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Council Provided Information - 3/5/2024REDEVELOPMENT 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:March 4, 2024 PREPARED BY:Erin Cunningham, Financial Analyst RE:RDA Budget Amendment #2, FY 2023-2024 REQUESTED ACTION: Discussion and approval of Budget Amendment #2 BUDGET IMPACTS:The Second Amendment will not affect the Agency's overall budget total. Its purpose is to reappropriate several project budgets and reallocate funds previously appropriated at a program level and into two new project budgets. EXECUTIVE SUMMARY: This amendment proposes the reappropriation of budgets previously earmarked for various projects and reallocating program-level appropriations into two new projects. Identified project budgets are either complete with surplus funds or more effectively integrated into larger projects. It is recommended that program-level appropriations, including "Station Center Infrastructure Funds" and "Depot District Infrastructure Funds," be appropriated to two (2) new projects. The amendment maintains the total budget of appropriations but alters their distribution. There is a total of $10,802,277 in appropriations not currently allocated to projects. Additionally, there are five project budgets available for reappropriation, totaling $1,364,806. The combined total of $12,167,583 is proposed for allocation to two new projects. ANALYSIS & ISSUES: The Agency is in the process of transitioning to the City's new Enterprise Resource Planning (ERP) software, Workday. In shifting to the new system for project funding, it becomes imperative to recognize that the financial plan for each project must align with designated appropriations. Each appropriation encapsulates details necessary for legal spending, thus ensuring compliance with regulations and policies to which the Agency must adhere. These appropriations represent pools of money set aside for specific purposes, each governed by clear rules regarding expenditure. The elements of each appropriation include the Department (Cost Center), Fiscal Year, Fund, and Project Area (Region). As funds from these appropriations are assigned to various projects, the remaining balance within each appropriation will decrease. Previously, the Agency possessed the flexibility to allocate funds directly from available funding sources to projects. With the adoption of the new system, the Agency's overall budget is perceived as a collection of these appropriations, necessitating that all project budgets derive their funding from them. This arrangement precludes the possibility of projects maintaining their own, independent budgets. The structure now adopts a two-tiered approach: the comprehensive budget comprising all appropriations, and the individual project budgets that must be funded in accordance with these appropriations. Reallocation of Appropriations This budget amendment pertains to the redistribution of funds formerly designated as "Station Center Infrastructure Funds" and "Depot District Infrastructure Funds." The table below illustrates the current appropriations. The amendment proposes to reappropriate funds from two categories: Appropriations with the "Available" status are not currently tied to any projects. Staff is seeking to reallocate $10,802,777 of these appropriations to support two (2) new projects described below. Appropriations and Project Budgets with the "Rescope" status are intended to be detached from their existing assignments and rescoped to support the same two (2) projects. This $1,364,805.62, combined with the amount above totals $12,167,583 Status Appropriation Project Budget Available Prior Year Balances through FY23-DD-Infrastructure Improvements-DD Capital Reserve - Infrastructure Improvements -{Holding Account}- 5,220,186.00 Prior Year Balances through FY23-PIF-Infrastructure Improvements-DD Capital Reserve - Infrastructure Improvements -{Holding Account}- 1,902,535.00 