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Home My WebLink About2 - Administrative Budget OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY AGENDA STAFF REPORT DATE: September 23, 2015 TO: Oversight Board Members FROM: Victoria L. Beatley, Staff Member SUBJECT: ADMINISTRATIVE BUDGET FOR JANUARY 1, 2016 THROUGH JUNE 30, 2016 SUMMARY OF REQUEST: That the Oversight Board for the Successor Agency to the City of Seal Beach Redevelopment Agency adopt Resolution No. OB15-03 approving a proposed administrative budget for the six-month fiscal period from January 1, 2016 through June 30, 2015, and taking certain other related actions. BACKGROUND AND ANALYSIS: Pursuant to Part 1.85 of Division 24 of the California Health and Safety Code (the "Redevelopment Dissolution Law"), 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. 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 or other entity. The Redevelopment Dissolution Law is unclear regarding the required timing for the submission of the proposed administrative budget for the period from January 1, 2016 through June 30, 2016 (i.e., the second half of fiscal year 2015-2016 Administrative Budget 15-16B) to the Oversight Board. However, because the Successor's Agency's administrative expenditures also have to be reflected on the ROPS, Administrative Budget 15-16B and the ROPS for the same period (ROPS 15-16B) should be consistent. The Successor Agency is required to submit ROPS 15-16B to the Oversight Board for approval and then submit the Oversight Board-approved ROPS 15-16B Agenda Item 2 to the State Department of Finance ("DOF"), State Controller and the County Auditor-Controller no later than 90 days before the next scheduled date on which the County Auditor-Controller is to make a Redevelopment Property Tax Trust Fund ("RPTTF") disbursement to the Successor Agency. The deadline for submitting the Oversight Board-approved ROPS 15-16B to DOF is October 5, 2015. Staff has prepared a ROPS 15-16B for the Oversight Board's approval at this meeting as a separate agenda item. Staff recommends that the Board approve Administrative Budget 15-16B on the same date as the Board's approval of ROPS 15-16B. The Oversight Board must take action by resolution and must provide DOF, by electronic means, written notice and information about the Oversight Board's action. FISCAL IMPACT: Under the Redevelopment Dissolution Law, 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 Administrative Cost Allowance is subject to reduction if there are insufficient funds to pay the enforceable obligations as listed on the ROPS. RECOMMENDATION That the Oversight Board for the Successor Agency to the City of Seal Beach Redevelopment Agency adopt Resolution No. OB15-03 approving a proposed administrative budget for the six-month fiscal period from January 1, 2016 through June 30, 2015, and taking certain other related actions. Attachments: Resolution No. OB15-03 Exhibit A, January 1 to June 30, 2016 Administrative Budget Page 2 RESOLUTION NUMBER OB15-03 A RESOLUTION OF THE OVERSIGHT BOARD OF DIRECTORS FOR THE SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY APPROVING A PROPOSED ADMINISTRATIVE BUDGET FOR THE SIX-MONTH FISCAL PERIOD FROM JANUARY 1 THROUGH JUNE 30, 2016 AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. Pursuant to Health and Safety Code Section 34177(j), the Successor Agency to the City of Seal Beach 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. 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, 2016 through June 30, 2016(Administrative Budget 15-16B). NOW,THEREFORE,THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH 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. The Oversight Board hereby approves the proposed Administrative Budget 15-16B substantially in the form attached hereto as Exhibit Section 3. The staff of the Successor Agency is hereby directed to provide the State Department of Finance("DOF")written notice and information regarding the action taken by the Oversight Board in Section 2 of this Resolution. Such notice and information shall be provided by electronic means and in a manner of DOF's choosing. Section 4. The officers of the Oversight Board 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. PASSED,APPROVED AND ADOPTED by the Oversight Board at a meeting held on the 23!day of Se ernber„ 2015. AYES: Board Members: NOES: Board Members: ABSENT: Board Members: ABSTAIN: Board Members: Acting Chair, Oversight Board _ ATTEST: Secretary, Oversight Board STATE OF CALIFORNIA COUNTY OF ORANGE )SS CITY OF SEAL BEACH I, Tina Knapp, Secretary to the Oversight Board, hereby certify that the foregoing resolution was duly adopted at a meeting of the Oversight Board, held on the 23rd day of September, 2015. Secretary, Oversight Board Exhibit A SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period January 1 -JUNE 30,2016 CATEGORYI The items listed below include amounts to be reimbursed by the Successor Agency to the City of Seal Beach,pursuant to a Cooperative Agreement for Advance and Reimbursement of Administrative,Overhead and other Expenses("Cooperative Agreement"),by and between the City and the Successor Agency,in the form approved by the Successor Agency Board pursuant to Resolution No.SA 12-10,adopted on April 9, 2012. Pursuant to the Cooperative Agreement,the Successor Agency reimburses the City for all costs advanced by the City for the administration and operation of the Successor Agency,including but not limited to value of staff,consultants and legal counsel,office space,equipment, ,supplies,insurance and other services and facilities. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Staffing for Lhe r Aggnc City Manager (0.05%) 681 Administrative Allowance City Clerk (0.05%) 392 Administrative Allowance Accountant(0.05%) 240 Administrative Allowance Accounting Technician (1.00%) 399 Administrative Allowance Accounting Technician (0.05%) 178 Administrative Allowance Finance Manager (1.20%) 858 Administrative Allowance Director of Finance (5.00%) 5,056 Administrative Allowance afflng for the Oversight Board City Manager (0.28%) 381 Administrative Allowance City Clerk (0.28%) 219 Administrative Allowance Finance Manager (0.28%) 200 Administrative Allowance Director of Finance (0.5%) 506 Administrative Allowance Overhead Cost Services/Facilities 687 Administrative Allowance TOTAL 9,797 Exhibit A SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period January 1 -JUNE 30,2016 CATEGORYII Health&Safety Code Section 34177(k)states:"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." Listed below are the administrative cost items that the Successor Agency anticipates to pay from property tax revenues deposited in the Redevelopment Property Tax Trust Fund. These items may include amounts to be reimbursed by the Successor Agency pursuant to the Cooperative Agreement. Pursuant to Health and Safely Code Section 34177(d)(1)(F),contracts necessary for the administration and operation of the Successor Agency are enforceable obligations. Accordingly,amounts to be paid by the Successor Agency to third party vendors for equipment and supplies necessary for the administration of the Successor Agency and auditors,legal counsel and other consultants for services to the Successor Agency are listed as payments for enforceable obligations on the Recognized Obligation Payment Schedules. The Successor Agency anticipates to pay such costs from property tax revenues deposited in the Redevelopment Property Tax Trust Fund. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Legal counsel 50,000 Administrative Allowance Trustee Fees 4,073 Administrative Allowance Arbitrage Analysis - Administrative Allowance Auditing Services Administrative Allowance TOTAL 54,073 CATEGORY III Costs allocable to particular projects are considered part of the project costs. Listed below are administrative costs that are allocable to projects and not included in the tables above. These items may include amounts to be reimbursed by the Successor Agency pursuant to the Cooperative !Agreement. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Staff RPTTF Legalcounsel - RPTTF Contract Expenses - RPTTF TOTAL -