2008 06 19 RDA6:r# 4 40(ha
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
ADJOURNED MEETING
THURSDAY. JUNE 19. 2008 — 6:00 P.M.
Beginning Resolution No. 2008-
Ordinance No.
CALL TO ORDER
Roll Call:
Agency Members: Adolph, Henderson, Osborne, Sniff, and Chairman Kirk
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
CONSENT CALENDAR
1. ADOPTION OF A RESOLUTION ADOPTING THE INVESTMENT POLICY OF
THE CITY OF LA QUINTA FOR FISCAL YEAR 2008/2009.
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Redevelopment Agency Agenda 1 June 19, 2008
BUSINESS SESSION
1. CONSIDERATION OF FISCAL YEAR 2008/2009 PRELIMINARY BUDGET.
A. MINUTE ORDER ACTION
ADJOURNMENT
The next regular meeting of the Redevelopment Agency will be held on July 1,
2008, 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 Quinta, CA 92253.
DECLARATION OF POSTING
I, Veronica Montecino, City Clerk of the City of La Quinta, do hereby declare that
the foregoing agenda for the La Quinta Redevelopment Agency meeting of June
19, 2008, 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 13, 2008.
DATED: ne 13, 2008
VERONICA TECINO, Secretary
City of La Quinta, California
002
Redevelopment Agency Agenda 2 June 19, 2008
COUNCIL/RDA MEETING DATE: June 19, 2008
ITEM TITLE: Adoption of a Resolution Adopting the
Investment Policy of the Redevelopment Agency
for Fiscal Year 2008/2009
AGENDA CATEGORY:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt a Resolution of the Redevelopment Agency approving the Investment Policy
of the City of La Quinta for Fiscal Year 2008/2009.
SEE CITY COUNCIL STAFF REPORT
003
RESOLUTION NO. RA 2008-
A RESOLUTION OF THE LA QUINTA REDEVELOPMENT
AGENCY OF THE CITY OF LA QUINTA APPROVING AND
ADOPTING THE AMENDED INVESTMENT POLICY FOR
FISCAL YEAR 2008/2009
WHEREAS, the general purpose of the Investment Policy is to provide the
rules and standards users must follow in investing funds of the City of La Quinta;
and
WHEREAS, the primary objectives, in order of priority, of the City of La
Quinta's investment activity shall be:
Safety of principal is the foremost objective of the investment program.
Investments of the City of La Quinta shall be undertaken in a manner that
seeks to ensure the preservation of capital in the overall portfolio.
The investment portfolio shall remain sufficiently liquid to meet all operating
requirements that may be reasonably anticipated.
The investment portfolio shall be designed with the objective of attaining a
market rate of return or yield throughout budgetary and economic cycles,
taking into account the investment risk constraints and liquidity needs.
WHEREAS, authority to manage the City of La Quinta's investment portfolio
is derived from the City Ordinance. Management responsibility for the investment
program is delegated to the City Treasurer, who shall establish and implement
written procedures for the operation of the City's investment program consistent
with the Investment Policy for Fiscal Year 2008/2009; and
WHEREAS, the Investment Policy will be adopted before the end of June of
each year and amended as considered necessary; and
NOW, THEREFORE, BE IT RESOLVED by the Redevelopment Agency of the
City of La Quinta to adopt the Fiscal Year Investment Policy (Exhibit A).
0u4
PASSED, APPROVED and ADOPTED at a regular meeting of the La Quinta
Redevelopment Agency, held on this day of
2008 by the following vote, to wit:
AYES:
NOES:
ABSTAIN:
ABSENT:
TOM KIRK, Chair
La Quinta Redevelopment Agency
ATTEST:
VERONICA J. MONTECINO, CMC, Agency Secretary
La Quinta Redevelopment Agency
(SEAL)
APPROVED AS TO FORM:
M. KATHERINE JENSON, Agency Counsel
La Quinta Redevelopment Agency
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COUNCIURDA MEETING DATE: June 19, 2008 AGENDA CATEGORY:
ITEM TITLE: Consideration of Fiscal Year
2008/2009 Preliminary Budget
RECOMMENDATION:
BUSINESS SESSION: /
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt the Fiscal Year 2008/2009 Preliminary Budget and direct staff to prepare a
Fiscal Year 2008/2009 Final Budget for the July 15, 2008 La Quinta Redevelopment
Agency Meeting.
