AgdaPkt 2010-07-12 - Laserfiche WebLink

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6.3B Page 1 ",RE1PORT' To the Redevelopment Agency Board From the Executive Director July 12, 2010 SUBJECT Adoption of Redevelopment Agency Final Fiscal Year (FY) 2010-2011 Budget. RECOMMENDATION Adopt the resolution of the Redevelopment Agency approving the annual budget for FY 2010-2011. BACKGROUND The Redevelopment Agency Board reviewed the proposed Agency budget for FY 2010- 2011 at its study session of June 30, 2010. Based upon that review, the annual budget report has been finalized (see Attachment 2). The proposed budget needs to be adopted by resolution by the Agency Board (Attachment 1). The budget as presented incorporates the State take-a-way for the Supplemental Educational Revenue Augmentation Fund (SERAF) per AB 26 4x. Redwood City's share of the $2.05 billion State-wide Redevelopment impact is $4.3 million. The Agency submitted a payment of $3.6 million to the County for FY 09/10 in May, 2010. The budget for FY 10/11 incorporates another payment of $733,000 to be paid in this fiscal year. These SERAF payments include borrowing from the Agency's Housing Fund. Per AB 26 4x, the Housing Fund must be paid back from the Agency's General Fund within five years. This may curtail Redevelopment activities for the next few years. It should be noted that there is a pending legal challenge from the California Redevelopment Association to this State Redevelopment take. If that challenge is successful, staff will return with a budget amendment. ALTERNATIVES The adoption of an annual budget is required by State Redevelopment law. The proposed budget is recommended by staff. The revenues and fixed obligations are estimates based upon anticipated tax increment receipts, tax sharing agreements and previous experience. The Agency Board may choose to modify the administrative and capital expenditures as they feel appropriate, as long as they are consistent with the requirements of State Redevelopment law. If the Board should elect to increase expenditures, staff will need to determine whether sufficient resources would be available to support such increases. Alternatively, should the Board elect to reduce the proposed expenditures, additional resources would be available for spending in subsequent years, assuming the State does not further attempt to use those funds for balancing it's budget. FISCAL IMPACT Sufficient resources exist in the form of resources on hand plus anticipated revenues to fund the recommended budget. Formal approval of the budget will allow staff to