2007 06 21 RDA
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R"development Agency agendas are
available on the City' web page
@ www.la-quinta.org
REDEVELOPMENT AGENCY
AGENDA
CITY COUNCIL CHAMBERS
78-495 Calle Tampico
La Quinta. California 92253
Special Meeting
THURSDAY. JUNE 21. 2007 - 7:00 P.M.
Beginnin!l Resolution No. RA 2007-_
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Henderson, Kirk, 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.
CONFIRMATION OF AGENDA
BUSINESS SESSION
1. CONSIDERATION OF FISCAL YEAR 2007/2008 PRELIMINARY BUDGET.
A. MINUTE ORDER ACTION
...u u 01
Redevelopment Agency Agenda
Special Meeting
June 21, 2007
ADJOURNMENT
Adjourn to a regularly scheduled meeting of the Redevelopment Agency to be held
on July 3, 2007, commencing with closed session at 3:00 p.m. and open session
at 4:00 p.m. in the City Council Chambers, 78-495 Calle Tampico, La Ouinta, CA
92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Ouinta, do hereby declare that
the foregoing agenda for the Special La Ouinta Redevelopment Agency meeting of
June 21, 2007, 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 15, 2007.
DATED: ,.June 15, 2007
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VERONICA J. TECINO, City Clerk
City of La Ouinta, California
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Redevelopment Agency Agenda
Special Meeting
2
June 21, 2007
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ITEM TITLE: Consideration of Fiscal Year
2007/2008 Preliminary Budget
AGENDA CATEGORY:
BUSINESS SESSION: i
COUNCILIRDA MEETING DATE: June 21, 2007
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
RECOMMENDATION:
Adopt the Fiscal Year 2007/2008 Preliminary Budget and direct staff to prepare a
Fiscal Year 2007/2008 Final Budget for the July 17, 2007 La Ouinta Redevelopment
Agency Meeting.
FISCAL IMPLICATIONS:
All Preliminary Fiscal Year 2007/2008 revenues, operational appropriations and debt
service funding are included in this Preliminary Budget. The Fiscal Year 2007/2008
budget totals $143,779,231 in appropriations and transfers of which $118,156,197 is
budgeted from PA 1 and $25,623,034 is budgeted from PA 2, and $135,336,308 in
estimated revenues and transfers of which $88,824,961 is budgeted from PA 1 and
$46,511,347 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 Ouinta 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.
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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 2007/2008, the debt service budget for PA 1 is $64,271,404 and
$22,240,487 for PA 2 as reflected on Page C-1 of the FY 2007/2008 Budget. The
following chart is a breakdown of the major expenditure categories:
PrOject Area Increase
Purpose 1 2 FY 2007/2008 FY 2006/2007 (Decrease)
Contract Services $ 457,300 $ 176,100 $ 633,400 $ 633,400 $ -
Debt Service.
Tax Allocation Bonds 10,295,553 420,135 "10,715,688 11,581,540 (865,852)
City of La Quinta Interest on Advances 1,020,000 1,000,000 2,020,000 2,020,000 -
Pass Through Payments to Others 23,527,591 18,688,406 42,215,997 32,765,256 9,450,741
Subtotal 34,843,144 20,108,541 S4,951 ,685 46,366,796 8,584,889
Transfers.
Capital Projects Fund 25,000,000 - 25,000,000 2,500,000 22,500,000
Financing Authority - 2004 Housing Bonds 3,970,960 1,955,846 5,926,806 5,923,157 3,649
Subtotal 28,970,960 1,955,846 :lO,926,806 8,423,157 22,503,649
Total $ 64,271,404 $ 22,240,487 $ 86,511,891 $ 55,423,353 $ 31,088,538
Contract Services
Contract services consist of professional services for audit, fiscal agent, and property
tax administration. No increase in the fees for FY 2007/2008 is proposed.
Tax Allocation Bonds (TABS)
During FY 2006/2007, no TABS were issued. Debt service payments decreased from
$11.6 million in FY 2006/2007 to $10.7 million in FY 2007/2008 because of a
reduction in outstanding principal.
City of La Quinta Interest on Advances
The City of La Ouinta General Fund has advanced $22 million to the Agency PA 1 and
2 to accelerate capital improvement projects. Interest on these advances ranges from
7%-10% with $2,020,000 due in FY 2007/2008. Repayment of the principal is
scheduled to begin for PA 1 in FY 2030/2031 and end in FY 2033/2034 and for PA 2
principal payments are scheduled to begin in FY 3035/3036 and end in FY
3038/3039.
