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HomeMy WebLinkAboutAttachment 3: Kimball BudgetKIMBALL TOWERS 2012 Budget Narrative Attachment 3 SUMMARY The 2012 Budget for Kimball Towers proposes a rent increase due to increases in utility, administration and insurance costs. Other expenses that the building must pay for have also increased. Last year's rents increase was effective September 1, 2011. We are proposing this rent adjustment request to be effective September 1, 2012. Currently residents pay 30% of income up to a maximum of$585. ACCT. DESCRIPTION EXPLANATION 5120 Rental Revenue The proposed rents are as follows: 5220 Vacancy Factor 5410 Financial Revenue -Project Operations 5440 Revenue from Investments - Replacements Reserves 5910 Laundry and Vending 5990 Misc. Revenue 6203 Conventions and Meetings 6204 6210 6310 Managetnent_.Consultants_ Advertising/Marketing Office Salaries 6311 Office Expenses 6320 Management Fee 6330 Manager's Salaries Unit Type # of Units Current Rent Proposed Increase Total Rent One -Bedroom 151 $585 $13 $598 Budgeted at 1% of rents. Budgeted per audit. Budgeted at $0. The amount remains in the reserve for replacement account and may not he used for operations. Budgeted per audit for laundry and water vending income. Budgeted per audit for key income and other miscellaneous revenue, Budgeted per current for the following training: • Annual occupancy seminar at $2,700, which includes professional training, food, lodging and mileage for office staff. • 2 annual occupancy -related classes at $300 for office staff. • Annual maintenance seminar at $1,000 for maintenance staff. Budgeted at $2(1,0t0 foran-assefrrtanagement-fee: Budgeted at $500 for classified advertising of rental units. Budgeted per current plus 5% for assistance in processing rents at $628 per month plus $1,500 for additional work related to front-line assistance. Also budgeted for office assistant, working 40 hours per week at $2,947 per month plus additional atnount for sick, overtime and salary increase. Budgeted per audit plus 5% for telephone and Internet, office equipment and maintenance, printing and copying expenses, office supplies, postage, etc... Budgeted at current fee of 7.50% of net rental and laundry revenue. Budgeted per current expense plus 5% for Patricia Estanciero, Resident Manager, working 32 hours per week, earning $1,803 per month. Note that the manager's salary is split between Morgan and Kimball Towers. Also budgeted for Flora Gouleva, Assistant Manager, working 32 hours per week, earning $2,496 per month. Budgeted additional amount for overtime, sick and salary increases. 6331 Admin. Rent -Free Units Budgeted at $585 each per month for the manager's unit and assistant manager's unit. 6340 Legal Expenses Budgeted per audit plus $500 for project related legal expenses. 6350 Auditing Expenses Budgeted per audit plus $500 for annual audit, electronic submission and filing fees. 6351 Bookkeeping Fees / Budgeted for project computer software updates at $803, project computer Accounting Services maintenance at $945 and web -based occupancy software at $1,365, Also added allowable bookkeeping fees of $2 PUPM for centralized services. Prepared by Faikenberg/Gillizan &a Associates, Inc. r Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 • (323) 258-3512 Kimball Towers ACCT. DESCRIPTION 6390 Misc. Administrative Expenses 6450 Electricity 6451 Water 6452 Gas 6453 Sewer 6510 Payroll 6515 Supplies 6520 Contracts 6525 Trash Removal 6530 Security Payroll/ Contract 6546 Heating/Cooling Repairs 6711 Payroll Taxes 6720 Property and Liability Insurance 6722 Worker's Compensation 6723 Health Insurance R. Other Employee Benefits 6790 Misc. Taxes, Licenses and Permits Reserve for Replacement Deposits 2012 Budget Narrative Page 2 EXPLANATION Budgeted per current expense for Resident Council at $100 per month and for a service coordinator at $1,000 per month. Also includes an allowable 10% fee (of service coordinator costs) at $1,200 for quality assurance services. Budgeted per 12-rnonth total of $44,756 plus 5%. Budgeted per 12-month total of $35,149 plus 5%. Budgeted per audit plus 5%. Budgeted per audit plus 5%. Budgeted per current expense plus 5% for Roberto Estanciero , Superintendent, working 40 hours a week earning $1,803 per month. Note that the Superintendent's salary is split between Morgan and Kimball Towers. Also budgeted for Iordan Gouleva, Assistant Superintendent, working 40 hours a week earning $3, 120 per rnonth and for Charles Ray, Maintenance working 