HomeMy WebLinkAboutItem 1a: ARA Resolution 223: Budget for FY 2010-11P7
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June 15, 2010
TO: Chairman and Agency Board
FROM: Jason Kruckeberg, Deputy Executive Director 5L
Hue Quach, Director of Administrative Services
STAFF REPORT
Arcadia Redevelopment Agency
SUBJECT: RESOLUTION NO ARA -233 ADOPTING A BUDGET FOR FISCAL YEAR
2010 -2011 AND APPROPRIATING THE AMOUNTS SPECIFIED
THEREIN AS EXPENDITURES FROM THE FUNDS INDICATED.
Recommendation: Adopt
BACKGROUND
The Redevelopment Agency budget for fiscal years 2010 -2011 was distributed to the
Agency Board on May 11, 2010. On May 17, 2010 and June 1, 2010, 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 2010 -2011 fiscal year.
DISCUSSION
There were no recommendations made for revisions to the proposed Redevelopment
Agency operating budget at the study sessions. However, the City Council and Agency
Board discussed the potential of a $3.5 million loan from the City to the Agency for the
purposes of property acquisition. In addition, there were several questions raised
concerning a planned parking and land use study for the Downtown and the use of low
and moderate income housing funds for affordable housing projects. 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 recommending adoption of the fiscal year 2010 -2011
operating budget as presented.
ARA FY 2010 -11 Budget
June 15, 2010 Page 1
RECOMMENDATION
It is recommended that the Redevelopment Agency:
1. Adopt Resolution No. ARA -233, a Resolution of the Arcadia Redevelopment
Agency of the City of Arcadia, California, adopting a budget for the fiscal
year 2010 -2011 and appropriating the amounts specified therein as
expenditures from the funds indicated.
2. Authorize the Executive Director to execute a promissory note accepting a
loan of $3.5 million from the City of Arcadia, including an interest rate of
8% compounded annually, payable to the City of Arcadia on demand at any
time.
Approved By:
Donald Penman, Executive Director
Attachment A — Fiscal Year 2010 — 2011 Arcadia Redevelopment Agency Budget
Attachment B — ARA Memorandum related to production of low /moderate housing
Resolution ARA -233
ARA FY 2010 -11 Budget
June 15, 2010 Page 2
Beginning Fund Balance * 6,937,140 3,191,289 2,784,406
Estimated Revenue:
Tax Increment
Rental Income
Interest Earnings
Total Revenues
Estimated Funds Available
Attachment A
Redevelopment Agency
Proposed Expenditures:
Transfer to Debt Services fund 1,679,218 1,641,560 1,651,012
State ERAF take away 1,547,203 318,643 0
Interests on General Fund loan 0 280,000 0
Capital Projects 715,128 800,000 100,000
Equipment 0 2,730 0
Promissory Note 2,508,514 0 0
Operating Costs 980,588 1,133,950 1,041,500
Total Expenditures 7,430,651 4,176,883 2,792,512
Ending Fund Balance 3,191,289 2,784,406 3,809,594
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.
* Excludes $4,045,715 debt owed to the Housing Fund
09 -10 10 -11 11 -12
Estimates Budget Budget
3,484,800
100,000
100,000
3,684,800
3,520,000
100,000
150,000
3,770,000
10,621,940 6,961,289
3,555,200
100,000
162,500
3,817,700
6,602,106
ACCOUNT TITLE
DIVISION: 4901 REDEVELOPMENT ADMIN
SALARIES & WAGES
4010 REGULAR EMPLOYEES 157,781 180,750 180,750 190,040 194,270
4013 VACATION PAY OFF 3,973 0 0 0 0
4014 VACATION SELL BACK 1,197 1,000 858 0 0
4015 ALLOWANCES 1,687 1,680 1,680 1,680 1,680
4016 DEF COMP -CITY PAID 603 600 600 600 600
4021 LONGEVITY PAY 1,433 680 680 870 1,290
