HOUSING AUTHORITY BOARD OF DIRECTORS

Conclusion 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 2014/15 for extraordinary maintenance items as well as the anticipated operating subsidy (OFND). The budget presented includes a projected surplus of$31,170 which is modest but an improvement from last year. Because of limited income and generally fixed expenditures, the Operating Budget for Kottinger Place is generally always "tight," with either a small surplus (ideally) or occasionally a modest deficit that must potentially be covered through a transfer from project reserves (the Housing Authority currently has a reserve balance of approximately $270,000). Should it become necessary to cover a budget deficit through project reserves (which is not anticipated), staff would bring the matter back to the Commission for consideration. As the Commission is aware, the City continues to move forward with the Kottinger Gardens project which involves the eventual replacement of Kottinger Place. At the present time, construction of the first phase of the new development is not forecast to begin before late 2015. Therefore, the proposed budget for FY 2014/15 should not be affected by progress on the redevelopment project. Staff Recommendation In accordance with Section 2.36.032 of the Municipal Code, the Housing Authority of the City of Pleasanton Board of Directors is required to formally adopt the annual Operating Budget. Therefore, staff is recommending that the Commission: 1) Adopt the attached draft resolution approving the annual Operating Budget for Kottinger Place for fiscal year 2014/15; and, 2) Recommend that the City Council, acting as the Housing Authority Board of Directors, approve the Operating Budget at its meeting of July 8, 2014. Page - 4 -