RDA Key Changes FY24-DD- Infrastructure Improvements-DD Capital Reserve - Infrastructure Improvements -{Holding Account}- 3,680,056.00 Available Total 10,802,777.00 Rescope FY23-DD-Infrastructure Improvements-DD Capital Project: PRJ-000002 100 S Underground Powerlines 388,981.00 Capital Project: PRJ-000071 Depot District Environmental Remediation 200,000.00 Capital Project: PRJ-000072 Station Center Shared Parking 275,639.00 Capital Project: PRJ-000073 Central Station 414,121.00 FY23-PIF-Infrastructure Improvements-NPA Capital Project: PRJ-000068 SL Mattress Warehouse 86,064.62 Rescope Total 1,364,805.62 Total 12,167,583 which are outlined in the table below. Fund Program Appropriation Current Budget Change Proposed Budget Depot District Commercial Property Disposition RDA-FY23-DD- Commercial Property Disposition-DD 0 5,498,927 5,498,927 Infrastructure Improvements RDA-FY23-DD- Infrastructure Improvements-DD 0 1,000,000 1,000,000 Program Income Fund Commercial Property Disposition RDA-FY23-PIF- Commercial Property Disposition-DD 0 1,601,073 1,601,073 Total 0 8,100,000 8,100,000 Fund Program Appropriation Current Budget Change Proposed Budget Depot District Infrastructure Improvements RDA-FY24-DD- Infrastructure Improvements-DD 0 3,680,056 3,680,056 Program Income Fund Infrastructure Improvements RDA-FY23-PIF- Infrastructure Improvements-DD 0 301,462 301,462 RDA-FY23-PIF- Infrastructure Improvements-DD (from NPA) 0 86,065 86,065 Total 0 4,067,583 4,067,583 PREVIOUS BOARD ACTION: 1. Approval of the Fiscal Year 2023-2024 Budget. 2. Approval of the Fiscal Year 2023-2024 Budget Amendment #1. ATTACHMENTS: 1. Supplemental Slides. Current Appropriation and Project Budgets NPA: Non-Project Area. Funding does not have a legal or Board directed requirement to be spent within a specific project area. Status Appropriation Fund Program Region Project Budget Available FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD Unallocated 5,220,186.00 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD Unallocated 1,902,535.00 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD Unallocated 3,680,056.00 Available Total 10,802,777.00 Rescope FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD PRJ-000002 100 S Underground Powerlines 388,981.00 PRJ-000071 Depot District Environmental Remediation 200,000.00 PRJ-000072 Station Center Shared Parking 275,639.00 PRJ-000073 Central Station 414,121.00 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA PRJ-000068 SL Mattress Warehouse 86,064.62 Rescope Total 1,364,805.62 In Use FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD PRJ-000017 Artspace Stormwater Relocation 200,000.00 PRJ-000063 Station Center Design 331,313.11 FY23-DD-Infrastructure Studies and Planning-DD Depot District Infrastructure Studies and Planning DD PRJ-000054 Station Center Vision & Implementation Plan 434,696.00 FY23-DD-Other Housing-DD Depot District Other Housing DD PRJ-000064 Home Inn Rio Grande Maintenance 23,292.68 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA PRJ-000017 Artspace Stormwater Relocation 320,127.53 PRJ-000068 SL Mattress Warehouse 5,644.00 In Use Total 1,315,073.32 Total 13,482,655.94 Proposed Budget Changes by Appropriation Appropriation Fund Program Region Current Budget Change Proposed Budget FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD 7,030,240 (6,498,927)531,313 FY23-DD-Infrastructure Studies and Planning-DD Depot District Infrastructure Studies and Planning DD 434,696 -434,696 FY23-DD-Other Housing-DD Depot District Other Housing DD 23,293 -23,293 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD 1,902,535 (1,902,535)- FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements NPA 411,836 (86,065)325,772 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD 3,680,056 (3,680,056)- FY23-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD -1,000,000 1,000,000 FY23-DD-Commercial Property Disposition-DD Depot District Commercial