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HomeMy WebLinkAboutAttachment 2KIMBALL TOWERS 2014 Budget Narrative Attachment 2 SUMMARY The 2014 Budget for Kimball Towers does not propose a rent increase as we are projecting a budget surplus of $49,172. Therefore, we believe current rent levels will be adequate to operate the building for the 2014 Budget Year. We will submit this budget for owner review and approval. Currently residents pay 30% of income up to a maximum of $610. ACCT. DESCRIPTION EXPLANATION 5120 Rental Revenue 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 Management Consultants 6310 6311 6320 6330 Office Salaries Office Expenses Management Fee Manager's Salaries 6331 Admin. Rent -Free Units 6340 Legal Expenses 6350 Auditing Expenses 6351 Bookkeeping Fees / Accounting Services The proposed rents are as follows: Unit Type Units Current Rent One -Bedroom 151 $610 Budgeted at 1 % of.rents. Budgeted per audit. Budgeted at $0. The amount remains in the reserve for replacement account and may not be used for operations. Budgeted per audit for laundry and water vending income. Budgeted per current for key income and other miscellaneous revenue. Budgeted for annual occupancy training at $2,700, which includes professional training, food, lodging and mileage for office staff, 2 annual occupancy -related classes at $300 total for office staff, for subtotal of $3,000. In addition, budgeted for annual maintenance seminar at $1,00 for maintenance staff. Budgeted at $25,000 for asset management fee. Current includes consulting fees for development of new project. Budgeted per current for assistance in processing rents at $753 per month plus $1,500 for additional work related to front-line assistance. Also budgeted for Irma Garcia, office assistant, working 40 hours per week at $3,293 per month plus 5%. Also included additional amount for sick, overtime and salary increase. In addition, budgeted for a 5% year-end bonus for office assistant, in lieu of a pension contribution. Budgeted per audit plus 5% for telephone and Internet, office equipment and maintenance, printing and copying expenses, office supplies, postage, etc. Budgeted at current rate of7.50% of net rental, vending machine and laundry revenue. Budgeted per current plus 5% for Patricia,Estanciero, Resident Manager, working 32 hours per week, earning $1,941 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 $2,773 per month. Budgeted additional amount for overtime, sick and salary increases. In addition, budgeted for 5% year-end bonuses, in lieu of pension contributions. Budgeted at $610 each per month for the manager's unit and assistant manager's unit. Budgeted at $500 for project related legal expenses. Budgeted per audit plus $500 for annual audit, electronic submission and filing fees. Budgeted for project computer software updates at $431, project computer maintenance at $1,292 and web -based occupancy software at $1,507. Also included allowable bookkeeping fees of $4 PUPM for centralized services. Prepared by FaikenbereGiniam & Associates, Inc.. ■ 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 6530 Trash Removal Security Payroll/ Contract 6546 Heating/Cooling Repairs 6711 Payroll Taxes 6720 Property and Liability Insurance 6722 Worker's Compensation 6723 Health Insurance & Other Employee Benefits 6790 Misc. Taxes, Licenses and Permits Reserve for Replacement Deposits 2014 Budget Narrative EXPLANATION Budgeted per current for Resident Council at $100 per month. Resident Council is a tenant association that represents the tenants. They are elected by the tenants and provide support, activities and refreshments to all residents. Also budgeted for a service coordinator at $1,025 per month. The service coordinator helps the elderly residents obtain supportive services from the community in order to help them live independently and in their home. Attachment 2 Page 2 Budgeted per 12-month current total of $46,820 plus 5%. Budgeted per 12-month current total of $40,835 plus 5%. Budgeted per 12-month current total of $44,614 plus 5%. Budgeted per current sewer fee of $45,300. Budgeted per current plus 5% for Roberto Estanciero, Superintendent, working 40 hours a week earning $2,427 per month. Note that the Superintendent's salary is split between Morgan and Kimball Towers. Also budgeted for lordan Gouleva, Assistant Superintendent, working 40 hours a week earning $3,467 per month and for Charles Ray, Maintenance working 40 hours a week earning $3,640 per month. Budgeted additional amount for sick, overtime and salary increases. In addition, budgeted for 5% year-end bonuses, in lieu of pension contributions. 