meeting will be recorded and videoed by our very own John Gold. Okay, we call to order. Roll call. Miss Voness here.
>> Mr. Golds >> here. >> So, first item on your agenda would be minutes of October 29th. I make a motion to accept the minutes October 29th. All in favor?
>> Do you second it? Yeah. Okay. bills are some of the build up for 2025. >> Not too many bills here. >> Nope. Too many bills. >> Spending no money.
>> Make a motion. Second. >> All in favor? Pass. you'd like to report. >> All right. So, for president uh president of Terrace, we currently have one um vacancy. We've been uh doing
office a normal office activity getting ready to do our reertifications for um January. All tenants are notified that we're going to be reertifying them um come January, February, March. And their rent this year is going to be uh usually it changes in March. This year it's going to change in April. It gives us an
extra month because we were fighting to get 60 research done between January and then the middle of February. So now we're using February too. So we have the whole month. So the rent change will go from March to April this year. Um as far
as the electrical project, uh it's still going every day. Um thank God I'm there cuz every day we've had problems with it. Um we did call DHCD. They're aware or uh HLC. they're aware of um the troubles that are going on with it. So, I'm not sure if they're going to have
another meeting. >> Yeah, it's not the contractor at all. The contractor's been great. It's just >> Yeah, we had problems with the architects from day one. So, um apparently the the next the problem with the box was a big issue. They had to get a bigger box to fit the wires to go in
the box, but now they're realizing that they don't even have an enough electric coming into the project to support what they're doing. So, um, this is kind of just came up new. >> Too many hands in the pot >> and we're going to deal with it as it comes up. And DHCD is aware of the
problem. As far as Gfield Street, Mike's pretty much, um, finished the bathroom over there. So, we have the second bathroom fully remodeled. >> Um, are you done or you still? >> It's done. >> Yep. So, so now we have two total remodels of the bathrooms at 689.
>> Mhm. and um she'll explain to you in the budget some of the things that are going on. Um we did have to spend some extra money there this year, but she'll go over it with you when she comes out for the budget. But as far as that, it's been, you know, just kind of slow besides the electrical project and
finishing up the um the empty unit and normal office stuff. >> Can I have a motion to accept it directly? Motion to accept. >> I'll second the process. >> Kim, we're all set.
>> You want to do new business? >> Yep. >> Kim's going to come out and explain the fiscal the new fiscal year 2026 budget right here. >> Yep. You sit right there. Right in the hot spot. >> Somebody look familiar. >> This is Kim from Fanny Well. She's our um the accountant. So, she's going to go
over the um the fiscal year budget of 2026. Okay. So, we're actually already in month five of the fiscal year. Um the state usually comes out with the budget guidelines around September or October. Um so, unfortunately, we're always a
little bit behind. Um but what the state does is they build in certain um restrictions and increases which are built in here that I will go over. Um the first page is a lot of numbers. I apologize, but I like to kind of give
you um a comparison between last year's budget and then also last year's actual. So that's kind of why there's so many different columns here. The current budget is under this pink section. Um this is the current year what we're estimating. U basically all the
activity. It kind of mirrors the financial statements. you periodically see all the categories are the same. Um the takeaway u from this page is this yellow box down at the bottom. Um for the 4,0001 which is the six I should say
I should say this property the 667 um we're going to be adding to reserves about $33,000 for the year. what we're predicting. Um, in the case of the 689, we're budgeting a use of reserves of almost $4,000. And
I'll go over why um, as I continue with the budget. And we still have a little bit of the management program um, mostly due to Mike um, still doing work for Swansea. So, we are still billing for his hours there um, and also moving
expenses to um, um, that cover the labor that he does there. and then a little bit of benefits and insurance to go along with it. So next year will be the first year in three years that that column will be gone next year. The reason it's still there is because Mike's still doing work there
>> just for seven months. >> Blame me, right? >> So yeah, no, it's a good thing you take away the expense of some other programs. Um so that's a a kind of a very big snapshot of of the budget. Um a big piece if you move to page three
is your operating subsidy. So you know the nature of the industry tenant rent does not bring in enough income to run the program. So the state subsidize that with operating subsidy. Um they basically fill the gap between what you do not earn from tenant rent. But
they're not going to let you just spend anything you want. They put a cap to your spending and that's called the annual which is the annual non-utility expense level. Last year uh number two there last year was 300,000. They're
increasing that spending cap 5,000 this year which brings you to $315,58 line number three. So they're saying they're going to allow this housing authority to spend that amount of money on non-utility expenses. They always
cover 100% of your utilities, which is great. Um, in a sense, you don't really need to budget utilities because if you're way over, they're covering it anyway. If you're way under, they're only going to cover what you spend. Um, so down number five, we're predicting
$98,000 of of utilities. Again, if you're over, then they're going to pay that anyway. Um, so that annual number I was talking about is the non-utility amount. Um, and that factors into the budget as well. Um, number eight, you also have what's called direct
reimbursements. A Kushnet's fortunate enough to have a resident service coordinator grant, which Nancy U mostly takes care of, and that offers, you know, services. There's a huge umbrella of of things um that she does. Um, so
that grant covers her salary and benefits as well as a spending um a spending amount of $5,000 that she can spend towards resident services. So that >> also share that with too. >> Yes.
