Loading...
HomeMy WebLinkAbout05G Admin Budgets - Jan-Jun 2012, July-Dec 2012 SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: APPROVE THE ADMINISTRATIVE BUDGETS FOR THE PERIODS OF JANUARY 31, 2012 THROUGH JUNE 30, 2012, AND JULY 1, 2012 THROUGH DECEMBER 31, 2012 SUBMITTED BY: Janet M. Moore, Director of Housing DATE: March 22, 2012 CONTENTS: Administrative Budgets (1/1/12— 6/30/12) & (7/1/12-12/31/12) Recommendation By Minute Motion that the Successor Agency Board: 1) Approve the administrative budgets as required under AB 1X 26 for the periods January 1, 2012 through June 30, 2012 and July 1, 2012 through December 31, 2012; and 2) Authorize staff to forward to the Oversight Board for approval. Background Pursuant to Health and Safety Code Section 34177, the Successor Agency is required to prepare an administrative budget for each six month period and submit to the Oversight Board for approval. The administrative budget includes operating costs such as auditing, legal services, trustee services, personnel costs, meeting costs and costs attributable to the wind-down of the redevelopment agency that would not have otherwise been incurred. The amounts are listed on the Recognized Obligation Payment Schedule (ROPS) and have either been approved by the former redevelopment agency as part of its operating budgets or will be approved as part of the second ROPS which covers the period of July 1, 2012 through December 31, 2012. The second ROPS (ROPS2) is being recommended for approval by the Successor Agency in a separate action. Attached are the required administrative cost budgets for both the periods of January 1, 2012 through June 30, 2012 and July 1, 2012 through December 31, 2012. Because the Oversight Board just recently had enough members for a quorum and their first meeting was March 14, 2012, this is the first opportunity for the administrative budgets to be presented although they are for both the current and forward looking six month periods. The budgets show the estimated cost allowance for the respective periods Staff Report Approving the Administrative Budget March 22, 2012 Page 2 of 2 based on AB 1X 26, however, the actual amount will depend on the amount of property tax allocated to the Successor Agency for each fiscal year and availability of funds after all other obligations are met. Staff recommends that the Successor Agency Board authorize staff to submit the administrative budgets to the Oversight Board for approval. Fiscal Analysis The administrative budgets are in furtherance of allowing the Successor Agency to pay administrative obligations of the former redevelopment agency. Submitted by: Department Head: • Jan M. Moore, Director of Housing J ti McCarthy, Assistan ' Manager Approval: °Li Su oY f ency 6 d R A 5-O Paul S. Gibson, Director of Finance J M. Wohlmuth, Executive Director Approved* BY OVERSIGHT BOARD (Reyes ABSENT) ON 04-09-2012 VERIFIED BY RDK Original on file with City Clerk's Office *With the understanding that the reimbursement for Administrative Costs included therein from the Administrative Costs Allowance shall not exceed the legal limit for the Administrative Costs Allowance and that the remainder must be paid from other funding sources. G.rda'd'atty Leon',.MM\staff repott.Admin budget 3.22-12.doc Successor Agency to the Palm Desert Redevelopment Agency January 1,2012 through December 31,2012 BASED ON FIRST HALF APPORTIONMENT RECEIVED Jan 1-Jun 30,2012 Jul 1 •Dec 31,2012 Estimated @ 5% Estimated @ 3% Administrative Cost Allowance 1,118,807 671,284 RDA Adopted Budget SA Budget SA Budget Source of ADMINISTRATIVE COSTS Jan 1 -Jun 30,2012 Jan 1-Jun 30,2012 Jul 1-Dec 31,2012 Payment Auditing Services 7,500 7,500 7,500 E Bank Fees 13,639 13,639 13,639 E Consulting Services 127,111 127,111 25,861 E Legal Services 126,500 63,145 106,500 E Meeting Costs 2,750 2,750. 1,750 D,E Office Expenditures 74,350 74,350 13,415 D,E Personnel Expenditures 1,408,655 1,074,263 922,198 D,E Training/Education 10,500 10,500 3,000 D,E Travel Expenditures 1,775 1,775 625 D,E Total Administrative Costs 1,765,280 105,033 1,094,488 D-Administrative Allowance,E-Redevelopment Property Tax Trust Fund Costs related to items identified by"E"may be considered part of the administrative cost Allowance depending on interpretation of AB1X26 by the Department of Finance. Due to the enactment of AB1 X26,a portion of these costs are attributable to the wind-down of the redevelopment agency and would not have otherwise been incurred. These costs,therefore may be consdiered part of the administrative cost allowance:however,the legislation is silent on this issue. 3/1312012 Admin Budget 10:24 AM