553 175,000 2,447 1%
Workers compensation & disability 128,234 162,133 33,899 21%
ER payroll taxes 582,080 584,603 2,523 0%
Health insurance 1,111,071 1,275,238 164,167 13%
Dental/vision 68,124 74,777 6,653 9%
Pension 772,110 757,755 (14,355) -2%
Other employee benefits 508,788 476,722 (32,066) -7%
Compensated absences expenses 142,620 - (142,620) 100%
Total Personnel Services 10,008,395 10,113,714 105,319 1%
Other Than Personnel Services (OTPS) :
Insurance 1,137,448 1,150,000 12,552 1%
Professional services 406,600 320,900 (85,700) -27%
Marketing /advertisting 17,063 17,400 337 2%
Management fees 4,074,439 4,077,200 2,761 0%
Legal services 247,161 200,000 (47,161) -24%
Telecommunications 115,623 107,100 (8,523) -8%
Island Improvements/Capital Plan 7,000 - (7,000) 0%
Repairs and maintenance 169,451 402,200 232,749 58%
Repairs and maintenance equipment 14,019 25,200 11,181 44%
Other repairs and maintenance 98,219 105,000 6,781 6%
Vehicles gas 208,240 168,300 (39,940) -24%
Vehicles repair and maintenance 76,406 83,600 7,194 9%
Vehicles parts 66,017 37,200 (28,817) -77%
Equipment lease 28,980 16,400 (12,580) -77%
Office equipment purchase 12,067 19,800 7,733 39%
Equipment purchases 23,324 53,600 30,276 56%
Other equipment purchases 9,111 18,000 8,889 49%
Exterminator 9,800 17,100 7,300 43%
Uniforms 46,241 66,950 20,709 31%
Light, power, heat 650,696 588,000 (62,696) -11%
Water and sewer 45,797 8,600 (37,197) -433%
Office supplies 14,819 17,100 2,281 13%
Parts and supplies 232,665 210,700 (21,965) -10%
Service maintenance agreement 51,632 70,500 18,868 27%
Employee travel and meal 8,229 17,500 9,271 53%
Employee training 27,783 56,400 28,617 51%
Shipping 8,763 13,400 4,637 35%
Subscriptions /membership 18,043 15,700 (2,343) -15%
Other expenses 324,159 338,200 14,041 4%
Island Events - Community relations 82,123 85,000 2,877 3%
Total Other Than Personnel Services 8,231,918 8,307,050 75,132 1%
Total operating expenses excluding depreciation 18,240,313 18,420,764 180,451 1%
Operating income (loss) before depreciation 3,629,397 3,202,745 426,652 13%
Depreciation expenses 3,424,513 3,577,000 152,487 4%
Operating income (loss) $ 204,884 $ (374,255) $ 579,139 155%

34
 The Roosevelt Island Operating Corporation (RIOC)
(A Component Unit of the State of New York)
Budget Variance Report
Year Ended March 31, 2012

(Unaudited) Favorable (Unfavorable)

Actual Budget Variance Percent
Operating revenues:
Residential fees $ 878,320 $ 966,775 $ (88,455) -9%
Ground rent 9,174,109 9,199,000 (24,891) 0%
Commercial rent 1,296,141 1,607,000 (310,859) -19%
Tramway revenue 4,297,891 3,744,000 553,891 15%
Public safety reimbursement 1,613,297 1,615,000 (1,703) 0%
Transport/parking revenue 2,485,613 2,576,000 (90,387) -4%
Interest income 263,633 509,000 (245,367) -48%
Other revenues 837,899 617,000 220,899 36%
Total operating revenues 20,846,903 20,833,775 13,128 0%
Operating expenses:
Personnel Services :
Salaries 6,316,468 6,349,785 33,317 1%
Salaries-overtime 145,444 175,000 29,556 17%
Temporary employees 165,353 175,000 9,647 6%
Workers compensation & disability 190,595 186,098 (4,497) -2%
ER payroll taxes 573,367 579,699 6,332 1%
Health insurance 1,083,897 1,190,395 106,498 9%
Dental/vision 75,411 72,482 (2,929) -4%
Pension 836,645 700,868 (135,777) -19%
Other employee benefits 509,224 473,804 (35,420) -7%
Compensated absences expenses (101,198) - 101,198 100%
Total Personnel Services 9,795,206 9,903,131 107,925 1%
Other Than Personnel Services (OTPS) :
Insurance 1,061,546 940,000 (121,546) -13%
Professional services 583,375 404,200 (179,175) -44%
Marketing/advertisting 8,135 18,600 10,465 56%
Management fees 4,072,518 4,135,200 62,682 2%
Legal services 107,629 375,000 267,371 71%
Telecommunications 115,029 106,800 (8,229) -8%
Repairs and maintenance 286,126 391,400 105,274 27%
Repairs and maintenance equipment 18,288 21,600 3,312 15%
Other repairs and maintenance 77,738 85,000 7,262 9%
Vehicles gas 171,689 146,100 (25,589) -18%
Vehicles repairs and maintenance 83,908 83,600 (308) 0%
Vehicles parts 63,122 34,200 (28,922) -85%
Equipment lease 18,485 20,600 2,115 10%
Office equipment purchase 17,726 22,200 4,474 20%
Equipment purchases 54,731 57,800 3,069 5%
Other equipment purchases 22,036 26,000 3,964 15%
Exterminator 10,780 15,600 4,820 31%
Uniforms 53,375 69,870 16,495 24%
Light, power, and heat 667,272 469,000 (198,272) -42%
Water and sewer 9,067 20,000 10,933 55%
Office supplies 17,187 20,700 3,513 17%
Parts and supplies 251,878 227,100 (24,778) -11%
Service maintenance agreement 29,790 80,100 50,310 63%
Employee travel and meal 19,388 17,200 (2,188) -13%
Employee training 50,142 56,400 6,258 11%
Shipping 9,933 13,400 3,467 26%
Subscriptions/membership 15,464 14,500 (964) -7%
Other expenses 337,288 340,000 2,712 1%
Island Events - Community relations 102,153 85,000 (17,153) -20%
Total Other Than Personnel Services 8,335,798 8,297,170 (38,628) 0%
Total operating expenses excluding depreciation 18,131,004 18,200,301 69,297 0%
Operating income (loss) before depreciation 2,715,899 2,633,474 82,425 3%
Depreciation expenses 3,436,043 3,256,000 (180,043) -6%

Operating income (loss) $ (720,144) $ (622,526) $ (97,618) -16%

35
 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