>> Yeah. That's a regional um RSC grant. >> Yep. And then um that la that second line for legal support, EOHLC requires legal expenses to be budgeted, but they'll cover 65,000 sorry 65,000 $6,500
worth of legal expenses. If you don't spend that, they don't send it to you. Um if you spend more than that, they're going to cover 6,500 of it. So that's built into the subsidy. So, the math there shakes out to $130,000 that the state's kind of agreeing they'll they'll
pay in the subsidy. It's never going to be exactly this number because this again is based on budgeted numbers, but the the way it's calculated is is this way. Um, so we're estimating um a subsidy income of $130,000. All right. If you move to page four,
this kind of brings in the expenses side of the budget. So, now we kind of know what our our income is. Um, you know, we have the tenant rent, we have the subsidy. How are we going to use that money? So, again, lots of numbers I should have highlighted. Um, you know, one of these columns says fiscal year 26
budget. Um, so for instance, admin salaries is 64,000. Legal, we are budgeting that 6,500 so on and so forth. So, these uh categories should look familiar to you. They're what's in the financial statements. Um,
and what this page is showing is um that income from that first from the first page in the yellow box, we're estimating bottom left corner the $33,000 that we're going to add to reserves this year. So even even with um you know all these expenses we're still
going to add to reserves as a percentage wise. on the lower right hand column. The state requires that you're above a 35% reserve percentage, meaning your reserve can cover 35% of your expenses. Uh we're
estimating 78% at the end of the year, which is kind of the perfect place to be. You don't want to be over a thousand 100% you lose subsidy, but you have to be over the 35%. So 78 is actually a great place to be. Um what that means is
if you even if you don't make the $32,000 increase um your your your reserves are still healthy. Um and kind of actually a good segue into that is the 689 budget where it's a little different. You'll see the lower
leftand corner is a negative number. So we're going to be using some of our reserves that have built up over time this year. The main reason for that is a tree removal. Um, a tree rem had to be removed. It was about, um, I think it was 3,100 3,100.
>> We had a tree fall during one of the storms. So, we had to have a tree company come in and remove it. >> Um, which is exactly what you use reserves for really is these kind of unforeseen events. So, you you build up your reserve over time and then if something like a tree falls, you have the means to to fix it. So, the main
reason for that negative number this year is because you we're using it to cover that tree expense. But at the end of the um the year, the lower right hand corner, your reserves are still at $53,000, which is very healthy for a 689 program
as well. Um I won't really go over the management too much. It's um again basically kind of 7 months of of labor um which you'll charge the Somerset Housing Authority for um and they'll they'll cover that um
Swansea. >> Good cuz Swansea is covered by Somerset Somerset's pay you know cuz Somerset's responsible for Swansea. >> Okay. It is kind of a weird thing but again the last year you'll kind of see this page in the budget that's going to be
um the rest of these pages are kind of or not kind of are the detail behind the big categories the salaries uh labor admin other so I won't spend too much on each one you can certainly you know ask questions at any point um so this page
seven are the the admin department the state's allowing a 3% increase every year they kind of put a limit on it. Last year I think was f one year was five um anyway this year is three. So we've built in um 3% for the RSC and
then um because of the loss of the management program um the admin assistant position in dollar amount has gone down but that's because there's nothing going to the management um program. Um the next page is the labor
So again, this is um Mike and his replacement. Um again, it's kind of strange to see it go down from last year, but again, it's because he used to have this management program that was taking away some expenses. Um without that, it's just going to the the two remaining programs,
the 40001 and the 689. Um so most of this is the same. It's just the shifting of of who's who's holding the position. Um the next page, employee benefits. These are pretty much based on actuals.
