Eagle Pass Housing Authority holds Budget Workshop for 2014-2015 Fiscal Year Budget
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
The Eagle Pass Housing Authority (EPHA) Board of Commissioners held a special meeting and workshop on Thursday, June 12, 2014, at the El Centernario building at 2995 Main Street in Eagle Pass, Texas.
The EPHA Board of Commissioners unanimously approved the local public housing authority’s participation in a grant application by the City of Eagle Pass Police Department with the United States Department of Justice. Grant writer Don Williams presented the EPHA Board of Commissioners a brief description of the U.S. Department of Justice Grant.
After taking care of its only special meeting agenda item, the EPHA Board of Commissioners went into a workshop on its 2014-2015 fiscal year budget, which EPHA Executive Director Mary D. Velasquez presented to the Board.
The new proposed 2014-2015 EPHA Budget will be formulated similar to the previous year with certain pending changes and a review of certain accounts and their amounts which may warrant cuts to these accounts, stated EPHA Executive Director Mary D. Velasquez.
One of the important details which was brought to light during the workshop are the uncertainties as to the availability of full funding for the 2014-2015 EPHA fiscal budget year from the U.S. Department of Housing and Urban Development.
Citing issues at the federal government level for the uncertainty, Velasquez and the Board of Directors tried to tackle key issues such as income predictions for the upcoming fiscal year based on information from HUD concerning the amount of subsidies and data relating to rental income. Chairperson Ana M. Gonzalez asked Velasquez if she knew how much HUD is going to fund the EPHA for the 2014-2015 fiscal year?
“We do know how much we are going to get for the next 6 months from HUD. But we don’t know if we are going to get the second part of the fiscal year which is from January to June 2015,” said Velasquez.
Velasquez confirmed that the EPHA will be receiving $1,900,000 in HCD/Section 8 funding for the calendar year.
Chairperson Ana M. Gonzalez asked what was the comparative difference from the upcoming year to last year’s funding for Section 8 from the Federal Government? Section 8 Administrator Chris Salazar stated that the numbers could not be favorably compared due to cuts stemming from last year’s sequestration by Congress and certain funding decreases resulting from sequestration.
“Remember last year we had sequestration and that’s where we were being hit hard. From what we have seen on a monthly basis we are now getting more,” said Salazar.
Velasquez then presented an overall proposed view for the Low Income Housing Program.
Stating that since Congress and HUD work on a calendar year, the EPHA does not know what it will be receiving for the second part or latter six months of the EPHA’s proposed 2014-2015 fiscal year budget.
Velasquez stated that for Capital Funds, the EPHA is getting $532,000 presently and it would remain the same for the 2014-2015 fiscal year. “We had requested approximately $750,000 but we were decreased to $532,000,” said Velasquez.
Chairperson Ana M. Gonzalez then inquired into a clear indication of what was to be available through the Federal Government for the new fiscal year. “We normally find out either in December or January,” said Velasquez.
“So how can we make a budget, if we don’t know how much we are going to get?” asked Gonzalez despite serving on the board for more than four years.
Velasquez then stated that normally they fund the same amount and gave an example of certain projections that are calculated and used to base the overall budget on.
Velasquez presented other findings that need to be carefully reviewed to completely understand how certain accounts were being used and break them down. This is necessary to better understand their function and if the funds being allocated to them were actually needed or decreased the amounts. For example, one account cited was an Administrative Sundry (miscellaneous) account that according to Velasquez had no clear indication of how it was being used and administered.
“We aren’t sure what was being charged to that account. There is no clear information to what sundry is,” said Velasquez.
Another account is the Office Supply account, which will be reviewed to set an established amount potentially decreasing it as Administration felt that allocated amount was too high.
Under dwelling grant, projected incomes for the FHA program is $1,076,960, vacancy losses are expected and projected in the proposed budget to be at zero dollars added Velasquez.
The Board discussed some of the problems experienced pertaining to vacancies and turnarounds such as wait times and certain processes needed to be met before placing families into housing units.
Velasquez stated that she plans to reduce advertising in this year’s budget because the EPHA was paying certain local news media (not the Eagle Pass Business Journal) for publicizing its social events. Velasquez stated the EPHA should not have to pay certain local news media to publish the EPHA’s social events. Velasquez proposed that the new budget will only pay for advertising on vacancies and the closing of waiting lists for housing unit programs and will cut all funds for coverage of social events. Velasquez stated that they will be taking a different approach in media coverage for social events pertaining to the EPHA.
Tenant Service Salary is budgeted at $18,000 and $9,680 for benefits. Tenant services which will be used this year for Summer Youth Programs will have $20,000 budgeted to be used to hire high school youth for this program. These program funds will be sought as soon as the 2014-2015 Budget is approved by the Board.
Chairperson Gonzalez stated that she would like to see this type of recreational program extended to year round and requested for administration to look into it (costs). Velasquez and the Board then concurred that a certain amount of approximately $27,000 be set aside from the new budget for a year round salary for a new employee position for recreational coordinator. The item was discussed in detail on how to implement a youth program and what it would take to do so effectively.
Also discussed were certain issues pertaining to the protective service salaries (Security Personnel ) which currently have three permanent full time positions and two part-time positions, which account for $108,000 in the budget.
