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Home My WebLink AboutRes Nos. 554 & HA-39 - Amndg FY 08-09 BudgetsPALM DESERT REDEVELOPMENT AGENCY/ PALM DESERT HOUSING AUTHORITY REQUEST: SUBMITTED BY: DATE: CONTENTS: Recommendation: STAFF REPORT ADOPTION OF RESOLUTIONS OF THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY AMENDING THEIR FISCAL YEAR 2008-09 BUDGETS DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING January 8, 2009 AGENCY RESOLUTION NO. 554 HOUSING AUTHORITY RESOLUTION NO. HA- 39 Waiver further reading and adopt: 1. Resolution No. 554 , amending the Fiscal Year 2008-09 budget as a result of Mid -Year Adjustments; and 2. Resolution No. HA- 39 , amending the Fiscal Year 2008-09 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 and various other Agency administered projects. 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, housing set -aside transfers as well as, a mandatory transfer to the State's ERAF fund from all four project areas. Revenues Agency Housing Authority Expenses (Includes Carryover Budgets) Agency Housing Authority Current Budget Mid -Year Revised Budget 102,294,364 5,063,602 185,252,253 9,611,899 106,448,176 5,063,602 191,644,619 9,611,899 G:\rda\Veronica Tapia\Word Files\Staff Reports\2008-09 Mid Year Budget Adjustment.doc Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amendingtheir Fiscal Year 2008-09 Budgets Page 2 of 4 January 8 2009 Revenue: Staff proposes to increase the budgeted revenue to reflect increases in tax increment revenues to three of the four project areas. The records and receipt of the first payments of tax increment reflect a projected increase of tax increment revenue of $3,461,510 as follows: Project Area No. 1 Project Area No. 2 Project Area No. 3 $1,467,320 1,292,274 701,916 Staff is also recommending changes to the projected Housing Set -Aside transfers of $692,302. Staff also recommends a reclassification of $161,470, resulting in a zero net gain/loss to be made to the revenue accounts at Palm Village due to an error in posting the original 2008- 09 Housing Authority budget. Expenditures: Redevelopment: Staff is proposing to adjust the expenditures for the Redevelopment Agency funds as follows: Alessandro Improvements Entrada del Paseo $ 330,688 ($ 330,688) The increase to Alessandro Improvements is to accommodate potential acquisitions necessary in order to complete the project. The decrease to Entrada del Paseo is to offset the costs for the Alessandro Improvements. Debt Service Funds: Staff is proposing adjustments to the Debt Services Funds to reflect reduced interest rates, higher pass -through payments, changes to debt service payments, and Housing Set -Aside transfers. The following adjustments are recommended: Project Area No. 1 Interest -City Advance ($ 200,000) Premium Expense ( 1,525,971) Pass -Through Payments 849,573 ERAF 3,164,869 G:\RDA\VERONICA TAPIA\WORD FILES\STAFF REPORTS\2008-09 MID YEAR BUDGET ADJUSTMENT.DOC Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amendingtheir Fiscal Year 2008-09 Budgets Page 3 of 4 January 8 2009 Interfund Op Transfer Out Housing Set -Aside Transfer Project Area No. 2. Interest -City Advance Pass -Through Payment ERAF Housing Set -Aside Transfer Project Area No. 3 Pass -Through Payment ERAF Housing Set -Aside Transfer Project Area No. 4 ERAF Low and Moderate Housing Set -Aside: 4,748,464 293,464 ($ 340,000) 240,198 1,105,434 258,455 $ 332,305 213,173 140,383 $ 767,020 Staff is proposing to adjust the expenditures for the Housing Capital funds as follows: Interfund Op Transfer Out Apartment Rehabilitation $ 3,655,001 ($ 3,655, 001) The increase to Transfer Out is to provide assistance to Housing Authority property rehabilitation project at Country Village Apartments. The decrease to apartment rehab is to offset the cost of the property rehabilitation. The overall mid -year budget adjustments are as follows: Budgeted Revenue Tax Increment Rents Trans In (20% HSA) Total Budgeted Expense Operations Capital Debt Service/Pass Thru Total Redevelopment Agency $88,706,813 17, 741, 363 $106,448,176 $5,598,575 87,819,709 $98,226,335 $191,644,619 Housing Authority $5,063,602 $5,063,602 $5,664,466 $3,947,433 $9,611,899 G:\RDA\VERONICA TAPIA\WORD FILES\STAFF REPORTS12008-09 MID YEAR BUDGET ADJUSTMENT.DOC Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amendingtheir Fiscal Year 2008-09 Budgets Page 4 of 4 January 8 2009 Housing Authority: Staff is recommending the following adjustments to appropriations to the Housing Authority properties