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HA Resolution 2017-003RESOLUTION NO. HA 2017- 003 A RESOLUTION OF THE LA QUINTA HOUSING AUTHORITY APPROVING A BUDGET FOR FISCAL YEAR 2017/2018 WHEREAS, each year the La Quinta Housing Authority adopts a Budget for Revenues and Expenditures for the upcoming Fiscal Year; and WHEREAS, the Housing Authority desires to make provisions for a level of services commensurate with the needs of the City; and WHEREAS, the Housing Authority has reviewed said budget and has had several public meetings to receive public input; and WHEREAS, the Housing Authority has, after due deliberation and consideration, made such amendments in the proposed budget as it considers desirable; and NOW, THEREFORE, BE IT RESOLVED by the La Quinta Housing Authority to adopt, as follows: SECTION 1. The Fiscal Year 2017/2018 Budget "Exhibit A", which is on file with the La Quinta Housing Authority Secretary, is hereby approved. SECTION 2. Budget adjustment procedures are approved as follows: A. Additional appropriations and the transfer of cash or unappropriated fund balance from one fund to another shall be made only upon Housing Authority approval. B. Transfers of budgeted appropriations between divisions or capital projects shall be made only upon Housing Authority approval. C. Transfers of budgeted appropriations between accounts within a division or capital project may be made with the approval of the Executive Director or his designee. D. Prior year budget continuing Appropriations and Encumbrances for unexpended capital project appropriations remaining from uncompleted prior year capital projects shall be made with Executive Director approval. These carry-over appropriations are for prior year Housing Authority approved capital projects and shall not exceed the approved project budget. Resolution No. HA 2017-003 La Quinta Housing Authority Annual Budget - Fiscal Year 2017/18 Adopted: June 20, 2017 Page 2 of 2 SECTION 3. The Executive Director shall render a monthly report on the status of City operations as it relates to the approved budget and any amendments thereto. PASSED, APPROVED, and ADOPTED at a regular meeting of the La Quinta Housing Authority held on this 20th day of June, 2016, by the following vote: AYES: Authority Members Evans, Pena, Radi, Sanchez, Chair Fitzpatrick NOES: None ABSENT: None ABSTAIN: None KATHLEEN FITZPATRICK,Ch rperson La Quinta Housing Authority, California ATTEST: a4,„ aip SUSAN MAYSELS, Author! t'/ Secretary La Quinta Housing Authority, California (AUTHORITY SEAL) APPROVED AS TO FORM: (;() WILLIAM H. IHRKE, Authority Attorney La Quinta Housing Authority, California 2017/18 ADOPTED BUDGET 4 41 c'Tlp+ it — — GEM of iN DESERT — HOUSING AUTHORITY CITY OF LA QUINTA HOUSING AUTHORITY REVENUE 2017/18 ADOPTED BUDGET 2015/16 2016/17 2016/17 2017/18 2017/18 Actual Revenue Original Budget Current Budget Proposed Budget Adopted Budget 241- HOUSING AUTHORITY 241-0000-41900 241-0000-41915 241-0000-42112 241-0000-42302 241-0000-43502 Allocated Interest Non -Allocated Interest Rent Revenue/Tenant/W Miscellaneous Revenue/' Rent Revenue/LQRP 241-0000-43504 2nd Trust Deed RepaymE 241- HOUSING AUTHORITY Totals: 242 - HOUSING AUTHORITY PA2 242-0000-41900 Allocated Interest 242-0000-41916 Non -Allocated Interest/V 242-0000-42112 Rent Revenue/Tenant/NJ 242-0000-42113 RentVariances/WSA 242-0000-42301 Miscellaneous Revenue 242-0000-42302 Miscellaneous Revenue/ 242-0000-42706 Loan Repayments 242-0000-43520 Federal Government Ass 242 - HOUSING AUTHORITY PA2 Totals: 28,785.08 18,491.10 0.00 0.00 287,173.84 33,228.50 12,000.00 400.00 614,800.00 2,400.00 260,000.00 0.00 12,000.00 400.00 614,800.00 2,400.00 260,000.00 0.00 20,000.00 0.00 614,800.00 4,200.00 280,000.00 0.00 20,000.00 0.00 614,800.00 4,200.00 280,000.00 0.00 367,678.52 889,600.00 889,600.00 919,000.00 919,000.00 17,007.93 1,714.28 201,130.00 (3,493.00) 2.00 5,148.23 5,000,000.00 426,134.