HOUSING AUTHORITY SPECIAL AGENDA

Expenses Administration/Services The administrative expenses are projected to remain relatively stable with a slight decrease of approximately 4.6% as compared to last year. The management fee would remain stable at$34,200 ($57 PUPM/ per unit per month) after an increase last year. The current management fee is generally consistent with HUD's published fee schedule of management fees. On-site staff would receive a 2% salary increase (for cost of living and based on performance). A portion of the manager's salary will be covered by the CFP (Administration) as in prior years. The budget also reflects the addition of a small amount of funding to account for additional work performed for Kottinger throughout the year (as needed) by Barcelon support staff such as the Occupancy Specialist. The budget for tenant services (i.e., recreation supplies) was 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 5 hours per week (approximately the same as the current year)with a 2% hourly rate increase. Utilities After experiencing major increases several years ago, utility costs remained relatively stable last year. An increase of 13.1% is forecast for 2015-16. Increases observed several years ago have been offset by savings in gas costs realized through rate cuts and a change in supplier. In addition, energy efficient windows and appliances were installed in many of the units a few years ago. 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 OFND funds continues to help alleviate the impact to the budget of incremental increases in utility costs. Maintenance Maintenance expenses (both ordinary and extraordinary) are projected to remain stable as compared to last year. As in the past, a small percentage 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. As discussed above, the Housing Authority receives approximately $50,000 per year through the Capital Fund Program (CFP). These funds are drawn down throughout the year based on a plan filed annually with HUD through the Annual Agency Plan. While not included in the Operating Budget, staff forecasts a similar level of CFP funding for FY 2015/16 (the allocation for calendar year 2015 is $51,501). 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). 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 2015/16 Page -3 -