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Transmittal - 4/24/2023 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 RDA BOARD TRANSMITTAL ___________________________________ Date Received: ________________ Erin Mendenhall, Executive Director Date sent to Council: ___________ ______________________________________________________________________________ TO: Salt Lake City RDA Board DATE: April 24, 2023 Alejandro Puy, RDA Chair FROM: Mary Beth Thompson, Chief Financial Officer Danny Walz, RDA Chief Operating Officer SUBJECT: RDA Budget Amendment 3, FY2022-23-Retransmittal SPONSOR: NA STAFF CONTACT: Mary Beth Thompson (801) 535-6403 or Mike Burns (801) 565-6461 or Danny Walz (801) 535-7209 DOCUMENT TYPE: Budget Amendment Resolution RECOMMENDATION: Review and discuss the proposed fourth amendment to the Annual RDA Budget for Fiscal Year 2023. Accept public hearing date for adoption of the amendment. BUDGET IMPACT: REVENUE EXPENSE RDA FUND $ 536,038.00 $ 536,038.00 RDA CAPITAL FUND 9,875,400.46 9,875,400.46 TOTAL $ 10,411,438.46 $ 10,411,438.46 EXECUTIVE SUMMARY: The purpose of the third amendment (“amendment”) is to addresses the following items: 1. True up for tax increment received. 2. Other House Keeping items. A summary spreadsheet document, outlining proposed budget changes is attached. The Administration requests this document be modified based on the decisions of the Board. The budget opening contains one item: 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 #3 Summary Spreadsheet C. RDA Transmittal PUBLIC PROCESS: Public Hearing Initiative Number/Name Project Area Revenue Amount Expenditure Amount Revenue Amount Expenditure Amount Ongoing or One-time FTEs 1 Transfer In from General Fund for Housing Property Acquisition Cap PIF 4,000,000.00 4,000,000.00 1 True-up of Tax Increment revenues for FY'23 CBD (1,141,957.00) (1,141,957.00) One-time - 1 True-up of Tax Increment revenues for FY'23 Cap CBD (489,410.00) (489,410.00) One-time - 1 True-up of Tax Increment revenues for FY'23 Cap BL-70 2,226.00 2,226.00 One-time - 1 True-up of Tax Increment revenues for FY'23 BL-70 954.00 954.00 One-time - 1 True-up of Tax Increment revenues for FY'23 Cap DD 1,805,473.00 1,805,473.00 One-time - 1 True-up of Tax Increment revenues for FY'23 DD (514,215.00) (514,215.00) One-time - 1 True-up of Tax Increment revenues for FY'23 Cap GD 291,284.00 291,284.00 One-time - 1 True-up of Tax Increment revenues for FY'23 GD 156,845.00 156,845.00 One-time - 1 True-up of Tax Increment revenues for FY'23 NTV 1,514,910.00 1,514,910.00 One-time - 1 True-up of Tax Increment revenues for FY'23 Cap SS 1,364,709.00 1,364,709.00 One-time - 1 True-up of Tax Increment revenues for FY'23 SS 341,178.00 341,178.00 One-time - 1 True-up of Tax Increment revenues for FY'23 Cap 9L 775,212.00 775,212.00 One-time - 1 True-up of Tax Increment revenues for FY'23 9L 348,807.00 348,807.00 One-time - 1 True-up of Tax Increment revenues for FY'23 Cap NT 381,418.00 381,418.00 One-time - 1 True-up of Tax Increment revenues for FY'23 NT 163,465.00 163,465.00 One-time - 1 True-up of Tax Increment revenues for FY'23 SR 66,106.00 66,106.00 One-time - 1 True-up of Tax Increment revenues for FY'23 NWQ 421,224.00 421,224.00 One-time - 1 True-up of Tax Increment revenues for FY'23 Cap NWQ 46,801.00 46,801.00 One-time - 1 True-up of Tax Increment revenues for FY'23 Cap WCI 874,106.46 874,106.46 One-time - 1 True-up of Tax Increment revenues for FY'23 Cap 1P 798,313.00 798,313.00 One-time - 1 True-up of Tax Increment revenues for FY'23 Admin 560,721.00 560,721.00 One-time - 2 Adjust loan payment revenue (prin/int) forecast for Housing Develoment Trust Fund HDT (1,382,000.00) (1,382,000.00) One-time - 4 Return RLF short-term property acquisition loan Cap DD 25,268.00 25,268.00 One-time - - Total of Budget Amendment Items 10,411,438.46 10,411,438.46 - - Total by Fund, Budget Amendment #3: Redevelopment Agency Cap CBD (489,410.00) (489,410.00) Redevelopment Agency CBD (1,141,957.00) (1,141,957.00) Redevelopment Agency Cap BL-70 2,226.00 2,226.00 Redevelopment Agency BL-70 954.00 954.00 Redevelopment Agency Cap DD 1,830,741.00 1,830,741.00 Redevelopment Agency DD (514,215.00) (514,215.00) Redevelopment Agency Cap GD 291,284.00 291,284.00 Redevelopment Agency GD 156,845.00 156,845.00 Redevelopment Agency NTV 1,514,910.00 1,514,910.00 Redevelopment Agency Cap SS 1,364,709.00 1,364,709.00 Redevelopment Agency SS 341,178.00 341,178.00 Redevelopment Agency Cap 9L 775,212.00 775,212.00 Redevelopment Agency 9L 348,807.00 348,807.00 Redevelopment Agency Cap NT 381,418.00 381,418.00 Redevelopment Agency NT 163,465.00 163,465.00 Redevelopment Agency SR 66,106.00 66,106.00 Redevelopment Agency Cap NWQ 46,801.00 46,801.00 Redevelopment Agency NWQ 421,224.00 421,224.00 Redevelopment Agency Cap WCI 874,106.46 874,106.46 Redevelopment Agency Cap 1P 798,313.00 798,313.00 Redevelopment Agency Admin 560,721.00 560,721.00 Redevelopment Agency HDT (1,382,000.00) (1,382,000.00) Redevelopment Agency Cap PIF 4,000,000.00 4,000,000.00 Total of Budget Amendment Items 10,411,438.46 10,411,438.46 - - - Current Year Budget Summary, provided for information only FY 2022-23 Budget, Including Budget