HOUSING AUTHORITY BOARD OF DIRECTORS

• BUDGET FOOTNOTES INCOME Total Rent Revenue: Budget is based on YTD Rental Income annualized. Grant revenue represents the HUD Operating Subsidy. Anticipated revenue from the OFND subsidy is$13,000 per month. Employee Rent: This expense is based on the estimated market rate rent for the employee unit of$1,122/month. Total Vacancies: Although the site has enjoyed nearly 100%occupancy for the current fiscal year, management thinks it prudent to budget for$1,500 of vacancy loss, in the event that a future turnover of a long-term resident takes more than a few Total Other Revenue: Budgeted investment income assumes a somewhat flat prognosis to interest rates and thus interest income. EXPENSES Total Marketing Expenses: Budgeted expenses for marketing consists of required Credit/Criminal background checks that are performed for applicants just prior to admission and a monthly fee of$80 to G5 for internet marketing. We would not anticipate for than 5 turnovers for the year at a cost of$30 each. Total Administrative Expenses: Payroll Processing: Based on 2.9%of total payroll. Office Salaries: Office Salaries are a combination of Corporate Occupancy expense and On-Call employee wages. Office Supplies: Based on year to date expenses annualized with a 3% increase. Management Fee: Proposed Management Fee of$57 Per Unit Per Month (PUPM).This comes out to$2850/month Manager Wages: Budget allows for up to a 2%performance and cost of living increase. Legal Expenses: Based on the cost of 1 evictions and related expenses. Audit expense: Based on a 5%increase over 2013-2014 costs. Telephone: Based on year to date amount annualized with a 5% increase. Bad Debt: Although no bad debt was written off in 2014, management feels,that it would not be prudent to plan for$0. Training/Seminars: Estimated amount for staff training, including mandated training for occupancy and Service Coordinator, as well as maintenance and Fair Housing training. Computer: This line item includes monthly expenses for computer security and maintenance,as well as annual costs for the accounting software licensing, etc. Dues and Subscriptions: Based on estimates for AHMA membership, etc..This membership allows for a"member"discount on most major training classes and the annual conference with intensive training sessions for occupancy, maintenance and HUD- related information. (AHMA=Affordable Housing Management Association) Total Utility Expenses(The cost of this category is based on the following assumptions): Electricity: Based on 2013-2014 figures annualized with a 10%. Water: Based on 2013-2014 figures annualized with a 10%increase. Even though water is being conserved, as possible, it is wise to anticipate high costs with the drought. Gas: Based on 2013-2014 figures annualized with a 10%increase. Sewer: Based on 2013-2014 figures annualized with a 10% increase