From
Cheryl Estes, CPA, CGFO
Title
Ordinance amending the 2013 and 2014 Calendar Year Section 8 Budgets
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.
Financial Consideration
On October 14, 2014 amendments were presented to the F&G Committee and recommended for approval by City Council for the (1) prorated Calendar Year 2013 (October 2013 - December 2013); and, (2) prorated Calendar Year 2014 (January 2014 - September 2014).
(1) For the prorated Calendar Year 2013 (October 2013 - September 2013), Section 8 expenditures exceeded the allocated budget authority by $394,324 (including transfers out), and revenues fell short of the prorated budget authority by $319,397 (including transfers in). The principal reason behind the reduction in fund balance for the last three months of Calendar Year 2013 is due to a HUD mandate to recapture locally held reserves.
(2) For the prorated Calendar Year 2014 (January - September 2014), Section 8 expenditures are projected to exceed allocated budget authority by $838,577, and revenues are projected to fall short of the allocated budget authority by $58,487 (including transfers in). The principal reason for the reduction in fund balance for the first nine months of Calendar Year 2014 is, again, due to the HUD mandate to recapture locally held reserves. ...
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