SPECIAL MEETING - Laserfiche WebLink

increased several years ago to promote a continued enhanced level of resident activities in conjunction with the new management. The service coordinator has been budgeted for five hours per week (the same as the current year) with a 2% hourly rate increase. Utilities After experiencing major increases several years ago, utility costs have remained relatively stable during the past three years and are forecast to increase by a modest 5%. The higher increases observed three years ago were offset by savings in gas costs realized through rate cuts and a change in supplier. In addition, energy efficient windows and appliances were recently installed in many of the units. The estimates shown in the draft budget are based on the most current information available and on management's analysis of costs over the past few months. The availability of HUD Operating Subsidy funds is helping to alleviate the impact to the budget of incremental increases in utility costs. Maintenance Maintenance expenses (both ordinary and extraordinary) are projected to decrease slightly as compared to last year. This is due to a general reduction in repair and contract costs for several smaller line items. As in the past, approximately 4% of the salary for the maintenance technician will be covered through CFP funds. As in prior years, some of the activities normally associated with facility maintenance will also be addressed as part of projects funded with CFP funds. HUD Capital Fund Program (CFP) The Housing Authority receives approximately $50,000 per year through the Capital Fund Program (CFP). These funds are drawn down funds throughout the year based on a plan filed annually with HUD through the Annual Agency Plan. The budget forecasts an additional allocation of$43,118 in CFP funds for FY 2012/13. These funds, combined with carry-over funds from prior year grants, will be allocated toward various "extraordinary maintenance" activities such as exterior and interior replacements and non-recurring replacement and maintenance items (appliances, plumbing, HVAC, and interior replacements, and a related portion of maintenance salaries). Alternatives The proposed Operating Budget represents the realistic costs and revenues expected during the coming year. In addition, it also includes the anticipated annual allocation of CFP funds for FY 2012/13 for extraordinary maintenance items. The budget presented includes a projected annual operating deficit of $24,258. This deficit results after staff reduced operating expenses, gained HUD approval to include some administrative expenses as part of the HUD capital grant (Accts. 4110 and 4410) and made reasonable rental income projections. Staff has identified the following two alternatives to address the deficit: 1. Reduce Service Coordinator expenses (Acct. 4210) by $7,259, thereby eliminating regular services but retaining$1,800 fora minimal level of service, and utilize $16,999 from project reserves. Social services are currently provided by a Barcelon Associates social services coordinator at approximately 22 hours/month and a Barcelon Associates social services supervisor. With this alternative, the social services coordinator would be eliminated but the social services supervisor would be retained. However, the role of the social services supervisor is to provide on-site Page -3 -