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CITY COUNCIL WORK SESSION
November 05, 2018
4:00 PM, City Council Chambers
MEETING AGENDA
I. Budget Work Session: Grants / APCHA / Smuggler / Truscott II / Aspen Country Inn
P1
2019 Proposed Budget
November 5, 2018
P2I.
2
Grants Follow-Up
Non-Profit Grants –General Fund
•Huts for Vets
o Request: $10,000 In-Kind
o Recommendation: $5,000 Cash
o Sister Cities
o Recommendation: $17,400
Human Services –General Fund
•City Cost Shares with Other Municipalities Through IGA
o COA Share Increases by $44,528
o Initial Recommendations Revised to Maintain Budgeted Amount
P3I.
3
APCHA Funds
Housing Administration Fund (620)
Smuggler Housing Fund (622)P4I.
Housing Administration Fund
4
•City / County Subsidy Need Increases
•Maintenance Reimbursements
Truscott II and ACI Labor Costs
•Property Management Fees
12% of Rental Income
City of Aspen
Subsidy
$396,800
Pitkin County
Subsidy
$396,800
Property
Management
Fees
$468,700
Foreclosures & Other
1st Time Sales
$500,000
Annual
Turnover Sales
$280,500
Maintenance
Reimbursements
$169,450
Other
Revenues
$93,680
Revenues = $2,305,930
2018 2019 2020 2021 2022 2023
$320,350 $396,800 $584,720 596,435 $608,365 $620,515
Increase:24%47%2%2%2%P5I.
Housing Administration Fund
5
•Capital: $990,800
$455,000 Database Project
▪$405K for data collection and scrubbing
▪$50K licensing, maintenance, training
$500,000 Foreclosure (Placeholder)
$35,800 Fleet and IT Network Costs
•Debt Service for New Office Space
Park Central West / Mill Street LeaseAdministrative
$614,090
Overhead
Expenses
$294,380
Property /
Facilities
Maintenance
$233,150
Housing Sales &
Rental Services
$656,530
Transfers
Out
$229,980
Capital
$990,800
Expenditures = $3,018,930
P6I.
Housing Administration Fund
6
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
2018 Forecast 2019 2020 2021 2022 2023
Ending Fund Balance Revenue Expense 12.5% Reserve
Change in Fund Balance: ($713,000)P7I.
APCHA Fees
•Most fees have not changed over time
Example: Sales Fees
APCHA’s 2% Sales Fee not changed since early 1980’s
Historically, free market commissions range from 5-6% of sales price
Sales Process is a 10 week process taking, on average, over 30 hours of staff time
•Most fees do not cover administrative/operating expenses and overhead
•Fees are not tied to inflation and have remained static over time
•APCHA could generate ~$150K+ in revenues by reconciling fees to costs
•APCHA Board will begin review of fee adjustments before end of year
7 P8I.
Smuggler Housing Fund
8
•APCHA Owned Property
11 Units, All Catetory 1
•Rent Placeholder Increase: 1.5%
Rental Income
$72,000
Other Revenues
$7,430
Revenues = $79,430
P9I.
Smuggler Housing Fund
9
•Base Budget Increase: 1.7%
•No Supplementals
•Capital: $9,670
Appliance / hot water / carpet & vinyl
replacement for 2 units
Administrative
$13,310
Property / Facility
Maintenance
$41,380
Capital
$9,670 Property
Management
Fees
$8,640
Expenditures = $73,000
P10I.
Smuggler Housing Fund
10
Net Change to Fund Balance: $6,430
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
2018 Forecast 2019 2020 2021 2022 2023
Ending Fund Balance Revenue Expense 12.5% Reserve
P11I.
11
Other Component Unit Related Properties
Truscott II Affordable Housing Fund (641)
Aspen Country Inn Affordable Housing Fund (642)P12I.
Truscott II Housing Fund
12
•LLLP Owns Property (April 2001)
87 Units; Lower Income Focus
Tax Credit Partner Bought Out in 2018
•Rental Rate Placeholder Increase: 1.5%
•State Section 8 Housing Assistance
Rental Income
& Section 8
Subsidy
$1,020,500
Intrafund Advance
(150 Fund)
$4,930,000
Other
Revenues
$40,330
Revenues = $5,990,830
P13I.
Truscott II Housing Fund
13
Administrative and
Property Mgmt
$207,120
Property / Facility
Maint. & Capital
$330,510
Debt Service
$4,999,260
Expenditures = $5,536,890
•Debt Outstanding
CHFA Mortgage (May ‘03): $4.9M
Subordinate City Note (Sep. ‘01): $2.9M
•Large Capital Has Been Deferred
Future Re-development Estimated in 2021
P14I.
Truscott II Housing Fund
14
Net Change to Fund Balance: $453,940
$0
$2,000,000
$4,000,000
$6,000,000
$8,000,000
$10,000,000
$12,000,000
$14,000,000
2018 Forecast 2019 2020 2021 2022 2023
Ending Fund Balance Less Req. Reserve Revenue Expense 12.5% Reserve
P15I.
Aspen Country Inn Housing Fund
15
Rental Income &
Section 8 Subsidy
$408,530
Other (Laundry,
Late Fees, Misc)
$8,650
Revenues = $417,180 •40 Units Serving Low Income Population
•LLLP Owns Property (Oct 2016)
Managing General Partner: City of Aspen
Investment Limited Partner: Boston Capital
Administrative Partner: APCHA
•Placeholder Rental Rate Increase: 1.5%P16I.
Aspen Country Inn Housing Fund
16
•Annual Debt Payments: $138K
▪CHFA Loan: $2,388,000
•Management Fees: 12% of Rent
•Low Maintenance and No Capital
Administrative
$26,730
Property /
Facility
Maintenance
$151,120
Property
Management
Fees
$49,020
Debt Service
$138,280
Expenditures = $365,150
P17I.
Aspen Country Inn Housing Fund
17
Net Change to Fund Balance: $52,030
$0
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
$350,000
$400,000
$450,000
$500,000
2019 2020 2021 2022 2023
Adjusted Ending Fund Balance Revenue Expense Required Operating Reserve
Positive Cash Flow:
•Increases Replacement Reserve: $14K
•Pays Porition of Deferred Developer Fee to City
P18I.
Aspen Country Inn Housing Fund
18
‘‘WaterFall’’ For Disbursement of Annual Operating Income
▪1st: Replacement Reserve: $14,000 /yr
▪2nd: Past Due Payments to Investment Limited Partner (N/A Unless Get Behind)
▪3rd: Asset Management Fee ($3,000/yr)
▪4th: Replenishment of Operating Reserve (maintain $122,190 target)
▪5th: Deferred Developer Fee (City owed $186,000)
▪6th: Partnership Management Fee: ($3,000/yr)
▪7th: Repayment of Seller Loan ($2.7M to City)
▪8th: Repayment of City Original Loan ($3.9M to City)
▪9th: Excess 90% Investment Partner, 9.95% General
Partners, and 0.05% to Class B Limited Partners
P19I.