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Home My WebLink About4/3/2012 - STAFF REPORTS - 3.A. OVERSIGHT BOARD FOR THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY BOARD REPORT MEETING DATE: April 3, 2012 NEW BUSINESS TITLE: APPROVAL OF THE SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2011-12. INITIATED: Department of Community & Economic Development RECOMMENDATION: 1. Adopt Resolution No. 004, "A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING THE ADMINISTRATIVE BUDGET FOR THE PERIOD ENDING JUNE 30, 2012." 2. Direct the Clerk/Secretary of the Oversight Board to cause the transmission of the Administrative Budget the Palm Springs County Auditor-Controller, the State Controller's Office, and the State Department of Finance, or alternatively to provide notice to those entities together with the address of the City's website and the posting of the ROPS to the City's website. BACKGROUND AND ANALYSIS: Health & Safety Code Section 341770) requires that each successor agency prepare an administrative budget for each six-month period and submit it to its Oversight Board for approval. Due to the delay in effectiveness of the Code as a result of the Supreme Court's ruling on AB 1X 26, the period for the initial budget is February 1 to June 30, 2012. In carrying out the duties of the successor agency, AB 1X 26 allows the Successor Agency to the former Community Redevelopment Agency of the City of Palm Springs an administrative budget of up to five percent of the property tax allocated to the Successor Agency from the Redevelopment Property Tax Trust Fund (RPTTF) for fiscal year 2011/2012 and up to three percent of property tax funding allocated to the Successor Agency thereafter. The RPTTF is the fund to be established by the County Auditor Controller's Office (Controller) and where they will deposit future tax increment. The Controller is to distribute funds from the RPTTF to the Successor Agency twice annually on January 16 and June 1 to pay enforceable obligations due during the six- month periods (January to June) and (July to December) as identified on the approved Recognized Obligation Payment Schedules. ITEM NO 3.A. Oversight Board Report April 3, 2012— Page 2 Approval of Admin. Budget For the first half of fiscal year 2011-12, no property taxes were deposited into the RPTTF. Therefore, administrative expenses will be funded with pre-existing budgeted funds and not the RPTTF. Based on guidance from the Controller, there is no 5% administrative cap on the initial distribution of tax increment for the first half of the year. Pursuant to Health & Safety Code Section 341770), the administrative budget is to 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 identified; and 3) Proposals for arrangements for administrative and operations services provided by a city, county, city and county, or other entity. The proposed administrative budget is estimated at 4.97% of estimated expenditures for the period from February through June 2012. It is anticipated that some of the actual expenses will be less than the estimates. ITEM NO 3.A. RESOLUTION NO. 004 A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY APPROVING THE ADMINISTRATIVE BUDGET FOR THE PERIOD ENDING JUNE 30, 2012. WHEREAS, in accordance with the provisions of the California Health and Safety Code Section 34173, the City Council of the City of Palm Springs, a public body, corporate and politic, has been designated and has accepted such designation of Successor Agency ("Successor") to the Community Redevelopment Agency of the City of Palm Springs to carry out the purposes of and exercise the powers granted to Successor Agencies in accordance with Assembly Bill X1 26 (ABX1 26), Section 1.85 of Division 24 of the Health and Safety Code; and WHEREAS, pursuant to Section 34177(1)(2)(A), the initial DRAFT 'Recognized Obligation Payment Schedule" ('BOPS') was prepared by the Successor Agency for the enforceable obligations of the former redevelopment agency by March 1, 2012; and WHEREAS, .the initial draft ROPS projected the dates and amounts of scheduled payments for each enforceable obligation for the remainder of the time period during which the redevelopment agency would have been authorized to obligate property tax increment had such a redevelopment agency not been dissolved; and WHEREAS, the initial draft ROPS shall be reviewed and certified, as to its accuracy, by an external auditor designated by the Riverside County Auditor-Controller pursuant to Section 34182; and WHEREAS, the certified ROPS must be submitted to and duly approved by the Oversight Board and submitted to the County Auditor Controller on or before April 15, 2012; and WHEREAS, the Oversight Board, in accordance with the provisions of