2002 AGN AUG 06 I29 - Laserfiche WebLink

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Item #29 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the Redevelopment Agency and City Council Meeting of August 6, 2002 TO: Honorable Agency Chairperson and Boardmembers FROM: Candace Cassel, Redevelopment Manag r�j� �y SUBJECT: Consideration and Approval of Agency Resolution No. 804 Adopting the Fiscal Year 2002-2003 Operating Budget and Agency Resolution No. 805 Approving Promissory Notes. DATE: June 10, 2002 Backpround Section 33606 of the California Health and Safety Code requires that redevelopment agencies annually adopt a budget showing the proposed revenues, expenditures, goals and objectives for the coming year. It also requires a comparison of the goals from the prior year with actual accomplishments. Discussion/Analvsis The Redevelopment Agency offers for consideration the final year of its two-year budget for fiscal years 2001-02 and 2002-03. The proposed budget is consistent with the Agency's current Implementation Plan. The following points draw attentio� to impoRant issues related to the budget: On the Revenue side, property tax i�crements rose 1 S% from FY 2000-01 to FY 2001- 02, or from about $4,727,000 to $5,576,045. Tax increments for FY 2002-03 are expected to be slightly less (.5%) than the previous year. On the Expenditure side, the Agency budget includes an expense amounting to 4.5% of the expected gross tax increment revenue. This amount represents the California Redevelopment Association's best estimate of the projected State budget shift to ERAF to cover the State's deficit. The probability that this shift will be implemented has not been determined at this time. The impact of such a reduction in tax increment revenue could be as high as $250,000. . Outstanding Agency pass through obligations for special taxing districts have increased to $3,490,000. Of that amount, $2,188,000 (62%) is due to the San Bernardino Valley Municipal Water District (SBVMWD). However, $945,000 due SBVMWD is deferred, leaving $2,545,000 as total current obligations. . The Rancho Mediterrania project continues to generate deficits in both park operations and park development. Park operations expenses are projected to exceed revenues by about $239,000. The Low/Mod fund will loan Rancho Mediterrania Operations $450,000 to cover this projected deficit and a portion of the preexisting negative cash balance. An increase in monthly HOA dues coupled with less-than-projected asset sales is a major