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HomeMy WebLinkAboutFin RA Budgets FY2009-10, 2010-11, 2008-09CITYCF�+�Y SAN RAFAEL REDEVELOPMENT AGENCY SAN RAFAEL Department: FINANCE Prepared by: Cindy Mosser, Finance Director Agenda Item No: 2 Meeting Date: July 6, 2009 AGENCY AGENDA REPORT Executive Director Approv . , 4J SUBJECT: RESOLUTION ADOPTING SAN RAFAEL REDEVELOPMENT AGENCY BUDGETS FOR FISCAL YEARS 2009-2010 AND 2010-2011, AND A RESOLUTION AMENDING THE BUDGET FOR FISCAL YEAR 2008- 2009. RECOMMENDATION: Adopt Resolution establishing appropriations for the Redevelopment Agency for fiscal years 2009-2010 and 2010-2011, plus approve amendments to fiscal year 2008-2009 by adopting a separate resolution. BACKGROUND: During the budget hearing on April 29th of this year, staff presented the Agency's two-year budget for July 2009 to June 2011. The Agency has been adopting two-year budgets for several years. This report codifies the two-year budget, including major revenues and expenditure assumptions for the upcoming biennial budget period. ANALYSIS: TYPES OF FUNDS: The Agency budget is made up of six specific funds, each of which has a distinct funding source and unique expenses. The Agency budget contains: 1. Two Debt Service Funds used to account for principal and interest expenses related to the 1999 and 2002 bond issues. Tax increment revenues are received from the County to pay for these expenses. FOR AGENCY SECRETARY ONLY File No.: Agency Meeting: Disposition: SAN RAFAEL REDEVELOPMENT AGENCY REPORT / Page: 2 2. Three Capital Project Funds - a. Administration Fund - accounts for Redevelopment staff (both project management as well as general economic development efforts), support services from Public Works, and ongoing operating costs tied to the Blue House. b. 1999 Capital Projects - this fund tracks the use of the latest bond moneys identified for specific projects that are targeted to be completed within the proposed budget period. c. 2002 Capital Projects - is holding refunding proceeds for future payments of tax increment ($179,000 per year) as part of an agreement with the San Rafael High School District. 3. Low & Moderate Housing - funded by receiving 20% of the available tax increment due to the Agency. These monies are restricted to improve the quality and quantity of affordable housing within the Redevelopment project area. Collectively, these six funds account for all of the financial sources and uses of funds for the San Rafael Redevelopment Agency. Budget analysis and review has occurred for each fund. A summary of key budget elements is presented below. 2009-2011 BUDGET ASSUMPTIONS AND TRENDS: Revenue Table: Below is a table that summarizes revenues for the projected values for the next two budget periods. Major categories are presented, as well as a comparison of capital project and base operating sources. Category FY 2009-2010 FY 2010-2011 Property Taxes $4,466,460 $4,464,290 Interest and Rents $108,240 $108,240 Charges for Services $5,330 $5,330 Otherrevenues $88,250 $88,250 TOTALS $4,668,280 $4,666,110 Less Capital Project Revenues (including grants, donations and project specific resources -$88,250 -$88,250 Agency Operating Revenues $4,580,030 $4,577,860 Revenue Trends: Operating revenues are comprised mostly of property taxes and interest earnings. Taxes are collected for two reasons. About $3.56 million per year is collected from the County to pay for the annual debt service cost on the two outstanding bonds (1999 and 2002). The remaining $900,000 is housing set-aside taxes restricted to housing related programs, projects and activities. SAN RAFAEL REDEVELOPMENT AGENCY REPORT / Page: 3 ik Use of money and property (Interest and Rent) is falling as project funds are used from fiscal year 2008-2009 and interest rates have fallen. Expenditure Table: Below is a table that tallies expenditures by function for the next two budget periods. Major functions are illustrated, as well as a comparison of capital project and base operating sources. Function Category 1 1 Economic Develo went $661,270 $686,020 Housing $901,840 $931,040 Projects $358,350 $429,000 Events $122,560 $120,620 Debt papnents $3,566,460 $3,564,290 Public Works & Administrative Support $136,660 $137,580 TOTALS $5,747,140 $5,868,550 Less Project costs -$480,910 -$549,620 Agency Operating Expenditures $5,266,230 $5,318,930 Expenditure Trends: A payment of $179,000 per annum to fulfill a tax sharing contract with the San Rafael High School District. 4k The Economic Development program includes level funding for the BID ($13,000 per year). 4 Housing program costs include Agency staff as well as 1.33 Code Enforcement Officers. 4, Agency staffing levels remain constant over the next two years (5 redevelopment positions plus the Code Enforcement personnel that are part of the Community Development Department). Exhibit IV is a summary of the Agency's personnel. 4k Debt payments reflect the projected principal and interest costs related to both of the Agency's outstanding bonds issued in 1999 and 2002. 4k Public Works and Administrative support costs are stable and represent portions of maintenance crews and the Executive Director's time committed to Agency programs and activities. Reserves and Fund Balances: At the end of June 2009, the Agency is projected to have $5.9 million in various reserves and cash accounts for capital projects, housing programs, School District payments, and development and administrative funds. The balances at the end of June 2010 and June 2011 fall to $4.8 million and $3.6 million, respectively. SAN RAFAEL REDEVELOPMENT AGENCY REPORT / Paee: 4 Reserves for the 1999 Capital Bond Project unspent funds has been set aside for the following projects. Project Description Amount Corporation Yard Clean -Up $250,000 5194.. Street Environmental Clean Up 25,000 Twinkle lights 146,500 Total $421,500 Summate: Sufficient funds have been set aside to keep the Agency operations sustainable for this budget cycle. No new bonds are forecasted in this two year cycle (which can be used to fund a variety of projects in the Project Area). Nevertheless, Agency staff is working with the County and other local agencies to see if a tax sharing restructuring can produce future revenues that can be pledged for new bonds. Should this occur, the Agency budget will be amended accordingly. Bond issues not only pay for new projects, but provide revenues to pay for current staffing and operations. If a new bond measure is not achieved within the next few years, the Agency operations will be drastically reduced. Only housing programs and debt obligations would be supported in the next decade without new bonds. Total 2009-2011 Budget Picture: Attached to this report is a summary of the Agency's budget for 2009-2010 (EXHIBIT Il and 2010-2011 (EXHIBIT II1. Per EXHIBIT I, preliminary resources for 2009-2010 are $4,628,280, while estimated appropriations are $5,427,560. Expenses include debt payments on bonds, operating costs of the Agency, and additional funds for existing project costs. For the second year of 2010-2011 (EXHIBIT 77) the revenues and expense projections are similar. Resources are projected at $4,666,110, while appropriations are shown at $5,862,550. No new bond appropriations are included in either year of the budget. Any unused capital project funds will be carried forward and appropriated for FY 2009-2010 when staff completes a mid period review of the Agency's budget. FISCAL YEAR 2008-2009 AMENDMENTS: The current fiscal year budget for the Agency was last modified in June 2008. Since that time, a few changes either have been approved, or are required, to bring the revised budget in line with expected revenue collection and expenditures anticipated by June 30th. Expenditure changes are reflected on EXHIBIT W. A minor administrative clean-up item necessitate changes to the adopted budget of one year ago. SAN RAFAEL REDEVELOPMENT AGENCY REPORT / Page: 5 A separate Resolution is provided to amend the 2008-2009 budget (EXHIBIT III - $4,745,600 in revenues and $5,714,090 for appropriations). The sums are in line with future forecasted expenditures and revenues. EXHIBIT III codifies all budget actions for the Agency up through this staff report. FISCAL IMPACT: Adopting the first resolution establishes the financial estimates for the Agency from July 1, 2009 through June 30, 2011. ACTION REQUIRED: The Agency Board should adopt the resolution establishing the San Rafael Redevelopment Agency budget for fiscal years 2009-2010 and 2010-2011. By separate Resolution