|REDEVELOPMENT AGENCY AGENDA
ITEM NO. 2
Meeting Date: September 14, 2004
Subject/Title: Approve a resolution to amend the Redevelopment Agency’s 2004-2005 Budget in the amount of $80,000 for the addition of a Redevelopment Analyst
Prepared by: Gina Rozenski, Redevelopment Manager
Submitted by: Howard Sword, Director of Economic Development
Approve a resolution to amend the Redevelopment Agency’s 2004-2005 Budget in the amount of $80,000 for the addition of a Redevelopment Analyst.
On June 8, 2004, the Redevelopment Agency approved Resolution No. RA-83 to adopt its 2004-2005 Budget and authorized expenditures for Fiscal Year 2004-2005.
After the adoption of its 2004-05 budget by the Redevelopment Agency, the Director of Economic Development accepted the assignment of directing the Community Development Department. The Economic Development and Community Development Departments merged. The restructuring of the Department’s divisions, as described in a Council staff report earlier this evening, and the re-allocation of time previously spent by the Director on redevelopment projects and programs, has resulted in a shift of the Redevelopment Manager’s priorities.
Further, it was anticipated that the addition of a City Housing Manager would alleviate the time spent by the Redevelopment Manager on redevelopment housing projects and programs. The time saved would then allow the Redevelopment Manager to concentrate on projects that facilitate commercial, retail, and industrial developments and infrastructure improvements within the Merged Project Areas. These types of projects are critical to the Agency in terms of creating new jobs, increasing sales tax, and generating new tax increment. Increased tax increment provides the foundation to issue future bonds, which is the primary financial mechanism to fund new redevelopment projects. However, the Housing Manager’s management and implementation of the City’s Affordable Housing Program has proven to be all encompassing due to the comprehensive nature of the City’s program. Consequently, the Redevelopment Manager continues to spend a significant amount of time on redevelopment housing projects.
Redevelopment Law requires that agencies spend their 20% Housing Set-Aside Funds or lose them. Worse yet, not spending the Housing Fund (a condition known as “excess surplus”) will jeopardize the 80% Non-Housing Fund (known as the “death penalty”). To avoid the “excess surplus” and “death penalty” situations, the Redevelopment Agency staff currently spends about 75% of their time on the 20% Housing Set-Aside functions, duties and projects. As a result, the Redevelopment Agency’s goals and objectives of expanding commercial, retail and industrial opportunities; developing business assistance programs; assisting in preparation of planning documents such as specific plans; improving infrastructure; and pursuing long-term development growth within the Merged Redevelopment Project Areas are delayed.
Based on existing zoning densities, another 700 ± residential units can be built in the Merged Redevelopment Project Areas, all of which will require the management and implementation of the redevelopment requirements on new housing. Furthermore, several of the existing residential areas within the Merged Redevelopment Project Areas continue to exhibit declining and deteriorating housing stock.
These new and existing residential developments require on-going discussions and negotiations with developers and owners, implementation of housing production requirement and management of affordable housing agreements. As part of the upcoming 5-Year Implementation Plan, staff is developing a measurable strategy and plan that, among other issues, shall address how redevelopment resources will be spent in order to meet affordable housing requirements.
The labyrinthine network of regulations and funding mechanisms for redevelopment housing projects not only demands continual oversight and management of housing projects that typically take one to three years to mature. Staff recommends that in order to adequately implement and manage these redevelopment housing policies, programs and projects, additional staff is needed.
The Redevelopment Analyst is the advanced journey-level, professional classification that performs highly complex work in the field of redevelopment and housing, and requires experience, skill and knowledge of a specific body of law, regulations and practices.
A redevelopment agency is authorized to appoint and employ officers, employees, consultants and legal counsel. As such, staff employed for the purpose of managing a redevelopment agency’s housing programs and projects can be paid from the 20% Low and Moderate Housing Fund, thereby relieving the City’s General Fund of any financial responsibility.
The Agency anticipates revenues of $760,000 of Housing Funds during the 2004/05 fiscal year. This revenue will increase exponentially in the future as our tax increment increases. The Housing Fund is financially sound and can afford to spend 15% - 20% of its annual revenues on staffing.
The existing position of Redevelopment Analyst is currently vacant, and has a salary range of $78,400 to $95,300 annually. Staff anticipates that seven months of salary plus benefits will cost the Agency approximately $80,000 for 2004/05. This cost shall be shared between the Agency’s Housing and Administration Funds.
RESOLUTION NO. RA-_____
A RESOLUTION OF THE REDEVELPMENT AGENCY OF THE CITY OF BRENTWOOD AMENDING ITS 2004-05 BUDGET TO FUND A REDEVELOPMENT ANALYST POSITION
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.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
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 programs and activities authorized under Health & Safety Code Section 33334.2.
Section 2. The Redevelopment Agency of the City of Brentwood hereby adopts the amendment to its 2004-05 Budget in the amount of $80,000 to fund a Redevelopment Analyst position.
PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 14th day of September 2004 by the following vote:
Karen Diaz, CMC
City of Brentwood City Council
150 City Park Way
Brentwood, CA 94513
Fax (925) 516-5441