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Home My WebLink AboutRes SA-RDA 053 - Proposed Admin BudgetSUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY STAFF REPORT REQUEST: ADOPT RESOLUTION NO. SA-RDA o53 APPROVING THE ADMINISTRATIVE BUDGETS FOR THE SIX-MONTH FISCAL PERIODS FROM JULY 1, 2016 THROUGH DECEMBER 31, 2016 AND FROM JANUARY 1, 2017 THROUGH JUNE 30, 2017, AND TAKING CERTAIN RELATED ACTIONS SUBMITTED BY: Veronica Tapia, Management Analyst II DATE: January 28, 2016 CONTENTS: Resolution SA-RDA o53 Proposed Administrative Budgets (7/1/16-12/31/16 and 1/1/17-6/30/17)) Recommendation By Minute Motion that the Successor Agency Board adopt Resolution SA-RDA o53 approving the Successor Agency's Administrative Budgets for the six-month periods from July 1, 2016 through December 31, 2016 ("Administrative Budget 16-17A") and from January 1, 2017 through June 30, 2017 ("Administrative Budget 16-17B"). Executive Summary Pursuant to 34177(j) of the California Health and Safety Code ("HSC"), 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. Backqround 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. G'�Jda�\'eronica Tapia�N'ord Piles`.StalT Repons`�Successor Agency\Palm Descrt - SA stafTrepurt (ur .4dmin Audgets for IG-17 I-28- I G docx Staff Report Approving Administrative Budgets 16-17A and 16-17B January 28, 2016 Page 2 of 2 Previously, the Successor Agency was required to prepare a ROPS for each six-month fiscal period (from July 1 through December 31 and from January 1 through June 30, respectively). SB 107, which was enacted in September 2015, amended HSC Section 34177, to provide that, beginning with fiscal year 2016-17, the Successor Agency must prepare a ROPS annually (instead of twice a year). HSC Section 34177(0) provides that the Successor Agency must submit an Oversight Board-approved ROPS for fiscal year 2016-17 ("ROPS 16-17") to the State Department of Finance and the County Auditor-Controller no later February 1, 2016. The proposed ROPS 16-17 is being presented to the Successor Agency Board for consideration and approval pursuant to a separate resolution. Administrative Budget 16-17A and Administrative Budget 16-17B will be presented to the Oversight Board for approval at the next Oversight Board meeting. Fiscal Analvsis 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 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. Sub i ed by: , Veronica Tapia, Manage ent Analyst II Ap val: � ' � J n M. Moore, Director of Housing /�� ✓ Paul S. Gibson, Director of Finance , �' � ,'? .�� L-�._._� i�f � � ;/ a Rudy costa, Assistant City Manager John M. Wohlmuth, Executive Director G trda`.Vcronica'Iapia�.WorJ Files\StafFRepons\Successor Agencylk'alm Desen - SA stafTreport for Admin Budgets for I6-17 I-28-16 docx RESOLUTION NO. SA-RDA o53 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY APPROVING PROPOSED ADMINISTRATIVE BUDGETS FOR THE SIX-MONTH FISCAL PERIODS FROM JULY 1, 2016 THROUGH DECEMBER 31, 2016 AND FROM JANUARY 1, 2017 THROUGH JUNE 30, 2017, 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. 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 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. There has been presented to this Board for approval, the Successor Agency's proposed administrative budgets for the six-month fiscal periods from July 1, 2016 through December 31, 2016 ("Administrative Budget 16-17A") and from January 1, 2017 through June 30, 2017 ("Administrative Budget 16-176," together with Administrative Budget 16-17A, the "Administrative Budgets"). 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. Section 2. Administrative Budget 16-17A, substantially in the form attached hereto as Exhibit A, is hereby approved. Section 3. Administrative Budget 16-176, substantially in the form attached hereto as Exhibit B, is hereby approved. G'vda�Veronica Tapia`�Word Files�Sta(TRcpons\Succcssor Agcncy�Pahn Dcscn - SA reso for Admin Uudgets for IG-17 I-28-16.docx RESOLDTION N0. SA-RDA 053 Section 4. The Executive Director of the Successor Agency, in consultation with the Successor Agency's legal counsel, may modify the Administrative Budgets as the Executive Director or the Successor Agency's legal counsel deems necessary or advisable. Section 5. Staff is hereby authorized and directed to submit the proposed Administrative Budgets to the Oversight Board for approval. Section 6. The officers and other staff members 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 and any such actions previously taken are hereby ratified and confirmed. PASSED, APPROVED AND ADOPTED this 28th day of January, 2016. AYES: NOES: ABSENT: ABSTAIN: ATTEST: Robert A. Spiegel, Chair RACHELLE D. KLASSEN, SECRETARY SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY G^sda\Veronica Tapia\Word Filcs\Staff Repons\Successor Agency�Palm Dcun - SA reso for Admin Budgeu for 16-17 I-28-16 docx RESOLUTION NO. SA-RDA 053 EXHIBIT A SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 16-17A (July 1, 2016 through December 31, 2016) G`ada�Vcronica Tapia�Word FilesStaf£Repons�Successor Agenty�Palm Descrt - SA reso for Admin 6udgets for 16-17 I-28-16 docx RESOLDTION NO. SA-RDA 053 EXHIBIT B SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 16-176 (January 1, 2017 through June 30, 2017) G`ada'� Veronica Tapia�.Word files'�Sta1T Re{wrts�Suacssor Agcncy�Palm Desen - SA rew for Admin Uudgeis for IG-17 I-28-Iti docx RESOLUTION NO. SA—RDA 053 Successor Agency to the Palm Desert Redevelopment Agency July 1, 2016 through December 31, 2016 BASED ON ESTIMATED RPTTF DEPOSIT Jul 1- Dec 31, 2016 Estimated @ 3% Administrative Cost Allowance 511,917 ROPS 16-17A Budget ADMINISTRATIVE COSTS Jul 1- Dec 31, 2016 Auditing Service 10,000 Bank Fees 30,000 Consulting Services 25,000 Facilities Lease 36,000 Legal Services 50,000 Personnel Expenditures' 360,917 2 Total Administrative Costs 511,917 A- Administrative Allowance, B- Cify General Fund ' Includes salaries, training, travel, meetings, supplies, etc. Source of Payment A A A A A A, B �City 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. i/iz/zoi6 12:13 PM Proposed Administrative Budgets A&B - lune 30, 2017 RESOLUTION NO. SA—RDA 053 Successor Agency to the Palm Desert Redevelopment Agency January 1, 2017 through June 30, 2017 BASED ON ESTIMATED RPTTF DEPOSIT Jan 1- Jun 30, 2017 Estimated @ 3% Administrative Cost Allowance 505,306 ADMINISTRATIVE COSTS Auditing Service Bank Fees Consulting Services Facilities Lease Legal Services Personnel Expenditures' Totai Administrative Costs ROPS 16-176 Budget Jan 1- Jun 30, 2017 10,000 30,000 25,000 36,000 50, 000 354,306 2 505,306 Source of Payment A A A A A A, B A- Administrafive Allowance, B- Cify General Fund ' Includes salaries, training, travel, meetings, supplies, etc. ZCity 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. i/iz/zoi6 12:13 PM Proposed Administrative Budgets A&B - June 30, 2017