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Housing - Item 3A - Adoption of Housing Fiscal Year 2008-09 BudgetE M 6 • S O � S r ?PIP ,N 0 PORAnD �V59 0 ROSEMEAD HOUSING DEVELOPMENT CORPORATION STAFF REPORT TO: THE HONORABLE PRESIDENT AND BOARD OF DIRECTORS FROM: OLIVER CHI, EXECUTIVE DIRECTOR (�..� -�- DATE: JUNE 10, 2008 SUBJECT: ADOPTION OF THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION'S FISCAL YEAR 2008 -09 ANNUAL BUDGET SUMMARY The Rosemead Housing Development Corporation's fiscal year 2008 -09 Annual Budget (Attachment A) is as follows: Total Appropriations FY 2008 -09 $694,400 Staff Recommendation Staff recommends that the Corporation adopt Resolution No. 2008 -01 approving the fiscal year 2008 -09 Annual Budget in the amount of $694,400. PUBLIC NOTICE PROCESS This item has been noticed through the regular agenda notification process. Submitted by: Steven Brisco Finance Director Attachment A: Annual Budget Attachment B: Resolution No. 2008 -01 APPROVED FOR CITY COUNCIL AGENDA: V . ITEM NUMBER: 0 0 • RESOLUTION NO. 2008 -01 A RESOLUTION OF THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION ADOPTING THE ANNUAL BUDGET FOR THE 2008 -09 FISCAL YEAR WHEREAS, a proposed annual budget for the Rosemead Housing Development Corporation for the Fiscal Year commencing July 1, 2008 and ending June 30, 2009 was submitted to the Housing Development Directors for it's review and consideration and the proposed annual budget is on file in the City Clerk's office; and WHEREAS, on June 10, 2008 a budget study session and a public hearing were held, and NOW, THEREFORE, THE HOUSING DEVELOPMENT DIRECTORS OF THE ROSEMEAD HOUSING DEVELOPMENT CORPORATION DOES RESOLVE AS FOLLOWS: The 2008 -09 Annual Budget, is hereby adopted. 2. There is hereby appropriated to each account group set forth in the • Annual Budget attached hereto, and made a part hereof as though fully set forth herein, the sum shown for such account groups in the 2008- 09 Adopted Column. 3. The President shall sign and the City Clerk shall certify to the passage and adoption of this Resolution and thereupon the same shall take effect and be in force. PASSED, APPROVED and ADOPTED the 10th day of June, 2008 ATTEST: Corporation Secretary • PRESIDENT, ROSEMEAD HOUSING DEVELOPMENT CORPORATION • • ROSEMEAD HOUSING DEVELOPMENT CORP ANNUALBUDGET FISCAL YEAR 2008 -09 JOHN NUNEZ VICE - CHAIRPERSON POLLY LOW COMMISSIONER ROSEMEAD HOUSING DEVELOPMENT CORPORATION ANNUAL BUDGET JULY 1, 2008 - JUNE 30, 2009 JOHN TRAN CHAIRPERSON OLIVER CHI EXECUTIVE DIRECTOR MARGARET CLARK COMMISSIONER GARY TAYLOR COMMISSIONER 0 0 ROSEMEAD HOUSING DEVELOPMENT CORPORATION PRELIMINARY BUDGET FISCAL YEAR 2008 -09 TABLE OF CONTENTS PAGE I. SUMMARY OF FUND BALANCE RHDC Funds 1 II. SUMMARY OF EXPENDITURES BY CATEGORY Administration ........................:............. ............................... 2 Special Projects ................................... ............................... 2 Housing Rehabilitation ........................... ............................... 2 III. CHART OF ACCOUNTS Revenues............................................ ............................... 3 Expenditures....................................... ............................... 3 COST IV. EXPENDITURE DETAIL CENTER Administration ...................................... ............................... 4870 Special Projects ................................... ............................... 4875 Housing Rehabilitation ........................... ............................... 