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Home My WebLink AboutRes SA-RDA 064 - Admin Budget 17-18ARESOLUTION N0. SA-RDA 064 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION NO. SA-RDA o64 APPROVING THE ADMINISTRATIVE BUDGETS FOR THE SIX-MONTH FISCAL PERIODS FROM JULY 1, 2017 THROUGH DECEMBER 31, 2017 AND FROM JANUARY 1, 2018 THROUGH JUNE 30, 2018, AND TAKING CERTAIN RELATED ACTIONS SUBMITTED BY: Veronica Tapia, Senior Management Analyst DATE: January 26, 2017 CONTENTS: Resolution SA-RDA o64 Proposed Administrative Budgets (7/1/17-12/31/17 and 1/1/18-6/30/18)) Recommendation By Minute Motion that the Successor Agency Board adopt Resolution SA-RDA o64 approving the Successor Agency's Administrative Budgets for the six-month periods from July 1, 2017 through December 31, 2017 ("Administrative Budget 17-18A") and from January 1, 2018 through June 30, 2018 ("Administrative Budget 17-18B"). Executive Summary Pursuant to 34177(j) of the California Health and Safety Code ("HSC"), the Successor Agency is required to prepare a proposed administrative budget for each six-month fiscal period, which must be submitted to the Oversight Board for approval. Backqround The Successor Agency is required to prepare a proposed administrative budget for each six-month fiscal period, which must be submitted to the Oversight Board for approval. Each proposed administrative budget must include all of the following: (1) estimated amounts for Successor Agency administrative costs for the applicable six- month fiscal period; (2) proposed sources of payment for the administrative costs; and (3) proposals for arrangements for administrative and operations services provided by the City of Palm Desert (the "City") or other entity. HSC Section 34177 is unclear regarding the required timing for the submission of the proposed administrative budgets to the Oversight Board. However, because the Successor's Agency's administrative expenditures also have to be reflected on the Successor Agency's Recognized Obligation Payment Schedules ("ROPS"), the administrative budgets should be consistent. (i rJ��'cionica'1'apia��brd f�iles`$talTRepu�ts�.tiuceessor :\grnev�Palm Desen - S-\ s�affrepun f'or Admin Rudgels for 17-I8 I-26-17 docx Staff Report Approving Administrative Budgets 17-18A and 17-18B January 26, 2017 Page 2 of 2 Previously, the Successor Agency was required to prepare a ROPS for each six-month fiscal period (from July 1 through December 31 and from January 1 through June 30, respectively). SB 107 provides that, beginning with fiscal year 2016-17, the Successor Agency must prepare a ROPS annually. HSC Section 34177(0) provides that the Successor Agency must submit an Oversight Board-approved ROPS for fiscal year 2017-18 ("ROPS 17-18") to the State Department of Finance and the County Auditor- Controller no later February 1, 2017. The proposed ROPS 17-18 is being presented to the Successor Agency Board for consideration and approval pursuant to a separate resolution. Administrative Budget 17-18A and Administrative Budget 17-18B will be presented to the Oversight Board for approval at the next Oversight Board meeting. Fiscal Analvsis Under HSC Section 34171(b), the "Administrative Cost Allowance" is the maximum amount of administrative costs that may be paid by the Successor Agency from property tax revenues allocated by the County Auditor-Controller (i.e., disbursements from Redevelopment Property Tax Trust Fund ("RPTTF")). The Successor Agency's annual administrative costs (except for administrative costs paid from bond proceeds or grant funds) must not exceed 50 percent of the total RPTTF moneys distributed to pay enforceable obligations in the preceding fiscal year (which latter amount to be reduced by the Successor Agency's Administrative Cost Allowance and loan repayments made to the City for loans re-established pursuant to HSC Section 34191.4 (the "City Loans") during the preceding fiscal year). Subject to the foregoing, commencing July 1, 2016, and for each fiscal year thereafter, the Administrative Cost Allowance is the greater of: (i) $250,000 fiscal year, or (ii) 3 percent of the actual RPTTF moneys distributed to the Successor Agency by the County Auditor-Controller in the preceding fiscal year for payment of approved enforceable obligations, reduced by the Successor Agency's administrative cost allowance and repayments made to the City Loans during the preceding fiscal year. Sub itted b : � �`%l%'�L � �� _� �a � ` l' Y ...�..�... ��;�� s.�-�?.� �,� �, �.:�T� , _b_.. �� ,.�...�..�� ' .�.. � � � 7 .ti.e.r..,w.v.�� Veronica Tapia, Senior anagement Analyst ��,�� ,.� ;,� �;-z��.�/'� :�� Approval: _ C)��fn�� e�n :�e �ao.� �i�� i::!` _I:� C��ce �� /l�c f�, k� I/y, I U-�1 f�ri ��'�' , � ' �, Ge�� r, �c��c� �l�t rn � l� an M. Moore, Director of Finance ��ICL �s' i�l��l L—_ auri Aylaian, Executive Director G�.