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Redevelopment Agency Agendas are
Available on the City's Web Page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta, California 92253
SPECIAL Meeting
June 20, 2005 — 4:00 PM
Beginning Resolution No. RA 2005-007
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Perkins, Sniff, and Chairman Osborne
PUBLIC COMMENT
At this time, members of the public may address the Redevelopment Agency on any
matter not listed on the agenda. Please complete a "request to speak" form and limit your
comments to three minutes. Please watch the timing device on the podium.
For all Agency Business Session matters or Public Hearings on the agenda, a completed
"request to speak" form should be filed with the City Clerk prior to the Agency beginning
consideration of that item.
BUSINESS SESSION
1. CONSIDERATION OF FISCAL YEAR 2005-2006 BUDGET.
CHAIR AND BOARD MEMBERS' ITEMS — NONE
Redevelopment Agency Agenda 1 June 20, 2005
Special Meeting
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held on June
21, 2005 commencing with closed session at 2:00 p.m. and open session at 3:00 p.m. in
the City Council Chambers, 78-495 Calle Tampico, La Quinta, CA 92253.
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Quinta, do hereby declare that the foregoing
agenda for the La Quinta Redevelopment Agency meeting of June 20, 2005, was posted
on the outside entry to the Council Chamber at 78-495 Calle Tampico and on the bulletin
boards at 51-321 Avenida Bermudas and 78-630 Highway 1 1 1, on Friday, June 10, 2005.
DATED: June 10, 2005
'! , -s -
JUNE S. GREEK, CIVIC, City Clerk
City of La Quinta, California
Redevelopment Agency Agenda 2 June 20, 2005
Special Meeting
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COUNCIL/RDA MEETING DATE: June 20, 2005 AGENDA CATEGORY:
BUSINESS SESSION:
ITEM TITLE: Consideration of Fiscal Year
2005/2006 Preliminary Budget CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Adopt the Fiscal Year 2005/2006 Preliminary Budget and direct staff to prepare a
Fiscal Year 2005/2006 Final Budget for the July 19, 2005 La Quinta Redevelopment
Agency Meeting.
FISCAL IMPLICATIONS:
All Preliminary Fiscal Year 2005/2006 revenues, operational appropriations and debt
service funding are included in this Preliminary Budget. The Fiscal Year 2005/2006
budget totals $115,533,525 in appropriations of which $38,371,290 is budgeted
from PA 1 and $77,162,235 is budgeted from PA 2, and $59,072,356 in estimated
revenues of which $38,405,302 is budgeted from PA 1 and $20,667,054 from PA 2.
CHARTER CITY IM PUCATIONS:
None.
BACKGROUND AND OVERVIEW:
Introduction
The purpose of the La Quinta Redevelopment Agency budget is threefold: 1) account
for the debt service payments on outstanding debt the Agency has incurred and the
tax increment that is collected, 2) account for capital projects that the Agency will
construct from the funds obtained from the debt issues and advances from the General
Fund, and 3) account for low and moderate housing payments and projects and the tax
increment that is collected.
Since the La Quinta Redevelopment Agency has two project areas (PA 1 & PA 2), a
separate set of funds has been established to account for each of the aforementioned
activities.
Debt Service
For Fiscal Year 2005/2006, the debt service budget for PA 1 is $31,501,832 and
$15,741,915 for PA 2 as reflected on Page C-1 of the FY 2005/2006 Budget.
In PA 1, the debt service budget increased by $3.5 million from $27.9 million in FY
04/05. Offsetting a $1.1 million increase in pass through payments, due to increased
tax increment receipts, was a $1.25 million reduction in the 1995 Housing Bond issue
debt service payment. The 1995 Housing Bonds were retired in June 2004 as part of
the $90 million 2004 Local Agency Revenue Bonds. To fund the debt service payment
of the 2004 Local Agency Revenue Bonds, the PA 1 debt service fund will transfer
$3.465 million to the La Quinta Financing Authority Debt Service Fund.
In PA 2, the debt service budget increased $3.1 million more than in FY 04/05 due to
a $1.2 increase in pass through payments to taxing entities, a $300,000 reduction in
the 1995 Housing Bond issue debt service payment, and a $500,000 increase in
interest payments on City advances. To fund the debt service payment of the 2004
Local Agency Revenue Bonds, the PA 2 debt service fund will transfer $1.7 million to
the La Quinta Financing Authority Debt Service Fund
Capital Projects
For Fiscal Year 2005/2006, the capital project budget for PA 1 is $741,777 and
$221,965 for PA 2 as reflected on C-1 of the FY 2005/2006 budget. The majority of
these funds are to reimburse the General Fund for services provided to the Agency.
As reflected in this year's budget, no new sources of revenue for PA 1 and 2 are
anticipated from bond proceeds or City advances.
PA-1 carry-over capital projects are estimated to be $25,639,094 for PA 1 and
$485,033 for PA 2 as reflected on C-3 for FY 2004/2005.
Last year in June 2004, a new Capital Projects Fund was created entitled the 2004
Low/Moderate Housing Bond Fund. This fund accounts for the bond proceeds from
the $90 million 2004 Local Agency Revenue Bond issue. After paying bond issue costs
and repaying the 1995 Housing Bond, $66.3 million was deposited into this fund for
low & moderate projects in the City.
The FY 2005/2006 budget appropriates $54,021,866 of these funds toward
identifiable low & moderate housing projects.
Low and Moderate Housing
For Fiscal Year 2005/2006, the low and moderate housing budget for PA 1 is
$6,127,681 and $7,176,489 for PA 2 as reflected on Page C-1 of the FY
2005/2006 Budget
The source of funding for these funds come from 20% of the tax increment on
property taxes generated in each project area. The funds are used directly for low
and moderate income housing or to pay debt service on bonds that are raised to
generate low and moderate income housing.
In PA 1, $3.9 million and $1.7 million in PA 2 will be used to pay debt service
payments.
In PA 1, an additional $2.2 million will be used to fund housing development
projects, contract services and General Fund reimbursements.
In PA 2, an additional $5.5 million will be used to fund housing development
projects, contract services and General Fund reimbursements.
Revenues
The total revenue for the Redevelopment Agency for FY 2005/2006 is estimated to
be $53,419,800 of which tax increment totals over $50.6 million as detailed on
the following chart:
Project Area 1
Revenue TVDe
Debt
Service
Capital
Projects
Low/Moderate
Income
2004
Housing
Fund
Total
Interest
Total
7
-1
34,459,500
Project Area 2
Revenue Type
Tax Increment
Debt
Service
Capital
Projects
Low/Moderate
Income
Interest-3,445
LQ Rental Program
==I
Home Sale Proceed
Total
13,783,600
37,100
3,721,200
2004
Housing
1,418,400 1 18,960,300
Debt
Revenue Type Service
IncrementTax
Project Areas 1 & 2
2004
Capital Low/Moderate Housing
Projects Income Bond Total
10,121300 _
Interest
93,100
Home I
Total 1
40,578,300
5499600
10,873,500
1,418,400
53,419,800
FINDINGS AND ALTERNATIVES:
Staff is requesting:
1) Review and comment on the Fiscal Year 2005/2006 La Quinta Redevelopment
Agency Preliminary Budget and provide direction regarding any proposed
changes to the document; and
2) Approval of the Fiscal Year 2005/2006 Fiscal Year La Quinta Redevelopment
Agency Preliminary Budget as amended at the June 20, 2005, La Quinta
Redevelopment Agency Meeting. (Any approved changes by the Agency to be
incorporated into the Final Budget for adoption on July 19, 2005.)
Respectfully submitted,
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director