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Home My WebLink AboutHousing & Redevelopment Authority Packet 12-07-2023Housing and Redevelopment Authority 1 of 2 December 7, 2023 CITY OF PLYMOUTH AGENDA Regular Housing and Redevelopment Authority December 7, 2023, 7:00 PM 1. CALL TO ORDER 2. PUBLIC FORUM—Individuals may address the HRA about any item not contained on the regular agenda. A maximum of 15 minutes is allotted for the Forum. If the full 15 minutes are not needed for the Forum, the HRA will continue with the agenda. The HRA will take no official action on items discussed at the Forum, with the exception of referral to staff for future report. 3. APPROVE AGENDA —HRA members may add items to the agenda for discussion purposes or staff direction only. The HRA will not normally take official action on items added to the agenda. 4. CONSENT AGENDA —These items are considered to be routine and will be enacted by one motion. There will be no separate discussion of these items unless HRA member or citizen so requests, in which event the item will be removed from the Consent Agenda and placed elsewhere on the agenda. 4.1 HRA Minutes Housing Redevelopment Authority Minutes 10-26-2023.pdf 4.2 Accept Plymouth Towne Square monthly housing report and financials PTS BALANCE SHEET 10.2023.pdf PTS 12-MO P&L 10.2023.pdf PTS COMPARATIVE P&L 10.2023.pdf PTS P&L VARIANCE 10.2023.pdf PTS CASHFLOW 10.2023.pdf 4.3 Accept Vicksburg Crossing monthly housing report and financials VC - Balance Sheet - 10.2023.pdf VC - 12-Month P&L - 10.2023.pdf VC COMPARATIVE 10.2023.pdf VC P&L VARIANCE 10.2023.pdf VC - Cashflow - 10.2023.pdf 5. PUBLIC HEARINGS 6. NEW BUSINESS 6.1 HRA 2024 Budget 2024 Housing Budgets.pdf 1 Housing and Redevelopment Authority 2 of 2 December 7, 2023 HRA Reserves 2023 - Updated 10-18-23.pdf HRA Levy History.pdf 6.2 Vicksburg Crossing 2024 Budget Housing & Redevelopment Authority resolution.pdf VC Budget Assumptions 2024.pdf VC BUDGET Comparison 2024 .pdf VC Budget 2024.pdf 6.3 Plymouth Towne Square 2024 Budget Housing & Redevelopment Authority Packet PTS Resolution.pdf PTS Budget Assumptions 2024.pdf PTS 2024 Budget Comparison.pdf PTS 2024 Budget.pdf 6.4 Discussion and Recommendations for an Inclusionary Housing Policy Draft Inclusionary Housing Policy (12-7-2023).pdf 7. UPDATES 7.1 Staff Updates HRA Updates (December 2023) 8. ADJOURNMENT 2 Regular Housing and Redevelopment Authority December 7, 2023 Agenda Number:4.1 To:Dave Callister, City Manager Prepared by:Steven Schmidt, Housing Manager Reviewed by: Item:HRA Minutes 1. Action Requested: Staff recommends approval of the October 26, 2023 HRA Minutes. 2. Background: The October 26, 2023 minutes are attached. 3. Budget Impact: N/A 4. Attachments: Housing Redevelopment Authority Minutes 10-26-2023.pdf 3 DRAFT MINUTES PLYMOUTH HOUSING AND REDEVELOPMENT AUTHORITY OCTOBER 26, 2023 MEMBERS PRESENT: Chair Michelle Soderberg, Commissioners James Williams, Ronald Kelner, Joel Spoonheim and Kim Vohs ABSENT: Commissioner Wayne Peterson STAFF PRESENT: HRA Executive Director Grant Fernelius, Housing Manager Steven Schmidt, City Attorney Soren Mattick, and Permit Technician Michelle Bast OTHERS PRESENT: Mayor Jeffry Wosje 1. CALL TO ORDER Chair Soderberg called the Plymouth Housing and Redevelopment Authority meeting to order at 7:01 p.m. 2. PUBLIC FORUM Chair Soderberg opened and closed the Public Forum as there was no one present to speak. 3. APPROVE AGENDA MOTION by Commissioner Williams, seconded by Commissioner Kelner to approve the Agenda. Vote. 4 Ayes. MOTION passed unanimously. 4. CONSENT AGENDA 4.1. Approved minutes from September 28, 2023. Commissioner Vohs arrived. MOTION by Commissioner Williams, seconded by Commissioner Spoonheim to approve the Consent Agenda. Vote. 5 Ayes. MOTION passed unanimously. 5. PUBLIC HEARINGS No public hearings. 6. NEW BUSINESS 6.1. Discussion and Recommendations for an Inclusionary Housing Policy HRA Executive Director Fernelius gave an overview of the staff report. 4 Draft Minutes Plymouth Housing and Redevelopment Authority October 26, 2023 Page 2 Commissioner Williams stated a redline version will be helpful to track the changes. He noted there are some typos and grammatical edits. He stated consistency is needed throughout the document related to units. He did not believe that single family homes were to be included but noted a portion of the document that relates to single family dwellings. HRA Executive Director Fernelius replied this applies to new developments creating at least ten dwelling units that request city financing and that would include single family homes. Commissioner Williams provided some grammatical suggestions. Chair Soderberg directed the commission submit grammatic changes to staff via email. Commissioner Williams referenced the discretionary triggers and asked why some of those were removed when most communities surrounding Plymouth have that type of trigger. HRA Executive Director Fernelius replied this was a topic discussed with the City Attorney and while he understands what the commission would like to do, it is the responsibility of staff to take into consideration potential legal issues. He stated that those discretionary triggers were then edited based on the legal guidance received. Commissioner Vohs asked staff to review the changes that were made as a result of the legal review. HRA Executive Director Fernelius replied most of the feedback was related to those discretionary triggers. City Attorney Mattick replied he has worked on other inclusionary housing policies and is aware of the policies adopted by other communities. He said the devil is in the detail on those policies. He urged caution and provided more information on authority. He commented the city is using a policy to influence the city code as it relates to zoning and provided additional details on the authority given through statute 462.357 related to zoning. He referenced Bloomington and the additional work that has been done by that community through a study, which is updated annually, as well as incentives that are provided; those are absent in the Plymouth policy. He did not see an issue with having a trigger when city financing is requested, but did have an issue with several of the discretionary triggers outside of the PUD. He stated this policy reads as more of a requirement whereas some other communities use their policy as a guiding document. Commissioner Vohs asked if the City Attorney would recommend only using the PUD as the discretionary trigger. City Attorney Mattick confirmed that he would not advise using zoning changes or a comprehensive plan amendment as a trigger. Commissioner Vohs asked if the reason for that recommendation is because it is untested, noting that four other communities have those types of triggers. 5 Draft Minutes Plymouth Housing and Redevelopment Authority October 26, 2023 Page 3 City Attorney Mattick replied that the policies or ordinance adopted by other communities are not the same as this city/policy. He stated his advice is not based on whether something has been challenged, noting that his perspective goes back to the initial comment on where the city receives authority to do something. He also stated, from his perspective, there needs to be statutory mention of how to handle zoning type decisions; he could not find that in the statute provisions for the city zoning authority. Commissioner Vohs noted three communities which include the zoning and comprehensive plan amendment triggers and asked if those cities are then open to challenge based on those triggers. City Attorney Mattick replied that Bloomington has an ordinance while others are policies. He stated the policies are not mandated by those other communities and are essentially a trigger for a discussion. Commissioner Williams asked if the City Attorney could speak with the City Attorneys for the other communities to gain insight on the pushback that they may or may not have received. City Attorney Mattick replied that he could respond on four of the five communities listed, noting he has spoken with the Bloomington City Attorney today and previous to today. He noted that community did a comprehensive study before implementing the policy and they went forward in a manner different than this. He stated he spoke with the Minnetonka City Attorney today who relayed that is a policy with limited enforceability and therefore it is more a suggestion. He said he represents St. Louis Park and his colleague in the office next to his represents Edina. He said he had not yet spoken with the Golden Valley City Attorney. Commissioner Spoonheim commented his understanding is that the comprehensive plan has bearance on zoning decisions and the expectation of the zoning code is not to incorporate every policy idea as stated within the plan. He was confused at the suggestion that a policy, which clarifies the comprehensive plan, would create an issue with discretion. City Attorney Mattick replied there are specific statutes related to the mandate for the city to adopt a comprehensive plan and that zoning must be updated to implement that plan. He stated the city is to then use its zoning ordinance to provide more clarification on implementation, while the comprehensive plan may include more aspirational elements. He said this policy reads similar to performance standards. His concern is that this would be using a policy which has not been codified as an ordinance and there would be no link to the zoning standards as to why this is being required. He stated that is a legal concern that he would have with this policy as it is. Commissioner Spoonheim commented throughout his tracking over the past two years he has not seen that specific outcome debated. He does not feel this should be an optional guiding document as the previous discussions were clear that this would be required. He stated they were also clear in the last discussion that there should be variance/exemption options. He believed some of the discretionary language could be tightened up. He said that based on the comments of legal counsel, he feels the HRA would be well served to have the City Attorney redline the document and bring it back to the HRA, rather 6 Draft Minutes Plymouth Housing and Redevelopment Authority October 26, 2023 Page 4 than having that edit occur before this goes to council as that could be a vastly different document. He asked if the City Attorney would have a number of other suggestions if he had time to review the document. City Attorney Mattick confirmed he would have a number of other suggestions. He stated his first review was just a broad review related to authority. Commissioner Spoonheim commented he would prefer to follow that path, of having the legal review and then reviewing the document prior to submission to the council. Chair Soderberg commented that she would still like to get this on the council schedule as this has been going on for two years and the council will most likely have edits as well. Mayor Wosje stated he would recommend a well vetted document before bringing it to the council, rather than rushing this. HRA Executive Director Fernelius commented that he would need to speak with the City Manager about the council schedule. He agreed the first review would be done through study session where policy direction could be provided by the council along with any questions they may have. He did not anticipate that would happen this year and believes 2024 would be more likely. Mayor Wosje said the second meeting in February would be the earliest meeting this could appear on an agenda. Chair Soderberg asked if this item could be placed on the agenda for that meeting without having the completed document at this time. Mayor Wosje commented that would be a decision of the City Manager. Commissioner Vohs agreed that this document should be tightened up with the input from legal counsel before presenting this to the city council. Commissioner Spoonheim noted the written comments that were received from the public for this meeting. He asked if the new developments over the past three years were done through PUD. City Attorney Soren Mattick replied that he did not recall but staff could look into that. Commissioner Spoonheim commented that is a huge bearing, as he believed those large developments were done through rezoning rather than PUD and therefore many developments will continue to move forward without the requirement for affordable housing. He stated he would like to find a path that falls within the law and also achieves the goals of the comprehensive plan. MOTION by Commissioner Williams, seconded by Commissioner Kelner, to request that the City 7 Draft Minutes Plymouth Housing and Redevelopment Authority October 26, 2023 Page 5 Attorney review this document along with the input received thus far and provide a redline version to the commission to continue to review. Further discussion: Chair Soderberg said that while legal counsel is doing its review, she would also like staff to consider some of the comments that were received from the public. Additionally, the commission will send in editorial/wordsmithing comments. She stated that would allow for all of this input to be evaluated and incorporated before the next review. Commissioner Vohs stated he would like to have some sense of the percentage of projects that would be missed by only having the PUD trigger. HRA Executive Director Fernelius confirmed he will research for that information. Vote. 5 Ayes. MOTION passed unanimously. Commissioner Kelner asked if there would be benefit to doing this through ordinance versus this policy. City Attorney Mattick replied there are different options. He stated part of his review will be to create multiple paths forward, whether that is through policy or ordinance. 7. UPDATES HRA Executive Director Fernelius provided his written report. Commissioner Williams asked if this information could be provided in an ongoing basis prior to the meetings. Chair Soderberg confirmed that this would be provided at each meeting. HRA Executive Director Fernelius commented that there will not be a November meeting and highlighted the items that would be on the December agenda. Commissioner Vohs noted an article that he recently read which proposed to increase the HRA levy increase. He commented that is something that he should have known about prior to reading about it in the newspaper. Chair Soderberg said typically the HRA would have that information earlier, recognizing the impacts of being short staffed. She noted historically the HRA levy increases in proportion to the general fund levy. Commissioner Spoonheim recapped that the budget would be on the December agenda along with the revised policy. He asked if the group would like to begin discussion on the Strategic Plan in a study session prior to the regular meeting. 8 Draft Minutes Plymouth Housing and Redevelopment Authority October 26, 2023 Page 6 Mayor Wosje noted the council will be interviewing candidates for boards and commissions in December and the new person would join the HRA in January. Chair Soderberg suggested that the group wait until January to begin discussion on the Strategic Plan so that the new member could be a part of that. 8. ADJOURNMENT MOTION by Chair Soderberg, with no objection, to adjourn the meeting at 8:04 p.m. 9 Regular Housing and Redevelopment Authority December 7, 2023 Agenda Number:4.2 To:Dave Callister, City Manager Prepared by:Steven Schmidt, Housing Manager Reviewed by:Steven Schmidt, Housing Manager Item:Accept Plymouth Towne Square monthly housing report and financials 1. Action Requested: Accept attached Plymouth Towne Square monthly housing report and financials. 2. Background: The Plymouth HRA contracts with Grace Management, Inc. to manage the Plymouth Towne Square apartments. The attached report and financial statements cover the most recent reporting period (October 2023 and YTD). 