HomeMy WebLinkAbout5/19/2004 - STAFF REPORTS (3) DATE: May 19, 2004
TO: Community Redevelopment Agency
FROM: Director of Finance &Treasurer/Director of Redevelopment
REPAYMENT AND RELENDING OF CRA LOANS
RECOMMENDATION:
It is recommended that the Community Redevelopment Agency approve the following loan
repayments and new loans (at 6% interest) from the General Fund, effective May 19, 2004
Loan Repay New Loan
Merged Area#1 Debt Service $700,000
Merged Area#1 Capital Project $700,000
Merged Area#2 Debt Service $300,000
Merged Area#2 Capital Projects $300,000
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.
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 c mply with
the accounting rules.' I,
J 4lu J l� �? 1/iFZ�41w4vin -
Thomas M. Kanarr ohn ymon
Director of Finance&Treasurer r r of Re lopment
APPROVED
David H. Ready $
Executive Director
Attachments: Resolutions C rqW
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF PALM SPRINGS, CALIFORNIA. AMENDING THE
BUDGET FOR THE 2003-04 FISCAL YEAR.
WHEREAS Resolution 1216 approving the budget for the fiscal year 2003-04 was adopted
on June 4, 2003; 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
1216, adopting the budget for the 2003-04 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
No. 001 12416 $300,000
General Fund Redevelopment
Agency Loans
Receivable
Purpose: New loan (at 6%, effective 5/19/04) to Merged Area #2 to cover on-going
costs.
SECTION 2. SOURCE Merged Area #2 is concurrently paying back $300,000 loans
from the General Fund.
Fund Activity Account Amount
No. 811 29301 $300,000
Merged Area #2 Fund Balance
Capital &Admin
Adopted this day of 12004
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
By
Assistant Secretary Chairman
REVIEWED AND APPROVED AS TO FORM
C (��-
RESOLUTION NO.
OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE
CITY OF PALM SPRINGS, CALIFORNIA, AMENDING THE
BUDGET FOR THE 2003-04 FISCAL YEAR.
WHEREAS Resolution 1216 approving the budget for the fiscal year 2003-04 was adopted
on June 4, 2003; 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
1216, adopting the budget for the 2003-04 fiscal year is hereby amended as follows:
SECTION 1. ADDITIONS
Fund Activity Account Amount
No. 001 12416 $700,000
General Fund Redevelopment
Agency Loans
Receivable
Purpose: New loan (at 6%, effective 5/19/04) to Merged Area #1 to cover on-going
administration costs and the cost of the Desert Shadows OPA.
SECTION 2. SOURCE Merged Area#1 is concurrently paying back $700,000 loans
from the General Fund.
Fund Activity Account Amount
No. 811 29301 $700,000
Merged Area#1 Fund Balance
Capital &Admin
Adopted this day of 2004
AYES:
NOES:
ABSENT:
ATTEST: COMMUNITY REDEVELOPMENT AGENCY
OF THE CITY OF PALM SPRINGS
By
Assistant Secretary Chairman
REVIEWED AND APPROVED AS TO FORM