1998 MAY - Laserfiche WebLink

6.60.060 (see Section 6.60.050 of this Chapter) if any. This is the monthly rent. (2) Multiply (1) by the cost of living, but not less than 1% nor more than 5% of the monthly rent. (3) Calculate the real property taxes as described in subsection 6.60.065A of this Chapter. (4) Add the amount in (2) and (3) to the monthly rent. (5) Add the capital improvement cost, if any, to (4). Round to the nearest half dollar. This is the adjusted monthly rent. B. Formula B: If a park owner se- lects formula B, the adjusted monthly rents shall be adjusted no more than once annually and shall be calculated as set forth below: For 1998: (1) From the adjusted monthly rent, subtract the capital improvement costs (see Section 6.60.050 of this Chapter), if any. (This is the monthly rent.) (2) Subtract from (1) the operating expenses and the real property taxes paid through September 30, 1996. This equals the 1997 base rent. (3) Multiply (2) by the cost of living. (This number represents the owner's "return on investment"; when added to the base rent in (2), it yields the base rent for 1998.) (4) Calculate the operating expenses (that now includes government regulat- ed expenses other than real property taxes) for September 30, 1997, by di- viding the operating expenses by the product of 12 and the number of spaces in the park; provided, however, that this amount shall not exceed 105% of the September 30, 1996, operating ex- penses; to the extent it does, the excess shall be carried over to the next year. (5) Calculate the real property taxes for September 30, 1997, by dividing the real property taxes by the product of 12 and the number of spaces in the park; provided, however, that if there has been a change of ownership (see Cali- fornia Revenue and Taxation Code section 60 et seq.), and the real proper- ty taxes have increased for September 30, 1997, are more than 105°10 of the September 30, 1996, real property taxes, the real property taxes shall be calculated as set forth in subsection 6.60.065B of this Chapter. (6) Add the amounts in (2), (3), (4) and (5). This equals the monthly rent for 1998. (7) Add the capital improvements cost, if any, to (6). Round to the nearest half dollar. This is the adjusted monthly rent for 1998. See the examples in Exhibits A-1 and A-2 at the end of this Chapter. For 1999 and thereafter: (Steps (1) and (2) that were per- formed for 1998 are not necessary.) (3) Multiply the base rent for the previous year by the cost of living. (This amount, when added to the base rent for the previous year, yields the base rent for the next year. For exam- ple, to calculate the base rent for 1999, multiply the 1998 base rent by the 1998 cost of living and add that amount to the 1998 base rent.) (4) Calculate the operating expenses; provided, however, that this amount shall not exceed 105% of the previous 192-45 (Pleasanton 5-98)