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Home My WebLink AboutSR - RDA & HA Amnd FY 2007/08 Budget/Res 545/Res HA-35PALM 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 2007-08 BUDGETS SUBMITTED BY: DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING DATE: FEBRUARY 14, 2008 CONTENTS: AGENCY RESOLUTION NO. 545 HOUSING AUTHORITY RESOLUTION NO. HA-35 Recommendation: Waiver further reading and adopt: Resolution No. 545 , amending the Fiscal Year 2007-08 budget as a result of Mid -Year Adjustments; and 2. Resolution No. HA- 35 , amending the Fiscal Year 2007-08 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. Revenues Agency Housing Authority Expenses Agency Housing Authority Current Budget 95,006,433 5,274,302 201,854,587 19,008,150 Mid -Year Revised Budget 101,231,013 4,905,474 207,875,001 19,038,150 G.\rda\Veronica Tapia\Word Files\Staff Reports\2007-08 Mid Year Budget Adjustment doc Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amending their Fiscal Year 2007-08 Budgets Page 2 of 5 February 14 2008 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 $4,831,357 as follows: Project Area No. 1 $2,181,268 Project Area No. 2 1,146,017 Project Area No. 3 480,123 Project Area No. 4 1,023,949 Staff is also recommending changes to the project Housing Set -Aside transfers, net of SB 2557 adjustments of $1,393,223. Staff also anticipates a decrease in rent at the Housing Authority properties due to the construction/renovations at Laguna Palms, California Villas, Country Village, Palm Village, and La Rocca Villas, which will result in an adjustment to revenues of ($368,828). Expenditures: Redevelopment: Staff is proposing to increase the expenditures for the Redevelopment Agency funds as follows: Phone Service $ 2,000 El Paseo Courtesy Carts $ 10,000 Alessandro Improvements $ 1,478,524 Property Acquisition $ 1,500,000 The increase to phone service is to accommodate the reimbursement to management staff for personal cell phones. The increase to the courtesy carts is to accommodate increased maintenance due to the age of the vehicles. The increase to Alessandro Improvements is to accommodate potential acquisitions necessary in order to complete the project. Finally, the increase to Property Acquisition is to assist in alleviating blight in Project Area 1. 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 $ 1,543,888 G:\RDA\VERONICA TAPIAMORD FILES\STAFF REPORTS\2007.08 MID YEAR BUDGET ADJUSTMENT.DOC Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amending their Fiscal Year 2007-08 Budgets Page 3 of 5 February 14 2008 Called Premium Expense $ 1,679,486 Housing Set -Aside Transfer 323,965 Project Area No. 2. Pass -Through Payment $ 787,713 Debt Service Payments 40,000 Housing Set -Aside Transfer 199,479 Project Area No. 3 Pass -Through Payment $ 469,164 Housing Set -Aside Transfer 89,643 Project Area No. 4 Pass -Through Payment $ 513,508 Housing Set -Aside Transfer 182,049 Staff is also recommending partial repayment of the advance due to the City in an amount not to exceed $10,000,000. Low and Moderate Housinq Set -Aside: Staff is proposing to increase the expenditures for the Housing Capital funds as follows: Fred Waring Street Imps ($ 5,733,000) Workforce Housing Grant $ 83,995 Property Acquisition $ 2,550,000 Relocation Assistance $ 300,000 The decrease to the Fred Waring Street Improvements is to correct an entry in the budgeting system. The increase to the Workforce Housing Grant will create the budget necessary to expend additional grant funds awarded by HCD. The increase to Property Acquisition will provide funding to Housing Set -Aside to reimburse the Agency for units acquired for Low and Moderate Housing purposes. Finally, the increase to relocation assistance is to provide assistance to the residents at Country Village Apartments. Financinq Authority: Staff is recommending a net increase to the total debt service principal in the amount of $40,000 to accurately reflect the amount of debt service due in 2007-08. The overall changes are as follows: Budgeted