as follows: Laguna Palms Capital Expense $ 18,000 Catalina Gardens Payroll $ 9,500 California Villas Replacement Expense $ 5,500 Miscellaneous Expense $ 5,000 Capital Improvements (433,500) Capital/Emergency Repairs 45,500 Taos Palms Capital Improvements $ 350,000 The total increase in controllable expenditures amounts to $0, due to the reductions to the California Villas expenditures. The total decrease in revenues is also $0. In total, the operating profit for all fourteen properties is projected to be approximately $142,792 for 2008-2009. The Housing Commission reviewed the above recommendations on December 10, 2008, and has recommended that the Housing Authority approve the increased budget appropriations. Attached are the resolutions and exhibits for the Redevelopment Agency and Housing Authority, which amend their respective budgets. Submitted by: — e Yrig Director of,,R evelopment/Housing Approval: L. Ortega, Exe Approval: n McCarthy Redevelopme Director Paul S. Gibson, Director of Finance G:\RDA\VERONICA TAPIA\WORD FILES\STAFF REPORTS\2008-09 MID YEAR BUDGET ADJUSTMENT.DOC RESOLUTION NO. 554 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2008-09 BUDGET AS A RESULT OF MID -YEAR ADJUSTMENTS WHEREAS, as a result of Mid -Year review of the budget, it is desirable to revise the 2008-09 Budget; NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency, Palm Desert, California, that the 2008-09 Budget is hereby revised as follows: 1. The amount shown in the column entitled "Revised Appropriations" in the table entitled "Palm Desert Redevelopment Agency, Mid -Year 2008-09 Budget Review, Revised Appropriations Operating Budget', attached hereto as Exhibit "A", are hereby appropriated to the departments, activities, and projects identified therein as the Operating Budget for 2008- 09. 2. The amounts shown in the column entitled "Revised Estimated Revenues" in the tab entitled "Palm Desert Redevelopment Agency, Mid -Year 2008- 09 Budget Review, Revised Estimated Revenues", attached hereto as Exhibit "B", are hereby accepted as the Estimated Revenues for the 2008- 09 Fiscal Year for each fund and revenue source. PASSED, APPROVED AND ADOPTED, at the regular meeting of the Palm Desert Redevelopment Agency held on this day of 2009, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: Robert S. Spiegel, Chairperson ATTEST: Rachelle D. Klassen, Secretary G:\rda\Veronica Tapia Word Files\Staff Reports\2008-09 RDA Midyear Budget Resolution.doc Resolution No. 554 Exhibit "A" PALM DESERT REDEVELOPMENT AGENCY MID -YEAR 2008-2009 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET FUND/ ACCOUNT DEPARTMENT DESCRIPTION Fund 850 - Project Area #1/Capital Improvements 850 4341 433 4001 Alessandro Improvements 850 4358 433 4001 Entrada del Paseo Fund 860 - Project Area 860 4195 466 3636 860 4195 466 3644 860 4195 466 3647 860 4195 466 3649 860 4199 499 5010 860 4199 499 5090 Fund 861 - Project Area 861 4195 466 3636 861 4195 466 3647 861 4195 466 3649 861 4199 499 5090 Fund 863 - Project Area 863 4195 466 3647 863 4195 466 3649 863 4199 499 5090 Fund 864 - Project Area 864 4195 466 3649 #1/Debt Service Interest -City Advance Premium Expense Pass Thru Payments ERAF Interfund Op Transfer Out Transfer Out L/M Set -Aside #2/Debt Service Interest -City Advance Pass Thru Payments ERAF Transfer Out L/M Set -Aside CHANGE ORIGINAL INCREASE/ REVISED APPROP (DECREASE) APPROP 5,621,095 330,688 1,651,190 (330,688) 7,272,285 700,000 (200,000) 1,525,971 (1,525,971) 19,821,469 849,573 - 3,164,869 - 4,748,464 9,928,360 293,464 31,975,800 7,330,399 840,000 (340,000) 7,586,262 240,198 - 1,105,434 3,592,726 258,455 12,018,988 1,264,087 #3/Debt Service Pass Thru Payments 1,995,010 332,305 ERAF - 213,173 Transfer Out L/M Set -Aside 794,797 140,383 2,789,807 685,861 #4/Debt Service ERAF Fund 870 - Low & Mod Set-Aside/Capital Improvements 870 4199 499 5010 Interfund Op Transfer Out 870 4498 464 4001 Apartment Rehab 767,020 EXPLANATION 5,951,783 Reimburse City for acquisitions 1,320,502 Reduce to offset increase to Alessandro 7,272,285 500,000 20,671,042 3,164,869 4,748,464 10,221,824 39,306,199 500,000 7,826,460 1,105,434 3,851,181 13,283,075 Reduction to Interest Rates Correct original budget posting Increase in Tax Increment AB 1389 ERAF Shift Correct original budget posting/to call bonds Increase in Tax Increment Reduction to Interest Rates Increase in Tax Increment AB 1389 ERAF Shift Increase in Tax Increment 2,327,315 Increase in Tax Increment 213,173 AB 1389 ERAF Shift 935,180 Increase