The Jefferson City Housing Authority anticipates a deficit to next year's budget due to renovation work at one property.
The Housing Authority Board approved the $8.9 million budget Tuesday morning.
Chief Financial Officer Cindy Reeves said the deficit would come from renovation work needed at Hamilton Tower.
Overall, the budget projects $7,723,348 in revenues and $8,993,673 in expenses. The budget for this year projected $7,398,916 in revenue and $8,468,013 in expenses.
Renovations at Hamilton Tower were budgeted for the last several years, but were delayed due to similar work at Dulle Towers taking longer than expected and then the COVID-19 pandemic.
"We're really hoping that in the next fiscal year we'll be able to get the renovations going for Hamilton," Reeves said.
Work includes new sewer lines, remodeled kitchens, elevators and windows. The elevator replacement has started since the work was bid out together for Dulle and Hamilton towers.
The renovation is projected to cost $2 million in the first year and is projected to take two years.
According to the budget, the Housing Authority plans to use existing reserves and seek a construction loan of $500,000-$750,000 to complete the renovations. The loan wouldn't come into play until next year.
It will not completely deplete the cash reserves of $2 million for Hamilton Towers, according to the budget.
The voucher program, which offers rental assistance, is also projected to have a deficit of $43,277. The budget plans to cover costs through reserves, which has $120,000 in it.
The other largest difference in this year's Housing Authority budget comes from salaries.
In April, President Joe Biden signed an executive order, which increases the minimum wage for federal contractors — people who work for a government agency through a new contract — to $15 an hour. The rate change takes effect Jan. 30. The rate was scheduled to increase the beginning of January to $11.25 through a 2014 executive order, which set up a formula to calculate contractors' minimum wage.
This increase extends to the Jefferson City Housing Authority, which will increase contractor pay to $15 an hour.
The budget also accounts for an additional $1,000 annually or 50 cents per hour for regular employees, which brings the minimum salary offered through the Housing Authority to $15 an hour.
Combined, it adds $74,489 in salaries to the budget.