Revenue Redevelopment Agency Housing Authority Tax Increment $84,501,790 G:\RDA\VERONICA TAPIR\WORD FILES\STAFF REPORTS\2007-08 MID YEAR BUDGET ADJUSTMENT.DOC Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amending their Fiscal Year 2007-08 Budgets Page 4 of 5 February 14 2008 Rents $4,905,474 Trans In (20% HSA) 16,729,223 Total $101,231,013 $4,905,474 Budgeted Expense Operations $5,383,720 $6,151,618 Capital $115,059,171 $12,886,532 Debt Service/Pass Thru $87,432,110 Total $207,875,001 $19,038,150 Housinq Authoritv: Staff is recommending the following adjustments to appropriations to the Housing Authority properties as follows: Laguna Palms Capital Expense $ 38,500 Catalina Gardens Payroll $ 14,000 Capital/Emergency Repairs 5,000 Desert Pointe Repairs & Maintenance $ 8,000 Las Serenas Contract Services $ (87,880) Management Fee (30,780) Payroll 118,660 Neighbors Garden Capital/Emergency Repairs $ 10,000 One Quail Place Contract Services $ (505,782) Management Fee (97,748) Payroll 603,530 Pueblos Repairs & Maintenance $ 6,000 California Villas Repairs & Maintenance $ 10,000 Capital Improvements ( 25,000) Capital/Emergency Repairs 25,000 Taos Palms Capital/Emergency Repairs $ 50,000 Country Village Payroll $ (22,380) Contract Services (37,500) Management Fee (17,000) Advertising/Promotion ( 500) GARDAWERONICA TAPIAIWORD FILES\STAFF REPORTS0007-08 MID YEAR BUDGET ADJUSTMENT.DOC Staff Report Adoption of Resolutions of the Redevelopment Agency/Housing Authority amending their Fiscal Year 2007-08 Budgets Page 5 of 5 February 14 2008 Country Village Repairs & Maintenance (13,000) Utility Service (31,500) Miscellaneous Expense (4,000) Capital/Emergency Repairs 14,380 The total net increase to the Housing Authority budget amounts to $30,000 due to the reductions to the Country Village expenditures. The Housing Commission reviewed the above recommendations on January 9, 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: L,916've Yrigoyer� Director of development/Housing Approval: Carlos L. Ortega, Vecutive Director LqWUL�z°C� BY RDA ON ':� 0 � (S G' VERIFIED BY Original on file with City Clerk's Office Approval: 1y sti-ii McCarthy ACM Redevelopment Pj�- Paul S. Gibson, Director of Finance BY HOUSG AUTi--! %Ei 41 IED BY:I�!0� 4 v,p��r Zc�ti o i § e `il?lith City 01`' -i:9 G:\RDA\VERONICA TAPIR\WORD FILES\STAFF REPORTS\2007-08 MID YEAR BUDGET ADJUSTMENT.DOC RESOLUTION NO. 545 A RESOLUTION OF THE PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2007-08 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 2007-08 Budget; NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency, Palm Desert, California, that the 2007-08 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 2007-08 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 2007- 08. 2. The amounts shown in the column entitled "Revised Estimated Revenues" in the tab entitled "Palm Desert Redevelopment Agency, Mid -Year 2007- 08 Budget Review, Revised Estimated Revenues", attached hereto as Exhibit "B", are hereby accepted as the Estimated Revenues for the 2007- 08 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 2008, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Rachelle D. Klassen, Secretary Jean M. Benson, Chairperson G \rda\Veronica I apia\Word Files\Staff Reports0007-08 RDA Midyear Budget Resolution doc Resolution No. 545 Exhibit "A" PALM DESERT REDEVELOPMENT AGENCY MID -YEAR 2007-2008 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET CHANGE FUND/ ACCOUNT ORIGINAL INCREASE/ REVISED DEPARTMENT DESCRIPTION APPROP (DECREASE) APPROP EXPLANATION Fund 850 - Project Area #1/Administration 850 4195 466 3650 Phone 2,500 2,000 4,500 Increased phone charges 2,500 2,000 4,500 Fund 850 - Project Area #1/Capital Improvements 850 4416 414 3681 El Paseo Courtesy Carts 220,000 10,000 230,000 Increased maintenance due to age 850 4341 433 4001 Alessandro Improvements 4,882,248 1,478,524 6,360,772 Potential property acquisition 850 4495 466 4001 Property Acquisition 2,550,000 1,500,000 4,050,000 Potential property acquisition 7,652,248 