CDA Executive Director Manuel A. Sablan said, “We had submitted that already and there’s a reduction.”
He said the agency had to cut back on operational costs by about 12 percent.
Based on the figures provided by CDA, the agency’s approved budget for FY’12 is $1,064,886, down 12 percent from $1,211,557 for FY’11 budget.
CDA’s budgetary cuts were distributed throughout but most significantly on travel, foreclosed properties related expenses, reduction largely due to sales/leases of improved properties, and board-related expenses.
Variety earlier reported that the agency spends about 7.5 percent of its budget on rent, 5 percent on legal fees for foreclosed properties while payroll-related expenses take about two-thirds of the monthly expenses.
Moreover, as the agency continues to ramp up efforts to collect, Sablan shared with Variety that CDA is getting an increase in cash flow because of the debt relief.
“People are coming in and starting to pay their loans,” Sablan said.
As well, he said, there is a decrease in the number of delinquent borrowers.
He also told Variety that they are still working on a Request for Proposal for office space.
In the previous board meetings, the CDA board discussed ways to cut back on rent.
The agency, as earlier reported, is paying about $6,000 on Saipan for the Waki Building office on Middle Road.
Sablan said they are still trying to find ways on how they can streamline costs and will be issuing out the RFP for office space.
“We intend to get it done soon,” he said.
CDA earlier reconciled accounts and found $1.5 million in unobligated funds.
Sablan said the $1.5 million in unobligated funds is CIP money under the $140 million bond.
CDA had already communicated this to the CIP office.
