2005 AGN AUG 02 I20 - Laserfiche WebLink

Browse Search

ITEM #20 REDEVELOPMENT AGENCY FOR THE CITY OF COLTON For the Redevelopment Agency Board Meeting of August 2, 2005 TO: Honorable Chairperson and Boardmembers FROM: Candace E. Cassel, Redevelopment Directo SUBJECT: Consideration and Approval of Agency Resolution No. 845 Adopting the Fiscal Year 2005/06 Budget. DATE: July 21, 2005 BACKGROUND 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. On March 8 and April 26, 2005, the City Council and Agency Board held workshops to discuss the City's economic development activities and Agency's 2005/06 Goals and Objectives and prior year's accomplishments, respectively (attached as Exhibit "A"). On May 24, 2005, the Agency's 2005/06 projected revenues were presented for review. On July 25, 2005, the Agency Board conducted another workshop to discuss the Agency's 2005/06 expenditures. DISCUSSION/ANALYSIS The Redevelopment Agency offers for consideration the budget for the 2005/06 fiscal year. The proposed budget is consistent with the Agency's current Implementation Plan. The following points draw attention to important issues related to the budget: Several of the Agency's project areas are nearing the end of their lifespan and are no longer able to incur debt (Downtown I and II, Cooley Ranch and Santa Ana River) to fund any new redevelopment activity. Discussions are ongoing between staff, legal counsel and the auditors about the definition of "debt" and what it includes or excludes. Taking a conservative approach, the 2005/06 budget has been prepared without any transfer from these project areas into the Administrative Fund, with the exception of administrative costs that are associated with debt that existed in the respective project areas, prior to reaching the deadline. Depending upon the final outcome of the discussions with the auditors and legal counsel, adjustments may need to be made to the 2004/05 budget as well as consideration given to entering into loan agreements between the City and Agency, allowing the remaining project areas (Rancho Mill, West Valley and Mt. Vernon) to fund administrative costs after passing the deadlines to incur debt. • The Agency was able to make a substantial number of its delinquent passthrough payments. Outstanding passthroughs due include: payments for the 2004/05 fiscal R:1AdministrationWeetings12005 MEETINGS\August 2, 20051Budget Staff Report 2005-06.doc