Amendments 3 Adopted Budget RDA BA #1Total RDA BA #2 Total RDA BA #3 Total Total To-Date Redevelopment Agency 50,172,718 - 2,546,805.00 - 52,719,523 Redevelopment Agency Cap 13,128,181 - (2,500,000.00) - 10,628,181 Total of Budget Amendment Items 63,300,899 - 46,805.00 - 63,347,704 Certification Budget Director Deputy Director, City Council/RDA Board Contingent Appropriation and Notes Fiscal Year 2022-23 RDA Budget Amendment #3 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 ApprovedStaff Requested 1 of 1 5/1/2023  4:32 PM REDEVELOPMENT AGENCY of SALT LAKE CITY SALT LAKE CITY CORPORATION 451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245 MAYOR ERIN MENDENHALL Executive Director DANNY WALZ Director STAFF MEMO DATE: April 22, 2023 PREPARED BY: Erin Cunningham, Financial Analyst RE: RDA Budget Amendment #3, FY 2022-2023 REQUESTED ACTION: Discuss and consider the adoption of the proposed Third Amendment to the Annual RDA Budget for Fiscal Year 2023. BUDGET IMPACTS: The Third Amendment identifies appropriations for Agency operations and projects across multiple funds. EXECUTIVE SUMMARY: The purpose of the briefing is to provide final budget proposals for the Third Amendment (“Amendment”). The proposed budget expenditure changes fall into two categories: 1. Obligated expenses that are often percentages of Tax Increment as defined by statutory or contractual obligations or other consistent expenses, such as: a. Taxing Entity Payments b. Tax Increment Reimbursements c. Primary Housing Contributions d. Administrative Expenses e. Operations and Maintenance Expenses 2. Discretionary expenses that fall into the following types: a. Capital reserve accounts for programs and projects previously approved by the Board b. Capital reserve accounts for new programs and projects recommended by the Agency c. Other expenses specific to needs of the fund ANALYSIS & ISSUES: This Budget Amendment provides for adjustments across multiple funds within the Agency budget for Fiscal Year 2023. Since the preliminary briefing provided in April, the Agency received the final tax increment distribution from the County, additional funds of $874,106 from the Utah Inland Port Authority and recognized a $4,000,000 transfer from the City’s General Fund. Final revenue and transfer amounts for each fund are in the 2023-BA3 column in the tables below, with variances from the budgeted and forecasted revenue. Revenue & Other Sources Adjustments Project Area Funds - Tax Increment Revenue The actual tax increment received was $620,681 less than the forecasted numbers the Agency received from the County back in December. However, the final tax increment received was $5,560,298 more than originally budgeted, at $46,422,496. Project Area Funds 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 Central Business District 27,573,150 26,029,306 (1,631,367) (87,523) 25,941,783 Block 70 1,922,323 1,926,029 3,180 (526) 1,925,503 Depot District 3,999,587 5,570,264 1,316,526 (254,151) 5,316,113 Granary District 633,546 1,087,324 448,129 (5,649) 1,081,675 North Temple 444,053 995,825 544,883 (6,889) 988,936 North Temple Viaduct 1,205,109 2,858,934 1,514,910 (138,915) 2,720,019 Northwest Quadrant 903,100 1,450,261 468,025 (79,136) 1,371,125 Stadler Rail 72,420 138,527 66,106 (1) 138,526 State Street 2,631,183 4,351,640 1,705,887 (14,570) 4,337,070 9-Line 1,477,727 2,635,067 1,124,019 (33,321) 2,601,746 Total 40,862,198 47,043,177 5,560,298 (620,681) 46,422,496 Project Area Funds – Total Revenue After reviewing the changes in tax increment revenue, the agency has calculated the total revenue changes generated within each project area. This total includes tax increment, interest on investments, rental income, and internal transfers. Project Area Funds 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 Central Business District 27,596,650 26,052,806 (1,631,367) (87,523) 25,965,283 Block 70 10,915,154 10,918,860 3,180 (526) 10,918,334 Depot District 4,049,587 5,620,264 1,316,526 (254,151) 5,366,113 Granary District 648,546 1,102,324 448,129 (5,649) 1,096,675 North Temple 449,053 1,000,825 544,883 (6,889) 993,936 North Temple Viaduct 1,206,609 2,860,434 1,514,910 (138,915) 2,721,519 Northwest Quadrant 908,100 1,455,261 468,025 (79,136) 1,376,125 Stadler Rail 72,920 139,027 66,106 (1) 139,026 State Street 2,631,183 4,351,640 1,705,887 (14,570) 4,337,070 9-Line 1,477,727 2,635,067 1,124,019 (33,321) 2,601,746 West Temple Gateway 5,000 5,000 0 0 5,000 West Capitol Hill 100,000 100,000 0 0 100,000 Total 50,060,529 56,241,508 5,560,298 (620,681) 55,620,827 Housing Funds Revenue The total tax increment decrease led to a $66,040 lower transfer from Project Area funds to the Primary Housing Fund than predicted, but still $2,398,193 higher than the original budget. As previously reported, the Housing Development Fund will drop by $1,382,000, due to lower loan payments from the Housing Trust Fund than initially anticipated. Additionally, the Westside Community Initiative will receive an extra $874,106 in affordable housing funds from the Utah Inland Port Authority. Housing Funds 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 Primary Housing Fund 1,599,880 2,464,233 