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Pass Through Payments to Others
The following chart lists the Pass Through payments to Others for FY 2007/2008
which increased by $8.6 million from the previous fiscal year:
Project Ar,ea Increase
Agency 1 2 FY 07/08 FY 06/07 (Decrease)
County of Rlverslde,Library,Fire $ 18,187,503 $ 9,297,425 $ 27,484,928 $ 23,337,267 $ 4,147,661
Desert Sands USD 2,362,184 5,113,733 7,475,917 4,517,050 2,958,867
County Supenntendent of Schools 100,017 578,524 678,541 511,020 167,521
Desert Community College 645,550 1,063,333 1,708,883 939,261 769,622
Mosquito Abatement District 607,440 387,009 994,449 846,608 147,841
Coachella Valley Water Dlstnct 876,117 2,102,056 2,978,173 2,584,798 393,375
Coachella Valley Park & Recreation Distnct 20,000 146,326 166,326 129,252 37,074
Coachella Valley Unified School District 719,579 - 719,579 762,855 (43,276)
Coachella Valley Resource Conservation District 969 - 969 - 969
Coachella Valley Public Cemetary 8,232 - 8,232 - 8,232
$ 23,527,591 $ 18,688,406 $ 42,215,997 $ 33,628,111 $ 8,587,886
In FY 2006/2007, the Agency tax increment reached $300 million since inception
which will require beginning in FY 2007/2008 a supplemental payment for the next 20
years to the Desert Sands Unified School District and the Desert Community College
District. In FY 2007/2008, the payments to Desert Sands Unified School District and
the Desert Community College District are budgeted .at $2.4 million and $645,000
respectively. In addition, the County pass through payments are projected to increase
by $4.1 million in FY 2007/2008 and all other taxing e,ntities payments are projected
to increase by $1.5 million based upon higher tax incr,ement collections.
Transfers Out - Capital Projects Fund
The FY 2007/2008 preliminary budget contains a $ 25 million transfer from Debt
Service PA 1 to the Capital Project PA 1 Fund for Phase 2 improvements at SilverRock
Resort contained in the Capital Improvement Program. Staff is proposing funding
these Phase 2 improvements from tax increment and land sale proceeds from the site,
as contrasted to issuing Tax Allocation Bonds (TABS), which was done to purchase
the site and construct Phase 1. Staff recommends this approach for Phase 2 as it will
reduce the debt service costs to the Agency. In the future, additional transfers from
the Debt Service Fund PA 1 will be required to complete the Phase 2 improvements.
In the future, Staff would look at transfers from PA 2 Debt Service Fund, advances
from the General Fund, and possible TABS to generate needed additional funds.
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Transfer Out - 2004 Housing Bonds
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 1/3'd coming from Project Area 2.
The debt service payments are made every six months and are due September 1st and
March 1'''. 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 $3,970,960 to the La Ouinta Financing Authority Debt Service Fund
and PA 2 debt service fund will transfer an additional $1,955,846 to the La Ouinta
Financing Authority Debt Service Fund.
CAPITAL PROJECT FUNDS
For Fiscal Year 2007/2008, the capital project budget for PA 1 is $47,814,397 and
$426,832 for PA 2 as reflected on C-1 of the FY 2007/2008 budget.
The following table lists the Capital Projects that are included in this years budget as
outlined in H-1 :
PrOject Area
Capital Projects 1 2 FY 2007/2008
Washington StreeVI-10 Interchange Improvements $ 50,000 $ - $ 50,000
Sidewalks - Various Locations 25,000 - 25,000
Handicap Access Ramps - Various Locations 10,000 - 10,000
SilverRock Resort Phase II Golf Course Construction 2,106,000 - 2,106,000
SlIverRock Resort Clubhouse-Construction 16,507,900 - 16,507,900
SilverRock Resort Phase II Infrastructure 22,223,141 - 22,223,141
SilverRock Resort Phase II Entry Feature/Roads 4,158,224 - 4,158,224
Village Signage program 442,200 - 442,200
Phase I Golf Cart Routes 456,000 - 456,000
Ped Activated Cross Walk - Westward Ho - 275,000 275,000
Eisenhower Drive Rehabilitation 620,501 - 620,501
CUe Estado/La Fonda Mid Block Ped Crossing 115,271 115,271
Total $ 46,714,237 $ 275,000 $ 46,989,237
In addition to the projects listed above in PA 1 and 2, expenditures are planned for
economic, legal matters and General Fund reimbursements for services.
