HomeMy WebLinkAboutStaff Report 264-07BUDGET
TO:
FROM:
’07-’09
City of Palo Alto
City Manager’s Report
HONORABLE CITY COUNCIL R- 1
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:" JUNE 11, 2007 CMR: 264:07
SUBJECT:ADOPTION OF THE REDEVELOPMENT AGENCY BUDGET FOR
2007-08
RECOMMENDATION
Staff recommends that the Redevelopment Agency Board adopt the budget for the Palo Alto
Redevelopment Agency for fiscal year 2007-08. _
BACKGROUND-
On July 9, 2001, the Palo Alto City Council adopted an ordinance declaring the need for a
redevelopment agency. The 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.
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.
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. It should be noted that the Palo Alto Redevelopment Agency has
taken no formal action to designate the Edgewood Redevelopment Project Area and there are no
activities to be reported. However, as required by law, the Agency is subject to an annual audit
and must report all financial transactions to the State Controller.
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 fiscal year 2007-08 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 staffing cost, development activities and agency.
administration. The loans are to be re-paid from tax-increment revenues that will be collected in
CMR:264:07 Page 1 of 2
future years. In accordance with City procedures, a corporate agreement has been established
between the City and the Agency. Expenses incurred on behalf of the Redevelopment Agency
will be incorporated into the loan agreement for prior years.
The staff is currently exploring the feasibility of studying other potential Redevelopment Project
Areas in Palo Alto and will return to the City Council and Agency Board with a recommendation
to initiate a Project Study Area.
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.
PREPARED BY:
CITY MANAGER APPROVAL:
CARL YEATS
Director, Administrative Services
ATTACHMENTS
Attachment 1 - Resolution for 2007-08
Exhibit A - Proposed Redevelopment Agency Budget for 2007-08
CMR:264:07 Page 2 of 2
ATTACHMENT1
RESOLUTION NO.
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF PALO ALTO ADOPTING THE BUDGET FOR
FISCAL YEAR 2007-08
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 Agency desires to adopt the annual budget
for fiscal year 2007-08.
NOW, THEREFORE, the Redevelopment Agency of the City of
Palo Alto does hereby RESOLVE as follows:
SECTION i. The Agency does hereby adopt the annual
budget for fiscal year 2007-08, 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
adopted by a majority of the members of the Agency voting on the
resolution.
SECTION 3. The Agency finds that this Resolution is not
a project under the California Environmental Quality Act
("CEQA", therefore, no environmental assessment is required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST:APPROVED:
Secretary
APPROVED AS TO FORM:
Chairperson
General Counsel
070522 jb 0130125
Palo Alto Redevelopment Agency
Fund Summary
2007-08 Proposed Budget
Revenues
Interest Income
Loan Interest
Other Income
Subtotal
Operating Transfers
Advances from City
Total Source of Funds
Expenses
Adminstrative Cost
Professional Services Cost (1)
Interest Expense
Total Use of Funds
Net To/(From) Reserves
EXHIBITA
8,500
$8,500
$
8,500
$8,500
$
(1) Cost of Annual Audit and State Controllers Report