40 hours a week earning $3,120. Budgeted additional amount for sick, overtime and salary increases. Budgeted per audit plus 5% for cleaning supplies, plumbing supplies, electrical and maintenance supplies, appliance parts, paint, and hardware and tools, etc. Budgeted per audit plus 5% for elevator maintenance, plumbing and electrical repair, carpet cleaning, landscaping, exterminating, generator service, etc. Budgeted per audit plus 5%, Budgeted per audit plus 5% for guard service, quarterly fire alarm inspections, annual fire alarrunnnitoring,...fire/spt )kler alarua-repairs; smoke-detector--purchases-and installation, and fu-e extinguisher service. Budgeted per audit plus 5% for heating and cooling repairs. Current is high due to repair of boiler at $7,681 and circulating/start pumps at $3,930. Budgeted per audit plus 5% of Social Security, Medicare, and SIJI/ETT employee taxes. Budgeted per current premium of $32,400p1us 5% for property and liability insurance. Auditis low due to insurance reimbursements of $10,910 for property damages. Budgeted per audit plus 5% for worker's compensation insurance. Budgeted per current expense plus 5% for three employees at monthly cost of $758.83 each for health insurance, $5.90 each for life insurance, and $15.05 each Par dental insurance. In addition, budgeted for pension cost which is 5% of each employee's base payroll Budgeted per current plus 5% for elevator permit and inspection fees at $850, annual emissions fee at $319, and I-Iazmat materials fee at $314. Budgeted per monthly deposit of $7,000. May 3, 2012 Prepared by Fa kenberg/Gilliam & As8ociates, Inc. ■ Managing Agents 1560 West Colorado Boulevard, P.O. Box 7070, Pasadena, CA 91109-7070 • (323) 258-3512 Budget Worksheet income and Expense Projections U.S. Department of Housing and Urban Development Office of Housing Federal Housing Commissioner OMB Approval No, 2502-0324 (axp. 12/3112014} Public reporting burden for this collection of Information Is estimated to average 1.5 hours per response, inciuding the time far reviewing instructions, searching existing dale sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may nal collect this information, and you are not required to complete this form, unless it displays a currently valid OM6 control number. This information is collected in accordance with Title II of the National Housing Act which requires that HUD regulate rents far certain cooperative and subsidized rental projects. The Department formulated the processes by which owners could request increases. The requirements for tenant participation in the rent increase process, which is included in Section 202 (b) of the HCD Amendments of 1978, necessitated that the Department design procedures to give consideration tar tenant comments. The information gathered is not of a confidential nature. The information is required in order to obtain benefits. Project Number Name of Project Description of Account Rental Rent Revenue - Gross Potential Income Tenant Assistance Payments 5100 Rent Revenue - Stores & Commercial Garage & Parking Spaces Flexible Subsidy Revenue Miscellaneous Rent Revenue Excess Rent Rent Revenue/Insurance Special Claims Revenue Retained Excess income Acct No. 5120 5121 5140 5170 5180 5190 5191 5192 5193 5194 Audit , (FYE 613012011) PUPM 151112 516,346 284.96 470,359 259.58 KIMBALL TOWER Current FY ! PUPM (no. of mos. 9) J 15119 376,741 412,150 Budget from 9/1 /12-8/31 /13 277.22 303.27 567,039 516,537 PUPM 151/12 312.94 265.06 Total Rent Revenue Potential al 100% Occupancy Vacancies Apartments 5200 Stores and Commercial 5100T 5220 5240 986,705 544.54 4, 560 2.52 788,891 469 580.49 0.35 1,083,576 598.00 i 10,836 5.98 Rental Concessions Garage & Parking Spaces Miscellaneous Total Vacancies 5250 5270 5290 Net Rental Revenue (Rent Revenue less Vacancies) 5200T 4,560 2.52 5152N 982,145 542.02 tneerne Nursing Homes/Assisted Living/Hoard & Care/ Other 5300 Elderly Care/ Coop/ Other Revenues 469 788,422 0.35 580.15 10,836 5.98 1,072,740 592.02 Financial Financial Revenue - Project Operations Revenue Revenue from Investments - Res. Rec. 5300 5410 5430 31 0.02 15 0.01 31 0.02 5400 Revenue from Investments - Repl. Res Other Revenue 5900 Admin. Expenses 62001 6300 Revenue from Investments - Miscellaneous 5440 5490 2,565 1.42 Total Financial Revenue Laundry and Vending Revenue Tenant Charges 5400T 2,596 5910 7,038 5920 interest Reduction Pay.ments.Revenue. Gifts (nonprofits) Miscellaneous Revenue Total Other Revenue Total Revenue Conventions and Meetings Management