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2019 12 11 HCCity of La Quinta HOUSING COMMISSION MEETING: December 11, 2019 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2018/19 HOUSING AUTHORITY YEAR-END BUDGET REPORT RECOMMENDATION Receive and file 2018/19 Housing Authority Year-End Budget Report EXECUTIVE SUMMARY • After closing the prior fiscal year, Finance presents a year-end summary that compares the final budget to actual transactions. • Overall revenue was $696,457 higher than budgeted. • Overall expenditures were $550,154 under budget and $531,500 would be carried over to 2019/20. • The Report will be presented to the Housing Authority on December 17, 2019. BACKGROUND/ANALYSIS Total revenues were over budget by $696,457; mostly due interest earnings and the sale of a vacant parcel. Total expenditures were under budget by $550,154 with the majority to be carried over to 2019/20 for the Washington Street Apartments rehabilitation project, homelessness funding, and the evaluation of future affordable housing projects. Revenues, expenditures, carryovers, and fund balances are discussed in the FY 2018/19 Housing Authority Year-End Budget Report (Attachment 1). ALTERNTIVES No alternatives are applicable. Prepared by: Karla Romero, Finance Director Attachment 1: FY 2018/19 Housing Authority Year-End Budget Report BUSINESS SESSION ITEM NO. 1 HOUSING AUTHORITY FISCAL YEAR-END 2018/19 BUDGET REPORT The La Quinta Housing Authority oversee four funds, which are restricted for affordable housing programs. This report focuses on significant activities and variances from the final budget during the fiscal year ending June 30, 2019. REVENUES Total revenues were over budget by $696,457 with the largest variances deriving from interest earnings ($630,878) and the sale of a vacant Housing Authority parcel ($58,814). Revenues are summarized by fund below and detailed in Exhibit A. EXPENSES Housing Authority expenses by fund are summarized below and detailed in Exhibit B. Housing Authority Revenues Final Budget Actual Variance Housing Authority Fund 543,000 873,445 330,445 RDA Low-Mod Housing Fund 18,000 55,555 37,555 2004 Bond Fund 10,000 17,587 7,587 2011 Bond Fund 170,000 490,870 320,870 Total Revenues 741,000 1,437,457 696,457 Housing Authority Expenditures Final Budget Actual Variance Housing Authority Fund Administration 347,500 302,753 (44,747) La Quinta Cove Properties 255,000 307,302 52,302 RDA Low-Mod Housing Fund 267,667 166,666 (101,001) 2004 Bond Fund 1,451,947 1,035,215 (416,732) 2011 Bond Fund 7,416,000 7,376,024 (39,976) Total Expenditures 9,738,114 9,187,960 (550,154) Capital Project Carryovers 390,500 Operational/Contractual Carryovers 141,000 Total Expenditures After Carryovers 9,738,114 9,719,460 (18,654) HOUSING AUTHORITY FUND (241) This fund recognizes administrative expenses and housing activities for several Authority owned properties in the La Quinta Cove. The greatest year- over-year variance occurred as a result of the transfer of Washington Street Apartments (WSA) to the Coachella Valley Housing Coalition (CVHC) who now owns and operates the complex as of March 2018. Combined administration savings of $44,747 for salaries and benefits, professional program oversight, and legal services was offset by an overage of $52,302 for rental maintenance expenses associated with properties in the Cove. Additional expenses included air conditioning units, removal of grass and the installation of water efficient desert landscaping, and the install of perimeter walls for added safety. As of June 30, 2019, the available balance in