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HomeMy WebLinkAbout01/26/2010WHEAT RIDGE HOUSING AUTHORITY AGENDA January 26, 2010 CITY COUNCIL CHAMBERS 4:00 P.M. Prior to the start of this meeting a short reception will be held to honor Lena Rotola, former Housing Authority member and former City Council person. Individuals with disabilities are encouraged to participate in all public meetings sponsored by the City of Wheat Ridge. Call Heather Geyer, Public Information Officer at 303-235-2826 at least one week in advance of a meeting ifyou are interested in participating and need inclusion assistance. A. Call Meeting to Order B. Roll Call C. Approval of the Minutes: October 27, 2009 D. Officers Reports E. Public Forum F. New Business 1. Resolution 01-2010, Presentation & Approval of 2010 Budget 2. Resolution 02-2010, Establishing a designated public place for the posting of meeting notices as required by the Colorado Open Meetings Law 3. Authorization to hire Swanhorst & Company to perform Audit 4. Rehab Partner 5. Strategic Planning Session 6. Election of Officers G. Unfinished Business J. Other K. Adjournment VANA WHEAT RIDGE HOUSING AUTHORITY MINUTES October 27, 2009 1. CALL MEETING TO ORDER The meeting was called to order by Chair B Council Chambers of the Wheat Ridge Mur Avenue, Wheat Ridge, Colorado. 2. ROLL CALL Authority members present: Chery Kathy Lena1 at 4:00 p.m. in the Ci d1dine. 2500 West 29 Others present: Payne; Deputy Director Nelson, Cornerstone Realty Maybin, Cornerstone Realty ,azzeri, Recording Secretary 3. APPROVAL OF MINUTES: Aug"ust 25, 2009 It was moved by Kathy Nuanes and seconded by Lena Rotola to approve the minutes of August 25, 2009 as presented. The motion carried 4-0 with Janice 4. There were no officers reports. 5. PUBLIC FORUM There were no individuals present to address the Authority. 6. NEW BUSINESS 1. Update on 41st Avenue Property Housing Authority Minutes - 1 - October 27, 2009 Larry Nelson reported that there is a buyer for this property. The closing should occur at the end of November. He is still waiting for a response from Consolidated Mutual Water as to whether or not they will allow a party-wall agreement as opposed to a condominium agreement. FHA will no longer finance condominiums in certain situations such as this one. 2. Update on Rehab Partner Sally Payne reported that she has been Stevens as the Authority's rehab partn finalized within the next month or two 3. Article in Connections Sally Payne reported that an article hi'g will appear in the nextpublication of C of the article to Authority members for 7. 8. UNFINISHED BUSINESS Larry Nelson reported-that there are time for another Housing Authority OTHER agreement with Eric -nt should be the Housing Authority is. She presented a draft properties available at this son and seconded by Kathy Nuanes that the ings be canceled unless a need arises to months. The motion carried 5-0. 9. It was movesl_b Kathy Nuanes and seconded by Lena Rotola to adjourn the meeting at 425 p.m. The motion carried 5-0. Cheryl Brungardt, Chair Ann Lazzeri, Secretary Housing Authority Minutes -2- October 27, 2009 WHEAT RIDGE HOUSING AUTHORITY RESOLUTION NO. 01 Series of 2010 TITLE: A RESOLUTION ENACTING A BUDGET AND APPROPRIATION FOR THE YEAR 2010 WHEREAS, C.R.S. 29-1-103 (1) of the Local Government Budget Law of Colorado requires certain local governmental entities to prepare and adopt an annual budget; and WHEREAS, the City Attorney has opined that the provisions of the Budget Law apply to the Authority; and WHEREAS, notice of adoption of this 2010 budget and appropriation was given by the Housing Authority in compliance with C.R.S. 29-1-106; and WHEREAS, in compliance with the provisions of the Budget Law regarding notice, objections, and hearing, a public hearing was held on this Budget and Appropriation for 2010 by the Authority on January 26, 2010. THEREFORE, BE IT RESOLVED by the Wheat Ridge Housing Authority as follows: Section 1. The year 2010 budget as shown on Exhibit 1 attached hereto is hereby approved. Section 2. Sources of revenue for the Authority are sales of units rehabilitated by the Authority, Community Development Block Grant funds, and interest earned. Section 3. Total expenditures of the Authority do not exceed available revenues and beginning fund balance. Section 4. A certified copy of this resolution shall be filed with the Division of Local Government. ADOPTED the day of 2010. WHEAT RIDGE HOUSING AUTHORITY Chairperson ATTEST: Secretary to the Authority Wheat Ridge Housing Authority Proposed Budget Ordinary Income/Expense Income 500 - Sale of units 530 Rent 535 . Interest income 549 Miscellaneous Income Total Income Coal of Goods Sold 551 Beginning Cost of Units 555 Purchase of Unite Summary Rehabilitation Caste 599 - Ending Cost of Units Total COGS Gross Profit Expense 700 Selling Coate 704 Surer incentives 705 {Iasi ng Costs 710 . Commissions 720 - Homeowners Association Capital 750. Accounting & Legal 762 Bank Charges 771 City Reimbursement 775 Conference & Meeting Expense 777 Contract Services 787 Dues, Books & Subscriptions 802 . Gardening & Maintenance 803-Grant. 