798,313 (66,040) 2,398,193 Housing Development Fund 5,230,000 3,848,000 (1,382,000) 0 3,848,000 Westside Community Initiative 500,000 500,000 874,106 874,106 1,374,106 Total 7,329,880 6,812,233 290,419 808,066 7,620,299 Program Income Fund Revenue The City will transfer $4,000,000 from the City’s General Fund to the Agency’s Program Income Fund. Program Income 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 Program Income Fund 1,556,835 1,556,835 4,000,000 4,000,000 5,556,835 Total 1,556,835 1,556,835 4,000,000 4,000,000 5,556,835 Agency Operations Fund Revenue Despite a decrease of $87,950 in tax increment received compared to the forecast, there is still an increase of $560,721 compared to the budget. Agency Operations Fund 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 Redevelopment Agency Operations 3,998,655 4,647,326 560,721 (87,950) 4,559,376 Total 3,998,655 4,647,326 560,721 (87,950) 4,559,376 Obligated Expense & Other Uses Adjustments The increase in tax increment revenue, as compared to the budget, will lead to higher obligated expenses such as transfers to the Primary Housing and Administration Funds, Debt Service to Salt Lake City, School Construction Fund, and Administrative Fees payable to Salt Lake County. Inflation is expected to increase Miscellaneous Property Expenses, and it is recommended to allocate the remaining tax increment received in Block 70 to Regent Street Parking Structure reserves. However, expense reductions are expected due to the expiration of a tax increment reimbursement agreement in the Depot District and a decrease in taxing entity payments in the Central Business District. To segregate the funds for family and workforce housing, a new line description has been added, "Transfer to Primary Housing - School District Family & Workforce Housing," as per interlocal agreements with the Salt Lake City School District for the 9 Line and State Street project areas. The Agency's overall changes are summarized in the table below, totaling $1,370,689 more than the original budget. However, this is approximately $432,901 less than the forecasted amount. Further details regarding the changes by fund are available at the end of the document. Project Area Funds 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 Taxing Entity Payments 14,085,314 13,277,106 (900,229) (92,022) 13,185,085 County Administration Fee 26,996 35,374 (10,185) (18,563) 16,811 TI Reimbursements 4,090,606 3,532,931 (613,071) (55,396) 3,477,535 Transfer to Primary Housing Fund 1,523,880 2,012,286 416,966 (71,440) 1,940,846 Transfer to Administration 3,612,319 3,896,489 225,760 (58,410) 3,838,079 Transfer to Administration- City & SD Funds 381,336 698,671 312,546 (4,789) 693,882 Debt Service Payment to Salt Lake City 1,188,532 2,817,550 1,492,187 (136,831) 2,680,719 Miscellaneous Property Expense 1,130,000 1,155,000 25,000 0 1,155,000 Transfer to Primary Housing - School District Family & Workforce Housing 0 375,947 381,347 5,400 381,347 Capital Reserves - Regent Street Parking Structure 100,000 102,594 2,226 (368) 102,226 Capital Reserves - School Construction Fund (10%) 31,084 69,708 38,142 (482) 69,226 Total 26,170,067 27,973,655 1,370,689 (432,901) 27,540,755 Project Area Funds Discretionary Expense & Other Uses Adjustments After assessing the obligatory expenses, the Agency has identified an additional $4,189,611 in project area funds available for discretionary spending, as compared to the budget. To comply with state laws, it is crucial to maintain the separation of project area funds, and the Agency must ensure that each project area fund is used only for its designated purpose. It's worth noting that a program may receive support from multiple funds and is not limited to a specific project area fund. With this in mind, the program summaries provided below outline how the proposed budget amendments differ from the original budget. Housing Property Acquisition To comply with regulatory and administrative requirements for reporting, staff has recognized the need to specify the purpose of each property acquisition, instead of having a generic "Property Acquisition" program. This will enable the Agency to report accurately on how much was spent on Housing, Commercial, Infrastructure, and other categories. By standardizing programs in this manner, the Agency can ensure more efficient and automated reporting in the Workday system, enabling more effective management and oversight of its financial resources. • Budget Impact: The original FY23 budget for the 9 Line project area allocated $959,774 for Property Acquisition. The proposed amendment seeks to reclassify this budget specifically for Housing Property Acquisition, which is described in the 9 Line Property Acquisition section below. Strategic Intervention The Agency may not always have a specific property identified for acquisition at the time of budgeting, as it depends on what becomes available in the market. Rather than creating a generic Property Acquisition program, the staff is recommending using the Strategic Intervention program. The purpose of using this program is to set aside funds that are not yet allocated to a specific type of property