AgdaPkt 2011-07-11 - Laserfiche WebLink

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REPORT 6.3.C. - R To the Redevelopment Agency Board From the Executive Director July 11, 2011 SUBJECT Adoption of Redevelopment Agency Fiscal Year 2011 -2012 Budget. RECOMMENDATION Adopt the resolution of the Redevelopment Agency approving the annual budget for Fiscal Year 2011 -2012. BACKGROUND The Redevelopment Agency Board reviewed the proposed Agency budget for FY 2011- 2012 at its June 20, 2011 study session. Based upon that review, the annual budget report that includes the State's reporting requirements have been finalized as shown in Attachment 2. The proposed budget needs to be adopted by resolution by the Agency Board as described in Attachment 1. Since the beginning of 2011, the Governor's announcement to eliminate redevelopment agencies statewide has brought significant uncertainty to the status of the City's Agency. In association with the State's recent adoption of its FY 2011/2012 budget, two trailer bills affecting redevelopment agencies were passed: • ABX1 26 - Eliminates redevelopment agencies; and • ABX1 27 - As an option to ABX1 26, requires agencies to make significant payments in order to continue in a modified capacity. As a result of the new legislation, staff is reviewing both bills to assess the City and Agency's options and will bring this item to Council and the Agency Board as appropriate. The California Redevelopment Association and the League of California Cities are preparing legal challenging regarding the constitutionality of the State's recent actions. When the lawsuits are filed, both organizations will submit a request for injunction, or stay, to enable agencies to continue operating while the case is being decided. These actions are expected to be filed soon. The numbers included in the recommended budget represent status quo except for the creation of a new account called "Economic Development" in both the Agency General Fund and Housing Fund budgets. The recommended $367,735 and $60,628 will be shifted from existing Agency General Fund and Housing Fund accounts, respectively to be placed in new accounts that will focus on economic development within the redevelopment area and this program will report direct to the City Manager. Depending on the outcome of the legal challenge and the City and Agency's determination regarding next steps, an amendment may be presented to the Agency Board, and will likely be under the condition of less funding. At that time, Council could evaluate which Agency functions to fund. ige 1