2010 06 03 RDAe~ ~1w4~
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
THURSDAY, JUNE 3, 2010 - 3:00 P.M.
Beginning Resolution No. RA 2010-
CALL TO ORDER
Roll Call:
Agency Board Members: Adolph, Franklin, Henderson, Sniff, and Chairperson Evans
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 2010-2011 PRELIMINARY BUDGET.
A. MINUTE ORDER ACTION
Redevelopment Agency Agenda 1 June 3, 2010
ADJOURNMENT
The next regular meeting of the Redevelopment Agency will be held on June 15,
2010, 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 adjourned meeting
of June 3, 2010, 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 May 28, 2010.
DATED: ay 28, 2010
VERONICA J. NTECINO, 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 3, 2010
COUNCIL/RDA MEETING DATE: June 3, 2010 AGENDA CATEGORY:
ITEM TITLE: Consideration of Fiscal Year 2010-201 1
Preliminary Budget
RECOMMENDATION:
BUSINESS SESSION:
CONSENT CALENDAR:
STUDY SESSION:
PUBLIC HEARING:
Adopt the Fiscal Year 2010-2011 Preliminary Budget and direct staff to prepare a
Fiscal Year 2010-2011 Final Budget for the July 6, 2010 La Quinta Redevelopment
Agency Meeting.
FISCAL IMPLICATIONS:
All Preliminary Fiscal Year 2010-201 1 revenues, operational appropriations and debt
service funding are included in this Preliminary Budget. The Fiscal Year 2010-201 1
budget totals $92,512,002 in appropriations and transfers of which $56,717,242 is
budgeted from PA 1 and $35,794,760 is budgeted from PA 2, and $91,796,927 in
estimated revenues and transfers of which $59,235,334 is budgeted from PA 1 and
$32,561,593 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 2010-2011, the debt service budget for PA 1 is 544,177,522 and
530,068,262 for PA 2 as reflected on Page C-1 of the FY 2010-2011 Budget. The
following chart is a breakdown of the major expenditure categories:
Debt Service
Project Area Original Budget Increase
Purpose 1 2 FY 2010/2011 FY 2009/2010 (Decrease)
Contract Services $ 484,400 $ 255,100 $ 739,500 $ 776,200 $ (36,700)
Debt Service:
Tax Allocation Bonds
City of La Quinta Interest on Advances
Pass Through Payments to Others
10,271,435
1,720,000
22,738,549
418,272
1,656,500
23,786,397
10,689,707
3,376,500
46,524,946
10,698,612
2,676,528
43,976,002
(8,905)
699,972
2,548,944
Subtotal 34,729,984 25,861,169 60,591,153 57,351,142 3,240,017
Transfers:
Capital Projects Fund
Financing Authority-2004 Housing Bonds
5,000,000
3,963,138
2,000,000
1,951,993
7,000,000
5,915,131
10,000,000
5,913,331
(3,000,000)
1,800
Subtotal 8,963,138 3,951,993 12,915,131 15,913,331 (2,998,200)
Total $ 44,177,522 $ 30,068,262 $ 74,245,784 $ 74,040,673 $ 205,111
Contract Services
Contract services consist of professional services for audit, fiscal agent, and property
tax administration. A decrease of 536,700 in County of Riverside Administration fees
for FY 2010-201 1 is projected based upon lower tax increment projections.
Tax Allocation Bonds (TABS)
During FY 2009-2010, no TABS were issued. Debt service payments remained at
510.7 million in FY 2009/2010 and in FY 2010-2011.
City of La Quinta Interest on Advances
The City of La Quinta General Fund has advanced 541.4 million to the Agency PA 1
and 2 to accelerate capital improvement projects. Interest on these advances ranges
from 7%-10% with 53,376,500 due in FY 2010-201 1 . Repayment of the principal is
scheduled to begin for PA 1 in Fiscal Year 2030-/2031 and end in Fiscal Year 2033-
2034and for PA 2 principal payments are scheduled to begin for the 10% advances in
FY 2035/2036 and end in Fiscal Year 2038-2039 and for the 7% advances principal
advances may begin as early as Fiscal Year 2011-2012 and end in Fiscal Year 2018-
2019.
