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Ordinance No. 1701 Page 13 Ordinance. Income from and expenses attributable to spaces that are exempted from this Ordinance shall not be considered. (For example, if 40% of the home owners are subject to this Ordinance, then only 40% of the income and expenses shall be considered.) The net operating income for the base year shall be determined only for the spaces affected by the petition. (Section C, no change.) D. Determination of Base Year Net Operating Income. To determine the net operating income during the base year, there shall be deducted from the base year gross income a sum equal to the actual base year operating expenses and the real property taxes unless the park owner demonstrates to the satisfaction of the Hearing Officer that some other (12) twelve consecutive month period is justified pursuant to this Chapter. E. Special Base Year Operating Income Adjustment. It may be determined by the Hearing Officer that the base year net operating income yielded other than a fair return on the park owner's investment. In that case the base year net operating income may be adjusted accordingly. In order to make such determination, the Hearing Officer shall make at least one of the following findings: 1. The park owner's operating expenses and real property taxes in the base year were unusually high or low in comparison to other years. In such instances adjustments may be made in calculating such expenses so the base year of operating expenses reflects average expenses for the park over a reasonable period of time. The following factors shall be considered in making this decision. (Paragraphs a - c, no change.) (Subsection 2, no change.) F. Schedule of increases in operating expenses and real property taxes. Where the schedule of rent increases or other calculations require projections of a prior years income and expenses, it shall be presumed, subject to rebuttal, that operating expenses, exclusive of property taxes and management expenses, increased at the cost of living, that property taxes increased at 2% per year, and that management expenses are 5% of gross income. G. Authorized Adjustments. The Heating Officer shall grant an increase to a park owner in excess of that allowed by Section 6.60.060 if the Hearing Officer finds and determines that it is necessary to provide the park owner with a net operating income, after adjustment for 100% of the increase in the cost of living, equal to the net operating income realized for the park during the base year. The percentage