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HomeMy WebLinkAboutItem 3OVERSIGHT BOARD TO THE SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY AGENDA STAFF REPORT DATE: January 23, 2018 TO: Oversight Board Members FROM: Victoria L. Beatley, Staff Member SUBJECT: ADMINISTRATIVE BUDGETS FOR THE SIX-MONTH FISCAL PERIODS FROM JULY 1, 2018 THROUGH DECEMBER 31, 2018 AND FROM JANUARY 1, 2019 THROUGH JUNE 30, 2019 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. OB18-02 approving Successor Agencys Administrative Budgets for the six- month periods from July 1, 2018 through December 31, 2018 ("Administrative Budget 18-19A") and from January 1, 2019 through June 30, 2019 ("Administrative Budget 18-19B"). 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 2018-19 ("ROPS 18-19") to the State Department of Finance ("DOF") and the County Auditor -Controller no later February 1, 2018. The proposed ROPS 18-19 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 18-19A and Administrative Budget 18-19B on the same date as the Oversight Board's approval of ROPS 18-19. 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. OB 18-02 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, 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 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. OB 18-02, approving the Successor Agency's Administrative Budget 18-19A and Administrative Budget 18-19B. Attachments Resolution No. OB 18-02 Exhibit A - Administrative Budget 18-19A (July 1, 2018 to December 31, 2018) Exhibit B - Administrative Budget 18-19B (January 1, 2019 to June 30, 2019) Page 2 RESOLUTION NUMBER OB 18-02 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, 2018 THROUGH DECEMBER 31, 2018, AND FROM JANUARY 1, 2019 THROUGH JUNE 30, 2019, 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, 2018 through December 31, 2018 ("Administrative Budget 18-19A") and from January 1, 2019 through June 30, 2019 ("Administrative Budget 18-19B," together with Administrative Budget 18-19A, 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 18- 19A, substantially in the form attached hereto as Exhibit A. Section 3. The Oversight Board hereby approves Administrative Budget 18- 196, 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 2018-19 (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 OB 18-02 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 23rd day of January, 2018. AYES: Board Members: NOES: Board Members: ABSENT: Board Members: Vice Chair, Oversight Board ATTEST: Secretary, Oversight Board STATE OF CALIFORNIA ) COUNTY OF ORANGE ) SS CITY OF SEAL BEACH ) I, Robin L. 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 23rd day of January, 2018. Secretary, Oversight Board 12805 001 \20331830.A EXHIBIT A SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 18-19A Exhibit A SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period July 1 - December 31, 2018 CATEGORY Tie Items listed below include amounts to be reimbursed by the Successor Agency to the City of seal Beal, pursuant to a Cooperative Agreement far Advance and Reimbursement of Administrative, Overhead and other Expenses ('Cooperative Agreement'), by and bet eetn 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 ot staff, consultants and legal counsel, office space, equipment, supplies, insurance and other services and facilitles. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Starling for the Successor Agency City Manager 285 Administrative Allowance CM Clerk IISS Administrative Allowence Accountant 112 Administrative Allowance Accounting Technician- Accounts Payable 101 Administrative Allowance Accounting Technician - Payroll 95 Administrative Allowance Finance Manager 184 Administrative Allowance Director of Fluence 824 Administrative Allowance Staflina for the Oversight Board City Manager 158 Administrative Allowance City Clerk 185 Administrative Allowance Finance Manager 123 Administrative Allowance Director of Finance 218 Administrative Allowance Overhead Cost Services/Fadlities 92 Administrative Allowance TOTAL 2,000 Exhibit A SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period July 1 - December 31, 2018 CATEGORY II Health A Safety Code Section 36177 (k) states: 'Provide administrative cost estimates, from its approved administratNe budget that are to be pak from property tax revenues deposited In the Redevelopment Property Tax Trust fund to the county auditor -controller for each six-month fiscal period.' Llsted below are the administrative cost items that the Successor Agency antidpxtes to pay from property tax revenues deposited In the Redevelopment Property Tax Tmst Fund These Rams may Include amounts to be reimbursed by the successor Agency pursuant to the Cooperative Agreement. pursuant to Health and Safety code section 36177)d)III(F), common; necessary for the administration and operation of the Successor Agency are enforceable obligations. Accordingly, amounts to he paid "a Successor Agency to third party vendors for equipment and supplies necessary for the administration of the successor Agency and auditors, legal counsel and Whet consultants for services to the SuccesrorAgency are listed as payments for enforceable obligations on the Recognized Obligation payment Schedules. The Successor Agencyantitlpxtes to pay such costs from property tax revenues deposged In the Redevelopment Property Tax Trust Fund. