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HomeMy WebLinkAboutBudget FY 2005/06 - Country Village Apartments PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: APPROVE THE FISCAL YEAR 2005-2006 BUDGET FOR THE COUNTRY VILLAGE APARTMENTS AND AUTHORIZE THE DIRECTOR OF FINANCE TO APPROPRIATE FUNDS FROM THE UNOBLIGATED HOUSING AUTHORITY FUND SUBMITTED BY: JANET MOORE, HOUSING AUTHORITY ADMINISTRATOR DATE: OCTOBER 13, 2005 CONTENTS: 2005-2006 COUNTRY VILLAGE APARTMENTS BUDGET Recommendation: That the Housing Authority Board, by minute motion: 1. Approve the Fiscal Year 2005-2006 operating budget for the 66 unit apartment complex currently known as Country Village Apartments and located at 42455 Washington Street attached hereto as Exhibit "A", and 2. Authorize the Director of Finance to budget$128,884 in revenue and appropriate $590,628 for expenditures to the 2005-2006 Fiscal Year operating budget for Country Village Apartments from the Unobligated Housing Authority Fund (871). Executive Summary: Approval of this request will establish and appropriate a budget for the operations of the property located at 42455 Washington Street currently known as Country Village Apartments. In order to operate the newly acquired property a budget has been developed based on expected costs and revenue. Discussion: On September 30, 2005, the Palm Desert Redevelopment Agency closed escrow on a 66 unit apartment complex known as Country Village Apartments on Washington Street. The Palm Desert Housing Authority has been duly authorized to operate the Agency's properties and in order to maintain continuity in all our projects has asked the current management company to submit a proposal to oversee the day-to-day operations. Staff Report 2005-2006 Country Village Apartments October 13, 2005 Page 2 In order to pay the necessary expenses related to the operations of this property, the Authority has prepared a budget based on prior experience with similar properties. Once the initial set-up is complete and the property's tenant base is established, the property budget will stabilize. Due to the date escrow closed, this budget was not included in the 2005-2006 Financial Plan submitted by the Director of Finance. A report will be provided to the Agency Board regarding the disposition of the property once a full evaluation is complete. In the meantime, this property will be managed with the same expected quality and standards as the other properties managed by the Authority. Submitted by: Department Head: J efl,;„..„.„„„ oore Dave Yrigo Housing Authority Administrator Director edevelopment/Housing Approval: • 0a4-1//-7-- J ti McCarthy, AC elopment Paul G. Gibson, Finance Director Carlos L Ortega, cutive Director • PALM DESERT REDEVELOPMENT AGENCY BUDGET WORKSHEETS FY 2005-2006 HOUSING AUTHORITY-COUNTRY VILLAGE FUND# 871 8691 ACTUAL ADOPTECPROJECT'1st YEAR Account Code Account Description FY 03-04 FY 04-05 FY 04-05 FY 05-06 Revenue: 871-8691-363.20-00 TOTAL RENTAL INCOME 128,884_ Expenditures - 871-8691-466.30-89 PROF-COUNTRY VILLAGE 88,283 871-8691-466.30-92 PROF-OTHER 64,644 871-8691-466.30-93 PROF-ADM EXP/APARTMENT BL 27,648 871-8691-466.32-23 ADVERTISING/PROMOTION 6,466 871-8691-466.33-10 RIM-BUILDING 50,360 871-8691-466.35-14 UTILITIES 44,400 871-8691-466.36-95 MISCELLANEOUS EXP 8,827 SUBTOTAL EXPENDITURES 290,628 NET OPERATING INCOME(NO1) (161 744) 871-8691-466.33-11 REPLACEMENT EXPENDITURES 250,000 871-8691-466.40-01 CAPITAL BUDGET 50,000 871-8691-466.40-50 CAPITAL IMPROVEMENTS - NET INCOME (461 744) HOUSING AUTHORITY - COUNTRY VILLAGE FUND# 871 HOUSING AUTHORITY- COUNTRY VILLAGE DEPT. 8691 Program Narrative: Country Village Apartment complex has 66 units which are all rented at affordable levels for very low, low and moderate income families. EXPENDITURE ACTUAL ADOPTED PROJECTED 1st YEAR PERCENTAGE SUMMARY FY 03-04 FY 04-05 FY 04-05 FY 05-06 CHANGE SALARY AND BENEFITS SUPPLIES OTHER SERVICES 290,628 -100.00% CAPITAL OUTLAY 300,000 -100.00% TOTALS: 590,628 -200.00% SIGNIFICANT CHANGES: