2004 AGN NOV 02 I12 - Laserfiche WebLink

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REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the City Council and Redevelopment Agency Board Meeting of November 2, 2004 TO: Honorable Mayor and City Councilmembers Honorable Chairperson and Boardmembers FROM: Candace E. Cassel, Redevelopment Manag SUBJECT: Consideration and Approval of City Resolution a d Agency Resolution No. 838 Amending the City and Agency 2004/05 Budgets. DATE: October 20, 2004 Item #12 BACKGROUND/DISCUSSION On September 16, 2003, the City Council and Redevelopment Agency Board adopted Resolution Nos. R-100-03 and 819, respectively, authorizing a loan between the City of Colton and the Agency in the amount of $500,000 for the Agency to proceed with specific redevelopment activities in the Ranoo Mill Redevelopment Project Area. On April 6, 2004, the City Council and Agency Board,entered into a Construction Management Agreement for the construction of the public improvements identified and prioritized by the Citizens Advisory Committee. The City's Engineering Department has now finalized the schedule and is ready to begin the authorized infrastructure improvements. 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. On June 28, 2004, the City and Agency budgets were approved for the 2004/05 fiscal year. The $500,000 loan proceeds were received in the Rancho/Mill Debt Service Fund No. 872 but the Rancho/Mill CIP expenditures were budgeted in the Rancho/Mill CIP Fund No. 871. After budget adoption, staff realized that the $500,000 loan proceeds should have been budgeted as a transfer from the Rancho/Mill Debt Service Fund No. 872 to the CIP fund No. 871. Further, to ease in the administration of the timely payments to contractors for the public improvement projects, staff is requesting that funds. be transferred from the Agency's budget into the City's budget. Therefore, staff is requesting that the Rancho/Mill Debt Service Fund No. 872 be adjusted to reflect the transfer of $450,000 to the City's CIP fund No. 450 and a transfer of $50,000 to the Rancho/Mill Capital Projects Fund No. 871. The budget adjustments will have no impact on the projects to be completed as a result of the loan proceeds. FINANCIAL IMPACT The action will reduce the Agency's 04/05 budget for the Rancho/Mill Capital Project Fund No. 871 by $450,000 and increase the City's CIP Fund No. 450 by $450,000. The detail of the transfers are depicted below: R:\Administration\Meetings\2004 Meetings\November 2, 2004\Staff Report Rancho Mill $500K Budget Adjustment.doc