\rda\Veronica Tapia\Word Piles\Staff Reports\Successor Agency�Palm Desert - SA staff report for Admin Budgets for 17-18 I-26-17.docx RESOLUTION NO. SA-RDA o64 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PROPOSED ADMINISTRATIVE BUDGETS FOR THE SIX-MONTH FISCAL PERIODS FROM JULY 1, 2017 THROUGH DECEMBER 31, 2017 AND FROM JANUARY 1, 2018 THROUGH JUNE 30, 2018, AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. Pursuant to Health and Safety Code Section 34177(j), the Successor Agency to the Palm Desert Redevelopment Agency (the "Successor Agency") must prepare a proposed administrative budget for each six-month fiscal period (commencing each January 1 and July 1) and submit each proposed administrative budget to the oversight board of the Successor Agency (the "Oversight Board") for approval. B. Each proposed administrative budget shall include all of the following: (1) estimated amounts for Successor Agency administrative costs for the upcoming six- month fiscal period; (2) proposed sources of payment for the costs indentified in (1); and (3) proposals for arrangements for administrative and operations services provided by the City of Palm Desert or another entity. C. Pursuant to Health and Safety Code Section 34177(k), the Successor Agency is required to provide administrative cost estimates, from its approved administrative budget that are to be paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the County Auditor-Controller for each six- month fiscal period. D. There has been presented to this Board for approval, the Successor Agency's proposed administrative budgets for the six-month fiscal periods from July 1, 2017 through December 31, 2017 ("Administrative Budget 17-18A") and from January 1, 2018 through June 30, 2018 ("Administrative Budget 17-18B," together with Administrative Budget 17-18A, the "Administrative Budgets"). NOW, THEREFORE, THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY, HEREBY FINDS, DETERMINES, RESOLVES, AND ORDERS AS FOLLOWS: Section 1. of this Resolution. Section 2 The above recitals are true and correct and are a substantive part Administrative Budget 17-18A, substantially in the form attached hereto as Exhibit A, is hereby approved. Section 3. Administrative Budget 17-18B, substantially in the form attached hereto as Exhibit B, is hereby approved. (i rd'n \'eiunica �Iapia�.\lbrd Fileti S�n�lReportti tiucce.ixoi ,\genec Palm Deseit - S,\ reso fbr AAmin Budge�s �iir 17-IR I-26-17 ducs RESOLUTION N0. SA-RDA 064 Section 4. The Executive Director of the Successor Agency, in consultation with the Successor Agency's legal counsel, may modify the Administrative Budgets as the Executive Director or the Successor Agency's legal counsel deems necessary or advisable. Section 5. Staff is hereby authorized and directed to submit the proposed Administrative Budgets to the Oversight Board for approval. Section 6. The officers and other staff members of the Successor Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable to effectuate this Resolution and the Administrative Budgets and any such actions previously taken are hereby ratified and confirmed. PASSED, APPROVED AND ADOPTED this 26th day of January, 2017. AYES: NOES: ABSENT: ABSTAIN: ATTEST: JAN C. HARNIK, CHAIR RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G�rdn \'eronicn "I'apin'N'orJ Files•titafT Repnns Successor A�enc�� 1'alni Desen - ti:\ reso for Admin 14udgeis Ibr 17-IS I-26-I� docx RESOLUTION N0. SA—RDA 064 Successor Agency to the Palm Desert Redevelopment Agency July 1, 2017 through December 31, 2017 BASED ON ESTIMATED RPTTF DEPOSIT Jul 1- Dec 31, 2017 Estimated @ 3% Administrative Cost Allowance 659,695 ROPS 17-18A Budget ADMINISTRATIVE COSTS Jul 1- Dec 31, 2017 Autliting Service 10,000 Bank Fees 30,000 Consulting Services 25,000 Legal Services 50,000 Personnel Expenditures' 544,695 2 Total Administrative Costs 659,695 A- Administrafive Allowance, 8- City General Fund ' Includes salaries, training, travel, meetings, supplies, etc. Source of Payment A A A A A, B Exhibit "A" 2City staff time reimbursement costs in excess of SARDA allowable administrative costs (as adjusted per Department of Finance) will be borne by the City's General Fund. i/is/zoi� 1:34 PM Proposed Administrative Budgets A&B - June 30, 2018 RESOLUTION N0. SA—RDA 064 Successor Agency to the Palm Desert Redevelopment Agency January 1, 2018 through June 30, 2018 BASED ON ESTIMATED RPTTF DEPOSIT Jan 1- Jun 30, 2018 Estimated @ 3% Administrative Cost Allowance 485,860 ROPS 16-176 Budget ADMINISTRATIVE COSTS Jan 1- Jun 30, 2018 Auditing Service 10,000 Bank Fees 30,000 Consulting Services 5,000 Legal Services 25,000 Personnel Expenditures' 415,860 2 Total Administrative Costs 485,860 A- Administrative Allowance, 8- City General Fund ' Inclutles salaries, training, travel, meetings, supplies, etc. Source of Payment A A A A A, B Exhibit "B" 2City staff time reimbursement costs in excess of SARDA allowable administrative costs (as adjusted per Department of Finance) will be borne by the City's General Fund. i/is/Zoi� 1:34 PM Proposed Administrative Budgets A&B - June 30, 2018