Laserfiche WebLink
ATTACHMENT 2 <br /> THE CITY OF Housing Commission <br /> Agenda Report <br /> ® „ <br /> alma, I 111 <br /> pLE ASANTON© June 19,2 014 <br /> SUBJECT: Approval of Annual Operating Budget for Kottinger <br /> Place for Fiscal Year 2014/15 <br /> STAFF RECOMMENDATION: 1) Adopt the attached draft resolution approving the annual <br /> Operating Budget for Kottinger Place for fiscal year <br /> 2013/14; and, <br /> 2) Recommend that the City Council, acting as the Housing <br /> Authority Board of Directors, approve the Operating <br /> Budget at its meeting of July 8, 2014. <br /> ATTACHMENTS: 1. Draft Resolution <br /> 2. Proposed Operating Budget for FY 2014/15 (With <br /> Footnotes) <br /> Background <br /> Attached is the proposed Operating Budget for fiscal year 2014/15 (July 1, 2014, to June 30, 2015) for <br /> Kottinger Place. The document has been prepared by Barcelon Associates based on a format <br /> recommended by HUD. As per the Commission's past direction, Barcelon has submitted a budget <br /> which it feels to be realistic. A summary of income and expenditures ("Budget Footnotes") is included <br /> as an attachment. The budget also includes columns for the original and projected/actual budget for <br /> the current year for each line item to provide a comparison with proposed budget line item amounts. <br /> As the Commission is aware, an Operating Budget must be adopted each year and is used as the <br /> overall financial plan for the project during the coming fiscal year. The Operating Budget must receive <br /> final approval from the Housing Authority Board of Directors (the City Council) prior to submittal to <br /> HUD. The Council is tentatively scheduled to review and take action on the budget at its meeting of <br /> July 8, 2014. <br /> Discussion <br /> Staff is projecting that the annual operating expenses at Kottinger Place will be $315,158. This <br /> represents an increase of 14% over FY 2013/14 annualized expenses of $276,227. This increase is <br /> due primarily to increases in expenses related to administration and taxes and insurance. However, it <br /> is offset by a 22% increase in revenue primarily due to increased Operating Subsidy (OFND) grant <br /> revenue expected from HUD. The Operating Budget includes $156,000 in anticipated HUD grant <br /> revenue from OFND which has been a significant positive factor in supporting staffing and <br /> administration at desired levels deemed appropriate for a complex of this size and age. <br /> Page - 1 - <br />