Chairperson Gonzalez cited that due to situations that have occurred resulting in a decision recently made regarding the Security Department, the EPHA should look into a cost comparison between contracting out security services to a private company compared to in house security services. Chairperson Gonzalez stated that she had spoken with Velasquez into what would be most beneficial between contracting such services or to take on the burden of paying out fringe benefits for those employees that are hired through the EPHA for their service of employment.
“I tell her to think about it because you would not have to worry about it. They know what to do, those people that work under an agency. There are various groups here, to contract out, there are groups of police here and for her to get together with them and state what is needed at night BLAH, BLAH, BLAH and you get rid of the responsibility of fringe benefits and of having to be telling those persons what is needed. Because those persons should know and to not enter into another situation such as the one we were in paying for that position. I don’t know how much we were paying for that position,” said Chairperson Gonzalez.
Velasquez then intervened and told the Board that they were paying $33,000 for the Director of Security Services position.
On June 5, 2014, EPHA Executive Director Mary D. Velasquez terminated the employment of former EPHA Director of Security Services Homero Galindo.
“Between benefits and salaries its almost $134,000 per year,” said Velasquez referring to the total costs for the EPHA’s Security Services Department personnel.
“Have you checked it out?” asked Chairperson Gonzalez referring if Velasquez had already looked into the costs of contracting out security services to a private security company.
“No Ma’am, I have not but one person did state that they usually charge between $140,000 to $150,000,” said Velasquez.
Chairperson Gonzalez then reiterated to EPHA Executive Director Mary D. Velasquez to check into the possibility of contracting out the Security Services for the EPHA.
“They have always told us that contracting out will be a lot cheaper,” said Chairperson Gonzalez.
Velasquez stated that they will have to look at all the aspects of it and the pros and cons in dealing with the situation.
Chairperson Gonzalez stated that in some way it would relieve the EPHA of certain headaches experienced before such as conduct of employees and other unwanted issues.
Velasquez stated that they would be taking a look at the cost to contract out those security services and weigh in the pros and cons on the issue and would report back to the Board.
Velasquez also presented proposed budget figures for utilities, maintenance department accounts, maintenance materials, garbage , electrical, pest control, janitorial, maintenance contracts(plumbing), heating and cooling and landscape beautification .
The Board and Velasquez discussed extensively details into problems experienced by the EPHA regarding non-compliance by tenants maintaining their lawns. Another $20,000 is to be used for grounds keeping maintenance expenses from July to October 2014. Velasquez pointed that the EPHA will be hiring temporary employees to maintain EPHA’s tenants’ lawns/maintenance.
Also discussed were the various insurance coverage premiums and costs such as property insurance, general liability insurance, workers compensation insurance, and other insurances such as automobile liability insurance.
HUD operating subsidies and administrative fees projections will be at around $2,000,000, said Velasquez.
The Capital Fund Program operations presently has $10,000 from the 2012 grant and is expected to receive another $20,000 from the 2013 grant.Under management fees projected figures are at $288,000 and those are used to sustain management salaries and the C.O.C. expenses stated Velasquez.
Velasquez stated that the total for the year would be $3,342,502 in estimated revenues for fiscal year 2014-2015.
“Under expenses we have the administrative salaries under C.O.C. total is $233,290 that pays for the Director’s salary, secretary, finance coordinator salary and the capital funds coordinator salary,” said Velasquez.
Administrative employee benefits are at 37% of the total amount of salaries across the board and this pays for insurance, vacations, and other benefits.
Chairperson Gonzalez then asked to see the figures from the account that is used for employees to borrow money from the EPHA. “There are some people here that borrow money as if it were a bank,” said Gonzalez.
Administration then explained that those funds in question were taken from the employee retirement plans and were not borrowed from the EPHA
“Ok let me tell you I have never known of an agency that does that. Nowhere, in school I don’t borrow from Ismael Mijares based on my salary and that’s it,” said Chairperson Gonzalez.
“The retirement is between the employee and the retirement company. It just depends what kind of package is offered to the Housing Authority employees,” said Velasquez.
“Are we losing money and why don’t the employees do it away from here and don’t involve the EPHA ,” said Chairperson Gonzalez.
The administration then explained that it does not involve the Eagle Pass Housing Authority agency. “I saw a guy who came in here and gave a presentation,” said Gonzalez. Administration again explained that it was in regards to employee’s retirement packages.
Gonzalez was assured by Administrtion that the agency itself was not ditching out monies and that the only thing that the EPHA does is take it from the employee checks and pays it off to the company who handles the retirement packages. Gonzalez then stated that in the School District they never had such thing and that they don’t allow that.
Chairperson Gonzalez then asked Velasquez if this was done at the city. Velasquez answered no. Chairperson Gonzalez then instructed Velasquez to look into it. “There has to be a catch,” said Gonzalez. “As long as we don’t lose money,” concluded Gonzalez.
Chairperson Gonzalez stated that Administration needed to be careful on the dispersing of funds. Gonzalez compared the EPHA to the City of Eagle Pass and stated that the funds from the City were different due to that they were collected from taxes and that the EPHA was solely dependent on funding from the federal government and the monies that are collected from the taxpayer (tenants).
Total overall expenses will be $3,069,200 for the 2014-2015 fiscal year and the unrestricted balance up to 2015 will be $2,937,000 stated Velasquez.
What is clear is that Congress and HUD are funding less and less every year to local public housing authorities such as the EPHA, requesting public housing authorities to become more self-sufficient. This is EPHA’s Executive Director Mary D. Velasquez’s first budget at EPHA as she had no prior public housing experience when hired by the Board.
