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Ordinance No. 1701 <br /> Page 8 <br /> (3) Calculate the real property taxes as described in Section 6.60.065 A of <br /> this Chapter. <br /> <br /> (4) Add the amount in (2) and (3) to the monthly rent. <br /> <br /> (5) Add the capital improvement cost, if any, to (4). Round to the nearest <br /> half dollar. This is the adjusted monthly rent. <br /> <br /> B. If a park owner selects Formula B, the adjusted monthly rents shall be adjusted <br /> no more than once annually and shall be calculated as set forth below: <br /> <br /> For 1998: <br /> <br /> (1) From the adjusted monthly rent, subtract the capital improvement costs <br /> (Section 6.60.050), if any. (This is the monthly rent.) <br /> <br /> (2) Subtract from (1) the operating expenses and the real property taxes <br /> paid through September 30, 1996. This equals the 1997 base rent. <br /> <br /> (3) Multiply (2) by the cost of living. (This number represents the owner's <br /> "return on investment"; when added to the base rent in (2), it yields the <br /> base rent for 1998.) <br /> <br /> (4) Calculate the operating expenses (that now includes government <br /> regulated expenses other than real property taxes) for 9/30/97 by dividing <br />· the operating expenses by the product of 12 and the number of spaces in <br /> the park; provided, however that this amount shall not exceed 105% of the <br /> 9/30/96 operating expenses; to the extent it does, the excess shall be <br /> carried over to the next year. <br /> <br /> (5) Calculate the real property taxes for 9/30/97 by dividing the real <br /> property taxes by the product of 12 and the number of spaces in the park; <br /> provided, however, that if there has been a change of ownership (see <br /> California Revenue and Taxation Code, §§60 et seq.), and the real <br /> property taxes have increased for 9/30/97 are more than 105% of the <br /> 9/30/96 real property taxes, the real property taxes shall be calculated as <br /> set forth in Section 6.60.065 B of this Chapter. <br /> <br /> (6) Add the amounts in (2), (3), (4) and (5). This equals the monthly rent <br /> for 1998. <br /> <br /> (7) Add the capital improvements cost, if any, to (6). Round to the <br /> nearest half dollar. This is the adjusted monthly rent for 1998. <br /> <br /> See the examples in Exhibits A-1 and A-2. <br /> <br /> <br />