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LOW AND MODERATE HOUSING FUNDS
For Fiscal Year 2007/2008, the low and moderate housing budget for PA 1 is
$6,070,396 and $2,955,715 for PA 2 as reflected on Page C-1 of the FY 2007/2008
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, $600,000 is budgeted for the 2nd trust deed, foreclosure and rental programs.
In prior years, funding was set aside for the Building Horizons project. Staff has been
notified that Building Horizons will not be building a home in La Ouinta in FY
2007/2008, therefore, no funding has been budgeted. A transfer of $3,970,960 will
be made to the Debt Service 1 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.
In PA 2, $1,955,846 will be transferred to the Debt Selrvice 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.
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REVENUES
The total revenue for the Redevelopment Agency for FY 2007/2008 is estimated to be
$103,930,201, of which tax increment totals over $131.7 million as detailed on the
following chart:
Project Area 1
Capital Low/Moderate 2004 Hou sing FY 2007/2008 FY 2006/2007 InCfl:!8se
Revenue Type Debt Service Projects Income Bond Total Total (Decrease)
Tax Increment $ 42,638,700 $ 10,600,600 $ 53,239,300 $ 44,346,000 $ 8,[,93,300
Interest 896,100 537,900 404,800 1,838,800 938,900 [,99,900
La Rental Program 252,000 252,000 252,000 -
Home Sale Proceeds 150,000 150,000 150,000 -
Sale of Land 3,894,600 3,894,600 - 3,694,600
Total $ 43,534,800 $ 4,432,500 $ 11,407,400 $ - $ 59,374,700 $ 45,686,900 $ 13,E,87,800
Project Area 2
Capital Low/Moderate 2004 HOUSing FY 2006/2007 Incfl38se
Revenue Type Debt Service Projects Income Bond Total Total (Decrease)
Tax Increment $ 22,923,100 $ 5,563,900 $ 28,487,000 $ 24,529,000 $ 3,~<58,000
Interest 573,200 58,900 742,100 2,000,000 3,374,200 2,654,800 i19,400
La Rental Program - - -
Home Sale Proceeds - - -
Sale of Land 12,694,301 12,694,301 - 12,694,301
Total $ 23,496,300 $ 58,900 $ 19,000,301 $ 2,000,000 $ 44,555,501 $ 27,183,800 $ 17,<,71,701
PrOject Areas 1 & 2
Capital Low/Moderate 2004 HOUSing FY 2006/2007 I nCrt38Se
Revenue Type Debt Service Projects Income Bond Total Total (Decrease)
Tax Increment $ 65,561,800 $ - $ 16,164,500 $ . $ 81,726,300 $ 68,875,000 $ 12,[,51,300
Interest 1,469,300 596,800 1,146,900 2,000,000 5,213,000 3,593,700 1,E,19,300
La Rental Program - - 252,000 - 252,000 252,000 -
Home Sale Proceeds - - 150,000 - 150,000 150,000 -
Sale of Land - 3,894,600 12,694,301 - 16,588,901 - 16,[,88,901
Total $ 67,031,100 $ 4,491,400 $ 30,407,701 $ 2,000,000 $ 103,930,201 $ 72,870,700 $ 31,059,501
Included in the revenues above are sale of lands totaling $16.6 million of which $12.7
million is from the former Vista Dunes Mobile Home Park site and $3.9 million from the
first installment of land sales from SilverRock Resort.
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FINDINGS AND ALTERNATIVES:
Staff is requesting:
1) Review and comment on the fiscal Year 2007/2008 La Ouinta Redevelopment
Agency Preliminary Budget and provide direGtion regarding any proposed
changes to the document; and
2) Approval of the Fiscal Year 2007/2008 Fiscal Year La Ouinta Redevelopment
Agency Preliminary Budget as amended at the June 21, 2007, La Ouinta
Redevelopment Agency Meeting. (Any approved changes by the Agency to be
incorporated into the Final Budget for adoption on July 17, 2007.)
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John M. Falconer, finance Director
Approved for submission by:
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Thomas P. Genovese, Executive Director
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