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Home My WebLink AboutRes OB-167 (2)OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT MEETING DATE: January 22, 2018 REQUEST: ADOPT RESOLUTION NO. OB - 167 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 Recommendation By Minute Motion that the Oversight Board adopt Resolution OB - 167 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 18-19B"). Background and Analysis 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(o) 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 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. January 22, 2018 - Staff Report ADMINISTRATIVE BUDGETS FOR 2018/2019 Page 2 of 2 Fiscal Analysis 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. A' J Prepared by: Veronica TaOa, Senior Management Analyst LEGAL REVIEW DEPT. REVIEW FINANCIAL REVIEW CITY MANAGER N/A Reveiwed by RWG Robert W. Hargreaves City Attorney t Moore Director of Finance �Ja t Moore erector of Finance ATTACHMENTS: Resolution No. OB - 167 Administrative Budgets for 18-19A and 18-19B ('(✓ _llY OVERSIGHT OARDSGeT> ON 1 —`a =) 9-t 1 ' ' VERIFIED BY-E Original on file with City Clerk's Office Lauri Aylaian City Manager RESOLUTION NO. OB - 167 A RESOLUTION OF THE OVERSIGHT BOARD 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. 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 18-19B," together with Administrative Budget 18-19, the "Administrative Budgets") have been presented to this Oversight Board for approval. 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 Administrative Budget 18- 19A, substantially in the form attached hereto as Exhibit A. Section 3. The Oversight Board hereby approves Administrative Budget 18- 19B, substantially in the form attached hereto as Exhibit B. Section 4. The 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 and the Administrative Budgets, including making any adjustment to the proposed Administrative Budgets to make them consistent with the Successor Agency's Recognized Obligation Payment Schedule for fiscal year 18-19 (as such Recognized Obligation Payment Schedule is approved by the State Department of Finance). Section 5. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or application, and to this end, the provisions of this Resolution are severable. The RESOLUTION NO. OB - 167 Oversight Board hereby declares that it would have adopted this Resolution regardless that one or more portion may be determined to be invalid. PASSED, APPROVED AND ADOPTED this 22nd day of January, 2018. 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'.Vcronica Tapia'w'ord Files',Staff Reports'.Oversight BoardsPalm Desert - OB reso for Admin Budgets for 18-19 1-22-18 docx 2 RESOLUTION NO. OB - 167 EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 18-19A RESOLUTION NO. OB - 167 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 @ 3% Administrative Cost Allowance 483,969 ROPS 18-19A Budget Source of ADMINISTRATIVE COSTS Jul 1 - Dec 31, 2018 Payment Auditing Service 10,000 A Bank Fees 30,000 A Consulting Services 25,000 A Legal Services 50,000 A Personnel Expenditures' 368,969 2 A, B Total Administrative Costs 483,969 A - Administrative Allowance, B - City General Fund ' Includes salaries, training, travel, meetings, supplies, etc. Exhibit "A" 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. 12/28/2017 5:12 PM Proposed Administrative Budgets A&B - June 30, 2019 1-22-18 RESOLUTION NO. OB - 167 EXHIBIT B SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 18-19B RESOLUTION NO. OB - 167 Successor Agency to the Palm Desert Redevelopment Agency January 1, 2019 through June 30, 2019 BASED ON ESTIMATED RPTTF DEPOSIT Administrative Cost Allowance Jan 1 - Jun 30, 2019 Estimated @ 3% 483,968 ROPS 18-19B Budget Source of ADMINISTRATIVE COSTS Jan 1 - Jun 30, 2019 Payment Auditing Service 10,000 A Bank Fees 30,000 A Consulting Services 5,000 A Legal Services 25,000 A Personnel Expenditures' 413,968 2 A, B Total Administrative Costs 483,968 A - Administrative Allowance, B - City General Fund ' Includes salaries, training, travel, meetings, supplies, etc. 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. 12/28/2017 5:12 PM Proposed Administrative Budgets A&B - June 30, 2019 1-22-18