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Legal counsel 20,000 Administrabve Allowance Trustee Fees 1,796 Administrapve Allowance Arbitrage Analysis - Adminishadve Allowance - Administrative Allowance TOTAL 21,755 CATEGORY III busts allocable to particular projects are considered part 0 the project costs. Usted below are administrative opens that are allocable to pmjeds and Imt included In the tables above. These Items may Include amountsto he reimbursed by the Successor Agency F,rsuant to the Conperahm Agreement. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Stag - RPTTF Legal counsel - RPTTF Compaq Expenses - RPTTF TOTAL EXHIBIT B SUCCESSOR AGENCY TO THE SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET 18-19B Exhibit B SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period January 1 - June 30, 2019 CATEGORYI The herniated below Include amounts to be reimbursed bythe Suu¢sor Agencyto the Coy of Seal Beach, pursuant to a Cooperative Agreement for Advance and Reimbursementof Admini4ogve, 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. 5112-10, adopted on April 9, X112. Pursuant to the Cooperative Agreement, the Successor Agency reimburses the City for all costs advanced by the Olyfor the admini4mtion and operation of the Successor Agency, Including but not limited to value of Me,, consultants and legal counsel, office space, equipment, supplies, Insurance and other services and fatigues. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Staffing for the Successor Agency City Manager 285 Adminitmative Allowance City Clerk 165 Administrative Allowance Accountant 112 Administrative Allowance Accounting Technician - Accounts Payable 101 Administrative Allowance Accounting Technician - Payroll 95 Administrative Allowance Finance Manager 164 Administrative Allowance Director of Finance 324 Administerye Allowance SMtling. for the Oversight Board City Manager 158 Administradve Allowance City Clerk 165 Adminiahative Allowance Finance Manager 123 Administrative Allowance Director of Finance 216 Administrative Allowance Overhead Cost Services/Facilities 92 Administrative Allowance TOTAL 2,000 Exhibit B SUCCESSOR AGENCY TO THE CITY OF SEAL BEACH REDEVELOPMENT AGENCY ADMINISTRATIVE BUDGET Fiscal Period January 1 - June 30, 2019 CATEGORY II Health & Sarery Cade Section 34177 jk) stares: 'Provide administrative cost estimates, from Its approved adminirt2tive budgel that are to be Paid from property tax revenues deposited in the Redevelopment Property Tax Trust Fund, to the county audkor-controller for each six-month Rscelpedod." Usted below are the administrative tort items that Suaessor Agency mRiclpatesto payfrom propertytex revenues deposlted In the Redevelopment Property Tax Trust Fund These items may include amounts to be relmbursed by the Successor Agency Pursuant to the Cooperative Agreement. Pursuant to Health and Safely Code Section 341771dII11(F), contracts necessary for the adminAstmtion and operation of the Suaezcor Agency are enforceable obligations. Accordingly, amounts to be pald by the Successor Agency to third parry vendors for equipment and supplies necessary, for the administration of the Successor All and auditors, legal counsel and other consultants for services to the Successor Agency are listed as payments for eMorceable, obligations on the Recognized Obligation Payment Schedules. The Successor Agenry anticipates to pay such costs from property tax revenues deposited In the Redevelopment Pmpemy Tax Tmsl Fund. PROPOSED ADMINISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Legal counsel 20,000 Administrative Allowance Trustee Fees 4,277 Administrative Allowance Arbitrage Analysis - Administrative Allowance - Administrative Allowance TOTAL 24,277 CATEGORY III Costs allocable to particular projects are considered part of the project costs. Usled below are atlminlstrative costs that are allocable to projects and not included In the tables above. These Items may Include amounts to be reimbursed by the Suaessor Agency pursuant to the Cooperal Agreement. PROPOSED AMNISTRATIVE FUNDING DESCRIPTION BUDGET SOURCE Stall - RPTTF Legal counsel - RMF Contract Expanses - RPRF TOTAL