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Information |
TITLE: |
Consideration and Approval of Budget Adjustment: Fiscal Year 2023-24 Budget Adjustment for Housing Incentive Program Funds with possible allocation of incentive funds for affordable housing within Block 1 of the Timber Sky Final Block Plat. |
STAFF RECOMMENDED ACTION: |
- Approve the transfer of budget appropriations from the General Fund Contingency account to the Housing and Community Services Fund's Affordable Housing Incentives program in the amount of $1,100,000.
- Direct City Manager and staff to approve the allocation of incentive funds (waiver and/or reimbursement of applicable fees as set forth in the Incentive Policy for Affordable Housing) for affordable housing to be constructed in Block 1 of the Timber Sky Final Block Plat.
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Executive Summary: |
City staff is recommending transferring funds to enhance our funding for the Incentive Policy for Affordable Housing program. City staff has identified $1,100,000 in the General Fund Contingency account that may be transferred for this purpose. Because these resources in the Fiscal Year 2023-24 exist in separate city divisions and city funds, we recommend Council adopt the recommended Fiscal Year 2023-24 Budget Adjustment.
The City has received a request for funding to support the affordable rental units included as part of the Timber Sky development (specifically Block 1 of the Timber Sky Final Block Plat). If approved by Council, the reallocated funds will be set aside for this Timber Sky rental project. Should that project not move forward as anticipated, we will return to Council for further direction regarding the reallocated funds.
Additionally, it is anticipated that the Affordable Housing Incentive Fund will continue to see budgetary allocations in future years to incentivize similar projects. |
Financial Impact: |
The approval of the FY 2023-24 Budget Adjustment will reduce General Fund budget appropriations and increase the Housing and Community Services Fund budget appropriations. This action does not make any financial commitment to use or obligate these funds.
Per state statutes, the City is not allowed to increase our total budget after adoption, therefore we recommend transferring budget authority for a net zero impact to the total adopted budget. In addition, by authorizing this transfer of budget appropriations, the City will be reducing future capacity for other expenditures in the General Fund by this amount.
- Decrease General Fund account 001-99-000-0000-0-4277 by $1,100,000
- General Fund Revenue Transfer to Housing and Community Services Fund 001-00-000-0000-0-7021 by $1,100,000
- Increase Housing Fund account 021-05-106-0362-4-4290 by $1,100,000.
- Housing and Community Services Fund Revenue Transfer from General Fund 021-00-000-0000-0-6001 by $1,100,000
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Policy Impact: |
City Council has the responsibility to adopt an annual budget and this action would reallocate resources as adopted in June 2023. |
Connection to PBB Key Community Priorities/Objectives & Regional Plan: |
Priority Based Budget Key Community Priorities and Objectives
Livable Community: Support the development of attainable and accessible housing
Regional Plan
Neighborhoods, Housing, & Urban Conservation: Goal NH.3. Make available a variety of housing types at different price points,
to provide housing opportunity for all economic sectors. |
Previous Council Decision on This: |
None |
Options and Alternatives: |
- Approve the FY 2023-24 Budget Adjustment as recommended.
- Adjust and approve the FY 2023-24 Budget Adjustment.
- Do not approve the FY 2023-24 Budget Adjustment and 1) direct staff to seek other resources within the Community Development Section or 2) do not provide funds to the Affordable Housing Incentives program and consider as part of the FY 2024-25 budget allocations.
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Background and History: |
As part of the Fiscal Year 2023-24 Adopted Budget, Council approved a contingency set aside in the General Fund. A portion of this contingency amount includes $1.1 million related to our Public Safety Personnel Retirement Plan (PSPRS) set aside related to our PSPRS Contingency Reserve Policy to be available in the current year in case the annual actuarial report demonstrates our pension plans are less than 100% funded. The Police and Fire plans were an average of 105% funded as of 6/30/2022. Staff has determined that the PSPRS Plan has performed well last fiscal year and we do not see a need to utilize the $1.1 million to send to PSPRS this fiscal year.
The Affordable Housing Incentive Program was provided $130,000 in new funding for the Fiscal Year 2023-24 Adopted Budget. This year we have received several inquiries to utilize the Incentive Policy for Affordable Housing for development that isn't lining up with the traditional fiscal year budget process. Staff has discussed our abilities to increase this funding in the current fiscal year to potentially assist with affordable housing in our community. Instead of waiting for the FY 2024-25 budget adoption process to add funds to the program, staff is seeking Council's approval of this item to increase the program. |
Key Considerations: |
The City Council has declared a Housing Emergency and this funding can help address that declaration. |