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Transmittal - 9/16/20211.Resolution:RDA Budget Amendment No.1 for Fiscal Year 2021-22 Draft:The Board will set the date of Tuesday,October 12,2021 at 2 p.m.to accept public comment and consider adopting a resolution that would amend the final budget of the Redevelopment Agency of Salt Lake City for Fiscal Year 2021-22.Budget amendments happen several times each year to reflect adjustments in the Redevelopment Agency’s budget,including proposed project additions and modifications,and staffing changes, among other items. DEPARTMENT OF FINANCE POLICY AND BUDGET DIVISION 451 SOUTH STATE STREET, ROOM 238 PO BOX 145467, SALT LAKE CITY, UTAH 84114-5455 TEL 801-535-6394 ERIN MENDENHALL Mayor MARY BETH THOMPSON Chief Financial Officer CITY COUNCIL TRANSMITTAL ___________________________________ Date Received: ________________ Rachel Otto, Chief of Staff Date sent to Council: ___________ ______________________________________________________________________________ TO: Salt Lake City RDA Board DATE: August 30, 2021 Ana Valdemoros, RDA Chair FROM: Mary Beth Thompson, Chief Financial Officer SUBJECT: RDA Budget Amendment #1, FY2021-22 SPONSOR: NA STAFF CONTACT: John Vuyk, Budget Director (801) 535-6394 or Mary Beth Thompson (801) 535-6403 or Mike Burns (801) 565-6461 or Danny Walz DOCUMENT TYPE: Budget Amendment Resolution RECOMMENDATION: Review and discuss the proposed First Amendment to the Annual RDA Budget for Fiscal Year 2022. Set public hearing date for adoption of the amendment. BUDGET IMPACT: REVENUE EXPENSE RDA FUND ($ 1,255,215.00) ($ 1,298,467.00) RDA CIP FUND 0.00 0.00 TOTAL ($ 1,255,215.00) ($ 1,298,467.00) rachel otto (Aug 30, 2021 11:57 MDT) EXECUTIVE SUMMARY: The purpose of the First Amendment (“Amendment”) is to allocate funding to match Council adopted initiatives from the budget creation. A summary spreadsheet document, outlining proposed budget changes is attached. The Administration requests this document be modified based on the decisions of the Council. The budget opening is separated in eight different categories: A. New Budget Items B. Grants for Existing Staff Resources C. Grants for New Staff Resources D. Housekeeping Items E. Grants Requiring No New Staff Resources F. Donations G. Council Consent Agenda Grant Awards I. Council Added Items ATTACHMENTS: A. Resolution B. Budget Amendment #1 Summary Spreadsheet PUBLIC PROCESS: Public Hearing 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO__________ First Budget Amendment RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY (“RDA”) AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2021-2022 WHEREAS, on June 15, 2021, the RDA Board of Directors (“Board”) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2021 and ending June 30, 2022, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's budget have been accomplished. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1. Purpose. The purpose of this Resolution is to amend the final budget of the RDA, as approved, ratified and finalized by the RDA Board on June 15, 2021. 2. Adoption of Amendments. The budget amendments shown on Exhibit A as “Board Approved” are hereby adopted and incorporated into the budget of the RDA. 3. Filing of copies of the Budget Amendments. The Salt Lake City Finance Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said budget amendments in the office of the Finance Department, the RDA, and the office of the City Recorder which amendments shall be available for public inspection. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, this ___ day of ______________, 2021, to be effective upon adoption. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Kimberly Chytraus Date:____________________________ August 25, 2021 2 The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. _________________________________ Erin Mendenhall, Executive Director Attest: _________________________ City Recorder 3 EXHIBIT A TO RESOLUTION [Attach Board’s Final Approved Budget Amendment] Initiative Number/Name Project Area Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs 1 RDA Budget Amendment PHF (1,000,000.00) - One-time - 1 RDA Budget Amendment PIF (255,215.00) (255,215.00) One-time - 1 RDA Budget Amendment NT - (2,043,252.00) One-time - 1 RDA Budget Amendment CWH - - One-time - 1 RDA Budget Amendment NT-SIF - 1,938,252.00 One-time - 1 RDA Budget Amendment NT-CIP - (788,037.00) One-time - 1 RDA Budget