AgdaPkt 2009-10-19 - Laserfiche WebLink

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7C plan every five years. The Agency's Plan expires at the end of this year. The Plan, a Page 5 policy and program document will contain specific goals and objectives of the Agency, and specific programs and expenditures proposed to be made during the next five years as well as an explanation of how these will eliminate blight within the project area and implement the low-and-moderate income housing requirements. Based on the CRA's recommendation, the proposed programs and expenditures in the Plan will assume that the SERAF take will not be in effect. Next Steps The Board will not be asked to make final decisions at this time on the scenarios and alternatives described above; however, should the Board determine that it cannot make the SERAF payment, a resolution must be adopted by the end of 2009. If the Board determines that the SERAF payment can be paid, the Board is asked to provide conceptual or preliminary direction, so that staff will be able to prepare the necessary documents for further Board consideration and decisions on December 14, 2009. The Board may also identify additional approaches or alternative actions that may be developed and brought back by staff for the December meeting. FISCAL IMPACT At this time, the estimated take from the Agency is a total of $4.3 million, of which $3.56 million will be taken in FY 2009/10 and $733,000 in FY 2010/11 if the anticipated lawsuit against the State is unsuccessful. The actual amounts will be determined by the State Department of Finance by November 15, 2009. The Agency's ability to meet its FY 2009/10 SERAF payment may require the borrowing of the Agency's housing set-aside tax increment funds and possibly deobligating $1.2 million of unexpended funds from project appropriations established in prior years to increase the Agency's working capital. The proposed projects to be deobligated are as follows: . $415,057 Critical "Pioneering" Development (803-71263) . $450,000 Garage Fund Upgrade (803-71348) . $50,000 Downtown Banners (803-71874) . $2,302 Marshall Garage Improvements (803-71963) . $300,000 Transit Connection Project (803-72023) Should the Board take no action on the Agency's budget, the Agency's estimated ending working capital balance will be a negative $701,000 in FY 2009/10 and negative $1.47 million at the end of FY 2010/11. If the Agency fails to make the SERAF payment, the Agency may not adopt a new redevelopment plan, further encumber funds or expend any moneys derived from any source except to pay pre-existing indebtedness, contractual obligations, and 75 percent of the amount expended on agency administration for the preceding fiscal year.