4880 0 ROSEMEAD HOUSING DEVELOPMENT CORPORATION SUMMARY OF FUND BALANCE RESOURCES: Funds Available at July 1 Transfers from Redevelopment Agency Housing Set -Aside Fund Rental Income Miscellaneous Revenue Total Funds Available EXPENDITURES: Administrative Expenditures Special Project Expenditures Rehabilitation Expenditures Total Expenditures FUND BALANCE AT JUNE 30 -1- 2007 -08 2008 -09 Projected Budget $ 358,155 $ 347,696 250,000 250,000 415,000 416,000 5,680 5,700 1,028, 835 1,019,396 225,350 226,200 455,789 468,200 681,139 694,400 $ 347,696 $ 324,996 Ll 0 ROSEMEAD HOUSING DEVELOPMENT CORPORATION SUMMARY OF EXPENDITURES BY CATEGORY -2- 2007 -08 2008 -09 Projected Budget ADMINISTRATIVE (Cost Center 4270) Legal Fees $ - $ 500 Auditing Fees 4,500 4,500 Department Supplies 100 100 IlMiscellaneous Expenses 1,500 1,500 Travel and Meeting Expenses - - Membership /Subscription - - City Services 219,600 219,600 TOTAL ADMINISTRATIVE $ 225,700 $ 226,200 SPECIAL PROJECTS (Cost Center.4275) First Time Home Buyers Program $ - $ - Management Contract - Angelus 154,000 160,000 Special Insurance - Angelus 5,140 5,500 Lease Payment - Angelus 60,000 60,000 Management Contract - Garvey 155,000 160,000 Special Insurance - Garvey 9,649 10,700 Lease Payment - Garvey 72,000 72,000 TOTAL SPECIAL PROJECTS $ 455,789 $ 468,200 HOUSING REHABILITATION (Cost Center 4280) Planning and Administration $ $ Residential Rehabilitation TOTAL HOUSING REHABILITATION $ $ - RHDC FUND TOTAL $ 681,489 $ 694,400 -2- REVENUE 0 0 ROSEMEAD HOUSING DEVELOPMENT CORPORATION CHART OF ACCOUNTS 3510 Rental Income 3985 Miscellaneous Revenue 3995 Transfers from RDA - Housing Set -Aside Fund EXPENDITURES Administration (4270): 4340 Legal Fees 4410 Auditing Fees 5010 Department Supplies 6450 Travel and Meeting Expense 6460 Membership /Subscription Special Projects (4275): 4221 Project Management 4461 Management Contract Expenses 6230 Special Insurance 6412 First Time Home Buyers Program 6415 Home Threshold (Matching Funds) 6475 Lease Payment Housing Rehabilitation (4280): 4293 Planning and Administration 4294 Residential Rehabilitation 19911 ROSEMEAD HOUSING DEVELOPMI PRELIMINARY BUDGET FISCAL YEAR 2008 -09 Housing Development ACTIVITY: Administration ORGANIZATION: FDIPROJ # ACTIVITY EXPENSE IF—BUDGET I 007 ESTIMATED I BUD ET OPERATIONS 4340 Fund 52 Legal Fees $ - $ 3,000 $ 150 $ 500 4410 Fund52 Auditing Fees 4,000 3,000 4,000 4,500 5010 Fund52 Department Supplies - 300 100 100 6410 P71552 Miscellaneous Expenses - - 750 750 6410 P72052 IMiscellaneous Expenses - - 750 750 6450 Fund52 Travel and Meeting Expense - 500 - - 6460 Fund52 Membership /Subscription - 500 - - 6500 Fund52 City Services 219,600 219,600 219,600 219,600 Total Operations TOTAL $ 223,600 $ 226,900 • 0 ROSEMEAD HOUSING DEVELOPMENT CORPORATION ACCOUNT DESCRIPTIONS ADMINISTRATION Cost Center 4270 OPERATIONS 4340 LEGAL FEES — Provides funds to retain legal services as needed and or requested by the Housing Development Corporation. 4410 AUDITING FEES — Provides funds for an independent C.P.A. firm to perform an annual audit, complete any ` necessary reports, and provide requested professional information. 5010 DEPARTMENT SUPPLIES —Provides funds for departmental supplies. 6450 TRAVEL AND MEETINGS — Provides funds for any corporation related traveling and/or meetings as provided by the Board of Directors. 6410 MISCELLANEOUS EXPENSES — All current expenditures have been transferred to the Special Projects Budget, account 4461, Management Contract Expenses. 6460 MEMBERSHIPS /SUBSCRIPTIONS — Provides funds for membership in selected professional journals and periodicals, if needed. 