AgdaPkt 2009-04-27 - Laserfiche WebLink

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6.28 meantime, language was included in the formal transmittal to county auditors required Page 2 by March 1, 2009, which stated that the Redwood City Redevelopment Agency ("Agency") reserves any rights it may have to withhold the payment of funds to San Mateo County pursuant to AS 1389 or to recover those funds after payment or transfer based on any order or judgment of the Court in the lawsuit. The ERAF payment is proposed to be made from a combination of sources, including the projected 'Working Capital Balance" for the current fiscal year (estimated at $322,000); as well as a redirecting of allocations for two capital projects-Agency General IIContingency" funds, which has a current balance of $723,165 and the uDT Garage Foundation Upgrade Project", which has a current balance of $650,000. Approval of the budget adjustments will leave a "Working Capital Balance" of just under $186,000; a balance in "Contingency" funds of $323,165; and a balance in the "Downtown Garage Foundation Upgrade Project" of $450,000 (see Attachment 3: Table of Recommended Appropriation Revisions FY 08/09). The projected "Working Capital Balance" of approximately $186,000 is considered appropriate in that the Agency budget for FY 2008/09 still contains a $500,000 operating reserve, giving the Agency ample resources for other unanticipated expenditures in the remainder of the Fiscal Year, basically May and June of 2009. The proposed FY 2009/10 budget will contain recommendations regarding restoration of funding to the affected capital projects versus consideration of new capital projects or programs that may be more closely aligned with current Council priorities. Target Grant The four Sunday afternoon concerts funded by a grant from Target in the summer of 2008 were successful enough to warrant an additional grant of $30,500 from Target for the summer of 2009 (see Attachment 4: Target Memorandum of Understanding). Again, this funding is the direct result of Bruce Labadie's outreach work for sponsors for downtown programming and events. Given the current economic downturn, the additional $30,500 in funding for 2009 is a tribute to the successful collaborative efforts of Target and city staff to provide uniquely themed family concerts as part of downtown events and activities. The $30,500 grant is included in "Grant Revenue17, offset by the additional $30,500 in expenditures included in "Downtown Development Programs". Conclusion State redevelopment law requires a nexus of funding allocations to the elimination of blight conditions identified in both the original Redevelopment Plan and Amendment Area #2, as well as the projects and blight conditions identified in the implementation plans adopted by the Agency over the years. In the case of this proposed budget amendment, that nexus cannot be made. That is the core issue in the lawsuit filed by CRA and the conflict between AB 1389 and state redevelopment law. As things currently stand, the payment is a statutory requirement and must be provided for in the current fiscal year budget. AL TERNA TIVES Council/Board may direct staff to appropriate funding from other RDA funding /projects to meet the AB 1389 requirement.