804 - Homeowners Association Due. 807 Insurance 820-Mi.cell...... 825 Office Supplies 832 Past.,. 833 -Printing & Copies 843 Repairs 853 Supplies 857 Taxes-Real Estate 865 Trash Removal 872 Utilities Total Expense Net Ordinary Income Other lncomelExpense Other Income 564'CDBG Grant Other(Expensa) 810 Interest Expense Total Other Expense Net Other Income/Expense Net Income Beginning Fund Balance Ending Fund Balance Unaudited Proposed 2008 Projected 2008 2010 Actual 2009 Budget Budget 299,000 520,500 560,405 330,000 900 0 0 0 10,973 7,520 12,000 8,000 0 0 500 500 310.873 528,020 572.905 338.500 1.125.600 745,500 915,268 311,556 0 0 0 0 99.059 101,556 142,000 0 -745.500 -311,556 -415.372 0 479.159 535,500 641.896 311.556 -168,286 -7,480 -68991 26,944 3,406 950 5.981 602 0 7,092 12,000 4,496 2.168 3,502 3,604 2,220 14,352 24.984 22,001 15,840 40 200 0 500 8,200 8200 , 8,000 8,000 1.243 1,145 1,200 1,200 4,258 2,525 5,000 4,000 133 209 500 1.500 0 0 0 0 100 0 500 100 4.208 0 5,600 1,500 300 0 0 0 932 250 3.600 0 1,942 1,988 1,800 2,000 548 0 0 500 25 10 250 250 13 0 100 100 0 0 0 0 19.585 6,191 2,500 5,000 65 0 250 250 -551 0 1,000 0 0 0 500 500 6,337 3.470 5.000 3.500 67,304 60.716 79,386 52.059 -235,590 -68,196 -148,377 -25,115 0 0 0 0 4,542 0 0 0 4,542 0 0 0 -4,542 0 0 0 -240,132 48,196 448,377 -25,115 1,455,192 1,215,059 1,396,165 1,146,863 1,215,060 1,146,863 1,247,808 1,121,748 20)0 Wheat Ridge Housing Authority 01121/10 Balance Sheet As of December 31, 2009 Dec 31,'09 ASSETS Current Assets Checking/Savings 113 • 1st Bank - Checking (284) 120 • 1st Bank - Money Market 830,502 Total Checking/Savings 830,218 Other Current Assets 155 -41st Avenue Project 311,556 Total Other Current Assets 311,556 Total Current Assets 1,141,775 Other Assets 273 • Note Receivable - Baca 8,288 Total Other Assets 8,288 TOTAL ASSETS 1,150,063 LIABILITIES & EQUITY Liabilities Current Liabilities Accounts Payable 300 • Accounts Payable 3,200 Total Accounts Payable 3,200 Total Current Liabilities 3,200 Total Liabilities 3,200 Equity Net Income (72,697) 465 • Fund Balance 1,219,559 Total Equity 1,146,863 TOTAL LIABILITIES & EQUITY 1,150,063 Page 1 Wheat Ridge Housing Authority 01/21110 Parfet Project All Transactions Dec 24,'09 % of Income Ordinary Income/Expense Income 500 • Sale of Units 335,500 100% Total Income 335,500 100% Cost of Goods Sold 555 - Purchase of Units 237,000 71% 562 • Acquisitions Costs 172 0% 565 • Condo Map 4,248 1 % 567 • Construction Period Maintenance 219 0% 568 • Construction Management 5,145 2% 571 • Homeowners Association 2,500 1 % 573 • Rehabilitation - Appliances 2,850 1 % 576 • Rehabilitation - Exterior 11,480 3% 580• Rehabilitation-Various 111,187 33% 581 - Supplies/Materials 293 0% Total COGS 375,093 112% Gross Profit -39,593 -12% Expense 700 • Selling Costs 2,251 1% 705 • Closing Costs 2,109 1% 710 • Commissions 16,104 5% 720 • Homeowners Association Capital 40 0% 802 • Gardening & Maintenance 3,841 1% 804 • Homeowners Association Dues 486 0% 832 • Postage 44 0% 843 • Repairs 26,112 8% 853 • Supplies 65 0% 672 - Utilities 4,540 1% Total Expense 55,592 17% Net Ordinary Income -95,185 -28% Other Income/Expense Other Expense 910 • Interest Expense 19 0% Total Other Expense 19 0% Net Other Income -19 -0% Net Income 55,204 48% Page 1 Wheat Ridge Housing Authority 01121110 Allison Project All Transactions Dec 24,'09 % of Income Ordinary Income/Expense Income 500 • Sale of Units 375,000 100% 530 • Rent 713 0% Total Income 375,713 100% Cost of Goods Sold 555 - Purchase of Units 385,000 102% 560 • Acquistion Appraisal Fees 700 0% 562 • Acquisitions Costs 1,845 0% 667 • Construction Period Maintenance 264 0% 568 • Construction Management 3,559 1 % 571 • Homeowners Association 1,750 0% 573 - Rehabilitation -Appliances 45 0% 580 • Rehabilitation -Various 71,171 19% 581 • Supplies/Materials 490 0% Total COGS 464,824 124% Gross Profit -89,111 -24% Expense 700 • Selling Costs 950 0% 704 • Buyer Incentives 7,092 2% 705 • Closing Costs 2,051 1% 710 • Commissions 18,000 5% 720 • Homeowners Association Capital 200 0% 802 • Gardening & Maintenance 1,816 0% 804. Homeowners Association Dues 7 0% 843 • Repairs 2,163 1% 857 • Taxes - Real Estate -541 -0% 872 • Utilities 4,191 1% Total Expense 35,929 10% Net Ordinary Income -125,040 -33% Other Income/Expense Other Income 564 • CDBG Grant 112,500 30% Total Other Income 112,500 30% Net Other Income 112,500 30% Net Income -12,640 -3% Page 1 Memorandum TO: Wheat Ridge Housing Authority THROUGH: Sally Payne, Deputy Director, Wheat Ridge Housing Authority FROM: Kathy Field, Administrative Assistant DATE: January 22, 2010 SUBJECT: Resolution Designating a Public Place for the Posting of Notices of Public Meetings Pursuant to legislative amendments to the Colorado Open Meeting Law at Section 24-6- 402(2)(c), Housing Authority is to annually designate at its first meeting for each calendar year a public place for the posting of notices for meeting. By properly designating a place for posting meeting