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 (less $29,224, for capital needs items, such as flooring and cabinets/countertops) plus 5% for elevator maintenance, plumbing and electrical repair, carpet cleaning, landscaping, exterminating, generator service, etc. Current is high due to replacement of generator at $59,950. Budgeted per 12-month current total of $12,800 plus 5%. Budgeted per audit (less $67,159 for replacement of fire alarm system) plus 5% for guard service, quarterly fire alarm inspections, annual fire alarm monitoring, fire/sprinkler alarm repairs, smoke detector purchases and installation, and:fire extinguisher service. Current. is high due to fire alarm upgrade costs of $66,929. Budgeted per audit plus 5% for heating and cooling repairs. Budgeted at 7.65% of salaries for Social Security and Medicare plus $224 each for SUI/ETT taxes. Budgeted per current 2014-2015 premium of $40,868 for property and liability insurance. Budgeted per 2013-2014 premium of $16,392 plus 5% for worker's compensation insurance. Budgeted per current plus 5% for four employees at monthly cost of $909.02 each for health insurance, $5.90 each for life insurance, and $15.81 each for dental insurance. Audit was low because not all staff was participating. However, other employees has shown interest in participating and therefore budgeted for that amount. Budgeted per current plus $500 for elevator permit and inspection fees at $700, annual emissions fee at $270, Hazmat materials fee at $281, and generator permit at $309. Budgeted per monthly deposit of $7,000. May 20, 2014 Prepared by Fallkenberg/Gfllliam &z Associates, 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 A #Mb Ui2t.2 (exp. 12/31/2014) Public reporting burden for this collection of information is estimated to average 1.5 hours per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. This agency may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. This information is collected in accordance with Title II of the National Housing Act which requires that HUD regulate rents for 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 for 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 KIMBALL TOWER Description of Account Acct. No. Audit (FYE 6/30/2013) PUPM 151/12 Current FY (no. of mos. 9) PUPM 151/9 Budget from 9/1/14-8/31/15 PUPM 151/12 Rental Y Rent Revenue - Gross Potential 5120 517,527 285.61 387,761 285.33 530,600 292.83 Income Tenant Assistance Payments 5121 560,559 309.36 435,868 320.73 574,720 317.17 5100 Rent Revenue - Stores & Commercial 5140 - - - Garage & Parking Spaces 5170 - - - Flexible Subsidy Revenue 5180 - - - Miscellaneous Rent Revenue 5190 - - - Excess Rent 5191 - - - Rent Revenue/Insurance 5192 - - - Special Claims Revenue - - - Retained Excess Income 5194 - - - Total Rent Revenue Potential at 100% Occupancy 5100T 1,078,086 594.97 823,629 606.06 1,105,320 610.00 Vacancies Apartments 5220 5,004 2.76 3,023 2.22 11,053 6.10 5200 Stores and Commercial 5240 - - - Rental Concessions 5250 - - - Garage & Parking Spaces 5270 - - - Miscellaneous 5290 - - Total Vacancies 5200T 5,004 2.76 ' 3,023 2.22 11,053 6.10 , Net Rental Revenue (Rent Revenue less Vacancies) 5152N 1,073,082 592.21 820,606 603.83 1,094,267 603.90 Income Nursing Homes/Assisted Living/Board & Care/ Other 5300 Elderly Caret Coop/ Other Revenues 5300 Financial Financial Revenue - Project Operations 5410 26 0.01 • 21 0.02 26 0.01 Revenue Revenue from Investments - Res. Rec. 5430 - - - 5400 Revenue from Investments - Repl. Res 5440 1,910 1.05 - - Revenue from Investments - Miscellaneous 5490 - - - - Total Financial Revenue 5400T 1,936 1.07 21 0.02 26 0.01 Other Laundry