Amendment NT-CP - (255,215.00) One-time - CC - 105,000.00 One-time - - Total of Budget Amendment Items (1,255,215.00) (1,298,467.00) - - Total by Fund, Budget Amendment #1: Redevelopment Agency RDA (1,255,215.00) (1,298,467.00) - - Total of Budget Amendment Items (1,255,215.00) (1,298,467.00) - - - Current Year Budget Summary, provided for information only FY 2019-20 Budget, Including Budget Amendments Fiscal Year 2021-22 RDA Budget Amendment #1 Section G: Board Consent Agenda -- Grant Awards Section I: Board Added Items Section A: New Items Section B: Grants for Existing Staff Resources Section C: Grants for New Staff Resources Section D: Housekeeping Section E: Grants Requiring No New Staff Resources Section F: Donations Board ApprovedAdministration Proposed 1 Initiative Number/Name Project Area Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One- time FTEs Fiscal Year 2021-22 RDA Budget Amendment #1 Board ApprovedAdministration Proposed FY 2021-22 Adopted Budget RDA BA #1 Total Total To-Date Redevelopment Agency 61,909,808 (1,298,467) 60,611,341 Redevelopment Agency CIP - - Total of Budget Amendment Items 61,909,808 (1,298,467) 60,611,341 Adopted __/__/____ Certification Budget Manager Deputy Director, City Council/RDA Board Contingent Appropriation 2 REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV ꞏ WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 ꞏ FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director STAFF MEMO DATE: August 26, 2021 PREPARED BY: Erin Cunningham RE: RDA Budget Amendment #1, FY 2021-2022 REQUESTED ACTION: Discuss and consider the adoption of the proposed First Amendment to the Annual RDA Budget for Fiscal Year 2022. BUDGET IMPACTS: The First Amendment identifies reallocations of funds in the North Temple Project Area, Primary Housing Fund, Program Income Fund, and Revolving Loan Fund in the Fiscal Year 2022 Budget. The amendment also impacts the holding accounts for the Program Income Fund North Temple Catalytic Project and the North Temple Catalytic Project from prior year budgets. EXECUTIVE SUMMARY: The purpose of the First Amendment (“Amendment”) is to adjust allocations to the North Temple Project Area, Primary Housing Fund, Program Income Fund, and the Revolving Loan Funds. The Amendment modifies the allocations for the North Temple Strategic Intervention accounts while ensuring compliance with Utah Code Section 17C, the RDA Housing Funds Policy, and internal procedures regarding the reallocation of existing RDA holding accounts. The Agency is requesting two additional amendments: •$116,000 of the available amount to lend budget in the Revolving Loan Fund to be reallocated to provide relocation assistance to Utah Theater tenants. •$105,000 of the available North Temple Catalytic Project funds to be reallocated to fund the City Creek daylighting design. ANALYSIS & ISSUES: North Temple Project Area Fund Transfers: With the Fiscal Year 2022 Budget, the RDA Board created a holding account for the North Temple Strategic Intervention Fund. Funded through the North Temple Project Area, the sources of funds included revenue from tax increment, interest income and internal funds from the Agency’s Primary Housing Fund, Program Income Fund, and North Temple Catalytic Project holding accounts as well as external funds from the City’s General Fund and Debt Service Fund Class 81 North Temple Viaduct. The Amendment remediates the following three issues related to the internal and external fund transfers: 1. Utah Code 17C Compliance: Section 17C-1-412(3) of Utah Code states “The agency shall create a housing fund and separately account for the agency’s housing allocation, together with all interest earned by the housing allocation and all payments or repayments for loans, advances, or grants from the housing allocation.” Since the Primary Housing Fund receives the required housing allocations from several project areas transferring any money from housing funds into a specific project area fund violates this provision. 