The RIOC Board of Directors Thursday morning approved a $13.6 million budget for fiscal 2004-05 that reflects actual day-to-day operating expenses of nearly $12 million.  The difference encompasses $1 million for new buses, an expenditure which will occur only if it is offset by comparable revenue, and a $300,000 expense related to the development of the Octagon Apartments which, if it occurs, will also be offset by revenue.

Capital improvement expenditures in the budget amount to $900,000, called “major Island improvements,” which will be deferred if the funds, expected from developers, do not become available.

During discussion of the budget and the balance of the meeting, these additional items of information came out:

•  The Board did not act on the Youth Center’s need for space, though the matter was discussed in its executive session that followed the public meeting, according to a source in a position to know.  The Youth Program, headed by Charles De Fino, has been seeking the former Lilies Christian School space at 502 Main Street.  De Fino is concerned about losing the funds if space that can be renovated cannot be secured.  After the meeting, however, a Board member told The WIRE that the Board had reached a consensus that something should be done for the Center so that the funding is not lost, or that other, comparable provisions should be made for the Youth Program.

•  RIOC President Herb Berman, responding to a question from resident Board member Mark Ponton, said that it is “absolutely not the case” that RIOC management has decided to discontinue maintenance of sections of Z-brick on the Island and substitute asphalt or blacktop.  Board Chair Mary Beth Labate said the five-year capital plan includes funds for the higher cost of maintaining the Z-bricks.

•  Certain items of Island infrastructure, in particular the street lighting, will be maintained in the future by the City when and if all elements are converted to the City standard.

•  Board member Leo Kayser asked about the impact on the budget of increased Tram revenue resulting from the higher ridership spurred by availability of MetroCard transfers.  Berman said that the revenue numbers, which will come from the MTA based on turnstile activity, are not yet available.

•  The Board approved an “override” of some 47 City zoning requirements, such as allowing Southtown building #3 to be built to the property line, ignoring City “breezeway” requirements that do not apply because the plaza over the subway will serve that purpose.

•  Discussion indicated that RIOC will retain some control over commercial uses of ground-floor space in Southtown buildings #3 and #4.  Berman indicated attention would be paid to the concerns of competition in the Island’s micro-economy.

•  In his President’s report, Berman said RIOC is hiring an elevator expert to develop and implement a permanent solution to the problem of frequent elevator outages and erratic operation at Motorgate.

The budget passed Thursday morning does not include the cost of increases in union wages; all those contracts are pending – for building and grounds, Public Safety staff, and administrative staff.  Labate said budget increases for those matters would be considered in future meetings.