Agenda

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Special Finance Committee Meeting

Meeting Date:	04/24/2018
FROM:	Bill Gallardo

Subject:

Budget Adjustments to the Successor Agency to the Brea Redevelopment Agency Operating Program Budgets for Fiscal Year 2017-18

RECOMMENDATION

City Council, as Successor Agency: Adopt resolution to adjust the FY 2017-18 Successor Agency to the Brea Redevelopment Agency Operating Budget.

BACKGROUND/DISCUSSION

Budget adjustments are presented to the City Council periodically for review. These adjustments represent the appropriation of items previously approved by the City Council during the current fiscal year, or staff recommended budget adjustments for City Council consideration. The recommended adjustments to the Successor Agency to Brea Redevelopment Agency Operating Budget are listed in Exhibit A. These adjustments are separated by funding source and the accounts are identified as either revenue or expenditure accounts.

In May 2017, the Gateway Center pre-paid its lease obligation. This budget adjustment removes the FY 2017-18 budgeted amount of $296,000 for the annual lease revenue and the corresponding transfers.

Also, included in these budget adjustments is the sale of the property located at 323 N. Brea Blvd. Total proceeds from this transactions were $749,741. These proceeds were sent to the County of Orange and distributed to the various taxing agencies (the County, City of Brea, Public Education entities, etc.).

Lastly, in October 2017, the City Council as the Successor Agency authorized the issuance and sale of Tax Allocation Bonds to refinance outstanding 2011 Bonds of the former Brea Redevelopment Agency (2011 Bonds) relating to Project Area AB. Last November, the Successor Agency issued the 2017 Series A Tax Allocation Refunding Bonds totaling $45,908,802 which were issued at a premium of $5,294,360. The bond proceeds and premium were combined with $7,432,900 of remaining bond proceeds and $3,010,700 of reserve funds from the 2011 Bonds for a total of $61,646,762. These funds were used for the repayment of bonds, $60,951,442 and costs of issuance, $695,320.

SUMMARY/FISCAL IMPACT

The fiscal impact of Exhibit A to the Successor Agency to the Brea Redevelopment Agency FY 2017-18 budget is a net increase in expenditures and transfers-out of $7,728,900. This represents the reduction in revenues from the pre-paid lease along with expenditure of the 2011 Bond proceeds used to refinance the 2011 Bonds.

RESPECTFULLY SUBMITTED

William Gallardo, City Manager
Prepared by: Lee Squire, Financial Services Manager
Concurrence: David Crabtree, Community Development Director

Attachments
Resolution - SA
Exhibit A