From
Jana Mims
Title
Ordinance amending the 2011 Calendar Year Section 8 operating budget(s)
Presenter
William A. Hills, Director of Housing and Neighborhood Services
Recommended Action
Approve
Analysis
This ordinance is the result of a 2011 Weaver and Tidwell, LLP audit recommendation to have the Section 8 budget amended annually to reflect changes in revenues and expenditures from the original Section 8 budget submission.
Historically, budget amendments were not taken before council as the Section 8 budget is presented annually and is based on a combination of historical data and estimated appropriations from the Department of Housing and Urban Development (HUD) Section 8 Program. Policy decisions at the federal level, changes in rental subsidies, and/or changes in the number of clients served due to unforeseen circumstances may require a HUD directed change in the voucher subsidy which in turn will affect the financial component of each voucher.
Accordingly, expenditures may exceed/fall short of the budget during the proposed budget year, but only to the extent this change will be offset by a like change in revenues and/or HUD directed use of designated fund balance for the management and administration of the Section 8 voucher program. HUD monitors the financial activity and unit activity of the Section 8 program each month through required submissions via the Voucher Management System (VMS).
For 2011 Calendar Year (January-December 2011) Section 8 expenditures exceeded the approved appropriation budget and as such are now recommended to be approved for the increase by the City Council. On July 25, 2012 the Finance and Government Committee was briefed on this item, and would agreed with the recommended changes to how the City will submit future Section 8 budget's.
Financial Consideration
The total appropriations increase for 2011 was $4,373,372 (including transfers). Additional revenues of $4,615,216 (including transfers) were received into the Section 8 program from supplemental HUD funding and NON HCV Program Income resulting in a net increase in Section 8 Fund Balance of $241,844 for Calendar Year 2011.
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING THE 2011 CALENDAR YEAR SECTION 8 BUDGET
WHEREAS, the 2011 Weaver and Tidwell, LLP audit recommended to have the Section 8 budget amended annually to reflect changes in revenues and expenditures; and
WHEREAS, expenditures may exceed/fall short of the budget during the proposed budget year; and
WHEREAS, supplemental HUD funding and NON HCV Program Income resulted in a net increase in Section 8 Fund Balance of $241,844 for Calendar Year 2011.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. Approves the amended 2011 Calendar Year Section 8 budget for increased appropriations of $4,373,372 and increased revenues of $4,615,216 for a net increase in the available fund balance (Section 8 Equity) of $241,844.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 21ST DAY OF AUGUST, 2012.