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,647,643.44 0.00 0.00 0.00 0.00 NON -GENERAL FUND REVENUE 6,015,321.96 889,600.00 889,600.00 919,000.00 919,000.00 CITY OF LA QUINTA HOUSING AUTHORITY FUND EXPENSES 2017/18 ADOPTED BUDGET 241 - HOUSING AUTHORITY 9101- Housing Authority - Admin Salaries and Benefits 241-9101-50101 241-9101-50110 241-9101-50150 241-9101-50200 241-9101-50210 241-9101-50221 241-9101-50222 241-9101-50223 241-9101-50224 241-9101-50225 241-9101-50230 241-9101-50240 Permanent Full Time Commissions & Boards Other Compensation PERS-City Portion PERS-Survivor Benefits Medical Insurance Vision Insurance Dental Insurance Life Insurance Long Term Disability Workers Comp Insurance Social Security -Medicare 50 - Salaries and Benefits Totals: Contract Services 241-9101-60103 Professional Services 241-9101-60106 Auditors 241-9101-60153 Attorney 60 - Contract Services Totals: Maintenance & Operations 241-9101-60320 Travel & Training 241-9101-60420 Operating Supplies 62 - Maintenance & Operations Totals: Internal Service Charges 241-9101-91844 241-9101-98110 Earthquake Insurance Information Tech Charges 69 - Internal Service Charges Totals: 2015/16 2016/17 2016/17 2017/18 2017/18 Actual Expenses Original Budget Current Budget Proposed Budget Adopted Budget 63,549.98 0.00 4 00 3,930.20 0.00 14,252.37 358.22 1,650.33 76.41 542.49 1,899.96 909.48 37,400.00 0.00 300.00 2,900.00 100.00 8,300.00 0.00 0.00 0.00 400.00 1,200.00 600.00 52,100.00 0.00 300.00 2,900.00 100.00 8,800.00 0.00 0.00 0.00 400.00 1,200.00 600.00 63,400.00 3,000.00 600.00 11,900.00 100.00 18,200.00 0.00 0.00 0.00 700.00 3,000.00 1,100.00 63,400.00 3,000.00 600.00 11,900.00 100.00 18,200.00 0.00 0.00 0.00 700.00 3,000.00 1,100.00 87,173.44 51,200.00 66,400.00 102,000.00 102,000.00 59,118.34 3,500.00 4,516.29 70,000.00 6,000.00 10,000.00 70,000.00 6,000.00 10,000.00 0.00 0.00 25,000.00 0.00 0.00 25,000.00 67,134.63 86,000.00 86,000.00 25,000.00 25,000.00 1,215.90 0.00 0.00 1,000.00 1,000.00 0.00 2,000.00 2,000.00 2,000.00 2,000.00 1,215.90 2,000.00 2,000.00 3,000.00 3,000.00 12,999.96 13,000.00 13,000.00 20,000.00 20,000.00 0.00 0.00 0.00 8,400.00 8,400.00 12,999.96 13,000.00 13,000.00 28,400.00 28,400.00 9101- Housing Authority - Admin Totals: 168,523.93 152,200.00 167,400.00 158,400.00 158,400.00 9102 - Housing Authority - Wash St Apts Contract Services 241-9102-60103 Professional Services 241-9102-60106 Auditors 0.00 0.00 0.00 70,000.00 70,000.00 0.00 0.00 0.00 2,500.00 2,500.00 60 - Contract Services Totals: 0.00 0.00 0.00 72,500.00 72,500.00 Maintenance & Operations 241-9102-60157 Rental Expenses 62 - Maintenance & Operations Totals: Debt Service 241-9102-61609 241-9102-61610 241-9102-61680 241-9102-61681 Interest Expense - Provident Interest Expense - USDA Principal Payment - Provident Principal Payment - USDA 67 - Debt Service Totals: Capital Expenses 241-9102-72100 Building Improvements 68 - Capital Expenses Totals: 208,673.44 615,200.00 615,200.00 466,100.00 466,100.00 208,673.44 615,200.00 615,200.00 466,100.00 466,100.00 0.00 0.00 0.00 0.00 109,400.00 17,100.00 45,100.00 21,200.00 109,400.00 17,100.00 45,100.00 21,200.00 109,100.00 17,000.00 45,300.00 21,200.00 109,100.00 17,000.00 45,300.00 21,200.00 0.00 192, 800.00 192, 800.00 192,600.00 192,600.00 0.00 0.00 0.00 50,000.00 50,000.00 0.00 0.00 0.00 50,000.00 50,000.00 9102 - Housing Authority - Wash St Apts Totals: 208,673.44 808,000.00 808,000.00 781,200.00 781,200.00 9103 - Housing Authority - LQRP Contract Services 241-9103-60106 Auditors 0.00 0.00 0.00 2,500.00 2,500.00 241-9103-60155 Uncollected Rent 6,174.96 0.00 0.00 0.00 0.00 241-9103-60156 Prop Damage/Other 6,699.70 0.00 0.00 0.00 0.00 60 - Contract Services Totals: 12,874.66 0.00 0.00 2,500.00 2,500.00 2 CITY OF LA QUINTA HOUSING AUTHORITY FUND EXPENSES 2017/18 ADOPTED BUDGET 2015/16 2016/17 2016/17 2017/18 2017/18 Actual Expenses Original Budget Current Budget Proposed Budget Adopted Budget Maintenance & Operations 241-9103-60157 Rental Expenses 62 - Maintenance & Operations Totals: 0.00 0.00 0.00 250,000.00 250,000.00 0.00 0.00 0.00 250,000.00 