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HomeMy WebLinkAboutRes 499 and HA-25 FY 2004/2005 Budget Mid-Year AdjustmentsPALM 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 2004-05 BUDGETS DENNIS M. COLEMAN, REDEVELOPMENT/HOUSING FINANCE MANAGER FEBRUARY 24, 2005 AGENCY RESOLUTION NO. HOUSING AUTHORITY RESOLUTION NO. HA That by Minute Motion: The Redevelopment Agency adopt Resolution No , amending the Fiscal Year 2004-05 budget as a result of Mid -Year Adjustments; and 2. That Housing Authority adopt Resolution No. HA , amending the Fiscal Year 2004-05 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 both the Redevelopment Agency and the Housing Authority budgets. We are proposing adjustments to both 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. The adjustments also include higher debt service payments for new bond issues and adjustments to capital projects. Revenue: Staff proposes to increase the budgeted revenue to reflect increases in tax increment revenues to all four project areas. The records and receipt of the first payments of tax increment reflect a projected increase of tax increment revenue of $2,952,724 as follows: W IAgenda ltems12005-Feb 241AgencyHAMld- Year Adjustmentslmldyearrda-ha wpd Staff Report Palm Desert Redevelopment Agency/Housing Authority Mid -Year Budget Adjustments Page 2 February 24, 2005 Project Area No. 1 $1,984,821 Project Area No. 2 228,136 Project Area No. 3 33,287 Project Area No. 4 706,480 Staff is also recommending changes to the project Housing Set -Aside transfers, net of SB 2557 adjustments of $670,548. In addition, we are recommending that we increase the Financing Authority transfer from the Agency by $57,077 to cover this year's increase in debt service for the Project Area No. 1 $24.945 million bond issue. Debt Service Funds: Staff is proposing increases to the Debt Services Funds to reflect the higher pass -through payments, housing set -aside transfers and increased debt service payment for the Project Area No. 1 $24.945 million bond issue. The following increases are recommended: Project Area No. 1 Debt Service ($24.945 Million Bond Issue) $ 57,077 ERAF Payment 1,093,352 Pass -Through Payments 661,161 Housing Set -Aside Transfer 407,069 Project Area No. 2. ERAF Payment $ 378,043 Pass -Through Payment 522,182 Housing Set -Aside Transfer 112,000 Project Area No. 3 ERAF Payment $ 45,511 Pass -Through Payment 583,004 Housing Set -side Transfer 5,816 Project Area No. 4 ERAF Payment $ 256,517 Housing Set -Aside Transfer 145,663 Financing Authority Interest Expense Principal Expense $ (437,923) 495,000 The Financing Authority increases represent adjustments from the funds transferred from the Debt Service Funds of the Redevelopment Agency, for the aforementioned bond issue. Low and Moderate Housinq Set -Aside: Staff is proposing to increase the expenditures for the Housing Capital funds as follows: Portola Palms Mobile Home Maintenance $ 2,000 Multi -Family Improvement Program $ 202,000 Rental Assistance Program $ 55,000 W IAgenda ltems12005-Feb 241AgencyHAMld- Year Adjustmentslmldyearrda-ha wpd Staff Report Palm Desert Redevelopment Agency/Housing Authority Mid -Year Budget Adjustments Page 3 February 24, 2005 These items totaling $259,000 were included in the preliminary budget but were inadvertently left out of the final budget. Housinq Authoritv: Staff is recommending the following increased appropriations to the Housing Authority properties as follows: Laguna Palms Payroll $ 3,000 Contract Services 11,250 Emergency Repair 6,000 Advertising/Promotional 1,000 California Villas Payroll $ 24,266 Interior Building 4,500 Emergency Repair 5,000 Contract Services 53,264 Advertising/Promotional 1,000 Other Services 2,000 Capital Improvements 317,652 One Quail Place Emergency Repair $ 7,000 Advertising/Promotional 2,000 Repairs and Maintenance 12,000 Las Serenas Contract Services $ 650 Other Services 2,500 Advertising/Promotional 1,000 Capital Improvements 25,000 Catalina Gardens Contract Services $ 400 Emergency Repairs 6,000 Desert Pointe Payroll $ 8,840 Contract Services 7,685 Emergency Repair 48,000 Advertising/Promotional 1,000 Neighbors Payroll $ 1,560 Contract Services 3,485 Taos Palms Payroll $ 1,560 Contract Services 3,005 Advertising/Promotional 1,000 W IAgenda ltems12005-Feb 241AgencyHAMld- Year Adjustmentslmldyearrda-ha wpd Staff Report Palm Desert Redevelopment Agency/Housing Authority Mid -Year Budget Adjustments Page 5 February 24, 2005 The total increase to the Housing Authority budget is $561,617, of which $342,652 is for capital improvements. The majority of the capital improvements are for the renovations at California Villas to meet our goal of having 48 rental ready units available by June 2005. There are minor modifications needed to the parking lots and sidewalks to Las Serenas to