6500 CITY SERVICES — Provides funds to reimburse the City of Rosemead for services that the Housing Development Corporation requires. ) HOUSING DEVELOPMI PRELIMINARY BUDGET FISCAL YEAR 2008 -09 Housing Development ACTIVITY: Special Projects ORGANIZATION: ACCOUNT 2006 -07 NO. ACTUAL 2007 -08 2008 -09 FD /PROJ # ACTIVITY EXPENSE BUDGET ESTIMATED BUDGET OPERATIONS - GENERAL 6412 P72152 First Time Home Buyers Prog. $ $ $ $ Sub -Total GENERAL - OPERATIONS - ANGELUS 4461 P71552 Management Contract Exp. 148,165 154,000 154,000 160,000 6230 P71552 Special Insurance 5,265 5,000 5,140 5,500 6475 P71552 Lease Payment 60,000 60,000 60,000 60,000 Sub -Total ANGELUS SR. HOUSING PROJECT 213,430 219,000 219,1401 225,500 OPERATIONS - GARVEY 4461 P72052 Management Contract Exp. 149,127 173,850 155,000 160,000 6120 P72052 Utilities - Electric - - - - 6230 P72052 Special Insurance 10,292 10,700 9,649 10,700 6475 P72052 Lease Payment 72,000 72,000 72,000 72,000 Sub -Total GARVEY SR. HOUSING PROJECT 231 419 256 550 236 649 242.700 Total Operations 444,849 475,550 455,7; CAPITAL OUTLAY Total Capital Outlay 0O� 789 0 0 ROSEMEAD HOUSING DEVELOPMENT CORPORATION ACCOUNT DESCRIPTIONS ADMINISTRATION Cost Center 4275 OPERATIONS 6411 FHRST TIME HOME BUYERS PROGRAM (1`72152) — Provides funds for financial assistance in the form of down payment subsidies through a second trust deed program for the purchase of a home. The loan program enables eligible households to purchase housing in Rosemead that they would otherwise be unable to acquire, as well as' expanding the opportunities for affordable home ownership in the City for households earning from 80% to 120% of median income. P71552 ANGELUS SENIOR HOUSING PROJECT: 4461 MANAGEMENT CONTRACT EXPENSES — Provides funds for Ronald H. Levine, Inc. to provide management services to operate the Angelus Senior Housing complex. They provide an in -house manager, collect the rents, supervise building maintenance and recreation activities. The firm also makes the payments for electricity, gas, telephone alarm system and repairs to building and janitorial services. 6230 SPECIAL INSURANCE — Provides funds for property insurance on the Angelus Senior Housing complex and contents in case of theft or fire loss. 6475 LEASE PAYMENT — Provides funds for lease payments in the amount of $60,000 per year as specified in the lease agreement between the City of Rosemead and the RHDC. 0 0 ROSEMEAD HOUSING DEVELOPMENT CORPORATION ACCOUNT DESCRIPTIONS ADMINISTRATION Cost Center 4275 (continued) OPERATIONS (continued) P72052 GARVEY SENIOR HOUSING PROJECT: 4461 MANAGEMENT CONTRACT EXPENSE - Provides funds for Ronald H. Levine, Inc. to provide management services to operate the Garvey Senior Housing complex. They provide an in -house manager, collect the rents, supervise building maintenance and recreation activities. The firm also makes the payments for electricity, gas, telephone alarm system and repairs to building and janitorial services. 6230 SPECIAL INSURANCE — Provides funds for property insurance on Garvey Senior Housing complex and contents in case of theft or fire loss. 6475 LEASE PAYMENT — Provides funds for lease payments in the amount of $72,000 per year as specified in the lease agreement between the City of Rosemead and the RHDC. ROSEMEAD HOUSING DEVELOPMENT CORPORATION ACCOUNT DESCRIPTIONS ADMINISTRATION Cost Center 4280 OPERATIONS 4293 PLANNING AND ADMINISTRATION — Provides funds for the staff time and consultant time spent in the administration of this program which would be identical to the City's CDBG program. 4294 RESIDENTIAL REHABILITATION —'Provides funds for a program identical to the City's successful housing rehabilitation program operated under the guidelines of the CDBG program. The program could include components similar to the Handyman Grant, Rebate, Deferred Loan, Low Interest programs.