3. Budget Impact: N/A 4. Attachments: PTS BALANCE SHEET 10.2023.pdf PTS 12-MO P&L 10.2023.pdf PTS COMPARATIVE P&L 10.2023.pdf PTS P&L VARIANCE 10.2023.pdf PTS CASHFLOW 10.2023.pdf 10 Total ASSETS CURRENT ASSETS US BANK OPER ACCT US BANK SEC DEP ACCT INVESTMENTS - WORKING CAPITAL FUND INVESTMENTS - NEW DEBT SERVICE ACCOUNTS REC-TENANTS INTEREST RECEIVABLE PREPAID PROPERTY INSURANCE PREPAID OTHER TOTAL CURRENT ASSETS 1,459,624 FIXED ASSETS LAND SITE IMPROVEMENTS BUILDING BUILDING IMPROVEMENTS FURN, FIXT & EQUIP-GENERAL CONSTRUCTION IN PROGRESS FURNITURE & FIXTURES - HOUSEKEEPING COMPUTERS/OFFICE EQUIPMENT LEASE ASSET ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS 2,918,020 NON-CURRENT ASSETS TOTAL ASSETS 4,377,644 8,696 13,060 3,608 (5,220,481) 459,247 211,914 5,767,619 1,195,121 471,772 7,465 692,906 246,064 8,606 (830) 25,702 6,234 Balance Sheet PLYMOUTH TOWNE SQUARE As Of October 31, 2023 Ending Balance 407,444 73,498 11 Total Balance Sheet PLYMOUTH TOWNE SQUARE As Of October 31, 2023 Ending Balance LIABILITIES CURRENT LIABILITIES ACCOUNTS PAYABLE-TRADE 401K WITHHOLDINGS PAYABLE ADVANCES FROM CITY ACCRUED PAYROLL ACCRUED COMPENSATED BALANCES ACCRUED INTEREST ACCRUED REAL ESTATE TAXES LEASES PAYABLE -SHORT TERM NOTES PAYABLE-SERIES 2021A -ST ACCRUED OTHER TOTAL CURRENT LIABILITIES 65,062 LONG-TERM LIABILITIES SECURITY DEPOSITS NOTES PAYABLE-SERIES 2021A -LT 402,235 TOTAL LIABILITIES 467,297 EQUITY RETAINED EARNINGS RSRVD FOR DS RETAINED EARNINGS NET INVESTMENT IN CAPITAL ASSETS TOTAL EQUITY 3,713,999 CURRENT YEAR INCOME/(LOSS)196,347 TOTAL LIABILITIES & EQUITY 4,377,644 3,089,743 328,000 4,620 71,235 331,000 49,128 575,128 (328,000) 3,337 4,136 828 30,830 516 16,364 4,433 12 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Dec 31, 2022 Feb 28, 2023 Mar 31, 2023 Apr 30, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Total INCOME APARTMENT RENTAL REVENUE 64,580 66,035 64,901 64,395 65,505 65,775 65,324 64,566 62,847 63,001 774,897 HRA INDIVIDUAL 21,663 19,583 19,583 19,583 19,583 19,583 19,583 19,583 19,583 19,583 239,160 GARAGE RENT 3,720 4,040 4,060 3,990 3,995 3,970 4,010 4,015 3,955 4,020 47,498 GUEST ROOM REVENUE 130 65 0 165 0 675 65 130 0 0 1,230 LAUNDRY REVENUE 903 901 1,358 1,248 185 608 1,271 696 2,188 257 11,751 APPLICATION FEE REVENUE 0 0 35 70 0 0 0 35 105 35 315 TRANSFER FEE REVENUE 0 0 0 0 0 0 0 0 500 (500)0 INVESTMENT INCOME (17,332)424 425 427 428 10,852 (1,741)428 427 (362)(4,930) CONTRIBUTED CAPITAL REVENUE 0 0 0 0 0 0 0 0 0 0 0 0 MISCELLANEOUS REVENUE 37 30 333 100 456 1,445 79 376 0 0 3,002 TOTAL INCOME 73,701 91,077 90,695 89,978 90,152 102,909 88,592 89,830 89,605 86,034 1,072,922 EXPENSES ADMINISTRATION MANAGER SALARIES/WAGES 6,246 4,946 5,476 5,299 5,476 5,299 5,476 5,476 5,299 5,476 65,040 PAYROLL TAXES 885 833 1,091 754 729 727 724 717 1,014 788 9,316 HEALTH INSURANCE 1,683 (268)1,876 2,196 1,355 581 1,092 1,035 1,387 2,431 15,206 WORKERS COMP INSURANCE 3 137 206 137 137 137 137 137 206 137 1,782 MAINTENANCE SALARIES/WAGES 5,945 5,241 5,888 3,940 4,953 4,712 4,917 4,819 4,797 4,725 59,515 EMPLOYEE COSTS 80 80 120 80 80 80 80 80 80 80 1,000 SEMINAR/TRAINING 0 0 0 0 35 0 0 0 0 0 35 DATA PROCESSING 0 0 0 0 0 0 52 31 31 32 146 BANK FEES 126 110 103 107 117 102 119 111 125 106 1,336 DUES, SUBS & MEMBERSHIPS 0 0 0 0 0 0 0 0 0 0 60 LICENSE & PERMITS 0 0 0 0 0 165 694 200 0 40 1,129 PRINTING 0 0 0 0 0 0 0 143 0 0 143 MANAGEMENT FEES 4,985 5,483 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 62,310 PROFESSIONAL FEES 0 0 0 0 25 0 0 0 1,455 23 1,526 TELEPHONE EXPENSE 429 382 421 437 420 411 414 418 414 418 4,965 EQUIPMENT LEASE/REPAIR (2,646)876 773 769 765 579 469 1,620 451 450 4,830 OFFICE SUPPLIES 344 53 0 184 0 41 0 161 49 85 1,413 TOTAL ADMIN EXPENSES 18,081 17,874 21,188 19,138 19,325 18,070 19,408 20,181 20,543 20,025 229,753 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 633 147 262 117 48 67 221 639 119 165 4,846 TOTAL LIFE ENRICHMENT EXPENSES 633 147 262 117 48 67 221 639 119 165 4,846 Twelve Month Profit and Loss PLYMOUTH TOWNE SQUARE For Year 2023 Period End Period End Nov 30, 2022 Jan 31, 2023 63,282 64,686 21,667 19,583 3,693 4,030 0 0 1,263 872 0 35 0 0 668 425 0 146 0 90,572 89,776 5,093 5,476 656 398 1,922 (82) 271 137 4,639 4,938 80 80 0 0 0 0 101 108 0 60 30 0 0 0 4,985 4,985 0 23 400 400 364 360 193 302 18,736 17,186 2,069 360 2,069 360 13 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Dec 31, 2022 Feb 28, 2023 Mar 31, 2023 Apr 30, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Total Twelve Month Profit and Loss PLYMOUTH TOWNE SQUARE For Year 2023 Period End Period End Nov 30, 2022 Jan 31, 2023 HOUSEKEEPING CONTRACT LABOR 1,470 1,470 1,470 1,470 1,470 1,470 1,470 1,620 1,470 1,470 17,733 CLEANING SUPPLIES 573 33 202 0 0 36 4 363 57 0 1,468 TOTAL HOUSEKEEPING EXPENSES 2,043 1,503 1,672 1,470 1,470 1,506 1,474 1,983 1,527 1,470 19,201 BUILDING & GROUNDS CONTRACT LABOR 586 193 346 411 193 700 578 324 193 206 4,331 CABLE TV EXPENSE 91 110 110 110 103 97 103 110 103 103 1,233 UTILITIES - ELECTRICITY 1,759 1,477 1,772 1,580 2,287 2,352 2,449 2,632 2,547 2,715 25,284 UTILITIES - GAS 4,851 6,776 5,798 1,613 3,099 797 824 528 991 991 34,791 UTILITIES - WATER/SEWER 1,853 2,076 2,013 1,774 1,845 2,149 2,322 2,587 2,219 2,219 25,051 WATER SOFTENING SERVICE 428 232 369 784 253 340 439 346 0 180 4,484 DOORS, KEYS & WINDOWS 390 0 0 0 0 0 0 0 0 9 399 FIRE SYSTEM SERVICE 210 210 637 210 210 2,051 2,271 210 210 210 6,844 LAWN SERVICE/LANDSCAP/SNOW RMVL 11,860 5,135 1,110 1,745 1,465 2,583 1,570 8,969 1,460 1,340 45,322 PEST CONTROL 0 1,243 0 0 141 141 0 0 201 0 4,156 TRASH REMOVAL 1,823 1,928 2,053 1,927 2,254 2,225 1,924 1,953 1,923 1,922 23,952 UNIT TURNOVER REPAIRS 2,370 0 0 6,512 0 0 0 3,188 3,740 2,010 23,368 ELEVATOR-REPAIRS & MAINT 713 713 4,363 713 713 713 713 713 713 738 12,231 REPAIRS & MAINTENANCE 1,841 1,032 7,765 5,208 15,303 710 1,441 1,791 1,798 3,933 42,016 BUILDING & GROUNDS SUPPLIES 798 532 744 170 1,149 525 789 117 182 527 8,618 HVAC - REPAIRS & MAINTENANCE 1,573 3,318 543 299 975 315 873 299 299 910 10,393 TOTAL BUILDING & GROUNDS 31,146 24,974 27,622 23,056 29,990 15,698 16,295 23,768 16,579 18,012 272,474 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,987 3,987 3,987 3,987 3,987 3,607 3,860 3,755 3,755 3,755 46,642 PAYMENT IN LIEU OF PROPERTY TAX 4,270 3,083 3,083 3,083 3,083 3,083 3,083 3,083 3,083 3,083 38,133 TOTAL OTHER OPERATING EXPENSES 8,257 7,070 7,070 7,070 7,070 6,690 6,943 6,838 6,838 6,838 84,775 TOTAL OPERATING EXPENSES 60,161 51,568 57,814 50,851 57,903 42,031 44,341 53,408 45,606 46,509 611,048 NET OPERATING INCOME / ( L0SS)13,540 39,509 32,881 39,127 32,248 60,878 44,251 36,422 43,999 39,525 461,873 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 29,021 16,325 16,325 16,325 16,325 16,325 16,325 16,325 16,325 16,325 208,596 RESERVE/REPLACE CAPITAL EXPENSE (12,769)24,375 0 1,200 0 6,547 0 0 7,200 1,715 29,690 INTEREST EXPENSE 2,639 0 166 0 0 166 0 0 159 0 3,130 TOTAL DEPREC, INTEREST & OTHER 18,891 40,700 16,491 17,525 16,325 23,038 16,325 16,325 23,684 18,040 241,417 NET INCOME / (LOSS)(5,351)(1,191)16,390 21,602 15,923 37,840 27,926 20,097 20,316 21,485 220,457 1,413 1,470 77 123 1,490 1,593 411 193 91 98 1,848 1,865 3,286 5,238 2,045 1,949 534 580 0 0 210 210 1,100 6,985 0 2,430 1,687 2,331 0 5,548 713 713 625 570 1,165 1,921 336 654 14,050 31,284 3,987 3,987 3,033 3,083 7,020 7,070 43,364 57,493 47,208 32,284 16,325 16,325 17,748 16,325 29,461 15,959 1,423 0 0 0 14 MTD Actual Budget Last Year YTD Actual Budget Last Year 63,001 64,800 62,981 648,000 19,583 19,583 21,667 195,830 4,020 3,840 3,628 38,400 0 0 0 325 257 1,050 545 10,500 35 35 35 525 (500)0 500 500 (362)417 (42,182)4,170 0 100 242 1,000 86,034 89,825 47,416 899,250 5,476 5,358 5,263 53,580 788 807 682 8,070 2,431 2,060 1,922 20,600 137 155 271 1,550 4,725 4,723 5,041 47,230 80 90 80 945 0 0 0 200 0 0 0 0 32 0 0 0 106 105 124 1,050 0 0 0 60 40 694 694 894 0 15 0 150 0 0 0 150 0 15 0 150 5,234 5,234 4,985 52,340 23 583 1,088 5,830 418 400 400 4,000 450 800 2,015 8,000 85 90 80 900 20,025 21,129 22,645 205,699 165 1,000 889 3,150 165 1,000 889 3,150 TOTAL LIFE ENRICHMENT EXPENSES 2,144 2,566 TOTAL ADMIN EXPENSES 192,936 196,555 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 2,144 2,566 EQUIPMENT LEASE/REPAIR 7,112 10,302 OFFICE SUPPLIES 875 374 PROFESSIONAL FEES 1,526 1,157 TELEPHONE EXPENSE 4,136 3,857 PRINTING 143 117 MANAGEMENT FEES 52,340 49,850 MILEAGE REIMBURSEMENT 0 0 POSTAGE/OVERNIGHT EXPRESS 0 66 DUES, SUBS & MEMBERSHIPS 60 60 LICENSE & PERMITS 1,099 1,114 DATA PROCESSING 146 0 BANK FEES 1,109 1,115 SEMINAR/TRAINING 35 112 CLASSIFIED ADVERTISING 0 330 MAINTENANCE SALARIES/WAGES 48,930 46,736 EMPLOYEE COSTS 840 880 HEALTH INSURANCE 11,601 18,976 WORKERS COMP INSURANCE 1,508 2,613 EXPENSES ADMINISTRATION MANAGER SALARIES/WAGES 53,701 51,331 PAYROLL TAXES 7,775 7,564 MISCELLANEOUS REVENUE 2,965 523 TOTAL INCOME 908,648 852,784 TRANSFER FEE REVENUE 0 500 INVESTMENT INCOME 11,733 (36,169) LAUNDRY REVENUE 9,585 9,921 APPLICATION FEE REVENUE 315 245 GARAGE RENT 40,085 36,045 GUEST ROOM REVENUE 1,100 260 APARTMENT RENTAL REVENUE 647,035 624,789 HRA INDIVIDUAL 195,830 216,670 Comparative Profit and Loss PLYMOUTH TOWNE SQUARE Through October 31, 2023 Description INCOME 15 MTD Actual Budget Last Year YTD Actual Budget Last Year Comparative Profit and Loss PLYMOUTH TOWNE SQUARE Through October 31, 2023 Description 0 10 0 100 0 10 0 100 1,470 1,535 1,413 15,350 0 185 0 1,850 1,470 1,720 1,413 17,200 206 600 586 6,000 103 93 91 967 2,715 1,850 2,280 21,550 991 3,000 3,394 28,300 2,219 2,100 2,322 21,700 180 460 620 4,600 9 250 0 2,500 210 625 369 6,250 1,340 2,225 1,715 25,925 0 0 152 625 1,922 1,835 2,438 18,350 2,010 2,667 6,871 26,670 738 775 713 7,750 3,933 3,000 693 30,000 527 1,850 209 18,500 910 1,350 282 13,500 0 1,000 0 10,000 18,012 23,680 22,736 243,187 3,755 3,440 3,987 37,045 3,083 3,084 3,033 30,832 6,838 6,524 7,020 67,877 46,509 54,063 54,703 537,213 39,525 35,762 (7,287)362,037 16,325 16,325 16,325 163,250 0 (527)0 (5,270) 1,715 2,000 13,660 200,860 0 907 3,295 9,070 18,040 18,705 33,280 367,910 21,485 17,057 (40,567)(5,873) TOTAL DEPREC, INTEREST & OTHER 204,778 202,666 NET INCOME / (LOSS)196,347 134,801 RESERVE/REPLACE CAPITAL EXPENSE 41,037 35,631 INTEREST EXPENSE 491 3,785 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 163,250 163,250 AMORTIZATION EXPENSE 0 0 TOTAL OPERATING EXPENSES 507,523 515,317 NET OPERATING INCOME / ( L0SS)401,125 337,467 PAYMENT IN LIEU OF PROPERTY TAX 30,830 30,330 TOTAL OTHER OPERATING EXPENSES 69,497 69,183 TOTAL BUILDING & GROUNDS 227,277 231,771 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 38,667 38,853 HVAC - REPAIRS & MAINTENANCE 8,484 7,519 MISCELLANEOUS B & G EXPENSES 0 0 REPAIRS & MAINTENANCE 39,550 30,006 BUILDING & GROUNDS SUPPLIES 6,656 14,868 UNIT TURNOVER REPAIRS 20,998 39,171 ELEVATOR-REPAIRS & MAINT 10,805 9,530 PEST CONTROL 4,156 2,713 TRASH REMOVAL 20,442 19,698 FIRE SYSTEM SERVICE 6,425 4,072 LAWN SERVICE/LANDSCAP/SNOW RMVL 32,362 18,710 WATER SOFTENING SERVICE 3,522 4,337 DOORS, KEYS & WINDOWS 9 2,789 UTILITIES - GAS 26,654 29,215 UTILITIES - WATER/SEWER 21,153 20,928 6,138 CABLE TV EXPENSE 1,050 912 UTILITIES - ELECTRICITY 21,677 21,167 BUILDING & GROUNDS CONTRACT LABOR 3,334 TOTAL HOUSEKEEPING EXPENSES 15,668 15,242 CONTRACT LABOR 14,850 14,287 CLEANING SUPPLIES 818 955 TOTAL MARKETING EXPENSES 0 0 HOUSEKEEPING MARKETING ADVERTISING 0 0 16 MTD Actual Budget Var.YTD Actual Budget Var.Year Budget INCOME APARTMENT RENTAL REVENUE 63,001 64,800 647,035 648,000 (965)777,600 HRA INDIVIDUAL 19,583 19,583 195,830 195,830 0 235,000 GARAGE RENT 4,020 3,840 40,085 38,400 1,685 46,080 GUEST ROOM REVENUE 0 0 1,100 325 775 390 LAUNDRY REVENUE 257 1,050 9,585 10,500 (915)12,600 APPLICATION FEE REVENUE 35 35 315 525 (210)630 TRANSFER FEE REVENUE (500)0 0 500 (500)500 INVESTMENT INCOME (362)417 11,733 4,170 7,563 5,000 MISCELLANEOUS REVENUE 0 100 2,965 1,000 1,965 1,200 TOTAL INCOME 86,034 89,825 908,648 899,250 9,398 1,079,000 EXPENSES ADMINISTRATION MANAGER SALARIES/WAGES 5,476 5,358 53,701 53,580 (121)64,300 PAYROLL TAXES 788 807 7,775 8,070 295 9,678 HEALTH INSURANCE 2,431 2,060 11,601 20,600 8,999 24,721 WORKERS COMP INSURANCE 137 155 1,508 1,550 42 1,860 MAINTENANCE SALARIES/WAGES 4,725 4,723 48,930 47,230 (1,700)56,680 EMPLOYEE COSTS 80 90 840 945 105 1,170 SEMINAR/TRAINING 0 0 35 200 165 200 DATA PROCESSING 32 0 146 0 (146)0 BANK FEES 106 105 1,109 1,050 (59)1,260 DUES, SUBS & MEMBERSHIPS 0 0 60 60 0 60 LICENSE & PERMITS 40 694 1,099 894 (205)954 MILEAGE REIMBURSEMENT 0 15 0 150 150 180 POSTAGE/OVERNIGHT EXPRESS 0 0 0 150 150 150 PRINTING 0 15 143 150 7 180 MANAGEMENT FEES 5,234 5,234 52,340 52,340 0 62,811 PROFESSIONAL FEES 23 583 1,526 5,830 4,304 7,000 TELEPHONE EXPENSE 418 400 4,136 4,000 (136)4,800 EQUIPMENT LEASE/REPAIR 450 800 7,112 8,000 888 9,600 OFFICE SUPPLIES 85 90 875 900 25 1,080 TOTAL ADMIN EXPENSES 20,025 21,129 192,936 205,699 12,763 246,684 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 165 1,000 2,144 3,150 1,006 5,300 165 1,000 2,144 3,150 1,006 5,300 TOTAL LIFE ENRICHMENT EXPENSES 835 5 1,104 835 560 (18) 350 0 15 0 0 654 15 0 (32) (1) 18 (2) 10 (118) 19 (371) (779) (100) (3,791) (793) 0 (500) 0 180 0 Profit and Loss Variance PLYMOUTH TOWNE SQUARE Through October 31, 2023 (1,799) 17 MTD Actual Budget Var.YTD Actual Budget Var.Year Budget Profit and Loss Variance PLYMOUTH TOWNE SQUARE Through October 31, 2023 MARKETING ADVERTISING 0 10 0 100 100 120 TOTAL MARKETING EXPENSES 0 10 0 100 100 120 HOUSEKEEPING CONTRACT LABOR 1,470 1,535 14,850 15,350 500 18,420 CLEANING SUPPLIES 0 185 818 1,850 1,032 2,220 1,470 1,720 15,668 17,200 1,532 20,640 BUILDING & GROUNDS CONTRACT LABOR 206 600 3,334 6,000 2,666 7,200 CABLE TV EXPENSE 103 93 1,050 967 (83)1,153 UTILITIES - ELECTRICITY 2,715 1,850 21,677 21,550 (127)25,250 UTILITIES - GAS 991 3,000 26,654 28,300 1,646 36,300 UTILITIES - WATER/SEWER 2,219 2,100 21,153 21,700 547 25,500 WATER SOFTENING SERVICE 180 460 3,522 4,600 1,078 5,520 DOORS, KEYS & WINDOWS 9 250 9 2,500 2,491 3,000 FIRE SYSTEM SERVICE 210 625 6,425 6,250 (175)7,500 LAWN SERVICE/LANDSCAP/SNOW RMVL 1,340 2,225 32,362 25,925 (6,437)30,800 PEST CONTROL 0 0 4,156 625 (3,531)790 TRASH REMOVAL 1,922 1,835 20,442 18,350 (2,092)22,020 UNIT TURNOVER REPAIRS 2,010 2,667 20,998 26,670 5,672 32,000 ELEVATOR-REPAIRS & MAINT 738 775 10,805 7,750 (3,055)9,300 REPAIRS & MAINTENANCE 3,933 3,000 39,550 30,000 (9,550)36,000 BUILDING & GROUNDS SUPPLIES 527 1,850 6,656 18,500 11,844 22,200 HVAC - REPAIRS & MAINTENANCE 910 1,350 8,484 13,500 5,016 16,200 MISCELLANEOUS B & G EXPENSES 0 1,000 0 10,000 10,000 12,000 TOTAL BUILDING & GROUNDS 18,012 23,680 227,277 243,187 15,910 292,733 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,755 3,440 38,667 37,045 (1,622)43,926 PAYMENT IN LIEU OF PROPERTY TAX 3,083 3,084 30,830 30,832 2 37,000 6,838 6,524 69,497 67,877 (1,620)80,926 TOTAL OPERATING EXPENSES 46,509 54,063 507,523 537,213 29,690 646,403 NET OPERATING INCOME / ( L0SS)39,525 35,762 401,125 362,037 39,088 432,597 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 16,325 16,325 163,250 163,250 0 195,900 AMORTIZATION EXPENSE 0 (527)0 (5,270)(5,270)(6,320) RESERVE/REPLACE CAPITAL EXPENSE 1,715 2,000 41,037 200,860 159,823 204,860 INTEREST EXPENSE 0 907 491 9,070 8,579 10,888 18,040 18,705 204,778 367,910 163,132 405,328 NET INCOME / (LOSS)21,485 17,057 196,347 (5,873)202,220 27,269 TOTAL DEPREC, INTEREST & OTHER 665 4,428 (527) 285 907 7,554 3,763 0 1 TOTAL OTHER OPERATING EXPENSES (314) 1,000 5,668 (315) (933) 1,323 440 (87) 657 37 0 241 415 885 2,009 (119) 280 394 (10) (865) 65 185 TOTAL HOUSEKEEPING EXPENSES 250 10 10 18 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Feb 28, 2023 Apr 30, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Nov 30, 2023 Dec 31, 2023 Year To Date CASHFLOW RECONCILIATION: NET INCOME / (LOSS)(1,191)21,602 15,923 37,840 27,926 20,097 20,316 21,485 0 0 196,347 ADJUSTMENTS TO NET CASHFLOW: DEPRECIATION & AMORTIZATION 16,325 16,325 16,325 16,325 16,325 16,325 16,325 16,325 0 0 163,250 (INCR) / DECR IN A/R 1,510 (1,891)(1,649)6,431 122 565 (3,525)47 0 0 1,269 (INCR) / DECR IN ESCROW 0 0 0 0 0 0 0 0 0 0 0 (INCR) / DECR IN PREPAID EXP 4,700 14 450 (33,621)2,931 237 7,209 3,989 0 0 (10,323) (INCR)/DECR IN OTHER ASSETS (19,583)(19,583)(19,583)(36,663)(18,661)(19,583)(19,583)(20,041)0 0 (212,446) (INCR) / DECR IN OTHER ASSETS 0 0 0 0 0 0 0 0 0 0 0 INCR /( DECR) IN ACCTS PAYABLE (16,701)3,399 (3,763)47,011 (49,655)9,185 2,724 5,035 0 0 (7,903) INCR /( DECR) IN ACCRD LIAB 13,038 (3,104)9,413 (4,132)13,464 (7,067)6,043 (262)0 0 (5,017) TOTAL ADJUSTMENTS (711)(4,840)1,194 (4,649)(35,474)(338)9,192 5,093 0 0 (71,171) NET OPERATING CASHFLOW:(1,901)16,762 17,117 33,191 (7,548)19,758 29,508 26,578 0 0 125,176 LESS CAPITAL EXPENDITURES: LAND 0 0 0 0 0 0 0 0 0 0 0 SITE IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 BUILDING 0 0 0 0 0 0 0 0 0 0 0 BUILDING IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 FURN, FIXT & EQUIP-GENERAL 0 0 0 0 0 0 0 0 0 0 0 CONSTRUCTION IN PROGRESS 0 0 0 0 0 0 0 0 0 0 0 FURNITURE & FIXTURES - HOUSEKEEPING 0 0 0 0 0 0 0 0 0 0 0 COMPUTERS/OFFICE EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 APARTMENT IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 VEHICLES 0 0 0 0 0 0 0 0 0 0 0 SIGNAGE 0 0 0 0 0 0 0 0 0 0 0 SMALL EQUIPMENT/FURNISHINGS 0 0 0 0 0 0 0 0 0 0 0 LEASE ASSET 0 0 0 0 0 0 0 0 0 0 0 PRINCIPAL PYMTS ON LT DEBT 0 0 0 0 0 0 0 0 0 0 0 CONTRIBUTED CAPITAL 0 0 0 0 0 0 0 0 0 0 0 RETAINED EARNINGS RSRVD FOR DS 0 0 0 0 0 0 0 0 0 0 0 RETAINED EARNINGS 0 0 0 0 0 0 0 0 0 0 0 NET INCR / (DECR) IN CASH:(1,901)16,762 17,117 33,191 (7,548)19,758 29,508 26,578 0 0 125,176 0 0 15,509 (23,798) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (449)(40,188) 15,509 (23,798) 0 0 0 0 (11,979)6,841 12,051 (44,461) 0 0 2,633 1,135 (19,583)(19,583) 15,959 16,390 16,325 16,325 104 (445) Twelve Month Profit and Loss PLYMOUTH TOWNE SQUARE For Year 2023 Period End Period End Jan 31, 2023 Mar 31, 2023 19 Regular Housing and Redevelopment Authority December 7, 2023 Agenda Number:4.3 To:Dave Callister, City Manager Prepared by:Steven Schmidt, Housing Manager Reviewed by:Steven Schmidt, Housing Manager Item:Accept Vicksburg Crossing monthly housing report and financials 1. Action Requested: Accept attached Vicksburg Crossing monthly housing report and financials. 