Loading...
2009 06 09 RDA~Y °~.~F'Q~a Redevelopment 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 ADJOURNED MEET/NG TUESDAY, JUNE 9, 2009 - 2:00 P.M. Beginning Resolution No. RA 2009-. CALL TO ORDER Roll Call: Agency Board Members: Adolph, Evans, Henderson, Sniff, and Chairperson Franklin 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 -NONE BUSINESS SESSION 1. CONSIDERATION OF FISCAL YEAR 2009/2010 PRELIMINARY BUDGET. A. MINUTE ORDER ACTION Redevelopment Agency Agenda June 9, 2009 ADJOURNMENT The next regular meeting of the Redevelopment Agency will be held on June 16, 2009, 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 special meeting of June 9, 2009, 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 5, 2009. DATEQ: June 5, 2009 VERONICA~!MONTECINO, City Clerk City of La Quinta, California Public Notice Any writings or documents provided to a majority of the Redevelopment Agency regarding any item on this agenda will be made available for public inspection at the City Clerk counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. Redevelopment Agency Agenda 2 June 9, 2009 ~w ~. ~~ ~ ~~ ~~ °~ ~ a~w ~~ Qa~~ COUNCIL/RDA MEETING DATE: June 9, 2009 AGENDA CATEGORY: ITEM TITLE: COnSlderatiOn Of FiSCeI Year 2009/2010 Preliminary Budget BUSINESS SESSION: CONSENT CALENDAR: STUDY SESSION: PUBLIC HEARING: RECOMMENDATION: Adopt the Fiscal Year 2009/2010 Preliminary Budget and direct staff to prepare a Fiscal Year 2009/2010 Final Budget for the July 7, 2009 La Quinta Redevelopment Agency Meeting. FISCAL IMPLICATIONS: All Preliminary Fiscal Year 2009/2010 revenues, operational appropriations and debt service funding are included in this Preliminary Budget. The Fiscal Year 2009/2010 budget totals $105,003,067 in appropriations and transfers of which $64,471,468 is budgeted from PA 1 and $40,531,599 is budgeted from PA 2, and $100,616,891 in estimated revenues and transfers of which $69,289,392 is budgeted from PA 1 and $31,327,499 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 Quinta Redevelopment Agency has two project areas (PA 1 & PA 21, a separate set of funds has been established to account for each of the aforementioned activities. DEBT SERVICE FUNDS For Fiscal Year 2009/2010, the debt service budget for PA 1 is 550,491,815 and 523,548,858 for PA 2 as reflected on Page C-1 of the FY 2009/2010 Budget. The following chart is a breakdown of the major expenditure categories: Debt Service P Pro ect Area Increase ur se 1 2 FV 2009/2010 FV 2006/2009 (Decrease DOnVdCt Services Debt Service $ 508,200 $ 268,000 $ 776,200 $ 612,500 $ 163,700 : iaz Allocation BOntls 10,279,062 419,550 10,698,612 10,710,373 (11 761) City of La Quinta Interest on Atlvances 1,020,000 1,656,528 2,676,528 2 676 528 , Pass Through Payments to Others Subtot l 24,722,621 19,253,381 43,976,002 , , 44,653,467 677,465 a Transfers: 36,021,663 21,329,459 57,351,142 58,040,368 689,226) Capital Projects Fun0 10,000,000 - 10,000,000 15,000,000 (5 000 000) Financing AUthorHy-2004 Housing eontls Subtotal 3,961,932 1,951,399 5,913,331 5,919,994 , , 6,663) 13,961,932 1,951,399 15,913,331 20,919,994 (5,006,663) Total $ 50,491,815 $ 23,548,858 $ 74,040,673 $ 79,572,862 $ 5,532,189) Contract Services Contract services consist of professional services for audit, fiscal agent, and property tax administration. An increase of 5163,700 in contract services fees for FY 2009/2010 is County of Riverside Administration fees. Tax Allocation Bonds (TABS) During FY 2008/2009, no TABS were issued. Debt service payments remained at 510.7 million in FY 2008/2009 and in FY 2009/2010. City of La Quinta Interest on Advances The City of La Quinta General Fund has advanced 531.4 million to the Agency PA 1 and 2 to accelerate capital improvement projects. Interest on these advances ranges from 7%-10% with 52,676,528 due in FY 2009/2010. 