acquisition, with the intention of returning to the Board when the use is better defined. This change is also being recommended to align with the new reporting structure in Workday, as the current budget structure needs to be converted into the new system. It is worth noting that the Strategic Intervention program has already been approved for use in the North Temple and Granary District project areas for uses that include property acquisition, site development costs, and community benefits. Therefore, the Agency is proposing to use this already established program for the general purpose of property acquisition because the intent of the Strategic Intervention program aligns with that of a generic property acquisition program. • Budget Impact: The original budget for FY23 allocated $2,104,947 for Property Acquisition in the State Street project area with a generic purpose. However, the staff is proposing to reclassify this amount to the Strategic Intervention program. As stated above, when a property is identified and the use is determined, staff will return to the Board to request a reclassification to the appropriate property acquisition program. Shared Costs The Northwest Quadrant project area has a budget for a Shared Costs reserve account, which is set aside to fund redevelopment activities that benefit the entire Project Area, are system-wide, or benefit multiple property owners or parcels. • Budget Impact: Staff proposes allocating the additional funds received in the project area to this reserve, increasing the budget from $95,310 to $ 142,112. Transition Holding Account The Transition Holding Account program serves to identify any additional funds that were received during the current fiscal year, beyond any obligated spending. The purpose of this program is to pull these amounts into the next fiscal year budget, so that the Board can see the impact of these funds alongside the new fiscal year budget, as the budget amendment happens near the same time as the new fiscal year budget. • Budget Impact: Project areas funds contributing to the Transition Holding Account program include Depot District, Granary District, North Temple, State Street, and 9 Line. Dollar amounts by project area fund are included in the table below. Revolving Loan Fund Repayment: The Board had previously approved the reallocation of $550,000 from the Revolving Loan Fund for a Central Station property acquisition in the Depot District project area through Budget Amendment #2 of Fiscal Year 2022. In the Fiscal Year 2023 budget, a repayment of $524,732 to the Revolving Loan Fund was approved. With the additional tax increment received, the staff is requesting to fully repay the $550,000. • Budget Impact: $550,000 will transfer from Depot District to the Revolving Loan Fund. The proposed changes for each fund and applicable program are summarized in the table below. Project Area Funds 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 1 Central Business District 1,384,061 920,908 (489,410) (26,257) 894,651 Capital Reserves - Housing Property Acquisition 734,061 270,908 (489,410) (26,257) 244,651 3 Depot District 524,732 2,520,671 1,830,741 (165,198) 2,355,473 Capital Reserves - Transition Holding Account 0 1,970,671 1,805,473 (165,198) 1,805,473 Revolving Loan Fund Repayment 524,732 550,000 25,268 0 550,000 4 Granary District 421,805 716,760 291,284 (3,671) 713,089 Capital Reserves - Strategic Intervention 421,805 421,805 0 0 421,805 Capital Reserves - Transition Holding Account 0 294,955 291,284 (3,671) 291,284 5 North Temple 0 347,616 343,277 (4,340) 343,277 Capital Reserves - Transition Holding Account 0 347,616 343,277 (4,340) 343,277 7 Northwest Quadrant 95,310 150,026 46,802 (7,915) 142,112 Capital Reserves - Shared Costs 95,310 150,026 46,802 (7,915) 142,112 9 State Street 2,104,947 3,481,312 1,364,709 (11,656) 3,469,656 Capital Reserves - Strategic Intervention [Formerly Property Acquisition] 2,104,947 2,104,947 0 0 2,104,947 Capital Reserves - Transition Holding Account 0 1,376,365 1,364,709 (11,656) 1,364,709 10 9-Line 959,774 1,730,726 802,208 31,256 1,761,982 Capital Reserves - Property Acquisition 959,774 0 (959,774) 0 0 Capital Reserves - Housing Property Acquisition 0 959,774 959,774 0 959,774 Capital Reserves - Transition Holding Account 0 770,952 802,208 31,256 802,208 Total 5,775,382 10,152,773 4,189,611 (187,780) 9,964,993 Housing Funds Discretionary Expense & Other Uses Adjustments Primary Housing Fund The Agency will realize an increase of $798,313 in contributions to the Primary Housing Fund. However, due to the reallocation of $1.5 million to the Spark project in Budget Amendment #2, the remaining budget for housing-related property acquisition stands at $99,880. In light of this, the staff has recommended adding the additional funds back into the Housing Property Acquisition program, for a total of $516,846. The remainder of the Primary Housing funds will need to be set aside for Family and Workforce Housing, per the interlocal agreements with the County for the State Street and 9 Line Project Areas. Housing Development Fund To account for the decrease of $1,382,000 in budget revenue from loan principal and interest payments