this fund was $10,675,204. LOW-MOD HOUSING FUND (243) Revenue in this fund is solely derived from Redevelopment Agency loan repayments and interest earnings. Annually loan repayments are allocated 80% to the General Fund and 20% to the Low -Mod Housing Fund. The total outstanding loan balance as of June 30, 2019 is $34,894,713; with $6,483,943 or 20% recognized in this fund as a future receivable. In 2018/19, a total of $166,666 was expensed for homelessness programs in the greater Coachella Valley. Savings of $101,001 are being carried over to 2019/20. As of June 30, 2019, the available balance in this fund was $1,980,411. 2004 BOND FUND (248) & 2011 BOND FUND (249) WSA’s rehabilitation and relocation plan expenses were incorporated in the 2004 and 2011 Bond Fund budgets, these bonds were refinanced in 2014 and 2016 respectively. These project expenses met the original intended purpose of the bond proceeds and a portion of the unexpended amount is being carried over to 2019/20. Carryovers will fully deplete resources in the 2004 Bond Fund, as originally anticipated. The 2011 Bond Fund had an ending balance of $16,726,135 as of June 30, 2019. AMENDED CARRYOVERS Original carryovers from the 2018/19 to 2019/20 budget were estimated based on projected invoices in the Spring of 2019. Upon completion of the final audit in October, Finance verifies account balances and carryovers. Amended carryovers are presented on the following page and if approved will be added to the 2019/20 budget. FUND BALANCES Below is a summary of Housing Authority fund balances as of June 30, 2019. These funds are restricted for housing programs. Vendor/Program Account Number Original Amended Difference HOUSING AUTHORITY FUNDS Hoemlessness Assistance 243-0000-60532 - 101,000 101,000 Washington Street Apts. Rehabilitation 248-9102-60103 145,000 145,000 - Washington Street Apts Rehabilitation 248-9102-60159 250,000 245,500 (4,500) Affordable Housing Programs 249-0000-80050 40,000 40,000 - 435,000 531,500 96,500 Amended Continuing Appropriations/Carryovers from 2018/19 to 2019/20 HOUSING AUTHORITY CARRYOVERS Housing Authority Fund (241)10,675,204 Low-Mod Housing Fund (243)1,980,411 2011 Bond Fund (249)16,726,135 TOTAL HOUSING FUNDS 29,381,750 Housing Fund Available for appropriation as of 6/30/19 2017/18Actuals2018/19Original Budget2018/19Final Budget2018/19ActualsVariance w/ Final Budget241 - HOUSING AUTHORITY(426)0000241-0000-41900Allocated Interest78,18235,00075,000339,095264,095241-9101-41900Allocated Interest79500771771241-9101-41915Non-Allocated Interest1,0010011241-9101-42301Miscellaneous Revenue305,2770000241-9101-42706Loan Repayments00058,81458,814241-9101-43500Home Sale Proceeds122,7710188,000187,892(108)241-9101-435042nd Trust Deed Repayments93,8000000241-9101-45000Sale of Other Assets5,2810000241-9102-41916Non-Allocated Interest/WSA137,3080000241-9102-42112Rent Revenue/Tenant/WSA(1,501)0000241-9102-42113Rent Variance - WSA3,3080000241-9102-42302Miscellaneous Revenue/WSA304,4740000241-9102-43520Federal Government Assist. Prgm/293,991280,000280,000286,8726,872241-9103-43502Rent Revenue/LQRPTotal:1,344,262315,000 543,000 873,444330,444243 - RDA LOW-MOD HOUSING FUND17,8768,00018,00055,55537,555243-0000-41900Allocated InterestTotal:17,8768,00018,00055,55537,555248 - SA 2004 LO/MOD BOND FUND (Refinanced in 201(8,367)010,00017,5877,587248-0000-41900Allocated InterestTotal:(8,367)010,00017,5877,587249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2052,38530,00003,2893,289249-0000-41900Allocated Interest181,6490170,000487,581317,581249-0000-41915Non-Allocated