2. Background: The Plymouth HRA contracts with Grace Management, Inc. to manage the Vicksburg Crossing apartments. The attached report and financial statements cover the most recent reporting period (October 2023 and YTD). 3. Budget Impact: N/A 4. Attachments: VC - Balance Sheet - 10.2023.pdf VC - 12-Month P&L - 10.2023.pdf VC COMPARATIVE 10.2023.pdf VC P&L VARIANCE 10.2023.pdf VC - Cashflow - 10.2023.pdf 20 Total ASSETS CURRENT ASSETS US BANK OPER ACCT US BANK SEC DEP ACCT INVESTMENTS - WORKING CAPITAL FUND INVESTMENTS - DEBT SERVICE ACCOUNTS REC-TENANTS INTEREST RECEIVABLE PREPAID PROPERTY INSURANCE PREPAID OTHER TOTAL CURRENT ASSETS 1,933,238 FIXED ASSETS LAND SITE IMPROVEMENTS BUILDING FURNITURE, FIXTURES & EQUIP-GENERAL COMPUTERS/OFFICE EQUIPMENT LEASE ASSET ACCUMULATED DEPRECIATION TOTAL FIXED ASSETS 5,860,233 NON-CURRENT ASSETS TOTAL ASSETS 7,793,470 (5,790,241) 874,593 261,390 9,904,487 594,654 8,680 6,669 932,098 37,463 (1,716) (834) 23,248 3,084 Balance Sheet VICKSBURG CROSSING As Of October 31, 2023 Ending Balance 862,114 77,781 21 Total Balance Sheet VICKSBURG CROSSING As Of October 31, 2023 Ending Balance LIABILITIES CURRENT LIABILITIES ACCOUNTS PAYABLE-TRADE ACCOUNTS PAYABLE - OTHER 401K WITHHOLDINGS PAYABLE ACCRUED PAYROLL ACCRUED COMPENSATED BALANCES ACCRUED INTEREST ACCRUED REAL ESTATE TAXES LEASES PAYABLE -SHORT TERM ACCRUED OTHER TOTAL CURRENT LIABILITIES 126,326 LONG-TERM LIABILITIES SECURITY DEPOSITS BOND PREMIUM-2021A BOND PAYABLE-2021A LEASES PAYABLE -LONG TERM 6,877,425 TOTAL LIABILITIES 7,003,751 EQUITY NET INVESTMENTS IN CAPITAL ASSETS RESTRICTED FOR DEBT SERVICE UNRESTRICTED TOTAL EQUITY 639,343 CURRENT YEAR INCOME/(LOSS)150,377 TOTAL LIABILITIES & EQUITY 7,793,470 6,500,000 5,298 (1,164,950) 454,639 1,349,654 37,828 53,630 1,251 2,057 75,424 296,702 18,245 2,103 1,525 3,461 6,227 22 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Dec 31, 2022 Feb 28, 2023 Mar 31, 2023 Apr 30, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Total INCOME APARTMENT RENTAL REVENUE 103,771 104,186 105,807 106,123 106,201 106,321 104,966 104,681 104,879 102,958 1,258,281 APARTMENT RENTAL REVENUE - COUNTY 2,299 2,950 2,950 2,950 2,944 2,944 2,944 2,944 2,944 2,821 33,939 HRA SUBSIDY - TAX LEVY 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 3,750 45,000 GARAGE RENT 4,065 4,200 4,020 4,020 4,020 4,020 4,020 4,260 4,080 4,080 48,930 GUEST ROOM REVENUE 0 70 0 140 620 70 1,040 540 380 420 3,280 APPLICATION FEE REVENUE 70 0 0 0 35 0 35 140 0 70 455 TRANSFER FEE REVENUE 0 0 0 0 0 0 0 0 0 1,000 1,000 INVESTMENT INCOME (8,283)425 426 429 430 12,285 (1,921)430 430 (222)5,695 CONTRIBUTED CAPITAL REVENUE 0 0 0 0 0 0 0 0 0 0 0 MISCELLANEOUS REVENUE 320 330 320 320 320 320 (2,389)732 300 320 5,404 TOTAL INCOME 105,992 115,911 117,273 117,732 118,320 129,710 112,445 117,477 116,763 115,197 1,401,984 EXPENSES ADMINISTRATION MANAGER SALARIES 5,635 5,462 6,047 5,852 6,047 5,852 6,047 6,047 5,852 6,047 70,560 PAYROLL TAXES 623 752 1,075 720 720 726 776 746 1,099 714 8,973 HEALTH INSURANCE 1,375 603 1,571 2,143 (32)1,252 1,978 855 880 1,064 14,703 WORKERS COMP INSURANCE 114 145 217 145 145 145 145 145 217 145 1,883 MAINTENANCE SALARIES/WAGES 6,001 4,252 4,778 4,476 4,937 4,558 4,711 4,796 4,578 4,672 57,118 EMPLOYEE COSTS 80 80 120 80 80 80 80 80 80 80 1,000 SEMINAR/TRAINING 0 0 0 35 0 0 0 0 0 0 35 DATA PROCESSING 0 0 0 0 0 0 22 31 31 62 146 BANK FEES 103 93 87 87 84 95 98 98 102 87 1,128 DUES, SUBS & MEMBERSHIPS 0 0 0 0 0 0 60 0 0 0 60 LICENSE & PERMITS 0 0 676 0 200 0 0 0 0 0 876 POSTAGE/OVERNIGHT EXPRESS 2 0 3 18 2 0 0 4 2 13 44 PRINTING 0 0 0 0 227 0 0 0 0 170 397 MANAGEMENT FEES 4,799 4,799 4,799 4,799 4,799 4,799 4,799 4,799 4,799 4,799 57,588 PROFESSIONAL FEES 0 0 0 0 0 0 50 25 1,411 75 1,636 TELEPHONE EXPENSE 552 539 529 628 528 528 534 433 494 492 6,313 EQUIPMENT LEASE/REPAIR (16)125 140 1,319 168 395 168 125 665 125 4,367 OFFICE SUPPLIES 281 296 34 0 0 339 0 204 227 0 1,498 TOTAL ADMIN EXPENSES 19,548 17,145 20,076 20,303 17,905 18,769 19,468 18,386 20,436 18,544 228,323 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 1,508 226 363 539 508 324 418 556 192 826 6,435 TOTAL LIFE ENRICHMENT EXPENSES 1,508 226 363 539 508 324 418 556 192 826 6,435 Twelve Month Profit and Loss VICKSBURG CROSSING For Year 2023 Period End Period End Nov 30, 2022 Jan 31, 2023 103,831 104,557 2,299 2,950 3,750 3,750 4,075 4,070 0 0 70 35 0 0 838 428 3,787 723 0 0 118,651 116,514 5,628 6,047 619 403 1,961 1,053 176 145 4,342 5,016 80 80 0 0 0 0 105 89 0 0 0 0 0 0 0 0 4,799 4,799 0 75 526 529 104 1,049 748 228 0 117 18,341 19,402 748 228 23 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Dec 31, 2022 Feb 28, 2023 Mar 31, 2023 Apr 30, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Total Twelve Month Profit and Loss VICKSBURG CROSSING For Year 2023 Period End Period End Nov 30, 2022 Jan 31, 2023 HOUSEKEEPING CONTRACT LABOR 1,361 1,361 1,361 1,361 1,361 1,361 1,361 2,281 1,571 1,826 18,517 CLEANING SUPPLIES 83 60 118 69 270 0 43 33 138 47 991 TOTAL HOUSEKEEPING EXPENSES 1,444 1,421 1,479 1,430 1,631 1,361 1,404 2,314 1,709 1,873 19,508 BUILDING & GROUNDS CONTRACT LABOR 193 193 433 521 193 153 582 700 241 193 3,938 CABLE TV EXPENSE 248 280 291 281 281 281 281 281 281 283 3,316 UTILITIES - ELECTRICITY 2,398 2,573 2,658 2,488 2,129 2,002 2,285 2,728 2,291 1,937 28,040 UTILITIES - GAS 5,378 4,601 3,853 2,625 1,106 602 622 517 612 921 28,378 UTILITIES - WATER/SEWER 1,804 1,392 1,459 1,728 1,594 1,711 1,805 2,244 2,024 1,678 20,560 WATER SOFTENING SERVICE 0 0 230 0 263 0 0 249 0 185 1,137 DOORS, KEYS & WINDOWS 0 0 0 0 554 0 0 0 0 0 576 FIRE SYSTEM SERVICE 55 55 55 55 928 55 55 55 517 55 1,994 LAWN SERVICE/LANDSCAP/SNOW RMVL 8,878 2,450 2,450 1,100 3,570 1,300 1,450 1,300 1,420 3,205 32,753 PEST CONTROL 153 255 153 0 0 153 0 0 153 0 867 TRASH REMOVAL 1,800 2,186 2,186 2,200 2,184 2,184 2,180 2,180 2,210 2,175 25,507 UNIT TURNOVER REPAIRS 10,795 0 0 0 0 0 0 13,965 0 18,594 43,769 EQUIPMENT LEASE/REPAIR 0 0 0 0 0 0 0 0 0 0 50 ELEVATOR-REPAIRS & MAINT 596 607 607 607 607 607 607 607 607 607 7,251 REPAIRS & MAINTENANCE 4,040 1,597 2,673 8,759 3,480 5,838 6,461 3,400 827 539 42,122 BUILDING & GROUNDS SUPPLIES 1,731 430 350 0 459 1,610 0 343 136 195 5,303 HVAC - REPAIRS & MAINTENANCE 706 735 260 260 260 1,077 1,599 260 678 1,109 7,873 TOTAL BUILDING & GROUNDS 38,774 17,355 17,659 20,623 17,606 17,574 17,927 28,829 11,996 31,675 253,433 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,485 3,485 3,553 3,553 3,553 3,054 3,387 3,283 3,283 3,283 40,890 PAYMENT IN LIEU OF PROPERTY TAX 4,502 5,363 5,363 5,363 5,363 5,363 5,363 5,363 5,363 5,363 63,340 TOTAL OTHER OPERATING EXPENSES 7,987 8,848 8,916 8,916 8,916 8,417 8,750 8,646 8,646 8,646 104,230 TOTAL OPERATING EXPENSES 69,261 44,994 48,494 51,812 46,567 46,444 47,967 58,731 42,979 61,563 611,929 NET OPERATING INCOME / ( L0SS)36,730 70,917 68,780 65,920 71,754 83,266 64,478 58,746 73,783 53,634 790,055 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 33,226 26,470 26,470 26,470 26,470 26,470 26,470 26,470 26,470 26,470 324,396 AMORTIZATION EXPENSE (21,828)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(47,403) RESERVE/REPLACE CAPITAL EXPENSE (118,697)0 14,945 14,775 67,845 0 0 11,712 42,618 0 49,989 INTEREST EXPENSE (30,014)11,733 11,909 11,733 11,733 11,911 11,733 11,733 11,905 11,734 105,460 TOTAL DEPREC, INTEREST & OTHER (137,313)35,878 50,999 50,653 103,723 36,056 35,878 47,590 78,668 35,879 432,441 NET INCOME / (LOSS)174,044 35,039 17,781 15,267 (31,969)47,210 28,600 11,156 (4,885)17,754 357,613 1,731 1,581 47 84 1,778 1,665 193 346 248 282 1,773 2,777 1,880 5,659 1,479 1,641 0 211 0 22 55 55 1,271 4,360 0 0 1,808 2,213 415 0 0 50 596 596 4,150 357 9 40 260 669 14,136 19,279 3,485 3,485 26,470 26,470 74,955 67,092 5,208 5,363 8,693 8,848 43,695 49,422 41,762 52,669 33,193 14,423 (2,325)(2,325) 0 16,791 17,617 11,733 24 MTD Actual Budget Last Year YTD Actual Budget Last Year 102,958 103,628 103,763 1,036,335 2,821 2,277 2,307 22,770 3,750 3,750 3,750 37,500 4,080 4,080 4,030 40,800 420 140 660 1,540 70 35 0 455 1,000 0 0 1,000 (222)417 (3,789)4,170 320 290 330 2,900 115,197 114,617 111,051 1,147,470 6,047 5,917 5,816 59,170 714 865 647 8,650 1,064 2,059 1,961 20,590 145 160 176 1,600 4,672 4,897 4,636 48,970 80 130 80 940 0 0 0 150 0 0 0 0 62 0 0 0 87 110 147 1,100 0 0 0 65 0 0 0 906 0 10 13 100 13 10 20 100 170 15 0 150 4,799 4,799 4,799 47,990 75 223 5,000 2,230 492 530 522 5,300 125 220 104 2,200 0 118 118 1,180 18,544 20,063 24,040 201,391 826 750 342 4,300 826 750 342 4,300 TOTAL LIFE ENRICHMENT EXPENSES 4,179 4,754 TOTAL ADMIN EXPENSES 190,434 204,110 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 4,179 4,754 EQUIPMENT LEASE/REPAIR 4,279 7,788 OFFICE SUPPLIES 1,217 1,111 PROFESSIONAL FEES 1,636 6,388 TELEPHONE EXPENSE 5,235 5,150 PRINTING 397 248 MANAGEMENT FEES 47,990 47,990 MILEAGE REIMBURSEMENT 0 34 POSTAGE/OVERNIGHT EXPRESS 42 83 DUES, SUBS & MEMBERSHIPS 60 60 LICENSE & PERMITS 876 876 DATA PROCESSING 146 0 BANK FEES 920 994 SEMINAR/TRAINING 35 112 CLASSIFIED ADVERTISING 0 330 MAINTENANCE SALARIES/WAGES 46,774 46,382 EMPLOYEE COSTS 840 880 HEALTH INSURANCE 11,367 19,025 WORKERS COMP INSURANCE 1,593 2,130 EXPENSES ADMINISTRATION MANAGER SALARIES 59,297 57,027 PAYROLL TAXES 7,731 7,501 MISCELLANEOUS REVENUE 1,297 4,563 TOTAL INCOME 1,177,342 1,149,238 TRANSFER FEE REVENUE 1,000 1,000 INVESTMENT INCOME 13,140 3,741 GUEST ROOM REVENUE 3,280 3,410 APPLICATION FEE REVENUE 315 350 HRA SUBSIDY - TAX LEVY 37,500 37,500 GARAGE RENT 40,790 38,928 APARTMENT RENTAL REVENUE 1,050,679 1,032,781 APARTMENT RENTAL REVENUE - COUNTY 29,341 26,965 Comparative Profit and Loss VICKSBURG CROSSING Through October 31, 2023 Description INCOME 25 MTD Actual Budget Last Year YTD Actual Budget Last Year Comparative Profit and Loss VICKSBURG CROSSING Through October 31, 2023 Description 0 0 0 500 0 0 0 500 1,826 1,800 1,581 18,000 47 155 0 1,550 1,873 1,955 1,581 19,550 193 900 1,002 9,000 283 258 248 2,520 1,937 2,000 1,913 23,600 921 3,000 2,020 23,300 1,678 1,500 1,816 15,700 185 148 275 1,480 0 65 0 650 55 180 55 5,910 3,205 1,400 1,915 18,000 0 0 153 685 2,175 1,761 1,782 17,610 18,594 4,250 7,802 42,500 0 0 0 0 607 685 596 6,850 539 2,950 935 22,000 195 1,550 905 14,400 1,109 900 1,645 8,350 0 1,000 0 10,000 31,675 22,547 23,063 222,555 3,283 3,296 3,485 36,418 5,363 5,363 5,208 53,630 8,646 8,659 8,693 90,048 61,563 53,974 57,718 538,344 53,634 60,643 53,333 609,126 26,470 26,470 26,470 264,700 (2,325)2,207 (2,325)22,070 0 0 30,000 105,000 11,734 11,733 17,617 117,330 35,879 40,410 71,762 509,100 17,754 20,233 (18,429)100,026 NET INCOME / (LOSS)150,377 26,088 INTEREST EXPENSE 117,857 176,683 TOTAL DEPREC, INTEREST & OTHER 527,993 606,649 AMORTIZATION EXPENSE (23,250)13,896 RESERVE/REPLACE CAPITAL EXPENSE 168,686 151,370 NET OPERATING INCOME / ( L0SS)678,369 632,736 DEPREC, INTEREST & OTHER EXPENSE DEPRECIATION EXPENSE 264,700 264,700 TOTAL OTHER OPERATING EXPENSES 87,550 86,293 TOTAL OPERATING EXPENSES 498,972 516,501 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 33,920 34,213 PAYMENT IN LIEU OF PROPERTY TAX 53,630 52,080 MISCELLANEOUS B & G EXPENSES 0 0 TOTAL BUILDING & GROUNDS 200,522 204,313 BUILDING & GROUNDS SUPPLIES 3,563 9,851 HVAC - REPAIRS & MAINTENANCE 6,907 6,874 ELEVATOR-REPAIRS & MAINT 6,058 6,864 REPAIRS & MAINTENANCE 33,931 21,187 UNIT TURNOVER REPAIRS 32,559 38,486 EQUIPMENT LEASE/REPAIR 50 0 PEST CONTROL 714 499 TRASH REMOVAL 21,899 17,629 FIRE SYSTEM SERVICE 1,885 7,780 LAWN SERVICE/LANDSCAP/SNOW RMVL 22,605 20,000 WATER SOFTENING SERVICE 1,137 1,276 DOORS, KEYS & WINDOWS 576 245 UTILITIES - GAS 21,120 25,324 UTILITIES - WATER/SEWER 17,277 15,976 6,191 CABLE TV EXPENSE 2,820 2,464 UTILITIES - ELECTRICITY 23,869 23,667 BUILDING & GROUNDS CONTRACT LABOR 3,553 TOTAL HOUSEKEEPING EXPENSES 16,286 16,567 CONTRACT LABOR 15,425 15,700 CLEANING SUPPLIES 861 867 TOTAL MARKETING EXPENSES 0 464 HOUSEKEEPING MARKETING ADVERTISING 0 464 26 MTD Actual Budget Var.YTD Actual Budget Var.Year Budget INCOME APARTMENT RENTAL REVENUE 102,958 103,628 1,050,679 1,036,335 14,344 1,246,541 APARTMENT RENTAL REVENUE - COUNTY 2,821 2,277 29,341 22,770 6,571 27,324 HRA SUBSIDY - TAX LEVY 3,750 3,750 37,500 37,500 0 45,000 GARAGE RENT 4,080 4,080 40,790 40,800 (10)48,960 GUEST ROOM REVENUE 420 140 3,280 1,540 1,740 2,100 APPLICATION FEE REVENUE 70 35 315 455 (140)560 TRANSFER FEE REVENUE 1,000 0 1,000 1,000 0 1,000 INVESTMENT INCOME (222)417 13,140 4,170 8,970 5,000 MISCELLANEOUS REVENUE 320 290 1,297 2,900 (1,603)3,480 TOTAL INCOME 115,197 114,617 1,177,342 1,147,470 29,872 1,379,965 EXPENSES ADMINISTRATION MANAGER SALARIES 6,047 5,917 59,297 59,170 (127)71,000 PAYROLL TAXES 714 865 7,731 8,650 919 10,381 HEALTH INSURANCE 1,064 2,059 11,367 20,590 9,223 24,710 WORKERS COMP INSURANCE 145 160 1,593 1,600 7 1,920 MAINTENANCE SALARIES/WAGES 4,672 4,897 46,774 48,970 2,196 58,760 EMPLOYEE COSTS 80 130 840 940 100 1,110 SEMINAR/TRAINING 0 0 35 150 115 150 DATA PROCESSING 62 0 146 0 (146)0 BANK FEES 87 110 920 1,100 180 1,320 DUES, SUBS & MEMBERSHIPS 0 0 60 65 5 65 LICENSE & PERMITS 0 0 876 906 30 906 MILEAGE REIMBURSEMENT 0 10 0 100 100 120 POSTAGE/OVERNIGHT EXPRESS 13 10 42 100 58 120 PRINTING 170 15 397 150 (247)180 MANAGEMENT FEES 4,799 4,799 47,990 47,990 0 57,583 PROFESSIONAL FEES 75 223 1,636 2,230 594 2,676 TELEPHONE EXPENSE 492 530 5,235 5,300 65 6,360 EQUIPMENT LEASE/REPAIR 125 220 4,279 2,200 (2,079)2,640 OFFICE SUPPLIES 0 118 1,217 1,180 (37)1,416 TOTAL ADMIN EXPENSES 18,544 20,063 190,434 201,391 10,957 241,417 LIFE ENRICHMENT RESIDENT PROGRAM/ACTIVITIES 826 750 4,179 4,300 121 6,450 826 750 4,179 4,300 121 6,450 TOTAL LIFE ENRICHMENT EXPENSES (76) 118 1,519 (76) 148 38 95 (3) (155) 0 0 0 10 0 (62) 23 15 225 50 (130) 151 995 (639) 30 580 280 35 1,000 544 0 0 Profit and Loss Variance VICKSBURG CROSSING Through October 31, 2023 (670) 27 MTD Actual Budget Var.YTD Actual Budget Var.Year Budget Profit and Loss Variance VICKSBURG CROSSING Through October 31, 2023 MARKETING ADVERTISING 0 0 0 500 500 500 TOTAL MARKETING EXPENSES 0 0 0 500 500 500 HOUSEKEEPING CONTRACT LABOR 1,826 1,800 15,425 18,000 2,575 21,600 CLEANING SUPPLIES 47 155 861 1,550 689 1,860 1,873 1,955 16,286 19,550 3,264 23,460 BUILDING & GROUNDS CONTRACT LABOR 193 900 3,553 9,000 5,447 10,800 CABLE TV EXPENSE 283 258 2,820 2,520 (300)3,036 UTILITIES - ELECTRICITY 1,937 2,000 23,869 23,600 (269)27,400 UTILITIES - GAS 921 3,000 21,120 23,300 2,180 32,000 UTILITIES - WATER/SEWER 1,678 1,500 17,277 15,700 (1,577)18,700 WATER SOFTENING SERVICE 185 148 1,137 1,480 343 1,776 DOORS, KEYS & WINDOWS 0 65 576 650 74 780 FIRE SYSTEM SERVICE 55 180 1,885 5,910 4,026 6,270 LAWN SERVICE/LANDSCAP/SNOW RMVL 3,205 1,400 22,605 18,000 (4,605)23,200 PEST CONTROL 0 0 714 685 (29)860 TRASH REMOVAL 2,175 1,761 21,899 17,610 (4,289)21,132 UNIT TURNOVER REPAIRS 18,594 4,250 32,559 42,500 9,941 51,000 EQUIPMENT LEASE/REPAIR 0 0 50 0 (50)0 ELEVATOR-REPAIRS & MAINT 607 685 6,058 6,850 792 8,220 REPAIRS & MAINTENANCE 539 2,950 33,931 22,000 (11,931)25,900 BUILDING & GROUNDS SUPPLIES 195 1,550 3,563 14,400 10,837 17,500 HVAC - REPAIRS & MAINTENANCE 1,109 900 6,907 8,350 1,443 10,000 MISCELLANEOUS B & G EXPENSES 0 1,000 0 10,000 10,000 12,000 TOTAL BUILDING & GROUNDS 31,675 22,547 200,522 222,555 22,033 270,574 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 3,283 3,296 33,920 36,418 2,498 43,009 PAYMENT IN LIEU OF PROPERTY TAX 5,363 5,363 53,630 53,630 0 64,350 8,646 8,659 87,550 90,048 2,498 107,359 TOTAL OPERATING EXPENSES 61,563 53,974 498,972 538,344 39,372 649,760 NET OPERATING INCOME / ( L0SS)53,634 60,643 678,369 609,126 69,243 730,205 DEPREC, INTEREST & OTHER DEPRECIATION EXPENSE 26,470 26,470 264,700 264,700 0 317,640 AMORTIZATION EXPENSE (2,325)2,207 (23,250)22,070 45,320 26,486 RESERVE/REPLACE CAPITAL EXPENSE 0 0 168,686 105,000 (63,686)105,000 INTEREST EXPENSE 11,734 11,733 117,857 117,330 (527)140,790 35,879 40,410 527,993 509,100 (18,893)589,916 NET INCOME / (LOSS)17,754 20,233 150,377 100,026 50,351 140,289 TOTAL DEPREC, INTEREST & OTHER 4,531 (2,479) 4,532 0 (1) (7,589) (7,009) 0 0 TOTAL OTHER OPERATING EXPENSES 13 (9,128) 13 1,355 (209) 1,000 0 78 2,411 0 (414) (14,344) (1,805) 65 125 2,079 (178) (37) 708 (25) 63 (26) 108 TOTAL HOUSEKEEPING EXPENSES 82 0 0 28 Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Period End Feb 28, 2023 Apr 30, 2023 May 31, 2023 Jun 30, 2023 Jul 31, 2023 Aug 31, 2023 Sep 30, 2023 Oct 31, 2023 Nov 30, 2023 Dec 31, 2023 Year To Date CASHFLOW RECONCILIATION: NET INCOME / (LOSS)35,039 15,267 (31,969)47,210 28,600 11,156 (4,885)17,754 0 0 150,377 ADJUSTMENTS TO NET CASHFLOW: DEPRECIATION & AMORTIZATION 26,470 26,470 26,470 26,470 26,470 26,470 26,470 26,470 0 0 264,700 (INCR) / DECR IN A/R 603 (2,805)798 6,403 5,019 (1,901)(443)1,370 0 0 13,223 (INCR) / DECR IN ESCROW 0 0 0 0 0 0 0 0 0 0 0 (INCR) / DECR IN PREPAID EXP 2,863 3,651 1,897 (32,630)4,966 (4,570)10,404 4,025 0 0 (3,543) (INCR)/DECR IN OTHER ASSETS 519,150 (3,750)(3,750)(52,898)(110,144)63,495 (3,750)(4,350)0 0 396,504 (INCR) / DECR IN OTHER ASSETS 0 0 0 0 0 0 0 0 0 0 0 INCR /( DECR) IN ACCTS PAYABLE (3,383)9,245 (5,348)26,784 (39,969)8,463 34,949 (28,018)0 0 (10,757) INCR /( DECR) IN ACCRD LIAB (509,349)20,117 19,585 49,138 19,842 (55,919)14,159 16,732 0 0 (455,526) TOTAL ADJUSTMENTS 36,354 52,929 39,652 23,269 (93,817)36,039 81,789 16,229 0 0 204,601 NET OPERATING CASHFLOW:71,394 68,196 7,683 70,479 (65,217)47,195 76,904 33,983 0 0 354,978 LESS CAPITAL EXPENDITURES: LAND 0 0 0 0 0 0 0 0 0 0 0 SITE IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 BUILDING 0 0 0 0 0 0 0 0 0 0 0 BUILDING IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 FURNITURE, FIXTURES & EQUIP-GENERAL 0 0 0 0 0 0 0 0 0 0 0 CONSTRUCTION IN PROGRESS 0 0 0 0 0 0 0 0 0 0 0 FURNITURE & FIXTURES - HOUSEKEEPING 0 0 0 0 0 0 0 0 0 0 0 COMPUTERS/OFFICE EQUIPMENT 0 0 0 0 0 0 0 0 0 0 0 APARTMENT IMPROVEMENTS 0 0 0 0 0 0 0 0 0 0 0 VEHICLES 0 0 0 0 0 0 0 0 0 0 0 SMALL EQUIPMENT/FURNISHINGS 0 0 0 0 0 0 0 0 0 0 0 LEASE ASSET 0 0 0 0 0 0 0 0 0 0 0 PRINCIPAL PYMTS ON LT DEBT (2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)(2,325)0 0 (23,250) CONTRIBUTED CAPITAL 0 0 0 0 0 0 0 0 0 0 0 PARTNER DISTRIBUTIONS - CPF 0 0 0 0 0 0 0 0 0 0 0 PARTNER DISTRIBUTIONS - NON-CPF 0 0 0 0 0 0 0 0 0 0 0 NET INVESTMENTS IN CAPITAL ASSETS 0 0 0 0 0 0 0 0 0 0 0 RESTRICTED FOR DEBT SERVICE 0 0 0 0 0 0 0 0 0 0 0 UNRESTRICTED 0 0 0 0 0 0 0 0 0 0 0 RETAINED EARNINGS-RSRVD FOR DS 0 0 0 0 0 0 0 0 0 0 0 RETAINED EARNINGS 0 0 0 0 0 0 0 0 0 0 0 NET INCR / (DECR) IN CASH:69,068 65,871 5,358 68,154 (67,542)44,870 74,579 31,658 0 0 331,728 0 0 0 0 49,409 (9,697) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 (2,325)(2,325) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 37,311 (25,153) 51,734 (7,372) 0 0 0 0 (12,089)(1,392) 19,059 (48,889) 0 0 3,119 2,732 (3,750)(3,750) 14,423 17,781 26,470 26,470 4,503 (324) Twelve Month Profit and Loss VICKSBURG CROSSING For Year 2023 Period End Period End Jan 31, 2023 Mar 31, 2023 29 Regular Housing and Redevelopment Authority December 7, 2023 Agenda Number:6.1 To:Housing and Redevelopment Authority Prepared by:Andrea Rich, Finance Director Reviewed by:Grant Fernelius, Community and Economic Development Director Item:HRA 2024 Budget 1. Action Requested: Discuss HRA budgets and recommend the City Council approve the 2024 HRA budgets. 