FISCAL IMPLICATIONS:
All Preliminary Fiscal Year 2008/2009 revenues, operational appropriations and debt
service funding are included in this Preliminary Budget. The Fiscal Year 2008/2009
budget totals $90,1 13,868 in appropriations and transfers of which $63,512,943 is
budgeted from PA 1 and $26,600,925 is budgeted from PA 2, and $113,630,377 in
estimated revenues and transfers of which $81,746,779 is budgeted from PA 1 and
$31,883,598 from PA 2, as reflected on C-1 of the Preliminary Budget.
CHARTER CITY IMPLICATIONS:
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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.
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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 FUNDS
For Fiscal Year 2008/2009, the debt service budget for PA 1 is $56,084,465 and
$23,488,397 for PA 2 as reflected on Page C-1 of the FY 2008/2009 Budget. The
following chart is a breakdown of the major expenditure categories:
Purpose
Project Area
I
FY 2007/2008
Increase
(Decrease)
1
2
1 FY 2008/2009
Contract Services
Debt Service:
Tax Allocation Bonds
City of La Quinta Interest on Advances
Pass Through Payments to Others
Subtotal
Transfers:
Capital Projects Fund
Financing Authority- 2004 Housing Bonds
Subtotal
$ 403,200
$ 209,300
$ 612,500
$ 633.400
$ (20,900)
10,290,189
1,020,000
25,404,680
420,184
1,656,528
19,248,787
10,710,373
2,676,528
44,653,467
10,715,688
2,020,000
42,215,997
(5,315)
656,528
2,437,470
36,714,869
21,325,499
58,040,368
54,951,685
3,088,683
15,000,000
3,966,396
1,953,598
15,000,000
5,'19,994
25,000,000
5,926.806
(10,000,000)
6,812)
18,966,396
1,953,598
20,919,994
30,926,806
(10,006,812)
Total
$ 56,084,465
1 $ 23,488,397
1 $ 79,572,862
1 $ 86,511,891
$ (6,939,029)
Contract Services
Contract services consist of professional services for audit, fiscal agent, and property
tax administration. A slight decrease of $20,900 in the fees for FY 2008/2009 is
proposed.
Tax Allocation Bonds (TABS)
During FY 2007/2008, no TABS were issued. Debt service payments remained at
$10.7 million in FY 2007/2008 and in FY 2008/2009.
City of La Quinta Interest on Advances
The City of La Quinta General Fund has advanced $31.4 million to the Agency PA 1
and 2 to accelerate capital improvement projects. Interest on these advances ranges
from 7%-10% with $2,676,528 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 for the 10% advances in FY 2035/2036 and
end in FY 2038/2039 and for the 7% advances principal advances may begin as early
as FY 2009/2010 and end in FY 2017/2018.
007
Pass Through Payments to Others
The following chart lists the Pass Through payments to Others for FY 2008/2009
which increased by $2.4 million from the previous fiscal year:
Project Area
Increase
Agency
1
2
FY 08109
FY 07/08
(Decrease)
County of Riwrside,Ubrary,Fire
$ 19,623,048
$ 9,625,219
$ 29,248,267
$ 27,484,928
$ 1,763,339
Desert Sands USD
2,558,967
5,240,385
7,799,352
7,475,917
323,435
County Superintendent of Schools
107,910
592,852
700,762
678,541
22,221
Desert Community College
696,537
1,089,669
1,786,206
1,708,883
77,323
Mosquito Abatement District
656,430
396,594
1,052,024
994,449
57,575
Coachella Valley Water District
945,249
2,154,118
3,099,367
2,978,173
121,194
Coachella Valley Park & Recreation District
21,630
149,950
171,580
166,326
5,254
Coachella Valley Unified School District
785,968
786,968
719,579
66,389
Coachella Valley Resource Conservation District
1,050
1,050
969
81
Coachella Valley Public Cemetery
8,891
-
8,891
8,232
659
$ 25,404,680
$ 19,248,787
$ 44,653,467
$ 42,215,997
$ 2,437,470
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 addition, the County of Riverside pass through payments are projected to
increase by $1 .7 million in FY 2008/2009 based upon higher tax increment collections.
Transfers Out - Capital Projects Fund
The FY 2008/2009 preliminary budget contains a $15 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.
008
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 /3rd coming from Project Area 2.
The debt service payments are made every six months and are due September 15L and
March 152. The final payment is scheduled to be made in FY 2034/2035. To fund the
debt service payment of the 2004 Local Agency Revenue Bonds, the PA 1 Debt
Service fund will transfer $3,966,396 to the La Quinta Financing Authority Debt
Service Fund and PA 2 debt service fund will transfer an additional $1,953,598 to the
La Quinta Financing Authority Debt Service Fund.
CAPITAL PROJECT FUNDS
For Fiscal Year 2008/2009, the capital project budget for PA 1 is $85,000 and
$30,000 for PA 2 as reflected on C-1 of the FY 2008/2009 budget.
