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Home My WebLink AboutRes SA-RDA 068 - Admin Budgets Through 06/30/2019RESOLUTION NO. SA-RDA 068 STAFF REPORT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY/ MEETING DATE: January 11, 2018 REQUEST: ADOPT RESOLUTION NO. SA-RDA o68 APPROVING THE ADMINISTRATIVE BUDGETS FOR THE SIX-MONTH FISCAL PERIODS FROM JULY 1, 2018 THROUGH DECEMBER 31, 2018 AND FROM JANUARY 1, 2019 THROUGH JUNE 30, 2019, AND TAKING CERTAIN RELATED ACTIONS Recommendation By Minute Motion that the Successor Agency Board adopt Resolution SA-RDA o6s approving the Successor Agency's Administrative Budgets for the six-month periods from July 1, 2018 through December 31, 2018 ("Administrative Budget 18-19A") and from January 1, 2019 through June 30, 2019 ("Administrative Budget 18-196"), and taking certain related actions. Strateqic Plan There is no direct correlation to the strategic plan. Backqround and Analvsis 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. HSC Section 34177(0) provides that the Successor Agency must submit an Oversight Board-approved ROPS for fiscal year 2018-19 ("ROPS 18-19") to the State Department of Finance and the County Auditor-Controller no later February 1, 2018. The proposed ROPS 18-19 is being presented to the Successor Agency Board for consideration and January 11, 2018 - Staff Report ADMINISTRATIVE BUDGETS FOR 2018/2019 Page2of2 approval pursuant to a separate resolution. Administrative Budget 18-19A and Administrative Budget 18-19B 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 per 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. Prepared by: Veronica Tapi , Senior Management Analyst LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A y��-r z.{' � x Reveiwed by RWG an Moore .ane Moore Lauri Aylaian Robert W. Hargreaves C7irector of Finance � ctor of Finance City Manager Cit Attorne ATTACHMENTS: Resolution No. SA-RDA 068 .� � Administrative Budgets for 18-19A and 18-19B ' � � �� 3�' SA-RDA. �� —�� Z_i��3:3'/ �ri�;s�a� orx file with City Cl�rk's Offic� '— ti ��y �� '. I�� n � k�, I�-� ll�, �-�t��r�i�', ��.�C� �� CY�'t�1�C � �,�,�=�: �c�� RESOLUTION NO. SA-RDA o6s 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, 2018 THROUGH DECEMBER 31, 2018 AND FROM JANUARY 1, 2019 THROUGH JUNE 30, 2019, 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, 2018 through December 31, 2018 ("Administrative Budget 18-19A") and from January 1, 2019 through June 30, 2019 ("Administrative Budget 18-196," together with Administrative Budget 18-19A, 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. The above recitals are true and correct and are a substantive part of this Resolution. Section 2. Administrative Budget 18-19A, substantially in the form attached hereto as Exhibit A, is hereby approved. Section 3. Administrative Budget 18-19B, substantially in the form attached hereto as Exhibit B, is hereby approved. G'rJa�\'cronica l'apia'.�Vord 1'iles`�StaP(ReponsSuccessor Agency'Palm Desert - 5:� reso for Admin BuAgeis for IS-19 I-I I-IR doc� RESOLUTION NO. 61A-RDA 068 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 11th day of January, 2018. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Sabby Jonathan, Chair RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G'�da'\'cronica l�apia•N'orA Files\Stafl'Reports�Successor Agencv Palm Uesen - SA reso for AAmin HuJgets (i�r I%-19 I-I I-IR docs RESOLUTION N0. SA-RDA 068 EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 18-19A (July 1, 2018 through December 31, 2018) <i rda \'ernni��a �I�apia �1'ord Files�StafTReports`.Succesxor Agenc��Nalm Uesen - tiA reso f'or ,\dmm Ruclgels (or IN-19 I-I I-IR doce Exhibit "A" Successor Agency to the Palm Desert Redevelopment Agency July 1, 2018 through December 31, 2018 BASED ON ESTIMATED RPTTF DEPOSIT Jul 1- Dec 31, 2018 Estimated C� 3% Administrative Gost Allowance 483,969 ADMINISTRATIVE COSTS Auditing Service Bank Fees 10,000 30,000 Consulting Services 25,000 Legal Services 50,000 Personnel Expenditures' 368,969 2 Total Administrative Costs 483,969 A- Administrative Allowance, 8- City General Fund ' Includes salaries, training, travel, meetings, supplies, etc. Source of Payment A A A A A, 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. ROPS 18-19A Budget Jul 1- Dec 31, 2018 i2{zs/zov 5:12 PM Proposed Administrative Budgets A&B - June 30, 2019 1-22-18 RESOLUTION NO. SA-RDA 068 EXHIBIT B SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 18-196 (January 1, 2019 through June 30, 2019) G'rdah'cronica Tapia��1'ord Piles''.StafTRepo�ts�Successor Aecncy�Palm Desert - S.A iesu (or Admin 13udge�s for IR-19 I-I 616 docz Exhibit "B" Successor Agency to the Palm Desert Redevelopment Agency January 1, 2019 through June 30, 2019 BASED ON ESTIMATED RPTTF DEPOSIT Jan 1- Jun 30, 2019 Estimated C� 3% Administrative Cost Allowance 483,968 ADMINISTRATIVE COSTS Auditing Service BankFees Consulting Services Legal Services Personnel Expenditures' Total Administrative Costs A- Administrative Allowance, 8- City General Fund ' Includes salaries, training, travel, meetings, supplies, etc. 10, 000 30,000 5,000 25,000 413,968 2 483,968 Source of Payment A A A A A, B 2City staff time reimbursement costs in excess of SARDA allowable administrative costs (as adjusted per Department of Finance) will be bome by the City's General Fund. ROPS 18-19B Budget Jan 1- Jun 30, 2019 iz/zs/zon 5:12 PM Proposed Administrative Budgets A&B - June 30, 2019 1-22-18