Loading...
HomeMy WebLinkAboutAmendments to Redevelopment Agency Operative Agreements F/Y 1994-1995 - 1995-10-02CounciVAgency Meeting Held: 14 Deferred/Continued to: Approved ❑ Conditionally Approved ❑ Denied 6tity Clerk's Signature Council Meeting Date: Department ID Number: CITY OF HUNTINGTON BEACH REQUEST FOR CITY COUNCIUREDEVELOPMENT AGENCY ACTION SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL SUBMITTED BY: MICHAEL T. UBER / PREPARED BY: SUBJECT: Robert J. Franz, Deputy City Admini Redevelopment Agency Operative -A Statement of Issue, Funding Source, Recommended Action, Alternative Action, Analysis, Environmental Status, Attachment(s) Statement of Issue: The Redevelopment Agency of the City of Huntington Beach incurs debt in order to receive tax increment revenue. The Agency is also required to file an annual statement to document this debt with the County of Orange Auditor/Controller by October 1, 1995. This statement is also needed for audit purposes as well as to keep the City Council informed of the changes in the debt owed the City by the Redevelopment Agency. Funding Source: Not Applicable Recommended Action: That the City Council/Redevelopment Agency approve the following Operative Agreement Amendments for fiscal year 1994/95: Amendment Increased Increased Total Increased Number (Decreased) Debt to (Decreased) Debt (Decreased) Debt June 30th,1995 July 1 st to September 30th, 1995 Main/Pier 14 569,271 190.424 759,695 TalbertfBeach 14 158.393 52,798 211.190 Oakview 14 (285,30S) 29,897 (255,412) Yorktown/Lake 13 56.763 18,921 75.684 Huntington Center 13 (549.BU) 5,025.037 4,175,149 Total (350.770) 5.317,077 4,966.307 Alternative Action(s): 1. Adopt the amendments with modifications 2. Do not adopt the agreements in which case the prior year debt statement would apply. 1 1 REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: Analysis: The City Council/Redevelopment Agency has adopted operative agreements since 1984. KPMG Peat Marwick's management letter for the fiscal year ending September 30, 1994 recommended that staff review the total debt of the Agency and determine the amount that is likely colle-.tible. The changes in the Agency's debt is summarized below: October 1.1994 July 1,1995 to Total to June 30,1995 September 30.1 G95 Indirect Advances 197,489 65,830 263,318 Exchange Advances 5,000,000 5,000,000 Interest 751.742 251,248 1,002.989 Repayments (1,300.000) - (1,300,000) Total Changes (350770) 5,317,077 4,966,306 Debt, Beginning of Period 84,206,138 Debt, End of Period 89,172,444 KPMG PEAT MARWICK'S MANAGEMENT LETTER COMMENT -AGENCY DEBT The most recent management letter from the City's auditors (KPMG Peat Marwick) recommended that staff review the future tax increment projections for each project area. Staff is also recommending suspending the accrual of interest on all general land sales and indirect advances. Staff is also recommending that $55,385,251 be reclassified as possibly uncollectible. This amount represents the amount that the current debt of the Agency exceeds the expected future tax increment. This reclassification does not affect these operative agreements but will affect the City's financial statements. In order to protect the Agency's ability to collect future tax increment, the formal operative agreements will not be changed to reflect the uncollectible amounts. This will help protect the Agency's ability to collect all potential revenue. The uncollectible amounts are, by project area: Main/Pier Talbert/Beach Oakview Yorktown/Lake Huntington Center Total $52,250,237 0 0 0 0 $52,250,237 OP95RCA.DOC -2- 09/01195 8:14 AM REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: The following types of advances are estimated to be uncollectible: Deferred Land Sales $32,588,417 Interest on Deferred Land Sales 19,661,820 Total $52,250,237 This analysis assumed that there will be no combination of the existing redevelopment project areas. If the project areas are combined, staff will further analyze the debt and tax increment and possibly recommend additional adjustments to the uncollectible debt. INCREASES TO DEBT: Increases to debt are summarized as follows: Indirect Advances $263,318 Accrued Interest 111002,989 General Fund Exchange (Hoover/Gothard) 5,000,000 $6,266,307 INDIRECT ADVANCES The City estimates indirect costs incurred on behalf of the Agency. All of the project areas except Main/Pier will incur this additional debt. The Health and Safety Code allows these amounts to show as advances to the Agency and count as debt this debt. The breakdown by project area is: October 1.1994 to June July 1.1995 to Total 30.1995 September 30. IM Main/Pier - - - TalberVSeach 18,709 6,236 24,945 OakvleW 89,691 29,897 119,588 YorktownRake 13,977 4,659 18,838 Huntington Center 75,112 25,037 100.149 Total 197.489 65,830 263.318 Since Main/Pier's debt is substantially greater than future estimated tax increment, no additional general fund indirect advances will be charged to Main/Pier,pending a decision on the merger of the project areas. OP95RCXDOC -3- 09101/95 8:14 AM REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: HUNTINGTON CENTER/GENERAL FUND -EXCHANGE ADVANCES - Staff estimates that the Hoover/Gothard connection will cost approximately $5,000,000. In order to fully capture the tax increment from Huntington Center, staff is recommending transferring the funding responsibility from the Huntington Center to the City (General Fund. Tax increment can be paid from Huntington Center to the General Fund to fund this project in the future. This will count as a debt of the Huntington Center project area. INTEREST ACCRUALS The City charged the Agency 6% for 1994/95 on all outstanding advances with the exception of general fund land sales and indirect advances which have zero interest accrued. The breakdown by fund of accrued interest is: General Fund: Direct Advances Indirect Advances Land sale Subtotal Genera'. Fund Other Funds: Gas Tax Fund Water Fund Sewer Fund Drainage Fund Park Acquisition and Development Fund Parking Authority Capital Improvement Fund Subtotal Other Funds Total All Funds October 1.1994 to July 1.1995 to Total June 30.1995 September 30.1995 448,307 149,435 597.742 0 0 0 0 0 448.307 149.435 597,742 37,210 12,403 49,614 87,760 29,253 117,013 9,534 3.178 12.712 18.054 6,018 24.073 132.130 44.043 176.173 5,695 1.898 7,593 13,551 4.517 18.068 303.935 101.312 405.246 752,243 250,747 1,002,989 The breakdown by project area is: October 1.1994 to July 1, 1995 to Total June 30,1995 September 30,1995 MainlPier 569,271 190.424 759.695 TalberlIBeach 139.684 46,561 186,246 Oakview - - - YorktowMAke 42,786 14,262 57,049 Huntington Center - - - Total 751.742 251.248 1.002,989 OP95RCA.DOC -4- 09/01/95 8:14 AM REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: REPAYMENTS The Agency repaid the City $1,300,000 to the General Fund as approved in the 1994195 budget. REPAYMENTS October 1, 1994 to July 1,1995 to September 30. Total June 30,1995 1995 MahVPier - - - TalbertBeactt - - Oakvlew $75,000 - 375,000 YorktownAAke - - - HunGnglon Center 925,000 - 925.000 Total 1,300,000 - 1.300.000 The repayments were credited against the following types of General Fund debt in accordance with previous Council direction. INTEREST ON INDIRECT ADVANCES $444.119 INDIRECT ADVANCES 855,882 TOTAL $1, 300, 000 Environmental Status: Attachment(s): 1. Exhibit I - Summary of All Agency Debt by Project Area 2. Exhibit 11- Summary of Changes in Agency Debt by Project Area 3. Operative Agreement Amendments OP95RCA.DOC -5- 09/21195 2:35 PM REQUEST FOR ACTION MEETING DATE: DEPARTMENT ID NUMBER: City Clerk's'l IFage Nuinber h OP95RCA.DOC -6- 09/01/95 8:14 AM SUMMARY OF AGENCY DEBT: GENERAL FUND DIRECT ADVANCES GENERAL FUND INDIRECT ADVANCES GENERAL FUND EXCHANGES DEFERRED LAND SALES INTEREST TOTAL GENERAL FUND OTHER FUNDS PARK ACQUISITION AND DEVELOPMENT SEWERFUND DRAINAGE FUND CAPITAL IMPROVEMENT FUND PARKING AUTHORITY WATER FUND GAS TAX FUND TOTAL DEBT OTHER FUNDS TOTAL OPERATIVE AGREEMENT DEBT OTHER DEBT: Emerald Cove Bonds Notes Payable Public Financing Aut Low Income Housing ERAF OTHER DEBT TOTAL ALL AGENCY DEBT EXHIBIT 1 SUMMARY OF ALL AGENCY DEBT BY PROJECT AREA SEPTEMBER 30,1995 MAIN/PIER TALBERT/ BEACH OAKVIEW YORKTOWNILAKE HTG CTR TOTAL 11,485,790 - - 250,935 - 11,736.725 4,014.577 44,147 2,433,631 310,109 46,246 6,848,710 5,000.000 5,000,000 32.588.417 - - 245.000 - 32,833,417 24.921,849 1,975 322,260 348,155 - 25,594,240 73,010,633 46,122 2,755,891 