HomeMy WebLinkAboutRes SA-RDA 020 - Proposed Admin Bdgt Jan2014 - Jun2014SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
STAFF REPORT
REQUEST: ADOPT RESOLUTION NO. SA-RDA o2o ADOPTING THE
ADMINISTRATIVE BUDGET FOR THE FIFTH SIX-MONTH
PERIOD PURSUANT TO HEALTH AND SAFETY CODE SECTION
34177 FOR THE PERIOD OF JANUARY 1, 2014 THROUGH
JUNE 30, 2014
SUBMITTED BY: Veronica Tapia, Management Analyst II
DATE: September 12, 2013
CONTENTS: Resolution SA-RDA o20
Proposed Administrative Budget (1/1/14 — 6/30/14)
Recommendation
By Minute Motion that the Successor Agency Board adopt Resolution SA-RDA o20
approving the Administrative Budget for the fifth six-month period of January 1, 2014
through June 30, 2014.
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.
Backqround
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. 5 and the ROPS for the same period ("ROPS 13-14B") are presented
concurrently.
The Successor Agency is required to submit the ROPS 13-14B to the Oversight Board
G:�rda\Veronica Tapia\Word Files\Staf£Reports\Successor Agency\SA Staff RepoR for Admin Budget 5- 9-12-13.docx
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Staff Report
Approving Administrative Budget No. 5
September 12, 2013
Page 2 of 2
for approval and then submit the Oversight Board-approved ROPS 13-14B to the State
Department of Finance, State Controller and the County Auditor-Controller no later than
October 1, 2013. Staff has prepared a ROPS 13-14B for the Oversight Board's approval
at this meeting as a separate agenda item. Staff recommends that the Board adopt
Resolution No. SA-RDA o2o approving the Administrative Budget No. 5 for the six-
month fiscal period from January 1, 2014 through June 30, 2014.
Fiscal Analvsis
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 January 1, 2014 through June
30, 2014 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.
Sub 'tted by:
p� (�J
eronica Tapia, Manag ment Analyst II
Approval:
M. Moore, Director of Housing
P I S. Gibs n, irector of Finance
BY SA-RI�1�. "�l`--C�
n M. Wohlmuth, Executive Director
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G:Uda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA StafiReport for Admin Budget 5- 9-12-13.docx
RESOLUTION NO. SA-RDA o20
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT
AGENCY APPROVING A PROPOSED ADMINISTRATIVE BUDGET
FOR THE SIX-MONTH FISCAL PERIOD FROM JANUARY 1, 2014
THROUGH JUNE 30, 2014, PURSUANT TO HEALTH AND SAFETY
CODE SECTION 34177(j) 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. Each proposed administrative budget shall include all of the following: (1)
estimated amounts for Successor Agency administrative costs for the upcoming six-
month fiscal period; (2) proposed sources of payment for the costs indentified in (1); and
(3) proposals for arrangements for administrative and operations services provided by
the City of Palm Desert (the "City") or another entity.
C. Pursuant to Health and Safety Code Section 34177(k), the Successor
Agency is required to provide administrative cost estimates, from its approved
administrative budget that are to be paid from property tax revenues deposited in the
Redevelopment Property Tax Trust Fund, to the County Auditor-Controller for each six-
month fiscal period.
D. Health and Safety Code Section 34173(h) authorizes the City to loan or
grant funds to the Successor Agency for administrative costs, but the receipt and use of
the funds must be reflected on the administrative budget or the Recognized Obligation
Payment Schedule, and an enforceable obligation is deemed to be created for the
repayment of such loans.
E. There has been presented to this Board for approval a proposed
administrative budget for the Successor Agency for the six-month fiscal period from
January 1, 2014 through June 30, 2014 ("Administrative Budget No. 5"), reflecting the
foregoing.
NOW, THEREFORE, THE BOARD OF DIRECTORS OF 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.
G:Uda\Veronica Tapia\Word Files\StaffReports\Successor Agency\SA Resolution Approving Administrative Budget 5 9-12-13.docx
RESOLUTION N0. SA-RDA 020
Section 2. This Resolution is adopted pursuant to the provisions of Health and
Safety Code Section 34177(j).
Section 3. The Board hereby approves the proposed Administrative Budget
No. 3 substantially in the form attached hereto as Exhibit A. The Executive Director of
the Successor Agency, in consultation with the Successor Agency's legal counsel, may
modify Administrative Budget No. 5 as the Executive Director or the Successor
Agency's legal counsel deems necessary or advisable.
Section 4. Staff is hereby authorized and directed to submit the proposed
Administrative Budget No. 5 to the Oversight Board for approval.
Section 5. The officers 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 and any such actions
previously taken by such officers and staff are hereby ratified and confirmed.
PASSED, APPROVED AND ADOPTED this 12th day of September, 2013.
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
JAN C. HARNIK, CHAIR
RACHELLE D. KLASSEN, SECRETARY
SUCCESSOR AGENCY TO THE
PALM DESERT REDEVELOPMENT AGENCY
G:Uda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Resolution Approving Administrative Budget 5 9-12-13.docx
RESOLUTION N0. SA-RDA 020
EXHIBIT A
SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY
ADMINISTRATIVE BUDGET
(January 1, 2014 through June 30, 2014)
G:Uda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SA Resolution Approving Administrative Budget 5 9-12-13.docx
RESOLUTION N0. SA-RDA 020
Successor Agency to the
Palm Desert Redevelopment Agency
January 1, 2014 through June 30, 2014
BASED ON ESTIMATED RPTTF DEPOSIT Jan 1- Jun 30, 2014
Estimated @ 3%
Administrative Cost Allowance 656,445
ROPS 13-14B Budget
ADMINISTRATIVE COSTS Jan 1-June 30, 2014
Auditing Service 11,367
Bank Fees 3,918
Consulting Services 30,100
Facilities Lease 33,996
Legal Services 101,672
Personne� Expenditures' 475,392 2
Total Administrative Costs 656,445
A- Administrative Allowance, B- Cify General Fund
� Includes salaries, training, travel, meetings, supplies, etc.
Source of
Payment
A
A
.A
A
A
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.
8/29/2013
10:56 AM Proposed Administrative Budget - June 30, 2014