2A Work Session 2012 0214 - Laserfiche WebLink

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CITY OF SAN LEANDRO CITY COUNCIL FINANCE COMMITTEE February 3, 2012 8:15am — 9:45am San Leandro City Hall 835 East 14th Street San Leandro, California (Sister Cities Gallery) Committee Members: Mayor Cassidy, Vice Mayor Gregory City Staff Present: City Manager Zapata, Assistant City Manager Marshall, Interim Finance Director O'Leary, Community Development Director Luke Sims, Business Development Manager Battenberg, Deputy Finance Director Rodriguez, Housing -CDBG Manager Liao, Budget & Compliance Manager Perini, Administrative Analyst Kay, Community Relations Representative Ornelas, Sr. Accountant Galvin, Administrative Assistant III Perez Public Present: Dave Johnson, David Grodin The meeting was called to order at 8:15 a.m. 1. Discussion Regarding Impacts of Eliminating the redevelopment Agency and Plans for Maintaining Limited City Business Development and Housing Services Mayor Cassidy began by thanking Community Development and Finance for providing as much information as possible prior to the meeting. Mayor Cassidy stated that at this meeting, there will be feedback to the presentation but there will be no recommendations or decisions. Community Development Director Sims presented the Finance Committee with an overview of the impacts of the loss of the Redevelopment Agency. The overview includes: Financial Impact, the RDA programs, Project Management and Services, and Staffing and Administration. Mr. Sims provided a chart of the Annual Revenue Allocation that illustrated the magnitude of the loss. The Agency's Successor Agency will continue to have debt and through the County Auditor Controller, the Successor Agency will continue to receive tax increments for identified obligations, e.g. Bayfair $250k, SLUSD Gym $160k, and Bonds $4.2 million. Mayor Cassidy inquired about the Bayfair obligation and asked Mr. Sims when the obligation has been paid if the City will receive the $250k? Mr. Sims stated the City will receive a portion of that amount. Once an obligation on the Enforceable Obligation Payment Schedule is completed, the total will then be distributed annually to all taxing entities, of which the City is one. Essentially, the City will continue to receive tax increment funds for the identified obligations as well as the Pass - Through funds (for schools and County). What will be eliminated or reduced is the funding the City had received for one -time Capital Improvement Projects of $3.1 million. The proposal presented reduces remaining funding for Programs from $1.5 million to $326k, and funding for Admin /Staffing /Overhead will be reduced from $1.9 million to $994k.