CITY COUNCIL AGENDA ITEM NO. 28
Meeting Date: June 12, 2001
Subject/Title: Passage of a resolution adopting the 2001/02 Brentwood Redevelopment Agency Budget
Submitted by: Pam Ehler, Director of Finance and Information Systems
Approved by: Jon Elam, City Manager
Passage of a resolution adopting the Fiscal Year 2001/02 Budget for the Redevelopment Agency and accepting a loan from the City of Brentwood General Fund to the Redevelopment Administrative Funds in the amount of $465,000 to cover administrative expenses of the Agency.
The Agency budget provides information for the two redevelopment project areas know as the Brentwood Downtown Redevelopment Project and the North Brentwood Redevelopment Project. These project areas were merged last year but for budgeting purposes have been kept separate. The budget summarizes revenue projections and expenditures for each project area in the four funds: the Debt Service, Low and Moderate Housing, Capital Project and the Administrative Fund.
The combined 2001/02 Budget for the Redevelopment Agency totals $3,017,558 of which $2,091,870 is budgeted for debt service.
The Redevelopment Resolution will approve the proposed budget and accept the Administrative Loan, in the amount of $465,000 ($225,000 to the Downtown Project and $240,000 to the North Project Area).
Since the majority of the tax increment revenues are received in December, it is necessary for the City to advance a loan, creating new debt for the Agency providing sufficient funds to cover administrative expenses. No interest is proposed to be assessed by the City for the advance of these funds. It is anticipated that sufficient tax increment revenues will be received to repay this advance during the fiscal year.
The Agency has an obligation to make payments on bonded debt and to various taxing agencies resulting from tax share agreements entered into at the time the North Brentwood Redevelopment Project Area was formed. The amount owed for the tax sharing agreement obligations for fiscal year 2001/02 is estimated to be $135,000.
Pursuant to Section 33611 of the CCRL, the Agency is required to submit annually to the legislative body (City Council) a budget for the administrative expenses of the Agency. Therefore, it is herein recommended the Executive Director be directed to transmit this budget to the City Council (refer to related Council item on this agenda).
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF BRENTWOOD ADOPTING THE FISCAL YEAR 2001/02 BUDGET AND ACCEPTING A LOAN FROM THE CITY OF BRENTWOOD IN THE AMOUNT OF $465,000 TO THE REDEVELOPMENT AGENCY ADMINISTRATIVE FUNDS
WHEREAS, The City Council of the City of Brentwood, authorized the advance of funds to the Redevelopment Administrative fund as a loan for the implementation of the Fiscal Year 2001/02 Budget for the Redevelopment Agency of the city of Brentwood.
Brentwood (“Downtown”) Redevelopment Project $ 225,000
North Brentwood Redevelopment Project $ 240,000
TOTAL 2001/02 Administrative Loan $ 465,000
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF BRENTWOOD, DOES RESOLVE AS FOLLOWS:
Section 1. The Agency board hereby adopts the Fiscal Year 2001/02 Budget for the Redevelopment Agency of the City of Brentwood.
Section 2. The Agency Board hereby accepts the 2001/02 Administrative Loan, in the amount as herein specified, to the Redevelopment Administrative Funds from the City of Brentwood and agrees to be bound by the terms of the resolution with respect to the repayment thereof, including, without limitation, the payment of interest (if any) on the unpaid principal balance of said loan.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Brentwood at a regular meeting held June 12, 2001 by the following vote:
Michael A. McPoland, Sr.
Karen Diaz, CMC