2006 06 21 RDA
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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
WEDNESDAY, JUNE 21, 6:00 P.M.
Beginning Resolution No. RA 2006-TBA
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Kirk, Sniff, and Chairman Osborne
PUBLIC COMMENT
CONFIRMATION OF AGENDA
APPROVAL OF MINUTES - NONE
CONSENT CALENDAR - NONE
BUSINESS SESSION
1. CONSIDERATION OF FISCAL YEAR 2006/2007 PRELIMINARY BUDGET.
ACTION: PROVIDE DIRECTION TO STAFF
Redevelopment Agency Special Meeting Agenda 1
June 21, 2006
STUDY SESSION - NONE
CHAIR AND BOARD MEMBERS' ITEMS - NONE
PUBLIC HEARINGS - NONE
ADJOURNMENT
Adjourn to an adjourned regular meeting of the Redevelopment Agency to be held on July
5, 2006, commencing with closed session at 2:00 PM and open session at 3:00 PM in the
City Council Chambers, 78-495 Calle Tampico, La Guinta, CA 92253.
DECLARATION OF POSTING
I, June S. Greek, City Clerk of the City of La Guinta, do hereby declare that the foregoing
agenda for the special La Guinta Redevelopment Agency meeting of June 21, 2006, 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 111, on June 16,
2006.
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City of La Guinta, California
Redevelopment Agency Special Meeting Agenda 2
June 21, 2006
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COUNCILIRDA MEETING DATE: June 21, 2006
AGENDA CATEGORY:
ITEM TITLE: Consideration of Fiscal Year
2006/2007 Preliminary Budget
BUSINESS SESSION:
/
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Adopt the Fiscal Year 2006/2007 Preliminary Budget and direct staff to prepare a
Fiscal Year 2006/2007 Final Budget for the July 18, 2006 La Quinta Redevelopment
Agency Meeting.
FISCAL IMPLICATIONS:
All Preliminary Fiscal Year 2006/2007 revenues, operational appropriations and debt
service funding are included in this Preliminary Budget. The Fiscal Year 2006/2007
budget totals $80,110,398 in appropriations and transfers of which $53,671,753 is
budgeted from PA 1 and $26,438,645 is budgeted from PA 2, and $81,773,646 in
estimated revenues and transfers of which $52,635,204 is budgeted from PA 1 and
$29,138,442 from PA 2, as reflected on C-1 of the Preliminary Budget.
CHARTER CITY IMPLICATIONS:
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 Ouinta 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 Funds
For Fiscal Year 2006/2007, the debt service budget for PA 1 is $35,353,361 and
$20,069,992 for PA 2 as reflected on Page C-1 of the FY 2006/2007 Budget.
Funding to pay the 2004 Local Agency Revenue Bonds is paid through two separate
transfers. The first set of transfers occurs between the RDA 1 &2 Low & Moderate
Housing Funds and the RDA 1 &2 Debt Service Funds. The second set of transfers
occurs between the RDA 1 &2 Debt Service Funds and the Financing Authority Debt
Service Fund. These bonds were issued in June 2004 for low & moderate housing
purposes through the Financing Authority with the Redevelopment Agency making the
annual debt service payment. The allocation between Project Areas 1 & 2 to fund the
annual debt service is based upon tax increment revenues with 2/3rds of the debt
service payment coming from Project Area 1 and 1/3rd coming from Project Area 2.
The debt service payments are made every six months and are due September 1 st and
March 1 st. The final payment is scheduled to be made in FY 2035. To fund the debt
service payment of the 2004 Local Agency Revenue Bonds, the PA 1 debt service
fund will transfer $3,968,515 to the La Ouinta Financing Authority Debt Service Fund
and PA 2 debt service fund will transfer an additional $1 ,954,642 to the La Ouinta
Financing Authority Debt Service Fund.
In PA 1, the debt service budget increased by $3.9 million over last year's budget
which consisted of a $4.1 million increase in pass through payments to other taxing
entities, a $3 million decrease in the State mandated ERAF shift, a $500,000 increase
in the debt service transfers for the aforementioned 2004 Local Agency Revenue
Bonds, a $2,500,000 increase for the transfer to the RDA 1 Capital Projects Fund for
construction of the La Ouinta Museum, and a $200,000 decrease in debt service for
other outstanding bond issues.