action, the Board should also adopt the amendments to the 2008-2009 fiscal year budget. ATTACHMENTS W:\Management Services- WorkFile\Finance- WorkFile\Council Material\Staff Reports\2009Ugency\ra budget approval 09-11.doc MOVED BY: SAN RAFAEL REDEVELOPMENT AGENCY RESOLUTION NO. SECONDED BY: RESOLUTION ADOPTING THE BUDGET FOR THE FISCAL YEARS JULY 1, 2009- JUNE 30, 2010 and JULY 1, 2010 - JUNE 30, 2011 PROVIDING FOR THE APPROPRIATIONS AND EXPENDITURE OF ALL SUMS SET FORTH IN SAID BUDGET (IN THE AMOUNTS OF $5,747,140 and $5,862,550, RESPECTIVELY) WHEREAS, the Executive Director has submitted to the San Rafael Redevelopment Agency a Budget for the fiscal years July 1, 2009- June 30, 2010; and July 1, 2010 - June 30, 2011. and WHEREAS, after examination, deliberation and due consideration, the San Rafael Redevelopment Agency has reviewed and modified the Executive Director's Budget, and WHEREAS, it is the intention of this Board to carry forward unspent capital projects funded in fiscal year 2008-2009 to complete the balance of these projects in the 2009-10 and 2010-11 fiscal years; and WHEREAS, it is the intention of this Agency to adopt said Budget submitted by the Executive Director as the approved budget for the fiscal years 2009-10 and 2010-11 as designated in Exhibits I and II attached to the staff report. NOW, THEREFORE, BE IT RESOLVED by the San Rafael Redevelopment Agency that the preliminary budget, as amended by the San Rafael Redevelopment Agency, is hereby adopted and approved as the two-year budget of the San Rafael Redevelopment Agency for the fiscal years July 1, 2009 -June 30, 2010 and July 1, 2010 -June 30, 2011, in the amounts of $5,747,140 and $5,862,550, respectively, as documented in Exhibit I and II of the staff report. I, ESTHER C. BEIRNE, Agency Secretary of the San Rafael Redevelopment Agency, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael Redevelopment Agency of said City held on Monday, the 6th day of July, 2009, by the following vote, to wit: AYES: MEMBERS: NOES: MEMBERS: ABSENT: MEMBERS: ESTHER C. BEIRNE, Agency Secretary W. Wanagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2009Wgency\RDA 09-11 Budget.doc MOVED BY SAN RAFAEL REDEVELOPMENT AGENCY RESOLUTION NO. A RESOLUTION OF THE SAN RAFAEL REDEVELOPMENT AGENCY ADOPTING AMENDMENTS TO THE 2008-2009 BUDGET. SECONDED BY: WHEREAS, the Executive Director has submitted to the San Rafael Redevelopment Agency Board a 'PROGRAM OF MUNICIPAL SERVICES" as the adopted two year budget for the fiscal years July 1, 2007 - June 30, 2009 and WHEREAS, the Agency Board approved Resolution 2007-18 adopting the two year (2007-2008 and 2008-2009) budget; and WHEREAS, the Agency Board approved Resolutions 2008-07 and 2008-15 revising the adopted budget for fiscal year 2008-2009; and WHEREAS, after examination, deliberation and due consideration, the San Rafael Redevelopment Agency Board of Directors has considered amendments to the adopted budget for fiscal year 2008-2009; and WHEREAS, it is the intention of this Board to carry forward unspent capital projects in fiscal year 2008-2009 to complete the balance of these projects in the 2009- 2010 fiscal year; and WHEREAS, it is the intention of this Board to adopt amendments to the budget as submitted by the Executive Director; and WHEREAS, the Board of Directors has recommended a series of additional appropriations as outlined in previous Board actions. NOW, THEREFORE, BE IT RESOLVED by the San Rafael Redevelopment Agency Board of Directors that revenues be increased by $10 to a revised total of $4,745,600 and that appropriations for service to the 2008-2009 budget be increased by $49,470 to a revised total of $5,714,090, as documented in Exhibit III of the staff report. I, ESTHER C. BEIRNE, Agency Secretary of the San Rafael Redevelopment Agency, hereby certify that the foregoing resolution was duly and regularly introduced and adopted at a regular meeting of the San Rafael Redevelopment Agency of said City held on Monday, the 6th day of July, 2009, by the following vote, to wit: AYES: MEMBERS: NOES: MEMBERS: ABSENT: MEMBERS: ESTHER C. BEIRNE, Agency Secretary WAManagement Services- WorkFile\Finance- WorkFile\Council Material\Resolutions\2009\AgencyWmend RA budget 08-09 final.doc Current Revenues: Taxes and special assessments 4,466,460 4,466,460 0 Licenses and permits 0 0 0 Fines and forfeitures 0 0 0 Uses of money and property 108,240 108,240 0 Intergovernmental 0 0 0 Charges for Services 5,330 5,330 0 Other revenue 0 0 0 Special Project Revenues (Division 8) 8,250 0 8,250 Current Expenditures: General Government27,720 27,720 0 Public Safety 0 0 0 Public Works and Packs 108,940 108,940 0 Community and Economic Development 5,129,570 5,129,570 0 Culture and Recreation 0 0 0 Special Project (Division 8) 301,560 0 301,560 Revenues Other Financing Sources (Uses): Transfers In -Operating 0 0 0 Transfers In -Capital 0 0 0 Transfers Out -Operating 0 1 0 0 Less Reserves 8 Designations: Restricted cash Long term receivable Capital Projects CAHIP/CASH Housing Programs Project Planning and Support Costs Arbitrage Rebate RDA -comb ids 09-11Two years.xls 09-10 Projected 35,430 593,572 1,582,764 598,742 860,167 0 EXHIBIT I 7/1/2009 12:46 PM Current Revenues: Taxes and special assessments Licenses and permits Fines and forfeitures Uses of money and property, Intergovernmental Charges for Services Other revenue Special Project Revenues (Division 8) Agency Budget Budget Totals I Totals I Totals 4,464,290 4,464,290 0 0 0 0 0 0 0 108,240 108,240 0 0 0 0 5,330 5,330 0 0 0 0 8,250 0 8,250 Current Expenditures: Transfers In -Operating 0 General Government29,130 Transfers In -Capital 0 1 29,130 0 Public Safely 0 0 0 0 0 Public Works and Parks 108,450 108,450 0 Community and Economic Development 5,175,350 5,175,350 0 Culture and Recreation 0 0 0 Special Project (Division 8) 299,620 0 299,620 Capital Assets (Division 91 250.000 0 250.000 Other Financing Sources (Uses): Transfers In -Operating 0 0 0 Transfers In -Capital 0 1 0 0 Transfers Out -Operating 0 0 0 Transfers Out -Capital 0 0 0 Less Reserves 8 Designations: Restricted cash Long term receivable Capital Projects CAHIP/CASH Housing Programs Project Planning and Support Costs Arbitrage Rebate RDA -comb fds 09-11Two years.xIS 10-11 Projected 35,430 593,572 1,412,764 350,772 260,697 0 EXHIBIT II 7/1/2009 12:47 PM Current Revenues: Agency Totals Budget I Budget Totals Totals General Government21,650 Taxes and special assessments 4,468,780 4,468,780 0 Licenses and permits 0 0 0 Fines and forfeitures 0 0 0 Uses of money and property 183,240 183,240 0 Intergovernmental 0 0 0 Charges for Services 5,330 5,330 0 Other re venue 0 0 0 Special Project Revenues (Division 8) 8,250 0 83250 Current Expenditures: General Government21,650 21,650 0 Public Safely 0 0 0 Public works and Parks 163,910 163,910 0 Community and Economic Development 5,206,060 5,206,060 0 Culture and Recreation 0 0 0 Special Project (Division 8) 322,470 0 322,470 Other Financing Sources (Uses): Transfers In -Operating 0 0 0 Transfers In -Capital 0 0 0 Transfers Out -Operating 0 0 0 Less Reserves 8 Designations: Restricted cash Long term receivable Capital Projects CAHIP/CASH Housing Programs Project Planning and Support Costs Arbitrage Rebate 35,430 593,572 1,762,114 817,422 1,441,997 0 EXHIBIT III 6/30/2009 RDA -comb fds 09-11 Two yearsAs 10:30 PM 08-09 Revised Notes: 1) Reorganization of City Manager office; portion of cost allocated to City Manager in FY2006-07. 2) Increase Events Coordinator to full-time to provide greater promotional opportunities for the community forFY2007-2008. Economic Development EXHIBIT IV Personnel Authorization Adopted Revised Adopted Projected Projected Position Authorized Positions 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 No. Deputy City Manager/Economic 1) Development Director 1.00 1.00 1.00 1.00 1.00 9000 1) Economic Development Director 0.00 0.00 0.00 0.00 0.00 9000 Administrative Assistant IV 1.00 1.00 1.00 1.00 1.00 9005 Economic Development Coordinator 2.00 2.00 2.00 2.00 2.00 9003 2) Events Coordinator 0.75 1.00 1.00 1.00 1.00 9001 Totals 4.75 5.00 5.00 5.00 5.00 Notes: 1) Reorganization of City Manager office; portion of cost allocated to City Manager in FY2006-07. 2) Increase Events Coordinator to full-time to provide greater promotional opportunities for the community forFY2007-2008. } U. W Q UA LU Z0 N Q J = LUQ WOWS J W m um LL: Cf) C Z y O N m v to CD r 00 O O N } J W O 0 N m O O N LL O LL U) LU F- I - 0 z W M X W N 40 O O 0 N co 0 O N LL Ir O LL N J H O m2 O d N � � M r