InterestTotal:234,03430,000 170,000 490,870320,870HOUSING AUTHORITY REVENUE1,587,806353,000 741,000 1,437,457696,457(426)000078,18235,00075,000339,095264,095795007717711,0010011305,277000000058,81458,814122,7710188,000187,892(108)93,80000005,2810000137,3080000(1,501)00003,3080000304,4740000293,991280,000280,000286,8726,8721,344,262315,000 543,000 873,444330,44417,8768,00018,00055,55537,55517,8768,00018,00055,55537,555(8,367)010,00017,5877,587(8,367)010,00017,5877,58752,38530,00003,2893,289181,6490170,000487,581317,581234,03430,000 170,000 490,870320,8701,587,806353,000 741,000 1,437,457696,457CITY OF LA QUINTA HOUSING AUTHORITY REVENUE DETAILSEXHIBIT A 2018/19 YEAR-END BUDGET REPORTUnaudited, final numbers will be reported in the 2018/19 financial statements issued by December 30, 2019. 2017/18Actuals2018/19Original Budget2018/19Final Budget2018/19ActualsVariance w/ Final Budget241 - HOUSING AUTHORITY9101 - Housing Authority - AdminSalaries and Benefits18,755145,300142,600 130,085(12,515)241-9101-50101Permanent Full Time1,5503,0003,000750(2,250)241-9101-50110Commissions & Boards4300300196(104)241-9101-50150Other Compensation6,0329,2009,900 10,878978241-9101-50200PERS-City Portion01001000(100)241-9101-50210PERS-Survivor Benefits5002,2622,262241-9101-50215Other Fringe Benefits1,86831,10031,500 22,129(9,371)241-9101-50221Medical Insurance3200337337241-9101-50222Vision Insurance65001,4821,482241-9101-50223Dental Insurance18005858241-9101-50224Life Insurance1503,2003,200587(2,613)241-9101-50225Long Term Disability3,0002,6002,6002,6000241-9101-50230Workers Comp Insurance2662,1002,2001,936(264)241-9101-50240Social Security-Medicare102009292241-9101-50241Social Security-FICA50 - Salaries and Benefits Totals:31,845196,900 195,400 173,391(22,009)Contract Services63,76865,00070,000 59,667(10,333)241-9101-60103Professional Services6,0505,0005,0005,0000241-9101-60106Auditors7,1665,000000241-9101-60125Temporary Agency Services32,61825,00025,000 13,453(11,547)241-9101-60153Attorney60 - Contract Services Totals:109,603100,000 100,000 78,120(21,880)Maintenance & Operations1,0182,0002,0001,611(389)241-9101-60320Travel & Training000153153241-9101-60400Office Supplies2,2172,0002,0001,377(623)241-9101-60420Operating Supplies62 - Maintenance & Operations Totals:3,2354,0004,000 3,141(859)Insurance010,00010,000 10,0000241-9101-91843Property & Crime Insurance63 - Insurance Totals:010,00010,000 10,0000Internal Service Charges20,00020,00020,000 20,0000241-9101-91844Earthquake Insurance8,40018,10018,100 18,1000241-9101-98110Information Tech Charges69 - Internal Service Charges Totals:28,40038,10038,100 38,10009101 - Housing Authority - Admin Totals:173,083349,000 347,500 302,753(44,747)9102 - Housing Authority - Wash St AptsContract Services1,193,4280000241-9102-60160Financial Expenses60 - Contract Services Totals:1,193,428000018,755145,300142,600 130,085(12,515)1,5503,0003,000750(2,250)4300300196(104)6,0329,2009,900 10,87897801001000(100)5002,2622,2621,86831,10031,500 22,129(9,371)320033733765001,4821,482180058581503,2003,200587(2,613)3,0002,6002,6002,60002662,1002,2001,936(264)10200929231,845196,900 195,400 173,391(22,009)63,76865,00070,000 59,667(10,333)6,0505,0005,0005,00007,1665,00000032,61825,00025,000 13,453(11,547)109,603100,000 100,000 78,120(21,880)1,0182,0002,0001,611(389)0001531532,2172,0002,0001,377(623)3,2354,0004,000 3,141(859)010,00010,000 10,0000010,00010,000 10,000020,00020,00020,000 20,00008,40018,10018,100 18,100028,40038,10038,100 38,1000173,083349,000 347,500 302,753(44,747)1,193,42800001,193,4280000CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE DETAILSEXHIBIT B 2018/19 FISCAL YEAR-END REPORT Unaudited, final numbers will be reported in the 2018/19 financial statements issued by December 30, 2019. 