in Tax Increment 3,475,668 767,020 AB 1389 ERAF Shift 767,020 767,020 - 3,655,001 4,000,000 (3,655,001) 4,000,000 3,655,001 Transfer cash to HA for construction 344,999 Reduce to offset transfer for construction 4,000,000 1 Resolution No. 554 Exhibit "B" PALM DESERT REDEVELOPMENT AGENCY MID -YEAR 2008-2009 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET CHANGE FUND/ ACCOUNT ORIGINAL INCREASE/ REVISED DEPARTMENT DESCRIPTION APPROP (DECREASE) APPROP EXPLANATION Fund 860 - Project Area #1 860 0000 317 1000 Tax Increment PA 1 Original 9,189,714 289,486 9,479,200 Increase in Tax Increment 860 0000 317 1100 Tax Increment PA 1 Annex 40,452,086 1,177,834 41,629,920 Increase in Tax Increment 49,641,800 1,467,320 51,109,120 Fund 861 - Project Area #2 861 0000 317 1000 Tax Increment PA 2 Fund 863 - Project Area #3 863 0000 317 1000 Tax Increment PA 3 17,963,630 17,963,630 1,292,274 19,255,904 Increase in Tax Increment 1,292,274 19,255,904 3,973,983 701,916 4,675,899 Increase in Tax Increment 3,973,983 701,916 4,675,899 Fund 870 - Housing Set -Aside 870 0000 391 1011 Tax Increment 20%-PA 1 9,928,360 293,464 10,221,824 Increase in Tax Increment 870 0000 391 1012 Tax Increment 20%-PA 2 3,592,726 258,455 3,851,181 Increase in Tax Increment 870 0000 391 1013 Tax Increment 20%-PA 3 794,797 140,383 935,180 Increase in Tax Increment 14,315,883 692,302 15,008,185 FINANCING AUTHORITY 390 0000 391 0000 Op Tr In 31,136,850 4,748,464 35,885,314 Tranfer in from Debt Service to call bonds 31,136,850 4,748,464 35,885,314 1 RESOLUTION NO. HA- 39 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY, PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2008- 09 BUDGET AS A RESULT OF MID -YEAR ADJUSTMENTS WHEREAS, as a result of Mid -Year review of the budget, it is desirable to revise the 2008-09 Budget; NOW, THEREFORE, BE IT RESOLVED by the Housing Authority, Palm Desert, California, that the 2008-09 Budget is hereby revised as follows: 1. The amount shown in the column entitled "Revised Appropriations" in the table entitled "Palm Desert Housing Authority, Mid -Year 2008-09 Budget Review, Revised Appropriations Operating Budget', attached hereto as Exhibit "A", are hereby appropriated to the departments, activities, and projects identified therein as the Operating Budget for 2008-09. 2. The amounts shown in the column entitled "Revised Estimated Revenues" in the tab entitled "Palm Desert Housing Authority, Mid -Year 2008-09 Budget Review, Revised Estimated Revenues", attached hereto as Exhibit "B", are hereby accepted as the Estimated Revenues for the 2008-09 Fiscal Year for each fund and revenue source. PASSED, APPROVED AND ADOPTED, at the regular meeting of the Palm Desert Housing Authority held on this day of 2009, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: Robert S. Spiegel, Chairperson ATTEST: Rachelle D. Klassen, Secretary Resolution No. BA-39 Exhibit "A" PALM DESERT HOUSING AUTHORITY MID -YEAR 2008-2009 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET FUND/ ACCOUNT ORIGINAL INCREASE/ REVISED DEPARTMENT DESCRIPTION APPROP (DECREASE) APPROP EXPLANATION Fund 871 - Housing Authority - Laguna Palms 871 8610 466 4050 Capital Expense 18,000 18,000 address & carport signage, contruction plumbing 18,000 18,000 problems Fund 871 - Housing Authority - Catalina Gardens 871 8620 466 3089 Payroll 84,045 9,500 93,545 Re -allocation of staff 84,045 9,500 93,545 Fund 871 - Housing Authority - California Villas 871 8680 466 3311 Replacement Expense 39,994 5,500 45,494 Replace unforseen construction expense 871 8680 466 3695 Other Service and Charges 24,240 5,000 29,240 Deductible for fire damages 871 8680 466 4001 Capital Improvements 5,170,528 (433,500) 4,737,028 Reduced to Fund Various Improvements 871 8680 466 4050 Capital/Emergency Repairs - 45,500 45,500 Pool & spa, construction expense, A-12 and carport 5,234,762 (377,500) 4,857,262 Fund 871 - Housing Authority - Taos Palms 871 8690 466 4001 Capital Improvements 350,000 350,000 Unit renovation 350,000 350,000 Totals 5,318,807 5,318,807 12/1/2008 3:15 PM PALM DESERT HOUSING AUTHORITY MID -YEAR 2008-2009 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET FUND/ ACCOUNT DEPARTMENT DESCRIPTION Fund 871 - Housing Authority Rent 871 8692 362 2000 Rent -Palm Village 871 8692 363 2000 Rent -Palm Village Totals ORIGINAL INCREASE/ REVISED APPROP (DECREASE) APPROP EXPLANATION 161,470 (161,470) - Correct Account Number 161,470 161,470 Correct Account Number 161,470 - 161,470 161,470 161,470 Resolution No. BA_39 Exhibit "B'