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Home My WebLink AboutItem 1a: ARA-245 Adopting Redevelopment Agency Budget for FY 2011-2012 IP!' PM lid ill oil STAFF REPORT Arcadia Redevelopment Agency DATE: June 7, 2011 TO: Chairman and Agency Board FROM: Jason Kruckeberg, Assistant City Manager /Development Services Director t,(--- Hue Quach, Director of Administrative Services �f Prepared By: Aaron Lobliner, Redevelopment Intefr( /4Z SUBJECT: RESOLUTION NO ARA -245 ADOPTING A BUDGET FOR FISCAL YEAR 2011 -2012 AND APPROPRIATING THE AMOUNTS SPECIFIED THEREIN AS EXPENDITURES FROM THE FUNDS INDICATED. Recommendation: Adopt BACKGROUND The Redevelopment Agency budget for fiscal years 2011 -2012 was distributed to the Agency Board on April 27, 2011. On May 2, 2011 and May 17, 2011, study sessions were held to discuss the budget, respond to questions, and receive input. The recommended action is necessary to implement the budget for the Redevelopment Agency for the 2011 -2012 fiscal year. DISCUSSION There were no recommended revisions to the proposed Redevelopment Agency operating budget during the study sessions. In the 2011 -12 fiscal year the Agency will continue its efforts started during this fiscal year to conduct a parking study for the Downtown. In addition, UrbanPlace Consulting Group will continue its efforts to advise and assess the needs of the Downtown Business Group. The Agency is in the process of finalizing a Disposition and Development Agreement with Rusnak Arcadia Mercedes Benz for an expansion of the dealership. The Agency also committed $5 million for capital improvement projects inside of the Redevelopment Project Area. The Agency currently has two affordable housing projects in various stages. The first is the 43 -unit Campus Commons senior affordable rental project which celebrated its groundbreaking in April 2011 and is under construction. The second is a 9 -unit low income family rental project at 15 & 19 Lucile Street. Attachment "A" is a summary that reflects the proposed budget. Staff has also prepared a memorandum detailing the planned administrative activities for the production, improvement, and preservation of low and moderate income housing as is required by California Community Redevelopment Law (Section 33334.4(d)). This memorandum is included as Attachment "B ". Staff is ARA FY 2011 -12 Budget June 7, 2011 Page 1 recommending adoption of the fiscal year 2011 -2012 operating budget for Redevelopment as presented. RECOMMENDATION It is recommended that the Redevelopment Agency: 1. Adopt Resolution No. ARA -245, a Resolution of the Arcadia Redevelopment Agency of the City of Arcadia, California, adopting a budget for the fiscal year 2011 -2012 and appropriating the amounts specified therein as expenditures from the funds indicated. Approved By: -c'7 Donald Penman, Executive Director Attachment A — Fiscal Year 2011 — 2012 Arcadia Redevelopment Agency Budget Attachment B — ARA Memorandum related to production of low /moderate housing Resolution ARA -245 ARA FY 2011 -12 Budget June7,2011 Page2 Attachment A Redevelopment Agency 10 -11 11 -12 12 -13 Estimates Budget Budget Beginning Fund Balance * 3,352,515 2,163,439 1,892,718 Estimated Revenue: Bond issuance 9,662,940 0 0 Tax Increment 3,520,000 3,590,400 3,662,208 Rental Income 100,000 100,000 100,000 Interest Earnings 150,000 30,000 40,000 Total Revenues 13,432,940 3,720,400 3,802,208 Estimated Funds Available 16,785,455 5,883,839 5,694,926 Proposed Expenditures: Transfer to Debt