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Home My WebLink About03B-Economic Development Agency ECONOMIC DEVELOPMENT AGENCY OF THE CITY OF SAN BERNARDINO REOUEST FOR COMMISSION/COUNCIL ACTION FROM: Gary Van Osdel Executive Director SUBJECT: OR'l"'q:'L ' 1i"",iI~M ECONOMIC DEVELOPMENT AGENCY FISCAL YEAR 2001-02 BUDGET DATE: June 21, 2001 ------------------------------------------------------------------------------------------------------------------------------------------- Svnopsis of Previous Commission/Council/Committee Actlon(s): On April 26, 200 I, the Redevelopment Committee was presented the Agency's fiscal year 2001-02 budget, and the Committee recommended that the Commission sct a budget workshop. On June 6, 2001, June 14,2001, June 21, 2001 and June 26, 2001 budget workshops were held. Recommended Motlop(s): (Community Development Commission) MOTION: RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE ECONOMIC DEVELOPMENT AGENCY TO CONTINUE EXPENDITURES AT THE BUDGETED LEVEL FOR 2000-01 FISCAL YEAR, PENDING FINAL APPROVAL OF THE 2001-02 BUDGET. -----------------------------------------------------------------------------------------------------------------------------..------------- Contact Person(s): Gary Van OsdellBarbara Lindseth Phone: 663-1044 Project Area(s): All Ward(s): All Supporting Data Attached:1liI Staff Report 0 Resolution(s) 0 Agreement(s)/Contract(s) 0 Map(s) 0 LtrlMemo FUNDING REQUIREMENTS: Amount: $47.353.420 Source: All SIGNATURE: Budget Authority: Reauested .If &lUCA ~/&'1( Barbara Lindseth Admin Services Director --------------------------------------------------------------------------------------------------.--....--------------....----------..--..------ Commlsslon/CouncD Notes: ------------------------------------------------------------------------------------------------------------------ GVO:bl::Agenda CDC budget II COMMISSION MEETING AGENDA MEETING DATE: 06126/01 Agenda Item Number: 3 8 " ECONOMIC DEVELOPMENT AGENCY STAFF REPORT Economic Development Ae:encv Fiscal Year 2001-02 Bude:et The Economic Development Agency's proposed budget for fiscal year 2001-2002 is based upon projected revenues totaling $47,353,420. Of this total, $30,526,020 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 over) including $6,764,000 in Community Development Block Grant funds, $3,471,000 in HOME funds, and $162,000 in Emergency Shelter Grant funds. Also, the total budget includes the Agency's projected share of the lillB project and the 303 West Third Street Section 108 loan and EDA grant. For fiscal year 2001-02, ninety-four percent (94%) of the proposed budget encompasses required expenditures based upon previous actions of the City Council and lor Community Development Commission concerning Agency bond payments, contracts, agreements, projects and programs. Thus, only six percent (6%) ofthe 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 fiscal year. This increase is the result of retirement health benefits of$37,996, an allowance for the proposed change of the Special Events Coordinator position to that of Assistant Project Manager for $24,099, and an allowance for the proposed implementation of the salary survey at a cost of$60,332. Three (3) years ago staffprojected that if the Agency reduced expenditures and eliminated the City master service agreements over a three (3) year period, the Agency would be at a break-even or positive cash flow. In accordance with that projection, now, with the final reduction of $618,725 of master service agreements, and to a lesser degree, with some increases in revenues, the cash flow projection for fiscal year 2001-02 is a positive of$I,375. The projected positive cash flow for the Agency comes, however, without taking into consideration the cost to audit 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 ------------------------------------------------------------------------------------------------------------------ GVO:bl::Agenda CDC budget II COMMISSION MEETING AGENDA MEETING DATE: 06/26/01 Agenda Item Number: Staff Report Agency Fiscal Year 2001-02 Budget Page-2- 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 that this will be sufficient to enable the Agency to meet ever increasing energy costs. If the budget is not adopted prior to June 30, 2001, staff recommends adoption of the resolution to continue expenditures at the 2000-01 budgeted level. -----------------------.------------------------------------------------------------------------------------------ GVO:bl::Agenda CDC budget II COMMISSION MEETING AGENDA MEETING DATE: 06/26/01 Agenda Item Number: . \.... - 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 "- - '-' I RESOLUTION OF THE COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF SAN BERNARDINO, CALIFORNIA, AUTHORIZING THE ECONOMIC DEVELOPMENT AGENCY TO CONTINUE EXPENDITURES AT THE BUDGETED LEVEL FOR 2000-01 FISCAL YEAR, PENDING FINAL APPROVAL OF THE 2001-02 BUDGET. 2 3 4 51 6 I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Community Development Commission of the City of San Bernardino at a 71 meeting thereof, held on the _day of 8 the following vote, to wit: ,2001, by, Commission Members Navs Abstain Absent Aves ESTRADA LIEN MCGINNIS SCHNETZ SUAREZ ANDERSON MCCAMMACK Secretary The foregoing Resolution is hereby approved this _day of ,2001. Judith Valles; Chairperson Community Development Commission ofthe City of San Bernardino Approved as to form and legal content: By: Agency Counsel