conform to ADA standards for the residents. Staff is recommending that we increase the budget for several of our properties by $72,000 for unforeseen emergency repairs. The largest increase is $48,000 for Desert Pointe for curing one of the apartments for a mold problem and other slight repairs. The rest of the increases are for contractual services, advertising and promotion, and payroll for the properties. The largest of these is an increase to California Villas for $53,264 for pest control, cleaning and services associated with getting these units ready for rental. This increase also includes funds forfourjourneymen who are temporaries assisting with the renovations. The other increases to contracting services are forthe increased security patrols and office alarm monitoring. The Housing Commission reviewed the above recommendations on February 9, 2005, and has recommended that the Housing Authority approve the increased budget appropriations. Staff is recommending that the Agency Board and the Housing Authority approve their attached respective resolutions which amend their respective budgets. Submitted By: Dennis M. Coleman Redevelopment/Housing Finance Manager DMC:mh Approval: Justin McCarthy, ACM Redevelopment Carlos L. Ortega, Executive Director W IAgenda ltems12005-Feb 241AgencyHAMld- Year Adjustmentslmldyearrda-ha wpd Department Head: David Yrigoyen Director of Redevelopment/Housing Paul S. Gibson, Director of Finance Staff Report Palm Desert Redevelopment Agency/Housing Authority Mid -Year Budget Adjustments Page 4 February 24, 2005 The total increase to the Housing Authority budget is $561,617, of which $342,652 is for capital improvements. The majority of the capital improvements are for the renovations at California Villas to meet our goal of having 48 rental ready units available by June 2005. There are minor modifications needed to the parking lots and sidewalks to Las Serenas to conform to ADA standards for the residents. Staff is recommending that we increase the budget for several of our properties by $72,000 for unforeseen emergency repairs. The largest increase is $48,000 for Desert Pointe for curing one of the apartments for a mold problem and other slight repairs. The rest of the increases are for contractual services, advertising and promotion, and payroll for the properties. The largest of these is an increase to California Villas for $53,264 for pest control, cleaning and services associated with getting these units ready for rental. This increase also includes funds for fourjourneymen who are temporaries assisting with the renovations. The other increases to contracting services are for the increased security patrols and office alarm monitoring. The Housing Commission reviewed the above recommendations on February 9, 2005, and has recommended that the Housing Authority approve the increased budget appropriations. Staff is recommending that the Agency Board and the Housing Authority approve their attached respective resolutions which amend their respective budgets. Submitted By: Department Head: Dennis M. Coleman Vivid Yrigoye Redevelopment/Housing Finance Manager Director of Vvelopment/Housing DMC:mh Approval: %04 sti McCartAC/d4p ment Paul S. Gibson, Director of Finance J Carlos L. Ortega,xlecutive Director G.IRDAIDennis ColemanlDATA1WPIREPORTS1022405 midyearrda-ha.wpd RESOLUTION NO. 499 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2004-05 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 2004-05 Budget; NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency, Palm Desert, California, that the 2004-05 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 2004-05 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 2004- 05. 2. The amounts shown in the column entitled "Revised Estimated Revenues" in the tab entitled "Redevelopment Agency, Mid -Year 2004-05 Budget Review, Revised Estimated Revenues", attached hereto as Exhibit "B", are hereby accepted as the Estimated Revenues for the 2004-05 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 24t" day of February 2005, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Rachelle D. Klassen, Secretary Buford A. Crites, Chairman W \Agenda Items\2005-Feb 24\AgencyHAMid-Year Adjustments\rdaresomidyrbdgt doc Resolution No. Exhibit "A" PALM DESERT REDEVELOPMENT AGENCY MID -YEAR 2004-2005 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET CHANGE REVISED FUND/DEPARTMENT INC/(DEC) APPROPRIATIONS Debt Service PA No. 1 $ 24,061,648 Debt Service $ 57,077 Eraf Payment $ 1,093,352 Pass -Through Payments $ 661,161 Housing Set -Aside Transfer $ 407,069 Debt Service PA No. 2 $ 8,442,957 Eraf Payment $ 378,043 Pass -Through Payments $ 522,182 Housing Set -Aside Transfer $ 112,000 Debt Service PA No. 3 $ 1,672,239 Eraf Payment $ 45,511 Pass -Through Payments $ 583,004 Housing Set -Aside