in the Housing Development Fund, a reduction in the contribution to the Housing Development Loan Program will be necessary. It is important to note that this is the first year of receiving payments from the Housing Trust Fund loans, and therefore, staff factored in the uncertainty of receiving these payments in the 2023 Notice of Funding Availability. Westside Community Initiative The Utah Inland Port Authority affordable housing payment provided an additional $874,106, for a total of $1,374,106 in revenue to the Westside Community Initiative. Staff is proposing to allocate $440,226 to the Housing Property Acquisition program, specifically to supplement the $4,000,000 in funding received from the City’s General Fund for a property acquisition in the 9 Line project area. The details of this project are provided later in the memo. Additionally, staff is proposing to add the remaining $433,880 to the Transition Holding Account program, to be allocated with the rest of the funds recommended to be added to this program in the FY24 budget, as described with the project area funds above. Housing Funds 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 15 Primary Housing 1,599,880 2,464,233 798,313 (66,040) 2,398,193 Capital Reserves - Housing Property Acquisition 1,599,880 588,286 (1,083,034) (71,440) 516,846 Capital Reserves - Housing Development Loan Program (HDLP-Competitive) - Spark! 0 1,500,000 1,500,000 0 1,500,000 School District Family & Workforce Housing 0 375,947 381,347 5,400 381,347 16 Housing Development Fund 5,230,000 3,848,000 (1,382,000) 0 3,848,000 Capital Reserves - Housing Acquisition Program 1,000,000 1,000,000 0 0 1,000,000 Capital Reserves - Housing Development Loan Program (HDLP-Competitive) - Spark! 0 1,000,000 1,000,000 0 1,000,000 Housing Development Loan Program NOFA 4,230,000 1,848,000 (2,382,000) 0 1,848,000 18 Westside Community Initiative 500,000 500,000 874,106 874,106 1,374,106 Capital Reserves - Housing Development Loan Program 500,000 500,000 0 0 500,000 Capital Reserves - Housing Property Acquisition 0 0 440,226 440,226 440,226 Capital Reserves - Transition Holding Account 0 0 433,880 433,880 433,880 Total 7,329,880 6,812,233 290,419 808,066 7,620,299 Program Income Fund As described above, the City will be transferring $4,000,000 from its General Fund to the Agency’s Program Income Fund. Staff is proposing the use of the full amount for Housing Property Acquisition, specifically for a property acquisition in the 9 Line project area. Details regarding this property acquisition are provided in a separate section below. Program Income 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 19 Program Income Fund 0 0 4,000,000 4,000,000 4,000,000 Capital Reserves - Housing Property Acquisition 0 0 4,000,000 4,000,000 4,000,000 Total 0 0 4,000,000 4,000,000 4,000,000 Administration Fund Expense & Other Uses Adjustments The contributions to the Administration Fund will increase by $560,721. To accommodate the expected rise in operating expenses, the Agency proposes to augment the Operating & Maintenance and Charges & Services line items. These increases will account for the costs associated with inflation, including property maintenance and management, computer software and hardware, office supplies, and travel expenses. In addition to the increased operating expenses, the Agency has been sharing office space with the Economic Development department. Both departments have identified a need to reconfigure their workspace for more effective operations. The projected cost of this remodel is $200,000. Agency Operations Fund 2023-B 2023-BA3 Forecast Variance to Budget Variance to Forecast 2023-BA3 Charges and Services 218,560 507,231 200,721 (87,950) 419,281 Operating & Maintenance 300,000 660,000 360,000 0 660,000 Total 518,560 1,167,231 560,721 (87,950) 1,079,281 9 Line Property Acquisition Staff is requesting a total of $5,400,000 to complete the acquisition of properties at the intersection of 900 West and 400 South. Staff has been negotiating with the owner in accordance with the First Right to Offer agreement and previously closed on the first property acquisition on the southeast corner. The owner recently accepted the conditional offer to acquire the remaining parcels, subject to final approval from the respective Boards on both sides. This intersection is identified as a target area within the 9-Line Project Area Plan and the assemblage provides a unique opportunity to bring commercial and support services to the community along with residential within a mixed-use development. The proposed funding sources for the property acquisition are outlined in the recommendations for the Housing Property Acquisition program appropriations in the 9 Line, Program Income, and Westside Community Initiative above. Fund Program Amount Program Income Fund Housing Property Acquisition 4,000,000 9 Line Housing Property Acquisition 959,774 West Side Community Initiative Housing Property Acquisition 440,226 Total 5,400,000 Transition Holding Accounts by Fund The table presented below provides a summary of the allocations for the Transition Holding Account program, as described earlier. This summary aims to facilitate