Pass Through Payments to Others
The following chart lists the Pass Through payments to Others for FY 2010-2011
which increased by 52,548,944 from the previous fiscal year:
Project Area Odginal Budget Increase
Agency 1 2 FY 10/11 FY 09/10 (Decrease)
County of Riverside,Library,Fire $ 16,689,783 $ 9,492,056 $ 26,161,839 $ 27,869,494 $ (1,707,655)
Ciry of La Ouinta 226,589 226,589 226,589
Desert Sands USD 2,857,330 5,156,556 8,013,886 8,367,018 (353,132)
County Superintendent of Schools 167,948 581,868 749,816 764,519 (14,703)
Desert Community College 755,389 1,072,332 1,827,721 1,916,146 (88,425)
Mosquito Abatement District 549,850 390,142 939,992 997,736 (57,744)
Coachella Valley Water District 593,582 2,095,617 2,689,199 2,779,928 (90,729)
Desert Recreation District 84,967 147,139 232,106 237,049 (4,943)
Coachella Valley Unified School District 817,722 - 817,722 801,688 16,034
Coachella Valley Resource Conservation District 1,445 1,445 1,493 (48)
Supplemental Etluration Relief Augmentation Funtl - 4,850,687 4,850,687 - 4,850,687
Coachella Valley Public Cemetary 13,944 - 13,944 74,342 (398)
$ 22,738,549 $ 23,786,397 $ 46,524,946 $ 43,976,002 $ 2,548,944
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. A decrease of 52,301,743 in pass through payments anticipated
due to a forecasted 8.5 % decrease in PA No. 1 tax increment property tax collections
and 1.7% decrease in PA No. 2 tax increment property taxes.
A Supplemental Educational Relief Augmentation Fund (SERAF) payment in the amount
of 54,850,687 from the PA 2 Debt Service Fund to the State of California has been
budgeted for in FY 2010-201 1.
Transfers Out -Capital Projects Fund
The Fiscal Year 2010-201 1 preliminary budget contains a 55 million transfer from Debt
Service PA 1 to the Capital Project PA 1 Fund for future Capital Projects and a 52
million transfer from Debt Service PA 2 to the Capital Project PA 2 Fund. Staff is
proposing these transfers in PA 1 to fund 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 is proposing the PA 2 transfers to fund the current year's budgeted Capital
Projects.
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 15S and
March 151. The final payment is scheduled to be made in Fiscal Year 2034-2035. To
fund the debt service payment of the 2004 Local Agency Revenue Bonds, the PA 1
Debt Service fund will transfer 53,963,138 to the La Quinta Financing Authority Debt
Service Fund and PA 2 debt service fund will transfer an additional S 1,951,993 to the
La Quinta Financing Authority Debt Service Fund.
CAPITAL PROJECT FUNDS
For Fiscal Year 2010-201 1, the capital project budget for PA 1 is 54,147,638 and
51,460,154 for PA 2 as reflected on C-1 of the FY 2010-2011 budget.
The following table lists the Capital Projects that are included in this year's budget as
outlined in H-1
Project Area
Capital Projects 1 2 FY 2010/2011
Washington StreeVl-10 Interchange Improvements $ 50,000 $ - $ 50,000
Village Land Acquisition $ 3,900,000 3,900,000
Sidewalks -Various Locations - 25,000 25,000
Handicap Access Ramps -Various Locations - 10,000 10,000
Ave 50/Park Ave Drainage Modifications - 171,079 171,079
MiraFlores Retention Basin Modifications - 212,325 212,325
Washington St Dual Left at Ave 48 - 333,763 333,763
Hwy 111 Dedicated Right Turn at Washington Street - 264,277 264,277
Ahmanson Drive Street abnd Drainage Improvements 142,333 - 142,333
SilverRock Resort Parking Lot Drainage Modifications 55,305 - 55,305
Washington St Drainage Improvements -Phase 2 - 313,296 313,296
Washington St Dedicated Right Turn at Eisenhower Dr. - 130,414 130,414
Total $ 4,147,638 $ 1,460,154 $ 5,607,792
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 2010-201 1, the low and moderate housing budget for PA 1 is
57,303,389 and 54,056,883 for PA 2 as reflected on Page C-1 of the FY 2010-201 1
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, 51,350,000 was set aside for foreclosure acquisitions. A transfer of
53,963,138.will be made to the Debt Service 1 Fund to pay a portion of the 2004
Local Agency Bond debt service and 5475,796 to pay for an 18.50% portion of the
1994 Tax Allocation Bonds. Another transfer of 5192,750 is being requested to be
made to the Housing Authority to fund its housing activities. The balance is used to
reimburse the General Fund for its services and for professional consultant and legal
services.
