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HRA Report 2013-01-qm City of Hopkins March 14, 2013 Public Housing Operating Budget Proposed Action HRA Report 2013-01 Staff recommends the following motion: adopt Resolution 492, approving the Operating Budget for the period ending 3/31/14. With approval of this motion, staff will submit the Operating Budget documents to HUD for their review, adjustment and approval. Overview Each year the HRA is required by the Department of Housing and Urban Development (HUD) to develop and approve a budget for the operation of the 76 units of Hopkins HRA -owned Public Housing at Dow Towers. HUD currently distributes Operating Subsidy based on the calendar year rather than the HRA fiscal year. In addition to preparing the fiscal year budget, HUD annually requests the submission of the Operating Subsidy Calculation. When Congress determines the amount of funding for public housing programs, we will be notified of the actual amount. For 2013, we will receive some Operating Subsidy funding from HUD to assist in the general operations at Dow Towers. In 2012, we did not receive any subsidy for Operations. The Operating Budget is for our use as a guide during our budget year; however, HUD requires the Budget to be reviewed and approved by resolution. Supporting Information • Calculation of Operating Budget Forms HUD -52564 • HUD Form 52574/HRA Resolution 492 Alternatives Th--1HRA has-tha#oflowing alternatives_ regard ing-this issuer__ 1. Approve the action as recommended by staff. 2. Continue for further information. 5�Alt,,� Stacy Unowsky, Executive Director PHA Board Resolution U.S. Department of Housing OMB No. 2577-0026 Approving Operating Budget and Urban Development (exp. 12/31/2012) Office of Public and Indian Housing - Real Estate Assessment Center (PIH-REAC) Public reporting burden for this collection of information is estimated to average 10 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and revie This information is required by Section 6(c)(4) of the U.S. Housing Act of 1937. The information is the operating budget for the low-income public housing program and provides a summary of the proposed/budgeted receipts and expenditures, approval of budg PHA Name: HOPKINS HOUSING AUTHORITY PHA Code: MN078 PHA Fiscal Year Beginning: 4/1/2013 Board Resolution Number: 492 Acting on behalf of the Board of Commissioners of the above-named PHA as its Chairperson, I make the following certification and agreement to the Department of Housing and Urban Development (HUD) regarding the Board's approval of (check one or more as applicable): DATE Operating Budget approved by Board resolution on: Operating Budget submitted to HUD, if applicable, on: Operating Budget revision approved by Board resolution on: Operating Budget revision submitted to HUD, if applicable, on: I certify on behalf of the above-named PHA that: 1. All statutory and regulatory requirements have been met; March 19, 2013 2. The PHA has sufficient operating reserves to meet the working capital needs of its developments; 3. Proposed budget expenditure are necessary in the efficient and economical operating of the housing for the purpose of serving low-income residents; 4. The budget indicates a source of funds adequate to cover all_ proposed expenditures; 5. The PHA will comply with the wage rate requirement under 24 CFR 968.110(c) and (f); and 6. The PHA will comply with the requirements for access to records and audits under 24 CFR 968.110(i). I hereby certify that all the information stated within, as well as any information provided in the accompaniment herewith, if applicable, is true and accurate. Warning: HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (18 U.S.C. 1001, 1010, 1012.31, U.S.C. 3729 and 3802) Print Board Chairperson's Name: Signature: Date: Eugene J. Maxwell Previous editions are obsolete form HUD -52574 (08/2005) Operating Budget U.S. Department of Housing and Urban Development Office of Public and Indian Housing See page four for instructions and Public reporting burden statement "OMB Approval No. 2577-0026 (exp. 9/30/2006) a. Type of Submission b. Fiscal Year Ending c. No, of months (check one) 0.00 d. Type of HUD assisted project(s) ❑X Original ❑ Revision No.: 03/31/141212 mo. Other (specify) 030 7714 Nonroutine