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Home My WebLink AboutRDA & HA Amending FY 06-07 Budgets/Res 539PALM DESERT REDEVELOPMENT AGENCY/ PALM DESERT HOUSING AUTHORITY STAFF REPORT REQUEST: ADOPTION OF RESOLUTIONS OF THE REDEVELOPMENT AGENCY AND THE HOUSING AUTHORITY AMENDING THEIR FISCAL YEAR 2006-07 BUDGETS SUBMITTED BY: DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING DATE: FEBRUARY 8, 2007 CONTENTS: AGENCY RESOLUTION NO. 539 HOUSING AUTHORITY RESOLUTION NO. HA-33 Recommendation: By Minute Motion: 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 Summarv: 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 Fagade 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. Revenues Agency Housing Authority Expenses Agency Housing Authority Current Budqet 69, 501, 535 5,054,725 198,590,293 19,832,197 Mid -Year Revised Budqet 77,329,687 16,377,532 206,133,502 20,182,544 G VdaWeronica Tapia\Word Files\StaH 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 $3,611,858 Project Area No. 2 1,263,927 Project Area No. 3 337,016 Project Area No. 4 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 GARDA\MARIA HUNT\WPDATA\YRIGOYEN\STFRPTS\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 Debt Service Payments Housing Set -Aside Transfer Project Area No. 2. Pass -Through Payment Debt Service Payments Housing Set -Aside Transfer Project Area No. 3 Pass -Through Payment Debt Service Payments Housing Set -Aside Transfer $ 1,421,102 (1,944,793) 722,371 $ 732,851 (1,432,942) 252,786 $ 104,116 (885,619) 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 Housinq 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. GARDAWARIA MUNnWPDATA\YRIGOYENISTFRPTSW20807MIDYRBUDGETADJUSTMENT.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. Financinq 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 Tax Increment Rents Transfers In Total Budgeted Expense Operations Capital Debt Service/Pass Thru Total Housing Authority: Redevelopment Agency $76,024,995 1,304,692 $77,329,677 $16,995,202 $116,981,266 $72,157,034 $206,133,502 Housing Authority $4,836,831 $11, 540,701 $16,377,532 $6,722,954 $13,459, 590 $20,182,544 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 GARDA\VERONICA TAPIAIWORD FILES1STAFF REPORTS12006-07 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 Authority, which amend their respective budgets. Submitted by: Approval: c a Dave Yrigoyen Director of Redevelopment/Housing GARDAWARIA HUNT\WPDATA\YRIGOYEN\STFRPTS\020807MIDYRBUDGETADJUSTMENT.DOC Approval: Carlos L. Ora, Executive Director Ju 0 n Mc arthy Ct Redevelop Paul S. Gibson, Director of Finance nt i 1 o RESOLUTION NO. 539 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2006-07 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 2006-07 Budget; NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency, Palm Desert, California, that the 2006-07 Budget is hereby revised as follows: The amount shown in the column entitled "Revised Appropriations" in the table entitled "Palm Desert Redevelopment Agency, Mid -Year 2006-07 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 2006- 07. 2. The amounts shown in the column entitled "Revised Estimated Revenues" in the tab entitled "Palm Desert Redevelopment Agency, Mid -Year 2006- 07 Budget Review, Revised Estimated Revenues", attached hereto as Exhibit "B", are hereby accepted as the Estimated Revenues for the 2006- 07 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 2007, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Rachelle D. Klassen, Secretary Richard S. Kelly, Chairman G:\RDA\Veronica Tapia\Word Files\Staff Reports\2006-07 RDA Midyear Budget Resolution.doc RESOLUTION NO. 539 Exhibit "A" PALM DESERT REDEVELOPMENT AGENCY MID -YEAR 2006-2007 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET CHANGE REVISED FUND/DEPARTMENT INC/(DEC) APPROPRIATIONS Redevelopment Aaencv Protect Area #1 6.800 Mileage 8504195-466-3115 $ 2,000 Additional mileage due to training/conferences Phone Service 850-4195466-3650 $ 500 Additional phone service fees Redevelopment Agency Prolect Area #2 $ 9,604612 Property Acquisition 851-44954644001 $ (9,500,000) Incorrect account number applied at budget. Property Acquisition 8514673464-4001 $ 3,502,512 Correct account number (36 Acre Acquisition) Economic Development $ 240.200 Printing/Duplicating 850-4430-422-3510 $ 7,000 Print New Brochures/Video Dues 850-4430422-3630 $ 1,000 New Memberships El Paseo Courtesy Carts 850-4416-414-3681 $ 5,000 Golf Cart Maintenance Debt Service PA No. 1 S 34,613.669 Debt Service 97-1 Interest 860-4199499-5022 $ (1,327,219) Refunded Portion of this Issue Debt Service 04-1 Principal 8604199-499-5040 $ (200,000) Reduction in Debt Service Debt Service 04-1 Interest 860-4199499-5041 $ (2,440,625) Reduction in Debt Service Debt Service 06-1 Principal 860-4199-499-5042 $ 2,015,000 Increase in Debt Service Debt Service 06-1 Interest 860-4199-499-5043 $ 8,051 Increase in Debt Service Pass-Throuqh Payments 860-4195-466-3647 $ 1,421.102 Increase in Tax Increment Housing Set -Aside Transfer 860-4199-499-5090 $ 722.371 Increase in Tax Increment Debt Service PA No. 2 S 11.673,747 Debt Service 03-2 Interest 8614199499-5034 $ (1,044,955) Reduction in Debt Service Debt Service 03-2 Principal 861-4199499-5035 $ (285,000) Reduction in Debt Service Debt Service 06-2 Interest 861-4199-499-5046 $ 182,013 Increase in Debt Service Pass -Through Payments 861-4195466-3647 $ 732,851 Increase in Tax Increment Housing Set -Aside Transfer 861-4199-499-5090 $ 252,786 Increase in Tax Increment Debt Service PA No. 3 $ 2.938.515 Debt Service 03-3 Principal 8634199499-5038 $ (110,000) Reduction in Debt Service Debt Service 03-3 Interest 863-4199-499-5039 $ (546,150) Reduction in Debt Service Debt Service 06-3 Principal 863-4199-499-5040 $ (70,000) Reduction in Debt Service Debt Service 06-3 Interest 863-4199-499-5041 $ (159,469) Reduction in Debt Service Pass-Throuqh Payments 863-4195-466-3647 $ 104,116 Increase in Tax Increment Housing Set -Aside Transfer 8634199-499-5090 $ 67.403 Increase in Tax Increment Debt Service PA No. 4 $ 11.002.332 Advance Refund Escrow 8644195-466-3643 $ 292,738 Escrow Refunded Debt Service 984 Interest 864-4199499-5028 $ (79,169) Reduction in Debt Service Debt Service 98-4 Principal 864-4199-499-5029 $ (250,000) Reduction in Debt Service Debt Service 01.4 Interest 864-4199499-5030 $ (125,000) Reduction in Debt Service Debt Service 01-4 Principal 864-4199-499-5031 $ (533,088) Reduction in Debt Service Debt Service 06-4 Principal 864-4199-499-5032 $ (125,000) Reduction in Debt Service Debt Service 06-4 Interest 864-4199499-5033 $ (55,134) Reduction in Debt Service Pass -Through Payments 864-4195-466-3647 $ 639,633 Increase in Tax Increment Housing Set -Aside Transfer 864.4199-499-5090 $ 262.132 Increase in Tax Increment Housin Fund -Capital 16,403.556 Office Supplies 870-4195466-2110 $ 1,000 Additional Office Supplies Postage 8704195-466-3660 $ 2,000 Increase due to Fed Ex Office Equipment 870-41954664040 $ 5,000 Fumiture/Filing System Acquisition Interfund Op Transfer Out 870-4199-466-5010 $ 11,540,701 Transfer to HA Cash for Complex Renovation Palm Village Apartments 870-4349-4334001 $ 300,000 Increase due to Extended Condifions/Signage Workforce Housing Grant 870-4490-464-3090 $ 93,209 Grant Funding -Clubhouse Furnishings Financing Authority $ 24796.T76 Interest Expense 3904790477-3635 $ (1,656,407) Decrease in Interest Due Principal Expense 3904790477-3645 $ 1,170,000 Increase in Principal Due Total $ 4,822,902 $ 108,176,706 RESOLUTION NO. 539 Exhibit "B" PALM DESERT REDEVELOPMENT AGENCY MID -YEAR 2006.2007 BUDGET REVIEW REVISED ESTIMATED REVENUES CHANGE REVISED FUND/DEPARTMENT INC/(DEC) PROJECTIONS Tax Increment 860-0000-317-1000 $ 23,123 Increase in Tax Increment 86Q-0000-317-1100 $ 3,588,735 Tax Increment 861-0000-317-1000 $ 1.263,927 Increase in Tax Increment Tax Increment 864-0000-317-1000 $ 1.310.659 Increase in Tax Increment Totals I rdnJler rr1 r"M rYU. I a( U-J000-0751- I u 1 r i rLL,Jf1 111GfedSe M I UA 1"Ve1nenl Transfer in PA No. 2 870-0000-391-1012 $ 252,786 Increase in Tax Increment Transfer in PA No. 3 870-0000-391-1013 $ 67,403 Increase in Tax Increment Transfer in PA No. 4 870-0000-391-1014 $ 262,132 Increase in Tax Increment