AGENDA ITEM NO. 27
Meeting Date: June 26, 2007
Subject/Title: Adopt a Resolution to Adopt the Redevelopment Agency of the
City of Brentwood’s 2007/08 and 2008/09 Budget and Authorize Expenditures
for Fiscal Year 2007/08.
Prepared by: Gina Rozenski, Redevelopment Manager
Submitted by: Howard Sword, Community Development Director
Pam Ehler, Agency Treasurer
Donna Landeros, Executive Director
Adopt Resolution adopting the Redevelopment Agency of the City of
Brentwood’s 2007/08 and 2008/09 Budget and authorizing expenditures for
fiscal year 2007/08.
The 2005/06 and 2006/07 annual budgets for the Brentwood Redevelopment
Agency were approved by the Agency on June 14, 2005, by Resolution No.
The Agency’s 2006/07 budget was amended on June 26, 2006, by Resolution No.
RA-112. Budgetary amendments included new capital improvement projects,
continued support of Specific Plan preparation and funding for the new
Health and Safety Grant Program.
The financial status of the Brentwood Redevelopment Agency is sound. The
Redevelopment Agency’s projected Fund Balance as of June 30, 2007 is
approximately $17,260,000. Of this amount, the Administration Fund accounts
for $9,500,000, Debt Service Fund for $5,500,000, and the Housing Fund for
The Administration Fund is the fund from which the majority of Agency’s
administrative, project, capital improvements, and general operational
expenses are paid. The two other funds, Debt Service and Housing Fund, are
reserved for those specific purposes.
After revenues and expenses during the next two-year period, the Agency’s
projected fund balance as of June 30, 2009, will be approximately
The attached budget presents the Agency’s revenue forecast. Property tax
increment revenues are projected to increase due to inflationary increases
of the Proposition 13-allowed 2% annual increase in property taxes, and due
to reassessments of properties resulting from ownership changes, new
construction and property improvements. Staff intentionally forecasted a
conservative 2% increase of tax increment for both 2007/08 and 2008/09;
$6,900,000 and $7,000,000 respectively. As mandated by Community
Redevelopment Law, tax increment revenues are split by depositing 80% into
the Agency’s Debt Service Fund and 20% deposited into the Agency’s Housing
The Agency anticipates raising approximately $15,000,000 in bonds to fund
the potential development of three parking structures for the Downtown and
Civic Center, and improving the aging infrastructure and installing new
streetscape in the Downtown.
Land sale revenues from the 2nd and Central remnant parcel for a 16-unit
apartment project is anticipated in 2007/08 in the amount of $116,000; and
approximately $815,000 is expected from future land sales at Sunset
Industrial Complex. Interest income is projected at $1,800,000 over the
In summary, taking into account internal account transfers of $3,000,000,
the Agency expects total revenues of approximately $9,900,000 in 2007/08 and
$24,800,000 in 2008/09.
Debt Service (Fund 303) (80% of tax increment revenues)
Eighty percent of the tax increment revenues are deposited into the Debt
Service Fund to first pay bond indebtedness, and pass-through payments.
The Agency’s first obligation is the annual debt service payments on its
outstanding Tax Allocation Bonds issued in 2001, which runs about $1,370,000
yearly. The projected property tax increment revenue stream is more than
sufficient to continue to make these debt service payments.
The Agency’s second obligation from the Debt Service Fund is our annual
payments to other taxing agencies in accordance with our negotiated and
statutory pass-through agreements. Pass-through payments will increase due
to a step-up in negotiated payments and initiation of statutory payments for
both Project Areas. Pass-through payments are estimated at $1,800,000 for
2007/08 and $2,100,000 for 2008/09.
After bond debt and pass-through payments are paid, remaining tax increment
revenues are transferred to the Administration Fund as needed throughout the
year for administration and operational costs, estimated at approximately
$3,000,000 for the two-year budget period.
In summary, forecasted Debt Service expenses are $4,700,000 for 2007/08 and
$6,100,000 for 2008/09.
Non-Housing Program and Project Expenses (Fund 301)
Funding of the Agency’s administrative, project, and capital improvement
program expenses is dependent on excess property tax increment revenues,
interest on investments and, most importantly, bond proceeds that are
strictly used for redevelopment projects.