2017/18Actuals2018/19Original Budget2018/19Final Budget2018/19ActualsVariance w/ Final BudgetMaintenance & Operations206,8280000241-9102-60157Rental Expenses62 - Maintenance & Operations Totals:206,8280000Debt Service79,2560000241-9102-61609Interest Expense - Provident10,1920000241-9102-61610Interest Expense - USDA36,6000000241-9102-61680Principal Payment - Provident15,3880000241-9102-61681Principal Payment - USDA67 - Debt Service Totals:141,43600009102 - Housing Authority - Wash St Apts Totals:1,541,69200009103 - Housing Authority - LQRPMaintenance & Operations153,309255,000255,000 307,30252,302241-9103-60157Rental Expenses62 - Maintenance & Operations Totals:153,309255,000 255,000 307,30252,3029103 - Housing Authority - LQRP Totals:153,309255,000 255,000 307,30252,302241 - HOUSING AUTHORITY Totals:1,868,084604,000 602,500 610,0557,555206,8280000206,828000079,256000010,192000036,600000015,3880000141,43600001,541,6920000153,309255,000255,000 307,30252,302153,309255,000 255,000 307,30252,302153,309255,000 255,000 307,30252,3021,868,084604,000 602,500 610,0557,555CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE DETAILSEXHIBIT B 2018/19 FISCAL YEAR-END REPORT Unaudited, final numbers will be reported in the 2018/19 financial statements issued by December 30, 2019. 2017/18Actuals2018/19Original Budget2018/19Final Budget2018/19ActualsVariance w/ Final Budget243 - RDA LOW-MOD HOUSING FUND0000 - UndesignatedOther Expenses259,000250,000267,667 166,666(101,001)243-0000-60532Homelessness Assistance64 - Other Expenses Totals:259,000250,000 267,667 166,666(101,001)0000 - Undesignated Totals:259,000250,000 267,667 166,666(101,001)243 - RDA LOW-MOD HOUSING FUND Totals:259,000250,000 267,667 166,666(101,001)259,000250,000267,667 166,666(101,001)259,000250,000 267,667 166,666(101,001)259,000250,000 267,667 166,666(101,001)259,000250,000 267,667 166,666(101,001)CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE DETAILSEXHIBIT B 2018/19 FISCAL YEAR-END REPORT Unaudited, final numbers will be reported in the 2018/19 financial statements issued by December 30, 2019. 2017/18Actuals2018/19Original Budget2018/19Final Budget2018/19ActualsVariance w/ Final Budget248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2019102 - Housing Authority - Wash St AptsContract Services00145,0000(145,000)248-9102-60103Professional Services228,8700 1,200,000 954,480(245,520)248-9102-60159Relocation Benefits106,2900106,947 80,735(26,212)248-9102-60185Design/Construction12,8230000248-9102-60198Planning & Development60 - Contract Services Totals:347,9820 1,451,947 1,035,215(416,732)9102 - Housing Authority - Wash St Apts Totals:347,9820 1,451,947 1,035,215(416,732)2004 LO/MOD BOND FUND (Refinanced in 2014) Totals:347,9820 1,451,947 1,035,215(416,732)00145,0000(145,000)228,8700 1,200,000 954,480(245,520)106,2900106,947 80,735(26,212)12,8230000347,9820 1,451,947 1,035,215(416,732)347,9820 1,451,947 1,035,215(416,732)347,9820 1,451,947 1,035,215(416,732)CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE DETAILSEXHIBIT B 2018/19 FISCAL YEAR-END REPORT Unaudited, final numbers will be reported in the 2018/19 financial statements issued by December 30, 2019. 