354 South Spring Street Suite 800 Los Angeles California

Transcription

1 ~~ CRAtLA ~ Building communities L n 1L 11t R de 1t Agency oftbe CITY OF LOS A N GE LE S DATE I July 21, 2010,, COOE 354 South Spring Street Suite 800 Los Angeles California ?P 977 1liOC. F CRA File No.: CFI No.: Council District: Contact Person: Agency-wide Elsie Lai (213) Honorable Council of the City of Los Angeles John Ferraro Council Chamber 200 N. Spring Street Room 340, City Hall Los Angeles, CA Attention: Sharon Gin, Office of the City Clerk COUNCIL TRANSMITTAL: Transmitted herewith is a Report for review by the Housing, Community, and Economic Development Committee and the City Council in response to a request of the City Council made on June 29, 2010 to: RELATIVE TO ALL INTEREST INCOME, INDICATE WHERE IT IS GENERATED AND WHERE IT HAS BEEN UTILIZED FOR THE PAST FIVE YEARS. INCLUDE A MATRIX AND FOOTNOTES ON REQUIREMENTS OR FLEXIBILITY ON FUNDS GENERATED RECOMMENDATION That City Council review, and then receive and file, the report. ENVIRONMENTAL REVIEW The recommended action does not constitute a "project" as defined by the California Environmental Qua lity Act ("CEQA"). FISCAL IMPACT STATEMENT There is no fiscal impact to the City's General Fund, as a result of th is action.

2 cc: Sharon Gin, Office of the City Clerk (Original & 3 Copies on 3-hole punch) Lisa Johnson Sm ith, Office of the CAO lvania Sobalvarro, Office of the CLA Andrew Westall, Council District 1 0

3 REPORT TO HOUSING, COMMUNITY AND ECONOMIC DEVELOPMENT COMMITTEE RELATIVE TO ALL INTEREST INCOME, INDICATE WHERE IT IS GENERATED AND WHERE IT HAS BEEN UTILIZED FOR THE PAST FIVE YEARS. INCLUDE A MATRIX AND FOOTNOTES ON REQUIREMENTS OR FLEXIBILITY ON FUNDS GENERATED July 21, 2010

4 BACKGROUND Interest income is categorized by CRA/LA as general revenue, sometimes referred to as special revenue or discretionary revenue. CRA/LA general revenues are not tax increment funds, and therefore they can be used on redevelopment activities in any of CRA/LA's project areas without any findings of benefit having to be made. The use of general revenues is subject to two primary restrictions under California Redevelopment Law (CRL): (i) They must be expended on an activity that has a redevelopment purpose, and (ii) They can be expended on activities outside of any redevelopment project areas if they are used for affordable housing and a finding of benefit is made (CRL Section 33449) or for the construction of public improvements and appropriate findings are made (CRL Section 33445). On May 10, 2007, the City Council approved the CRA/LA FY Budget which initiated the practice to aggregate all general revenue from interest earned on tax increment funds into a single agency-wide general revenue account. This was a strategic decision so that the often small amounts could be pooled to be large enough to pursue significant strategic investments. A portion of the new pool of funds was used to provide the foundation for the Land Acquisition Fund, also approved as part of the FY Budget. Importantly, interest income generated on non-tax increment funds (i.e., Housing, AB1290, Art Funds, and Bond Proceeds) are not and have not been deposited into the agency-wide pool of general revenue. The interest income in non-tax increment accounts are retained in the fund it originates from. Moreover, interest income from Low and Moderate Income Housing funds is required by law to be deposited into the Low and Moderate Income Housing fund. REPORT Attached please find the requested matrices: (1) The first matrix outlines the amount of interest income on tax increment funds generated from FY06 through FY1 0 by region and project area. The matrix also delineates the amount that was generated by each project area and deposited to an Agency-wide general revenue pool of funds and the amount that was retained in each project area for its own redevelopment purposes; and (2) The second matrix outlines how interest income on tax increment funds from contributing project areas was spent from the Agency-wide general revenue pool of funds. This amount does not equal the amount generated because typically, since the CRA/LA operates a capital budget, funds may be spent over the course of several years although they are allocated and committed.