4032 TEMPORARY 0 14,500 14,500 14,500 14,500
4130 OVERTIME 0 0 7 0 0
4241 P.E.R.S 34,434 39,790 39,790 45,100 49,810
4242 .5% CITY CONTRIBUTION 578 600 600 640 660
4244 MEDICAL /DENTAL 15,120 22,200 22,200 22,210 22,210
INSURANCE
4245 LONG TERM DISABILITY 182 220 220 170 170
4246 DENTAL INSURANCE 1,194 0 0 0 0
4247 LIFE INSURANCE 459 520 520 530 540
4249 UNEMPLOYMENT 1,890 0 5,130 0 0
INSURANCE
4250 FICA /HOSPITAL INSURANCE 2,446 2,620 2,620 2,800 2,820
Total: SALARIES & WAGES 222,976 265,160 270,156 279,140 288,550
SUPPLIES
2008 -09 2009 -10 2009 -10 2010 -11 2011 -12
ACTUAL ADJUSTED PROJECTED PROPOSED PROPOSED
BUDGET
5110 OFFICE SUPPLIES 1,485 1,500 1,000 1,500 1,500
5115 PROGRAM EXPENSES 0 500 0 500 500
5125 PRINT SHOP 1,614 3,000 1,000 3,000 3,000
OPERATING EXPENSES
6140 LEGAL 29,528 40,000 47,000 40,000 40,000
6160 CONTRACT SERVICES 191,543 121,649 112,210 172,920 72,920
6210 TELEPHONE 810 900 900 650 650
6410 PUBLIC NOTICES 0 500 500 500 500
6505 GENERAL LIABILITY 17,668 13,750 13,780 12,620 14,350
6507 WORKERS' COMPENSATION 2,311 2,320 2,320 2,290 2,600
6730 OFFICE EQUIPMENT 55 400 202 400 400
6750 VEHICLE MAINTENANCE 696 1,560 1,560 0 0
6910 AUDIT 8,239 9,000 8,615 9,000 0
6930 MEMBERSHIP & 12,619 11,870 12,400 11,870 12,370
PUBLICATIONS
6940 OFFICIAL MEETINGS 4,559 6,600 3,600 8,000 6,600
6955 LA COUNTY SB 211 108,611 208,900 122,689 130,000 130,000
PAYMENTS
6995 GENERAL FUND CHARGES 230,166 239,060 239,060 239,060 239,060
Total: OPERATING EXPENSES 606,804 656,509 564,836 627,310 519,450
SPECIAL PROGRAMS
7214 CHAMBER OF COMMERCE 12,400 31,000 31,000 31,000 31,000
7803 NOTE INTEREST 261,514 0 3,447 0 0
Total: SPECIAL PROGRAMS 273,914 31,000 34,447 31,000 31,000
Total: REDEVELOPMENT ADMIN 1,106,793 957,669 871,439 942,450 844,000
Fund /Division: 7054901
OVERALL PERCENTAGE INCREASE /(DECREASE) FROM PRIOR YEAR (1.59) %
2
ACCOUNT TITLE
DIVISION: 4931 BUSINESS RET & MARKETING
MARKETING & SPECIAL EVENT
7911 MARKETING & SPECIAL 44,671 97,500 58,444 84,500 87,500
EVENT
7912 BUSINESS RETENTION 0 10,000 9,750 10,000 10,000
7913 ARCHITECTURAL SERVICES 0 5,000 0 5,000 5,000
7914 SIGN AND FACADE REHAB 61 65,000 45,000 75,000 85,000
7915 GENERAL PROPERTY 11,111 10,000 4,000 10,000 10,000
Total: GENERAL PROPERTY 55,843 187,500 117,194 184,500 197,500
TRANSFERS & RESERVES
2008 -09 2009 -10 2009 -10 2010 -11 2011 -12
ACTUAL ADJUSTED PROJECTED PROPOSED PROPOSED
BUDGET
Total: BUSINESS RET & MARKETIh 55,843 187,500 117,194 184,500 197,500
Fund /Division: 7054931
OVERALL PERCENTAGE INCREASE /(DECREASE) FROM PRIOR YEAR (1.60) %
3
ACCOUNT TITLE
DIVISION: 4970 MORLAN PLACE PROJECT
TRANSFERS & RESERVES
2008 -09 2009 -10 2009 -10 2010 -11 2011 -12
ACTUAL ADJUSTED PROJECTED PROPOSED PROPOSED
BUDGET
9612 PROJECT IMPROVEMENTS 253,224 0 0 0
9631 RELOCATE EXPENSE 162,120 21,377 46,800 7,000
Total: MORLAN PLACE PROJECT 415,343 21,377 46,800 7,000
Fund /Division: 7054970
OVERALL PERCENTAGE INCREASE /(DECREASE) FROM PRIOR YEAR (67.25)
4
0
0
0
Beginning Fund Balance * 5,159,284 5,465,303 6,304,395
Estimated Revenue:
Tax Increment Revenue
Interest Earnings
Total Revenues
Estimated Funds Available
Proposed Expenditures:
Purpose of Funds:
Redevelopment /Low and Moderate Housing Fund
Operating Costs 155,081 232,940 238,130
Projects 542,100 0 0
Total Expenditures 697,181 232,940 238,130
Ending Fund Balance 5,465,303 6,304,395 7,147,217
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.
