HomeMy WebLinkAbout2004-06-28 City Council (13)City of Palo Alto
City Manager’s Report
TO:
FROM:
HONORABLE CITY COUNCIL
CITY MANAGER DEPARTMENT: ADMINISTRATIVE
SERVICES
DATE:JUNE 28, 2004 CMR: 315:04
SUBJECT:ADOPTION OF THE REDEVELOPMENT AGENCY BUDGETS
FOR 2003-04 AND 2004-05
RECOMMENDATION
Staff recommends that the Redevelopment Agency Board adopt the budgets for the Palo
Alto Redevelopment Agency for 2003-04 and 2004-05.
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 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 pro~am 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.
CMR:315:04 Page 1 of 2
RESOURCE IMPACT
Funding 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. 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.
ATTACHMENTS
Attachment 1 - Resolution for 2003-04 and 2004-05
Exhibit A - Proposed Redevelopment Agency Budgets for 2003-04 and 2004-05
PREPARED BY:"~.~ YEATS ........................
/Director, Administrative Services
DEPARTMENT HEAD APPROVAL:
CARL YEATS
Director,Services
CITY MANAGER APPROVAL:
EMILY HARRISON
Assistant City Manager
CMR:315:04 Page 2 of 2 ~.
ATTACHMENT1
NOT YET APPROVED
RESOLUTION NO.
RESOLUTION OF THE REDEVELOPMENT AGENCY OF THE
CITY OF PALO ALTO ADOPTING BUDGETS FOR THE
FISCAL YEARS 2003-04 AND 2004-05
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 annual budgets for
the fisca! years 2003-04 and 2004-05.
NOW, THEREFORE, the Redevelopment Agency of the City of
Palo Alto does hereby RESOLVE as follows:
SECTION i. The Agency does hereby adopt annual budgets
for the fiscal years 2003-04 and 2004-05, 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
Special Counsel
040622 s~ 8~73
EXHIBIT
Redevelopment Agency Fund Summary
2003-05 Proposed Budget
Proposed Proposed
Budget Budget
2003-04 2004-05
REVENUES
Interest Income
Loan Interest
Other Income
Subtotal
Operating Transfers
Advances from City
Subtotal
Total Source of Funds
EXPENSES
Adminstrative Cost
Professional Services Cost
Interest Expense
Total Use of Funds
Net To (From) Reserves
0
0
8,500
8,500
8,500
0
8,500
8,500
0
0
8,500
8,500
8,500
8,500
8,500
0