The following table lists the Capital Projects that are included in this year's budget as
outlined in H-1:
Project Area
1
1 2
FY 2008/2009
Capital Projects
Washington Street/I-10 Interchange Improvements
$ 50,000
$ -
$ 50,000
Sidewalks - Various Locations
25,000
25,000
Handicap Access Ramps - Various Locations
10,000
10,000
Dune Palms Road Improvements
30,000
30,000
Total
$ 85,000
$ 30,000
$ 115,000
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.
LOW AND MODERATE HOUSING FUNDS
For Fiscal Year 2008/2009, the low and moderate housing budget for PA 1 is
$6,135,610 and $2,862,442 for PA 2 as reflected on Page C-1 of the FY 2008/2009
Budget.
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The source of funding for these funds comes 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, $250,000 was set aside for the Building Horizons project. A transfer of
$3,966,396 will be made to the Debt Service 1 Fund to pay a portion of the 2004
Local Agency Bond debt service and $478,083 to pay for an 18.50% portion of the
1994 Tax Allocation Bonds. The balance is used to reimburse the General Fund for its
services and for professional consultant and legal services.
In PA 2, $1,953,598 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.
RFVFNl1FS
The total revenue for the Redevelopment Agency for FY 2008/2009 is estimated to be
$103,930,201, of which tax increment totals over $86.9 million as detailed on the
following chart:
Project Area 1
Capital
Low/Moderate
2004 Housing
FY 2008/2009
FY 2007/2008
Increase
Revenue Type
Debt Service
Projects
Income
Bond
Total
Total
(Decrease)
Tax Increment
$ 46,004,900
$ 11,501,200
$ 57,506,100
$ 53,239,300
$ 4,266,800
Interest
173,600
300,000
53,000
526,600
1,838,800
(1,312,200)
LQ Rental Program
225,000
225,000
252,000
(27,000)
Home Sale Proceeds
150,000
150,000
150,000
-
Sale of Land
3,894,600
3,894,600
3,894,600
Total
$ 46, 178,500
$ 4,194,600
$ 11,929,200
$ -
$ 62,302,300
$ 59,374,700
$ 2,927,600
Project Area 2
Capital
Low/Moderate
2004 Housing
FY 2008/2009
FY 2007/2008
Increase
Revenue Type
Debt Service
Projects
Income
Bond
Total
Total
(Decrease)
Tax Increment
$ 23,490,800
$ 5,872,700
$ 29,363,500
$ 28,487,000
$ 876,500
Interest
84,000
380,500
102,000
566,500
3,374,200
(2,807,700)
LQ Rental Program
-
Home Sale Proceeds
-
Sale of Land
12,694,301
(12,694,301)
Total
$ 23,490,800
$ 84,000
$ 6,253,200
$ 102,000
$ 29,930,000
$ 44,555,501
$ (14,625,501
Project Areas 1 & 2
Capital
Low/Moderate
2004 Housing
FY 2008/2009
FY 2007/2008
Increase
Revenue Type
Debt Service
Projects
Income
Bond
Total
Total
(Decrease)
Tax Increment
$ 69,495,700
$ -
$ 17,373.900
$ -
$ 86,869,600
$ 81,726,300
$ 5,143,300
Interest
173,600
384,000
433,500
102,000
1,093,100
5,213,000
(4,119,900)
LQ Rental Program
-
-
225,000
-
225,000
252,000
(27,000)
Home Sale Proceeds
-
-
150,000
-
150,000
150,000
-
SaleofLand
3,894,600
3,894,600
16,588,901
(12,694,301)
Total
$ 69,669,300
$ 4,278,600
$ 18,182,400
$ 102,000
$ 92,232,300
$ 103,930,201
$ (11,697,901)
010
Included in the revenues above are sale of $3.9 million from the first installment of
land sales from SilverRock Resort.
FINDINGS AND ALTERNATIVES:
Staff is requesting:
1) Review and comment on the Fiscal Year 2008/2009 La Quinta Redevelopment
Agency Preliminary Budget and provide direction regarding any proposed
changes to the document; and
2) Approval of the Fiscal Year 2008/2009 Fiscal Year La Quinta Redevelopment
Agency Preliminary Budget as amended at the June 19, 2008, La Quinta
Redevelopment Agency Meeting. (Any approved changes by the Agency to be
incorporated into the Final Budget for adoption on July 15, 2008.)
Respectfully submitted,
6John M. Falconer, Finance Director
Approved for submission by:
Thomas P. Genovese, Executive Director
Oil