1,154.199 5,046,246 82,013.092 - 3,112,397 - - 3,112.397 138,394 86,191 - - - 224,584 333,532 91,749 - - - 425.282 - - - 319,206 - 319,206 134,145 - - - - 134,145 2,067,232 - - - - 2,037,232 876,508 - - - - 878.508 3,549,811 3,290,338 - 319,206 - 7,159,353 76.560.444 3.336.460 2.755.891 1.473.405 5.046.246 89.172.444 - 5,555.000 - - - 5.555,000 706,261 - - - - 706,261 13,405,682 1,833,420 3,331.935 - 11,008,442 29.579,479 1,362,500 - - - - 1,362,500 276,864 34,004 138.214 28,365 317,882 795.329 15,751,307 7.422,424 3,470.149 28,365 11,325.324 37,998.569 92,311.751 10,758,884 6,226.040 1,501,770 16.372.570 127,171,013 C EXHIBIT II SUMMARY OF CHANGES IN AGENCY DEBT BY PROJECT AREA MAINIPIER TAL13ERT18EACN OAKVIEW YORKTOWNILAKE HTO CTR TOTAL INCREASES ACCRUED INTEREST $ 759,695 $ 186,246 $ - $ 57,049 $ - $ 1.002,989 NEW ADVANCES - 24,945 119,588 18,636 5,100,149 5,263,318 TOTAL INCREASES 759,695 211,190 119.588 75,684 5,100,149 6,266,307 DECREASES - BUDGETED REPAYMENTS _ _ - - (375,000) - (925,000) (1,300,000) NET INCREASE (DECREASE) 759,695 211,190 (255,412) 75,684 4,175,149 4,966,307 OPERATIVE AGREEMENTS,1011194 75,800,749 3,125,269 3,011,302 1,397,721 871,097 84,208,138 OPERATIVE AGREEMENTS, 9130195 $76,560,444 $ 3,336,459 $ 2,755.890 $ 1.473,405 $ 5.046,246 $ 89.172,444 AMENDMENT NO 14 TO OPERATIVE AGREEMENT NO 1 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR IMPLEMENTATION OF THE TALBERT/BEACH PROJECT AREA Operative Agreement No 1 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Talbert/Beach project area is hereby amended as follows Section 7 is amended to read as follows SECTION 7 In addition to the above stated assistance provided by the City to the Agency the Agency debt is as follows Previous Balance $3 125 269 Increase 158 393 Increased 10/1/94 to 6/30/95 Increase 52,798 Increased 7/1/95 to 9/30/95 New Balance $3 336 460 Such new balance of $3 336 460 represents principal and accrued interest through September 30 1995 These sums shall be a debt of the Agency to the City and bear simple interest at the rate of 6% per annum with the exception of interest on general fund indirect advances and land sales which accrue interest at zero percent Approved by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the �ncl day of -fAJAj-hJ 1995 ATTEST City Clerk/Agency Clerk !e'rf-QS • • • I - M,- • Mayor/Chairperson Pro Tern APPROVED AS TO FORM City Attorney/Agency Counsel HF:KVVED DefSuty City Services AdminAtrative 7/k/opaagree/9/13/95 AMENDMENT NO 14 TO OPERATIVE AGREEMENT NO 2 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR IMPLEMENTATION OF THE MAIN/PIER PROJECT AREA Operative Agreement No 2 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Main/Pier project area is hereby amended as follows Section 7 is amended to read as follows SECTION 7 In addition to the above stated assistance provided by the City to the Agency the Agency debt is as follows Previous Balance $75 800 749 Increase 569 271 Increased 0/1/94 to 6/30/95 Increase 190,424 Increased 7/1/95 to 9/30/95 New Balance $76 560 444 Such new balance of $76 560 444 represents principal and accrued interest through September 30 1995 These sums shall be a debt of the Agency to the City and bear simple interest at the rate of 6% per annum with the exception of interest on general fund land sales and indirect advances which accrue interest at zero percent Approved by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the ZMJ day of 0c,L, t 1995 ATTG W�� w City Clerk/Agency Clerk +0 -� R IEWED AND APP V D City Administrator hief xecutive Dir or Mayor/Chairperson Pro T,en. APPROVED AS TO FORM / k30ty Attorney/Agency Counsel a1 It;AUKM40 A P VOaGE D/ IT / Deotafy City Ad-miIstrator/Admini Services 7/k/opaagree/9/13/95 AMENDMENT NO 14 TO OPERATIVE AGREEMENT NO 3 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR IMPLEMENTATION OF THE OAKVIEW PROJECT AREA Operative Agreement No 3 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Oakview project area is hereby amended as follows Section 7 is amended to read as follows SECTION 7 - in addition to the above stated assistance provided by the City to the Agency the Agency debt is as follows Previous Balance $3 011 302 Decrease (285 309) Decreased 7/1/94 to 6/30/95 Increase 29,891 Decreased 7/1/95 to 9/30/95 New Balance $2 755 890 Such new balance of $2 755 890 represents principal and accrued interest through September 30 1995 These sums shall be a debt of the Agency to the City and bear simple interest at the rate of 6% per annum with the exception of interest on general fund land sales and indirect advances which accrue interest at zero percent Approved by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the ;.1,.