HomeMy WebLinkAboutRes OB-035 (2)OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE
PALM DESERT REDEVELOPMENT AGENCY
REQUEST:
SUBMITTED BY:
DATE:
CONTENTS:
Recommendation
STAFF REPORT
ADOPT RESOLUTION NO. OB - 035 APPROVING THE
ADMINISTRATIVE BUDGET FOR THE FOURTH SIX-MONTH PERIOD
PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177 FOR
THE PERIOD OF JULY 1, 2013 THROUGH DECEMBER 31, 2013
j (c►i BY OVERsIGH BOARD
ON (5-0) (, c s 'r)
VERIFIED B
Original on file with City Clerk's Office
Veronica Tapia, Accountant II
February 4, 2013
Resolution OB - 035
Proposed Administrative Budget (7/1/13 — 12/31/13)
By Minute Motion that the Oversight Board adopt Resolution OB - 035 approving the
Administrative Budget for the fourth six-month period of July 1, 2013 through December 31,
2013.
Executive Summary
Pursuant to AB X1 26 and AB 1484, the Successor Agency must prepare a proposed
administrative budget and a Recognized Obligation Payment Schedule ("ROPS") for each six-
month fiscal period, both of which must be submitted to the Oversight Board for approval.
Background
Pursuant to AB X1 26 and AB 1484, the Successor Agency's proposed administrative budget
for each six-month period 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 or other entity.
AB X1 26 and AB 1484 are unclear regarding the required timing for the submission of the
proposed administrative budget. However, because the Successor's Agency's administrative
expenditures also have to be reflected on the ROPS, Administrative Budget No. 4 and the
ROPS for the same period ("ROPS4") are presented concurrently.
The Successor Agency is required to submit the ROPS4 to the Oversight Board for approval
and then submit the Oversight Board -approved ROPS4 to the State Department of Finance,
State Controller and the County Auditor -Controller no later than March 1, 2013. Staff has
prepared a ROPS4 for the Oversight Board's approval at this meeting as a separate agenda
G'\rda\Veronica Tapia\Word Files\Oversight Board\Staff Reports\Staff Report -Adman Budget 4.doc
Staff Report — Oversight Board Approval of Administrative Budget No. 4
Page2of2
February 4, 2013
item. Staff recommends that the Board adopt Resolution No. OB - 035 approving the
Administrative Budget No. 4 for the six-month fiscal period from July 1, 2013 through
December 31, 2013.
FISCAL IMPACT
Under AB X1 26 and AB 1484, an "Administrative Cost Allowance" is paid to the Successor
Agency from property tax revenues allocated by the County Auditor -Controller. The
Administrative Cost Allowance is defined as an amount, subject to the approval of the
Oversight Board, which is up to 3% of the property tax allocated for enforceable obligations
from the Redevelopment Property Tax Trust Fund by the County Auditor -Controller. The
amount shall not be Tess than $250,000 for any fiscal year unless the Oversight Board reduces
this amount. The calculation of the Administrative Cost Allowance for the six-month period of
July 1, 2013 through December 31, 2013 will take into account any adjustments necessary for
the previous six-month administrative allowance period. In addition, the Administrative Cost
Allowance is subject to reduction if there are insufficient funds to pay the enforceable
obligations as listed on the ROPS.
Submitted by:
Veronica Tapia, Accou tant II
Approval:
J: net M. Moore, Director of Housing
M. Wohlmuth, Executive Director
Paul S. Gibson, Director of Finance
G:\rda\Veronica Tapia\Word Files\Oversight Board\Staff Reports\Staff Report-Admin Budget 4.doc
RESOLUTION NO. OB - 035
A RESOLUTION OF THE OVERSIGHT BOARD OF DIRECTORS FOR
THE SUCCESSOR AGENCY TO THE PALM DESERT
REDEVELOPMENT AGENCY APPROVING A PROPOSED
ADMINISTRATIVE BUDGET FOR THE SIX-MONTH FISCAL PERIOD
FROM JULY 1, 2013 THROUGH DECEMBER 31, 2013 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 for the Successor Agency (the "Oversight Board") for approval.
B. A proposed administrative budget for the Successor Agency for the six-
month fiscal period from July 1, 2013 through December 31, 2013 ("Administrative
Budget No. 4") has been presented to this Board for approval, and is attached hereto as
Exhibit A.
NOW, THEREFORE, THE OVERSIGHT BOARD FOR 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. . The Oversight Board hereby approves the proposed Administrative
Budget No. 4 substantially in the form attached hereto as Exhibit A.
Section 3. The officers of the Oversight Board and staff 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.
G.\rda\Veronica Tapia\Word Files\Oversight Board\Staff Reports\OB Resolution Approving Administrative Budget 4.docx
RESOLUTION NO. OB - 035
PASSED, APPROVED AND ADOPTED this 4th day of February, 2013.
AYES:
NOES:
ABSENT:
ABSTAIN:
ROBERT A. SPIEGEL, CHAIR
ATTEST:
RACHELLE D. KLASSEN, SECRETARY
OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
G \rda\Veronica Tapia\Word Files\Oversight Board \Staff Reports\OB Resolution Approving Administrative Budget 4 docx
RESOLUTION NO. OB - 035
Successor Agency to the
Palm Desert Redevelopment Agency
July 1, 2013 through December 31, 2013
BASED ON ESTIMATED RPTTF DEPOSIT
Administrative Cost Allowance
ADMINISTRATIVE COSTS
Auditing Service
Bank Fees
Consulting Services
Facilities Lease
Legal Services
Personnel Expenditures)
Total Administrative Costs
Jul 1 - Dec 31, 2012
Estimated @ 3%
675,152
ROPS4 Budget
Jul 1- Dec, 2013
11,060
1,029
29,906
33,996
98,922
500,240
675,152
A - Administrative Allowance, 8 - City General Fund
1 Includes salaries, training, travel, meetings, supplies, etc.
Source of
Payment
A
A
A
A
A
2 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.
1/23/2013
1:34 PM Proposed Administrative Budget - December 31, 2013