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-14- <br />The expense items were estimated analyzing each <br />expense category by comparing the actual fixed <br />and operating expenses of other buildings re- <br />fering to buildings owners and operators, cur- <br />rent operating reports and to the appraiser's <br />own files and to his experience in estimating <br />these expenses. The following analysis takes <br />into consideration all of these items and the <br />valuation estimate not only assumes full floor <br />occupancy for general office use but also use <br />of one of the two courtrooms for example, used <br />as a lecture hall, conference room, classroom <br />for educational use, or for public use on a <br />rented basis. <br />Income Approach - Projected Income/Expense Schedule <br />Gross Income Estimate - full floor occupancy with courtroom #1 <br />retain for use. <br />9,808 sf NRA @ $0.85, $8,337 per month <br />Annual gross income, rounded to $100,000 <br />Vacancy allowance, 3% 3,000 <br />Effective gross income. (100%) $ 97,000 <br />Fixed Expenses <br />Real estate taxes - $1501000 @ $4.493) $51616 <br />Insurance - 85% of $1,000,000 @ $0.14 <br />per $100 11190 <br />Total fixed expenses (7%) 6,806 <br />Operating Expenses <br />Janitorial & win ows, 91,808 <br />sf <br />@ $0.84 <br />$8,238 <br />Gas & electric, 9,808 sf @ <br />$0.89* <br />8,340 <br />Water $ scavenger, 9,808 sf <br />@ <br />$0.07 <br />687 <br />HVAC service, contract @ <br />800 <br />Bldg, repair & maintenance, <br />9,808 <br />sf <br />@ $0.11 <br />1,078 <br />Management & Administrative <br />@ <br />6% of EGI <br />5,820 <br />Misc. supplies, license, etc. <br />900 <br />Total operating expenses (27%) <br />$25.1 — <br />Total building expenses (34%) <br />Net income projection, <br />*Actual 1977-78 $7,583 for 12 months, add <br />15% rate increase. <br />32,669 <br />$ 64,331 <br />