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Home My WebLink AboutSR - RDA & HA Amending FY 06-07 BudgetsPALM DESERT REDEVELOPMENT AGENCY/ PALM DESERT HOUSING AUTHORITY REQUEST: SUBMITTED BY: DATE: CONTENTS: STAFF REPORT ADOPTION OF RESOLUTIONS OF THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY AMENDING THEIR FISCAL YEAR 2006-07 BUDGETS DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING FEBRUARY 8, 2007 AGENCY RESOLUTION NO. 539 HOUSING AUTHORITY RESOLUTION NO. HA-33 Recommendation: By Minute Motion: 1. The Redevelopment Agency adopt Resolution No. 539 , amending the Fiscal Year 2006-07 budget as a result of Mid -Year Adjustments; and 2. That the Housing Authority adopt Resolution No. HA- 33 , amending the Fiscal Year 2006-07 budget as a result of Mid -Year Adjustments. Executive Summary: The adoption of these resolutions will adjust the budgets for the Redevelopment Agency and the Housing Authority to reflect the projected changes in revenues and expenditures of both entities. Discussion: Staff has completed a Mid -Year analysis of the Redevelopment Agency, Housing Authority, and Financing Authority budgets, as well as the budgets for the El Paseo Assessment District, Shopper Hopper, and Facade Enhancement. Staff is proposing adjustments to all budgets to reflect changes in projected revenues and expenditures. The adjustments include higher than anticipated tax increment revenues, which will necessitate higher pass - through payments and housing set -aside transfers. Current Budget Mid -Year Revised Budget Revenues Agency 69, 501, 535 Housing Authority 5,054,725 Expenses Agency 198,590,293 Housing Authority 19,832,197 77,329,687 16,377,532 206,133,502 20,182,544 G \rda\Veronica Tapia\Word Files\Staff Reports\2006-07 Mid Year Budget Adjustment doc Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amending their Fiscal Year 2006-07 Budgets Page 2 of 5 February 8 2007 Revenue: Staff proposes to increase the budgeted revenue to reflect increases in tax increment revenues to the four project areas. The records and receipt of the first payments of tax increment reflect a projected increase of tax increment revenue of $6,523,460 as follows: Project Area No. 1 Project Area No. 2 Project Area No. 3 Project Area No. 4 $3,611,858 1,263,927 337,016 1,310,659 Staff is also recommending changes to the project Housing Set -Aside transfers, net of SB 2557 adjustments of $1,304,692. Staff is also recommending a decrease to the Financing Authority Transfers In, in the amount of ($468,407). This reduction is the result of the issuance of new bonds in July 2006. Staff is also recommending changes to the projected Housing Authority revenues in anticipation of the transfer in from Housing Set -Aside to cover costs of construction at California Villas and Laguna Palms in the amount of $11,540,701. Staff also anticipates a decrease in rent at the Housing Authority properties due to the construction, which will result in an adjustment of ($217,894). Expenditures: Redevelopment: Staff is proposing to increase the expenditures for the Redevelopment Agency funds as follows: Mileage $ 2,000 Printing/Duplicating (Economic Development) $ 7,000 Dues (Economic Development) $ 1,000 Phone Service $ 500 Courtesy Carts $ 5,000 Property Acquisition $ (9,500,000) Land Acquisition $ 3,502,512 The increase to mileage is to accommodate the mileage attributable to the LEADS training. The increase to printing/duplicating is to provide new brochures and video for the Redevelopment Agency. The increase to dues is to provide new memberships in economic development organizations. The increase in phone service is to accommodate G:URDAWMARIA HUNT\WPDATA\YRIGOYEMSTFRPTS%020807MIDYRBUDGETADJUSTMENT.DOC Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amending their Fiscal Year 2006-07 Budgets Page 3 of 5 February 8 2007 the service at Agency owned properties. The increase to Courtesy Carts is to cover maintenance costs. The decrease to Property Acquisition is to correct original appropriation to land acquisition. The increase to Property Acquisition offsets the correction to Property Acquisition. Debt Service Funds: Staff is proposing increases to the Debt Services Funds to reflect the higher pass -through payments, changes to debt service payments, and Housing Set -Aside transfers. The following increases are recommended: Project Area