Louisville Housing Authority Agenda and Packet 2012 03 13

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provision. This resolution requires us to pay back our payments received in 2004, 2005, & 2009 to the East Street Partnership and to fund it with the promissory note; loaning the additional gap to the East Street Partnership at a rate of 9 %. This funds the required level of operating reserves for East Street. Resolution 2012 -02: A Resolution for the purpose of approving a return of $16,404.00 of payments to the East Street Limited Partnership and a loan of $1.3,883 to the East Street Limited Partnership for the purpose of replenishing East Street Limited Partnership Operating Reserve. Walt made the motion to approve Resolution 2012 -02. Ernie seconded. Motion approved. Resolution 2012 -03: A Resolution for the Purpose of Approving the 2012 HUD Capital Fund Grant for the Public Housing Program of the Housing Authority of the City of Louisville. Kelly made the motion to approve Resolution 2012 -03. Walt seconded. Motion approved. Finance Report December 2011 Financials LHA. and Component Units Richard said when looking at the December numbers, we are looking at the total year to date revenues of $552,477 for LHA, expenses $462,247..Net operating income $90,230. Richard gave a detailed explanation of the financials as shown in the board, packet. Frank clarified the difference between deferred capital that you can afford to pay out of the reserves and deferred capital that that you can't. Depreciation is calculated on a schedule to account for actual depreciation and useful life of the buildings and assets. We try to annuallykeep up with deferred capital and maintenance expenditures; paying for them out of reserves and operating expenditures as much as possible. .Some portion of that gets carried forward in your capital plans and you budget for additional expenditures in the following year. The management agreements that we have with LHA, do not cover the asset management cornpnent beyond what you see with annual budgeting capital expenditures. Frank said that we will have to 'refinance Lydia with the expiration of the tax credit. After 15 years there will be a level of capital replacement that has to be done. January 2012 Financials LHA and Component Units Richard said that LHA,January revenues were $41,269, expenses $26,747, net operating income $14,522. Non operating expense items were •$11,246 and net income was $3,274. Richard gave a detailed .explanation of the financials as shown in the board packet. 2012 Audit Update Richard said that the audit is on schedule. The auditors would like to do an audit presentation at the April meeting. Shirley is working on the MD &A (Management discussion and analysis). Bonnie said if you have something you would like distributed to the city, funnel it through her and she will distribute it. 3