In PA 2, S 1,951,993 will be transferred to the Debt Service 2 Fund to pay a portion of
the 2004 Local Agency Bond, 5450,000 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.
REVENUES
The total revenue for the Redevelopment Agency for FY 2010-201 1 is estimated to be
578.4 million, of which tax increment totals over 577.4 million as detailed on the
following chart:
Project Area 1
Capital Low/Moderate 2004 Housing FY 2010/2011 FY 2009/2010 Increase
Revenue Type Debt Service Projects Income Bond Total Total (Decrease)
Tax Increment $ 39,648,800 $ 9,912,200 $ 49,561,000 $ 54,169,600 $ (4,608,600)
Interest - 38,600 46,800 85,400 305,900 (220,500)
LD Rental Program - 225,000 (225,000)
Home Sale Proceeds 150,000 150,000 150,000
Sale of Land
Total $ 39,648,800 $ 38,600 $ 10,109,000 $ - $ 49,796,400 $ 54,850,500 $ (5,054,100)
Project Area 2
Capital Low/Moderate 2004 Housing FV 2010/2011 FY 2009/2010 Increase
Revenue Type Debt Service Projects Income Bond Total Total (Decrease)
Tax Increment $ 22,293,800 $ 5,573,400 $ 27,867,200 $ 28,339,800 $ (472,600)
Interest - 11,100 53,300 8,700 73,100 367,000 (293,900)
LD Rental Program 669,300 669,300 669,300
Home Sale Proceeds -
Sale of land
Total $ .22,293,800 $ 11,100 $ 6,296,000 $ 8,700 $ 28,609,600 $ 29,376,100 $ (766,500)
Project Areasl8 2
Capital Low/Moderate 2004 Housing FY 2010/2011 FY 2009/2010 Increase
Revenue Type Debt Service Projects Income Bond Total To[al (Decrease)
Tax Increment $ 61,942,600 $ - $ 15,465,600 $ - $ 77,428,200 $ 82,509,400 $ (5,081,200)
Interest - 49,700 100,100 8,700 158,500 672,900 (514,400)
LD Rental Program - 669,300 669,300 894,300 (225,000)
Home Sale Proceeds - 150,000 - 150,000 150,000
Sale of Land - -
Total $ 61,942,600 $ 49,700 $ 16,405,000 $ 8,700 $ 78,406,000 $ 84,226,600 $ (5,820,600)
Major changes from last year include a reduction of 55.08 million in tax increment
property taxes.
FINDINGS AND ALTERNATIVES:
Staff is requesting:
1) Review and comment on the Fiscal Year 2010-201 1 La Quinta Redevelopment
Agency Preliminary Budget and provide direction regarding any proposed
changes to the document; and
2) Approval of the Fiscal Year 2010-201 1 Fiscal Year La Quinta Redevelopment
Agency Preliminary Budget as amended at the June 1, 2010, La Quinta
Redevelopment Agency Meeting. (Any approved changes by the Agency to be
incorporated into the Final Budget for adoption on July 6, 2010.)
Respectfully submitted,
~~~
John M. Falconer; Finance Director
Approved for submission by:
. ~ ~
Thomas P. Genovese, Executive Director