the reconciliation of these amounts with the FY24 budget. These allocations will be included in the relevant funds within the budget. Fund Line Description 2023-BA3 Depot District Capital Reserves - Transition Holding Account 1,805,473 Granary District Capital Reserves - Transition Holding Account 291,284 North Temple Capital Reserves - Transition Holding Account 343,277 State Street Capital Reserves - Transition Holding Account 1,364,709 9-Line Capital Reserves - Transition Holding Account 802,208 Westside Community Initiative Capital Reserves - Transition Holding Account 433,880 5,040,831 Amended Budget Totals by Fund The following tables present the proposed amendments to the revenue and expense budgets, organized by fund. These tables encompass all changes that have been made to the budget and provide a thorough overview of the amended budget by fund. Central Business District Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest from Investments 23,500 23,500 0 Tax Increment 27,573,150 25,941,783 (1,631,367) Total 27,596,650 25,965,283 (1,631,367) Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Taxing Entity Payments 13,283,651 12,304,831 (978,820) TI Reimbursements 1,400,000 1,400,000 0 Transfer to Administration 2,757,315 2,594,178 (163,137) Eccles Debt Service 3,260,239 3,260,239 0 Eccles Debt Service Block 70 RDA Match 3,260,239 3,260,239 0 Gallivan Administration 365,323 365,323 0 Gallivan Maintenance 566,822 566,822 0 Gallivan Programming 250,000 250,000 0 Miscellaneous Property Expense 1,000,000 1,000,000 0 Parking Ramp Leases 69,000 69,000 0 Open Streets Initiative on Main Street 150,000 150,000 0 Capital Reserves - Japantown 250,000 250,000 0 Capital Reserves - Main Street Closure Study and Design 150,000 150,000 0 Capital Reserves - Housing Property Acquisition 734,061 244,651 (489,410) Capital Reserves - Gallivan Plaza Planning 100,000 100,000 0 Total 27,596,650 25,965,283 (1,631,367) Block 70 Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest from Investments 2,500 2,500 0 Reserves for Eccles Debt 2,469,853 2,469,853 0 Tax Increment 1,922,323 1,925,503 3,180 Transfer From B70 Eccles Debt Service RDA match 3,260,239 3,260,239 0 Transfer From B70 Taxing Entity Payments 3,260,239 3,260,239 0 Total 10,915,154 10,918,334 3,180 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Taxing Entity Payments 576,697 577,651 954 Eccles Theater Debt Service 8,069,529 8,069,529 0 Fundraising Fulfillment 125,000 125,000 0 Regent Street Bond Debt Service 1,488,928 1,488,928 0 Regent Street Maintenance 80,000 80,000 0 Capital Reserves - Eccles Theater- Operating Reserve for Ancillary Spaces 475,000 475,000 0 Capital Reserves - Regent Street Parking Structure 100,000 102,226 2,226 Total 10,915,154 10,918,334 3,180 Depot District Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest from Investments 50,000 50,000 0 Tax Increment 3,999,587 5,316,113 1,316,526 Total 4,049,587 5,366,113 1,316,526 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance TI Reimbursements 2,000,000 1,000,000 (1,000,000) Transfer to Administration 599,938 797,417 197,479 Miscellaneous Property Expense 125,000 150,000 25,000 Revolving Loan Fund Repayment 524,732 550,000 25,268 Transfer to Primary Housing Fund 799,917 1,063,223 263,306 Capital Reserves - Transition Holding Account 0 1,805,473 1,805,473 Total 4,049,587 5,366,113 1,316,526 Granary District Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest from Investments 15,000 15,000 0 Tax Increment 633,546 1,081,675 448,129 Total 648,546 1,096,675 448,129 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Transfer to Administration 95,032 162,251 67,219 Miscellaneous Property Expense 5,000 5,000 0 Transfer to Primary Housing Fund 126,709 216,335 89,626 Capital Reserves - Strategic Intervention 421,805 421,805 0 Capital Reserves - Transition Holding Account 291,284 291,284 Total 648,546 1,096,675 448,129 North Temple Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest from Investments 5,000 5,000 0 Tax Increment 444,053 988,936 544,883 Total 449,053 993,936 544,883 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Capital Reserves - Folsom Corridor Prop Acq & Remediation 284,753 284,753 0 Transfer to Administration 44,405 98,894 54,489 Transfer to Primary Housing Fund 88,811 197,787 108,976 Capital Reserves - Transition Holding Account 0 343,277 343,277 Capital Reserves - School Construction Fund (10%) 31,084 69,226 38,142 Total 449,053 993,936 544,883 North Temple Viaduct Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest from Investments 1,500 1,500 0 Tax Increment 1,205,109 2,720,019 1,514,910 Total 1,206,609 2,721,519 1,514,910 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Debt Service Payment to Salt Lake City 1,188,532 2,680,719 1,492,187 Transfer to Administration 18,077 40,800 22,723 Total 1,206,609 2,721,519 1,514,910 Northwest Quadrant Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest from Investments 5,000 5,000 0 Tax Increment 903,100 1,371,125 468,025 Total 908,100 1,376,125 468,025 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance TI Reimbursements 632,170 959,788 327,618 Capital Reserves - Shared Costs 95,310 142,112 46,802 