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Budget Amendment Eliminating Redevelopment Agency February 3, 2012 Allocate property tax revenues to successor agencies for making payments on indebtedness incurred by the redevelopment agency prior to its dissolution and allocate remaining balance in accordance with applicable constitutional and statutory provisions. Require successor agencies to expeditiously wind down the affairs of the dissolved redevelopment agencies and to provide the successor agencies with limited authority that extends only to the extent needed to implement a wind down of redevelopment agency affairs. DISCUSSION The budget adjustments must reflect revenue and expenditure budget activity to be recorded by the Finance Department due to the actions necessary with eliminating the Redevelopment Agency and establishing the Successor Agency. The amendment adjustments, as with previous amendments, needs to include the fund, the sources of additional revenues or transfers, and the purpose of reallocated expenditures or transfers. Major changes in the approved budget necessary to wind down the Redevelopment Agency are shown below. This summary reflects continuation of present operations for the balance of the year. The City Council's direction to alter existing services at any time during the 5 -month period will modify (presumably reduce) the necessary level of appropriation. • Appropriate additional General Fund revenue of $542,000 from Property Tax estimated for the period February 1 through June 30, 2012. Additional salary, benefit, and internal service charges for the General Fund would amount to $720,200. Projected additional expenditures would exceed projected additional revenues in the General Fund by $178,200. • For the Plaza Project Area, the Joint Project Area, the West San Leandro/MacArthur Project Area, the Low /Moderate Housing Fund, and the Redevelopment Agency Debt Service Fund, all budgeted revenues and expenditure appropriations for the period February 1 through June 30, 2012 would be reduced to $0. • For the Successor Agency for the San Leandro Redevelopment Agency, appropriation of revenues of $2,218,500 from EOPS reimbursements from Alameda County and total expenditure appropriation of $2,218,500 would be recorded. • Re- appropriate bond proceeds for expenditures related to Town Hall Square, Estudillo /Callan Parking Garage, Chamber of Commerce TI (Garage), E 14 Hesperi an/ 150 Improvements, and the E 14 Hesperian/150 Remediation. CONCLUSION Staff recommends that the Finance Committee discuss and consider the elements of a 2011 -12 budget amendment adjusting revenue and expenditure appropriations necessary because of state actions eliminating the San Leandro Redevelopment Agency.