The following is a reproduction of a memo dated 21 December 2018, distributed by management to all shareholders.

Dear Shareholders,

During our December meeting, the Board set the budget for the 2019 fiscal year. Due to the fiscal responsibility of the Boards over the past several years, we are proud to announce that this year we will only have an increase of 1.25%, and the capital assessment of maintenance will maintain at 10%. This is the lowest overall increase implemented in the last 9 years.

This modest increase ensures that we will have sufficient cash on hand to fund all co-op operations while having additional funds in case of an emergency. The capital assessment will allow us to fund needed improvements in both the short and long term, while also assuring lenders that our co-op’s finances are sound.

The Board understands that any increase can greatly affect our shareholders, and we do not take that fact lightly. Operating expenses increase incrementally year over year due to inflation, and we have many fixed costs that we cannot control. With the little discretionary funds we have to work with, we try to set up projects that improve our wonderful co-op and make it a great place to live, like our playground last year.

In order to improve security for the building and to address our aging intercoms that require more maintenance every year, included in this budget is a plan to upgrade the intercom system for all the buildings. More information will follow in the upcoming year as plans start to form.

Sincerely,
Nagle Apartments Corp. Board of Directors

The following is a reproduction of a memo sent on 12 January 2018 to all shareholders by our co-op’s certified public accountants: Prisand, Mellina, Unterlack & Co., LLP. View/download the scanned memo (PDF, 26KB).

To: Shareholders of Nagle Apartments Corp.

Re: Personal income tax return data for 2017

Dear Shareholders:

Under the provisions of Section 216 of the Internal Revenue Code, a tenant stockholder of a Cooperative apartment is entitled to deduct from personal gross income a proportionate share of interest and real estate tax paid or incurred by the Cooperative Corporation. Note that these deductions are generally available if the taxpayer itemizes tax deductions.

For the year 2017 your per share individual income tax deductions are as follows:

Mortgage interest     $9.74 per share

Real estate tax     $22.81 per share

For the year 2017, if you were granted any real estate tax abatements, reflected in a maintenance credit or received by check, your real estate tax deduction as stated above should be reduced by the amount of the abatements you received.

In order to compute your total deductions for 2017, multiply the number of shares owned by you, as indicated on your stock certificate, by the amounts per share stated above. If you became a stockholder, or sold your stock in the Corporation during 2017, you are permitted to deduct a fractional part of the figures, based on the proportionate part of the year you owned the stock.

Contributed capital in 2017 was $18.98 per share for mortgage amortization and $8.00 per share for capital assessment. This is not a deduction, but an increase in the basis of your investment.

Should you have any questions regarding the application of the aforementioned information to your individual income tax returns, please consult your personal tax advisor.

PRISAND, MELLINA, UNTERLACK & CO., LLP
Certified Public Accountants

The following is a reproduction of a memo dated 20 December 2017, distributed by management to all shareholders. View/download PDF of the scanned memo.

Dear Shareowners,

2017 yearly recap and look forward to 2018

2017 was a quieter year in terms of large projects after having done the building roofs, garage roof deck, and garage interior over the previous 4 years. In 2018 the focus will be on the lower courtyard and developing plans for a remodel of that space as well as looking into renewable energy sources, particularly Solar Power.

2018 budget and maintenance

In order to deal with anticipated increased costs in insurance, real estate taxes and other operating costs, the Board of Directors has voted to increase maintenance costs by 2.5%. Real Estate tax increases is the largest factor considered. The corporation fights the assessed value every year but it remains the single largest uncontrollable operating expense.

In addition, the current capital assessment will continue as 10% of the monthly maintenance. This makes the total increase of 2.75% total cost per shareholder for the year 2018.

The assessment continues our goal of 10% to meet federal banking regulations. Those regulations require us to maintain at least 10% of total maintenance as part of our reserve funds for capital expenditures. So as not to overly burden our shareholders, we have consciously kept our maintenance increases small and gradually built to this 10% goal over the last few years in order to meet these regulations. The 10% assessment is not temporary, it is an important part of permanent prudent financial planning for the coop and assists us in funding necessary capital projects such as the courtyard.

The Board of Directors, the staff and management wants to wish each of you a fantastic holiday season and a safe, healthy and prosperous 2018!