HomeMy WebLinkAboutStaff Report 247-09TO; HONORABLE REDEVELOPMENT
AGENCY BOARD R-l
FROM: CITY MANAGER
DATE: JUNE 15,2009
DEPARTMENT: ADMINISTRATIVE
SERVICES
CMR: 247;09
SUBJECT; Adoption of the Resolution of the Redevelopment Agency Adopting the
Budget for Fiscal Year 2010
RECOMMENDATION
Staff recommends that the Redevelopment Agency Board adopt the resolution adopting the
budget for the Palo Alto Redevelopment Agency for Fiscal Year 2010 (Attachment 1).
BACKGROUND
On July 9, 2001, the Palo Alto City Council adopted an ordinance declaring the need for a
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 wclfare 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. The
Redevelopment Plan for Edgewood Plaza was not ultimately adopted by the City Cowlci!. The
City has not designated any Redevelopment Project Areas for tevitali7,ation. ' .
DISCUSSION
Redevelopment law requires that each agency adopt an annual budget that contains the activities
to be financed by the Low and Moderate Ineome Housing Fund, proposed expenditures and
indebtedness, antieipated 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. 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 specifie action, the development of a
redevelopment project study area, if feasible, would 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
CMR:247:09 Page 1 of2
for fUl1her study. 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 bc 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 staffing cost, development activities and agency administration. The loans are to be re-paid
from tax -increment revenues that will be 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 incurred 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 20 I 0
Exhibit A -Proposed Redevelopment Agency Budget for 2010
PREPARED BY:
APPROVED BY:
CITY MANAGER APPROVAL:
CMR:247:09
DALEWONG '0
Senior Financial Analyst
LALOPEREZ
Director, Administrative Services
Page 2 of2
Resolution No. ---Resolution of the Redevelopment Agency of the City of Palo
Alto Adopting the Budget for Fiscal Year 2010
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 2010.
NOW, THEREFORE, the Agency does hereby RESOLVE as follows:
SECTION 1. The Agency does hereby adopt the annual budget for fiscal year
2010 in the form set forth in Exhibit "A," which is attaehed hereto and ineorporated 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"), therefore, no environmental assessment is
required.
INTRODUCED AND PASSED:
AYES:
NOES:
ABSENT:
ABSTENTIONS:
ATTEST: APPROVED:
Secretary Chairperson
APPROVED AS TO FORM:
General Counsel
090504 jb 0130467
Palo Alto Redevelopment Agency
Fund Summary
2010 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)
r nterest 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