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Home My WebLink AboutAGENDA REPORT 2012 0307 CC REG ITEM 09B ITEM 9.B. CITY OF MOORPARK City Council We tinQ AGENDA REPORT 4-17-1018.1 _ ar°riO :__ _. c20/a3" /0•___.___ _. TO: Honorable City Council FROM: David C. Moe II, Redevelopment anager Ron Ahlers, Finance Director DATE: February 21, 2012 (CC Meeting of March 7, 2012) SUBJECT: Consider Resolution Amending the Fiscal Year 2011/12 Budget to Continue Economic Development and Affordable Housing Operations until June 30, 2012 BACKGROUND & DISCUSSION On June 29, 2011, as part of adopting the State of California Fiscal Year 2011-12 budget, the Governor signed two trailer bills, ABX1 26 ("Dissolution Act") and ABX1 27 ("Voluntary Alternative Redevelopment Program"), into law. The legislation became effective on June 29, 2011. The California Redevelopment Association and League of California Cities sued the State of California on the grounds that ABX1 26 and 27 were unconstitutional. The California Supreme Court upheld ABX1 26 and declared ABX1 27. unconstitutional. This ruling eliminated redevelopment agencies throughout California as of February 1, 2012. ABX1 26 provides funding for administrative expenses associated with winding down the redevelopment agency; however, no funds are available to continue with economic development and affordable housing operations previously funded by tax increment. To continue economic development and affordable housing operations until the end of the fiscal year, staff is requesting a $213,408 budget amendment; $104,665 from the General Fund and $108,743 from the City Affordable Housing Fund. Attachment 1 details the proposed expenditures. On February 15, 2012, the City Council adopted the mid-year budget adjustments for fiscal year (FY) 2011/12. There were two revenue adjustments that relate to the former redevelopment agency (agency). The annual $5 million loan between the City and Agency was never implemented; therefore interest income for the General Fund was reduced by $150,000. The cost allocation plan for the year was $306,500 for the Agency. The Agency was in existence for seven months; therefore the cost allocation plan was reduced by $127,500 (5/12ths of the annual amount of $306,500). The 5 Honorable City Council February 15, 2012 Page 2 reduction in revenue of $277,500 to the General Fund has already occurred as part of the Council's approval of mid-year budget amendments on February 15, 2012. ABx1 26 allows for an "Administrative Cost Allowance" to be paid to the successor agency, subject to the approval of the oversight board. Specifically the law states, "the amount shall not be less than two hundred fifty thousand dollars ($250,000) for any fiscal year or such lesser amount as agreed to by the successor agency." Therefore, we are adding $250,000 to the General Fund revenues for this "Administrative Cost Allowance", which will offset all but $27,500 of the $277,500 reduction mentioned above. Staff recommends adopting the attached resolution (Attachment 2) amending the Fiscal Year 2011/12 budget to continue economic development and affordable housing operations until June 30, 2012. Staff will present to the Successor Agency an "Administrative Budget" for the time period of February 1, 2012 to June 30, 2012 in order to receive approval to present the same "Administrative Budget" to the oversight board. The oversight board has been granted the authority for the approval of the "Administrative Budget". Projects and Programs Staff Recommends not be funded in FY 2011/12 ECONOMIC DEVELOPMENT High Street Streetscape $ 1,000,000 161 Second Street, Park and Demolition 430,000 RR Crossing Improvements, Spring Road 173,244 Miscellaneous Consultant Services 74,000 Relocation Consultant Services 25,000 EDC —VC, Business Enhancement Program 10,000 RDP-21 Membership 5,000 UCSB Economic Forecast Sponsorship 3,000 EDC — VC, Annual Meeting Sponsorship 2,500 Conferences/Meetings/Mileage 2,500 Economic Development Total $ 1,725,244 6 Honorable City Council February 15, 2012 Page 3 HOUSING Miscellaneous Consultant Services, FTHB & Housing Activities$ 22,000 Real Estate Agent Services, FTHB 6,000 Monitoring, Vintage Crest 5,200 Miscellaneous Monitoring 1,000 VC HOME Conference