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HomeMy WebLinkAbout2010-06-28 City Council Agenda Packet (2) 1 06/28/10 PALO ALTO REDEVELOPMENT AGENCY Agenda posted according to PAMC Section 2.04.070. A binder containing supporting materials is available in the Council Chambers on the Friday preceding the meeting. Special Meeting Council Chambers June 28, 2010, 7:00 PM or as soon as possible thereafter ROLL CALL SPECIAL MEETING R-1. Adoption of the Resolution of the Redevelopment Agency Adopting the Budget for Fiscal Year 2011 CMR 270:10 and ATTACHMENTS ORAL COMMUNICATIONS Members of the public may speak to any item not on the agenda; three minutes per speaker. Council reserves the right to limit the duration of Oral Communications ADJOURNMENT TO: FROM: DATE: HONORABLE REDEVELOPMENT AGENCY BOARD R-l CITY MANAGER DEPARTMENT: ADMINISTRATIVE SERVICES JUNE 28, 2010 CMR: 270:10 SUBJECT: Adoption of the Resolution of the Redevelopment Agency Adopting the Budget for Fiscal Year 2011 RECOMMENDATION Staff recommends that the Redevelopment Agency Board adopt the resolution adopting the budget for the Palo Alto Redevelopment Agency for Fiscal Year 2011 (Attachment I). BACKGROUND On July 9, 2001, the Palo Alto City Council adopted an ordinance declaring the need for 1'\ redevelopment agency. City Council also declared that it would act as the Agency Board and made the finding that the formation of a redevelopment agency "will serve the public interest and promote the public safety and welfare in an effective manner" in accordance with the Health and Safety Code Section 33200. In addition, the RDA is required by law to adopt an annual bUdget. On September 19,2001, the Edgewood Redevelopment Project Area was designated as a Survey Area and the process for the adoption of the Redevelopment Plan was initiated. The Redevelopment Plan for Edgewood Plaza was not ultimately adopted by the City Council. The City has not designated any Redevelopment Project Areas for revitalization. DISCUSSION Redevelopment law requires that each agency adopt an annual budget that contains the activities to be financed by the Low and Moderate Income Housing Fund, proposed expenditures and indebtedness, anticipated revenues, a work program and a comparison between the previous year's achievements and goals. Since Palo Alto does not have a Redevelopment Project Area, there are no activities to be reported. However, the RDA is required by law to complete an annual audit. The estimated cost for the audit is $8,500 and remains the only item in the 20 II budget. Historically, the Mayor's Ad Hoc Retail Attraction Committee recommended the inclusion of incentives and development of strategies to attract and retain businesses in the City of Palo Alto. One specific action, the development of a redevelopment project study area, if feasible, would CMR:270:10 Page 1 of2 promote retail activity which addresses City objectives. Staff continues to review zones that would be appropriate and "right-sized" project areas that meet the economic and physical blight requirements of redevelopment. Staff will return to the City Council for future direction for the RDA when an appropriate area is identified for further study. Staff will bring back any amendments to the budget if/when a study area is identified and approved by Council and additional funds are needed for study area expenditures. The expenditures and indebtedness of the Agency must be in conformance with the proposed budget, and the City Council, acting as the Agency Board, must approve the annual budget. RESOURCE IMPACT Funding in the amount of $8,500 for the Palo Alto Redevelopment Agency is advanced by the City of Palo Alto and is considered a loan from the City to the Agency to cover expenses related to annual audit activities. The loans are to be rc-paid from lax-increment revenues that will bc collected in future years if the City were to adopt a Project Area. In accordance with City procedures, a corporate agreement has been established between the City and the Agency. Expenses ineuned on behalf of the Redevelopment Agency will be incorporated into the loan agreement for prior years. POLICY IMPLICATIONS This recommendation does not represent any change to existing City policies. ENVIRONMENTAL ASSESSMENT This is not a project under the California Environmental Quality Act and therefore environmental review is not required. ATTACHMENTS Attachment I -Resolution Adopting Agency Budget for 2011 Exhibit A -Proposed Redevelopment Agency Budget for 2011 PREPARED BY: APPROVED BY: Director, Administrative Services CITY MANAGER APPROVAL: CMR:270:IO Page 2 of2 ATTACHMENT 1 Not Yet Approved Resolution No. ---Resolution of the Redevelopment Agency of the City of Palo Alto Adopting the Budget for Fispal Year 2011 WHEREAS, Section 33606 of the California Health and Safety Code requires that a redevelopment agency shall adopt an annual budget, which may be amended from time to time as determined by the agency; and WHEREAS, the Redevelopment Agency of the City of Palo Alto (Agency) desires to adopt the annual budget for fiscal year 2011. NOW, THEREFORE, the Agency does hereby RESOLVE as follows: SECTION 1. The Agency does hereby adopt the annual budget for fiscal year 2011 in the form set forth in Exhibit "A," which is attached hereto and incorporated herein by reference. SECTION 2. The annual budget hereby adopted, and future adopted budgets, may be amended from time to time by resolution. SECTION 3. The Agency finds that this Resolution is not a project under the California Environmental Quality Act ("CEQA H), therefore, no environmental assessment is required. INTRODUCED AND PASSED: AYES: NOES: ABSENT: ABSTENTIONS: ATTEST: APPROVED: Secretary Chairperson APPROVED AS TO FORM: General Counsel 100601 jb 0130596 Palo Alto Redevelopment Agency Fund Summary 2011 Proposed Budget Revenues Interest Income Loan Interest Other Income Subtotal Operating Transfers Advances from City Total Source of Funds Expenses Adminstrati ve Cost Professional Services Cost (1) Interest Expense Total Use of Funds Net To/(From) Reserves EXHIBIT A $ 8,500 $ 8,500 $ 8,500 $ 8,500 $ (1) Cost of Annual Audit and State Controllers Report