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HomeMy WebLinkAboutItem 3 OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY AGENDA STAFF REPORT DATE: January 30, 2017 TO: Oversight Board Members FROM: Victoria L. Beatley, Staff Member SUBJECT: ADMINISTRATIVE BUDGETS FOR THE SIX-MONTH FISCAL PERIODS FROM JULY 1, 2017 THROUGH DECEMBER 31, 2017 AND FROM JANUARY 1, 2018 THROUGH JUNE 30, 2018 SUMMARY OF REQUEST: Staff recommends that the Oversight Board for the Successor Agency to the Seal Beach Redevelopment Agency (the "Oversight Board") adopt Resolution No. OB17-02 approving Successor Agency's Administrative Budgets for the six- month periods from July 1,. 2017 through December 31, 2017 ("Administrative Budget 17-18A") and from January 1, 2018 through June 30, 2018 ("Administrative Budget 17-18B"). BACKGROUND AND ANALYSIS: Pursuant to Section 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. 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 Seal Beach (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. 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, Agenda Item 3 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(o) provides that the Successor Agency must submit an Oversight Board-approved ROPS for fiscal year 2017-18 ("ROPS 17-18") to the State Department of Finance ("DOF") and the County Auditor-Controller no later February 1, 2017. The proposed ROPS 17-18 is being presented to the Oversight Board for consideration and approval pursuant to a separate resolution. Staff recommends that the Oversight Board approve Administrative Budget 17-18A and Administrative Budget 17-18B on the same date as the Oversight Board's approval of ROPS 17-18. Pursuant to HSC Section 34179(h)(1), which was added by SB 107, Oversight Board resolutions approving the Successor Agency's administrative budgets are no longer required to be submitted to the DOF for approval. Therefore, Resolution No. 17-01 will become effective immediately upon adoption. FISCAL IMPACT: 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).. 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 must 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, 2017, 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 property tax 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. RECOMMENDATION: It is recommended that the Oversight Board adopt Resolution No. OB17-02, approving the Successor Agency's Administrative Budget 17-18A and Administrative Budget 17-18B. Attachments: Resolution No. OB17-02 Exhibit A- Administrative Budget 17-18A (July 1, 2017 to December 31, 2017) Exhibit B - Administrative Budget 17-18B (January 1, 2018 to June 30, 2018) Page 2 • RESOLUTION NUMBER 0817-02 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY APPROVING PROPOSED ADMINISTRATIVE BUDGETS FOR THE SIX- MONTH FISCAL PERIODS FROM JULY 1, 2017 THROUGH DECEMBER 31, 2017, AND FROM JANUARY 1, 2018 THROUGH JUNE 30, 2018, AND TAKING CERTAIN RELATED ACTIONS RECITALS: A. Pursuant to Health and Safety Code Section 34177(j), the Successor Agency to the 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 of the Successor Agency (the "Oversight Board") for approval. B. The Successor Agency's proposed administrative budgets for the six- month fiscal periods from July 1, 2017 through December 31, 2017 ("Administrative Budget 17-18A") and from January 1, 2018 through June 30, 2018 ("Administrative Budget 17-18B," together with Administrative Budget 17-18A, the "Administrative Budgets") have been presented to this Oversight Board for approval. NOW, THEREFORE, THE OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE 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 Administrative Budget 17- 18A, substantially in the form attached hereto as Exhibit A. Section 3. The Oversight Board hereby approves Administrative Budget 17- 18B, substantially in the form attached hereto as Exhibit B. Section 4. The 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 the Administrative Budgets, including making any adjustment to the proposed Administrative Budgets to make them consistent with the Successor Agency's Recognized Obligation Payment Schedule for fiscal year 2017-18 (as such Recognized Obligation Payment Schedule is approved by the State Department of Finance). Section 5.. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or applications of this Resolution which can be given effect without the invalid provision or Resolution Number 0817-02 application, and to this end, the provisions of this Resolution are severable. The Oversight Board hereby declares that it would have adopted this Resolution regardless that one or more portion may be determined to be invalid. PASSED, APPROVED AND ADOPTED by the Oversight Board at a meeting held on the 30th day of January, 2017. AYES: Board Members: NOES: Board Members: ABSENT: Board Members: Chair, Oversight Board ATTEST: Secretary, Oversight Board STATE OF CALIFORNIA COUNTY OF ORANGE ) SS CITY OF SEAL BEACH I, Robin Roberts, Secretary to the Oversight Board, hereby certify that the foregoing resolution was duly adopted at a meeting of the Oversight Board, held on the 30th day of January, 2017. Secretary, Oversight Board 12805-0001\2033183v1.doc EXHIBIT A SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 17-18A Exhibit A SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period July 1 -December 31, 2017 CATEGORY I 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.the Successor.Agency City Manager 395 Administrative Allowance City Clerk 207 Administrative Allowance Accountant 140 Administrative Allowance Accounting Technician-Accounts Payable 101 Administrative Allowance Accounting Technician-Payroll 95 Administrative Allowance Finance Manager 205 Administrative Allowance Director of Finance 539 Administrative Allowance Staffing for the Oversight Board City Manager 395 Administrative Allowance City Clerk 207 Administrative Allowance Finance Manager 205 Administrative Allowance Director of Finance 539 Administrative Allowance Overhead•Cost Services/Facilities 471 Administrative Allowance TOTAL 3,500 Exhibit A • SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period July 1 -December 31, 2017 CATEGORY II 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 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 25.000 Administrative Allowance Trustee.Fees 1,823 Administrative Allowance Arbitrage Analysis - Administrative Allowance - Administrative Allowance TOTAL 26,823 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 Legal counsel - RPTTF Contract Expenses - RPTTF TOTAL - EXHIBIT B SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 17-18B Exhibit B SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period January 1 -June 30, 2018 CATEGORY I 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 the Successor Agency City Manager 395 Administrative Allowance City Clerk 207 Administrative Allowance Accountant 140 Administrative Allowance Accounting Technician-Accounts Payable 101 Administrative Allowance Accounting Technician-Payroll 95 Administrative Allowance Finance Manager 205 Administrative Allowance Director of Finance 539 Administrative Allowance Staffing for the Oversight Board City Manager 395 Administrative Allowance City Clerk 207 Administrative Allowance Finance Manager 205 Administrative Allowance Director of Finance 539 Administrative Allowance Overhead Cost Services/Facilities 471 Administrative Allowance TOTAL 3,500 Exhibit B SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period January 1 -June 30, 2018 CATEGORY II 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 paymentsfor 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 25,000 Administrative Allowance Trustee Fees 4,145 Administrative Allowance Arbitrage Analysis - Administrative Allowance - Administrative Allowance TOTAL 29,145 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 Legal counsel. - RPTTF Contract Expenses - RPTTF TOTAL