2. RDA Housing Funds Policy Compliance: In February 2021, the RDA Board approved the RDA Housing Funds Allocation Policy. The purpose of the policy is to create the separate housing funds necessary to allocate and monitor the various sources of funds in accordance with their respective requirements. Along with the Primary Housing Fund, the policy also established the Secondary Housing Fund (meets Section 17C-1-411(2)(a) for discretionary housing funds), NWQ Housing Fund (to receive the statutory Inland Port housing allocations) and the Housing Development Fund (to receive Funding our Future funds or other misc. housing contributions). The creation of the separate funds improved our alignment with statutory requirements as well as transparency of how those funds are spent and tracking or any repayment back into the fund. The transfer of housing funds into a specific project area account does not comply with our policy. 3. Procedures for Use of Internal Holding Accounts and Fund Balances: The reallocation or use of project holding accounts from previous budgets and fund balances is not generally included in the annual budget process. Rather, the RDA Board could take a straw poll or similar approval method to reallocate and authorize use of the funds. The proposed Amendment would result in the following changes to the Fiscal Year 2022 Budget, as it relates to funding the transfers into the respective North Temple Strategic Intervention Funds allocations: North Temple Revenue and Other Sources Adopted Budget Proposed Change Proposed Budget w/Amendment Transfer In from Primary Housing Fund (One-time) 1,000,000 (1,000,000) - Transfer In from Program Income Fund North Temple Catalytic Project Holding Account (One-time) 255,215 (255,215) - Use of North Temple Catalytic Project Holding Account (One-time) 788,037 (788,037) - Total Revenue and Other Sources 2,043,252 (2,043,252) - Expenses and Other Uses North Temple Strategic Intervention Fund -{Holding Account}- 4,001,658 (2,043,252) 1,958,406 Total Expenses and Other Uses 4,001,658 (2,043,252) 1,958,406 Primary Housing Fund (formerly Citywide Housing Fund) Revenue and Other Sources Adopted Budget Proposed Change Proposed Budget w/Amendment Total Revenue and Other Sources 1,498,627 - 1,498,627 Expenses and Other Uses Transfer Out to North Temple Project Area (One-time) 1,000,000 (1,000,000) - North Temple Strategic Intervention Fund -{Holding Account}- 1,000,000 1,000,000 Total Expenses and Other Uses 1,000,000 -1,000,000 Program Income Fund Revenue and Other Sources Adopted Budget Proposed Change Proposed Budget w/Amendment Use of North Temple Catalytic Project Holding Account (One-time) 255,215 (255,215) - Total Revenue and Other Sources 255,215 (255,215) - Expenses and Other Uses Transfer Out to North Temple Project Area (One-time) 255,215 (255,215) - Total Expenses and Other Uses 255,215 (255,215) - Revolving Loan Fund Reallocation: Due to the upcoming sale of the Utah Theater, current tenants will be required to vacate the premises. The Agency is proposing the use of $116,000 of the funds available to lend in the Revolving Loan Fund to assist these tenants in securing new spaces for their businesses. The proposed allocation represents the estimated amount of one year of downtown market rents for each tenant’s respective square footage. The funds could be used to cover the increased amount of rent as well as relocation expenses. Revolving Loan Fund Budget Changes Revenue and Other Sources Adopted Budget Proposed Change Proposed Budget w/Amendment Total Revenue and Other Sources 550,000 -550,000 Expenses and Other Uses Available to Lend 550,000 (116,000) 434,000 Relocation Assistance to Utah Theater Tenants Fund 116,000 116,000 Total Expenses and Other Uses 550,000 - 550,000 Reallocation of Project Holding Accounts: As the Program Income Fund North Temple Catalytic Project and the North Temple Catalytic Project Holding Accounts were transferred into the Agency’s annual budget, the above changes result in the reversal of those allocations to the North Temple Strategic Intervention Fund holding account. To comply with the procedures for use of internal holding accounts and fund balances, the Agency recommends a straw poll to reallocate the funds into North Temple Strategic Intervention Fund, with a request for one change. The RDA has been working closely with Seven Canyons Trust to implement the recommendations of the 2020 City Creek Daylighting Feasibility Study by engaging a consultant to design a stream channel for a portion of City Creek’s flow in the Folsom Corridor. Seven Canyons Trust has raised $95,000 for this phase of the project; the RDA proposes using $105,000 of Program Income Fund North Temple Catalytic Project Holding Account to provide a total of $200,000 for a scope of work that includes technical analysis, community engagement, conceptual design, cost estimating, and