Maintenance Reserve 01X 02 PHA/IHA-Owned Rental Housing IHA Owned Mutual Help Homeownership e. Name of Public Housing Agency/Indian Housing Authority (PHA/IHA) HOPKINS HOUSING AUTHORITY 254.75 252.75 253.29 231,000 03F-] 04 PHAIIHA Leased Rental Housing ❑ PHA/IHA Owned Turnkey III Homeownership f. Address (city, State, zip code) 4.17 1010 1 ST STREET 090 3190 Nondwelling Rental 0.00 05 ❑ PHA/IHA Leased Homeownership HOPKINS, MN 55343 258.78 257.46 234,800 110 3610 Interest on General Fund Investments g. ACC Number h. PAS/LOCCS Project No. 0.00 0 120 i. HUD Field Office C-942 M N07800113M 21.27 3.29 3,000 MINNEAPOLIS 1 No. of DwellingUnits k. No. of Unit Months m. No. of Projects 237,800 Operating Expenditures -Administration: 140 4110 JAdministrative Salaries 92.07 87.73 Available 83,000 145 411045 Administrative Benefits 15.24 13.71 76 912 ONE 2.22 3.84 4.39 4,000 160 4140 Staff Training 1.82 2.19 Actual ❑X Estimates 170 4150 Travel 0.49 0.88 0.66 600 Last Fiscal 11or Actual Requested Budget Estimates 4.39 4,000 190 4171 Auditing Fees 0.00 Yr. Current Budget yr. PHA/IHAEstimates HUD Modifications Line Acct. 12.06 12.61 03/31/12 03/31/13 AmountAmount No. No. Description 200 4194 Other Admin Expense PUM PUM PUM (to nearest $10) PUM (to nearest $10) 1,400 210 Total Administrative Expense (sum of line 140 thru line 200) (1) 126.45 (2) (3) (4) (5) (6) (7) Homebuyers Monthly Payments for: 010 7710 10perating Expense 0.00 020 7712 Earned Home Payments 0.00 030 7714 Nonroutine Maintenance Reserve 0.00 Operating Receipts 070 3110 1 Dwelling Rental 254.75 252.75 253.29 231,000 080 3120 Excess Utilities 4.12 6.03 4.17 3,800 090 3190 Nondwelling Rental 0.00 0 100 Total Rental Income (sum of lines 070, 080, and 090) 258.87 258.78 257.46 234,800 110 3610 Interest on General Fund Investments 0.00 0.00 0.00 0 120 3690 Other Income 19.85 21.27 3.29 3,000 130 Total Rental Income (sum of lines 100, 110, and 120) 278.72 280.05 260.75 237,800 Operating Expenditures -Administration: 140 4110 JAdministrative Salaries 92.07 87.73 91.01 83,000 145 411045 Administrative Benefits 15.24 13.71 13.71 12,500 150 4130 Legal Expense 2.22 3.84 4.39 4,000 160 4140 Staff Training 1.82 2.19 2.41 2,200 170 4150 Travel 0.49 0.88 0.66 600 1B0 4170 Accounting Fees 4.29 4.39 4.39 4,000 190 4171 Auditing Fees 0.00 0.00 0.00 0 200 4190 Office Expense 15.63 12.06 12.61 11,500 200 4192 Advertising & Marketing 0.10 0.11 0.11 100 200 4194 Other Admin Expense 1.36 1.54 1.54 1,400 210 Total Administrative Expense (sum of line 140 thru line 200) 133.22 126.45 130.81 119,300 Tenant Services: 220 4210 Salaries 0.00 0 225 421045 Tenant Services Benefits 0.00 230 4220 Recreation, Publications and Other Services 0.00 240 4230 Contract Costs, Training and Other 0.00 250 Total Tenant Services Expense (sum of lines 220, 230, and 240) 0.00 0.00 0.00 0 Utilities: 260 4310 1 Water 4.06 4.39 4.39 4,000 270 4320 Electricity 36.09 39.14 39.14 35,700 280 4330 Gas 16.79 19.19 19.19 17,500 290 4340 Fuel 0.00 0.00 0 300 4390 Other Utilities Expense 8.51 8.99 8.99 8,200 310 4391 Garbage Removal 8.27 8.22 9.32 8,500 320 JTotal Utilities Expense (sum of line 260 thru line 310) 73.72 79.93 81.03 73,900 0.00 Previous editions are obsolete Page 1 of 3 form HUD -52564(3/95) ref. Handbook 7475.1 Name of PHA/IHA HOPKINS HOUSING AUTHORITY 406.87 404.56 403.42 Fiscal Year Ending 03/31/14 Prior Year Adjustments: Line No. Acct. No. Description (1) Actual Last Fiscal Yr. 03/31/12 PUM (2) X❑Es6mates 7 or Actual current Budget Yr. 03/31/13 PUM (3) PUM (4). HUD Modifications Amount Amount (to nearest $10 PUM (to nearest $10) (5) (6) (7) Ordinary Maintenance and Operation: 330 4410 Labor 97.89 93.96 87.72 80,000 335 441D45 Maintenance Benefits 13.73 10.96 12.06 11,000 340 4420 Materials 22.46 23.03 23.03 21,000 350 4430 Misc contract Costs 14.82 11.95 13.16 12,000 350 4432 Heating & Cooling Contracts 0.02 0.27 0.55 500 350 4433 Snow Removal Contracts 0.00 0.00 0.00 0 350 4434 Elevator Maintenance Contracts 0.33 2.74 4.74 4,320 350 4435 Landscape & Grounds Contracts 0.94 1.64 2.19 2,000 350 4436 Unit Turnaround Contracts 9.66 9.32 7.68 7,000 350 4437 Electrical Contracts 0.44 0.55 1.21 1,100 350 4438 Plumbing Contracts 2.24 2.74 2.19 2,000 350 4439 Extermination Contracts 0.76 0.77 0.82 750 350 4440 IJanitorial Contracts 