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Home My WebLink AboutRes No. 557 - AMND FY 08-09 Md Yr AdjstmntsPALM DESERT REDEVELOPMENT AGENCY REQUEST: SUBMITTED BY: DATE: CONTENTS: Recommendation: STAFF REPORT ADOPTION OF RESOLUTIONS OF THE REDEVELOPMENT AGENCY AMENDING THEIR FISCAL YEAR 2008-09 BUDGETS DAVE YRIGOYEN, DIRECTOR OF REDEVELOPMENT/HOUSING FEBRUARY 12, 2009 AGENCY RESOLUTION NO. 557 Waiver further reading and adopt: Resolution No. 557 , amending the Fiscal Year 2008-09 budget as a result of Mid -Year Adjustments Addendum. Executive Summary: The adoption of the resolution will adjust the budget for the Redevelopment Agency to reflect reductions to the 2008-09 financial plan. These adjustments are intended to align the budget with expected expenditures to year-end and remove capital projects in the budget that will not be constructed this fiscal year. These funds will be available in the Agency's fund balances. Discussion: Agency staff realizes that although the Agency budget is not supported by the General Fund, the current economic condition suggests that the Agency take a prudent approach to adjusting budgets where appropriate. The Redevelopment Agency's budget (including the housing fund and the Housing Authority) is based on planned projects, continuing projects and expected administrative expenditures. In addition to the original budget, the Agency Board approved additional appropriations during the year for property acquisitions and contract settlement, as well as mid -year adjustments that included increases to pass -through payments, ERAF, and debt service transfers. The changes to the budget, including those proposed in this addendum are summarized below: Amount Description Original Budget: 109,462,230 2008-2009 Financial Plan Brought fonw�jnd frtu►t 2t?Q7-p8 Financial Plan for Carryovers: 75,790,022 continuing project Mid -year Adjustments: 6,392,367 Adjustments for pass-throughs, ERAF, and debt service Adtlwcl t$, 1....'.. during the: year for property Additional App ria awls.. 6,8171139 aCquisitidns Arid +c tlerriertt Recommended Budget Reductions to total budget for admin, capital projects, Adjustments: (16,525,873) and fund reprogramming. Remaining Appropriations: 180,935,877 Revised Budget for 2008=2009 G \rda\Veronica Tapia\Word Files\Staff Reports\2008-09 Mid Year Budget Adjustment Addendum rev.doc Staff Report Adoption of Resolutions of the Redevelopment Agency amending the Fiscal Year 2008-09 Budget Page 2 of 3 February 12 2009 The following list details the reductions to all administrative, capital and program accounts. RDA Administration PA #1 PA #2 PA #3 PA#4 Debt Service Housing Fund Legal $ (20,000) $ (20,000) $ (2,000) Personnel Salaries/Benefits $ (68,526) Office/Graphic Supplies/Printing $ (1,000) $ (3,000) Temp Help $ (4,000) Conference/Seminars $ (7,298) Legal Advertising $ (5,000) $ (2,500) $ (4,500) $ (2,500) R/M Office Equipment $ (500) Postage $ (1,000) Office Equipment $ 10,000 Professional Service $ (28,000) $ (15,000) $ (15,000) Business Retention Services $ 28,000 Conference/Seminars $ (5,000) $ (2,000) Local Meetings $ (5,000) $ (2,000) $ (500) $ (1,000) Subscriptions $ (500) Postage $ (500) Phones/Mileage Reimb $ (1,100) Property Maintenance $ (4,000) Total Administration $ (108,324) $ (24,500) $ (21,500) $ (3,000) $ (15,000) $ (11,100) Capital Projects Neighborhood Undergrounding President's Plaza Historical Society Palm Village Construction Property Acquisition Falcon Crest/La Rocca Construction Total Project Revisions Programs Acquisition Rehab Resale Home Improvement Program Self Help Housing Home Buyer Assistance Total Program Revisions: Total Revisions $ (6,470,000) $ (1,200,000) $ (100,000) $ (7,770,000) $ $ $ $ (7,878,324) $ (24,500) $ (21,500) $ (3,000) $ (15,000) Total All Revisions: $ (118,288) $ (3,534,852) $ (3,736,811) $ (7,389,951) $ (50,000) $ (483,498) $ (500,000) $ (149,000) $ (1,182,498) $ (8,583,549) $ (16,525,873) The administrative accounts were re-evaluated based on current actual expenditures expected by the end of the fiscal year. The increase to office equipment is to cover the costs of the Agency's portion of the new phone system. The increase in Business Retention Services is to reprogram economic development funding. Reductions are suggested to Neighborhood Undergrounding, President's Plaza, and the Historical Society capital budgets, as the projects are currently on hold. Funds will be available should these projects be reprogrammed next year. The proposed reductions to Palm Village and Falcon Crest/La Rocca Villas are due to the projects being substantially complete. The reductions to programs are based on expected expenditures by June 30tr, G:IRDAIVERONICA TAPIAIWORD FILESISTAFF REPORTS0008-09 MID YEAR BUDGET ADJUSTMENT ADDENDUM REV.DOC Staff Report Adoption of Resolutions of the Redevelopment Agency amending the Fiscal Year 2008-09 Budget Page 3 of 3 February 12 2009 In total, the combined budget amendments will result in an overall reduction of $183,424 in administration, $15,159,951 in Capital Projects, and $1,182,498 in programs. Overall the reduction is approximately 8.4% of the Agency's budget. Staff recommends approval of the attached resolution and exhibit for the Redevelopment Agency to amend the 2008-09 financial plan to reflect the identified revisions. Submitted by: c: gave Yrigo Director of development/Housing Approval: ti McCarthy, Interim Ex utive Director P I S. Gibson, Director of Finance P-p4 . "_ dBY RDA '/-C ( 6. I'G� Ia VERIFIED BY t�UK Original on file with City Clerk's Office G:IRDAIVERONICA TAPIAIWORD FILESISTAFF REPORTSV008-09 MID YEAR BUDGET ADJUSTMENT ADDENDUM REV.DOC RESOLUTION NO. 557 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 ADDENDUM 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 "Remaining Appropriations" in the table entitled "Palm Desert Redevelopment Agency, Mid -Year 2008-09 Budget Addendum, 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. 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: ATTEST: Rachelle D. Klassen, Secretary Robert A. Spiegel, Chairman G:\rda\Veronica Tapia\Word Files\Staff Reports\2008-09 RDA Midyear Budget Resolution.doc Resolution No. 557 Exhibit "A" PALM DESERT REDEVELOPMENT AGENCY MID -YEAR 2008-2009 BUDGET ADDENDUM REVISED APPROPRIATIONS OPERATING BUDGET CHANGE FUND/ ACCOUNT ORIGINAL INCREASE/ REMAINING DEPARTMENT DESCRIPTION APPROP (DECREASE) APPROP EXPLANATION Fund 860 - Project Area #1/Capital Improvements 850 4121 466 3016 Legal -Other 25,000 (20,000) 5,000 No litigation at this time. 850 4195 466 XXXX Personnel Salaries/Benefits 1,919,518 (68,526) 1,850,992 Postpone hiring of Sr. Office Assistant 850 4195 466 2185 Graphic Supplies 2,500 (1,000) 1,500 850 4195 466 3035 Temp Help 5,000 (4,000) 1,000 850 4195 466 3120 Conference/Seminars 25,000 (7,298) 17,702 850 4195 466 3210 Legal Advertising 10,000 (5,000) 5,000 850 4195 466 3330 R/M Office Equipment 1,000 (500) 500 850 4195 466 3660 Postage 3,500 (1,000) 2,500 850 4195 466 4040 Office Equipment 10,101 10,000 20,101 Reimburse City for New Phone System 850 4256 464 4001 Neighborhood Undergrounding 6,470,000 (6,470,000) - Project on hold. 850 4430 422 3090 Professional Service 64,000 (28,000) 36,000 Reprogram funding. 850 4430 422 3917 Business Retention Services - 28,000 28,000 Business Retention/Customer Service Programs 850 4430 422 3120 Conference/Seminars 9,500 (5,000) 4,500 850 4430 422 3125 Local Meetings 10,000 (5,000) 5,000 850 4430 422 3620 Subscriptions 1,150 (500) 650 850 4430 422 3660 Postage 1,000 (500) 500 850 4436 422 4001 President's Plaza 1,200,000 (1,200,000) - Project on hold. 850 4800 464 3894 Historical Society 100,000 (100,000) - Project on hold. 9,857,269 (7,878,324) 1,978,945 Fund 851 - Project Area #1/Capital Improvements 851 4121 466 3015 Legal Service 50,000 (20,000) 30,000 851 4195 466 3125 Local Meetings 5,000 (2,000) 3,000 851 4195 466 3210 Legal Advertising 5,000 (2,500) 2,500 60,000 (24,500) 35,500 Fund 853 - Project Area #1/Capital Improvements 853 4121 466 3015 Legal Service 5,000 (2,000) 3,000 853 4195 466 3092 Professional Other Service 30,000 (15,000) 15,000 853 4195 466 3210 Legal Advertisiting 5,000 (4,500) 500 40,000 (21,500) 18,500 Fund 854 - Project Area #1/Capital Improvements 854 4195 466 3125 Local Meetings 1,000 (500) 500 854 4195 466 3210 Legal Advertising 5,000 (2,500) 2,500 6,000 (3,000) 3,000 Fund 860 - Project Area #1/Debt Service 860 4195 466 3090 Professional Services 30,000 (5,000) 25,000 30,000 (5,000) 25,000 Fund 861 - Project Area #2/Debt Service 861 4195 466 3090 Professional Services 25,000 (10,000) 15,000 25,000 (10,000) 15,000 Fund 870 - Low & Mod Set-Aside/Capital Improvements 870 4195 466 2110 Office Supplies 2,000 (1,000) 1,000 870 4195 466 3115 Mileage 1,000 (500) 500 870 4195 466 3120 Conference/Seminars 5,000 (2,000) 3,000 870 4195 466 3125 Local Meetings 2,000 (1,000) 1,000 870 4195 466 3370 Property Maintenance 6,500 (4,000) 2,500 870 4195 466 3610 Printing 3,500 (2,000) 1,500 870 4195 466 3650 Phones 1,200 (600) 600 870 4349 433 4001 Palm Village Construction 250,032 (118,288) 131,744 Reduced to offset trash enclosure costs. 870 4474 464 4001 Self Help Housing 500,000 (500,000) - 870 4492 464 4001 Acquisition/Rehab/Resale 280,500 (50,000) 230,500 870 4493 464 4001 Home Improvement Program 1,345,105 (483,498) 861,607 870 4495 464 4001 Property Acquisition 6,782,852 (3,534,852) 3,248,000 Reduction to 08/09 budget, exp expected in 09/10. 870 4698 464 4001 Falcon Crest/La Rocca Const 3,748,079 (3,736,811) 11,268 Project complete. 870 4699 464 4001 Home Buyer Assistance 500,000 (149,000) 351,000 13,427,768 (8,583,549) 4,844,219