HomeMy WebLinkAboutRes OB-117 (2)OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. OB -117 APPROVING THE
ADMINISTRATIVE BUDGET FOR THE SIX-MONTH PERIOD FROM
JULY 1, 2015 THROUGH DECEMBER 31, 2015 PURSUANT TO
HEALTH AND SAFETY CODE SECTION 34177
SUBMITTED BY: Veronica Tapia, Management Analyst II
DATE: February 12, 2015
CONTENTS: Resolution OB - 117
Proposed Administrative Budget (7/1/15 - 12/31/15)
Recommendation
By Minute Motion that the Oversight Board adopt Resolution OB - 117 approving the
Administrative Budget for the six-month period of July 1, 2015 through December 31, 2015.
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. 8 and the
ROPS for the same period ("ROPS 15-16A") are presented concurrently.
The Successor Agency is required to submit the ROPS 15-16A to the Oversight Board for
approval and then submit the Oversight Board -approved ROPS15-16A to the State
Department of Finance, State Controller and the County Auditor -Controller no later than March
3, 2015. Staff has prepared a ROPS 15-16A for the Oversight Board's approval at this meeting
as a separate agenda item. Staff recommends that the Board adopt Resolution No. OB
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Staff Report — Oversight Board Approval of Administrative Budget No. 8
Page 2 of 2
February 12, 2015
approving the Administrative Budget No.8 for the six-month fiscal period from July 1, 2015
through December 31, 2015.
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 less 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, 2015 through December 31, 2015 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:
eronica Tapia,
Analyst II
Manage ent
Approval:
M. Moore, Director of Housing
n M. Wohlmuth, Executive Director
Paul S. Gibson, Director of Finance
(6,-0 , -C-concs4141 ike>S-Gar)
BY OVERSIGHT BOARD
ON
VERIFIED B
Original on file with City Clerk's Office
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RESOLUTION NO. OB - 117
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, 2015 THROUGH DECEMBER 31, 2015 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, 2015 through December 31, 2015 ("Administrative
Budget No. 8") 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. 5 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.
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RESOLUTION NO. OB-117
PASSED, APPROVED AND ADOPTED this23rdday of February, 2015.
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
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RESOLUTION NO. OB-117 EXHIBIT A
Successor Agency to the
Palm Desert Redevelopment Agency
July 1, 2015 through December 31, 2015
BASED ON ESTIMATED RPTTF DEPOSIT Jul 1 - Dec 31, 2015
Estimated @ 3%
Administrative Cost Allowance 566,362
ROPS 15-16A Budget Source of
ADMINISTRATIVE COSTS Jul 1 - Dec 31, 2015 Payment
Auditing Service 10,000 A
Bank Fees 30,000 A
Consulting Services 25,000 A
Facilities Lease 36,000 A
Legal Services 50,000 A
Personnel Expenditures 415,362 2 A, B
Total Administrative Costs 566,362
A - Administrative Allowance, B - City General Fund
1 Includes salaries, training, travel, meetings, supplies, etc.
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.
2/6/2015
10:43 AM Proposed Administrative Budget - December 31, 2015
RESOLUTION NO. OB - 117
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