Transfer $ 5,816 Debt Service PA No. 4 $ 2,343,300 Eraf Payment $ 256,517 Housing Set -Aside Transfer $ 145,663 Financing Authority $ 57,077 Interest Expense $ (437,923) Principal Expense $ 495,000 Housing Fund -Capital $ 269,104 Portola Palms Mobile Home Maintenance $ 2,000 Multi -Family Improvement Program $ 202,000 Rental Assistance Program $ 55,000 Total $ 4,583,472 $ 36,846,325 PALM DESERT REDEVELOPMENT AGENCY MID -YEAR 2004-2005 BUDGET REVIEW REVISED ESTIMATED REVENUES FUND/DEPARTMENT Project Area No. 1 Tax Increment $ Project Area No. 2 Tax Increment $ Project Area No. 3 Tax Increment $ Project Area No. 4 Tax Increment $ Financing Authority Transfer in from Debt Service Funds $ Housing Set -Aside Transfer in PA No. 1 $ Transfer in PA No. 2 $ Transfer in PA No. 3 $ Transfer in PA No. 4 $ Totals $ Resolution No. Exhibit "B" CHANGE REVISED INC/(DEC) APPROPRIATIONS $ 35,420,680 1,984,820 $ 12,711,136 228,136 $ 2,135,287 33,287 $ 8,975,480 706,480 $ 17,903,601 57,077 $ 15,445, 951 407,069 112,000 5,816 145,663 3,680,348 $ 57,171,455 RESOLUTION NO. HA-25 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY, PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2004- 05 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 2004-05 Budget; NOW, THEREFORE, BE IT RESOLVED by the Housing Authority, Palm Desert, California, that the 2004-05 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 2004-05 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 2004- 05. PASSED, APPROVED AND ADOPTED, at the regular meeting of the Palm Desert Housing Authority held on this 24t" day of February 2005, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Rachelle D. Klassen, Secretary Buford A. Crites, Chairman Resolution No. Exhibit "A" PALM DESERT HOUSING AUTHORITY MID -YEAR 2004-2005 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET CHANGE REVISED REASON FOR FUND/DEPARTMENT INC/(DEC) APPROPRIATIONS CHANGE One Quail Place $ 2,723,236 Increase due to new account created for unforeseen Emerqency Repair $ 7,000 emerqency repairs Advertisinq/Promotional $ 2,000 Increase due to formal bid advertisinq requirements Repairs & Maintenance $ 12,000 Increase due to need for pruning/trimminq all trees Las Serenas $ 981,807 Contract Services $ 650 Increase due to addition of office alarm monitorinq Other Services $ 2,500 Increase due to additional officer supplies/equipment Advertisinq/Promotional $ 1,000 Increase due to formal bid advertisinq requirements Increase due to handicap modifications for parking Capital Expense $ 25,000 and sidewalk Catalina Gardens $ 290,573 Contract Services $ 400 Increase due to addition of office alarm monitorinq Increase due to new account created for unforeseen Emerqency Repairs $ 6,000 emerqency repairs Desert Pointe $ 498,441 Increase due to additional groundkeeper to be shared Payroll $ 8,840 with Taos Palms Increase due to addition of courtesy patrol and office Contract Services $ 7,685 alarm monitorinq Emerqency Repair $ 48,000 Increase due to mold remediation and repair of unit Adversitinq/Promotional $ 1,000 Increase due to formal bid advertisinq requirements _Neighbors $ 189,306 Increase due to additional groundkeeper to be shared Payroll $ 1,560 with Laquna Palms Increase due to addition of courtesy patrol and Contract Services $ 3,485 pest control Taos Palms $ 121,736 Increase due to additional groundskeeper to be shared Payroll $ 1,560 with Desert Pointe Increase due to addition of courtesy patrol and Contract Services $ 3,005 pest control Advertisinq/Promotional $ 1,000 Increase due to formal bid advertisinq requirements California Villas $ 1,614,179 Increase due to additional groundskeeper and transfer of construction Payroll $ 24,266 supervisor to California Villas Increase due to new account created for unforeseen Emerqency Repair $ 5,000 emerqency repairs Increase due to addition of pest control, cleaning service, sub- contractor for rent ready units, and four journeyman to temp labor Contract Services $ 53,264 pool Other Services $ 2,000 Increase due to additional office supplies/equipment Interior Buildinq $ 4,500 Increase due to upqrade to laundry room Advertisinq/Promotional $ 1,000 Increase due to formal bid advertisinq requirements Increase necessary to meet goal of 48 rent ready units by June, 2005 Included are cost per unit, electrical Capital Expense $ 317,652 upqrades, the shower walls, door replacements, etc Laguna Palms $ 1,364,370 Increase due to additional groundskeeper to be shared Payroll $ 3,000 with Neighbors Increase due to new account created for unforeseen Emerqency Repair $ 6,000 emerqency repairs Increase due to addition of office alarm monitoring, Contract Services $ 11,250 courtesy patrol and pest control services Advertisinq/Promotional $ 1,000 Increase due to formal bid advertisinq requirements $ 561,617 $ 7,783,646