SR 05:150 - Laserfiche WebLink

Maintenance Maintenance expenses (both ordinary and extraordinary) are projected to increase by approximately 10%, primarily as a result of increases in maintenance hours (from 20 to 25 hours per week), exterminating, trash removal, and appliance replacement (the budget would accommodate refrigerators and stoves in four units due to turnover or failure). As in prior years, some of the activities normally associated with facility maintenance will be addressed as part of projects funded with Capital Grant funds. HUD Capital Funds The Housing Authority receives approximately $60,000 per year was recently able to begin to draw down funds through CIAP (the Comprehensive Improvement Assistance Program, also referred to as the Capital Grant program). The budget forecasts an additional CIAP allocation of $66,500 for FY 2005/06. These funds, combined with carry-over funds from prior year grants, will be allocated toward the current irrigation system replacement project and toward non- recurring replacement and maintenance items (appliances, plumbing, HVAC, and interior replacements, and a related portion of maintenance salaries). Operating Subsidy The difference between total operating expenses and total income leaves an overall deficit to the project of $36,787. Kottinger Place has routinely experienced this magnitude of deficit in its annual operating budget. In years past, any actual deficit was covered through the Kottinger Place investment account or by the City. Since introduction of Capital Grant Funds by HUD several years ago, these additional funds for capital improvements have helped to offset the budget deficit and eliminate or reduce reliance on project reserves or City assistance. Staff has recently been working with HUD on applying for additional operating subsidies. Item 8B on the current meeting agenda involves a request for approval to apply for a total of up to $97,600 in annual operating subsidy from HUD. While it is not yet certain that this entire amount will be approved for the 2005/06 fiscal year, HUD has indicated that the Housing Authority will likely receive a significant amount of operating subsidy which should address the $36,787 deficit. CONCLUSION As discussed earlier, the proposed Operating Budget represents the realistic costs expected to be incurred throughout the coming year. The addition of the annual allocation of CIAP funds ($66,500 for 2005/06) and operating subsidy from HUD (up to $97,600) will make it possible to achieve a balanced budget for FY 2005/06, precluding the need to transfer funds from the Kottinger Place investment account to cover a deficit (as has done in previous years). Staff is recommending that the operating budget be approved as proposed subject to the approval and SR:05:150