HomeMy WebLinkAboutStaff Report 254-08TO:
FROM:
DATE:
SUBJECT:
HONORABLE CITY COUNCIL R-- 1
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
JUNE 9, 2008 CMR: 254:08
ADOPTION OF THE RESOLUTION OF THE REDEVELOPMENT
AGENCY ADOPTING THE BUDGET FOR FISCAL YEAR 2008-09
RECOMMENDATION
Staff recormnends that the Redevelopment Agency Board adopt the resolution adopting the
budget for the Palo Alto Redevelopment Agency for fiscal year 2008-09 (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 redeve!opment agency "will serve the public interest and
promote the public safety and welfare in an effective manner" in accordance with the Health and
Safe~ Code Section 33200.
On September 19, 2001, the Edgewood Redevelopment Project Area was designated as a Sun, ey
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 no Redevelopment Project Areas.
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, as required by law, the Agency is subject to an
mmual audit and must report al! financial transactions to the State Controller.
The expenditures and indebtedness of the Agency must be in conformance vdth the proposed
budget, and the Cit3~ Council, acting as the Agency Board, must approve the almual budget.
CMR:254:08 Page t of 2
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.
ENVIRON~IENTAL ASSESSMENT
This is not a project under the California Environmental Quality Act and therefore environmental
review is not required.
ATTACHMENTS
Attachment 1 - Resolution Adopting Agency Budget for 2008-09
Exhibit A - Proposed Redevelopment Agency Budget for 2008-09
PREPARED BY:
CITY MANAGER APPROVAL:
DALE WONG "~
Senior Financial An~yst
STEVE EMSL~’and ~LLY MO~R~
Deputy City Managers
CMR:254:08 Page 2 of 2
NOT YET APPROVED
RESOLUTION NO.
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF PALO ALTO ADOPTING THE BUDGET FOR
FISCAL YEAR 2008-09
k~EREAS, 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
k~EREAS, the Agency desires to adopt the annual budget
for fiscal year 2008-09.
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 fisca! year 2008-09, in the form set forth in Exhibit
"A," which is attached hereto and incorporated herein by
reference.
SECTION 2. The annua! 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
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EXHIBIT A
Palo Alto Redevelopment Agency
Fund Summary
2008-09 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
8,500
$ 8,500
$
8,500
$8,500
(1) Cost of Annual Audit and State Controllers Report