Approximately $21,000,000 of the Agency’s $35,600,000 two-year budget is
directly related to capital improvement projects identified by the Agency
Board and which are coordinated and identified in the City’s 2007-2012
Capital Improvement Program.
The upcoming redevelopment program objectives are to continue the
preparation of Brentwood Boulevard Specific Plan and associated
environmental study; implement the recommendations from the Downtown
Specific Plan including parking facilities, other community facilities,
streetscape and infrastructure improvements; create a Façade Improvement
Program for the Downtown; prepare the necessary analyses for an upcoming
bond issuance to position the Agency for future capital improvement
projects; pursue the development of the southeast corner of Oak Street and
Walnut Boulevard as a gateway development to the Downtown; prepare and adopt
the mid-term review of the Agency’s Implementation Plan; and to continue to
formulate and implement long-term strategies to expand commercial, retail
and industrial opportunities and job growth in the Merged Project Areas.
Housing Program and Project Expenses (Fund 302) (20% of tax increment
Twenty percent of the annual tax increment revenues are deposited directly
into the Housing Fund. The Housing Program objectives are to complete Mercy
Housing Villa Amador project; to implement the Health & Safety Grant Program
for emergency home repairs; acquire a Davis Camp parcel to eliminate a
serious declining condition and relocate the on-site tenants; and to
identify and develop other housing programs and projects to improve,
preserve and increase affordable housing inside the Redevelopment Project
Areas while monitoring housing fund expenditures to comply with age and
income target requirements.
The Agency anticipates financial participation of $3,000,000 in support of
affordable housing redevelopment goals and objectives during the next two
years, from the total Housing Program budget of $3,600,000.
2007/08 revenues of approximately $9,500,000, usage of the existing bond
proceeds of $2,200,000 and future bond proceeds of $460,000 for capital
improvements, and using $100,000 of the Housing Fund’s reserves to fund the
Agency’s significant contributions to affordable housing projects will be
sufficient to fund the projected 2007/08 administrative, project, capital
improvement, debt service and housing expenses of $10,800,000.
2008/09 revenues of approximately $10,400,000, usage of the existing bond
proceeds of $1,000,000 and future bond proceeds of $14,400,000 for capital
improvements, and using $100,000 of the Agency’s reserves will be sufficient
to fund the projected 2008/09 administrative, project, capital improvement,
debt service and housing expenses of $24,900,000.
The Redevelopment Agency’s projected Fund Balance as of June 30, 2007 is
approximately $17,260,000; the Fund Balance is projected at $16,460,000 as
of June 30, 2008, and $16,360,000 as of June 30, 2009.
Budget for Fiscal Years 2007/08 – 2008/09
RESOLUTION NO. RA-
A RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE CITY OF BRENTWOOD ADOPTING
ITS 2007/08 and 2008/09 BUDGET AND AUTHORIZING EXPENDITURES FOR FISCAL YEAR
WHEREAS, the Redevelopment Agency of the City of Brentwood (“Agency”) has
reviewed the financial condition of the Agency; and
WHEREAS, the Agency’s Merged Brentwood and North Brentwood Project Fund,
Debt Service Fund, and Low/Moderate Housing Fund are financially stable and
WHEREAS, the Agency desires to memorialize its expenditure approvals for
redevelopment projects and activities that will facilitate commercial,
retail, and industrial development programs, public improvements and
community facilities programs, and the assistance and participation in the
expansion and improvement of the supply of very low, low and moderate income
housing, while investing tax increment receipts and bond proceeds in
projects that will generate increased tax increment; and
WHEREAS, a duly noticed public hearing was held on June 26, 2007.
NOW, THEREFORE BE IT RESOLVED AS FOLLOWS:
Section 1. The Agency hereby finds and determines that the planning and
administrative expenses in the Low/Moderate Housing Fund are necessary for
the production, improvement, or preservation of very low, low and moderate
income housing, and for programs and activities authorized under Health &
Safety Code Section 33334.2.
Section 2. The Redevelopment Agency of the City of Brentwood hereby adopts
its 2007/08 and 2008/09 Budget and authorizes expenditures for Fiscal Year
PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of
Brentwood at a regular meeting held on the 26th day of June 2007 by the