250,000.00 9103 - Housing Authority - LQRP Totals: 12,874.66 0.00 0.00 252,500.00 252,500.00 241- HOUSING AUTHORITY Totals: 390,072.03 960,200.00 975,400.00 1,192,100.00 1.192.100.00 Commencing in fiscal year 2017/18 Fund 241 will have three departments: 9101 - Housing Authority Administration 9102 - Washington Street Apartments 9103 - La Quinta Rental Properties 3 Pe n:ta4 Expenses 466,100.00 Fund: 241- HOUSING AUTHORITY 241-9101-50101 Permanent full Time 50% - Management Assistant 50% - Management Specialist City Council Member Stipends (5) Housing Commissioner Stipends 63,400.00 Increase in FY 2017/18 due to the addition of 50% of a Management Assistant position which is shared with the City Clerk department. 241-9101-60320 241-9101-6042.01 Travel & 1,000.00 operating Supplies 2,000.00 Tenant luncheon and mailings 241-9102-60103 PKvfossipusaall 5eruuices 70,000.00 Expenses were relocated from 241-9101-60103 in FY 2017/18. Expenses are used for: Riverside County Recording Fees Tenant Verifications Government Reporting and Document Preparation 241-9102-60157' In FY 2016/17 the budget included expenses for the La Quinta Rental Properties. These expenses have been moved to account number 241-9103-60 241-9102-72100 Building Improvements 50000.00 Mechanical/HVAC Repairs Exterior Lighting Improvements 241-9103-60157 Rental' E43enses 250,000.00 In FY 2016/17 these expenses were previously budgeted in account number 241-9102-60157. CITY OF LA QUINTA HOUSING AUTHORITY FUND EXPENSES 2017/18 ADOPTED BUDGET 2015/16 Actual Expenses 2016/17 2016/17 Original Budget Current Budget 2017/18 2017/18 Proposed Budget Adopted Budget 242 - HOUSING AUTHORITY PA2 9201- Housing Authority PA2 Salaries and Benefits 242-9201-50101 Permanent Full Time 50 - Salaries and Benefits Totals: Maintenance & Operations 242-9201-60157 Rental Expenses/LQPR 62 - Maintenance & Operations Totals: Debt Service 242-9201-61609 242-9201-61610 242-9201-61680 242-9201-61681 Interest Expense -Provident Interest Expense - USDA/WSA Principal Payment- Provident Principal Payment- USDA 67 - Debt Service Totals: 9201- Housing Authority PA2 Totals: 242 - HOUSING AUTHORITY PA2 Totals: 825.00 0.00 0.00 0.00 0.00 825.00 336,534.16 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 336,534.16 0.00 0.00 0.00 0.00 112,726.46 19,135.12 41,747.98 19,235.12 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 192,844.68 0.00 0.00 0.00 0.00 530,203.84 0.00 0.00 0.00 0.00 530,203.84 0.00 0.00 0.00 0.00 Fund 242 was combined with Fund 241 in fiscal year 2016/17. 5 CITY OF LA QUINTA HOUSING AUTHORITY BOND EXPENSES 2017/18 ADOPTED BUDGET 2015/16 2016/17 2016/17 2017/18 2017/18 Actual Expenses Original Budget Current Budget Proposed Budget Adopted Budget 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014) 9102 - Housing Authority - Wash St Apts Contract Services 248-9102-60103 Professional Services 0.00 0.00 0.00 145,000.00 145,000.00 248-9102-60159 Relocation Benefits 0.00 0.00 0.00 229,700.00 229,700.00 248-9102-60185 Design/Construction 359,718.86 0.00 0.00 330,200.00 330,200.00 248-9102-60198 Planning & Development 0.00 0.00 0.00 1,000,000.00 1,000,000.00 60 - Contract Services Totals: 359,718.86 0.00 0.00 1,704,900.00 1,704,900.00 9102 - Housing Authority - Wash St Apts Totals: 359,718.86 0.00 0.00 1,704,900.00 1,704,900.00 SA 2004 LO/MOD BOND FUND (Refinanced in 2014) Totals: 359,718.86 0.00 0.00 1,704,900.00 1,704,900.00 6 Fund: 248 - SA 2004 LO/MOD BOND FUND (Refinanced in 2014) 248-9102-60103 Professional Services 248-9102-60159 Relocation Benefits 145,000.00 229,700.00 Relocation funds are projected to be distributed in January 2019. These funds are being designated as set aside via budget resolution for this future purpose and will be carried over from FY 2017/18 to 2018/19. A formal recognition of this future expenditure is required for final approval of the relocation plan. 248-9102.60198 Planning & Development 1,000,000.00 Funds will be disbursed through draws to the developer. These funds are being designated