Property Disposition DD -5,498,927 5,498,927 FY23-PIF-Commercial Property Disposition-DD Program Income Fund Commercial Property Disposition DD -1,601,073 1,601,073 FY23-PIF-Infrastructure Improvements-DD Program Income Fund Infrastructure Improvements DD -301,462 301,462 FY23-PIF-Infrastructure Improvements-NPA Program Income Fund Infrastructure Improvements DD -86,065 86,065 FY24-DD-Infrastructure Improvements-DD Depot District Infrastructure Improvements DD -3,680,056 3,680,056 Total 13,482,656 -13,482,656 New Project: Station Center Property Disposition & Site Work RDA-FY23-DD-Commercial Property Disposition-DD 5,498,927 RDA-FY23-DD-Infrastructure Improvements-DD 1,000,000 RDA-FY23-PIF-Commercial Property Disposition-DD 1,601,073 Proposed Appropriation Station Center Property Disposition & Site Work 8,100,000 New Project New Project: Depot District Infrastructure, Design, Construction, & Site Work RDA-FY24-DD-Infrastructure Improvements-DD 3,680,056 RDA-FY23-PIF-Infrastructure Improvements-DD 301,462 RDA-FY23-PIF-Infrastructure Improvements-DD 86,065 Proposed Appropriation Depot District Infrastructure, Design, Construction, & Site Work 4,067,583 New Project Workday Worktags & the RDA Budget Worktags allow for tracking of costs, revenues, and other operational metrics across different dimensions like departments, projects, or geographic locations. The Redevelopment Agency’s budget utilizes the following Worktags: Cost Center: Represents a specific department, unit, or division within an organization that is responsible for certain costs. The RDA is a cost center. Fiscal Year: The original year the funds were appropriated. Fund: Used to categorize and segregate financial transactions based on the origin of the funds, which is crucial for accurate financial reporting and compliance. The RDA has Project Area, Housing, Multi-Use, and Operations funds, with various legal and policy-related requirements that need to be monitored. Program: Enables the segregation and monitoring of financial data, which represents a specific pool of money that needs to be tracked for various legal, policy, or Board-directed initiatives related to RDA programs. The Program Worktags are designed to fit within program hierarchies such as Housing, Commercial, Infrastructure, and Operations programs. Region: Segments expenses based on location, which for the RDA is usually a Project Area. Not all expenses will be associated with a project area, which means this Worktag may not always be used. Appropriation: Combines the elements of Cost Center, Fund, Program, and Region into a single, comprehensive identifier, with the fiscal year as a prefix. Appropriation Cost Center FundFiscal Year Program Region Appropriations & Project Budgets Operations Appropriations Annual appropriations for operational expenses. Considered approved to spend when appropriated. If not spent or encumbered by the end of the fiscal year, drops to fund balance. Typically, these would be for RDA operating expenses. Occasionally may be associated with a project budget (for example, an office remodel). Capital Reserves Appropriations Appropriations for programs that carry forward each year. For instance, in the Housing Development Loan Program, a set amount is allocated for loans. Staff will request additional Board approval to use these funds for specific loan projects. Funds not awarded to projects roll forward to the next year, unless reappropriated by the Board. Project Budgets All project budgets must pull from appropriations. Once project budgets have been approved by the Board, the Agency can move forward with spending. Project budgets may have multiple appropriations. Each appropriation supports either the operations of the Agency or projects associated with its various programs. Redevelopment Agency Funds Project Area Funds Must be used within the boundaries of the project area, except for revenues transferred to Primary Housing (legally