From
Cheryl Estes, CPA
Title
Ordinance to convert 2014 and 2015 Calendar Year Section 8 Budgets to a Fiscal Year 2014-2015 Budget and to amend the original Fiscal Year 2014-2015 budget based on actual results of operations for the same fiscal period.
Presenter
William A. Hills, Director, Housing and Neighborhood Services
Recommended Action
Approve
Analysis
The Section 8 Program was enacted as part of the Housing and Community Development Act of 1974. Each year, local housing agencies are required to establish budgets on a calendar year basis according to congressional appropriations which are determined on a calendar year basis. In order to convert calendar year budgets to fiscal year budgets, budget amendments are required (1) for the periods of January - September and (2) for the periods October - December. These amendments will allow for an accurate Budget-To-Actual presentation in the city's CAFR which is reported on a fiscal year basis.
On February 18, 2014, the Calendar Year 2014 budget was presented to and approved by the F&G Committee and the City Council (CC 14-3419).
On October 14, 2014, the proposed Fiscal Year 2013-2014 budget was presented and approved by the F&G Committee and the City Council (CC 14-4048). The approved Fiscal Year 2013-2014 budget included nine months (9/12) of the Calendar Year 2014 approved budget.
On February 3, 2015, the Calendar Year 2015 budget was presented to and approved by the F&G Committee and City Council (CC 15-4345).
At this time, Housing and Neighborhood Services is requesting (1) approval of the proposed Fiscal Year 2014-2015 budget, which includes three months (3/12) of the approved Calendar Year 2014 and nine months (9/12) of the approved Calendar Year 2015 budget; and (2) approval of necessary amendments of the fiscal year budget based on actual results of operations for the same fiscal period.
Exhibit 1 compares 3/12 of the approved Calendar Year 2014 budget with actual revenues and expenditures for the same fiscal period (October 2014 - September 2014). For this prorated period, actual expenditures exceeded budgeted expenditures by $(214,708), and actual revenues exceeded budgeted revenues by $(274,978).
Exhibit 2 compares 9/12 of the approved Calendar Year 2015 budget with actual revenues and expenditures for the same fiscal period (January 2015 - September 2015). For this prorated period, budgeted expenditures exceeded actual expenditures by $3,603,190, and budgeted revenues exceeded actual revenues by $2,859,380.
Exhibit 3 combines Exhibits 1 and 2 and represents the proposed Fiscal Year 2014-2015 budget, and compares actual revenues and expenditures for the same fiscal period (October 2014 - September 2015). Based on the results of this comparison, it is necessary to amend the original fiscal year budget as follows:
Financial Consideration
300192 Section 8 Admin - overall increase in fund balance of $148,634 which represents an increase in budgeted revenues of $190,200 (includes transfers in), and an increase in budgeted expenditures of $41,566 (includes transfers out).
300292 Section 8 Voucher Program - overall increase in fund balance of $299,061 which represents a decrease in budgeted revenues of $3,061,180 (including transfers in), and a decrease in budgeted expenditures of $3,360,241.
300492 Non-HCV Fund - overall increase in fund balance of $158,614 which represents a decrease in budgeted revenues of $98,155 (including transfers in), and a decrease in budgeted expenditures of $256,769 (including transfers out).
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AMENDING THE 2013 AND 2014 CALENDAR YEAR SECTION 8 BUDGET
WHEREAS, the Section 8 budget is approved on a calendar year basis according to congressional appropriations; and
WHEREAS, these budget amendments will allow for an accurate Budget-To-Actual presentation in the city's CAFR issued on a fiscal year basis for 2014/2015.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS:
SECTION 1. The 2014 Calendar Year Section 8 prorated budget for three months (October 2014 - September 2014) and the 2015 Calendar Year Section 8 prorated budget for nine months (January 2015 - September 2015) as shown in Exhibits 1 and 2 are approved.
SECTION 2. The original Fiscal Year 2014-2015 budget is amended as presented in Exhibit 3.
PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAND PRAIRIE, TEXAS, ON THIS THE 5TH DAY OF JANUARY, 2016.