as set aside via budget resolution for this future purpose and will be carried over from FY 2017/18 to 2018/19. A formal recognition of this future expenditure is required for final approval of the Affordable Housing and Property Disposition Agreement. CITY OF LA QUINTA HOUSING AUTHORITY BOND EXPENSES 2017/18 ADOPTED BUDGET 2015/16 2016/17 2016/17 2017/18 2017/18 Actual Expenses Original Budget Current Budget Proposed Budget Adopted Budget 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) 9102 - Housing Authority - Wash St Apts Contract Services 249-9102-60188 Construction 0.00 0.00 0.00 9,400,000.00 9,400,000.00 60 - Contract Services Totals: 0.00 0.00 0.00 9,400,000.00 9,400,000.00 9102 - Housing Authority - Wash St Apts Totals: 0.00 0.00 0.00 9,400,000.00 9,400,000.00 % 2011 LOW/MOD BOND FUND (Refinanced in 2016) Totals: 0.00 0.00 0.00 9,400,000.00 9,400,000.00 8 Fund: 249 - SA 2011 LOW/MOD BOND FUND (Refinanced in 2016) 249-9102-60188 Construction 9,400,000.00 Construction funds will be disbursed through draws to the developer. These funds are being designated as set aside via budget resolution for this future purpose and will be carried over from FY 2017/18 to 2018/19. A formal recognition of this future expenditure is required for final approval of the Affordable Housing and Property Disposition Agreement. GLOSSARY OF BUDGET TERMS, CONTINUED The following is a list of commonly used financial terms: ALLOCATE - To divide a lump -sum appropriation which is designated for expenditure by specific organization units and/or for specific purposes, activities, or objects. APPROPRIATION - An authorization made by the council which permits the City to incur obligations and to make expenditures of resources. ASSET - Anything having commercial or exchange value that is owned by a business, institution or individual. AUDIT - Conducted by an independent Certified Public Accounting (CPA) Firm, the primary objective of an audit is to determine if the City's Financial Statements present the City's financial position fairly and results of operations are in conformity with Generally Accepted Accounting Principles (GAAP). BALANCED BUDGET - A budget in which planned expenditures do not exceed projected funds available. BALANCE SHEET - A financial statement reporting the organization's assets, liabilities and equity activities. BUDGET - The document created by the staff and approved by the City Council which establishes the broad policy guidance on the projection of revenues and the allocation toward various types of expenditures. BUDGET CALENDAR - This is a schedule of the dates which is followed in the preparation, adoption, and administration of the budget. CONTINGENCY - An appropriation of funds to cover unforeseen events that occur during the fiscal year such as flood emergencies, Federal mandates, shortfalls in revenue, and similar eventualities. CONTINUING APPROPRIATION - Funds committed for a previous fiscal year expenditure which were not spent in the year of appropriation, but are intended to be used in the succeeding year. CONTRACTUAL SERVICES - Services rendered to City activities by private firms, individuals or other governmental agencies. Examples of these services include engineering, law enforcement, and city attorney services. 10 GLOSSARY OF BUDGET TERMS, CONTINUED DEPARTMENT - A major organizational unit of the City which has been assigned overall management responsibility for an operation or a group of related operations within a functional area. DESIGNATED FUND BALANCE - A portion of unreserved fund balance designated by City policy for specific future use. ENCUMBRANCE - The legal commitment of appropriated funds to purchase an item or service. To encumber funds means to set aside or commit funds for a future expenditure. EXPENDITURE - The outflow of funds paid for goods or services obtained. FEES FOR SERVICES - Charges paid to the City by users of a service to help support the costs of providing that service. FISCAL YEAR - The fiscal year is defined