2,988,524 10,640,772 Fund 860 - Project Area #1/Debt Service 860 4195 466 3644 Premium Expense - 1,679,486 1,679,486 Set -Aside Required to Call Bonds 860 4195 466 3647 Pass Thru Payments 18,246,395 1,543,888 19,790,283 Increase in Tax Increment 860 4199 499 5036 03-1 Prin 950,000 (950,000) - Correct original budget posting 860 4199 499 5037 03-1 Int - 950,000 950,000 Correct original budget posting 860 4199 499 5090 Transfer Out to L/M 9,419,601 323,965 9,743,566 Increase in Tax Increment 28,615,996 3,547,339 32,163,335 Fund 861 - Project Area #2/Debt Service 861 4195 466 3647 Pass Thru Payments 6,801,715 787,713 7,589,428 Increase in Tax Increment 861 4199 499 5047 06-2 Prin 907,438 40,000 947,438 Increase due to Accreted Interest Value 861 4199 499 5090 Transfer Out to UM 3,326,781 199,479 3,526,260 Increase in Tax Increment 11,035,934 1,027,192 12,063,126 Fund 863 - Project Area #3/Debt Service 863 4195 466 3647 Pass Thru Payments 1,491,958 469,164 1,961,122 Increase in Tax Increment 863 4199 499 5090 Transfer Out to UM 688,884 89,643 778,527 Increase in Tax Increment 2,180,842 558,807 2,739,649 Fund 864 - Project Area #4/Debt Service 864 4195 466 3647 Pass Thru Payments 6,699,617 513,508 7,213,125 Increase in Tax Increment 864 4199 499 5090 Transfer Out to UM 2,498,821 182,049 2,680,870 Increase in Tax Increment 9,198,438 695,557 9,893,995 Fund 870 - Low & Mod Set-Aside/Capital Improvements 870 4384 433 3901 Fred Waring Street Imp's 5.733,000 (5,733,000) - Amount Budgeted in Error 870 4490 464 3902 Workforce Housing Grant 54,142 83,995 138,137 Award of 2006 WFH Grant 870 4495 464 3901 Property Acquisition - 2,550,000 2,550,000 Potential Property Acquisitions 870 4688 464 4001 Rental Assistance 150,000 300,000 450,000 Relocation Assistance 5,937,142 (2,799,005) 3,138,137 Fund 390 - Financing Authority 390 4790 477 3635 Interest Expense 19,950,002 (950,000) 19,000,002 Correct Account Posting 390 4790 477 3645 Principle Expense 10,577,438 990,000 11,567,438 Correct Account Posting 30,527,440 40,000 30,567,440 0 Resolution No. 545 Exhibit "B" PALM DESERT REDEVELOPMENT AGENCY MID -YEAR 2007-2008 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 9,248,516 9,248,516 860 0000 317 1100 Tax Increment PA 1 Annex 37,849,490 2,181,268 40,030,758 Increase in Tax Increment 47,098,006 2,181,268 49.279,274 Fund 861 - Project Area #2 861 0000 317 1000 Tax Increment PA 2 16,633,905 1,146,017 17,779,922 Increase in Tax Increment 16,633,905 1,146,017 17,779,922 Fund 863 - Project Area #3 863 0000 317 1000 Tax Increment PA 3 3,444,419 480,123 3,924,542 Increase in Tax Increment 3,444,419 480,123 3,924,542 Fund 864 - Project Area #4 864 0000 317 1000 Tax Increment PA 4 12,494,103 1,023,949 13,518,052 Increase in Tax Increment 12,494,103 1,023,949 13,518,052 Fund 870 - Housing Set -Aside 870 0000 391 1011 Tax Increment 20%-PA 1 9,119,601 623,965 9,743,566 Increase in Tax Increment 870 0000 391 1012 Tax Increment 20%-PA 2 3,028,694 497,566 3,526,260 Increase in Tax Increment 870 0000 391 1013 Tax Increment 20%-PA 3 688,884 89,643 778,527 Increase in Tax Increment 870 0000 391 1014 Tax Increment 20%-PA 4 2,498,821 182,049 2,680,870 Increase in Tax Increment 15, 336,000 1,393,223 16,729,223 FINANCING AUTHORITY 390 0000 391 0000 Op Tr In 30,527,440 40,000 30,567,440 Increase in Total Debt Service 30,527,440 40,000 30,567,440 E RESOLUTION NO. HA- 35 A RESOLUTION OF THE PALM DESERT HOUSING AUTHORITY, PALM DESERT, CALIFORNIA, AMENDING THE FISCAL YEAR 2007- 08 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 2007-08 Budget; NOW, THEREFORE, BE IT RESOLVED by the Housing Authority, Palm Desert, California, that the 2007-08 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 2007-08 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 2007-08. 