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REDEVELOPMENT AGENCY AGENDA ITEM NO. 3

Meeting Date: January 11, 2005

Subject/Title: Approve Resolution amending the Agency’s 2004/05 Budget for mid-year budget adjustments.

Prepared by: Gina Rozenski, Redevelopment Manager

Submitted by: Howard Sword, Director of Community Development

RECOMMENDATION
Approve Resolution amending the Agency’s 2004/05 Budget for mid-year budget adjustments.

PREVIOUS ACTION
The 2003/04 and 2004/05 annual budgets for the Brentwood Redevelopment Agency were approved by the Agency on June 10, 2003, by Resolution No. RA-69.

The Agency’s 2004/05 budget was amended on June 8, 2004, by Resolution No. RA-83. Amendments included new capital improvement projects, a partial reduction of the Housing Manager’s salary/benefits from the Agency to the City, and an increase in pass-through payments to taxing agencies.

On September 14, 2004, the Agency approved an additional $80,000 for the position of Redevelopment Analyst by Resolution No. RA-87.

BACKGROUND
Financial Status

The financial status of the Brentwood Redevelopment Agency is sound. The Redevelopment Agency’s projected Fund Balance as of November 30, 2004 is approximately $12,840,000. Of this amount, the Tax Allocation Bond Proceeds account for approximately $9,550,000, and the Housing Fund accounts for approximately $800,000.

The Agency’s financial structure comprises of three major funds. The Administration and Project Fund is the fund from which the majority of Agency’s general operational expenses, redevelopment projects, and capital improvement projects are paid. The remaining two funds, Housing Fund and Debt Service, are reserved for those specific purposes.

Funding of the Agency’s administrative, redevelopment project, capital improvement and housing program expenses is dependent on tax increment revenues, interest on investments and, most importantly, bond proceeds that are strictly used for redevelopment projects. After paying debt obligations, excess tax increment revenues are then transferred from the Debt Service Fund to the Administration and Project Fund as needed throughout the fiscal year.

Recommended mid-year adjustments to the 2004/05 expenditure budget for the three major funds are as follows:

Administration & Project Fund 301
 General operational expenses are revised as follows:
• Decrease Community Development Director’s salary/benefit costs. $(13,500)
o Decrease from 32% to 20%; 12% now in City Housing Trust Fund.
 General revenue receipts are revised as follows:
• Decrease revenue transfer from Debt Service Fund 303 (13,500)

Total Budget Adjustment for 2004/05 Administration & Project Fund 301 $-0-

Housing Fund 302
 General operational and project expenses are revised as follows:
• Decrease Community Development Director’s salary/benefit costs. $ (8,500)
o Decrease from 8% to 0%; 8% now in City Housing Trust Fund
• Decrease City Housing Manager’s salary/benefit costs. (16,000)
o Decrease from 20% to 0%; now 100% in City Housing Trust Fund.
• Increase for purchase of 140 Jane Way, approved by Agency
on 7-13-04 by Resolution RA-84. 360,000
• Increase for Agency contribution to Mercy Housing’s Villa Amador 1,400,000

Total Budget Adjustment for 2004/05 Housing Fund 302 $1,735,500

Debt Service Fund 303
 General debt service expenses are revised as follows:
• Increase ERAF payment to State as advised by
State Department of Finance. $26,228
• Transfer excess tax increment to Fund 301
for operational expenses (13,500)

Total Budget Adjustment for 2004/05 Debt Service Fund 303 $12,728

FISCAL IMPACT
The fund balance of $12,840,000 and the 2004/2005 tax increment and earned interest revenues of $4,136,600 are sufficient to fund the original 2004/05 budget as well as the adjusted 2004/05 expenses of $-0- for Administration and Project Fund, $1,735,500 for Housing Fund, and $12,728 for Debt Service Fund.

Attachments: Resolution
2004/05 Mid-Year Amended Budget Worksheets for Funds 301, 302, 303

RESOLUTION NO. RA-_____

A RESOLUTION OF THE REDEVELPMENT AGENCY OF THE CITY OF BRENTWOOD AMENDING ITS 2004-05 BUDGET FOR MID-YEAR BUDGET ADJUSTMENTS

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 administrative and operational expenses, and 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 that the Redevelopment Agency of the City of Brentwood hereby adopts the mid-year budget amendments to its 2004-05 Budget.

PASSED, APPROVED AND ADOPTED by the Redevelopment Agency of the City of Brentwood at a regular meeting held on the 11th day of January 2005 by the following vote:
 

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