Um the biggest piece being um health insurance that the um housing authority covers and then the retirement. Um again, these are kind of based on actuals and they for the most part go up every year unfortunately,
but the categories are the same as last year. Nothing's really changed there. Same with insurance. So these are your insurance premiums. Thankfully um property insurance is the same as last year. If you remember um last year from
the year before spiked I forget how much percent like 12%. That was a lot. >> It was huge. >> So thank this is a big relief that it didn't go up at all. So the 292 per unit is the same as last year. Um and then you have the truck insurance or the you
know vehicle insurance and workers comp. the same a lot of numbers on this page. This is all the admin other expenses. So, office supplies, copier, paper, you know, that sort of thing. Um, your payroll service,
fees you pay the payroll, um, everything that makes the the office here run basically. Um, I didn't change too much from last year because you I think it came in under budget, so I didn't feel the need to kind of tweak too many. Um, accounting went up a
little bit. the management fee to Somerset went up a little bit. Um, but I kept everything else the same again because you were um under budget last year a little bit. Moving on, this is maintenance. So, this
is u maintenance supplies and then also kind of your routine maintenance contracts. I kept this exactly the same as last year because again, you came in under budget. Um, so the idea is you will probably be about the same as last
year, so I didn't tweak too much here or anything. Um, moving right along, page 13 are the utilities. Again, I just built in kind of an increase because since everything increases over time, but I could be 100%
off the mark here, but subsidy is going to cover whatever you pay. So, it's it's always good to have an estimate, but it really doesn't matter too much um what the actuals come in in that regard. Page 14 is just how I calculate the
income other than subsidy coming in. So, I just took the the first quarter, September, October, November, I'm sorry, July, um August and September rent and annualize that. Uh for the 4,0001, the 689, you're under contract. Um,
so that's kind of the midpage. That's the income coming in from the tenants. Then you get a little bit of interest from your bank accounts. And then lastly, you bring in some laundry income from the 401, which we just saw. And you have some mod money coming in from the
689. So that's some money coming in to the programs. And lastly, we have um the extraordinary maintenance. So, this is uh closely, you know, this is very similar to the contract costs, but they're kind of more
the oneoff expenses that you either know are coming or you're or you think might um come up during the year. So, for both programs, we have um a truck repair, the tree removal, and then a um furnace repair that we're going to um schedule.
Um so, those are kind of the extraordinary maintenance. Halfway down the page are the um kind of small equipment purchases, basically appliances, and you have a water heater there. So, these again are kind of more um
above and beyond what you um have in the contract costs, the routine contract cost. So, hopefully that was a you know, not too confusing overview of what the budget is. Are there any
questions or concerns? Actually, that was a very great explanation. Okay, good. >> Okay, good. >> I could talk a lot more about it, but I won't. Nice job. >> Okay, thank you. So, I'm going to start reading off the motion um and then I'll
read off the motion and somebody can um uh initiate the motion and then we'll have a second. So um a motion move to propose operating budget for state aided h housing of the efficient housing authority chapter 689 for fiscal year
and then 630 2026 showing the total revenue of $35,215 and total expenses of $39,145 thereby requesting a subsidy of zero and further that the executive director's total annual s salary is $0 for fiscally
year ending 6:30 2026 to be submitted to the Department of Housing and Community Development for its review and approval. The motion which upon roll was passed by a vote of so I just need a motion. I need a second and I need a roll call.
>> I'll make a motion. >> Have a second. >> Second. >> All in favor? >> I motion pass. >> Okay. And then we'll go for um this the six uh the 40001 which is 667. Um a motion moved that the proposed operating
budget for state aided housing of the efficient housing authority chapter 41 for fiscal year ending 63026 showing total revenue of $489,885 and total expenses of $4,000 I'm sorry $457,38
thereby requesting a subsidy of $130,42 and further that the executive director's total annual sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal sal salary of zero for fiscal year ending 6:30 2026 be submitted to the department of housing and community development for its review and approval.
>> I need a motion, a second and second motion. >> Second. All in favor? >> All right. And I just before you leave, if each board member can sign this so I can go ahead and submit it. >> We have to vote on accepting this
>> um to Yes. So, we uh this is the vote to accept that. >> Yes. >> Yep. >> I'll hold on. I'm not there yet. >> All right. I think that >> Yes. Y Thank you. That's all right. Still here question.
>> Just >> She's really good at that. >> Yes, she was really good. a great description. Utah got to be pretty good. >> Yeah. >> Yeah. So, just sign underneath. Yep. >> All right. So, that's it for that.
>> That's it. >> That's it for new business. >> Okay. Now, maintenance report. >> We need a motion to accept the new business. >> Okay. Motion to fix up.
New business to make a motion. Second motion pass. >> She summed it up. I finished up the Garfield suite bathroom. I'm working on that um apartment out to try to get that done as soon as possible. Um I brought
the truck in for repairs. The manifolds were rotten, the bolts and stuff, so we just fixed that. Uh I brought the lawn mower in. The mower deck can't be rebuilt. So, there's a couple expenses there, but everything I think is pretty good. Running's pretty smooth right now.
Been following up on the electric project there. A lot of questions and stuff like that. Otherwise, that that's about it. >> And the maintenance for the truck was actually added to this budget. So, it won't affect anything because we already put it in here.
that have a motion accept maintenance report. >> Second all >> I wonder why I was talking to uh the microphone.
>> It put his business is uh on the old business should be up here. >> Okay, we can move that. >> That's why I skipped over that old. >> Okay, we can do that. Okay. No tenants out. Nobody.
All right. Could we have next meeting Wednesday the 17th of December? >> Yep. Wednesday 17th. Everybody having a problem with that or >> any other business? >> Make a motion to adjourn.
>> Motion. Motion's adjourned. We got a second. >> Second. >> All in >> favor.