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Pro-Forma Operating Budget
Project:
# Beds
16
Boston Community Cooperatives, Inc.
Charge Increase
2%
Example Property
Expense Increase
3%
28 Moreland St, Somerville MA, 02145
Vacancy Factor
5%
Income
Year 1
Year 2
Year 3
Year 4
Year 5
Member charges*
118,560.00
120,931.20
123,349.82
125,816.82
128,333.16
Gross Potential Income
118,560.00
120,931.20
123,349.82
125,816.82
128,333.16
Vacancy factor
5,928.00
6,046.56
6,167.49
6,290.84
6,416.66
Total Effective Income
112,632.00
114,884.64
117,182.33
119,525.98
121,916.50
Expenses
Operating Expenses
Repairs/Operating Costs
11,716.80
12,068.30
12,430.35
12,803.26
13,187.36
Property Taxes
9,466.20
9,750.19
10,042.69
10,343.97
10,654.29
Insurance
1,600.00
1,648.00
1,697.44
1,748.36
1,800.81
Utilities
10,560.00
10,876.80
11,203.10
11,539.20
11,885.37
Co-op Education
300.00
309.00
318.27
327.82
337.65
Development Fund
800.00
824.00
848.72
874.18
900.41
Total Operating Expenses
34,443.00
35,476.29
36,540.58
37,636.80
38,765.90
Net Operating Income
78,189.00
79,408.35
80,641.75
81,889.18
83,150.60
Debt Service
71,880.10
71,880.10
71,880.10
71,880.10
71,880.10
Total Expenses
106,323.10
107,356.39
108,420.68
109,516.90
110,646.00
Net Income (Loss)
6,308.90
7,528.25
8,761.65
10,009.08
11,270.50
Debt Service Coverage Ratio
1.09
1.10
1.12
1.14
1.16
* Charges do not include food.
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For all of its faults, it gives most hardworking people a chance to improve themselves economically, even as the deck is stacked in favor of the privileged few. Here are the choices most of us face in such a system: Get bitter or get busy. | Bill O’ Reilly