We use cookies on this site to enhance your experience.
By selecting “Accept” and continuing to use this website, you consent to the use of cookies.
The Real Estate Budget will have a deficit in 2018/19 resulting from the Market Square operations. A tenant for the call centre area was not secured in 2017/18 due to the political environment in the United States resulting in vacant space in the building. The Brant County Museum was not able to secure funding from the municipality to relocate to Market Square impacting 2017/18 operations and 2018/19 revenue forecasts. Revenues for 2018/19 for the Market Square portfolio are based on the current rent roll. New leases are pending renovations outlined in the recently completed Master Plan for this property.
In January 2018, operations for the Market Square properties were taken in-house and will eliminate third-party management fees. The insurance expense for this property will increase in 2018/19 to reflect replacement value coverage. Additional property tax exemption is being pursued for Market Square.
Three new houses were added to the house portfolio in 2018/19. The combined house and Ezra-Bricker portfolio profits in 2018/19 will cover real estate administration expenses and provide a $70,000 contribution to operating funds for the University. Capital repairs and renovations for the portfolio holdings will be funded through the reserve funds.
| Year | Description | Reserve Funds | Unappropriated Reserve Funds |
|---|---|---|---|
| 2017/18 | Opening balance at May 1, 2017 | 667 | N/A |
| Budget net surplus/(deficit) | 28 | (438) | |
| Less contribution to operating | 70 | N/A | |
| Projected transfers to/from reserve | 201 | N/A | |
| Ending balance at April 30, 2018 | 826 | N/A | |
| 2017/18 | Opening balance at May 1, 2018 | 826 | (438) |
| Budget net surplus/(deficit) | 283 | (864) | |
| Less contribution to operating | 70 | N/A | |
| Projected transfers to/from reserve | 122 1 | N/A | |
| Ending balance at April 30, 2019 | 1,161 | (1,302) |
1 Does not include capital repairs/renovations required within the house portfolio and at Market Square as cost estimates not available at time of report preparation.
| Ezra/Bricker Apartments | 2017/18 Budget |
2018/19 Proposed Budget |
|---|---|---|
| Rental revenue | 5,037 | 5,171 |
| Ancillary revenue | 111 | 111 |
| Net cash rental revenue | 5,148 | 5,282 |
| Operating expenses | 1,074 | 1,180 |
| Internet servicing | 125 | 125 |
| Management fees | 209 | 214 |
| Net income before debt service expense | 3,739 | 3,763 |
| Debt service expense: Principal portion | 1,650 | 1,654 |
| Debt service expense: Interest portion | 1,724 | 1,728 |
| Ezra/Bricker Apartments Total | 365 | 381 |
| House Properties | 2017/18 Budget |
2018/19 Proposed Budget |
| Rental revenue | 686 | 791 1 |
| Operating expenses | 276 | 307 |
| Management fees | 24 | 27 |
| Net income before debt service expense | 286 | 458 |
| Internal loans | 273 2 | 454 2 |
| House Properties Total | 113 | 4 |
| Market Square Properties | 2017/18 Budget |
2018/19 Proposed Budget |
| Rental revenue | 1,986 3 | 1,497 3 |
| Less: Prepaid rent (acquisition costs) | 745 | 745 |
| Net cash rental revenue | 1,241 | 752 |
| Operating expenses | 1,042 | 1,102 4 |
| Management fees | 124 | 5 |
| Net income before debt service expense | 75 | (351) |
| Debt service expense: Principal portion | 224 | 224 |
| Debt service expense: Interest portion | 289 | 289 |
| Market Square Properties Total | (438) | (864) |
| Real Estate Administration | 2017/18 Budget |
2018/19 Proposed Budget |
| Totals | (451) | (102) 6 |
| Surplus (Deficit) Before Operating Fund Contribution |
2017/18 Budget |
2018/19 Proposed Budget |
| Totals | (410) | (580) |
| Contribution to Operating Fund | 2017/18 Budget |
2018/19 Proposed Budget |
| Totals | 70 | 70 |
| Net Surplus (Deficit) to/(from) Reserve Fund |
2017/18 Budget |
2018/19 Proposed Budget |
| Totals | (480) | (650) |
1 Includes revenue for three properties added to house portfolio in 2017/18.
2 Debt service for 51 Bricker purchased in 2016/17 omitted in 2017/18 budget. 2018/19 budget figure includes this property as well as the three properties purchased in 2017/18.
3 Call Centre lease not secured in 2017/18 due to political change in the U.S.; Brant Museum did not receive municipal funding to relocate the premises to Market Square; Furniture décor did not renew lease affecting 2017/18 actuals. Budget for 2018/19 based on current rent roll. New leases are pending renovations outlined in the Master Plan for this property.
4 Pursuing additional property tax exemption of more than $100,000 per year. Insurance expense increased to provide replacement value coverage.
5 Property management of Market Square taken in house in January 2018.
6 Organizational changes resulted in move of Real Estate division into Facilities and Asset Management.