REDEVELOPMENT AGENCY AGENDA ITEM NO.
Meeting Date: December 11, 2001
Subject/Title: Approve a resolution authorizing repayment to City of financial assistance
Submitted by: Gina Rozenski, Redevelopment Analyst
Approved by: John Stevenson, Executive Director
Authorize staff to take necessary steps to repay to the City enterprises all borrowed sums and loans made to the Agency using 2001 Tax Allocation Bond Proceeds.
Several actions were taken by the Agency in the past to accept loans from the City to fund the Agency’s routine operating expenses and for capital improvement projects within the redevelopment project areas, notably the Balfour Road and Garin Parkway roadway improvements, widening Brentwood Boulevard near Sycamore and Spruce Streets, and North Brentwood water and sewer projects. For example, by Resolution No. RA-24, the Agency accepted a loan in the amount of $322,000 from the City Water Facility Fee Fund for acquisition and related construction expenses for the Brentwood Boulevard Parking Lot, CIP Project No. 336-3125. Several loans contained terms which included the payment of interest on the unpaid principal balance of the loan.
In an effort to leverage future tax increment revenues, on September 11, 2001, the Agency approved resolutions authorizing the execution and issuance of the Redevelopment Agency of the City of Brentwood Merged Redevelopment Project Area Tax Allocation Bonds, Series, 2001, to finance certain public capital improvements and to refund the outstanding Brentwood Redevelopment Project Tax Allocation Bonds, Series A.
It is a requirement of California Redevelopment Law (CRL) that a redevelopment agency show sufficient loans, advances and indebtedness as a prerequisite to receive its annual tax increment revenues from the county auditor. In an effort to substantiate our entitlement to the annual tax increment revenues, the Agency has borrowed funds and accepted loans from the City for both routine annual operating expenses and for special redevelopment projects. In general, this is a common practice among redevelopment agencies. However, the Agency now has sufficient debt, in the form of the bond debt, to establish its entitlement to annual tax increment revenues, and is in a position to repay its outstanding loans from the bond proceeds to the City’s enterprise funds.
As a result of the 2001 bond issuance, the Agency currently possesses a balance of bond proceeds of $16,341,937 for funding multiple redevelopment projects within the project areas, if consistent with the goals and objectives of the redevelopment plans and implementation plan. During the Agency’s workshop of April 2001 and at the time the Agency authorized bond issuance in September 2001, the Agency and staff identified the possibility of using bond proceeds to repay the loans from the City’s enterprises. As of November 30, 2001, the outstanding loans are as follows:
Borrowed From Principal Interest Total Outstanding
Water Facility Fee Fund $322,000 -0- $322,000
Water Facility Fee Fund 564,284 $8,224 $572,508
Parks & Trails Fee Fund 512,251 7,465 519,716
Roadway Facility Fee Fund 282,444 4,116 286,560
Totals $1,680,979 $19,805 $1,700,784
If approved by the Agency, the bonds will be reduced by $1,700,784, which represents the total outstanding loans made by the City enterprises to the Agency, and will result in a remaining balance of bond proceeds of $14,641,153.
4 Loan Reports
RESOLUTION NO. RA-
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD AUTHORIZING THE REPAYMENT TO CITY ENTERPRISES OF LOANS MADE TO THE REDEVELOPMENT AGENCY FOR VARIOUS ROUTINE EXPENSES AND SPECIAL PROJECTS AND DIRECTING THE EXECUTIVE DIRECTOR TO TRANSFER FUNDS FROM THE REDEVELOPMENT AGENCY OF CITY OF BRENTWOOD MERGED REDEVELOPMENT PROJECT AREA TAX ALLOCATION BONDS, SERIES 2001, TO THE CITY ENTERPRISES IN SUMS EQUAL TO THE OUTSTANDING LOAN AMOUNTS
WHEREAS, the Redevelopment Agency has accepted loans from the City Enterprises to fund the Agency’s routine operating expenses and for capital improvement projects within the redevelopment project areas; and
WHEREAS, several of the loans contained terms which included the payment of interest on the unpaid principal balance of the loans; and
WHEREAS, in September 2001, the Redevelopment Agency approved the execution and issuance of Redevelopment Agency of the City of Brentwood Merged Redevelopment Project Area Tax Allocation Bonds, Series 2001, hereinafter referred to “TAB 2001”, to finance certain public capital improvements and to refund the outstanding Brentwood Redevelopment Project Tax Allocation Bonds, Series A; and
WHEREAS, the Redevelopment Agency wishes to transfer $1,700,784 from the TAB 2001 to the City Enterprises, which represents the current outstanding principal and interest amounts owed by the Redevelopment Agency to the City Enterprises thereby repaying in full the borrowed sums.
NOW, THEREFORE BE IT RESOLVED that the Redevelopment Agency authorizes the repayment to the City Enterprises of loans made to the Redevelopment Agency for various routine expenses and special projects, and directs the Executive Director to transfer $1,700,784 from the Redevelopment Agency of City of Brentwood Merged Redevelopment Project Area Tax Allocation Bonds, Series 2001, to the City Enterprises, thereby repaying in full the borrowed sums.
PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the ______________________ 2001 by the following vote:
Michael A. McPoland, Sr.
Karen Diaz, CMC