ORD 1843 - Laserfiche WebLink

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. C. Presumption That Base Year Net Operating Income Provided A Fair Return. For the purpose of determining the rent increase necessary to provide the park owner with a fair return on investment, it shall be presumed that the net operating income for the calendar year 2001 (the base year) provided the park owner with a fair remm on investment. 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 twelve (12) 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 remm 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. a. The park owner made substantial capital improvements during the base year which were not reflected in the rent levels. b. Substantial repairs were made due to damage caused by natural disaster, vandalism or other unusual cause. c. Other expenses were unreasonably high or low due to unusual circumstances, notwithstanding prudent business practices. 2. The gross income during the base year was significantly lower than normal because of destruction of the premises and/or temporary eviction for construction or repairs, or other special cimumstances. 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 year's 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 two percent (2%) per year, and that management expenses are five percent (5%) of gross income. 16