Transfer to Administration 90,310 137,113 46,803 Transfer to Primary Housing Fund 90,310 137,113 46,803 Total 908,100 1,376,125 468,025 Stadler Rail Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest from Investments 500 500 0 Tax Increment 72,420 138,526 66,106 Total 72,920 139,026 66,106 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance TI Reimbursements 58,436 117,747 59,311 Transfer to Administration 7,242 7,426 184 Transfer to Primary Housing Fund 7,242 13,853 6,611 Total 72,920 139,026 66,106 State Street Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Tax Increment 2,631,183 4,337,070 1,705,887 Total 2,631,183 4,337,070 1,705,887 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Transfer to Administration- City & SD Funds 263,118 433,707 170,589 Transfer to Primary Housing - School District Family & Workforce Housing 0 259,327 259,327 Transfer to Primary Housing Fund 263,118 174,380 (88,738) Capital Reserves - Property Acquisition 2,104,947 2,104,947 0 Capital Reserves - Transition Holding Account 0 1,364,709 1,364,709 Total 2,631,183 4,337,070 1,705,887 9-Line Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Tax Increment 1,477,727 2,601,746 1,124,019 Total 1,477,727 2,601,746 1,124,019 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Taxing Entity Payments 224,966 280,188 55,222 County Administration Fee 26,996 16,811 (10,185) Transfer to Administration- City & SD Funds 118,218 260,175 141,957 Transfer to Administration- County Funds 0 22,415 22,415 Transfer to Primary Housing - School District Family & Workforce Housing 0 122,020 122,020 Transfer to Primary Housing Fund 147,773 138,155 (9,618) Capital Reserves - Property Acquisition 959,774 0 (959,774) Capital Reserves - Transition Holding Account 0 802,208 802,208 Capital Reserves - Housing Property Acquisition 0 959,774 959,774 Total 1,477,727 2,601,746 1,124,019 Program Income Fund Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Transfer from the City’s General Fund 0 4,000,000 4,000,000 Interest Income 50,000 50,000 0 Interest on Loans 8,800 8,800 0 Loan Repayments 39,000 39,000 0 Parking Structure Income 1,243,335 1,243,335 0 Rents 215,700 215,700 0 Total 1,556,835 5,556,835 4,000,000 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Capital Reserves - Commercial Loan Program 931,835 931,835 4,000,000 Marketing and Sales 25,000 25,000 0 Miscellaneous Property Expense 300,000 300,000 0 Professional Services 300,000 300,000 0 Capital Reserves - Housing Property Acquisition 4,000,000 4,000,000 0 Total 1,556,835 5,556,835 0 Primary Housing Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest Income 50,000 50,000 0 Interest on Loans 3,000 3,000 0 Loan Repayments 23,000 23,000 0 Transfer In from 9-Line 147,773 260,175 112,402 Transfer In from Block 70 0 0 0 Transfer In from Central Business District 0 0 0 Transfer In from Depot District 799,917 1,063,223 263,306 Transfer In from Granary District 126,709 216,335 89,626 Transfer In from North Temple 88,811 197,787 108,976 Transfer In from North Temple Viaduct 0 0 0 Transfer In from Northwest Quadrant 90,310 137,113 46,803 Transfer In from Stadler Rail 7,242 13,853 6,611 Transfer In from State Street 263,118 433,707 170,589 Total 1,599,880 2,398,193 798,313 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Housing Development Loan Program 0 1,500,000 1,500,000 School District Family & Workforce Housing 0 381,347 381,347 Capital Reserves - Housing Property Acquisition 1,599,880 516,846 (1,083,034) Total 1,599,880 2,398,193 798,313 Secondary Housing Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Interest Income 10,000 10,000 0 Total 10,000 10,000 0 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Capital Reserves - Accessory Dwelling Unit 9-Line Pilot Program 10,000 10,000 0 Total 10,000 10,000 0 Housing Development Fund Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Funding Our Future Land Discounts and Financing 2,590,000 2,590,000 0 Interest on Investment 15,000 15,000 0 Interest on Loans 255,000 83,000 (172,000) Loan Repayments 1,370,000 160,000 (1,210,000) Mayor's request for additional affordable housing 1,000,000 1,000,000 0 Total 5,230,000 3,848,000 (1,382,000) Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Affordable Housing Acquisition Program 1,000,000 1,000,000 0 HDLP-Competitive for Spark! 0 1,000,000 1,000,000 Housing Development Loan Program NOFA 4,230,000 1,848,000 (2,382,000) Total 5,230,000 3,848,000 (1,382,000) Westside Community Initiative Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance UIPA Housing Allocation 500,000 1,374,106 874,106 Total 500,000 1,374,106 874,106 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance Capital Reserves - Housing Development Loan Program 500,000 500,000 0 Capital Reserves - Transition Holding Account 0 433,880 433,880 Capital Reserves - Housing Property Acquisition 0 440,226 440,226 Total 500,000 1,374,106 874,106 Redevelopment Agency Operations Revenue & Other Sources Line Description 2023-B 2023-BA3 Variance Transfer In from 9-Line 118,218 282,590 164,372 Transfer In from Central Business District 2,757,315 2,594,178 (163,137) Transfer In from Depot District 599,938 797,417 197,479 Transfer