No. 1 Pass -Through Payments $ 1,421,102 Debt Service Payments (1,944,793) Housing Set -Aside Transfer 722,371 Project Area No. 2. Pass -Through Payment $ 732,851 Debt Service Payments (1,432,942) Housing Set -Aside Transfer 252,786 Project Area No. 3 Pass -Through Payment $ 104,116 Debt Service Payments (885,619) Housing Set -Aside Transfer 67,403 Project Area No. 4 Pass -Through Payment $ 639,633 Debt Service Payments (874,653) Housing Set -Aside Transfer 262,132 Low and Moderate Housing Set -Aside: Staff is proposing to increase the expenditures for the Housing Capital funds as follows: Office Supplies $ 1,000 Postage $ 2,000 Office Equipment $ 5,000 Transfer Out -HA $11,540,701 Palm Village Construction $ 300,000 Workforce Housing Grant $ 93,209 The increase to office supplies is to accommodate the supplies needed to set up the new loan files for Falcon Crest. The increase in postage is due to increase rates to Fed Ex the Housing Commissioner packets. The increase in office equipment is to replace furnishings that are outdated and worn. The increase to Transfers Out is to provide cash to complete renovations at California Villas and Laguna Palms. The increase to Palm Village Construction is to accommodate the extended conditions, as well as purchase signage. G:\RDA\MARIA HUNTWPDATAWRIGOYEN\STFRPTSW20807MIDYRBUDGETADJUSTMENT.DOC Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amending their Fiscal Year 2006-07 Budgets Page 4 of 5 February 8 2007 Finally, the increase to the Workforce Housing Grant will create the budget necessary to expend grant funds awarded by HCD. Financing Authority: Staff is recommending an increase to the total debt service in the amount of $1,170,000, and a decrease to the total debt service interest in the amount of ($1,656,407) to reflect changes as a result of the new bonds issued in July 2006. The overall changes are as follows: Budgeted Revenue Redevelopment Agency Housing Authority Tax Increment $76,024,995 Rents $4,836,831 Transfers In 1,304,692 $11,540,701 Total $77,329,677 $16,377,532 Budgeted Expense Operations $16,995,202 $6,722,954 Capital $116,981,266 $13,459,590 Debt Service/Pass Thru $72,157,034 Total $206,133,502 $20,182,544 Housing Authority: Staff is recommending the following increased appropriations to the Housing Authority properties as follows: Administration Legal Services $ 45,000 HA Property Maintenance $ 10,000 Catalina Gardens Miscellaneous Expense $ 20,000 Desert Pointe Replacement Expense $ 20,000 Las Serenas Contract Services $ 80,000 Repairs and Maintenance 20,000 Replacement Expenses 36,500 Miscellaneous Expense 5,000 One Quail Place Replacement Expenses $ 60,000 Other Services and Charges 8,000 Pueblos Replacement Expenses $ 25,000 G:\RDA\VERONICA TAPIA\WORD FILES\STAFF REPORTS\2006-07 MID YEAR BUDGET ADJUSTMENT.DOC Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amending their Fiscal Year 2006-07 Budgets Page 5 of 5 February 8 2007 Other Services and Charges $ 20,000 California Villas Capital Improvements $ (300,000) Capital/Emergency Repairs $ 300,000 Taos Palms Capital/Emergency Repairs $ 15,000 Palm Village Payroll $ (19,910) Contract Services $ (12,474) Management Fee $ ( 7,128) Advertising/Promotion $ ( 2,228) Repairs & Maintenance $ ( 7,908) Utility Service $ (12,066) Miscellaneous Expense $ (2,439) Capital/Emergency Repairs $ 50,000 The total increase to the Housing Authority budget is $350,347 of which $65,000 is for capital improvements. The majority of the capital improvements are for exterior/interior finishes at Palm Village Apartments. The rest of the increases are for contractual services, repairs and maintenance, and other services for the properties. The largest of these is an increase to Las Serenas for tree maintenance and courtesy patrol services. The Housing Commission reviewed the above recommendations on January 10, 2007, and has recommended that the Housing Authority approve the increased budget appropriations. Attached are the resolutions and exhibits for the Redevelopment Agency and Housing o 0 C cr AO >- mdo >-' a) _a o kat uI S. Gibson, Director of Finance Oz > O Authority, which amend their respective budgets. Submitted by: Dave Yrigoyen Director of Redevelopment/Housing Approval: Carlos L. Ora, Executive Director Approval: n Mc arth Redevelop G:\RDA\MARIA HUNT\WPDATA\YRIGOYEN\STFRPTS\020807MIDYRBUDGETADJUSTMENT.DOC