notices, a public entity will be deemed to have given full and timely notice of any meeting so long as notice thereof was posted as the designated place at least twenty-four hours in advance thereof. Attached is Resolution 02, Series of 2010, which identifies the lobby of the Municipal Building and the City's website as the designated place for posting of meeting notices. Attachment 1. Resolution 02, 2010 WHEAT RIDGE HOUSING AUTHORITY RESOLUTION NO. 02 Series of 2010 TITLE: A RESOLUTION ESTABLISHING A DESIGNATED PUBLIC PLACE FOR THE POSTING OF MEETING NOTICES AS REQUIRED BY THE COLORADO OPEN MEETINGS LAW BE IT RESOLVED BY THE WHEAT RIDGE HOUSING AUTHORITY THAT: Section 1. The lobby of the Municipal Building and the City's website shall constitute the designated public place for the posting of meeting notices as required by the Colorado Open Meetings Law. The Executive Director or his designee shall be responsible for posting the required notices no later than twenty-four (24) hours prior to the holding of the meeting. All meeting notices shall include specific agenda information, where possible. DATED this day of 2010. WHEAT RIDGE HOUSING AUTHORITY Chairperson ATTEST: Secretary to the Authority _ Swanhorst & Company LLC Ccri5ed Public Awovnmms January 20, 2010 Board of Directors Wheat Ridge Housing Authority 7500 West 29th Avenue Wheat Ridge, Colorado 80033 We are pleased to confirm our understanding of the services we are to provide to the Wheat Ridge Housing Authority. We will audit the basic financial statements of the Authority, as of and for the year ended December 31, 2009. Also, the management's discussion and analysis, if prepared, will be subjected to certain limited procedures, but will not be audited. Audit Objective The objective of our audit is the expression of an opinion as to whether your financial statements are fairly presented, in all material respects, in conformity with accounting principles generally accepted in the United States of America and to report on the fairness ofthe additional information referred to in the first paragraph when considered in relation to the basic financial statements taken as a whole. Our audit will be conducted in accordance with auditing standards generally accepted in the United States of America. Our audit will include tests of the accounting records and other procedures we consider necessary to enable us to express such an opinion. If our opinion on the financial statements is other than unqualified, we willfully discuss the reasons with you in advance. If, for any reason, we are unable to complete the audit or are unable to form or have not formed an opinion, we may decline to express an opinion or to issue a report as a result of this engagement. Management Responsibilities Management is responsible for establishing and maintaining effective internal controls. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of the controls. The objectives of internal control are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorizations and recorded properly to permitthe preparation of financial statements in accordance with generally accepted accounting principles. You are also responsible for all management decisions and functions, for designating an individual with suitable skill, knowledge, or experience to oversee our financial statement preparation services and accepting responsibility for the financial statements. Management is responsible for making all financial records and related information available to us. We understand that you will provide us with such information required for our audit and that you are responsible for the accuracy and completeness of that information. You are also responsible for adjusting the financial statements to correct material misstatements and for affirming to us in the representation letter that the effects of any uncorrected misstatements aggregated by us during the current engagement and pertaining to the latest period presented are immaterial, both individually and in the aggregate, to the basic financial statements taken as a whole. 8400 E. Crescent Parkway • Suite 600 • Greenwood Village, CO 80111 • (720) 528-4306 Fax: (720) 528-4307 Board of Directors Wheat Ridge Housing Authority Page 2 Management is responsible for establishing and maintaining effective internal controls, including monitoring ongoing activities; for the selection and application of accounting principles; and for the fair presentation of the financial statements in conformity with accounting principles generally accepted in the United States of America. Management is responsible for the design and implementation of programs and controls to prevent and detect fraud, and for informing us about all known or suspected fraud involving management, employees who have significant roles in internal control, and others where the fraud could have a material effect on the financial statements. You are also responsible for informing us of your knowledge of any allegations of fraud or suspected fraud received in communications from employees, former