2. Background: Annually each summer staff begins developing the following year's budget. The HRA budgets are included in the budgets submitted to City Council. HRA activities are covered by three separate program budgets: the Community Development Block Grant (CDBG), Housing Choice Voucher (HCV), and the HRA General Fund (itemized budgets attached). The CDBG budget is supported primarily by federal funds, except for some overhead, which is funded through the HRA levy property tax. The HCV program is supported entirely with federal dollars and the HRA General fund is supported almost entirely by property taxes. The senior building budgets are under separate reports. The Council traditionally adopts the HRA's budget as part of the overall City Budget. The Council has authority over the amount of the HRA property tax levy, so ultimately they control the main revenue source for many HRA programs under the General Fund. The HRA has authority over the HRA General Fund and HCV budgets; however, the City Council is the Grantee for the CDBG program and, as such, has ultimate budget responsibility for that portion. For the 2024 budget year, the HRA overall tax levy is proposed to be $658,823, which is $19,189 more than 2023. The increase is not tied to one particular line item, rather it reflects increases in a few key areas including professional services, contractual services and updated maintenance expenditure for HRA owned scattered site properties. CDBG There are no significant changes to the CDBG budget proposed for 2024 as the budget is largely driven by the federal grant award which is allocated on a formula basis. Staff anticipates this year's federal allocation will be similar to the 2023 allocation. The final budget amount is determined by the U.S. Department of Housing and Urban Development and is typically released sometime late in the second quarter of 2024. HOUSING CHOICE VOUCHER The Housing Choice Voucher budget reflects the continued operation of the housing choice voucher program. 30 At this time, staff does not know what the funding allocation will be from Housing and Urban Development (HUD) for 2024. There are sufficient funds in the unrestricted net assets account to cover any shortfall in administrative expenses for the 2022 budget. Staff continues to monitor revenues and expenditures closely for 2023. The Housing Assistance Payment (HAP) funding for 2023 is funded at 100 percent for the year. The administrative fees are currently at 89.2 percent. HRA GENERAL FUND The overall revenue for the 2024 General fund budget has increased by approximately $27,000. This is largely due to an increase in the levy. Expenditures have increased slightly from last year's budget. The main driver of expenditures for the fund are transfers to the Senior buildings. 3. Budget Impact: The HRA levy is proposed to increase by approximately $20,000. 4. Attachments: 2024 Housing Budgets.pdf HRA Reserves 2023 - Updated 10-18-23.pdf HRA Levy History.pdf 31 2022 Actual 2023 Budget 2024 Proposed 2025 Proposed Variance 2023 Budget to 2024 Proposed % Variance 2023 Budget to 2024 Proposed Variance 2024 Budget to 2025 Proposed % Variance 2024 Budget to 2025 Proposed Revenues Taxes 7,934 8,302 - - (8,302) -100.0%- - Intergovernmental 406,384 418,364 355,452 441,452 (62,912) -15.0%86,000 24.2% Interest Income (11,288) 300 300 300 - 0.0%- 0.0% Other 46 - - - - -- - Transfers In - balancing - - 155,303 78,026 155,303 -(77,277) -49.8% 403,076 426,966 511,055 519,778 84,089 19.7%8,723 1.7% Expenditures Personal Services 74,028 82,414 33,299 35,476 (49,115) -59.6%2,177 6.5% Materials and Supplies 61 300 300 300 - 0.0%- 0.0% Employee Development & Meetings 1,380 1,600 1,600 1,600 - 0.0%- 0.0% Dues & Subscriptions 79 - - - - -- - Contractual Services 33,932 6,650 7,250 7,350 600 9.0%100 1.4% Allocations 5,805 6,008 10,349 11,158 4,341 72.3%809 7.8% Transfers Out - - - - - -- - Other Expense 275,018 329,994 458,257 463,894 128,263 38.9%5,637 1.2% 390,303 426,966 511,055 519,778 84,089 19.7%8,723 1.7% Net Total 12,773 - - - Authorized FTE's 2022 Actual 2023 Budget 2024 Proposed 2025 Proposed Economic Development 1.50 1.50 1.50 1.50 CD Administration & Support 4.75 4.75 4.75 4.75 Planning 4.40 4.40 4.40 4.40 Inspections 10.00 10.00 10.00 10.00 Housing & Development 4.65 4.65 4.85 4.85 Total 25.30 25.30 25.50 25.50 - Focus on improvements to overall program compliance, including developing additional policies and procedures for program administration - Provide technical assistance to subgrantees to ensure the CDBG program makes drawdowns in a timely manner so as to pass the timeliness test - Evaluate market conditions and how to effectively target a continuum of housing needs with CDBG funding, particularly given challenges in effectively serving the First-Time Homebuyer market\ - Evaluate opportunities for CDBG program delivery, including continued independent administration of the program or administration through a partnership with Hennepin County CDBG Financial Summary 2024/2025 Goals and Objectives 32 2022 Actual 2023 Budget 2024 Proposed 2025 Proposed Variance 2023 Budget to 2024 Proposed % Variance 2023 Budget to 2024 Proposed Variance 2024 Budget to 2025 Proposed % Variance 2024 Budget to 2025 Proposed Revenues Taxes 608,753 631,332 658,823 678,588 27,491 4.4%19,765 3.0% Intergovernmental 5 - - - - -- - Charges for Services 42,450 51,900 51,900 51,900 - 0.0%- 0.0% Interest Income (3,421) 23,000 23,000 23,000 - 0.0%- 0.0% Other 59,519 12,000 12,000 12,000 - 0.0%- 0.0% 707,306 718,232 745,723 765,488 27,491 3.8%19,765 2.7% Expenditures Personal Services 130,086 249,712 275,301 289,522 25,589 10.2%14,221 5.2% Materials and Supplies 321 500 500 500 - 0.0%- 0.0% Employee Development & Meetings 390 3,300 3,300 3,300 - 0.0%- 0.0% Dues & Subscriptions 1,881 1,000 1,000 1,000 - 0.0%- 0.0% Contractual Services 43,582 49,788 28,150 28,510 (21,638) -43.5%360 1.3% Equipment 2,617 - - - - -- - Allocations 27,263 28,408 42,089 45,181 13,681 48.2%3,092 7.3% Transfers Out 305,000 344,649 376,188 372,108 31,539 9.2%(4,080) -1.1% Other Expense 62,279 40,875 19,195 25,367 (21,680) -53.0%6,172 32.2% 573,419 718,232 745,723 765,488 27,491 3.8%19,765 2.7% Net Total 133,887 - - - Authorized FTE's 2022 Actual 2023 Budget 2024 Proposed 2025 Proposed Economic Development 1.50 1.50 1.50 1.50 CD Administration & Support 4.75 4.75 4.75 4.75 Planning 4.40 4.40 4.40 4.40 Inspections 10.00 10.00 10.00 10.00 Housing & Development 4.65 4.65 4.85 4.85 Total 25.30 25.30 25.50 25.50 - Support HRA’s Strategic Plan, including implementation of a policy to encourage the development of affordable housing - Evaluate options for use of metro-wide sales tax to support affordable housing, including creation of a local land trust HRA General Fund Financial Summary 2024/2025 Goals and Objectives 33 2022 Actual 2023 Budget 2024 Proposed 2025 Proposed Variance 2023 Budget to 2024 Proposed % Variance 2023 Budget to 2024 Proposed Variance 2024 Budget to 2025 Proposed % Variance 2024 Budget to 2025 Proposed Revenues Intergovernmental 3,485,818 3,393,375 3,393,375 3,393,375 - 0%- 0% Interest Income 6 10 10 10 - 0%- 0% Transfers In - balancing - - - - - -- - 3,485,824 3,393,385 3,393,385 3,393,385 - 0%- 0% Expenditures Personal Services 247,985 260,045 199,534 213,659 (60,511) -23%(46,386) -23% Materials and Supplies - 100 100 100 - 0%- 0% Employee Development & Meetings - 2,150 2,150 2,150 - 0%- 0% Dues & Subscriptions 1,115 500 500 500 - 0%- 0% Contractual Services 20,714 31,700 34,450 34,800 2,750 9%3,100 9% Equipment 116 - - - - -- - Allocations 24,251 24,983 46,252 49,861 21,269 85%24,878 54% Transfers Out - - 32,420 9,892 32,420 -9,892 31% Other Expense 3,177,768 3,073,907 3,077,979 3,082,423 4,072 0%8,516 0% 3,471,949 3,393,385 3,393,385 3,393,385 - 0%- 0% Net Total 13,875 - - - Authorized FTE's 2022 Actual 2023 Budget 2024 Proposed 2025 Proposed Economic Development 1.50 1.50 1.50 1.50 CD Administration & Support 4.75 4.75 4.75 4.75 Planning 4.40 4.40 4.40 4.40 Inspections 10.00 10.00 10.00 10.00 Housing & Development 4.65 4.65 4.85 4.85 Total 25.30 25.30 25.50 25.50 - Support HRA’s Strategic Plan, including implementation of a policy to encourage the development of affordable housing - Evaluate options for use of metro-wide sales tax to support affordable housing, including creation of a local land trust - Re-evaluate options for management of the City’s CDBG program Housing Choice Voucher Financial Summary 2024/2025 Goals and Objectives 34 Fund Balance Summaries September 30, 2023 Prepared on: 11/8/2023 HRA Community Economic General Section 8 Development Development 258 254 230 234 Fund Balance - Beginning 1,051,638 611,218 58,659 152,043 Revenues - 09/30/23 516,144 3,024,743 1,112 5,058 Expenses - 09/30/23 163,886 2,866,067 7 20 Fund Balance - 09/30/23 1,403,895 769,894 59,764 157,082 Less Restricted for: HRA General: Current Year Budget x 40%(279,406) Section 8: 2 months expenditures (557,527) Available Fund Balance 1,124,489 212,367 59,778 157,121 TIF 1-1 TIF 1-2 TIF 1-3 TIF 7-4 TIF 7-5A TIF 7-6 THAP TIF 7-7 TIF 7-8 TIF 7-9 TIF 7-10 TIF 7-11 427 428 429 422 423 424 425 426 432 433 434 436 Fund Balance - Beginning (994) 26,873 242,347 1,325,025 (1,525) 1,739,628 64,416 (131,506) 180,128 (4,700) (245,995) (2,406) Revenues - 09/30/23 1 18,074 108,749 25,141 6 234,772 96,067 121,206 228,575 9,442 5,539 1 Expenses - 09/30/23 1,292 2,354 94,135 1,400 210 628 24 448 202,462 10,772 210 210 Fund Balance - 09/30/23 (2,285) 42,593 256,962 1,348,766 (1,729) 1,973,773 160,458 (10,749) 206,241 (6,030) (240,666) (2,615) TIF 1-1 TIF 7-5A Debt Service Debt Service 308 310 Fund Balance - Beginning 1,318,409 21,616 Revenues - 09/30/23 114,094 127,247 Expenses - 09/30/23 147 305,257 Fund Balance - 09/30/23 1,432,357 (156,394) Total Fund Balance by District 1,430,071 42,593 256,962 1,348,766 (158,123) 1,973,773 160,458 (10,749) 206,241 (6,030) (240,666) (2,615) Plymouth Towne Vicksburg Square Crossing 850 851 Repair and Replacement Cash Balance 9/30 689,121 927,006 Debt Service Cash Balance 9/30 49,959 (37) Operating Cash Balance as of 9/30 380,874 832,714 Total Cash Balance 1,120,805 1,760,535 HRA Funds Senior Buildings Tax Increment Funds https://plymouthmn.sharepoint.com/sites/Finance-Admin/Shared Documents/General/Staff Work in Progress/CGuse/Budget/HRA/2023/HRA/HRA Reserves 2023 - Updated 10-18-23.xlsx 35 2019 2020 2021 2022 2011 2012 2013 2014 2015 2005 2006 2007 2008 2009 2010 1.89% 1.60% 1.72% 2.00% 0.00% 0.00% 0.00% 0.00% 0.00% 1.72% 0.00%$551,277 $560,771 $551,277 $551,277 4.33% -10.65% -7.22% 4.14% 5.11%$551,277 $524,477 $503,617 $542,835 $607,556 $551,277 $551,277 $618,953 $606,817 $602,339 $590,528 $580,519 $571,379 HRA Levy History Levy Year Amount Percent Increase from Prior Year $551,277 2016 3.34% 3.00% $639,634 $658,823 0.74% 2.00% 2023 2024 (proposed) 2017 2018 36 Regular Housing and Redevelopment Authority December 7, 2023 Agenda Number:6.2 To:Housing and Redevelopment Authority Prepared by:Andrea Rich, Finance Director Reviewed by:Grant Fernelius, Community and Economic Development Director Item:Vicksburg Crossing 2024 Budget 1. Action Requested: Adopt Resolution 2022-11 approving the 2023 Vicksburg Crossing operating budget 2. Background: Staff has reviewed the budget for Vicksburg Crossing submitted by Grace Management for the operation of the property for January 1, 2024 through December 31, 2024, including a current estimate of actual expenditures for 2023. After discussions with internal staff and Grace Management, the attached operating budget is ready for review and approval by the HRA board. Revenue: Overall revenues for 2024 are projected to be $1,397,225. Included in this figure are revenues from tenants, parking stall rentals, application fees, investment income and the HRA tax levy. Tenant rents are based on the income schedule (attached) and are proposed to be increased by $10 for all apartment types. The subsidy is projected to be $50,000, which is a small increase from 2023. Expenditures: Staff has reviewed the 2023 year-to-date financials and contacted our vendors to arrive at the anticipated 2024 expenditures. The proposed operating expenditures are $677,232 which is approximately $27,500 higher than 2023. Reserve/Replacement Account: The 2024 budget anticipates $72,000 for our replacement reserve account, which is the same as last year. Staff continues to review the Reserve/Replacement schedule to ensure that there is sufficient capital set aside to maintain the property over the long term. Staff is proposing a number of improvements to the property in 2024 including the following: 1. Elevator Car 2 door upgrade ($9,890) 2. MagicPak Replacement ($65,000) 3. Concrete Replacement ($10,000). The funds for these improvements will come from the building’s replacement reserves. 3. Budget Impact: The operating budget will be covered through a combination of building revenue and the HRA tax levy. 4. Attachments: Housing & Redevelopment Authority resolution.pdf VC Budget Assumptions 2024.pdf VC BUDGET Comparison 2024 .pdf VC Budget 2024.pdf 37 38 PLYMOUTH HOUSING REDEVELOPMENT AUTHORITY HRA RESOLUTION NO. 2023-08 AUTHORIZING THE 2024 OPERATING BUDGET FOR VICKSBURG CROSSING WHEREAS SXUVXDQW WR 0LQQHVRWD 6WDWXWHV VHFWLRQV WR WKH +5$ $FWWKH&LW\&RXQFLORIWKH&LW\RI3O\PRXWK0LQQHVRWDWKH³&LW\´GHFODUHGWKHQHHGIRUD KRXVLQJ DQG UHGHYHORSPHQW DXWKRULW\ WR IXQFWLRQ LQ WKH &LW\ DQG JUDQWHG WR WKH +RXVLQJ DQG 5HGHYHORSPHQW$XWKRULW\LQDQGIRUWKH&LW\RI3O\PRXWK0LQQHVRWDWKH³$XWKRULW\´DOORIWKH SRZHUVDQGGXWLHVRIDKRXVLQJDQGUHGHYHORSPHQWDXWKRULW\XQGHUWKHSURYLVLRQVRIWKH+5$$FW DQG WHEREAS, WKH$XWKRULW\RZQVDQGRSHUDWHV DVHQLRULQGHSHQGHQW DSDUWPHQWEXLOGLQJ QDPHG9LFNVEXUJ&URVVLQJDQG WHEREAS, WKH $XWKRULW\ LV UHTXLUHG WR DGRSW DQ RSHUDWLQJ EXGJHW IRU 9LFNVEXUJ &URVVLQJDQG WHEREAS *UDFH 0DQDJHPHQW ,QF WKH +5$¶V FRQWUDFW SURSHUW\ PDQDJHPHQW FRPSDQ\KDVSURYLGHGDSURSRVHG4EXGJHWIRU9LFNVEXUJ&URVVLQJDQG WHEREAS, VWDIIIURPWKH$XWKRULW\DQGWKH&LW\KDYHUHYLHZHGWKHSURSRVHGEXGJHW DQG WHEREAS,WKH$XWKRULW\KDVEHIRUHLWIRULWVFRQVLGHUDWLRQDFRS\RIWKHEXGJHWIRUWKH RSHUDWLRQVRI9LFNVEXUJ&URVVLQJIRUWKHILVFDO\HDU4 NOW, THEREFOREEHLWUHVROYHGE\WKH%RDUGRI&RPPLVVLRQHUVRIWKH+RXVLQJDQG 5HGHYHORSPHQW $XWKRULW\ LQ DQG IRU WKH &LW\ RI 3O\PRXWK 0LQQHVRWD 7KH9LFNVEXUJ&URVVLQJ2SHUDWLQJ%XGJHWIRUWKHILVFDO\HDURI4KDVDWRWDORSHUDWLQJ H[SHQVHDPRXQWRI77,232DQGRWKHUH[SHQVHVRI 57,440 Passed and duly adopted by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota on this 7th day of December 2023. 