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THE CITY of Housing Commission <br /> Agenda Report <br /> pLE ASANTONC May 21 , 2 15 <br /> SUBJECT: Approval of Annual Operating Budget for Kottinger <br /> Place for Fiscal Year 2015/16 <br /> STAFF RECOMMENDATION: 1) Adopt the attached draft resolution approving the annual <br /> Operating Budget for Kottinger Place for fiscal year <br /> 2015/16; 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 June 2, 2015. <br /> ATTACHMENTS: 1. Draft Resolution <br /> 2. Proposed Operating Budget for FY 2015/16 (With <br /> Footnotes) <br /> Background <br /> Attached is the proposed Operating Budget for fiscal year 2015/16 (July 1, 2015, to June 30, 2016) 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 /> June 2, 2015. <br /> Discussion <br /> Staff is projecting that the annual operating expenses at Kottinger Place will be $313,660. This <br /> represents a decrease of 0.5% over FY 2014/15 annualized expenses of $315,158. This fairly <br /> insignificant change is a factor of projected increases in utility expenses offset by savings related to <br /> administration, taxes and insurance. The Operating Budget includes $154,512 in anticipated HUD <br /> grant revenue from OFND (Operating Subsidy) which has been a significant positive factor in <br /> supporting staffing and administration at desired levels deemed appropriate for a complex of this size <br /> and age. <br /> Page - 1 - <br />