employees, regulators, or others. In addition, management is responsible for identifying and ensuring that the Authority complies with applicable laws and regulations and for taking timely and appropriate steps to remedy any fraud, illegal acts, or violations of contracts or grant agreements that we may report. With regard to using the auditors' opinion, you understand that you must obtain our prior written consent to reproduce or use our report in bond offering official statements or other documents. Audit Procedures-General An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Therefore, our audit will involvejudgment about the number of transactions to be examined and the areas to be tested. We will plan and perform the audit to obtain reasonable rather than absolute assurance about whether the financial statements are free of material misstatement, whether caused by error or fraud. Because an audit is designed to provide reasonable, but not absolute, assurance and because we will not perform a detailed examination of all transactions, there is a risk that material misstatements may exist and not be detected by us. In addition, an audit is not designed to detect immaterial misstatements or violations of laws or regulations that do not have a direct and material effect on the financial statements. However, we will inform you of any material errors and any fraud that comes to our attention. We will also inform you of any other violations of laws or regulations that come to our attention, unless clearly inconsequential. Our responsibility as auditors is limited to the period covered by our audit and does not extend to matters that might arise during any later periods for which we are not engaged as auditors. Our procedures will include tests ofdocumentary evidence supporting the transactions recorded in the accounts, and may include tests of the physical existence of inventories, and direct confirmation of receivables and certain other assets and liabilities by correspondence with selected individuals, creditors, and financial institutions. We will request written representations from your attorneys as part of the engagement, and they may bill you for responding to this inquiry. At the conclusion of our audit, we will also require certain written representations from you about the financial statements and related matters. Audit Procedures-Internal Control In planning and performing our audit, we will consider the internal control sufficient to plan the audit in order to determine the nature, timing, and extent of our auditing procedures for the purpose of expressing our opinion on the Authority's financial statements. An audit is not designed to provide assurance on internal control or to identify deficiencies. However, we will inform the governing board of any matters involving internal control and its operation that we consider to be significant deficiencies or material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a deficiency, or combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Board of Directors Wheat Ridge Housing Authority Page 3 Audit Procedures-Compliance Identifying and ensuring that the Authority complies with laws, regulations, contracts, and agreements is the responsibility of management. As part of obtaining reasonable assurance about whetherthe financial statements are free of material misstatement, we will perform tests of the Authority's compliance with applicable laws and regulations and the provisions of contracts and agreements. However, the objective of our audit will not be to provide an opinion on overall compliance and we will not express such an opinion. Audit Administration, Fees, and Other Our fees for these services will be at our standard hourly rates plus out-of-pocket costs (such as report reproduction, typing, postage, copies, telephone, etc.) except that we agree that our maximum fee, including expenses, will not exceed $5,000. If the Authority is required to perform a Single Audit, additional fees will not exceed $2,000. Our standard hourly rates vary according to the degree of responsibility involved and the experience level of the personnel assigned to your audit. Our invoices for these fees will be rendered each month as work progresses and are payable on presentation. The above fee is based on anticipated cooperation from your personnel and the assumptionthat unexpected circumstances will not be encountered during the audit. If significant additional time is necessary, we will discuss it with you and arrive at a new fee estimate before we incur the additional costs. We appreciate the opportunity to be of service to the Wheat Ridge Housing Authority and believe this letter accurately summarizes the significant terms of our engagement. If you have any questions, please let us know. If you agree with the terms of our engagement as described in this letter, please sign the enclosed copy and return it to us. Very truly yours, Swanhorst & Company LLC RESPONSE This letter correctly sets forth the understanding of the Wheat Ridge Housing Authority.