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. In addition, an advance from the General Fund to Project Area No. 2 for 51.5 million is anticipated to proceed with the Jefferson St and Highway 111 landscaping improvements approved in the Five Year Capital Improvement Plan earlier this year. Pass Through Payments to Others The following chart lists the Pass Through payments to Others for FY 2009/2010 which decreased by 5677,465 from the previous fiscal year: Pro'ect Area Increase A enc County of Riverside,Library,Fre 1 $ 18,219,888 2 $ 9,649,606 FY 09/10 $ 27,869,494 FY 08/09 $ 29,248,267 Decrease $ (1,378,773) Cdy of La Quinta 226,589 226,589 226 589 Desert Sands USD 3,123,031 5,243,987 8,367,018 7,799,352 , 567,666 County Supedntendent of Schools 172,785 591,734 764,519 700,762 63,757 Desert Community College 825,632 1,090,514 1,916,146 1,786,206 129 940 Mosqu~o Abatement District 600,979 396,757 997,736 1,052,024 , (54,288) Coachella Valley Water Disrct 648,779 2,131,149 2,779,928 3,099,367 (319,439) Coachella Valley Park & Recreation District 87,415 149,634 237,049 171,580 65,469 Coachella Valley Unifietl School District 801,688 - 801,688 785,968 15 720 Coachella Valley Resource Conservation District 1,493 - 1,493 1,050 , 443 Coachella Valley Public Cemetary 14,342 14,342 8,891 5,451 $ 24,722,621 $ 19,253,381 $ 43,976,002 $ 44,653,467 $ (677,465) Pass through payments are paid based upon the actual amount of tax increment property taxes collected in accordance with agreed upon formulas that vary from agency to agency. The decrease is anticipated due to a forecasted 5.8 % decrease in PA No. 1 and 3.5% decrease in PA No. 2 tax increment property taxes. No Educational Relief Augmentation Fund (ERAF) payments to the State of California have been budgeted. Transfers Out -Capital Projects Fund The FY 2009/2010 preliminary budget contains a 510 million transfer from Debt Service PA 1 to the Capital Project PA 1 Fund for future Capital Projects. Staff is proposing this transfer for future SilverRock Phase 2 improvements, 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. Staff will look at transfers from PA 2 Debt Service Fund, advances from the General Fund, and possible TABS to generate additional needed funds. ••~ 005 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 2/3rtls 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 15t and March 15`. 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 53,961,932 to the La Quinta Financing Authority Debt Service Fund and PA 2 debt service fund will transfer an additional 51,951,399 to the La Quinta Financing Authority Debt Service Fund. CAPITAL PROJECT FUNDS For Fiscal Year 2009/2010, the capital project budget for PA 1 is 56,125,000 and 513,057,893 for PA 2 as reflected on C-1 of the FY 2009/2010 budget. The following table lists the Capital Projects that are included in this year's budget as outlined in H-1: C i l Pro'ect Area ap ta Projects 1 2 FY 2009/2010 Washrtrgton StreeUl-101nterchange Improvements $ 50,000 $ - $ 50 000 Sidewalks -Various Locations 25,000 , 25,000 Handicep Access Ramps -Various locations 10,000 - 10 000 A Street Extension (Dune Palms Rd to Komar Ctr) 1,001,670 , 1,001 670 Hwy 111 Utility Undergrounding - 282,976 , 282,976 Drainage Improvemenls(NE Simon 8 Washington) - 500,000 500 000 Jefferson Street Parkway Landscaping (USta Grande to Westward Ho) - 2,161,048 , 2,161,048 SilverROCk Canal 6,000,000 - 6,000,000 RDA Owned Cove Homes Landspping 40,000 40,000 Dune Palms Rd Street Improvements - 1 812 199 1 812 199 Washington StApts Rehabilitation 7,300,000 7,300,000 Total $ 6,125,000 $ 13,057,893 $ 19,182,893 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. ... 