In from Granary District 95,032 162,251 67,219 Transfer In from North Temple 44,405 98,894 54,489 Transfer In from North Temple Viaduct 18,077 40,800 22,723 Transfer In from Northwest Quadrant 90,310 137,113 46,803 Transfer In from Stadler Rail 7,242 7,426 184 Transfer In from State Street 263,118 433,707 170,589 Transfer in from West Temple Gateway 5,000 5,000 0 Total 3,998,655 4,559,376 560,721 Expenses & Other Uses Line Description 2023-B 2023-BA3 Variance RDA Personnel 2,480,095 2,480,095 0 Administrative Fees 1,000,000 1,000,000 0 Charges and Services 218,560 419,281 200,721 Operating & Maintenance 300,000 660,000 360,000 Total 3,998,655 4,559,376 560,721 PREVIOUS BOARD ACTION: 1. Approval of the Fiscal Year 2022/2023 Budget 2. Approval of the Fiscal Year 2022/2023 Budget Amendment #1 3. Approval of the Fiscal Year 2022/2023 Budget Amendment #2 4. Resolution – Year 2022/2023 Third Budget Amendment ATTACHMENTS: Fiscal Year 2022/2023 Budget Amendment #3 Slides Redevelopment Agency FY22-23 Budget Amendment #3 BB Project Area Revenue Changes 46,422,496 40,862,198 5,560,298 Budget BA #3 Variance Tax Increment Revenue Change 1,477,727 2,631,183 72,420 903,100 1,205,109 444,053 633,546 3,999,587 1,922,323 27,573,150 2,601,746 4,337,070 138,526 1,371,125 2,720,019 988,936 1,081,675 5,316,113 1,925,503 25,941,783 9L SS SR NWQ NTV NT GD DD B70 CBD 1 0 9 8 7 6 5 4 3 2 1 Tax Increment Revenue Changes by Project Area Project Area & Funds Expense Changes 1,370,6885,560,298 4,189,611 Ti Revenue Increase Obligations Discretionary Total Project Area Fund Changes Total Obligations Total Discretionary =+ Project Area Funds 2023-B 2023-BA3 Variance to Budget Transfer to Primary Housing Fund 1,523,880 1,940,846 416,966 Transfer to Primary Housing -School District Family & Workforce Housing 0 381,347 381,347 Transfer to Administration 3,993,655 4,554,376 560,721 TI Reimbursements 4,090,606 3,477,535 (613,071) Taxing Entity Payments 14,085,314 13,162,670 (922,644) Miscellaneous Property Expense 1,130,000 1,155,000 25,000 Debt Service Payment to Salt Lake City 1,188,532 2,680,719 1,492,187 County Administration Fee 26,996 16,811 (10,185) Capital Reserves -School Construction Fund (10%)31,084 69,226 38,142 Capital Reserves -Regent Street Parking Structure 100,000 102,226 2,226 Total 26,170,067 27,540,755 1,370,688 Project Area Funds 2023-B 2023-BA3 Variance to Budget Capital Reserves -Property Acquisition 3,064,721 2,104,947 (959,774) Revolving Loan Fund Repayment 524,732 550,000 25,268 Capital Reserves -Shared Costs 95,310 142,112 46,802 Capital Reserves -Housing Property Acquisition 734,061 1,204,425 470,364 Capital Reserves -Transition Holding Account 0 4,606,951 4,606,951 Total 4,418,824 8,608,435 4,189,611 Housing Funds Changes Discretionary Expenses by Housing Fund 7,630,2997,339,880 290,419 Budget BA #3 Variance Housing Funds Revenue Change Fund Line Description 2023-B 2023-BA3 Variance to Budget Primary Housing Dev/Loan Fund Capital Reserves -Housing Property Acquisition 1,599,880 516,846 (1,083,034) Capital Reserves -Housing Development Loan Program 0 1,500,000 1,500,000 Capital Reserves -School District Family & Workforce Housing 0 381,347 381,347 Housing Development Fund Capital Reserves -Housing Development Loan Program 4,230,000 2,848,000 (1,382,000) Westside Community Initiative Capital Reserves -Housing Property Acquisition 0 440,226 440,226 Capital Reserves -Transition Holding Account 0 433,880 433,880 Total 5,829,880 6,120,299 290,419 500,000 5,230,000 1,599,880 1,374,106 3,848,000 2,398,193 Westside Community Initiative Housing Development Fund Primary Housing 1 8 1 7 1 5 Revenue Changes by Housing Funds 1,599,880 0 4,230,000 0 957,072 433,880 4,348,000 381,347 Housing Property Acquisition Transition Holding Account Housing Development Loan Program School District Family & Workforce Housing Expense Changes by Description Administration Fund Changes Administration Fund Expense Changes Line Description Budget BA #3 Variance Operating & Maintenance 300,000 660,000 360,000 Charges and Services 218,560 419,281 200,721 518,560 1,079,281 560,721 4,559,3763,998,655 560,721 Budget BA #3 Variance Administration Fund Revenue Change 218,560 300,000 419,281 660,000 Charges and Services Operating & Maintenance Administration Fund Expense Changes 1 REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO__________ Third Budget Amendment RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY AMENDING THE FINAL BUDGET OF THE RDA FOR FISCAL YEAR 2022-2023 WHEREAS, on June 14, 2022, the Redevelopment Agency (“RDA”) Board of Directors (“Board”) adopted the final budget of the RDA, effective for the fiscal year beginning July 1, 2022, and ending June 30, 2023, in accordance with the requirements of Section 17C-1-601.5 of the Utah Code. WHEREAS, all conditions precedent to amend the RDA's final 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 Board on June 14, 2022. 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 ______________, 2023, to be effective upon adoption. ________________________________ Alejandro Puy, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ March 23, 2023 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]