Louisville Housing Authority Agenda and Packet 2012 05 29

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February and March Financials Richard presented a summary page including a narrative of the numbers as they occurred in March. We focus on utilization, the occupancy rate that drives our revenue, and match that against our expenses. We then match that against a rolling year-to-date total. YTD is 5% down from the budget, due to a straight line budget. Within that budget is a rent increase that is going to be effective in April. March, total income $41,000, YTD income $123,000. In March administrative expenses were $2,000 higher than budget, due to an audit fee, an amount that hits one time. Aligning our budget to monthly for these one time large expenses would smooth that out. YTD net operating income was $40,000, compared to $27,000 in our budget. Lydia Morgan and Lincoln Street March occupancy is at 96.1%. Revenue in March is $400 lower than budget. YTD rental income is 3.14% under budget. YTD general income is $13,000 over budget, primarily due to reimbursement item that occurred in February that was used for exterior rehab. That $13,000 hits as revenue income for Lydia, which improves the YTD performance. $20,000 is left in the City account. Sunnyside occupancy is 93.2%. YTD expenses are $10,000 higher than budget due to the non-routine costs in February. The budget for non routine is not matching up to the line item. Our net operating income for March is $2,500 positive. YTD the net is -$5,000 compared to a budget of $5,700. The primary reason is operating performance and the non-routine item sitting without the associated budget line. Primarily this was damage to a unit. $13,000 for the sidewalk was transferred Willa said that we are 100% occupied at the moment. Discussion of the Louisville City Council meeting Frank discussed order of presentation for the meeting tonight. The only new item in the packet and por Heather said that tonightan opportunity for LHA to talk about where and to get some feedback from City Council about the questions they may have as this process moves forward. City Council will meet on May 15 for formal action, with an IGA, if they wish to proceed with LHAmove in that direction. Terri said that as a board, we have continuing questions on how we can expand our portfolio, what we can buy or build, and what is available for us financially for better loan rates. The portfolio analysis emphasizes that mof a bigger entity in order to accomplish the expansion of the portfolio. Frank will present the historical overview and a brief overview of how BCHA is structured. There are a lot of new counselors and new members on the board. In terms of explaining how we brought forward a larger entity with integrated service model might be helpful. has been going on for over 30 years. Frank said we hope it will be an improvement. There is a significant amount of unaddressed capital needs that must be addressed in the next 3 5 years. We will need to invest a much larger dollar amount into the properties than we are currently capable of doing. Right now there are about $2 million worth of unaddressed capital needs and upkeep to be handled in the 116 units. This decision has been moving forward for many years. The crossroads has been the financial imperative to refinance BCHA and LHA portfolio at the same time. 4