and Vending Revenue 5910 7,218 3.98 5,664 4.17 7,218 3.98 Revenue Tenant Charges 5920 - - - 5900 Interest Reduction Payments Revenue 5945 - - - Gifts (nonprofits) 5970 - - - Miscellaneous Revenue 5990 180 0.10 120 0.09 :120 0.07 Total Other Revenue 5900T 7,398 4.08 5,784 4.26 7,338 4.05 Total Revenue 5000T 1,082,416 597.36 826,411 608.10 1,101,631 607.96 Admin. Conventions and Meetings 6203 3,417 1.89 3,204 2.36 4,000 2.21 Expenses Management Consultants 6204 20,000 11.04 25,563 18.81 25,000 13.80 6200/ Advertising and Marketing 6210 - - - - - 6300 Other Renting Expense 6250 - - 445 0.33 - Office Salaries 6310 44,421 24.51 37,670 27.72 56,508 31.19 Office Expenses 6311 19,851 10.96 16,491 12.13 20,844 11.50 Office or Model Apartment Rent 6312 - - - - Management Fee 6320 80,106 44.21 61,027 44.91 81,513 44.99 Manager or Superintendent Salaries 6330 54,225 29.93 48,131 35.42 65,984 36.42 Administrative Rent Free Unit 6331 14,300 7.89 10,908 8.03 14,640 8.08 Legal Expenses - Project 6340 - - 170 0.13 500 0.28 Audit Expenses 6350 8,000 4.42 - - 8,500 4.69 Bookkeeping Fees/Accounting Services 6351 6,256 3.45 5,627 4.14 10,477 5.78 Miscellaneous Administrative Expenses 6390 13,375 7.38 9,925 7.30 13,500 7.45 Total Administrative Expenses 145.67 219,161 161.27 301,466 166.37 Previous editions are obsolete page 1 of 2 ref. Handbook 43501 form HUD-92547-A (8/2000) Project Number Name of Project Attacnment 2 KIMBALL TOWER Description of Account Acct. No. Audit (FYE 6/30/2013) PUPM 151/12 Current FY (no. of mos. 9) PUPM 151/9 Budget from 9/1/14-8/31/15 PUPM 151/12 Utilities Fuel Oil/Coal 6420 6400 Electricity 6450 45,241 24.97 35,761 26.31 49,161 27.13 Water 6451 36,418 20.10 28,192 20.74 42,877 23.66 Gas 6452 43,918 24.24 33,461 24.62 46,845 25.85 Sewer 6453 45,300 25.00 45,300 33.33 45,300 25.00 Total Utilities Expense 6400 T 170,877 94.30 142,714 105.01 184,183 101.65 Operating & Payroll 6510 110,163 60.80 95,134 70.00 132,090 72.90 Maint. Supplies 6515 34,158 18.85 24,352 17.92 35,866 19.79 Expenses Contracts 6520 136,289 75.21 171,181 125.96 112,418 62.04 6500 Operating and Maintenance Rent Free Unit 6521 - - - Garbage and Trash Removal 6525 12,505 6.90 9,415 6.93 13,440 7.42 Security Payroll/Contract 6530 105,663 58.31 88,086 64.82 40,429 22.31 Security Rent Free Unit 6531 - - - Heating/Cooling Repairs and Maintenance 6546 20,410 11.26 9,789 7.20 21,431 11.83 Snow Removal 6548 - - - Vehicle & Maint. Equip. Oper. and Repair 6570 - - - Misc. Operating & Maintenance Expenses 6590 1,012 0.56 - - Total Operating & Maintenance Expenses 6500 T 420,200 231.90 397,957 292.83 355,674 196.29 Taxes & Real Estate Taxes 6710 - - Insurance Payroll Taxes (Project's share) 6711 17,738 9.79 15,415 11.34 20,013 11.04 6700 Property and Liability Insurance (Hazard) 6720 33,478 18.48 27,147 19.98 40,868 22.55 Fidelity Bond Insurance 6721 - - - Workmen's Compensation 6722 15,261 8.42 12,294 9.05 17,212 9.50 Health Insurance & Other Employee Benefits 6723 30,334 .16.74 25,626 18.86 46,983 25.93 Misc. Taxes, Licen., Permits, & Insurance 6790 1,560 0.86 6,694 4.93 2,060 1.14 Total Taxes & Insurance 6700T 98,371 54.29 87,176 64.15 127,136 70.16 Financial Interest on Mortgage Payable 6820 - - - - - Expenses Interest on Notes Payable (Long -Term) * 6830 6800 Interest on Notes Payable (Short -Term) * 6840 Mortgage Insurance Premium/Service Charge 6850 - - - Miscellaneous Financial Expenses 6890 Total Financial Expenses 6800 T - - - - - - Expenses Nursing Homes/Assisted Living/Board & 6900 Care/Other Eld. Care/ Coop/ Other 6900 Total Cost of Operations 6000T 953,399 526.16 847,008 623.26 968,459 534.47 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 1,037,399 572.52 910,008 669.62 1,052,459 580.83 Less Total Revenue 1,082,416 597.36 826,411 608.10 1,101,631 607.96 Net Cash Surplus (Deficiency) 45,017 24.84 (83,597) (61.51) 49,172 27.14 5/20/2014 1 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. (18 U.S.C. 1001, 1010, 1012; 31 U.S.C. 3729, 3802) Signature) PrvioIs editions are obsolete *HUD Approved Secondary Financing page 2 of 2 Only for Budget Projections. Date (mm/dd/yyyy) ref. Handbook 4350 1 form HUD-92547-A (8/2000)