SR 05:150 - Laserfiche WebLink

attachment. The budget also includes "year-to-date actual" figures (as of March 2005) for each line item to provide a comparison with proposed budget line item amounts. An Operating Budget must be adopted each year and is used as the overall financial plan for the project during the coming fiscal year. The Operating Budget must receive final approval from the Housing Authority Board of Directors (the City Council) prior to submittal to HUD. DISCUSSION Staff is projecting that the annual operating expenses at Kottinger Place will be $201,600. This represents an increase of approximately 23% over estimated FY 2004/05 expenses of $164,363. This increase is due to general overall increases in utilities, maintenance, and administration costs. The continued availability of the Capital Grant funding will help to offset continued inflationary costs for landscape maintenance and utilities. Approximately 70% of the $201,600 in operating costs will be met through tenant rents, which are forecast to remain relatively stable (at $144,300) compared ~vith the prior fiscal year. Modest increases in overall tenant rents during the past year are anticipated to be offset by an influx of tenants with "zero-income" (as noted in the attached footnotes, the draft budget assumes 6 zero-income units). Administration/Services The administrative expenses would increase by approximately 20% overall to accommodate staff overtime, on-call availability, and increases inthe cost of health benefits. Staff overtime is anticipated to be necessary in order to cover the increased demands of documenting zero-income tenants. The budget for tenant services (i.e., recreation supplies) is being maintained at the same level of $1,000 for the coming year based on activity to date this year. The budget for the annual audit is generally the same as last year. As the Commission is aware, the majority (i.e., up to $6,000) of the audit costs are reimbursed annually by HUD. Utilities After experiencing major increases in utility costs over the past several years, most utility expenses are forecast to remain relatively stable in the coming year. 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. One exception is gas, for which the budget has been increased by approximately 37% based on year-to-date costs. This increase will be offset slightly by a 14% decrease in funds budgeted for water costs. The budget for line item 3692 (Cable TV income) reflects the maximum of the discounted rate based on 72% of the normal residential rate, which is the actual cost for cable service paid by the complex (therefore, effective three years ago, residents are no longer subsidized in the budget beyond the discounted rate already paid by the project). SR:05:150