006 LOW AND MODERATE HOUSING FUNDS For Fiscal Year 2009/2010, the low and moderate housing budget for PA 1 is $6,817,713 and $13,436,649 for PA 2 as reflected on Page C-1 of the FY 2009/2010 Budget. 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 a Building Horizons/BIA project, 5275,000 for the La Quinta Cove Home Rental Program and 5750,000 for foreclosure acquisitions. A transfer of 53,961,932 will be made to the Debt Service 1 Fund to pay a portion of the 2004 Local Agency Bond debt service and $476,960 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, S 1,951,399 will be transferred to the Debt Service 2 Fund to pay a portion of the 2004 Local Agency Bond, 5250,000 is budgeted for foreclosure acquisition, and 5669,056 is budgeted for the property management of the Washington Street Apartments and the debt service payments on the outstanding loans. The balance of funds will be used to reimburse the General Fund for its services and for professional consultant and legal services. 0~~ REVENUES The total revenue for the Redevelopment Agency for FY 2009/2010 is estimated to be $84.2 million, of which tax increment totals over $82.5 million as detailed on the following chart: Pro'ect Area 1 Revenuer Capital j Low/Moderate 2004 Housing FY 2009/2010 FY 20082009 Increase a Debt Service Pro ects Income Bond Total Total Decrease Tax Increment Interest $ 43,335,700 $ 10,833,900 $ 54,169,600 $ 57,506,100 $ 3336,500 (~ ) LQ Rental Program 42,700 194,500 68,700 305,900 526,600 (220,700) Home Sale Proceeds 225,000 225,000 225,000 Sale of Land 150,000 150,000 150,000 - Total $ 43,378,400 $ 194,500 $ 11,277,600 $ - $ 54,850,500 3,894,600 $ 62,302,300 (3,894,600) $ 7,451,800 Pro'ect Area 2 Capital Low/Moderate 2004 Housing FY 2009/2010 FY 20082009 Increase Revenue T Debt Service Projects Income Bontl Total Total Decrease) Tax lnaement $ 22,671,800 $ 5,668,000 $ 28.339,800 $ 29,363,500 $ (1 023 700) Interest LQ Rental Program 140,000 41,400 168,100 17,500 367,000 566,500 , , (199,500) Home Sale Proceeds 669,300 669,300 - 669,300 Sale of Land - Total $ 22,811,800 $ 41,400 $ 6,505,400 $ 17,500 $ 29,376,100 $ 29,930,000 $ 553,900 Pro'ecl Areas 1 & 2 Revenue Type Debt Service Capital Projects Low/Moderate I 2004 Housing FY 2009/2010 FY 20082009 Increase Tax lnaement $ 66,007,500 $ - ncome $ 16 501 900 Bontl $ Total Total (Decease) Interest 182,700 235,900 , , 236,800 - 17,500 $ 82,509,400 672,900 $ 86,869,600 1,093,100 $ (4,360,200) (420 200) L(2 Rental Program 894,300 894,300 225,000 , 669 300 Home Sale Proceeds 150,000 - 150,000 150 000 , Sale of Land - , Total $ 66,190,200 - $ 235,900 - $ 17,783,000 $ 17,500 $ 84,226,600 3,894,600 $ 92,232,300 3,894,600 $ 8,005,700 Major changes from last year include the deferral of $3.9 million in SilverRock land sales and a reduction of $4.36 million in tax increment property taxes. ~~ 008 FINDINGS AND ALTERNATIVES• Staff is requesting: 1) Review and comment on the Fiscal Year 2009/2010 La Quinta Redevelopment Agency Preliminary Budget and provide direction regarding any proposed changes to the document; and 2) Approval of the Fiscal Year 2009/2010 Fiscal Year La Quinta Redevelopment Agency Preliminary Budget as amended at the June 9, 2009, La Quinta Redevelopment Agency Meeting. (Any approved changes by the Agency to be incorporated into the Final Budget for adoption on July 7, 2009.) Respectfully submitted, ,1 ohn M. Falconer, Finance Director Approved for submission by: Thomas P. Genovese, Executive Director .. 009