In PA 2, the debt service budget increased $4.3 million more than in Fiscal Year
2005/2006 due to a $4.7 million increase in pass through payments to taxing entities,
a $600,000 decrease in interest payments on City advances to the General Fund
based upon the April 2006 restructuring, and an increase of $250,000 in the debt
service transfers for the aforementioned 2004 Local Agency Revenue Bonds.
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Capital Projects Funds
For Fiscal Year 2006/2007, the capital project budget for PA 1 is $4,912,180 and
$172,477 for PA 2 as reflected on C-1 of the FY 2006/2007 budget. In PA 1, $4.1
million is planned in capital projects, as outlined in H-1 on the budget with the three
largest projects being construction of the Museum, construction of the Ave 52 Median
landscaping (Rondo to Jefferson) and construction of the Village Round About. The
majority of the remaining balance is planned for economic, legal matters, and
reimburses to the General Fund for services provided to the Agency. In PA 2, the
majority of the $1 72,477 in expenditures is planned for economic and legal matters
with the balance reimbursing the General Fund for services.
PA 1 revenues consist of the $2.5 million transfer from the Debt Service Fund and
$512,500 in interest income with PA 2 revenues consisting entirely of interest income
of $105,600.
PA 1 carry-over capital projects are estimated to be $18,089,917 for PA 1 and
$183,237 for PA 2 as reflected on C-3 for FY 2006/2007.
In June 2004, a third 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 housing projects in the City. Based upon the FY 06/07
appropriation requests of $ 3.5 million for property acquisition and prior year
appropriations of $49,197,219, the estimated balance available as of June 30,2006
is $ 8,800,814.
Low and Moderate Housing Funds
For Fiscal Year 2006/2007, the low and moderate housing budget for PA 1 is
$13,406,212 and $2,696,176 for PA 2 as reflected on Page C-1 of the FY
2006/2007 Budget.
The source of funding for these funds come from 200/0 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, $7.0 million is budgeted for land acquisition and $1.1 million budgeted for
housing development programs, including the Building Horizons project. A transfer of
$3,968,515 will be made to the Debt Service 1 Fund to pay a portion of the 2004
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Local Agency Bond debt service and the balance used to reimburse the General Fund
for its services and for professional consultant and legal services.
In PA 2, $1,954,642 will be transferred to the Debt Service 2 Fund to pay a portion
of the 2004 Local Agency Bond debt service and the balance used to reimburse the
General Fund for its services and for professional consultant and legal services.
Revenues
The total revenue for the Redevelopment Agency for FY 2006/2007 is estimated to be
$72,870,700, of which tax increment totals over $68.9 million as detailed on the
following chart:
Project Area 1
Revenue T e
Debt
Service
Capital
Pro"ects
2004
Low/Moderate Housing
I ncome Bond
Total
T
2
1
T 4
Project Area 2
2004
Revenue Type Debt Capital Low/Moderate Housing Bond
Service Pro"ects 1 ncome Total
Tax Increment
1
Interest
LQ Rental Program
Home Sale Proceeds
Total 19,932,500 105,600 5,145)00 2,000,000 27,183,800
4
Project Areas 1 & 2
2004
Debt Capital Low/Moderate Housing
Revenue T e Service Pro'ects Income Bond Total
6
20
L 2 2 2 2
1 15
Total 55,456,500 618,100 14,796,100 2,000,000 72,870,700
FINDINGS AND ALTERNATIVES:
Staff is requesting:
1) Review and comment on the Fiscal Year 2006/2007 La Ouinta Redevelopment
Agency Preliminary Budget and provide direction regarding any proposed
changes to the document; and
2) Approval of the Fiscal Year 2006/2007 Fiscal Year La Guinta Redevelopment
, Agency Preliminary Budget as amended at the June 21, 2006, La Ouinta
Redevelopment Agency Meeting. (Any approved changes by the Agency to be
incorporated into the Final Budget for adoption on July 18, 2006.)
(
Respectfully submitted,
" .' Ii f~~
John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
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