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. ___. .___ . _:.. __ _... ........ .... .. . .. .. . .. . . .. _...... . ..... .... . . <br />February 3, I999 <br />Honorable Chairman and Board Members <br />Colton Redevelopment Agency <br />Colton, California <br />Subject: Mid Yeaz Budget Review/Agency Financial Plan <br />Dear Chairman Sanders and Boardmembers: <br />The Redeveflopment Agency has a number of significant financial challenges <br />ahead to restore order and predictability to its operations. Over the Iast year, <br />a significant effort has been undertaken to develop a financial plan, which <br />improves the Agency's cashflo�v posture. During the last fiscal year, the Agency <br />refunded $44 million in debt and reduced its interest rate by over 2%, savings of <br />over $800,000 per year. Additional steps aze needed to control expenditures so <br />that the Agency can continue to produce a balanced budget each year while under- <br />taking new econornic development and housing programs beneficial to the <br />community. <br />Agency staff have developed a comprehensive financial analysis of its long-term <br />financial condition. This analysis of necessity relies upon a series of assumptions <br />regarding re�enues and expenditures. The plan is continuously updated as new <br />information becomes available and it serves as a major guidepost for assuming <br />new project obligations. This plan is the foundation for the mid-year budget <br />review. <br />BACKGROUND <br />The mid-yeaz budget review consists of a comprehensive evaluation of the <br />Agency's cashflow projections. The evaluation considers the seven project areas, <br />the low/mod housing fund, and the Administration account. Since the Agency has <br />entered into numerous long-term debt obligations, it is essential to construct a <br />multi-yeaz assessment of resources and expenditures. <br />For each project area, the following documents aze provided: <br />l. <br />2. <br />3. <br />4. <br />5. <br />6. <br />Exhibit A <br />Exhibit B <br />Exhibit C <br />E�ibit D <br />Exhibit E <br />Exhibit F <br />-- Ten Yeaz Cashflow Forecast <br />-- Ten Yeaz Tax Increment Forecast <br />-- Historical and Projected AV Trends <br />-- Ten Year Debt Schedule <br />-- Sales Tax Debt Schedules (as applicable) <br />-- Budget Variance Report <br />REDEVELOPMENT <br />AGENCY ' <br />552 N. lA CADENq DRIVE <br />COLTON, CAL�ORNW 92324 <br />(904) 37o-5167 <br />(909) 783-2656 FAX <br />