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Home My WebLink About3/7/2007 - STAFF REPORTS - RA.3. iy o V N k # ��eM2kR `fin 4 c4<iFORN�P CITY COUNCIUREDEVELOPMENT AGENCY STAFF REPORT DATE: March 7, 2007 CONSENT CALENDAR SUBJECT: REPAYMENT AND RELENDING OF CRA LOANS FROM: David H. Ready, City Manager BY: Department of Finance and Treasury SUMMARY This is a "housekeeping" item to transfer cash to the Merged Area #1 and #2 Capital Project Funds from the Merged Area #1 and #2 Debt Service Funds, via a repayment of loans to and reloaning of funds from the General Fund. RECOMMENDATION: CITY COUNCIL RECOMMENDATION: 1) Approve the prior loan repayments and the new loans (at 6% interest) from the General Fund to Merged Area #1 Capital Projects of$1,466,785 and Merged Area #2 Capital Projects of $545,000, effective March 7, 2007. 2) Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2006-07 FISCAL YEAR." 3) Adopt Resolution No. "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2006-07 FISCAL YEAR." iTENi NO. r — City Council Staff Report March 7, 2007—Page 2 Repayment and Lending of CRA Loans REDEVELOPMENT AGENCY RECOMMENDATION: 1) Accept the loans of$1,466,785 and $545,000 and approve repayment of the prior loans to the City of Palm Springs. 2) Adopt Resolution No. "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2006- 07 FISCAL YEAR. 3) Adopt Resolution No. "A RESOLUTION OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2006- 07 FISCAL YEAR. BACKGROUND: State rules governing Redevelopment accounting do not allow transfers between project areas or even between a single project area's debt service fund and capital projects fund. If a project area's capital projects fund has a negative cash balance and its debt service fund has positive cash balance, the simplest way to "transfer' cash between the two funds is to repay an existing loan and make a new loan. That is the situation in the proposed budget amendment resolutions. The purpose of all these loans is to cover projected negative cash balances in the Capital Projects Funds. The net indebtedness of the CRA project areas remain the same. The net effect on the General Fund is zero. The attached resolutions amending the budget accomplish the necessary tracking to comply with the accounting rules. Cr ' A. raves John Paymdpci trector of Finance $Treasurer �D or o development Tr Butrlaff David H. Ready��} istant Ci nager- City Manager/Ex4 ive Director Administrative ices Attachments: Resolutions RESOLUTION NO. OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2006-07 FISCAL YEAR. WHEREAS Resolution 21611 approving the budgetforthe fiscal year2006-07was adopted on June 7,2006; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 21611, adopting the budget for the 2006-07 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount 12416 No. 001 Redevelopment $545,000 General Fund Agency Loans Receivable Purpose: New loan to Merged Area#2 Capital &Admin to cover on-going costs. SECTION 2. SOURCE: Merged Area #2 is concurrently repaying $545,000 in loans from the General Fund. Fund Activity Account Amount No. 811 Merged Area #2 29301 $545,000 Capital & Admin Fund Balance ADOPTED THIS day of , 2007. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote,- AYES: NOES: ABSENT: ABSTAIN. James Thompson, City Clerk City of Palm Springs, California RESOLUTION N0, OF THE CITY COUNCIL OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2006-07 FISCAL YEAR. WHEREAS Resolution 21611 approving the budget for the fiscal year 2006-07 was adopted on June 7,2006; and WHEREAS the City Manager has recommended, and the City Council desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 21611, adopting the budget for the 2006-07 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount 12416 No. 001 Redevelopment $1,466,785 General Fund Agency Loans Receivable Purpose: New loan to Merged Area#1 Capital &Admin to cover on-going costs. SECTION 2. SOURCE: Merged Area#1 is concurrently repaying $1,466,785 in loans from the General Fund. Fund Activity Account Amount No. 811 Merged Area #1 29301 $1,466,785 -Capital &Admin Fund Balance ADOPTE❑ THIS day of , 2007. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote- AYES' NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2006-07 FISCAL YEAR. WHEREAS Resolution 1301 approving the budget for the fiscal year 2006-07 was adopted on June 7, 2006: and WHEREAS the Executive Director has recommended, and the Agency desires to approve, certain amendments to said budget, NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution,and that Resolution 1301, adopting the budget for the 2006-07 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount No, 001 12416 General Fund Redevelopment Agency Loans $545,000 Receivable Purpose. New loan to Merged Area 92 Capital &Admin to cover on-going costs. SECTION 2. SOURCE Merged Area 42 is concurrently repaying $545,000 in Loans from the General Fund. Fund Activity Account Amount No. 812 Merged Area #2 29301 Capital &Admin Fund Balance $545,000 ADOPTED THIS day of 2007. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote: AYES: NOES! ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California RESOLUTION NO. OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE BUDGET FOR THE 2006-07 FISCAL YEAR. WHEREAS Resolution 1301 approving the budget for the fiscal year 2006-07 was adopted on June 7, 2006; and WHEREAS the Executive Director has recommended, and the Agency desires to approve, certain amendments to said budget; NOW THEREFORE BE IT RESOLVED that the Director of Finance is authorized to record inter-fund cash transfers as required in accordance with this Resolution, and that Resolution 1301, adopting the budget for the 2006-07 fiscal year is hereby amended as follows: SECTION 1. ADDITIONS Fund Activity Account Amount No. 001 12416 General Fund Redevelopment Agency Loans $1,466,785 Receivable Purpose: New loan to Merged Area#1 Capital &Admin to cover on-going costs. SECTION 2. SOURCE Merged Area #1 is concurrently repaying $1,466,785 in Loans from the General Fund. Fund Activity Account Amount No. 811 Merged Area#1 29301 Capital &Admin Fund Balance $1,466,785 ADOPTED THIS day of 2007. David H. Ready, City Manager ATTEST: James Thompson, City Clerk CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, City Clerk of the City of Palm Springs, hereby certify that Resolution No. is a full, true and correct copy, and was duly adopted at a regular meeting of the City Council of the City of Palm Springs on by the following vote- AYES- NOES: ABSENT: ABSTAIN: James Thompson, City Clerk City of Palm Springs, California