6239 VICKSBURG CROSSING 2024 Budget Assumptions - Draft REVENUE: Resident Rent Revenue: Is based on the attached income schedule. We propose a rent increase of $10 for all apartment types. We remain sensitive to price increases due to our fixed income population and wanting to remain affordable. The budget projects an average occupancy of 92 units or 97%. Resident Rent Revenue-Section 8: Is based on the current resident roster who receive federal housing voucher. HRA – Subsidy (tax levy): The subsidy is budgeted this year at $50,000. Garage Income: Is based on 68 spaces at a rental rate of $60 a month each. Guest Suite Revenue: Is based on 30 nights annually at $70/night, which is historically achievable. We anticipate slowly returning to our past amount of rental revenue from the guest suite. Application Fee Revenue: We pass on the expense incurred for rental verification (credit check & criminal background check). We are budgeting 16 $35 verification fees this year. The corresponding expense is included in the Legal and Other Professional line item. Transfer Income: Is based on 2 transfers per year at $500 each. Investment Income: Is based on estimates provided by City of Plymouth Finance Department. Late Fees: We did not budget any late fees. Miscellaneous Revenue: Includes storage space revenue based on $10/month/space, charges for extra key fobs and security deposit amounts withheld for damages incurred. No increase to this line item is budgeted. OPERATING EXPENSES: Property Administration: Manager Salary This figure includes a 4% increase. 40 Maintenance Salary is based on a full-time position. The position is budgeted at 40 hours/week regular time and 2 hours per week overtime to account for emergency calls. Each building has a full-time maintenance technician who works primarily at that location. Payroll Tax is budgeted at 8% of the total of all salaries. It includes FICA, FUTA & SUTA. This represents a reduction in the percentage calculation to realign to historical figures. Health Insurance includes healthcare, dental, and life. Health, dental and life insurance are provided to full-time employees if they wish to participate. The employee is responsible for paying 20% of the premium for health and is provided dental and life free of charge. Family coverage is 100% employee paid. The healthcare benefit plan changed May 1, 2023. The amount is based on current premiums as of September 2023 with a 9% increase in May. Worker’s Compensation Insurance premium is estimated based on wages. Employee Costs include ADP fees, help wanted ads, background checks for new employees. Seminars/Training we have budgeted $200 for attendance at MN Multi-Housing conference. Bank Charges are estimated based on the current year to date. This includes the online resident payment portal charges. Dues, Subscriptions & Memberships are based on fees for Costco membership. License & Permit are based on fees for the dwelling license, elevator license and boiler license. Employee Mileage is estimated based using past year. The current team is not tracking mileage and requesting reimbursement as former staff members did. We feel it is prudent to allocate funds in the event they begin requesting reimbursement. Postage/Overnight Delivery is an estimate based on current year to date. This includes mailing brochures to prospects. Printing is an estimate based on the current year to date. This line item would include letterhead, envelopes, business cards etc. as needed. Management Fees increases are alternated each year with Plymouth Towne Square. Vicksburg Crossing will increase by 4% in 2024. 41 Legal and Other Professional Fees is an estimate based on conducting background checks for new residents (1 per month at $35 each) and audit/tax fees as provided by City of Plymouth Finance Department. Telephone includes the cellular phones for the maintenance staff (split with PTS) and the incoming lines for the property along with internet and long-distance expenses. Equipment Repairs/Maintenance/Lease is based on the annual cost of $1,440 for copier maintenance fees ($120 a month) and occasional maintenance on the resident and office computers (budgeting 20 hours). This increase is due to the time required to update the computer in the management office. Office Supplies & Expenses include the office supplies for the office and printer cartridges and some paper for the resident computers. This is a 3% increase over the 2023 budget. Resident Service Expense: Resident Service Expense is an estimate. Expenses include things like monthly musical entertainer, special holiday events, dinner served during National Night to Unite and July Fourth, May month is “celebrate seniors’ month” with extra events planned, and the holiday party is a big celebration. This also includes money for decorations and paper cups, coffee, etc. We are beginning to add many of the resident activities that were canceled due to the pandemic. The amount reflects a 3% increase over the previous year’s budget. Marketing and Leasing: Advertising is an estimate based on ad placement for on-going marketing presence in local papers and the costs for monthly maintenance of a website for Vicksburg Crossing. Housekeeping: Contract Labor is budgeted using the cleaning company contract rate for the current year and additional cleaning for turnovers. We are not budgeting an increase over the 2023 budget. Supplies – cleaning includes paper towels & toilet paper for common area restrooms, trash bags, air freshener, vacuum repair, disinfectant, and other supplies. We are not budgeting an increase over the 2023 budget. Building and Grounds: 42 Contract Labor is Building Maintenance Management contract to assist in the on-call rotation. Budget remains the same as 2023. Cable TV is for the exercise room, community room big screen and Guest suite. It is consistent with historical increases. Electric is based on the trailing 12 months with a slight increase. Gas reflects a 3% increase over 2023 actuals and is in line with trailing 12 months activity. We are anticipating a warmer winter and smaller increase in rates. Water and Sewer is based on a slight increase over trailing 12 months due to the potential to experience another extremely dry and/or hot year. Water Softener is based on trailing 12 months and reflects a slight increase over 2023 budget. Doors, Keys, Windows are for window replacement/repairs, garage door repairs, key fobs and any other lock/door repairs. Fire System Service includes costs to test, inspect, monitor and service the fire suppression system, fire extinguishers and front entry system. Lawn Care/Snow Removal is based on pricing received from contractor and estimate for snow removal based on history. Work includes spring cleanup, weekly mowing, weed control, spring/fall shrub trimming, parking lot sweeping. Pest Control includes quarterly treatments and a small amount for extra treatments/inspections. Trash Removal is based on the current year. This also includes the occasional extra charges for disposal of light bulbs and appliances. We have a large increase due to a higher volume of recycling. Unit Turnover includes carpet cleaning and stretching, paint, blinds and plumbing supplies, etc. for apartments that are being re-leased. We continue to see increased costs of turns due to the age of the building and the length residents have been in their apartments. We are budgeting 10 turns at $5100. Elevator Repairs and Maintenance includes a contract for maintenance, plus a contingency for service calls that may not be covered by the maintenance contract. Repairs & Maintenance includes window washing, garage sweeping and power washing, appliance repairs, plumbing repairs, service contract for generator, including updating the controller, common area carpet cleaning of all common areas (full building anticipated each year), carpet cleaning for those living in their apartments longer than 3 43 years, repairs to the exterior, professional exterior tree decorating for the holiday and all other misc. repairs. Building & Grounds Supplies includes common area paint and repairs, all outdoor plantings and related supplies, holiday decorations and other misc. supplies (i.e., furnace filters for all apartments quarterly). As the building ages there are more miscellaneous items we need for repairs. HVAC Supplies & Repair includes all HVAC supplies, repairs and maintenance contract with Owens. Miscellaneous Unbudgeted B&G Expense is a contingency figure for unexpected issues. Non-Departmental Expenses: Property and Liability Insurance is based on current rates $24,476 for liability with a with a decrease in August at renewal. A 2-year rate was negotiated, but fees/taxes for both years had to be paid at 2022 renewal. $21,000 is estimated for property insurance. Property Taxes are based on 5% of the estimated annual 2022 income for dwelling units (approx. $1,185,320) which is payable in 2023. Non-Capital Expenses: • Landscaping $1,000 some shrubs and trees that need to be replaced. Capital Expenses: • Elevator Car 2 door upgrade $9,890 • MagicPak Replacement $65,000 • Concrete Replacement $10,000 Reserve Replacement Funding: Remains at $72,000 for 2023 44 VICKSBURG CROSSING 2024 BUDGET Percentage Percentage 96 INDEPENDENT UNITS - rentable, 96 constructed 2022 2023 2023 2024 Difference Difference ACTUAL Jan-June BUDGET BUDGET Budget 24 Budget 24 TOTALS ACTUALS TOTALS TOTALS Actual 22 Budget 23 UNITS OCCUPIED 93 93 92 92 -1%0% PERCENTAGE OCCUPIED 99%99%97%97%-2%0% INCOME APARTMENT RENTAL REVENUE 1,240,383$ 633,195$ 1,246,541$ 1,250,797$ 1%0.34% APARTMENT RENTAL REVENUE-COUNTY 31,563$ 17,688$ 27,324$ 35,328$ 12%29% HRA SUBSIDY-TAX LEVY 45,000$ 22,500$ 45,000$ 50,000$ 11%11% GARAGE RENTAL 47,068$ 24,350$ 48,960$ 48,960$ 4%0% GUEST SUITE REVENUE 3,410$ 900$ 2,100$ 2,100$ -38%0% APPLICATION FEE REVENUE 490$ 70$ 560$ 560$ 14%0% TRANSFER FEE REVENUE 1,000$ -$ 1,000$ 1,000$ 0%0% INVESTMENT INCOME 5,427$ 14,424$ 5,000$ 5,000$ -8%0% MISCELLANEOUS REVENUE 8,670$ 2,333$ 3,480$ 3,480$ -60%0% TOTAL INCOME 1,383,011$ 715,460$ 1,379,965$ 1,397,225$ 1%1% OPERATING EXPENSES PROPERTY ADMINISTRATION: MANAGER SALARIES 68,471$ 35,305$ 71,000$ 73,800$ 8%4% MAINTENANCE SALARIES 55,454$ 28,017$ 58,760$ 62,296$ 12%6% PAYROLL TAXES 9,140$ 4,397$ 10,381$ 10,888$ 19%5% HEALTH INSURANCE 22,361$ 6,590$ 24,710$ 12,872$ -42%-48% WORK COMP INSURANCE 2,420$ 941$ 1,920$ 2,220$ -8%16% EMPLOYEE COSTS 1,370$ 520$ 1,110$ 1,110$ -19%0% SEMINARS/TRAINING 112$ 35$ 150$ 150$ -25%0% BANK CHARGES 1,191$ 535$ 1,320$ 1,320$ 11%0% DUES & SUBSCRIPTIONS 60$ -$ 65$ 65$ 8%0% LICENSES, PERMITS 876$ 876$ 906$ 906$ 3%0% MILEAGE REIMBURSEMENT 34$ -$ 120$ 120$ 253%0% POSTAGE/OVERNIGHT DELIVERY 85$ 23$ 120$ 120$ 41%0% PRINTING 248$ 227$ 180$ 225$ -9%25% MANAGEMENT FEES 57,588$ 28,794$ 57,583$ 59,892$ 4%4% LEGAL & OTHER PROFESSIONAL FEES 6,388$ 75$ 2,676$ 2,460$ -61%-8% TELEPHONE EXPENSE 6,228$ 3,282$ 6,360$ 6,600$ 6%4% EQUIP REPAIRS/MAINT/LEASE 7,996$ 3,196$ 2,640$ 4,000$ -50%52% OFFICE SUPPLIES & EXPENSES 1,392$ 786$ 1,416$ 1,464$ 5%3% TOTAL PROPERTY ADMINISTRATION 241,414$ 113,599$ 241,417$ 240,507$ 0%0% RESIDENT SERVICE: RESIDENT SERVICE EXPENSES 7,009$ 2,188$ 6,450$ 6,575$ -6%2% MARKETING & LEASING: ADVERTISING 464$ -$ 500$ 500$ 8%0% TOTAL MARKETING & LEASING 464$ -$ 500$ 500$ 8%0% HOUSEKEEPING: CONTRACT LABOR 18,792$ 8,386$ 21,600$ 21,600$ 15%0% CLEANING SUPPLIES 997$ 600$ 1,860$ 1,860$ 87%0% TOTAL HOUSEKEEPING 19,789$ 8,986$ 23,460$ 23,460$ 19%0% BUILDINGS & GROUNDS: CONTRACT LABOR 6,576$ 1,838$ 10,800$ 10,800$ 64%0% CABLE TV EXPENSE 2,960$ 1,695$ 3,036$ 3,240$ 9%7% UTILITIES-ELECTRIC 27,838$ 14,627$ 27,400$ 28,500$ 2%4% UTILITIES-GAS 32,582$ 18,448$ 32,000$ 32,900$ 1%3% UTILITIES-WATER & SEWER 19,259$ 9,526$ 18,700$ 20,300$ 5%9% WATER SOFTENING EXPENSE 1,276$ 704$ 1,776$ 1,824$ n/a 3% DOORS, KEYS & WINDOWS 245$ 576$ 780$ 840$ 243%8% FIRE SYSTEM SERVICE 7,890$ 1,203$ 6,270$ 6,600$ -16%5% LAWN CARE/SNOW REMOVAL 30,149$ 15,230$ 23,200$ 27,300$ -9%18% PEST CONTROL 652$ 561$ 860$ 880$ 35%2% TRASH REMOVAL 21,237$ 13,154$ 21,132$ 26,280$ 24%24% UNIT TURNOVER 49,695$ -$ 51,000$ 51,000$ 3%0% ELEVATOR REPAIRS & MAINT 8,057$ 3,631$ 8,220$ 8,280$ 3%1% REPAIRS & MAINTENANCE 29,378$ 22,754$ 25,900$ 28,450$ -3%10% 45 VICKSBURG CROSSING 2024 BUDGET Percentage Percentage 96 INDEPENDENT UNITS - rentable, 96 constructed 2022 2023 2023 2024 Difference Difference ACTUAL Jan-June BUDGET BUDGET Budget 24 Budget 24 TOTALS ACTUALS TOTALS TOTALS Actual 22 Budget 23 BUILDING & GROUNDS SUPPLIES 11,590$ 2,890$ 17,500$ 18,000$ 55%3% HVAC SUPPLIES & REPAIR 7,840$ 3,261$ 10,000$ 10,300$ 31%3% MISC UNBUDGETED BUILDINGS & GROUNDS -$ -$ 12,000$ 12,000$ n/a 0% TOTAL BUILDINGS & GROUNDS 257,224$ 110,098$ 270,574$ 276,694$ 8%2% OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 41,183$ 20,684$ 43,009$ 64,846$ 57%51% PILOT (payment in lieu of taxes)62,500$ 32,178$ 64,350$ 64,650$ 3%0% TOTAL OTHER OPERATING EXPENSES 103,683$ 52,862$ 107,359$ 129,496$ 25%21% TOTAL OPERATING EXPENSES 629,583$ 287,733$ 649,760$ 677,232$ 8%4% NET OPERATING INCOME / (LOSS)753,428$ 427,727$ 730,205$ 719,993$ -4%-1% OTHER EXPENSES: DEPRECIATION EXPENSE 317,640$ 158,820$ 317,640$ 298,514$ -6%-6% AMORTIZATION EXPENSE 9,246$ (13,950)$ 26,486$ 26,486$ 186%0% INTEREST EXPENSE 212,085$ 114,356$ 140,790$ 127,440$ -40%-9% RESERVE/REPLACE/CAP EX EXPENSE 151,370$ 70,752$ 105,000$ 105,000$ -31%0% CONTRIBUTIONS FROM PLY TOWNE SQ -$ -$ TOTAL OTHER EXPENSES:690,341$ 329,978$ 589,916$ 557,440$ -19%-6% NET INCOME:63,087$ 97,749$ 140,289$ 162,553$ 158%16% PERCENT OF INCOME 5%14%10%12%155%14% CASHFLOW ADJUSTMENTS: DEPRECIATION 324,742$ 158,820$ 317,640$ 298,514$ -8%-6% AMORTIZATION (3,173)$ (13,950)$ 26,486$ 26,486$ -935%0% RESERVE/REPLACE/CAP EX EXPENSE 11,404$ 70,752$ 105,000$ 105,000$ 821%0% PRINCIPAL ON DEBT (450,000)$ (450,000)$ (420,000)$ (470,000)$ 4%12% NET CASHFLOW:(53,940)$ (207,381)$ 169,415$ 122,553$ -327%-28% TRANSFER TO RESERVE REPLACEMENT 72,000$ 36,000$ 72,000$ 72,000$ 0%0% OPERATING RESERVE (125,940)$ 97,415$ 50,553$ -140%-48% 46 VICKSBURG CROSSING 2024 BUDGET draft 95 INDEPENDENT UNITS - rentable, 96 constructed BUDGET 2024 MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALS UNITS OCCUPIED 92 92 91 92 92 92 92 92 93 92 93 93 92 PERCENTAGE OCCUPIED 97%97%96%97%97%97%97%97%98%97%98%98%97% INCOME APARTMENT RENTAL REVENUE 103,861 104,016 102,661 104,016 103,981 103,981 103,861 103,981 105,526 103,981 105,406 105,526 1,250,797 APARTMENT RENTAL REVENUE-COUNTY 2,944 2,944 2,944 2,944 2,944 2,944 2,944 2,944 2,944 2,944 2,944 2,944 35,328 HRA SUBSIDY-TAX LEVY 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 4,167 50,000 GARAGE RENTAL 4,080 4,080 4,080 4,080 4,080 4,080 4,080 4,080 4,080 4,080 4,080 4,080 48,960 GUEST SUITE REVENUE 140 140 140 140 140 280 140 140 140 140 280 280 2,100 APPLICATION FEE REVENUE 35 35 70 35 35 70 35 35 70 35 35 70 560 TRANSFER FEE REVENUE 500 0 0 0 0 0 500 0 0 0 0 0 1,000 INVESTMENT INCOME 417 417 417 417 417 417 417 417 417 417 417 417 5,000 MISCELLANEOUS REVENUE 290 290 290 290 290 290 290 290 290 290 290 290 3,480 TOTAL INCOME 116,433 116,088 114,768 116,088 116,053 116,228 116,433 116,053 117,633 116,053 117,618 117,773 1,397,225 Prepared by Grace Mgmt, Inc.Copy of VC BUDGET 2024 template SP JB.xls 11/20/2023 47 VICKSBURG CROSSING 2024 BUDGET draft 95 INDEPENDENT UNITS - rentable, 96 constructed BUDGET 2024 MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALS OPERATING EXPENSES PROPERTY ADMINISTRATION: MANAGER SALARIES 6,150 6,150 6,150 6,150 6,150 6,150 6,150 6,150 6,150 6,150 6,150 6,150 73,800 MAINTENANCE SALARIES 5,191 5,191 5,191 5,191 5,191 5,191 5,191 5,191 5,191 5,191 5,191 5,191 62,296 PAYROLL TAXES 907 907 907 907 907 907 907 907 907 907 907 907 10,888 HEALTH INSURANCE 1,018 1,018 1,018 1,018 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 12,872 WORK COMP INSURANCE 185 185 185 185 185 185 185 185 185 185 185 185 2,220 EMPLOYEE COSTS 85 85 85 130 85 85 85 85 85 130 85 85 1,110 SEMINARS/TRAINING 0 0 0 0 150 0 0 0 0 0 0 0 150 BANK CHARGES 110 110 110 110 110 110 110 110 110 110 110 110 1,320 DUES & SUBSCRIPTIONS 0 0 0 0 0 65 0 0 0 0 0 65 LICENSES, PERMITS 0 0 676 30 0 200 0 0 0 0 0 0 906 MILEAGE REIMBURSEMENT 10 10 10 10 10 10 10 10 10 10 10 10 120 POSTAGE/OVERNIGHT DELIVERY 10 10 10 10 10 10 10 10 10 10 10 10 120 PRINTING 20 15 15 15 20 20 20 20 20 20 20 20 225 MANAGEMENT FEES 4,991 4,991 4,991 4,991 4,991 4,991 4,991 4,991 4,991 4,991 4,991 4,991 59,892 LEGAL & OTHER PROFESSIONAL FEES 205 205 205 205 205 205 205 205 205 205 205 205 2,460 TELEPHONE EXPENSE 550 550 550 550 550 550 550 550 550 550 550 550 6,600 EQUIP REPAIRS/MAINT/LEASE 333 333 333 333 333 333 333 333 333 333 333 333 4,000 OFFICE SUPPLIES & EXPENSES 122 122 122 122 122 122 122 122 122 122 122 122 1,464 TOTAL PROPERTY ADMINISTRATION 19,888 19,883 20,559 19,958 20,120 20,170 20,035 19,970 19,970 20,015 19,970 19,970 240,507 RESIDENT SERVICES: RESIDENT SERVICE EXPENSES 225 360 400 350 700 350 340 700 350 750 350 1,700 6,575 MARKETING & LEASING: ADVERTISING 0 500 0 0 0 0 0 0 0 0 0 0 500 TOTAL MARKETING & LEASING 0 500 0 0 0 0 0 0 0 0 0 0 500 HOUSEKEEPING: CONTRACT LABOR 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 21,600 CLEANING SUPPLIES 155 155 155 155 155 155 155 155 155 155 155 155 1,860 TOTAL HOUSEKEEPING 1,955 1,955 1,955 1,955 1,955 1,955 1,955 1,955 1,955 1,955 1,955 1,955 23,460 Prepared by Grace Mgmt, Inc.Copy of VC BUDGET 2024 template SP JB.xls 11/20/2023 48 VICKSBURG CROSSING 2024 BUDGET draft 95 INDEPENDENT UNITS - rentable, 96 constructed BUDGET 2024 MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALS BUILDING & GROUNDS: CONTRACT LABOR 900 900 900 900 900 900 900 900 900 900 900 900 10,800 CABLE TV EXPENSE 270 270 270 270 270 270 270 270 270 270 270 270 3,240 UTILITIES-ELECTRIC 1,900 1,900 1,900 2,000 2,500 3,000 3,000 3,000 3,000 2,500 1,900 1,900 28,500 UTILITIES-GAS 5,100 4,500 3,700 2,100 1,500 500 500 500 2,500 3,000 4,500 4,500 32,900 UTILITIES-WATER & SEWER 1,400 1,500 1,500 1,500 1,750 1,900 1,950 1,950 1,900 1,750 1,600 1,600 20,300 WATER SOFTENING EXPENSE 152 152 152 152 152 152 152 152 152 152 152 152 1,824 DOORS, KEYS & WINDOWS 70 70 70 70 70 70 70 70 70 70 70 70 840 FIRE SYSTEM SERVICE 1,400 185 185 1,120 185 185 185 2,400 185 190 190 190 6,600 LAWN CARE/SNOW REMOVAL 4,000 3,000 2,400 1,300 3,500 1,300 1,200 1,300 1,300 2,000 2,000 4,000 27,300 PEST CONTROL 0 0 175 90 0 175 90 0 175 0 175 0 880 TRASH REMOVAL 2,190 2,190 2,190 2,190 2,190 2,190 2,190 2,190 2,190 2,190 2,190 2,190 26,280 UNIT TURNOVER 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 4,250 51,000 ELEVATOR REPAIRS & MAINT 690 690 690 690 690 690 690 690 690 690 690 690 8,280 REPAIRS & MAINTENANCE 1,500 1,500 1,500 3,500 3,300 2,450 1,350 4,000 2,500 2,900 1,500 2,450 28,450 BUILDING & GROUNDS SUPPLIES 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500 18,000 HVAC SUPPLIES & REPAIR 850 850 850 850 850 850 850 850 850 900 900 850 10,300 MISC UNBUDGETED BUILDINGS & GROUNDS 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 TOTAL BUILDING & GROUNDS 26,272 23,557 22,332 22,582 23,707 20,482 19,247 24,122 22,532 23,362 22,887 25,612 276,694 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 5,335 5,335 5,335 5,335 5,335 5,335 5,335 5,500 5,500 5,500 5,500 5,500 64,846 PILOT (payment in lieu of taxes)5,388 5,388 5,388 5,388 5,388 5,388 5,388 5,388 5,388 5,388 5,388 5,388 64,650 TOTAL OTHER OPERATING EXPENSES 10,723 10,723 10,723 10,723 10,723 10,723 10,723 10,888 10,888 10,888 10,888 10,888 129,496 TOTAL OPERATING EXPENSES 59,063 56,978 55,969 55,568 57,205 53,680 52,300 57,634 55,694 56,969 56,049 60,124 677,232 NET OPERATING INCOME / (LOSS)57,371 59,111 58,800 60,521 58,849 62,549 64,134 58,419 61,939 59,084 61,569 57,649 719,993 OTHER EXPENSES: DEPRECIATION EXPENSE 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 298,514 AMORTIZATION EXPENSE 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 26,486 INTEREST EXPENSE 10,620 10,620 10,620 10,620 10,620 10,620 10,620 10,620 10,620 10,620 10,620 10,620 127,440 RESERVE/REPLACE/CAP EX EXPENSE 0 35,000 0 10,000 5,000 15,000 10,000 0 30,000 0 0 0 105,000 CONTRIBUTIONS FROM PLY TOWNE SQ 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL OTHER EXPENSES:37,703 72,703 37,703 47,703 42,703 52,703 47,703 37,703 67,703 37,703 37,703 37,703 557,440 NET INCOME:19,667 (13,593)21,096 12,817 16,145 9,845 16,430 20,716 (5,764)21,381 23,866 19,946 162,553 PERCENT OF INCOME 17%-12%18%11%14%8%14%18%-5%18%20%17%12% CASHFLOW ADJUSTMENTS: DEPRECIATION 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 24,876 298,514 AMORTIZATION 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 2,207 26,486 RESERVE/REPLACE/CAP EX EXPENSE 0 35,000 0 10,000 5,000 15,000 10,000 0 30,000 0 0 0 105,000 PRINCIPAL ON DEBT 0 (470,000)0 0 0 0 0 0 0 0 0 0 (470,000) NET CASHFLOW:46,751 (421,509)48,180 49,901 48,229 51,929 53,514 47,799 51,319 48,464 50,949 47,029 122,553 TRANSFER TO RESERVE REPLACEMENT 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 6,000 72,000 OPERATING RESERVE 50,553 Prepared by Grace Mgmt, Inc.Copy of VC BUDGET 2024 template SP JB.xls 11/20/2023 49 Regular Housing and Redevelopment Authority December 7, 2023 Agenda Number:6.3 To:Housing and Redevelopment Authority Prepared by:Andrea Rich, Finance Director Reviewed by:Grant Fernelius, Community and Economic Development Director Item:Plymouth Towne Square 2024 Budget 1. Action Requested: Adopt Resolution 2022-10 approving the 2023 Plymouth Towne Square operating budget 2. Background: Staff has reviewed the budget for Plymouth Towne Square (PTS) submitted by Grace Management for the operation of the property for January 1, 2024 through December 31, 2024, including a current estimate of actual expenditures for 2023. After discussions with internal staff and Grace Management, the attached operating budget is ready for review and approval by the HRA board. Revenue: Overall revenues for 2024 are projected to be $1,110,000. Included in this figure are revenues from tenants, parking stall rentals, application fees, investment income and the HRA tax levy. Tenant rents are anticipated to be $783,700, which is an increase of approximately $6,000 from last year and includes a rent increase of two percent. The subsidy is projected to be $260,000, which is $25,000 more than 2023. Expenditures: Staff has reviewed the 2023 year-to-date financials and contacted our vendors to arrive at the anticipated 2024 expenditures. The proposed operating expenditures are $694,421, which is approximately $48,000 higher than 2023. Reserve/Replacement Account: The 2023 budget anticipates adding $300,000 to our replacement reserve account, which is a large increase compared to last year. Staff continues to review the Reserve/Replacement schedule to ensure that there is sufficient capital set aside to maintain the property over the long term. Staff is proposing a number of capital and non-capital improvements to the building in 2024 including the following: Capital Improvements: 1. Modernize the two elevators ($136,000). 2. Repair to North entry and concrete replacement in multiple areas $16,500. Non-Capital Improvements: 1. Replace 15 stoves ($13,000) 2. Replace 10 refrigerators ($10,000) 3. Refurbish apartment cabinetry ($15,000) 4. Replace 10 air conditioner units ($5,000). The funds for these improvements will come from the building’s replacement reserves. 3. Budget Impact: The operating budget will be covered through a combination of building revenue and the HRA tax levy. 4. Attachments: Housing & Redevelopment Authority Packet PTS Resolution.pdf 50 PTS Budget Assumptions 2024.pdf PTS 2024 Budget Comparison.pdf PTS 2024 Budget.pdf 51 PLYMOUTH HOUSING REDEVELOPMENT AUTHORITY HRA RESOLUTION NO. 2023-09 AUTHORIZING THE 2024 OPERATING BUDGET FOR PLYMOUTH TOWNE SQUARE WHEREAS SXUVXDQW WR 0LQQHVRWD 6WDWXWHV VHFWLRQV WR WKH +5$ $FWWKH&LW\&RXQFLORIWKH&LW\RI3O\PRXWK0LQQHVRWDWKH³&LW\´GHFODUHGWKHQHHGIRUD KRXVLQJ DQG UHGHYHORSPHQW DXWKRULW\ WR IXQFWLRQ LQ WKH &LW\ DQG JUDQWHG WR WKH +RXVLQJ DQG 5HGHYHORSPHQW$XWKRULW\LQDQGIRUWKH&LW\RI3O\PRXWK0LQQHVRWDWKH³$XWKRULW\´DOORIWKH SRZHUVDQGGXWLHVRIDKRXVLQJDQGUHGHYHORSPHQWDXWKRULW\XQGHUWKHSURYLVLRQVRIWKH+5$$FW DQG WHEREAS, WKH$XWKRULW\RZQVDQGRSHUDWHV DVHQLRULQGHSHQGHQW DSDUWPHQWEXLOGLQJ QDPHG3O\PRXWK7RZQH6TXDUHDQG WHEREAS,WKH$XWKRULW\LVUHTXLUHGWRDGRSWDQRSHUDWLQJEXGJHWIRU3O\PRXWK7RZQH 6TXDUHDQG WHEREAS *UDFH 0DQDJHPHQW ,QF WKH +5$¶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assed and duly adopted by the Board of Commissioners of the Housing and Redevelopment Authority in and for the City of Plymouth, Minnesota on this 7th day of December, 2023. 4852 PLYMOUTH TOWNE SQUARE 2024 Budget Assumptions – Draft REVENUE: Resident Rent Revenue is based on July 2023 average rent per unit of $667 plus a 2% increase. We budget 96 occupied units to allow for turnover time & rent fluctuations based on new resident’s rent rate which is driven by income. The rental increase will go into effect on January 1, 2024. The minimum rents are proposed to increase 2% to $471 for a one-bedroom (up $9) and increase 2% to $634 (up $12) for a two-bedroom. The market rate rents are proposed to increase 2% also to $1,060 (up $20) for a one- bedroom and $1,360 (up $27) for a two-bedroom. HRA Subsidy will be $260,000 for the year. Garage Rental is based on 64 stalls leased at $60 a month each. This is the same as Vicksburg Crossing. Guest Room Revenue is based on 10 nights rented per year at $65 a night. This amenity has not totally rebounded to pre-pandemic levels of usage but it has increased. Laundry Revenue We are budgeting based on 2023 revenue. Transfer Fee Income is budgeted for one internal move at $500. Application Fee Revenue is budgeted 10 applicants to process (we process a background check on each person occupying an apartment) per year. We pass on the expense for rental verification (credit check & criminal background check) to the prospective resident. The corresponding expense is included in the Legal and Other Professional line item. Investment Income is an estimate provided by City of Plymouth Finance Department. Miscellaneous Revenue includes any forfeited security deposits due to damage beyond normal wear and tear. This is the same as last year. 53 OPERATING EXPENSES: Property Administration: Manager Salary This figure includes a 4% increase. Maintenance Salary is based on a full-time position. The position is budgeted at 40 hours/week regular time and 1 hour per week over time to account for emergency calls. Each building has a full-time maintenance technician who works primarily at that location. Payroll Tax is budgeted at 8% of the total of all salaries. It includes FICA, FUTA & SUTA. Health Insurance includes healthcare, dental, and life. Health, dental and life insurance are provided to full-time employees if they wish to participate. The employee is responsible for paying 20% of the premium for health and is provided dental and life free of charge. Family coverage is 100% employee paid. The healthcare benefit plan changed May 1, 2023. The amount is based on current premiums as of September2023 with a 9% increase in May. Worker’s Compensation Insurance premium is budgeted to increase due to increased wages. Employee Costs include ADP fees, help wanted ads, background checks for new employees. Seminars/Training $200 is budgeted for 2024. Bank Fees are estimated based on the trailing 12 months. Dues & Subscriptions Costco membership. Licenses, Permit & Fees are based on fees for the boiler license, elevator permit and dwelling license fees. Employee Mileage is estimated. The current team is not tracking mileage and requesting reimbursement as former staff members did. We feel it is prudent to allocate funds in the event they begin requesting reimbursement. Postage/Overnight Delivery remains the same estimated using 2023 budget. Printing is for stationery, envelopes and work orders. Management Fees increases are alternated each year with Vicksburg Crossing. Plymouth Towne Square will remain the same this year. 54 Legal and Other Professional Fees is an estimate based on conducting background checks for new residents (10 annually at $35 each), a small amount for legal services, and audit/tax fees as provided by City of Plymouth Finance Department. Telephone includes the cellular phones for the maintenance staff (split with VC) and the incoming lines for the property along with internet and long-distance expenses. The budget reflects estimates are based on the trailing 12 months and the cost of upgrading the current phone system. Equipment Repairs/Maintenance/Lease is based the copier maintenance fees, copy overages and occasional maintenance on the resident and office computers. Budget amount increase is due to the ongoing need for IT support related to resident computer repairs/clean up. Office Supplies & Expenses include the office supplies for the office and printer cartridges and some paper for the resident computers. Increase based on the trailing 12 months. Resident Service Expense Resident Service Expense reflect expenses for the monthly entertainment/birthday celebration, with bigger events scheduled for Valentine’s Day, St. Patrick’s Day, Night to Unite, Halloween and the Holiday party. It also includes the purchase of table decorations. Marketing and Leasing: We continue to budget a nominal amount for 2024. Housekeeping: Contract Labor is budgeted at a 2% anticipated increase for cleaning company contract rate and guest room cleaning. Supplies – Cleaning includes paper towels & toilet paper for common area restrooms, trash bags, air freshener, vacuum repair, disinfectant, supplies for guest suite and other supplies. Buildings and Grounds: Contract Labor is a contract with Building Maintenance Management to handle on-call rotation. The decrease over 2023 budget is due to the response history. Cable TV is based on monthly expense incurred for the TVs in the activity room and exercise room with anticipated increase. 55 Electric is based on trailing 12 months. Gas is based on trailing 12 months. Water and Sewer is based trailing 12 months with a 6% increase as we anticipate another extremely dry and/or hot year. Water Softener is based on a 2% increase over 2023 budget. Doors, Keys and Windows are for the miscellaneous door and window replacement/repairs, garage door repairs/service, keys made and any other lock/door repairs. Fire System Service includes costs to test, monitor and service the fire suppression system (including all manual fire extinguishers,) front entry system and emergency pull cord system. This line item tends to fluctuate significantly year to year but represents a reasonable average. This year we need to perform the 12 year hydrotest on all fire extinguishers at a cost of $2,800. Additionally, we plan to spend $3500 replacing smoke detector batteries w/10-year life lithium batteries. Lawn Care/Snow Removal is based on historical average of several years. Work includes spring clean-up, weekly mowing, weed control, spring/fall shrub trimming, tree trimming, spring parking lot sweeping and snow plowing. We have budgeted an extra $2,000 to replace dead bushes in the front area. Pest Control includes quarterly treatments at $165 plus two addition miscellaneous service calls per year. Trash Removal is based on trailing 12 months. Unit Turnover includes carpet/vinyl replacement or cleaning, contract painter, cabinetry/countertop repair, paint and plumbing supplies, etc. for apartments that are being re-leased or turned over. We are budgeting 9 turns at $4,300 each. Elevator Repairs and Maintenance includes contract for maintenance, plus any service calls that may not be covered by the maintenance contract. Repairs & Maintenance includes garage floor power washing, window washing, carpet cleaning of apartments occupied three years, painting of apartments occupied more than seven years, vinyl/carpet repair/replacement in occupied units, cleaning of common area carpet annually, generator maintenance, plumbing repairs, repairs to the exterior siding, fascia, and roofing and all other misc. repairs. This line item includes an extra $2,300 to repair the lighting of the monument sign on Plymouth Blvd. Building & Grounds Supplies includes common area paint and repairs, light bulbs, plumbing supplies, tractor supplies/repairs, common area blinds, guest suite supplies, 56 holiday decorations and other misc. supplies/tools/equipment. HVAC Supplies & Repair includes all HVAC supplies, repairs and maintenance contract with Owens for the boilers, etc. Miscellaneous Unbudgeted B&G Expense is a contingency figure for the unexpected issues. Non-Departmental Expenses Property and Liability Insurance is based on current rates of $19,281 for liability with an estimated increase of 9% in August at renewal. $50,000 is the estimate for property insurance provided by the City Finance Department. Payment in Lieu of Taxes (PILOT) is budgeted at 5% of 2023 rental dwelling revenue ($774,877 rental revenue estimate) to be paid in 2024. Capital Expenses: • Modernize 2 elevators: $136,000 (carry over from 2023 due to length of time to order parts) • Repair generator (replacement of engine) $37,431or alternatively • Replace generator $75,000 • Repair 2 pillar bases in front entrance: $4,500 • North entry repairs: $8,500 • Concrete replacement multiple areas: 8,000 • Install railing along exterior steps to blvd: $3,000 Non-Capital Expenses: • Replace 15 stoves: $13,000 • Replace 10 refrigerators: $10,000 • Replace 10 air conditioner units: $5,000 • Refurbish apartment cabinetry: $15,000 • Monument sign landscape and repair spot light: $2,300 Reserve Replacement Funding: Remains at $84,000 for 2022. 