as the beginning and ending period for recording financial transactions. The City has specified July 1 to June 30 as its fiscal year. FIXED ASSETS - Fixed Assets are assets of a long-term nature such as land, buildings, machinery, furniture, and other equipment. The City has defined such assets as those with an expected life in excess of one year and an acquisition cost in excess of $5,000. FUND - An accounting entity that records all financial transactions for specific activities or government functions. The fund types used by the City are: General, Special Revenue, Capital Project, Debt Service, Enterprise, and Internal Service Funds. FUND BALANCE - Fund Balance is the excess of current assets over current liabilities, and represents the cumulative effect of revenues and other financing sources over expenditures and other financing uses. GENERAL FUND - The General Fund is the primary operating fund of the City. All revenues that are not allocated by law or contractual agreement to a specific fund are accounted for in the General Fund. With the exception of subvention or grant revenues restricted for specific uses, General Fund resources can be utilized for any legitimate governmental purpose. GOAL - A goal is a statement of broad, direction, purpose, or intent. GRANT -Contributions of cash or other assets from another governmental agency to be used or expended for a specified purpose, activity, or facility. HOUSING AUTHORITY FUND - These funds are used to account for the housing activities of the Housing Authority which is to promote and provide quality affordable housing. 11 GLOSSARY OF BUDGET TERMS, CONTINUED INFRASTRUCTURE - Fund contributions of cash or other assets from development oriented applicants used for the City's basic system of its physical plant, (i.e., streets, water drainage, public buildings and parks). INVESTMENT REVENUE - Investment Revenue that is received as interest from the investment of funds not immediately required to meet cash disbursement obligations. LIABILITY - A claim on the assets of an entity. LINE -ITEM BUDGET - A budget that lists detailed expenditure categories (salary, materials, telephone service, travel, etc.) separately, along with the amount budgeted for each specified category. The City uses a program rather than line -item budget, although detail line -item accounts are maintained and recorded for financial reporting and control purposes. MUNICIPAL - In its broadest sense, municipal is an adjective which denotes the state and all subordinate units of government. In a more restricted sense, an adjective which denotes a city or village as opposed to other local governments. OPERATING BUDGET - This is the portion of the budget that pertains to daily operations providing governmental services. PERSONNEL SERVICES - Costs associated with providing the staff necessary to provide the desired levels of services. Included in personnel services are both salary and benefit costs. POLICY - A direction that must be followed to advance toward a goal. The direction can be a course of action or a guiding principal. PROGRAM - A grouping of activities organized to accomplish basic goals and objectives. PROGRAM BUDGET - This is a budget that focuses upon the goals and objectives of an agency or jurisdiction. RESERVE - An Account used to indicate that a portion of a fund's balance is legally restricted for a specific purpose and is, therefore, not available for general appropriation. REVENUE - Funds that the government receives as income. It includes such items as tax payments, fees from specific services, receipts from other governments, fines, forfeitures, grants, shared revenues, and interest income. 12 GLOSSARY OF BUDGET TERMS, CONTINUED RISK MANAGEMENT - This is an organized attempt to protect an organization's assets against accidental loss in the most cost-effective manner. SUPPLIES AND SERVICES - A general category used for clarifying expenditures for various supplies and services which are normally used within a fiscal year. 13