HomeMy WebLinkAboutR44-Economic Development Agency
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ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
REOUEST FOR COMMISSION/COUNCIL ACTION
FROM:
GARY VAN OSDEL
Executive Director
SUBJECT:
Economic Development Agency
FiseaJ Year 2001-02 Budget
DATE:
April 26, 200 I
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Svnonsis of Previous CommisslonlCouncWCommittee Actlon(s):
On April 26, 2001, the Redevelopment Committee recommended that a workshop be held in the Agency's boardroom
in May 200 I to review and adopt the Agency's fiscal year 2001-02 budget.
Recommended Motion(s):
(Community Develonment Commission)
MOTION:
That the Community Development Commission set a workshop in the Agency's boardroom in May
2001 to review and adopt the Agency's fiscal year 2001-02 budget.
Contact Person(s): Gary Van OsdellBarbara Lindseth
Phone: 663-1044
Project Area(s):
All
Ward(s): All
Supporting Data Attached:l&J StalfReport 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LtrlMemo
FUNDING REQUIREMENTS: Amount: $ 49.003.420
Source: T1: BP: Federal Funds
Budget Authority: Reauested
SIGNATURE:
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Barbara Lindselh
Admin Services Director
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Commission/Councti Notes:
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GYO:bl:Agenda CDC budget workshop
COMMISSION MEETING AGENDA
MEETING DATE: 05/07/01
Agenda Item Number: <<
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Economic Development Ae:encv's Fiseal Year 2001-02 Bude:et
Background
The Economic Development Agency's proposed budget for the fiscal year 2001-02 is based upon
projected revenues totaling $49,003,420. Of this total, $32,176,020 is anticipated redevelopment
project area tax increment funds, reserves and revenue pass-through for projects, $6,430,400 is
anticipated project area 20% set-aside (low-moderate housing funds), and $10,397,000 is federal
funding (new year plus carry-overs), which includes $6,764,000 in Community Development
Block Grant funds, $3,471,000 in HOME funds, and $162,000 in Emergency Shelter Grant funds.
The total budget includes the Agency's projected share of the HUB project and the 303 West
Third Street Section 108 and EDA grant.
For fiscal year 2001-02, ninety four percent (94%) of the proposed budget encompasses required
expenditures based upon previous actions for the City Council and/or Community Development
Commission concerning Agency bond payments, contracts, agreements, projects and programs.
Thus, only six percent (6%) of the Agency's proposed budget, or $2,805,903, is discretionary
and, therefore, available for Agency staffing, administration/operations, general consulting, legal
and marketing.
The $2,805,903 discretionary budget amount referenced above includes $2,071,903 for Agency
staffing and direct administration/operations costs, and $734,000 in Agency costs associated with
legal, general consultant services and marketing. The $2,071,903 budgeted for Agency staffing
and direct administration/operations costs represents an increase of$115,199 from the current
year. This increase is the result of the proposed change of the Special Events Coordinator
position to that of Assistant Project Manager for $24,099, health benefits of$37,996 and the
proposed implementation of the salary survey at a cost of$6O,332.
Three (3) years ago staff projected that if the Agency reduced expenditures and eliminated the
City master service agreement over a three (3) year period, the Agency would be at a hreak-even
or positive cash flow. In accordance with that projection, now, with the final reduction of
$618,725 of master service agreements, and to a lesser degree, with some increases in revenues,
the cash flow projection for fiscal year 2001-02 is a positive of approximately $1,375. The
projected positive cash flow for the Agency comes, however, without taking into consideration
the cost of the audit of the ARR program and the cost of the related lawsuit (costs unknown at
this time). In addition, the budget does not include sufficient funds to complete two (2) of the six
(6) project area amendments for eminent domain, funds for unforeseen capital improvements to
Agency properties or funds with which to leverage private development beyond the HUB project.
While the budget does reflect a thirty percent (30%) increase in electricity rates, it is uncertain
GVO:bl:Agenda CDC budget workshop
COMMISSION MEETING AGENDA
MEETING DATE: 05/07/01
Agenda Item Number: M.
that this will be sufficient to enable the Agency to meet ever increasing energy costs.
Current Issue
At this time, staff requests that the Redevelopment Committee recommend to the Community
Development Commission that a date be set in May 2001 for a workshop to be held in the
Agency's boardroom for the purpose of reviewing and adopting the Agency's fiscal year 2001-02
budget.
Fiscal Impact
The Agency's total proposed budget for the fiscal year 2001-02 is $49,003,420.
Recommendations
That a date be set in May 2001 for a workshop to be held in the Agency's boardroom for the
purpose of reviewing and adopting the Agency's fiscal year 2001-02 budget.
GVO:bl:Agenda CDC budget workshop
COMMISSION MEETING AGENDA
MEETING DATE: 05/07/01
Agenda Item Number: ..Il!I!I.-