0.00 0.00 0.22 200 350 4441 1 Routine Maintenance Contracts 0.36 0.55 0.33 300 360 Total Ordinary Maintenance & Operation Expense (lines 330 to 350) 163.65 158.48 155.89 142,170 General Expense: 410 4510 1 Insurance - Property 15.50 16.45 14.80 13,500 410 4511 Insurance - Liability 7.00 7.68 6.58 6,000 410 4512 Insurance - Work Comp 4.07 5.48 4.93 4,500 410 4513 Insurance - Other 0.45 0.60 0.00 0 420 4520 Payments in Lieu of Taxes 9.26 8.94 8.82 8,045 430 4530 Terminal Leave Payments 0.00 0.00 450 4570 Collection Losses 0.55 0.55 500 460 4590 Other General Expense 0.00 470 Total General Expense (sum of lines 410 to 460) 36.28 39.70 35.69 32,545 480 Total Routine Expense (sum of lines 210. 250. 320. 360. 400. and 4701 406.87 1 404.56 403.42 367.915-00 550 JTotal I Operating Expenditures (sum of lines 500 and 540) 406.87 404.56 403.42 367,915.00 Prior Year Adjustments: 610 8011 Prior Year Adjustments - (Debit) Credit 560 1 6010 1 Prior Year Adjustments Affecting Residual Receipts 0.00 Other Expenditures: Total Basic AnnualContribution(line 600 plus or minus line 610) ___ _ _ - 0.00 -. _ _ 0.00 570 Deficiency in Residual Receipts at End of Preceding Fiscal Yr. ---=-- - --D --- ------------ _ - -- -- 0.00 8020 Contributions Earned -Op. Subsidy: -Cur. Yr.(before year-end adj) 580 Total Operating Expenditures, including prior year adjustments and 128,674 2013 estimated 640 Mandatory PFS Adjustments (net): other expenditures (line 550 plus or minus line 560 plus line 570) 406.87 404.56 403.42 367,915 590 Other (specify): Residual Receipts (or Deficit) before HUD Contributions and 0.00 660 Other (specify): provision for operating reserve (line 130 minus line 580) (128.15) (124.51 142.67 (130,115 HUD Contributions: Total Year -End Adjustments/Other (plus or minus lines 640 thru 660) 0.00 0.00 600 8010 1 Basic Annual Contribution Earned -Leased Projects: Current Year U.UU 610 8011 Prior Year Adjustments - (Debit) Credit 0.00 624 Total Basic AnnualContribution(line 600 plus or minus line 610) ___ _ _ - 0.00 -. _ _ 0.00 _ O.GG -- - ---=-- - --D --- ------------ _ - -- -- 630 8020 Contributions Earned -Op. Subsidy: -Cur. Yr.(before year-end adj) 99.65 0.00 141.09 128,674 2013 estimated 640 Mandatory PFS Adjustments (net): 0.00 650 Other (specify): 0.00 660 Other (specify): 0.00 670 Total Year -End Adjustments/Other (plus or minus lines 640 thru 660) 0.00 0.00 0.00 0 680 8020 Total Operating Subsidy -current year (line 630 plus or minus line 670) 99.65 0.00 141.09 128,674 690 Total HUD Contributions (sum of lines 620 and 680) 99.65 0.00 141.09 128,674 700 Residual Receipts (or Deficit) (sum of line 590 plus line 690) Enter here and on line 810 (28.50) (124.51) (1.58) (1.441) form HUD -52564(3/95) Previous editions are obsolete Page 2 of 3 ref. Handbook 7475.1 Name of PHA/IHA HOPKINS HOUSING AUTHORITY Fiscal Year Ending 03/31/14 Part 11 -Provision for and Estimated or Actual Operating Reserve at Fiscal Year End Operating Reserve PHAIIHA Estimates HUD Modifications Operating Reserve at End of Previous Fiscal Year - Actual for FYE (date): Part I - Maximum Operating Reserve - End of Current Budget Year 790 740 2821 PHA/IHA-Leased Housing -Section 23 or 10(c) 50% of Line 480, column 5, form HUD -52564 comments PHA/IHAApproval Name Stacy Unowsky Title Executive Director Signature Date Field Office Approval Name Title Signature Date form HUD -52564(3/95) Previous editions are obsolete Page 3 of 3 ref. Handbook 7475.1 Part 11 -Provision for and Estimated or Actual Operating Reserve at Fiscal Year End 780 Operating Reserve at End of Previous Fiscal Year - Actual for FYE (date): 790 Provision for Operating 'Reserve - Current Budget Year (check one) FX Estimated for FYE ❑ Actual for FYE 800 Operating Reserve at End of Current Budget Year (check one) ❑X Estimated for FYE ❑ Actual for FYE N/A 810 Provision for Operating Reserve - Requested Budget Year Estimated for FYE Enter Amount from line 700 0 820 Operating Reserve at End of Requested Budget Year Estimated for FYE (Sum of lines 800 and 810) 0 830 Cash Reserve Requirement- 25 % Of line 480 0 comments PHA/IHAApproval Name Stacy Unowsky Title Executive Director Signature Date Field Office Approval Name Title Signature Date form HUD -52564(3/95) Previous editions are obsolete Page 3 of 3 ref. Handbook 7475.1