5 As shown in Matrix 1, a total of approximately $15.1 million of interest income was generated from tax increment funds. Of this amount, $7.1 million (47%) was retained in the project area it from which it originated for use on eligible redevelopment activities. The balance or $7.9 million (53%) was deposited in an agency-wide pool. From FY08 through FY1 0, the pooled general revenue helped leverage strategic investments and support redevelopment activities in many underserved areas of the City. The total pool of general revenue, from all sources including interest income, during this period totaled $49.8 million. Interest income allocated from project areas represented approximately 16% of all general revenue during the 3-year period. This percentage is utilized in Matrix 2 to approximate how the interest income was invested. FY FY FY Interest Income $ 4.1million $ 3.4 million $0.4 million General Revenue $ 19.1 million $ 20.9 million $ 9.7 million % of General Revenue 21% 16% 4% Attachments: Matrix 1 - Interest Earned on Tax Increment Funds- By Region and Project Area Matrix 2 - Use of Agency-wide Pool of General Revenues

6 Matrix 1 CRAILA Interest Earned Tax Increment Funds - By Region and Project Area FY through FY (3rd Quarter) Region Project Area -- :5-06 FY F F /31/10 Amount Retained Amount Swept 5 Year by Project Area to Agency-wide Total FY06 - FY07 Pool [I] Bunker Hill Central Industrial Chinatown City Center Council District 9 Little Tokyo Total 334, ,427-52,863 9, , ,183 (21 ) 147,650 (1,193) 146,6 14 8,842 1,014, , ,469 47,833 60, ,283 17, , ,240 16,430 96,063 14, , ,448 14,354 16,827 35,122 4, , , ,588 2,131,427 1,046, ,085, ,868 (20.71 ) 217, , , , ,119 (1,192.94) 110, , , ,054 75,133 18, ,478 3,498,833 1,452,180 2,046,653 East Valley East Valley East Valley Laurel Canyon North Hollywood Pacoima/Panorama City East Valley Total 53, , , ,226 93, , ,400 1,055,926 75,177 49,784 5, , ,076 20, , ,373 65, , ,234 92, , , , , , ,125 2,469,743 1,189, ,279,780 3,501,804 1,676,152 1,825,652 Eastside Eastside Adelante Eastside Monterey Hills Eastside Total 33,992 60,245 94,238!30, , ,082 93, ,296 1,812 69,476 55,096 6, , ,393 8, , , , , , , , , ,417 East Hollywood/Bev-Norm Hollywood Mid City Pico Union I Pico Union 2 Westlake Wilshire/Koreatown Total 168, ,945 27,562 23, , , , , , ,289 41,119 29, , , ,389 1,402, , ,310 23, , ,123 36,536 46,904 36,917 5,557 17,857 11, , ,530 11, ,932 78,264 8, , ,668 63,860 1,314,055 1,138, , , , , , , , ,058 68, ,378 83,019 52, , , , , , , ,910 1,703, , ,018,464 4,898,009 2,296,076 2,601,933 Los Angeles Harbor Los Angeles Harbor Los Angeles Harbor Beacon Street LA Harbor Pacific Corridors Los Angeles Harbor Total 16,363 21,669 32,614 70,647 20,136 29,727 77, ,084 5,147 5,268 1,362 7,849 1, ,398 43,311 5,747 71,393 49,926 7,307 48,275 36, ,776 60,790 51, , , , , , , ,626 Broadway/Manchester Crenshaw/Slauson Crenshaw/Crenshaw Amend Exposition/University Park Normandie 5 Vermont/Manchester Watts Watts Corridors Western/Slauson Total 12,197 17,182 9,334 24,865 33,516 14,983 (654) 8,562 19, ,939 12,904 35,745 13,958 69,960 63,261 25,418 (203) 23,905 47, ,159 8,265 6, ,074 13,779 1,728 (3,077) (6, 176) ,906 47,847 1,907 40,893 30,304 3,697 17,102 13,871 2,027 2,310 (1,305) ,562 9, ,720 21,361 3, , ,491 14,489 40,149 25, ,048 91,507 52, , ,394 23, (8,899) 218,486 94, , ,672 96, ,894 73,400 40, , (856.59) 1,324 59,510 32, , ,248 67, , , , ,735 West Valley Reseda/Canoga Park TOTAL 252,730 $ 2,509, ,819 s 4,624, , ,853 32,065 s 4,106,589 $ 3,442,843 $ 418,545 1,466, , ,961 s 15,102,082 $ 7,134,105 $ 7,967,976 [I] Starting in F and ending in F , interest income was deposited to create an Agency-wide pool of general revenue

