HomeMy WebLinkAboutTRANSFER $4.5 MILLION WITHIN REDEVELOPMENT AGENCY MERGED PRO4
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Council/Agency Meeting Held: G'
Deferred/Continued to:
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'f Appr ved ❑ Conditionally Approved ❑ Denied
City Jerk' Signature
Council Meeting Date: 11/6/2006
Department ID Number: FN 06-011
CITY OF HUNTINGTON BEACH
REQUEST FOR COUNCIL/REDEVELOPMENT AGENCY ACTION
SUBMITTED TO: HONORABLE MAYOR AND CITY COUNCIL / REDEVELOPMENT
AGENCY MEMBERS
SUBMITTED BY: PE ELOPE CULBRETH-GRAFT, A, CITY ADMINISTRATOR /
EXECUTIVE DIRECTOR
PREPARED BY: DAN T. VILLELLA, CPA, FINANCE DIRECTOR e111
STANLEY SMALEWITZ, DIRECTOR OF ECONOMIC DEVELOPMENT.
/ DEPUTY EXECUTIVE DIRECTOR
SUBJECT: APPROVE TRANSFER OF $4.5 MILLION WITHIN THE
REDEVELOPMENT AGENCY MERGED PROJECT AREA (CAPITAL
PROJECTS FUND TO DEBT SERVICE FUND)
Statement of Issue, Funding Source, Recommended Action, Alternative Action(s), Analysis, Environmental Status, Attachment(s)
Statement of Issue:
A transfer of $4.5 million between funds of the Redevelopment Agency Merged Project Area
to eliminate a negative balance in the Debt Service Fund at September 30, 2006.
Funding Source:
The funding source is the unappropriated fund balance of the Redevelopment Agency's
Capital Projects Fund (fund 305). However, this action is neutral since it is a transfer within a
project area.
Recommended Action: Motion to:
Approve a transfer of $4.5 million from the Merged Project Area's Capital Projects Fund to
the Merged Project Area's Debt Service Fund.
Alternative Action(s):
Do not approve the transfer of funds between the Capital Projects Fund and the Debt Service
Fund of the Merged Project Area in which case a deficit will remain in the Debt Service Fund.
ZE-3
REQUEST FOR CITY COUNCIL ACTION
MEETING DATE: 11/6/2006 DEPARTMENT ID NUMBER: FN 06-011
Analysis:
Redevelopment Agency accounting is a specialized field governed by the generally accepted
accounting principles, the California Redevelopment Law, and guidance issued by the
California Council of Municipal Accounting. Separate funds are required to record capital
projects and debt service expenditures. Money in the Debt Service fund (generally tax
increment revenue) can only be used for debt repayments for loans from the City, bonds,
pass -through payments, Agency agreements with developers, etc. Money in the Capital
Project fund can be used for projects, but can also be used to repay Agency's debt. For
reporting purposes, these two funds are combined in the City's Comprehensive Annual
Financial Report. In the Agency's separately issued financial statements however, these
funds are reported separately.
In the past, appropriations in excess of revenues were made out of the Merged Project
Area's Debt Service Fund with the knowledge that sufficient funds existed in the Merged
Project Area's Capital Project Fund to cover these deficits. Below is a schedule of the actual
fund balances in the Redevelopment Agency's Debt Service Fund, in the Capital Projects
Fund and the total for the last four years. Also shown are the results after the recommended
action.
2002-2003
2003-2004
2004-2005
2005-2006 — Before recommend action
Recommended action
Balance after recommended action
Capital
Debt Service
Projects
Total
$ (5,251)
$ 16,609 $
11,358
(4,028)
9,616
5,588
(3,452)
22,021
18,569
(3,940)
26,481
22,541
4,500
(4,500)
0
560
21,981
22,541
This proposed transfer of $4.5 million between the Capital Projects and Debt Service Funds
will eliminate the deficit in the Debt Service Fund at September 30, 2006, but does not
change the total project area's total fund balance.
Environmental Status:
Not Applicable
Attachment(s):
-2- 10/9/2006 11:29 AM
ATTACHMENT #1
e€you VT�E
CITY OF HUNTINGTON BEACH
INTERDEPARTMENTAL COMMUNICATION
FINANCE DEPARTMENT
TO: PENELOPE CULBRETH-GRAFT, DPA, CITY ADMINISTRATOR
FROM: DAN T. VILLELLA, CPA, FINANCE DIRECTOR
SUBJECT: FIS 2006-07- 2 Approve Transfer of $4.5 Million Within the
Redevelopment Agency Merged Project Area (Capital Projects Fund to
Debt Service Fund)
DATE: OCTOBER 2, 2006
As required by Resolution 4832, this Fiscal Impact Statement has been prepared for "Approve
Transfer of $4.5 Million Within the Merged Project Area .(Capital Projects Fund to Debt Service
Fund)"
If the City Council approves this action (total appropriation net appropriation zero), the estimated
fund balance of the Redevelopment Agency — Merged Project Area will not be affected.
Individually, the estimated Capital Projects Fund Balance at September 30, 2007 will be reduced to
$11,771,000, while the estimated Fund Balance of the Debt Service Fund at September 30, 2007
will be increased to $439,000.
E�
Dan T. Villella
Finance Director
RCA ROUTING SHEET
INITIATING DEPARTMENT:
FINANCE
SUBJECT:
Approve Transfer of $4.5 Million Within the Merged
Project Area
COUNCIL MEETING DATE:
November 6, 2006
RCA ATTACHMENTS
STATUS:
Ordinance (w/exhibits & legislative draft if applicable)
Attached
❑
Not Applicable
Resolution (w/exhibits & legislative draft if applicable)
Attached
Not Applicable
❑
Tract Map, Location Map and/or other Exhibits
Attached
❑
Not Applicable
Contract/Agreement (w/exhibits if applicable)
Attached
❑
(Signed in full by the City Attorney)
Not Applicable
Subleases, Third Party Agreements, etc.
Attached
❑
(Approved as to form by City Attorney)
Not Applicable
Certificates of Insurance (Approved by the City Attorney)
Attached
❑
Not Applicable
Fiscal Impact Statement (Unbudgeted, over $5,000)
Attached
❑
Not Applicable
Bonds (If applicable)
ttt ed
El
A
Nopucable
Staff Report (If applicable)
ttt
edNopucable
A
Commission, Board or Committee Report (If applicable)
Attached
❑
Not Applicable
Findings/Conditions for Approval and/or Denial
Attached
❑
Not Applicable
EXPLANATION FOR MISSING ATTACHMENTS
RCA Author: Robert Sedlak, Accounting Manager x5907, Carrie Gonzales x5630, Kati Von Holle
x5560