Services fund 520,000 2,635,971 2,628,926 State ERAF take away 318,643 0 0 Interests on General Fund loan 280,000 0 0 Property Purchase 3,816,100 0 0 Capital Projects 276,250 200,000 50,000 Payoff Deferred loan to Housing fund 4,045,715 0 0 Transfer to General Fund for Public 4,049,000 0 0 Improvements Operating Costs 1,316,308 1,155,150 1,071,377 Total Expenditures 14,622,016 3,991,121 3,750,303 Ending Fund Balance 2,163,439 1,892,718 1,944,623 Purpose of Funds: Redevelopment funds are used to eliminate blight, upgrade the physical condition and increase the tax base within the City and Redevelopment Project Area. 217 ACCOUNT TITLE 2009 -10 2010 -11 2010 -11 2011 -12 2012 -13 ACTUAL ADJUSTED PROJECTED PROPOSED PROPOSED BUDGET DIVISION: 4901 REDEVELOPMENT ADMIN SALARIES & WAGES 4010 REGULAR EMPLOYEES 186,262 190,040 197,520 194,310 195,270 4014 VACATION SELL BACK 1,398 0 1,750 420 420 4015 ALLOWANCES 1,687 1,680 1,690 1,680 1,680 4016 DEF COMP -CITY PAID 603 600 600 600 600 4017 TAXABLE LIFE /AUTO 0 0 615 0 0 4021 LONGEVITY PAY 678 870 780 1,280 1,330 4032 TEMPORARY 11,217 14,500 11,500 14,500 14,500 4130 OVERTIME 7 0 0 0 0 4241 P.E.R.S 39,675 45,100 45,510 54,700 57,990 4242 .5% CITY CONTRIBUTION 607 640 640 660 660 4244 MEDICAL /DENTAL 19,615 22,210 23,280 22,710 22,710 INSURANCE 4245 LONG TERM DISABILITY 170 170 160 160 160 4246 DENTAL INSURANCE 1,649 0 0 0 0 4247 LIFE INSURANCE 505 530 550 560 560 4249 UNEMPLOYMENT 5,130 0 0 0 0 INSURANCE 4250 FICA/HOSPITAL INSURANCE 3,001 2,800 3,160 2,840 2,840 Total: SALARIES & WAGES 272,205 279,140 287,755 294,420 298,720 SUPPLIES 5110 OFFICE SUPPLIES 414 1,500 1,500 1,500 1,500 5115 PROGRAM EXPENSES 61 500 500 500 500 5125 PRINT SHOP 1,714 3,000 2,000 2,000 2,000 Total: SUPPLIES 2,189 5,000 4,000 4,000 4,000 OPERATING EXPENSES 6140 LEGAL 38,308 40,000 40,000 40,000 40,000 6160 CONTRACT SERVICES 106,057 175,073 175,073 196,920 76,920 6210 TELEPHONE 833 650 740 800 800 6410 PUBLIC NOTICES 403 500 500 500 500 6505 GENERAL LIABILITY 13,750 12,620 12,620 14,700 14,730 6507 WORKERS' COMPENSATION 2,320 2,290 2,290 2,580 2,580 6730 OFFICE EQUIPMENT 406 400 400 400 400 6750 VEHICLE MAINTENANCE 693 0 0 740 760 6910 AUDIT 8,313 9,000 9,000 7,000 7,500 6930 MEMBERSHIP & 12,471 11,870 11,870 12,680 13,777 PUBLICATIONS 6940 OFFICIAL MEETINGS 5,817 8,000 8,000 5,510 7,790 6955 LA COUNTY SB 211 163,238 130,000 130,000 130,000 130,000 PAYMENTS 6995 GENERAL FUND CHARGES 239,060 239,060 239,060 247,400 247,400 Total: OPERATING EXPENSES 591,668 629,463 629,553 659,230 543,157 SPECIAL PROGRAMS 7214 CHAMBER OF COMMERCE 31,000 31,000 31,000 31,000 31,000 7802 INTEREST 0 280,000 280,000 0 0 7803 NOTE INTEREST 3,447 0 0 0 0 Total: SPECIAL PROGRAMS 34,447 311,000 311,000 31,000 31,000 221 2009 -10 2010 -11 2010 -11 2011 -12 2012 -13 ACCOUNT TITLE ACTUAL ADJUSTED PROJECTED PROPOSED PROPOSED BUDGET Total: REDEVELOPMENT ADMIN 900,510 1,224,603 1,232,308 988,650 876,877 Fund /Division: 7054901 OVERALL PERCENTAGE INCREASE /(DECREASE) FROM PRIOR YEAR (19.27) % 222 ACCOUNT TITLE 2009 -10 2010 -11 2010 -11 2011 -12 2012 -13 ACTUAL ADJUSTED PROJECTED PROPOSED PROPOSED BUDGET DIVISION: 4931 BUSINESS RET & MARKETING MARKETING & SPECIAL EVENT 7911 MARKETING & SPECIAL 56,283 88,110 48,750 61,500 84,500 EVENT 7912 BUSINESS RETENTION 9,750 10,000 0 5,000 10,000 7913 ARCHITECTURAL SERVICES 2,300 5,000 0 5,000 5,000 7914 SIGN AND FACADE REHAB 37,495 75,000 35,000 75,000 75,000 7915 GENERAL PROPERTY 6,756 10,000 250 20,000 20,000 Total: GENERAL PROPERTY 