HomeMy WebLinkAbout2010-11-09 RDA Item No. 4CITY OF
ADE LSINORE
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TO REDEVELOPMENT AGENCY
TO: HONORABLE CHAIRMAN
AND REDEVELOPMENT AGENCY
FROM: ROBERT A. BRADY
EXECUTIVE DIRECTOR
DATE: NOVEMBER 9, 2010
SUBJECT: REDEVELOPMENT AGENCY FISCAL YEAR 2010 -11 FIRST QUARTER
BUDGET REPORT
Background
On June 22, 2010, the Redevelopment Agency ( "RDA ") adopted its budget for fiscal
year 2010 -11. This report is the first quarter review of the fiscal year 2010 -11 RDA
budget.
Discussion
State Budget Impact
In July 2009, the California Legislature enacted a package of bills in special session to
address the State's fiscal emergency. Among the bills enacted during the special
session was Assembly Bill 26 (AB 26) which provides for a shift of funds during fiscal
year 2009/10 and fiscal year 2010/11 from redevelopment agencies to the State of
California.
This action required the Agency to pay $6,970,262 by May 10, 2010 to the State of
California Supplemental Educational Revenue Augmentation Fund (SERAF). An
additional payment of $1,435,054 is due by May 10, 2011. The effects of these
payments and the repayment to the Housing Fund also related to the State's action are
included in this budget.
This is not the first time the State has "raided" redevelopment funds to help close their
budget deficit. From fiscal year 1992 -93 to fiscal year 2006 -07, the State has "taken"
over $3.1 million from the City's redevelopment agency to fund the "Educational
Revenue Augmentation Fund (ERAF)." However, with the passage of Proposition 22,
this will hopefully be the last time.
AGENDA ITEM NO.4
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Redevelopment Agency FY 2010 -11 First Quarter Budget Report
November 9, 2010
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First Quarter Review
Our finance team and property tax consultants are reviewing and updating the
projections on the tax increment. Update projections will be available for presentation
with the mid -year budget review in February 2011. Based on our review and analysis of
Redevelopment Agency revenue and expenditures through the first quarter of fiscal
year 2010 -11, no adjustments to revenue or expenditures are recommended at this
time.
On October 27, 2010, the 1999 Series A bonds were refunding, providing a projected
savings in debt service to the RDA of $1.6 million over 20 years.
Fiscallmpact
There is no fiscal impact to this first quarter 2010 -11 budget report.
Recommendation
Approve the first quarter 2010 -11 Redevelopment Agency Budget Report.
Prepared by: James R. Rile
Director of Admi i rative Services
Approved by: Robert A. Brady
Executive Directo
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