09 -10 10 -11 11 -12
Estimates Budget Budget
1,003,200 1,072,032
883,200 892,032
120,000 180,000
6,162,484 6,537,335
5
900,952
180,000
1,080,952
7,385,347
ACCOUNT TITLE
DIVISION: 4901 HOUSING -ADMIN
SALARIES & WAGES
2008 -09 2009 -10 2009 -10 2010 -11 2011 -12
ACTUAL ADJUSTED PROJECTED PROPOSED PROPOSED
BUDGET
4010 REGULAR EMPLOYEES 58,078 75,070 75,070 79,910 82,680
4015 ALLOWANCES 844 840 840 840 840
4021 LONGEVITY PAY 0 0 0 50 200
4130 OVERTIME 0 0 7 0 0
4241 P.E.R.S 12,864 16,460 16,460 18,920 21,150
4242 .5% CITY CONTRIBUTION 339 350 350 380 390
4244 MEDICAL/DENTAL 6,035 9,590 9,590 9,600 9,600
INSURANCE
4245 LONG TERM DISABILITY 61 90 90 70 70
4246 DENTAL INSURANCE 463 0 0 0 0
4247 LIFE INSURANCE 195 230 230 240 250
4249 UNEMPLOYMENT 1,260 0 3,420 0 0
INSURANCE
4250 FICA/HOSPITAL INSURANCE 871 1,010 1,010 1,180 1,200
OPERATING EXPENSES
6140 LEGAL 1,176 30,000 10,000 30,000 30,000
6160 CONTRACT SERVICES 28,770 94,894 16,000 90,000 90,000
6940 OFFICIAL MEETINGS 0 1,660 1,660 1,750 1,750
TRANSFERS & RESERVES
9620 HOUSING PROJECT 0 0 531,519 0 0
Total: TRANSFERS & RESERVES 0 0 531,519 0 0
Total: HOUSING - ADM1N 110,955 230,194 666,247 232,940 238,130
Fund /Division: 7084901
OVERALL PERCENTAGE INCREASE /(DECREASE) FROM PRIOR YEAR 1.19 %
6
Estimated Revenue:
Transfer from Tax Increment
Interest Earnings
Total Revenues
Estimated Funds Available
Redevelopment Debt Service
* The fund balance represents Cash held by Fiscal Agent.
09 -10 10 -11 11 -12
Estimates Budget Budget
Beginning Fund Balance * 1,845,771 1,845,771 1,845,771
1,679,218
1,502
1,680,720
3,526,491
1,641,560 1,651,012
36,000 36,000
1,677,560 1,687,012
3,523,331 3,532,783
Proposed Expenditures:
Principal 745,000 780,000 830,000
Interest 935,720 897,560 857,012
Total Expenditures 1,680,720 1,677,560 1,687,012
Ending Fund Balance 1,845,771 1,845,771 1,845,771
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 2001B.
ACCOUNT TITLE
DIVISION: DEBT SVC BONDS 2001 A & B
SPECIAL PROGRAMS
7803 NOTE INTEREST 971,770
NOTE PRINCIPAL
2008 -09 2009 -10 2009 -10 2010 -11 2011 -12
ACTUAL ADJUSTED PROJECTED PROPOSED PROPOSED
BUDGET
8
935,720 935,720
897,560 857,012
7804 NOTE PRINCIPAL 710,000 745,000 745,000 780,000 830,000
TOTAL EMPLOYEE SERVICES: 1,681,770 1,680,720 1,680,720 1,677,560 1,687,012
Total: DEBT SVC BONDS 2001 A & 1,681,770 1,680,720 1,680,720 1,677,560 1,687,012
Fund /Division:
OVERALL PERCENTAGE INCREASE /(DECREASE) FROM PRIOR YEAR (0.19) %
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ATTACHMENT B
DATE: June 15, 2010
TO: Don Penman, City Manager /Executive Director
FROM: Jason Kruckeberg, Deputy Executive Director
MEMORANDUM
Arcadia Redevelopment Agency
SUBJECT: ARCADIA REDEVELOPMENT AGENCY PLANNING AND
ADMINISTRATIVE ACTIVITIES FOR FY 2010 -2011 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 2010 -2011 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 the works. The first is a 43 -unit senior
affordable rental project and the second is a 4 -unit very low income rental project. The
senior affordable project includes a complicated series of entitlements and funding
agreements. Agency staff is actively working with financial consultants, redevelopment
attorneys, and the applicant team to put an acceptable and viable package together for
this project. In addition, the 4 -unit project is currently in the Request for Proposal stage
and Agency staff will be actively reviewing and selecting a developer over the next
several months. Both of these projects promise to be very active in the coming fiscal
year. In addition, Agency staff is still actively involved in interfacing with tenants and the
Management Company on existing projects including ongoing issues related to
maintenance, tax issues, rents, and the like.