112,584 188,110 84,000 166,500 194,500 TOTAL EMPLOYEE SERVICES: 112,584 188,110 84,000 166,500 194,500 Total: BUSINESS RET & MARKETIN 112,584 188,110 84,000 166,500 194,500 Fund /Division: 7054931 OVERALL PERCENTAGE INCREASE /(DECREASE) FROM PRIOR YEAR (11.49) % 223 Redevelopment/Low and Moderate Housing Fund 10 -11 11 -12 12 -13 Estimates Budget Budget Beginning Fund Balance " 5,528,736 6,213,061 7,103,401 Estimated Revenue: Payment from Redevelopment fund 4,045,715 0 0 Tax Increment Revenue 880,000 897,600 915,552 Interest Earnings 120,000 180,000 180,000 Total Revenues 5,045,715 1,077,600 1,095,552 Estimated Funds Available 10,574,451 7,290,661 8,198,953 Proposed Expenditures: Operating Costs 167,390 187,260 212,000 Projects 4,194,000 0 0 Total Expenditures 4,361,390 187,260 212,000 Ending Fund Balance 6,213,061 7,103,401 7,986,953 Purpose of Funds: Redevelopment Low Moderate Income Housing funds are used by the Agency to increase the supply of affordable housing via new construction, substantial rehabilitation, rent subsidies, and other programs * Excludes $4,045,715 debt owed by the Tax Increment Fund. 224 ACCOUNT TITLE 2009 -10 2010 -11 2010 -11 2011 -12 2012 -13 ACTUAL ADJUSTED PROJECTED PROPOSED PROPOSED BUDGET DIVISION: 4901 HOUSING -ADMIN SALARIES & WAGES 4010 REGULAR EMPLOYEES 75,976 79,910 80,940 82,710 83,450 4015 ALLOWANCES 844 840 840 840 840 4021 LONGEVITY PAY 0 50 0 200 200 4130 OVERTIME 7 0 0 0 0 4241 P.E.R.S 16,323 18,920 18,840 23,190 24,670 4242 .5% CITY CONTRIBUTION 354 380 380 380 390 4244 MEDICAUDENTAL 8,348 9,600 10,100 9,830 9,830 INSURANCE 4245 LONG TERM DISABILITY 70 70 70 70 70 4246 DENTAL INSURANCE 733 0 0 0 0 4247 LIFE INSURANCE 230 240 250 250 260 4249 UNEMPLOYMENT 3,420 0 0 0 0 INSURANCE 4250 FICA/HOSPITAL INSURANCE 1,157 1,180 1,220 1,200 1,210 Total: SALARIES & WAGES 107,462 111,190 112,640 118,670 120,920 OPERATING EXPENSES 6140 LEGAL 10,492 55,000 43,000 30,000 30,000 6160 CONTRACT SERVICES 15,029 65,000 10,000 37,500 60,000 6940 OFFICIAL MEETINGS 0 1,750 1,750 1,090 1,090 Total: OPERATING EXPENSES 25,521 121,750 54,750 68,590 91,090 Total: HOUSING -ADMIN 132,983 232,940 167,390 187,260 212,010 Fund /DivIsion: 7084901 OVERALL PERCENTAGE INCREASE /(DECREASE) FROM PRIOR YEAR (19.61) % 225 Redevelopment Debt Service 10 -11 11 -12 12 -13 Estimates Budget Budget Beginning Fund Balance * 1,840,279 2,941,363 2,912,123 Estimated Revenue: Reserve fund from 2010 TAX issuance 1,983,000 0 0 Transfer from Tax Increment 520,000 2,635,971 2,628,926 Interest Earnings 20,000 36,000 36,000 Total Revenues 2,523,000 2,671,971 2,664,926 Estimated Funds Available 4,363,279 5,613,334 5,577,049 Proposed Expenditures: Principal 515,000 1,260,000 1,265, 000 Interest 906,916 1,441, 211 1,399,926 Total Expenditures 1,421,916 2,701,211 2,664,926 Ending Fund Balance 2,941,363 2,912,123 2,912,123 Purpose of Funds : The Redevelopment Debt Service Fund is used to facilitate the payment of principals and interests on Redevelopment Debt Service issues Series 2001A & Series 2010. * The fund balance represents Cash held by Fiscal Agent. 