1 CityHousing Hamilton Board of Directors Meeting Tuesday January 25, Budget - Follow Up Items

2 Follow Up Items – from Nov 24, 2010 Board mtg 1.Public Housing portfolio under funded. Budget presented Nov 24, 2010 adjusted maintenance expenditures in an effort to present a balanced budget; adjusted budget incorporates additional subsidy. 2.Salaries, wages and benefits for 2011 require further analysis to understand the increase over 2010 budget 3.Utilities appear low compared to 2010 Budget

3 Proposed 2011 Operating Budget - Revised Description 2011 Budget (as reported Nov Board mtg) 2011 Budget (revised) 2011 Budget Variance Operating Revenue$33,530,899$33,571,527$40,628 Salaries & Benefits7,888,724 0 Other Administration2,256,3201,890,418(365,902) Maintenance10,905,89611,476,078570,182 Utilities9,239,1139,577,396338,283 Municipal Taxes12,456,484 0 Mortgage & Interest13,635,34713,696,77561,428 Capital Reserve Allocation7,457,2437,373,511(83,732) Total Expenditures$63,839,127$64,359,386520,259 Service Manager Subsidy$30,308,228$30,787,859479,631 Current Year Surplus/(Deficit) $0

4 Administration Salaries, wages and benefits have not changed since the Nov 24, 2010 budget presentation. As per City of Hamilton budget guidelines, no contingency incorporated for CUPE 5167 salary increases Other administration expenses have been reduced to reflect actual 2010 expenses

5 CityHousing Hamilton Division Complement (FTE) ManagementOtherTotalStaff/Mgt Ratio : :1 Change1.00 **cost absorbed in CHH operational budget CHIEF EXECUTIVE OFFICER Administrative Assistant (1.0) Manager Tenant Support Services (11.5) Manager, Housing Operations (62.85) Manager, Asset Renewal/Maintenance (8.0) Manager Business/Strategic Serv **. (11.0) Business Administrator (9.0)

6 Salaries/Wages & Benefits 2010 vs 2011 comparison Salaries/Wages Benefits Total 2010$6,308,876$1,142,796$7,451, $6,467,251$1,421,473 $7,888,724 (a) Difference$158,375$278,677$437,052 %2.5% (b) 24.4% (b) 5.9% (a)-- incorporates new FTE ($105K) and merit increases (b)-- benefit increases for 2011 mainly due to OMERS

vs 2010 Benefit comparison Benefit Description2011 Employer Benefit 2010 Employer Benefit Variance Canada Pension Plan (CPP) (Annual Insurable Earnings ↑ by $ ) $ $ % Canada Pension Plan (CPP) (Contribution rate unchanged) 4.95% 0.0% Employment Insurance (EI) (Annual Insurable Earnings ↑ by $ ) (Max. ER contribution ↑ to 2.492% from 2.422%) $ $ % OMERS – max rate (earnings up to $48,300) % OMERS Surplus Rate (earnings > $48,300) % Liberty Health %

8 Maintenance Maintenance budget for Public Housing portfolio revised to incorporate increased subsidy allocation from Service Manager Building Condition Assessments (due Spring 2011) will provide details on a collaborative maintenance and capital plan

9 Utilities Per SHSC (Social Housing Services Corporation) and City of Hamilton guidelines, 2011 budgeted utilities were estimated based on 2010 actual expenses rather than 2010 Budget 2011 budgeted utilities were increased to better reflect estimates of 2010 actual utility costs

10 Subsidy Details – 2011 Funding Model description 2011 Budget (as reported Nov Board mtg) 2011 Budget (revised) 2011 Budget Variance Provincial Benchmarked 7,657,820 0 Pre’86135,170 0 Federal170,804 0 Rent Supplement846,496976,400129,904 (a) Public Housing21,497,93821,847,665349,727 (b) TOTAL30,308,22830,787,859479,631 (a)--Rent Supplement subsidy for Macassa properties and 557 Queenston (not included in original budget file) (b)--Additional subsidy requested from Service Manager for Public Housing stock

11 Thank you!