�1 day of 1995 ATTESTXO" UGC_ . City Clerk/Agency Clerk i6/y fs' V AP OV City Administrato /Cif xecu ive D ctor Mayor/Chairperson Pr* Tern APPROVE AS AS TO FORM C/ity Attorney/Agen cy Counsel Q AT�D A96 APPIZOWED y / D uty City Ad i istrator/Administrate Services 7/k/opaagree/9/13/95 AMENDMENT NO 13 TO OPERATIVE AGREEMENT NO 4 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR IMPLEMENTATION OF THE YORKTOWN/LAKE PROJECT AREA Operative Agreement No 4 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Yorktown/Lake project areas is hereby amended as follows Section 7 is amended to read as follows SECTION 7 - in addition to the above stated assistance provided by the City to the Agency, the Agency debt is as follows Previous Balance $1 397 721 Increase 56 763 Increased 7/1/94 to 6/30/95 Increase 18,921 Increased 7/1/95 to 9/30/95 New Balance $1 473 405 Such new balance of $1 473 405 represents principal and accrued interest through September 30 1995 These sums shall be a debt of the Agency to the City and bear simple interest at the rate of 6% per annum with the exception of interest on general fund indirect advances and land sales which bear interest at zero percent Approved by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the day of�- 1995 ATTEST Mayor/Chairperson Pro APPROVED AS TO FORM Services 10 7/k/opaagree/9/13/95 AMENDMENT NO 13 TO OPERATIVE AGREEMENT NO 5 BETWEEN THE CITY OF HUNTINGTON BEACH AND THE HUNTINGTON BEACH REDEVELOPMENT AGENCY FOR IMPLEMENTATION OF THE HUNTINGTON CENTER PROJECT AREA Operative Agreement No 5 between the City of Huntington Beach and the Huntington Beach Redevelopment Agency for the implementation of the Huntington Center project area is hereby amended as follows Section 7 is amended to read as follows SECTION 7 - In addition to the above stated assistance provided by the City to the Agency the Agency debt is as follows Previous Balance $871 097 Decrease (849 888) Decreased 7/1/94 to 6/30/95 Increase 5,025,037 Decreased 9/1/95 to 9/30/95 New Balance $5 046 246 Such new balance of $5 046 246 represents principal and accrued interest through September 30 1995 These sums shall be a debt of the Agency to the City and bear simple interest at the rate of 6% per annum with the exception of interest on general fund indirect advances and land sales which accrue interest at zero percent Approved by the City Council of the City of Huntington Beach and the Redevelopment Agency at a regular meeting thereof held on the a day of 1995 ATTEST Mayor/Chairperson Pro 7.-,, APPROVED S TO FORM City Clerk/Agency Clerk /m -'f -?S` IE ND V D ity Attor y/ gency Coun el g NITIAT AP Q � i v Admin a or/ hief Executiv erector r.., D'LTp—uty City Services Admini 7/k/opaagree/9/13/95 V O L RCA ROUTING -SHEET INITIATING DEPARTMENT: ADMIN SVCS SUBJECT: f REDEVELOPMENT AGENCY OPERATIVE AGREEMENTS' COUNCIL MEETING DATE: O RCA ATTACHMENTS STATUS Ordinance w/exhibits & legislative draft if a licable Not Applicable Resolution (w/exhibits & legislative draft if a licable Not A licable Tract Map, Location Map and/or other Exhibits Not Applicable Contract/Agreement (w/exhibits if applicable) Si ned in full by the City Attome Attached Subleases, Third Party Agreements, etc. (Apeoved as to form by gLtZ Attorne Not Applicable Certificates of Insurance (Approved by the City Attorne Not Applicable Financial lm act Statement Unbud et, over $5,000 Not Applicable Bonds If applicable) Not Applicable Staff Report If applicable) Attached Commission, Board or Committee Report If applicable) Not Applicable Findings/Conditions for Approval and/or Denial Not Applicable EXPLANATION FOR MISSING ATTACHMENTS REVIEWED RETURNED FORVIAIMED Administrative Staff Assistant City Administrator Initial City Administrator Initial Cit Clerk EXPLANATION FOR RETURN OF ITEM: