Finance Highlights 2012 0203 - Laserfiche WebLink

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File Number: 12 -070 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. Mayor Cassidy asked Mr. Sims if the City is currently obligated to fund a Capital Improvement Project (CIP) that will now have to be funded by the General Fund. Mr. Sims stated that there are no pending CIPs at this time. However, the Eden Road Project will be affected as the RDA had entered into an agreement with the City which most likely not be allowed even though it is listed as an enforceable obligation. Mr. Sims stated that revenue will be received in three ways: Redistributed Property Tax: $760,000 /annually; Administrative Allowance (as stated by the Law), $250,000 /annually; and City of San Leandro Pass - Through Payments, $310,000 /annually. Therefore, the total funds to be allocated are $1,320,000. Mayor Cassidy inquired about possible litigations or legal expenses related to former RDA obligations. Administrative Analyst Kay stated that any lawsuits associated with enforceable obligations can be paid through the tax increments received for the debts. Any other legal inquiries will have to be budgeted and paid from the $250,000 administrative allowance fund. Mr. Sims presented the Committee with a plan for Future Funding Targets and how the funding may be allocated, assuming the entire $1,320,000 is allocated to business development and housing programs. The funding of $1,320,000 is to be distributed as follows: Staffing, $775,000; Programs, $326,000; Overhead, $171,000, and Administration, $48,000. Mr. Sims presented a matrix to the Committee which explained in detail staffing, programs, and administrative expenses funded by RDA. Mr. Sims explained that $1.2 million is what is currently paid from RDA for staffing. Of the total available funding of $1.3 million, only $775k is designated for staffing, and therefore staffing expenditures will need to be reduced by $425k. Mr. Sims also went over programs that may have to be reduced or eliminated. City of San Leandro Page 2 Printed on 211512012