226 Attachment B PP PI RI MEMORANDUM Arcadia Redevelopment Agency Date: June 7, 2011 To: Don Penman, City Manager /Executive Director From: Jason Kruckeberg, Assistant City Manager /Deputy Executive Director Subject: ARCADIA REDEVELOPMENT AGENCY PLANNING AND ADMINISTRATIVE ACTIVITIES FOR FY 2011 -2012 RELATED TO LOW AND MODERATE INCOME HOUSING As required by Section 33334.4(d) of California Community Redevelopment Law, the Arcadia Redevelopment Agency (Agency) has found that the planning and administrative expenses proposed in the 2011 -2012 budget are necessary for the production, improvement, and preservation of low and moderate income housing in the City of Arcadia. Given high land values in the City of Arcadia, and the difficult housing market that has emerged in the past several calendar years, staff has found that working on affordable housing projects and the search for viable sites for affordable housing takes more time than other redevelopment activities. This is primarily due to the specific regulations for such projects, the current credit crunch and financing freeze, and the complexity of financing and entitling these projects. The Agency currently has two projects in various stages of development for FY 2011 -2012. The first is the 43 -unit Campus Commons senior affordable rental project which celebrated its groundbreaking in April 2011 and is under construction. The second is a 9 -unit low income family rental project on land owned by the Agency at 15 & 19 Lucile Street. The developer for this project is Gangi Development. The Lucile Street project has recently secured its entitlements, and staff is working on a D.D.A. with Gangi Development with the expectation that it will break ground before the end of 2011. Both of these projects appear to have high demand and will be very active in the coming fiscal year. When completed, these affordable housing units will help the City towards addressing its RHNA numbers, and will help the Agency meet its obligation to increase the supply of affordable housing within the City. RESOLUTION NO. ARA -245 A RESOLUTION OF THE ARCADIA REDEVELOPMENT AGENCY ADOPTING A BUDGET FOR FISCAL YEAR 2011 -2012 AND APPROPRIATING THE AMOUNTS SPECIFIED THEREIN AS EXPENDITURES FROM THE FUNDS INDICATED WHEREAS, on the 27 day of April, 2010, the Executive Director of the Arcadia Redevelopment Agency submitted to the Arcadia Redevelopment Agency ( "Agency ") a proposed budget entitled, "City of Arcadia Preliminary Operating Budget, 2011- 2013 ", which includes, in part, a proposed budget for the Agency; and WHEREAS, said budget includes the budget for the ensuing fiscal year 2011 -12; and WHEREAS, the Agency has considered said budget; and WHEREAS, said budget, together with a record of any adjustments, is on file in the office of the Secretary of the Agency; and WHEREAS, the Agency has determined that the planning and administrative expenses proposed in the budget are necessary for the production, improvement, and preservation of low and moderate income housing in the City of Arcadia as required by Section 33334.4(d) of California Community Redevelopment Law and as detailed in the attached memorandum. NOW, THEREFORE, THE ARCADIA REDEVELOPMENT AGENCY DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. That certain "City of Arcadia Budget, 2011 - 2013 ", is on file in the office of the Secretary of the Agency, together with any approved amendments thereto, is hereby adopted, in pertinent part, as the official budget of the Arcadia Redevelopment Agency for Fiscal Year 2011 -2012 and the amounts specified therein pertaining to the Agency as expenditures from the funds indicated are hereby appropriated for the purposes specified therein. SECTION 2. The Secretary shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2011. Chairman of the Arcadia Redevelopment Agency ATTEST: Secretary APPROVED AS TO FORM: • C6IftleA-. Stephen P. Deitsch Agency Attorney 2