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Home My WebLink AboutSA-RDA 044 - Administrative Budget - JUL-DEC 2015SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION NO. SA-RDA o44 ADOPTING THE ADMINISTRATIVE BUDGET FOR THE SIX-MONTH FISCAL PERIOD FROM JULY 1, 2015 THROUGH DECEMBER 31, 2015, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(j) AND TAKING CERTAIN RELATED ACTIONS SUBMITTED BY: Veronica Tapia, Management Analyst II DATE: February 12, 2015 CONTENTS: Resolution SA-RDA o44 Proposed Administrative Budget (7/1/15-12/31/15) Recommendation By Minute Motion that the Successor Agency Board adopt Resolution SA-RDA o44 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. 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. 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 G:\rda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SR Admin Budget 8- 2-12-IS.docx Staff Report Approving Administrative Budget No. 8 February 12, 2015 Page 2 of 2 for approval and then submit the Oversight Board-approved ROPS 15-16A 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. SA-RDA o44 approving the Administrative Budget No. 8 for the six- month fiscal period from July 1, 2015 through December 31, 2015. 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 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. Sub 'tted by: Veronica Tapia, Manage ent Analyst II Approval: Moore, Director of Housing Paul S. Gib on, Director of Finance ��-� �i' St�-�[�A�� n M. Wohlmuth Executive Director �� '` �'� �� „� � VE�[FIEI� BY ;��, � ~ Uri�inal or� fi�� th �i€�- �l�r ' Off ce f�4��S : f��fn �k ;,.��f �cr�, S{>>�el �"c�n�Kr, ¢ ��r , ,��oE:� `. ��n�_ G:Uda\Veronica Tapia\Word Files\Staff Reports\Successor Agency\SR Admin Budget 8- 2-12-15.docx RESOLUTION NO. SA-RDA o44 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 JULY 1, 2015 THROUGH DECEMBER 31, 2015, 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 July 1, 2015 through December 31, 2015 ("Administrative Budget No. 8"), 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\StafiReports\Successor Agency\SA Resolu[ion Approving Administrative Budget 8 2-12-i5.docx Resolution No. SA-RDA 044 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. 6 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. 8 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. 8 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 February, 2015. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Susan Marie Weber, 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 8 2-12-IS.docx EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET (July 1, 2015 through December 31, 2015) G:\rda\Veronica Tapia\Word Files\StaffReports\Suceessor Agency\SA Resolution Approving Administrative Budget 8 2-12-15.docx 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 ADMINISTRATIVE COSTS Jul 1- Dec 31, 2015 Auditing Service 10,000 Bank Fees 30,000 Consulting Services 25,000 Facilities Lease 36,000 Legal Services 50,000 Personnel Expenditures' 415,362 2 Total Administrative Costs 566,362 A- Administrafive Allowance, 8- City 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. 2/6/Zois 10:43 AM Proposed Administrative Budget - December 31, 2015