HomeMy WebLinkAboutTransfer of Funds to Successor Agency Fund 703CITY OF PALM DESERT
FINANCE DEPARTMENT
Staff Report
REQUEST: AUTHORIZATION TO TRANSFER AN AMOUNT OF
$9,099,999.95 PLUS INTEREST OF $229,935.17 FROM FUNDS
110, 231, 400 AND 430 TO SUCCESSOR AGENCY FUND 703
SUBMITTED BY: PAUL S. GIBSON, FINANCE DIRECTOR
DATE: DECEMBER 13, 2012
CONTENTS: CALIFORNIA STATE CONTROLLER LETTER
Recommendation
By Minute motion, that the City Council authorize the transfer of funds in
the amount of $9,099,999.95 plus interest in the amount of $229,935.17
from Funds 110, 231, 400 and 430 to Fund 703.
Background
On June 6, 1993, Council adopted Resolution No. 93-54 establishing a
Redevelopment Revolving Fund. Subsequent Resolution Nos. 93-92, 95-15, 97-
23, 99-70, 99-114, 01-94 and 02-64 amended Resolution No. 93-54 to make
appropriations to the Redevelopment Revolving Fund. On January 17, 2011, the
Palm Desert Redevelopment Agency Board adopted Resolution No. 580, which
approved a transfer from the Redevelopment Revolving Fund to repay a City
advance to the revolving fund. In February 2011 the transfer was made in the
amounts of $6,599,999.95 to Fund 110 and $2,500,000 to Fund 400.
On June 29, 2011, the California Governor signed AB X1 26 and AB X1 27,
which required the dissolution of all California Redevelopment Agencies and
authorized the creation of the Successor Agencies to manage the Agency's
remaining assets. Although the transfer of redevelopment funds to the City
occurred prior to the effective date of the Redevelopment Agency dissolution, on
April 20, 2012 a letter was received from the State Controller relative to assets
transferred after January 1, 2011, stating that the city is "ordered to immediately
reverse the transfer and return the applicable assets to the successor agency of
the relevant redevelopment agency".
GAFinancelNiamh OrtegalStaff ReportslTransfer Of Funds From SA To City 121312. Docx
Staff Report
Authorization to transfer funds from City to Successor Agency account
December 13, 2012
Page 2 of 2
In order to comply with the State Controller's order, staff requests authorization to
reverse the transfers along with interest to the following funds:
Fund 110 $ 6,599,999.95
Fund 400 2,500,000.00
Total reversal $ 9,099,999.95
Fund 110
$ 74,602.34
Fund 231
8,174.46
Fund 400
87,599.59
Fund 430
59,558.78
Total Interest
$ 229,935.17
Total transfer $ 9,329,937.12
Fiscal Analysis
This mandatory transfer will reduce Funds 110, 231, 400 and 430 by a total
amount of $9,329,935.12.
Submitted by:
AauIS.son, Finance Director
Approval:
n M. Wohlmuth, City Manager
CIT"OUNCILA9"ON
APPROVED ✓✓ DENNY)
RECEIVED OTHER
WA
Original on File with City Cerk's Office
jOHN CHIANG
(11alifurnia .?tatr Uontro.11er
April 20, 2012
Successor Agency/City
County Auditor -Controller
All Other Public Agencies in California (including Economic Development Corporations and
Joint Powers Authorities)
Re: Order to Reverse RDA Asset Transfer Pursuant to Health and Safety Code Section 34167.5
Dear City, County, or Public Agency:
Pursuant to Health and Safety Code section 34167.5, the Controller is reviewing the
activities of redevelopment agencies in the state to determine whether an asset transfer has
occurred after January 1, 201.1, between the city or county, or city and county that created a
redevelopment agency or any other public agency, and the redevelopment agency.
If your city, county or agency, directly or indirectly, received any assets from a
redevelopment agency after January 1, 2011, your city, county, or agency hereby is ordered to
immediately reverse the transfer and return the applicable assets to the successor agency of the
relevant redevelopment agency.
This order applies to all assets, including, but not limited to, real and personal property,
cash funds, accounts receivable, deeds of trust and mortgages, contract rights and any rights to
payment of any kind. Under Health and Safety Code section 34167.5, this order applies in all
situations except if your city, county, or agency has, prior to June 28, 2011, contractually
committed to a third party for an expenditure or encumbrance of a specific asset. This order
directly applies to economic development corporations, joint powers authorities, or other public
agencies that received assets, directly or indirectly, from a redevelopment agency after
January 1, 2011.
In the coming weeks, the Controller will specifically review and audit cities, counties,
and public agencies to ensure that all applicable asset transfers have been reversed. If you have
any question as to whether a particular asset must be returned, you should place such assets into
a reserve pending our review.
Thank you for your cooperation.
Sincerely,
Original signed by:
JOHN CHIANG
California State Controller
'i .r.> 814 • P C: F x .
�c^ r.�. �icr,3rt,v-va C_;+ 4�Z�0 br � .c- 2r'i:r: • i,�. .
1
mr._r+.M j i.. 0 1l.asA, rs.CA00017•:LI.i,8;ofr1p.r._...`!31:3:_—&.