maintenance recommendations. The project will receive input and guidance from a technical advisory committee that includes SLC representatives from Public Lands, Public Utilities, Engineering, Transportation, and Planning, and water resources and sustainable infrastructure experts from the Seven Canyons Trust Board of Directors, Utah State University, the University of Utah, and Salt Lake County. The resulting change from both the Amendment proposed above and the reallocation of project holding accounts are as follows: North Temple Strategic Intervention Funds Source Approved Budget Change Total Funding North Temple Project Area 4,001,658 (2,043,252) 1,958,406 Primary Housing Fund 1,000,000 1,000,000 Program Income Fund North Temple Catalytic Project Holding Account 150,215 150,215 North Temple Catalytic Project Holding Account 788,037 788,037 Total 4,001,658 (105,000) 3,896,658 City Creek Daylighting Design (Folsom Trail) Source Approved Budget Change Total Funding North Temple Strategic Intervention Funds [Originally from the Program Income Fund North Temple Catalytic Project Holding Account] -105,000 105,000 Total -105,000 105,000 PREVIOUS BOARD ACTION: Approval of the Fiscal Year 2021-2022 Budget. ATTACHMENTS: A.Resolution B.Budget Amendment Flow Charts 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO__________ First Budget Amendment RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY (“RDA”) AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2021-2022 WHEREAS, on June 15, 2021, the RDA Board of Directors (“Board”) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2021 and ending June 30, 2022, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's budget have been accomplished. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City: 1. Purpose. The purpose of this Resolution is to amend the final budget of the RDA, as approved, ratified and finalized by the RDA Board on June 15, 2021. 2.Adoption of Amendments. The budget amendments shown on Exhibit A as “Board Approved” are hereby adopted and incorporated into the budget of the RDA. 3.Filing of copies of the Budget Amendments. The Salt Lake City Finance Department, on behalf of the RDA, is authorized and directed to certify and file a copy of said budget amendments in the office of the Finance Department, the RDA, and the office of the City Recorder which amendments shall be available for public inspection. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, Utah, this ___ day of ______________, 2021, to be effective upon adoption. ________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Kimberly Chytraus Date:____________________________ August 25, 2021 2 The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. _________________________________ Erin Mendenhall, Executive Director Attest: _________________________ City Recorder 3 EXHIBIT A TO RESOLUTION [Attach Board’s Final Approved Budget Amendment] Existing RDA Holding AccountsNorth Temple Strategic Intervention Funds4,001,658FY22 RDA Operations BudgetFY22 Approved BudgetNorth Temple Strategic Intervention Funds External Fund TransfersGeneral Fund: 1,000,000Fund Class 81: 669,138Program Income FundTransfer In/Out: 255,215Primary Housing FundTransfer Out: 1,000,000North Temple Project AreaTax Increment: 274,268*Interest: 15,000Transfers In: 3,712,390 PIF –North Temple Catalytic ProjectHolding Account: 255,215 North Temple Catalytic ProjectHolding Account: 788,037FY22* Total North Temple $435,346 tax increment received, but only $274,268  is transferred into NTSIF after Primary Housing Fund and 10% School Construction Fund contributions. Existing RDA Holding AccountsNorth Temple Strategic Intervention Funds4,001,658FY22 RDA Operations BudgetFY22 Approved BudgetNorth Temple Strategic Intervention Funds External Fund TransfersGeneral Fund: 1,000,000Fund Class 81: 669,138Primary Housing FundTransfer In: 1,000,000North Temple Project AreaTax Increment: 274,268*Interest: 15,000Transfers In: 1,669,138 PIF –North Temple Catalytic ProjectHolding Account: 150,215 North Temple Catalytic ProjectHolding Account: 788,037North Temple Strategic Intervention Funds3,896,658FY22City Creek Daylighting Fund105,000BA1City Creek Daylighting: 105,000*** Total North Temple $435,346 tax increment received, but only $274,268  is transferred into NTSIF after Primary Housing Fund and 10% School Construction Fund contributions.**Total after transferring $105,000 to City Creek Daylighting.