57 PLYMOUTH TOWNE SQUARE 2024 Budget - Draft Percentage 2022 2023 2023 2024 Difference ACTUAL Jan-June BUDGET BUDGET Budget 24 Budget 24 TOTALS ACTUALS TOTALS TOTALS Actual 22 to Budget 23 UNITS OCCUPIED 95 98 97 96 1%-1% PERCENTAGE OCCUPIED 96%99%98%97%1%-1% INCOME RESIDENT RENTS 752,651 391,297 777,600 783,756 4%1% HRA SUBSIDY 260,000 117,498 235,000 260,000 0%11% GARAGE RENTAL 43,458 24,085 46,080 46,080 6%0% GUEST ROOM REVENUE 390 905 390 650 67%67% LAUNDRY REVENUE 12,087 5,172 12,600 12,300 2%-2% TRANSFER FEE 500 0 500 500 N/A 0% APPLICATION FEE 245 140 630 350 43%-44% INVESTMENT INCOME (52,832)12,980 5,000 5,000 -109%0% MISCELLANEOUS REVENUE 560 2,510 1,200 1,200 114%0% TOTAL INCOME 1,017,059 554,587 1,079,000 1,109,836 9%3% OPERATING EXPENSES PROPERTY ADMINISTRATION: MANAGER SALARIES 62,670 31,973 64,300 66,872 7%4% MAINTENANCE SALARIES 57,321 29,673 56,680 58,880 3%4% PAYROLL TAXES 9,105 4,532 9,678 10,060 10%4% HEALTH INSURANCE 22,581 5,656 24,721 11,660 -48%-53% WORKERS COMP INSURANCE 2,887 891 1,860 2,160 -25%16% EMPLOYEE COSTS 1,370 520 1,170 1,170 -15%0% SEMINARS/TRAINING 112 35 200 200 79%N/A BANK FEES 1,343 648 1,260 1,380 3%10% DUES & SUBSCRIPTIONS 60 60 60 60 0%0% LICENSES, PERMITS & FEES 1,144 165 954 1,059 -7%11% MILEAGE REIMBURSEMENT 0 0 180 180 0%0% POSTAGE/OVERNIGHT DELIVERY 66 0 150 150 127%0% PRINTING 117 0 180 180 54%0% MANAGEMENT FEES 59,820 31,404 62,811 62,808 5%0% PROFESSIONAL FEES 1,157 48 7,000 2,750 138%-61% TELEPHONE EXPENSE 4,686 2,472 4,800 5,100 9%6% EQUIP REPAIRS/MAINT/LEASE 8,021 4,122 9,600 9,000 12%-6% OFFICE SUPPLIES & EXPENSES 912 580 1,080 1,380 51%28% TOTAL PROPERTY ADMINISTRATION 233,372 112,779 246,684 235,049 1%-5% RESIDENT SERVICE EXPENSE RESIDENT PROGRAM/ACTIVITIES 5,268 1,001 5,300 5,485 4%3% MARKETING & LEASING:0 0 120 120 N/A 0% HOUSEKEEPING: CONTRACT LABOR 17,170 8,820 18,420 18,720 9%2% CLEANING SUPPLIES 1,605 395 2,220 2,220 38%0% TOTAL HOUSEKEEPING EXPENSES:18,775 9,215 20,640 20,940 12%1% BUILDINGS & GROUNDS: CONTRACT LABOR 7,136 2,034 7,200 6,600 -8%-8% CABLE TV EXPENSE 1,094 629 1,153 1,400 28%21% UTILITIES-ELECTRIC 24,774 11,334 25,250 25,300 2%0% UTILITIES-GAS 37,352 23,321 36,300 38,850 4%7% UTILITIES-WATER & SEWER 24,826 11,806 25,500 26,950 9%6% WATER SOFTENING EXPENSE 5,300 2,557 5,520 5,640 6%2% DOORS, KEYS & WINDOWS 3,179 0 3,000 3,060 -4%2% FIRE SYSTEM SERVICE 4,491 3,526 7,500 13,500 201%80% LAWN CARE/SNOW REMOVAL 31,670 19,023 30,800 39,500 25%28% 58 PLYMOUTH TOWNE SQUARE 2024 Budget - Draft Percentage 2022 2023 2023 2024 Difference ACTUAL Jan-June BUDGET BUDGET Budget 24 Budget 24 TOTALS ACTUALS TOTALS TOTALS Actual 22 to Budget 23 PEST CONTROL 2,713 3,955 790 790 -71%0% TRASH REMOVAL 23,208 12,719 22,020 25,380 9%15% UNIT TURNOVER 41,541 12,060 32,000 38,700 -7%21% ELEVATOR REPAIRS & MAINT 10,956 7,928 9,300 13,200 20%42% REPAIRS & MAINTENANCE 32,471 30,587 36,000 43,800 35%22% BUILDING & GROUNDS SUPPLIES 16,830 5,041 22,200 19,800 18%-11% HVAC SUPPLIES & REPAIR 9,428 6,103 16,200 16,200 72%0% MISC UNBUDGETED EXPENSE 0 0 12,000 12,000 N/A 0% TOTAL BUILDINGS & GROUNDS 276,969 152,623 292,733 324,070 17%11% OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 46,827 23,542 43,926 69,997 49%59% PAYMENT IN LIEU OF PROPERTY TAX 37,633 18,498 37,000 38,760 3%5% TOTAL OTHER OPERATING EXPENSES 84,460 42,040 80,926 108,757 29%34% TOTAL OPERATING EXPENSES 618,844 317,658 646,403 694,421 12%7% NET OPERATING INCOME / (LOSS)398,215 236,929 432,597 415,415 4%-4% OTHER EXPENSES: DEPRECIATION EXPENSE 208,596 97,950 195,900 210,000 1%7% AMORTIZATION EXPENSE 24,285 0 (6,320)0 -100%-100% INTEREST EXPENSE 6,425 332 10,888 0 -100%-100% RESERVE/REPLACE/CAP EX EXPENSE 0 32,122 204,860 197,431 #DIV/0!-4% HRA SUBSIDY - TIF 0 0 0 0 N/A N/A TOTAL OTHER EXPENSES:239,306 130,404 405,328 407,431 70%1% NET INCOME:158,909 106,525 27,269 7,984 -95%-71% PERCENT OF INCOME 16%19%3%1%-95%-72% CASHFLOW ADJUSTMENTS: DEPRECIATION 208,596 97,950 195,900 210,000 1%7% AMORTIZATION 24,285 0 (6,320)0 -100%-100% RESERVE/REPLACE/CAP EX 0 32,122 204,860 197,431 #DIV/0!-4% PRINCIPAL ON DEBT (325,000)0 (335,000)0 -100%-100% NET CASHFLOW:66,790 204,475 86,709 415,415 522%379% TRANSFER TO RESERVE REPLACE 84,000 42,000 84,000 300,000 257%257% OPERATING RESERVE (17,210)162,475 2,709 115,415 -771%4160% 59 PLYMOUTH TOWNE SQUARE 2024 BUDGET draft 99 INDEPENDENT UNITS BUDGET 2024 MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALS UNITS OCCUPIED 96 96 96 96 96 96 96 96 96 96 96 96 96.00 PERCENTAGE OCCUPIED 97%97%97%97%97%97%97%97%97%97%97%97%97% INCOME RESIDENT RENTS 65,313 65,313 65,313 65,313 65,313 65,313 65,313 65,313 65,313 65,313 65,313 65,313 783,756 HRA SUBSIDY 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 21,667 260,000 GARAGE RENTAL 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 3,840 46,080 GUEST ROOM REVENUE 65 0 65 65 130 0 130 65 65 0 65 0 650 LAUNDRY REVENUE 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 1,025 12,300 TRANSFER FEE 0 0 0 0 0 0 500 0 0 0 0 0 500 APPLICATION FEE 0 35 35 35 35 35 35 35 35 35 0 35 350 INVESTMENT INCOME 417 417 417 417 417 417 417 417 417 417 417 417 5,000 MISCELLANEOUS REVENUE 100 100 100 100 100 100 100 100 100 100 100 100 1,200 TOTAL INCOME 92,426 92,396 92,461 92,461 92,526 92,396 93,026 92,461 92,461 92,396 92,426 92,396 1,109,836 Prepared by Grace Mgmt, Inc.Copy PTS 2024 Budget Template JB LD draft.xls 11/20/2023 60 PLYMOUTH TOWNE SQUARE 2024 BUDGET draft 99 INDEPENDENT UNITS BUDGET 2024 MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALS OPERATING EXPENSES PROPERTY ADMINISTRATION: MANAGER SALARIES 5,573 5,573 5,573 5,573 5,573 5,573 5,573 5,573 5,573 5,573 5,573 5,573 66,872 MAINTENANCE SALARIES 4,907 4,907 4,907 4,907 4,907 4,907 4,907 4,907 4,907 4,907 4,907 4,907 58,880 PAYROLL TAXES 838 838 838 838 838 838 838 838 838 838 838 838 10,060 HEALTH INSURANCE 915 915 915 915 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 11,660 WORKERS COMP INSURANCE 180 180 180 180 180 180 180 180 180 180 180 180 2,160 EMPLOYEE COSTS 90 90 90 90 135 90 90 90 90 90 135 90 1,170 SEMINARS/TRAINING 0 0 0 200 0 0 0 0 0 0 0 0 200 BANK FEES 115 115 115 115 115 115 115 115 115 115 115 115 1,380 DUES & SUBSCRIPTIONS 60 0 0 0 0 0 0 0 0 0 0 0 60 LICENSES, PERMITS & FEES 0 0 0 0 0 165 694 200 0 0 0 0 1,059 MILEAGE REIMBURSEMENT 15 15 15 15 15 15 15 15 15 15 15 15 180 POSTAGE/OVERNIGHT DELIVERY 0 50 0 0 0 50 0 0 50 0 0 0 150 PRINTING 15 15 15 15 15 15 15 15 15 15 15 15 180 MANAGEMENT FEES 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 5,234 62,808 PROFESSIONAL FEES 229 229 229 229 229 229 229 229 229 229 229 229 2,750 TELEPHONE EXPENSE 425 425 425 425 425 425 425 425 425 425 425 425 5,100 EQUIP REPAIRS/MAINT/LEASE 750 750 750 750 750 750 750 750 750 750 750 750 9,000 OFFICE SUPPLIES & EXPENSES 115 115 115 115 115 115 115 115 115 115 115 115 1,380 TOTAL PROPERTY ADMINISTRATION 19,461 19,451 19,401 19,601 19,531 19,701 20,180 19,686 19,536 19,486 19,531 19,486 235,049 RESIDENT SERVICE EXPENSE RESIDENT PROGRAM/ACTIVITIES 65 260 260 150 150 225 225 850 150 1,000 350 1,800 5,485 MARKETING & LEASING:10 10 10 10 10 10 10 10 10 10 10 10 120 HOUSEKEEPING: CONTRACT LABOR 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 1,560 18,720 CLEANING SUPPLIES 185 185 185 185 185 185 185 185 185 185 185 185 2,220 TOTAL HOUSEKEEPING EXPENSES:1,745 1,745 1,745 1,745 1,745 1,745 1,745 1,745 1,745 1,745 1,745 1,745 20,940 Prepared by Grace Mgmt, Inc.Copy PTS 2024 Budget Template JB LD draft.xls 11/20/2023 61 PLYMOUTH TOWNE SQUARE 2024 BUDGET draft 99 INDEPENDENT UNITS BUDGET 2024 MONTH JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTALS BUILDINGS & GROUNDS: CONTRACT LABOR 550 550 550 550 550 550 550 550 550 550 550 550 6,600 CABLE TV EXPENSE 110 110 110 110 120 120 120 120 120 120 120 120 1,400 UTILITIES-ELECTRIC 1,900 1,500 1,800 1,600 2,300 2,300 2,550 2,750 2,650 2,300 1,850 1,800 25,300 UTILITIES-GAS 5,250 6,800 5,800 2,800 2,000 800 600 950 2,300 3,400 3,300 4,850 38,850 UTILITIES-WATER & SEWER 1,950 1,950 1,950 2,200 2,450 2,600 2,600 2,600 2,550 2,200 1,950 1,950 26,950 WATER SOFTENING EXPENSE 470 470 470 470 470 470 470 470 470 470 470 470 5,640 DOORS, KEYS & WINDOWS 255 255 255 255 255 255 255 255 255 255 255 255 3,060 FIRE SYSTEM SERVICE 600 1,700 1,800 1,800 600 600 600 600 600 3,400 600 600 13,500 LAWN CARE/SNOW REMOVAL 3,700 3,700 3,700 3,700 5,700 2,550 2,550 2,550 2,550 2,550 2,550 3,700 39,500 PEST CONTROL 0 0 165 0 65 165 0 65 165 0 0 165 790 TRASH REMOVAL 2,115 2,115 2,115 2,115 2,115 2,115 2,115 2,115 2,115 2,115 2,115 2,115 25,380 UNIT TURNOVER 3,225 3,225 3,225 3,225 3,225 3,225 3,225 3,225 3,225 3,225 3,225 3,225 38,700 ELEVATOR REPAIRS & MAINT 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 1,100 13,200 REPAIRS & MAINTENANCE 3,475 3,475 3,475 3,475 5,575 3,475 3,475 3,475 3,475 3,475 3,475 3,475 43,800 BUILDING & GROUNDS SUPPLIES 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 19,800 HVAC SUPPLIES & REPAIR 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 1,350 16,200 MISC UNBUDGETED EXPENSE 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 1,000 12,000 TOTAL BUILDINGS & GROUNDS 28,150 30,400 29,965 26,850 29,975 23,775 23,660 24,275 25,575 28,610 25,010 27,825 324,070 OTHER OPERATING EXPENSES PROPERTY & LIABILITY INSURANCE 5,773 5,773 5,773 5,773 5,773 5,773 5,773 5,917 5,917 5,917 5,917 5,917 69,997 PAYMENT IN LIEU OF PROPERTY TAX 3,230 3,230 3,230 3,230 3,230 3,230 3,230 3,230 3,230 3,230 3,230 3,230 38,760 TOTAL OTHER OPERATING EXPENSES 9,003 9,003 9,003 9,003 9,003 9,003 9,003 9,147 9,147 9,147 9,147 9,147 108,757 TOTAL OPERATING EXPENSES 58,434 60,869 60,384 57,359 60,414 54,459 54,823 55,713 56,163 59,998 55,793 60,013 694,421 NET OPERATING INCOME / (LOSS)33,992 31,527 32,077 35,102 32,112 37,937 38,203 36,749 36,299 32,399 36,634 32,384 415,415 OTHER EXPENSES: DEPRECIATION EXPENSE 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 210,000 AMORTIZATION EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0 INTEREST EXPENSE 0 0 0 0 0 0 0 0 0 0 0 0 0 RESERVE/REPLACE/CAP EX EXPENSE 68,000 0 68,000 0 0 37,431 11,000 13,000 0 0 0 0 197,431 HRA SUBSIDY - TIF 0 0 0 0 0 0 0 0 0 0 0 0 0 TOTAL OTHER EXPENSES:85,500 17,500 85,500 17,500 17,500 54,931 28,500 30,500 17,500 17,500 17,500 17,500 407,431 NET INCOME:(51,508)14,027 (53,423)17,602 14,612 (16,994)9,703 6,249 18,799 14,899 19,134 14,884 7,984 PERCENT OF INCOME -56%15%-58%19%16%-18%10%7%20%16%21%16%1% CASHFLOW ADJUSTMENTS: DEPRECIATION 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 17,500 210,000 AMORTIZATION 0 0 0 0 0 0 0 0 0 0 0 0 0 RESERVE/REPLACE/CAP EX 68,000 0 68,000 0 0 37,431 11,000 13,000 0 0 0 0 197,431 PRINCIPAL ON DEBT 0 0 0 0 0 0 0 0 0 0 0 0 NET CASHFLOW:33,992 31,527 32,077 35,102 32,112 37,937 38,203 36,749 36,299 32,399 36,634 32,384 415,415 TRANSFER TO RESERVE REPLACE 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 300,000 OPERATING RESERVE 115,415 Prepared by Grace Mgmt, Inc.Copy PTS 2024 Budget Template JB LD draft.xls 11/20/2023 62 Regular Housing and Redevelopment Authority December 7, 2023 Agenda Number:6.4 To:Housing and Redevelopment Authority Prepared by:Grant Fernelius, Community and Economic Development Director Reviewed by:Grant Fernelius, Community and Economic Development Director Item:Discussion and Recommendations for an Inclusionary Housing Policy 1. Action Requested: Staff is requesting that the HRA discuss and then make a recommendation to the City Council on adoption of an Inclusionary Housing Policy. 2. Background: In 2022, the HRA discussed a proposed policy to encourage the development of additional affordable housing in the city. The policy was formulated with the help of several different stakeholder groups and discussed by the HRA at their July, August and September 2022 meetings. At the September 2022 meeting the HRA ultimately chose to delay action on the policy to a future date. The item was on hold until June 2023 when the HRA requested to bring the policy back for further discussion. The policy has been discussed at the August, September and October 2023 HRA meetings. At the October 26 meeting, the City Attorney was asked to review the policy and provide additional commentary on the draft. His comments are included in the attached draft which is a redline document based on the October 26th version. It is important to note that City Attorney has continued concerns about including zoning/land elements in a housing policy document. His recommendation would be for the city council to direct the planning commission to study those provisions and provide recommendations accordingly. The focus of the HRA's policy should be on incentives to create affordable housing. Mr. Mattick does plan to attend the meeting on December 7th to provide additional insights and answer questions. 3. Budget Impact: Previous staff reports suggest that the city could incur some costs for compliance activities related to this policy. Those impacts will need to be considered as part of any future implementation. 4. Attachments: Draft Inclusionary Housing Policy (12-7-2023).pdf 63 1 Inclusionary Housing Policy (HRA Packet: 10/26/202312- 7-2023) The City recognizes the need to provide affordable housing for a broad range of income levels to maintain a diverse population and attract residents to live or work in the city. This Policy has been created to ensure that a reasonable proportion of each new residential Development receiving City financial assistance or requesting Planned Unit Development (PUD) approval include units affordable to low and moderate income households (generally defined as 30% to 80% of Area Median Income). The requirements set forth in this Policy further the City’s Housing Goals and the Comprehensive Plan to create and preserve affordable housing opportunities. I. Definitions 1. City Financial Assistance: The use of public funds of, or administered by, the City for any new residential development, including but not limited to: A. City or HRA funds or fee waivers; B. Community Development Block Grant (CDBG); C. Housing Rehabilitation Fund; D. Revenue Bonds (private activity bonds are negotiable); E. Tax Increment Financing (TIF); F. Tax Abatement; G. Land Write Downs; 2. Discretionary Actions: A decision or action that the City has the authority to take, or request from or make application to other governmental entities to take, that without such action, a proposed development or project would not be possible to be accomplished. Such decisions or actions include, the adoption of or changes, modifications, amendments, exceptions or waivers to: A. Planned Unit Development (PUD) 3.2. Unit(s): Apartment, housing condominium, townhome, duplex, triplex, fourplex or a single-family dwelling. 4.3. Development: Any undertaking to provide residential dwelling Units to which requests for City Financial Assistance. or other Discretionary Actions are made of the City. II. Applicability and Minimum Development Size This Inclusionary Housing Policy applies to all new residential Developments and some existing Commented [SM1]: As an advisory body to the City Council, the HRA should limit their involvement to financial assistance regarding affordable housing. Many of my comments and concerns are alleviated if the Discretionary Actions paragraph is removed. The terms and conditions regarding Zoning approvals should originate from the Planning Commission. Commented [SM2]: Creating requirements in a policy for zoning approvals creates several legal concerns: 1)The requirements for PUD’s are in the City’s zoning ordinance. A zoning ordinance is adopted after review by the Planning Commission and City Council. The proposed policy is being generated by the HRA (advisory to the Council) and is intended to be a binding document. 2)A policy can’t dictate the terms of a zoning ordinance. 3)The statutory authority that allows Cities to adopt zoning ordinances does not explicitly authorize provisions regarding the mandate of affordable housing. Commented [SM3]: There may be a path forward to develop criteria for affordable housing when working with PUD’s (ie: density bonuses and etc.). However, those criteria should be developed by zoning. 64 2 multi-family dwellings that receive either City Assistance that or a Discretionary Action and meets the following thresholds: (1) new Developments that create at least 10 dwelling Units; or (2) reconstruction, expansion or demolition an existing residential multi-family building that will contain after completion of such alteration at least 10 dwelling Units, (3) any change in use of all or part of an existing building from a non - residential use to a residential use that includes at least 10 dwelling Units. III. Affordable Dwelling Units General requirements To ensure affordability, the City requires that (i) a certain percentage of Units in a Development are reserved for and leased or sold to individuals or families of low or moderate-income as described in this section, and (ii) that the rents for such Units remain affordable for such individuals and families, or, in the case of the sale of a Unit, that the sale price at the time of sale is affordable for such individuals and families . (i) Number of Affordable Units A Development that is subject to this Policy shall provide a number of affordable dwelling Units equal to the percentages cited below, times the total number of Units in the Development. The required number of affordable dwelling Units is based on the total number of dwelling Units that are approved by the City. If the final calculation includes a fraction, the fraction shall be rounded to the nearest whole number. (ii) Income Targets The required number of affordable dwelling Units within a residential Development subject to this policy shall be reserved for and either leased to or sold to individuals or families who meet the income thresholds as outlined below. The Developer can select the level of affordability that is appropriate for their project: (1) Rental Developments: A. At least twenty percent (20%) of the Units shall be reserved for and leased to individuals or families whose household income does not exceed sixty percent (60%) of the Area Median Income (AMI); or B. At least ten percent (10%) of the Units shall be reserved for and leased to individuals and families whose household income does not exceed fifty percent (50%) of the Area Median Income; or C. At least five percent (5%) of the Units shall be reserved for and leased to Commented [SM4]: Grant – what is an example of this? If you turn an office building into a housing complex? Commented [G5R4]: Staff deleted this provision for clarity. 65 3 individuals or families whose household income does not exceed thirty percent (30%) of the Area Median Income (AMI). (2) For-Sale Developments: A. At least fifteen percent (15%) of the Units shall be reserved for and sold to individuals or families whose household income does not exceed eighty percent (80%) of the Area Median Income (AMI). (iii) Rent and Sale Price Levels Rental Unit: The monthly rental price for affordable dwelling Units shall include rent and utility costs and shall be based on the applicable Area Median Income (AMI) for the Twin Cities metropolitan area adjusted for bedroom size and calculated annually b y Minnesota Housing for establishing rent limits for the Housing Tax Credit Program. For-Sale Developments: The qualifying sale price for an owner-occupied affordable dwelling Unit shall be based on the applicable amount affordable to household or individual at 80% Area Median Income (AMI) for the metropolitan area and calculated annually by Minnesota Housing for the Impact Fund program. Period of Affordability For rental Developments subject to this Policy, the period of affordability for the affordable dwelling Units shall be twenty-five (25) years. Units of for sale Developments shall be subject to this policy until sold to the income eligible owner(s). Standards for Affordable Rental Units Size and Design of Affordable Units The size and design of the affordable dwelling Units should be consistent and comparable with the market rate Units in the project and are subject to the approval of the City. Exterior/Interior Appearance. The exterior materials and design of the affordable dwelling Units in any Development subject to these regulations shall be indistinguishable in style and quality with the market rate Units in the Development. The interior finish and quality of construction of the affordable dwelling units shall at a minimum be comparable to entry level rental or ownership housing in the City. Construction of the affordable dwelling Units shall be concurrent with construction of market rate dwelling Units. IV. Integration of Affordable Dwelling Units Distribution of affordable housing Units. The affordable dwelling Units shall be incorporated into the overall Development unless expressly allowed to be located in a separate building or a different location approved by the City Council. Affordable dwelling Units shall be distributed equally by bedroom size and throughout the building. Commented [SM6]: If zoning approvals/discretionary approvals remain in the Policy, it is unclear how a Developer would achieve these standards without financial assistance. 66 4 Number of bedrooms in the affordable Units. The affordable dwelling Units shall have a number of bedrooms in the approximate proportion as the market rate Units unless the developer demonstrates the need for a different proportion based upon a documented need for such units within the City . The mix of Unit types, both bedroom and accessible Units, of the affordable dwelling Units shall be approved by the City. Tenants Change of Income Affordable rental dwelling Units shall be rented only to income eligible families during the period of affordability. An income eligible family may remain in the affordable dwelling Unit for additional rental periods as long as the income of the family does not exceed one -hundred forty percent (140%) of the applicable AMI. If the family income exceeds this amount they must be moved to the first available market rate Unit that meets their household size. V. Alternatives to On-Site Development of Affordable Dwelling Units This section provides alternatives to the construction of onsite affordable dwelling Units as a way to comply with this Policy. The alternatives are listed in subsection (3), below. (1) The alternatives must be: A. Approved by the City Council, and B. Agreed to by the applicant in a separate agreement. C. Applicant must show the City acceptable documentation that a formal commitment to the proposed alternative is in place. (2) This Section does not apply unless the applicant demonstrates: A. The alternative provides an amount of affordable moderate-income dwelling Units equivalent or greater to onsite Units in a way that the City determines better achieves the goals, objectives and policies stated in the Housing Goals and Comprehensive Plan; and B. Will not cause the City to incur any net cost as a result of the alternative compliance mechanism. (3) If the conditions in (2) are met, the City may approve one or more of the following options to providing affordable moderate-income dwelling Units that are required by this Policy. A. The dedication of existing market rate Units to permanently affordable moderate-income dwelling Units that are of equivalent quality and size. Existing dwelling Units are approved as suitable affordable housing dwelling units through covenants, contractual arrangements, or resale restrictions. Commented [SM7]: Same concern as previous comment. 67 5 B. Offsite construction of affordable dwelling Units within the City. Offsite construction of units should be located in proximity to public transit service at a site approved by the City. C. Participation in the construction of affordable dwelling Units by another developer on a different site within the City. D. An alternative proposed by the applicant that directly provides or enables the provision of affordable housing Units within the City. VI. Non-Discrimination Based on Rent Subsidies: Developments covered by the policy must not discriminate against tenants paying rent with federal, state or local public assistance, including, but not limited to rental assistance, rent supplements, and Housing Choice Vouchers. VII. Housing Performance Agreement (1) Applicability Developments that are subject to this Policy shall enter into a Housing Performance Agreement as described below, which documents how the developer complies with each of the applicable requirements of this Policy. (2) Approval The Housing Performance Agreement shall be approved by the City. (3) Contents. The Housing Performance Agreement shall include at least the following: A. General information about the nature and scope of the development subject to these regulations. B. For requests to an alternative to on-site provision of affordable housing, evidence that the proposed alternative will further affordable housing opportunities in the City to an equivalent or greater extent than compliance with the otherwise applicable on-site requirements of this Policy. C. The total number of market rate Units and affordable dwelling Units in the development by bedroom size and income threshold. D. The pricing for each affordable ownership dwelling Unit. The pricing of each unit shall be determined at time of approval. At time of sale this price may Commented [SM8]: Enforcement of these agreements without financial assistance is difficult. 68 6 be adjusted if there has been a change in the median income or a change in the formulas used in this ordinance. E. Proposed schedule of individual Unit development (market rate vs. affordable units). F. For owner-occupied units, documentation and specifications regarding the exterior appearance, materials and finishes of the development for each of the affordable dwelling units illustrating that the appearance of affordable Units are comparable to the appearance of the market-rate Units. G. Any and all other information that City staff may request to achieve the Council’s affordable housing goals. VIII. Recorded Agreements, Conditions and Restrictions (1) The Housing Performance Agreement and/or Declaration of Restrictive Covenants shall be executed between the City and Developer, in a form approved by the City Attorney, which formally sets forth Development approval and requirements to achieve affordable housing in accordance with this Policy and location criteria. The Housing Performance Agreement shall identify: A. the location, number, type, and size of affordable housing Units to be constructed; and B. income limitations for the affordable Units; and C. sales and/or rental terms; occupancy requirements; and D. a timetable for completion of the Units; and E. restrictions that will be placed on the Units to ensure affordability; and F. annual rental tenant income and rent reporting requirements; and G. any terms contained in the approval resolution by the City as applicable. (2) The applicant or owner shall execute any and all documents deemed necessary by the City Manager, including, without limitation, a Declaration of Restrictive Covenants and other related instruments, to ensure the affordability of the affordable housing Units in accordance with this Policy. (3) The applicant or owner must record all documents, restrictions, easements, covenants, and/or agreements that are specified by the City as conditions of approval of the application prior to issuance of a building Permit for any Development subject to this Policy. (4) Documents described above shall be recorded in the Hennepin County Registry of Deeds as appropriate. IX. Exemptions The City acknowledges that, in some circumstances, it may prove difficult for a developer to meet 69 7 the standards set forth in this Policy. In cases where a developer can demonstrate, in the sole judgment of the City Council, that the requirements represent an undue burden to their project, the City Council may grant a full or partial exemption from this Policy or may otherwise alter the requirements of this Policy X. State and Federal Law This Policy is not to be interpreted, nor intended to be in conflict with sta te or federal law. If any portion of this Policy is determined to be in conflict, state or federal law will control. Many state and federal law programs provide for similar regulations regarding affordability to Project/Developments. In such instances where participation in state or federal law programs providing financial assistance to a Development results in more strict regulations regarding affordability, such Development will be deemed to have met the requirements of this Policy. Commented [SM9]: This is too vague. The affordability requirements in this policy are expensive. Criteria will need to be developed to determine which Developer 70 Regular Housing and Redevelopment Authority December 7, 2023 Agenda Number:7.1 To:Dave Callister, City Manager Prepared by:Grant Fernelius, Community and Economic Development Director Reviewed by: Item:Staff Updates 1. Action Requested: Receive update from staff on various projects and activities. 2. Background: As requested at the last meeting, staff has prepared the attached memo updating the HRA on various projects and activities involving the Community and Economic Development Department. 3. Budget Impact: N/A 4. Attachments: HRA Updates (December 2023) 71 MEMORANDUM DATE: December 1, 2023 TO: HRA Commissioners FROM: Grant Fernelius, CED Director/HRA Executive Director SUBJECT: Updates for December 2023 As requested, staff has prepared the following updates on projects and activities of the Community and Economic Development Department. Four Seasons Mall There are no new developments to report on the Four Seasons Mall. Staff continues to talk with a developer about a concept plan for the site, but the discu ssions have been preliminary in nature. Prudential Redevelopment Scannell and Roers Co. have submitted their site plan and related land use application s earlier this month, however the application is not deemed complete. Tentatively we are anticipating that the application will be reviewed by the planning commission in January or February 2024. Dietrich Development Earlier this year, Dietrich Development presented a sketch plan for a mixed-use (apartments and retail) project on a vacant parcel of near 10th Avenue and South Shore Drive. This parcel is often referred to the John Allen site, the developer who originally bought the property in 1990’s. The Dietrich proposal includes 330 units of apartments and a small amount of ground floor retail. The developer has submitted their land use application and staff anticipates that the project will be reviewed by the planning commission in January 2024. The developer is also working with the City’s public finance consultant on a potential request for financial assistance. Parkera Development Parkera which redeveloping the former Dundee Nursery site along Highway 55, is requesting an extension of their PUD approval that was originally granted in 2021. The company cited rising 72 interest rates and construction costs as the reason the delay. The company requested a 2-year extension on their PUD approval, which was granted by the City Council on October 24th. The Brooks Apartments Enclave Companies has begun footing and foundation work on a new apartment building near Nathan Lane and Bass Lake Rd. The 219-unit complex is expected to open in late 2024. Basset Creek Apartments Doran Companies continues construction on a new mixed-income apartment building near 6th Avenue and Highway 55 adjacent to the Waterford Plaza shopping center. The 176-unit complex is expected to open in spring 2024. The site plan also includes the construction of shared parking with the adjacent Gage office building, which has gone into foreclosure and receivership. The good news is that the building is under a purchase agreement with another party who has expressed interest in working with Doran to preserve a stand of existing trees next the building and construct the parking in front of the building. Harbor Lane Proposal Doran Companies has acquired three office buildings on Harbor Lane just north of Highway 55 and Fernbrook Lane. The developer is interested in constructing a mixed-use building and plans to present a sketch plan concept for planning commission review in January 2024. Housing Updates • Staff is working Grace Management to replace the back-up generator at Plymouth Town Square. The generator dates to the original building which was constructed in the mid- 1990’s. The generator replacement will be funded out of the capital replacement reserve for the building. • Staff continues to process and implement CDBG funds throughout the community. The First Time Home Buyer program has been fully expended and staff is working to complete the amendment process to allocate additional funding toward this activity. Staff is also working to create a new activity to fund necessary repairs to Plymouth Towne Square . 73 • Staff continues to administer approximately 290 Vouchers throughout the Plymouth Community. In addition, staff is working toward opening the HCV waitlist in spring of 2024. The waitlist was last opened in 2017. Staff is also working to update the Administrative Plan to include required changes to the operation of the HCV Program. The Housing Opportunity Through Modernization Act, (HOTMA) will go into effect January 1st, 2025, and will implement substantial changes to the income and asset calculations for the program participants. Staffing Updates We are pleased to report that for the first time in nearly 15 months the HRA Division is now fully staffed. Most recently two new staff joined the team. Nas Looper was hired as a Housing Specialist this past October and joins Monica Pirrotta who started in a similar role in May. Nas had worked previously for Hennepin County Human Services. Both Nas and Monica work with the HRA’s Housing Choice Voucher clients. In addition, Shelonda Marie-Alves was hired as Housing Coordinator and started earlier this month. Shelonda fills the position that was previously held by Kenny Niemeyer. Shelonda most recently worked in construction management and real estate, but also has worked in the public sector in Florida with federal housing and community development programs. Shelonda will attend the HRA meeting on December 7th and be introduced to the board. We’re very excited to have Nas, Shelonda, and Monica join our new team along with Steven Schmidt (Housing Manager). Commissioner Appointments The City Council is reviewing applications for commission appointments and plans to conduct interviews on December 6th and 12th. Current commissioners Soderberg and Peterson will be considered for re-appointment to 3-year terms. In addition, the Council is also seeking to interview three additional candidates to fill the vacancy left by Aqueelah Whitfield who resigned earlier this year. January 2024 Meeting Just as a reminder, the HRA has requested a special study session for January 24, 2024 (5:30 PM) in advance of the regular meeting to review the HRA’s Strategic Plan and identify priorities for the coming year. A dinner will be provided. 74