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HomeMy WebLinkAbout2001-11-27 - AGENDA REPORTS - 01 02 MID YEAR BUDGET & LOAN (3)CITY OF SANTA CLARITA REDEVELOPMENT AGENCY AGENDA REPORT NEW BUSINESS City Manager Item to be presented by: George Caravalho DATE: November 27, 2001 SUBJECT: 2001-2002 MID -YEAR BUDGET ADJUSTMENT REVIEW AND LOAN FROM THE CITY OF SANTA CLARITA DEPARTMENT: City Manager RECOMMENDED ACTION Redevelopment Agency receive report and comment regarding Fiscal Year 2001-02 mid -year budget adjustments, and direct staff to return December 11 for final approval. BACKGROUND Each year at this time, City staff takes the opportunity to evaluate the adopted budget and evaluate the economic outlook for the remainder of the year. It is critical to perform the mid -year review of the budgetary and financial position to ensure that any deviations from the initial budget projections are addressed in a manner which is proactive rather than reactive. It is also at this time that staff reviews its priorities and requests appropriations for activities that have become a priority, but are currently not funded. Attachment A provides details of the proposed mid -year expenditure and revenue adjustments. Based on the most recent assessed valuation received from the County for the Newhall Redevelopment area, it is anticipated that tax increment revenue will come in $102,135 higher than currently budgeted. In addition, an expenditure adjustment is being requested. It is a request of $150,000 to continue the successful fagade improvement program. It is being requested that a loan from the City in the amount of $150,000 be accepted to help fund the increase in expenditures. The current loan to the Redevelopment Agency does not provide sufficient funding to accomplish the goals directed by the Council/Agency. Approval of this loan brings the total loan from the City of Santa Clarita to $3,395,000. s "IM I RECEIVED Agenda Item 2001-2002 MID -YEAR BUDGET ADJUSTMENT AND RESOLUTION November 27, 2001— Page 2 ALTERNATIVE ACTION Other action as determined by the City Council. FISCAL IMPACT Redevelopment revenues are projected to increase by $102,135, and expenditures are proposed to increase by $150,000. An additional loan of $150,000 is needed to fund the increase in the fagade improvement program. ATTACHMENTS Attachment A— Mid -Year Adjustment Detail GAC:DS:hds council\my00-01 Account # Exi)enditures 1900 8001 Contractual Services 150,000 The Newhall Fagade Improvement program has received several requests from local businesses for fagade improvements. Without these additional funds these improvements are not Revenues 901 4013 ITax Increment 102,135 Tincrease in Property Tax Revenue Attachment A