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Meeting Date: June 24, 2008

Subject/Title: Adopt Resolution to Amend the Agency’s 2008/09 Budget and Authorize Expenditures for Fiscal Year 2008/09

Prepared by: Gina Rozenski, Redevelopment and Housing Manager

Submitted by: Casey McCann, Interim Community Development Director

Adopt Resolution amending the Agency’s 2008/09 Budget and Authorize Expenditures for Fiscal Year 2008/09.

The 2007/08 and 2008/09 annual budgets for the Brentwood Redevelopment Agency were approved by the Agency on June 26, 2007, by Resolution No. RA-128.

The financial status of the Brentwood Redevelopment Agency is sound. The Redevelopment Agency’s projected Fund Balance as of June 30, 2008 is approximately $17,921,700. Of this amount, the remaining 2001 Tax Allocation Bond proceeds account for approximately $1,600,000, tax increment and land sales fund balance for approximately $13,666,700 and the Housing Set-Aside Fund for approximately $2,655,000.

The Agency’s financial structure comprises of three major funds:
1. The Administration and Project Fund is the fund from which the Agency’s general operational expenses, redevelopment projects, and capital improvement projects are paid.
2. The Debt Service Fund is reserved for receipt of 80% of tax increment revenues. After payment of annual bond debt and mandatory pass-through agreements with other public agencies, tax increment funds are transferred quarterly from Debt Service Fund to Administration/Project Fund in amounts sufficient to cover general operations and projects.
3. The Housing Set-Aside Fund represents receipt of 20% of tax increment revenues to implement the mandate of creating and preserving affordable housing within the Merged Project Areas and within the City boundaries.

Funding of the Agency’s administrative, redevelopment projects and programs, capital improvement projects, and housing program expenses is dependent on tax increment revenues, land sale proceeds, interest on investments and, most importantly, bond proceeds that are strictly used for redevelopment projects.

Despite the turmoil in the housing market, the Agency’s assessed values increased by 12.3% from 2006/07 to 2007/08, and secured property tax increment revenue increased by 13.1% for the 07/08 fiscal year. However, supplemental property tax revenue decreased from $1,012,264 to $513,781 (49%), leading to an overall net increase of property tax revenue of 4.4% for the 2007/08 fiscal year. Following the 13.1% increase for the 07/08 fiscal year, staff believes that our secured property tax increment revenue will grow by just 3.5% in the 2008/09 fiscal year. Staff is expecting supplemental property tax revenue to remain unchanged or slightly decrease for the 2008/09 fiscal year.

Recommended adjustments to the 2008/09 Agency budget for the three major funds are as follows:

Administration and Project Fund 301 Revenues Expenses
Original Amended Original Amended
Investment Income 327,000 327,000
Land Sale Proceeds 814,790 814,790
Transfer from Debt Service Fund 303 1,532,611 3,512,762
Other Income (rental from Precision Cab) 105,400 -0-
Bond Proceeds (directly related to 2008/09 Capital Improvement Program expenditures) 14,402,000 6,024,418
Salaries and Benefits 432,317 643,361
Supplies and Services 1,075,128 937,044
Internal Services 24,076 37,903
Capital Outlay and Improvements 15,405,000 15,528,988
Totals 17,181,841 10,678,970 16,936,521 17,147,296

Debt Service Fund 303 Revenues Expenses
Original Amended Original Amended
Tax Increment 5,600,000 6,270,000
Investment Income 441,000 441,000
Supplies and Services 2,013,887 917,706
Capital Outlay and Improvements 4,082,611 6,362,762
Totals 6,041,000 6,711,000 6,096,498 7,280,468

Housing Set-Aside Fund 302 Revenues Expenses
Original Amended Original Amended
Tax Increment 1,400,000 1,444,787
Investment Income 154,553 140,000
Salaries and Benefits 84,124 152,199
Supplies and Services 1,760,719 1,080,794
Internal Services 5,313 8,829
Capital Outlay & Improvements 0 50,000
Totals 1,554,553 1,584,787 1,850,156 1,291,822

Total Agency Funds Revenues Expenses
Original Amended Original Amended
Totals 24,777,394 18,974,757 24,883,175 25,719,586

The existing fund balance of $17,921,700, the anticipated tax increment revenues in 2008/09 of $7,714,787, bond proceeds of $6,024,418, anticipated interest earnings in 2008/09 of $908,000, and land sales of $814,790 will be sufficient to fund the Redevelopment Agency’s amended 2008/09 expenses of $25,719,586.




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 Administration and Project Fund, Low/Moderate Housing Fund and Debt Service Fund are stable and healthy; 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 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.


Section 1. The Redevelopment Agency of the City of Brentwood 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 housing programs and activities within the City of Brentwood authorized under Health & Safety Code Section 33334.2.

Section 2. The Redevelopment Agency of the City of Brentwood hereby adopts the amendments to its 2008-09 Budget in the amount of $17,147,296 of expenses in Fund 301, $7,280,468 of expenses for Fund 303, and $1,291,822 of expenses for Fund 302, and authorizes expenditures for Fiscal Year 2008-09.

PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 24th day of June 2008 by the following vote:

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