Sponsorship 1,000 MCC Program 250 Housing Total $ 35,450 GRAND TOTAL $ 1,760,694 FISCAL IMPACT Staff is requesting a budget amendment in the amount of $213,408 to continue economic development and affordable housing operations until June 30, 2012. Of the total amount requested, $108,743 would be funded by the City Affordable Housing Fund (2201) and $104,665 would be funded from the General Fund (1000). Estimated revenue of $250,000 is also being budgeted in the General Fund. The impact on the General Fund is a negative $132,165 (revenue reduction of $277,500, expense increase of $104,665 and new revenue of $250,000) for this current fiscal year. However, the impact for next fiscal year, 2012/13 will be much greater. The Successor Agency is limited to the annual "Administrative Cost Allowance" of $250,000 for as long as the Successor Agency is in existence; theoretically until 2038 when the last bond payment is scheduled to be made. The impact on the City Affordable Housing Fund is the entire amount of $108,743 for this current fiscal year. This fund has fund balance available of approximately $3.6 million. This fund could absorb these expenses for a few years because of the size of the fund balance. These funds sources of revenues are: developer fees and rental income. Fiscal year 2012/13 preliminary estimated costs for the General Fund are approximately $282,000 ($205,000 for salaries & benefits plus $77,000 for operations). The General Fund will not have revenue from the MRA loan of $150,000; nor the cost allocation plan of $306,500. The one positive note is the "Administrative Cost Allowance" of $250,000. Therefore the estimated impact on the General Fund for FY 2012/13 is a negative $488,500. The impact on the City Affordable Housing Fund costs for fiscal year 2012/13 is currently estimated at $220,000 ($110,000 for salaries & benefits plus $110,000 for 7 Honorable City Council February 15, 2012 Page 4 operations). This is the same level of support as in FY 2011/12 inclusive of the budget amendment proposed in this report. STAFF RECOMMENDATION (ROLL CALL VOTE REQUIRED) Adopt Resolution No. 2012 - amending the Fiscal Year 2011/12 budget and authorizing City funding to continue economic development and affordable housing operations until June 30, 2012. Attachment 1 Economic Development and Housing Operations until June 30, 2012 Attachment 2 Resolution No. 2012 - 8 Attachment 1 Economic Development and Housing Operations until June 30, 2012 Economic Development Budget Expenses Amount Detail Salary & Benefits 85,365 HDL $5,000 Contractual Services 7,500 Annual Property Tax Update $2,500 Parks Assessment Fees 3,200 Special Professional Services 3,000 EDC-VC Membership $3,000 Overhead Allocation utilities 1,200 Overhead Allocation Service 900 Office Supplies 500 Special Office Supplies 500 Publications & Subscriptions 300 Membership and Dues 100 Mileage Reimbursement 500 Postage 300 Printing 500 Advertising 500 Office Equipment Maintenance 300 Subtotal: $ 104,665 Housing Budget Expenses Amount Detail Salaries and Benefits 44,993 Contractual Services 6,300 Vintage Crest Monitoring $5,300 Misc. Title Reports $ 1,000 Special Professional Services 2,000 Misc. Consulting Services Legal Services - Non Retainer 2,000 Cost Plan Allocation 32,700 Overhead Allocation Utilities 600 Overhead Allocation Service 3,500 Overhead Supplies 3,800 Office Supplies 250 Publications & Subscriptions 200 Memberships & Dues 100 Mileage 100 Postage 200 Printing 200 Advertising 500 Community Promotion 200 Property Maintenance 10,000 Electricity 200 Water 900 Subtotal: $ 108,743 Total: $ 213,408 9 ATTACHMENT 2 RESOLUTION NO. 2012 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MOORPARK, CALIFORNIA, AMENDING THE FISCAL YEAR 2011/2012 BUDGET BY APPROPRIATING $108,743 FROM THE CITY AFFORDABLE HOUSING FUND (2201) AND $104,665 FROM THE GENERAL FUND (1000) TO CONTINUE ECONOMIC DEVELOPMENT AND AFFORDABLE HOUSING OPERATIONS UNTIL JUNE 30, 2012 WHEREAS, on June 15, 2011, the City of Moorpark adopted the Operating and Capital Improvement budget for Fiscal Year 2011/12; and WHEREAS, a staff report has been presented to the City Council requesting an appropriation to continue Economic Development and Affordable Housing operations until June 30, 2012; and WHEREAS, a budget adjustment in the aggregate amount of $108,743 is requested from the City Affordable Housing Fund (2201) and $104,665 from the General Fund (1000) to fund the continuation of Economic Development and Affordable Housing operations until June 30, 2012; and WHEREAS, Exhibit "A", attached hereto and made a part hereof, describes said budget amendment and the resultant impact to the budget line item. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MOORPARK DOES HEREBY RESOLVE AS FOLLOWS: SECTION 1. A budget amendment in the amount of $108,743 is requested from the City Affordable Housing Fund (2201) and $104,665 from the General Fund (1000), as more particularly described in Exhibit "A", attached hereto, is hereby approved. SECTION 2. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 7th day of March, 2012. Janice S. Parvin, Mayor ATTEST: Maureen Benson, City Clerk Exhibit A — Budget Amendment 10 EXHIBIT A BUDGET AMENDMENT FOR City Affordable Housing Fund(2201)to continue Affordable Housing Operations until June 30,2012 General Fund(1000)to continue Economic Development Operations until June 30,2012 2011/12 FUND ALLOCATION FROM: Fund Account Number Amount City Affordable Housing Fund 2201-5500 $ 108,743 General Fund 1000-5500 $ 104,665 Total $ 213,408 REVENUE BUDGET ALLOCATION: Account Number Current Budget Revision Amended Budget 1000-0000-0000-3811 $ 0 $ 250,000 $ 250,000 Total _$ 0 $ 250,000 $ 250,000 DISTRIBUTION OF APPROPRIATION TO EXPENSE ACCOUNTS: Affordable Housing Operations Account Number Current Budget Revision Amended Budget 2201.2430.0000.9002 $ 17,795 $ 31,965 $ 49,760 2201.2430.0000.9011 $ 35 $ 63 $ 98 2201.2430.0000.9013 $ 3,014 $ 5,374 $ 8,388 2201.2430.0000.9014 $ 256 $ 464 $ 720 2201.2430.0000.9018 $ 174 $ 73 $ 247 2201.2430.0000.9030 $ 89 $ 385 $ 474 2201.2430.0000.9040 $ 536 $ 609 ,$ 1,145 2201.2430.0000.9041 $ 65 $ 74 $ 139 2201.2430.0000.9042 $ 44 $ 57 $ 101 2201.2430.0000.9043 $ 135 $ 242 $ 377 2201.2430.0000.9044 $ 7 $ 12 $ 19 2201.2430.0000.9045 $ 3,721 $ 5,675 $ 9,396 2201.2430.0000.9102 $ 10,000 $ 6,300 $ 16,300 2201.2430.0000.9103 $ 0 $ 2,000 $ 2,000 2201.2430.0000.9122 $ 0 $ 2,000 $ 2,000 2201.2430.0000.9198 $ 0 $ 3,500 $ 3,500 2201.2430.0000.9202 $ 0 $ 250 $ 250 2201.2430.0000.9220 $ 0 $ 200 $ 200 2201.2430.0000.9221 $ 0 $ 100 $ 100 2201.2430.0000.9224 $ 0 $ 100 $ 100 2201.2430.0000.9231 $ 200 $ 200 $ 400 2201,2430.0000.9232 $ 0 $ 200 $ 200 2201.2430.0000.9234 $ 0 $ 500 $ 500 2201.2430.0000.9240 $ 0 $ 200 $ 200 11 Page 1 of 3 EXHIBIT A BUDGET AMENDMENT FOR City Affordable Housing Fund (2201)to continue Affordable Housing Operations until June 30, 2012 General Fund(1000)to continue Economic Development Operations until June 30,2012 2W11/13 Account Number Current Budget Revision Amended Budget 2201.2430.0008.9352 $ 355 $ 10.000 $ 10.355 22012430.0000.9288 $ 0 $ 5.800 $ 3.800 2201.2430.0000.9413 $ 1,120 $ 200 $ 1.320 2201.2430D000.9415 $ 750 $ 900 $ 1.050 2201.2430.0000.9488 $ 0 $ 000 $ 600 22O124�OQOUO95�B � U � 327OO � 327OO � � � 1 ,700 1$ | Total |\� 38,296 108,743 147,039 / . . . � Economic Development Operations Account Numobe, Current Budget Revision Amended Budget 1000.2411.0000.8002 $ 0 $ 58.915 $ 58.813 1000.2411.0000.8003 $ 0 $ 6.015 $ 6.015 . 1000.2411.0000.9011 $ 0 $ 128 $ 128 1000.3411.0000.9013 $ 0 $ 10.064 $ 10.064 1000.2411.0000.9014 $ 0 $ 951 $ 951 1000.2411.0000.9017 $ 0 $ 180 $ 190 1000.2411.0000.9018 $ 0 $ 89 $ 89 1000.2411.0000.9030 $ 0 $ 783 $ 783 1000.2411.0000.9040 $ 0 $ 036 $ 626 1000.2411.0000.9041 $ 0 $ 79 $ 79 . 10002411.0000.9042 $ 0 $ 103 $ 103 1000.2411.0000.9043 $ 0 $ 445 $ 445 1080.2411.0000.9044 $ 0 $ 15 $ 15 1000.2411.0000.9045 $ 0 $ 6.904 $ 6.884 1000.3411.0000.9102 $ 0 $ 7.500 $ 7.500 1000.2411.0000.9103 $ 0 $ 8.200 $ 6.200 1000.2411.0000.8202 $ 0 $ 1.200 $ 1.200 10002411D000.9205 $ 0 $ 900 $ 900 1000.2411.0000.9220 $ 0 $ 500 $ 500 1000.3411.0000.9221 $ 0 $ 500 $ 500 1000.2411.0000.9224 $ 0 $ 300 $ 300 1000.2411.0000.9231 $ 0 $ 100 $ 100 . 1000.2411.0000.8282 $ 0 $ 500 $ 500 1000.2411.0000.9234 $ 0 $ 300 $ 300 1000.2411.0000.0250 $ 0 $ 500 $ 500 1000.2411.0000.9498 $ 0 $ 500 $ 500 1000.2411.0000.9598 $ 0 $ 300 $ 300 Total $ 0 $ 104.665 $ 104.685 Approved as to Form: an ~~ \i~-L,-~ l2 Page 2 of 3