Finally, Agency staff is actively engaged in the production of the Draft General Plan for
Arcadia and, specifically, the Housing Element. The Housing Element includes the
identification of opportunity sites for affordable housing and a strategy on how to meet
the Regional Housing Needs Assessment. Out of this planning effort, the Agency
anticipates a palette of options to provide, improve, and preserve affordable housing
including purchase and rehab options, housing for workers at the Santa Anita
Racetrack, senior affordable housing options, affordable rentals, as well as new -built
housing alternatives. We anticipate as a result of these efforts to have significant
planning and administrative costs on an on -going basis as we focus on new affordable
housing opportunities using our 20% set -aside funds. The Draft General Plan is
scheduled to be in front of the City Council /Agency Board in the Fall of 2010.
RESOLUTION NO. ARA 233
and
A RESOLUTION OF THE ARCADIA REDEVELOPMENT AGENCY
ADOPTING A BUDGET FOR FISCAL YEAR 2010 -2011 AND
APPROPRIATING THE AMOUNTS SPECIFIED THEREIN AS
EXPENDITURES FROM THE FUNDS INDICATED
WHEREAS, on the 11 day of May, 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, 2010 - 2012 ", which includes, in part, a proposed budget for the Agency;
WHEREAS, said budget includes the budget for the ensuing fiscal year
2010 -11; 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, 2010- 2012 ", as 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 the fiscal year 2010 -2011 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. That the Agency Secretary shall certify to the adoption of this
Resolution.
Passed, approved and adopted this day of , 2010.
ATTEST:
Agency Secretary
APPROVED AS TO FORM:
Stephen P. Deitsch
Agency Attorney
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2
Chairman of the
Arcadia Redevelopment Agency
MEMORANDUM
Arcadia Redevelopment Agency
DATE: June 15, 2010
TO: Don Penman, City Manager /Executive Director
FROM: Jason Kruckeberg, Deputy Executive Director
SUBJECT: ARCADIA REDEVELOPMENT AGENCY PLANNING AND
ADMINISTRATIVE ACTIVITIES FOR FY 2010 -2011 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 2010 -2011 budget are necessary for the
production, improvement, and preservation of low and moderate income housing in the
City of Arcadia.
Given high and 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 the works. The first is a 43 -unit senior
affordable rental project and the second is a 4 -unit very low income rental project. The
senior affordable project includes a complicated series of entitlements and funding
agreements. Agency staff is actively working with financial consultants, redevelopment
attorneys, and the applicant team to put an acceptable and viable package together for
this project. In addition, the 4 -unit project is currently in the Request for Proposal stage
and Agency staff will be actively reviewing and selecting a developer over the next
several months. Both of these projects promise to be very active in the coming fiscal
year. In addition, Agency staff is still actively involved in interfacing with tenants and the
Management Company on existing projects including ongoing issues related to
maintenance, tax issues, rents, and the like.
Finally, Agency staff is actively engaged in the production of the Draft General Plan for
Arcadia and, specifically, the Housing Element. The Housing Element includes the
identification of opportunity sites for affordable housing and a strategy on how to meet
the Regional Housing Needs Assessment. Out of this planning effort, the Agency
anticipates a palette of options to provide, improve, and preserve affordable housing
including purchase and rehab options, housing for workers at the Santa Anita
Racetrack, senior affordable housing options, affordable rentals, as well as new -built
housing alternatives. We anticipate as a result of these efforts to have significant
planning and administrative costs on an on -going basis as we focus on new affordable
housing opportunities using our 20% set -aside funds. The Draft General Plan is
scheduled to be in front of the City Council /Agency Board in the Fall of 2010.