Consultants Advertising and Marketing Other Renting Expense 5945 5970 5990 320 1.43 3.86 0.18 15 4,995 0.01 3.68 31 7,038 - 0,02 3.88 506 0.37 320 0.18 5900T 5000T 6203 6204 7,358 992,099 4,185 4.06 547.52 2.31 5,501 793,938 3,238 4.05 584,21 2.38 7,358 1,080,129 6210 4,000 20,000 4.06 596.10 2.21 11.04 6250 52 0.03 Office Salaries Office Expenses Office or Model Apartment Rent 5310 6311 6312 47,793 19,337 26.38 10.67 32,470 15,820 23.69 11.64 Management Fee Manager or Superintendent Salaries Administrative Rent Free Unit �rn Legal Expenses - Project Audit Expenses Bookkeeping Fees/Accounting Services Miscellaneous Administrative Expenses Total Administrative Expenses Previous editions are obsolete 5320 6330 6331 6340 6350 6351 70,343 48,681 13,600 1,080 3,000 4,190 6390 38.82 26.87 7.51 0.60 1.66 2.31 13,445 7.42 57,767 41,458 10,160 1,975 9,900 6263 T 225,706 124.56 172,788 42.51 30.51 7.48 1.45 7.28 127,14 page 1 of 2 ref. Handbook 4350.1 500 0.28 49,035 27.06 20,304 f 11,21 60,983 t 44.69 32.65 7-92 1,580 i 0.87 ,f 3,500 i 1.93 6,737 f 3.72'I 14,400 7.95Ij 274,554 I 151.52.11 form HUD-92547-A (8/2000) 59,163 14,352 Project Number Name of Project KIMBAL Description of Account a �Fuel Acct, No. Audit (FYE6/30/2011} PUPM 151/12 Current FY (no.ofmos. 9) PUPM 151/9 Budget from 9/1/12-8/31/13 PUPM 151/12 Utilities Oil/Coal 6420 6400 Electricity 6450 44,255 24.42 33,578 24.71 46,994 25.93 Water 6451 26,893 14.84 23,978 17.64 36,906 20.37 Gas 6452 53,441 29.49 37,259 27.42 56,113 30,97 Sewer 6453 45,300 25.00 45,300 33.33 47,565 26.25 Total Utilities Expense 6400 T 169,889 93.76 140,115 103.10 187,578 103.52 Operating & Payroll 6510 103,853 57.31 81,256 59.79 108,838 60.07 Maint. Supplies Expenses 6515 47,791 26.37 25,481 18.75 50,181 27.69 Contracts 6500 6520 186,842 10311 98,008 72.12 196,184 108.27 Operating and Maintenance Rent Free Unit 6521 - - - Garbage and Trash Removal 6525 13,584 7.50 9,525 7.01 14,263 7.871 Security Payroll/Contract 6530 30,825 17.01 22,978 16.91 32,366 17.86 Security Rent Free Unit 6531 - - Heating/Cooling Repairs and Maintenance 6546 19,017 10.50 26,129 19.23 19,968 11.02 Snow Removal 6548 - - - Vehicle & Maint. Equip. Oper. and Repair 6570 - - - Misc. Operating & Maintenance Expenses 6590 - - Total Operating & Maintenance Expenses 6500 T 401,912 221.81 263,377 193.80 421,800 232.78 Taxes & Real Estate Taxes 6710 - - Insurance Payroll Taxes (Project's share) 6700 6711 18,213 10.05 13,509 9.94 19,124 10.55 Property and Liability Insurance (Hazard) 6720 21,339 11.78 24,300 17.88 34,020 18.77 Fidelity Bond Insurance 6721 - - - Workmen's Compensation 6722 15,467 8.54 14,304 10.53 16,240 8.96 Health Insurance & Other Employee Benefits 6723 24,456 13.50 17,781 13.08 38,723 21.37 Mlsc. Taxes, Licen., Permits, & Insurance 6790 633 0.35 850 0.63 1,557 0.86 Total Taxes & Insurance 6700T 80,108 44.21 70,744 52.06 109,664 60.52 Financial Interest on Mortgage Payable 6820 - - _ - Expenses Interest on Notes Payable (Long -Term)' 6800 6830 1 Interest on Notes Payable (Short-Terrn)' 6840 p I Mortgage Insurance Premium/Service Charge 6850 - - - J Miscellaneous Financial Expenses 6890 Total Financial Expenses 6800 T - _ - _ - Expenses Nursing Homes/Assisted Living/Board & 6900 CarrJOther twld. Garet Coop/Other 6900 i_ Total Cost of Operations 6000T 877,615 484.33 647,024 476.10 . 993,596 548.34 Reserve for Replacements Dep. Required 84,000 46.36 63,000 46.36 84,000 46.36 Principal Payments Required._:... _ ... Debt Service for other approved loans Debt Service Reserve (if required} General Operating Reserve (Coops} Total Cash Requirements 961,615 530.69 710,024 522.46 1,077,596 594,70 Less Total Revenue 992,099 547.52 793,938 584.21 1,080,129 596.10 Net Cash Surplus (Deficiency) 30,484 16.82 83,914 61.75 2,533 1.40 5/3/2012 i hereby certify that all the information stated herein, as well as any information provided in the accompaniment herewith, is true and accurate. Warning; HUD will prosecute false claims and statements. Conviction may result in criminal and/or civil penalties. (1 B U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) (Snature} Date (mmldd/yyyy) Previ ,Ions are obsolete *HUD Approved Secondary Financing page 2 of 2 Only for Budget Projections. ref. Handbook 4350.1 form HUD-92547-A (B12000) ---� CAPITAL IMPROVEMENT BUDGET KIMBALL TOWER • Replace boilers: Estimate: $205,OOO/Paid by replacement reserves. Up -grade hot water supply piping: Estimate: $35,000/Paid by replacement reserves. • Modernize elevators: Estimate $225,OOO/Paid by replacement reserves.