required), Secondary Housing (supplemental), Agency Operations (defined by interlocal agreements), or other legal reasons. •Central Business District (CBD) •Block 70 (B70) •Depot District (DD) •Granary District (GD) •North Temple (NT) •North Temple Viaduct (NTV) •Stadler Rail (SR) •Northwest Quadrant (NWQ) •State Street (SS) •9 Line (9L) •Block 67 North (B67N) Housing Funds May be used anywhere in the City, unless otherwise directed by the Board, except for the WCI, which must be used west of I-15. •Primary Housing (1H) •Secondary Housing (2H) •Housing Development Fund (HDF) •West Side Community Initiative (WCI) Multi-Use Funds Can be used across project areas (and potentially city-wide), unless otherwise directed by the Board. •Program Income Fund (PIF) •Revolving Loan Fund (RLF) Agency Operations Fund (OPS) •Receives transfers in from other funds to fund the Agency’s operational expenses. In i t i a t i v e N u m b e r / N a m e P r o j e c t A r e a R e v e n u e A m o u n t E x p e n d i t u r e Am o u n t R e v e n u e Am o u n t E x p e n d i t u r e Am o u n t On g o i n g o r O n e - ti m e FT E s 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s De p o t D i s t r i c t - (1 0 , 1 7 8 , 9 8 3 . 0 0 ) On e - t i m e - 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s De p o t D i s t r i c t - 1 0 , 1 7 8 , 9 8 3 . 0 0 O n e - t i m e - 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s Pr o g r a m I n c o m e Fu n d - (1 , 9 8 8 , 6 0 0 . 0 0 ) On e - t i m e - 1 RD A R e a l l o c a t i o n o f P r o g r a m - L e v e l A p p r o p r i a t i o n s i n t o Tw o N e w P r o j e c t s Pr o g r a m I n c o m e Fu n d - 1 , 9 8 8 , 6 0 0 . 0 0 O n e - t i m e - - To t a l o f B u d g e t A m e n d m e n t I t e m s - - - - To t a l b y F u n d , B u d g e t A m e n d m e n t # 1 : Re d e v e l o p m e n t A g e n c y De p o t D i s t r i c t - - - - - Re d e v e l o p m e n t A g e n c y Pr o g r a m I n c o m e Fu n d - - To t a l o f B u d g e t A m e n d m e n t I t e m s - - - - - Fi s c a l Y e a r 2 0 2 3 - 2 4 R D A B u d g e t A m e n d m e n t # 2 Se c t i o n G : B o a r d C o n s e n t A g e n d a - - G r a n t A w a r d s Se c t i o n I : B o a r d A d d e d I t e m s Se c t i o n A : N e w I t e m s Se c t i o n B : G r a n t s f o r E x i s t i n g S t a f f R e s o u r c e s Se c t i o n C : G r a n t s f o r N e w S t a f f R e s o u r c e s Se c t i o n D : H o u s e k e e p i n g Se c t i o n E : G r a n t s R e q u i r i n g N o N e w S t a f f R e s o u r c e s Se c t i o n F : D o n a t i o n s Bo a r d A p p r o v e d Ad m i n i s t r a t i o n P r o p o s e d 1 In i t i a t i v e N u m b e r / N a m e P r o j e c t A r e a R e v e n u e A m o u n t E x p e n d i t u r e Am o u n t R e v e n u e Am o u n t E x p e n d i t u r e Am o u n t On g o i n g o r O n e - ti m e FT E s Fi s c a l Y e a r 2 0 2 3 - 2 4 R D A B u d g e t A m e n d m e n t # 2 Bo a r d A p p r o v e d Ad m i n i s t r a t i o n P r o p o s e d Cu r r e n t Y e a r B u d g e t S u m m a r y , p r o v i d e d f o r i n f o r m a t i o n o n l y FY 2 0 2 3 - 2 4 B u d g e t , I n c l u d i n g B u d g e t A m e n d m e n t s To t a l R e v e n u e RD A B A # 1 T o t a l RD A B A # 2 T o t a l To t a l T o - D a t e Re d e v e l o p m e n t A g e n c y 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 T o t a l o f B u d g e t A m e n d m e n t I t e m s 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 To t a l E x p e n s e RD A B A # 1 T o t a l RD A B A # 2 T o t a l To t a l T o - D a t e Re d e v e l o p m e n t A g e n c y 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 T o t a l o f B u d g e t A m e n d m e n t I t e m s 80 , 8 0 3 , 8 4 1 (6 , 4 7 6 , 0 1 4 ) - 7 4 , 3 2 7 , 8 2 7 Ce r t i f i c a t i o n Bu d g e t M a n a g e r De p u t y D i r e c t o r , C i t y C o u n c i l / R D A B o a r d Co n t i n g e n t A p p r o p r i a t i o n a n d N o t e s 2