2. The amounts shown in the column entitled "Revised Estimated Revenues" in the tab entitled "Palm Desert Housing Authority, Mid -Year 2007-08 Budget Review, Revised Estimated Revenues", attached hereto as Exhibit "B", are hereby accepted as the Estimated Revenues for the 2007-08 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 2008, by the following vote to wit: AYES: NOES: ABSENT: ABSTAIN: ATTEST: Rachelle D. Klassen, Secretary Jean M. Benson, Chairperson PALM DESERT HOUSING AUTHORITY MID -YEAR 2007-2008 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET FUND/ ACCOUNT DEPARTMENT DESCRIPTION Fund 871 - Housing Authority - Laguna Palms 871 8610 466 4050 Capital Expense Fund 871 - Housing Authority - Catalina Gardens 871 8620 466 3089 Payroll 871 8620 466 4050 Capital/Emergency Repairs Fund 871 - Housing Authority - Desert Pointe 871 8630 466 3310 Repairs & Maintenance Fund 871 - Housing Authority - Las Serenas 871 8640 466 3092 Contract Services 871 8640 466 3093 Management Fee 871 8640 466 3098 Payroll Fund 871 - Housing Authority - Neighbors Garden 871 8650 466 4050 Capital/Emergency Repairs Fund 871 - Housing Authority - One Quail Place 871 8660 466 3092 Contract Services 871 8660 466 3093 Management Fee 871 8660 466 3095 Payroll Fund 871 - Housing Authority - The Pueblos Apts 871 8670 466 3310 Repairs & Maintenance Fund 871 - Housing Authority - California Villas Resolution NoHA-35 Exhibit "A" ORIGINAL INCREASE/ REVISED APPROP (DECREASE) APPROP EXPLANATION 38,500 38.500 ranges, refrigerators, range hoods, furniture 38,500 38,500 & window coverings 107,913 107.913 49 120 49.120 179,860 91,980 61,200 333.040 760,202 254,420 156,672 1,171.294 12.395 12,395 871 8680 466 3310 Repairs & Maintenance 53 370 871 8680 466 4001 Capital Budget 6,083,312 871 8680 466 4050 Capital/Emergency Repairs 50,000 6,186,682 Fund 871 - Housing Authority - Taos Palms 871 8690 466 4050 Capital/Emergency Repairs - Fund 871 - Housing Authority - Country Village 871 8691 466 3089 Payroll 871 8691 466 3092 Contract Services 871 8691 466 3093 Management Fee 871 8691 466 3223 Advertising/Promotion 871 8691 466 3310 Repairs & Maintenance 871 8691 466 3514 Utility Services 871 8691 466 3695 Miscellaneous Expense 871 8691 466 4050 Capital/Emergency Repairs Totals 14,000 121,913 relocation of staff 5,000 5,000 interior french doors @ community room 19,000 126,913 8,000 57,120 carpet, flooring & counter top resurfacing 8,000 57,120 (87,880) 91,980 correct original budget posting (30,780) 61,200 correct original budget posting 118,660 179,860 correct original budget posting - 333,040 10,000 10,000 unit renovation 10,000 10,000 (505,782) 254,420 correct original budget posting (97,748) 156,672 correct original budget posting 603,530 760,202 correct original budget posting - 1,171,294 6,000 18,395 carport concrete repair 6,000 18,395 10,000 63,370 carpet & flooring renovation (25,000) 6,058,312 Offset increase to 4050 25,000 75,000 electrical and communication upgrades 10,000 6,196,682 50,000 50,000 unit renovation, replace windows & fumigation 50,000 50,000 47,380 (22,380) 25,000 rehabilitation of units 70,080 (37,500) 32,580 rehabilitation of units 30,000 (17,000) 13,000 rehabilitation of units 840 (500) 340 rehabilitation of units 15,140 (13,000) 2,140 rehabilitation of units 54.360 (31.500) 22,860 rehabilitation of units 6,070 (4,000) 2,070 rehabilitation of units - 14,380 14,380 rehabilitation of units 223,870 (111,500) 112,370 8,084,314 30,000 8,114,314 1/17/2008 10 52 AM PALM DESERT HOUSING AUTHORITY MID -YEAR 2007-2008 BUDGET REVIEW REVISED APPROPRIATIONS OPERATING BUDGET FUND/ ACCOUNT DEPARTMENT DESCRIPTION Fund 871 - Housing Authority Rent 871 8610 363 2000 Rent -Laguna Palms 871 8680 363 2000 Rent -California Villas 871 8691 363 2000 Rent -Country Village 871 8692 363 2000 Rent -Palm Village 871 8694 363 2000 Rent -La Rocca Villas Resolution No. HA-35 Exhibit "B' ORIGINAL INCREASE/ REVISED APPROP (DECREASE) APPROP EXPLANATION 190,897 (95,449) 95,448 Reduce revenues due to renovations 634,320 (147,178) 487,142 Reduce revenues due to renovations 82,744 (19,683) 63,061 Reduce revenues due to renovations 121,680 (60,840) 60,840 Reduce revenues due to renovations 91,355 (45,678) 45,677 Reduce revenues due to renovations 1,120,996 (368,828) 752,168 Totals 1,120,996 (368,828) 752,168