7 MATRIX2 c.jse of Agency-wide General Revenue Type ProJect Area FY FY FY2009-IO Total 1\ctuals Actuals 1\ctuals Land Acquisition Fund Adelante Eastside 4,200,000 4,200,000 Council District 9 2,846,324 2,846,324 Crenshaw 5,000, ,000 5,900,000 Los Angeles Harbor 49,882 49,882 Mid City Corridors 4,426, ,232 4,990,500 Normandie 5 250, , ,80 1 Vermont Manchester 527,000 7,873,000 8,400,000 Western Slauson 2,200,000 2,200,000 Westlake 1,000,000 1,000,000 Land Acquisition Fund Sum 9,373,324 16,749,268 3,970,915 30,093,508 Operating Subsidies Broadway/Manchester 53,789 37, ,3 61 CBD -Financial Core 1,066 1,066 CBD - Historic Core CBD - South Park 8,147 8, 147 Central Industrial 762, ,273 City Center 1,883,577 1,883,577 Citywide Feasibil ity Studies 155, ,505 Citywide Non-Housing 45,024 34, , ,483 Crenshaw 425, , ,950 1,683,302 Los Angeles Harbor 97,761 47, , ,661 Vermont Manchester 488, , ,200 Watts 39 1, ,1 00 Watts Corridors 21, , , 100 1,0 10,999 Operating Subsidies Sum 3,290,117 1,802,395 3,090,521 8,183,033 Project Subsidies Adams/Normandie ,440 Adelante Eastside 34,683 34,683 Administration 18,394 18,394 Beacon Street 61,227 82, , ,727 Broadway/Manchester 2,449 40,656 43,105 Bunker Hill 26,286 10,403 1,414 38,103 CBD - Area Wide Central Industrial 327,983 1,034 (75) 328,942 Chinatown 8,977 8,977 City Center 111, , ,097 Citywide Feasibi lity Sh1dies 5, , , 163 Citywide Housing 38,640 38,640 Citywide Non-Housing 17, ,356 22, ,070 Council District 9 5,493 5,493 Crenshaw 321, , ,788 1,75 1,0 12 Crenshaw/Slauson 20, ,728 91, ,563 General Agency 4, 150,684 4,150,684 Los Angeles Harbor 388, , , ,293 Mid City Corridors 69, ,282 Pacific Corridor 11,692 28,300 39,992 Rodeo/La Cienega ,432 Vermont Manchester 433, , ,525 1,386,503 Watts 3,293 3,293 Watts Corridors 349, , , ,638 Western Slauson Pr oject Subsidies Sum 6,393,103 2,398,610 2,686,887 11,478,600 Grand Total : Amount from Interest al 1601% 672, , ,850 7, ,199 81, ,345, , ,1 44 4,819,295 14, , , I,644 24, , , , , , ,905 1,310, ,554 2,946 97,644 6,903 6, ,667 1,438 66,155 19,564 6, , , , , ,393 11,095 6, , , ,838, Asof