2017/18Actuals2018/19Original Budget2018/19Final Budget2018/19ActualsVariance w/ Final Budget249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 200000 - UndesignatedContract Services2,023,9750 7,376,000 7,376,02424249-0000-60188Construction60 - Contract Services Totals:2,023,9750 7,376,000 7,376,02424Capital Expenses0040,0000(40,000)249-0000-80050Affordable Housing Project Develo68 - Capital Expenses Totals:0040,0000(40,000)0000 - Undesignated Totals:2,023,9750 7,416,000 7,376,024(39,976)11 LOW/MOD BOND FUND (Refinanced in 2016) Totals:2,023,9750 7,416,000 7,376,024(39,976)2,023,9750 7,376,000 7,376,024242,023,9750 7,376,000 7,376,024240040,0000(40,000)0040,0000(40,000)2,023,9750 7,416,000 7,376,024(39,976)2,023,9750 7,416,000 7,376,024(39,976)CITY OF LA QUINTA HOUSING AUTHORITY EXPENSE DETAILSEXHIBIT B 2018/19 FISCAL YEAR-END REPORT Unaudited, final numbers will be reported in the 2018/19 financial statements issued by December 30, 2019. City of La Quinta HOUSING COMMISSION MEETING: December 11, 2019 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE FISCAL YEAR 2019/20 FIRST QUARTER HOUSING AUTHORITY BUDGET REPORT RECOMMENDATION Receive and file fiscal year 2019/20 First Quarter Housing Authority Budget Report. EXECUTIVE SUMMARY • The 2018/19 First Quarter Housing Authority Budget Report (Attachment 1) provides an update of the Authority’s fiscal activities from July to September 2019. • A budget report is prepared quarterly to assess the adopted budget and incorporate adjustments based on current economic conditions and operational requirements. • The Report will be presented for approval to the Housing Authority on December 17, 2019. BACKGROUND/ANALYSIS Throughout the fiscal year staff monitors its budget and proposes adjustments to reflect current conditions and ongoing operational needs. Requests are reviewed and discussed before recommending approval in the budget report (Attachment 1). Funds with no adjustments from the originally presented 2019/20 Budget have been excluded from the report. The Report will be presented for approval to the Housing Authority Board on December 17, 2019. ALTERNATIVES No alternatives are applicable. Prepared by: Karla Romero, Finance Director Attachment 1: 2019/20 First Quarter Housing Authority Budget Report BUSINESS SESSION ITEM NO. 2 HOUSING AUTHORITY FISCAL YEAR 2019/20 FIRST QUARTER BUDGET REPORT The following is a summary of budgetary adjustments requested for the first quarter of fiscal year 2019/20. Account details are provided in Exhibit A and discussed in this report. REVENUES Total revenue increases of $276,800 are proposed and derive from two sources, interest and sales. Interest earnings in all Housing Funds require an increase. These increases reflect updated interest earning projections based on current cash balances for each fund and current investment portfolio interest rate returns. In addition, a vacant Housing Authority parcel was sold during the first quarter for $58,800. EXPENSES During the first quarter, there are no proposed expenditure adjustments for any Authority fund. Below are pictures from the 2019 Thanksgiving resident luncheon at Washington Street Apartments. Fund Revenues Expenses Housing Authority Fund (241)178,800$ -$ Low-Mod Housing Fund (243)18,000 - 2011 Bond Fund (249)80,000 - TOTAL FUND ADJUSTMENTS 276,800$ -$ PROPOSED HOUSING AUTHORITY ADJUSTMENTS City of La Quinta Housing Authority FY 2019/20 Recommended First Quarter Budget Adjustments Exhibit A Account No. Description Revenues Expenses 241-9101-41900 Allocated Interest 120,000 241-9101-43500 Land Sale Proceeds 58,800 Account No. Description Revenues Expenses 243-0000-41900 Allocated Interest 18,000 Account No. Description Revenues Expenses 249-0000-41915 Non-Allocated Interest 80,000 TOTAL ALL HOUSING FUNDS 276,800 - Housing Authority (241) RDA Low-Mod Housing (243) 2011 Bond (249)