the California Health and Safety Code Section 37179 (a), has been formed to carry out the purposes and exercise the powers granted to Oversight Boards in accordance with Assembly Bill X1 26 (ABX1 26), Section 1.85 of Division 24 of the Health and Safety Code; and WHEREAS, the Oversight Board is now in receipt of the ROPS, including the Administrative Budget which is contained in the ROPS; and WHEREAS, the ROPS has not yet been certified by the County Auditor-Controller. NOW, THEREFORE, BE IT RESOLVED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY OF THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALM SPRINGS AS FOLLOWS: Resolution No. 004 Page 2 SECTION 1. The City Council of the City of Palm Springs, as the Successor Agency's governing board established and approved the initial DRAFT Recognized Obligation Payment Schedule in the form attached to this Resolution as Exhibit A. The City Council, as Successor Agency, directed the City Manager to cause the transmission of the ROPS to the Riverside County' Auditor-Controller, the State Controller's Office, and the State Department of Finance, or alternatively to provide notice to those entities together with the address of the City's website and the posting of the ROPS to the City's website. SECTION 2. The Successor Agency found and determined that the establishment of the ROPS is not a "project" requiring environmental review under the California Environmental Quality Act (Public Resources Code Section 21000, et seq.) because it pertains to governmental fiscal activities which do not involve any commitment to any specific project which may result in a potentially significant impact on the environment. SECTION 3. The Successor Agency recognized the ROPS, including the Administrative Budget, serves as the budget document for the Successor Agency during the designated operative period and appropriated funds as identified. SECTION 4. The Successor Agency is required to submit the Administrative Budget to the Oversight Board for approval. SECTION 5. The Oversight Board hereby approves the Administrative Budget for the Successor Agency for the period February 1, 2012 to June 30, 2012, a copy of which is attached as Exhibit A to this Resolution. SECTION 6. The Oversight Board directs the Clerk/Secretary to cause the transmission of the Administrative Budget to the Riverside County Auditor-Controller, the State Controller's Office, and the State Department of Finance, or alternatively to provide notice to those entities together with the address of the Board's website and the posting of the Administrative Budget to the Board's website. SECTION 7. The Resolution will become effective three (3) business days after its adoption. PASSED, APPROVED AND ADOPTED BY THE OVERSIGHT BOARD OF THE SUCCESSOR AGENCY TO THE PALM SPRINGS COMMUNITY REDEVELOPMENT AGENCY THIS 3RD DAY OF APRIL, 2012. CHAIRPERSON Resolution No. 004 Page 3 ATTEST: CLERK/SECRETARY CERTIFICATION STATE OF CALIFORNIA ) COUNTY OF RIVERSIDE ) ss. CITY OF PALM SPRINGS ) I, JAMES THOMPSON, Clerk/Secretary, to the Oversight Board of the Successor Agency to the Palm Springs Community Redevelopment Agency, hereby certify that Resolution No. 004 is a full, true and correct copy, and was duly adopted at a special meeting of the Oversight Board on April 3, 2012, by the following vote: AYES: NOES ABSTAIN ABSENT James Thompson, Clerk/Secretary City of Palm Springs, California SUCCESSOR AGENCYADM/N BUDGET Febmar,,une 2012 Annual STAFF COSTS Budget Source Monthly Feb Mar April May June Total 40000 Regular Employees 206,482 ACA 17,207 17.207 17,207 17.207 17,207 17.207 86,034 Fuu -20,648 ACA (1,721) (1,721) (1,721) (1,721) (1,721) (1,721) (8,603) 41600 P.E.R.R.S.Contribution 70,992 ACA 5.916 5,916 5.916 5,916 5,916 5.916 29,580 419M Fringe Benefits 37.976 ACA 3,165 3,165 3,165 3,165 3.165 3,165 15,823 41920 RHS 300 ACA 25 25 25 25 25 25 125 Total Personnel Services 295102 ACA 24,592 24.592 24,592 24.592 24.592 24,592 122,959 Annual OTHER NON-ACA ADM/N COSTS Budget Source Feb Mar April May June Total 49000 Insurance 19.736 ACA 4,934 4,934 9,868 49010 Administrative Charges 292,241 ACA 73,060 73.060 146,121 Materials and Supplies 35,069 ACA 4.054 4,054 4,054 4.054 4.054 20,270 Building Rental 16,000 ACA - - - - 43250 Audit Services 11,000 AGA 3,000 3,124 6,124 43220 General Legal Counsel 57,700 ACA 6.656 6,656 6,656 6,656 6,656 33,280 43220 Redevelopment Special Counsel 14.402 ACA - - 43200 Contractual Send. ACA - Harrell&Company Advisers 20,000 ACA 5.000 5,000 5,000 5,000 20,000 Harrell&Company Advisors 6.657 ACA 6,657 6,657 496M Paying Agent7Truslee Fee ACA - Bank of New York Mellon Trust 13,000 ACA 143 143 439W Property Tax 840000 ACA 4,200 4,200 494.205 103,504 23.034 15,710 88,704 15,710 246,663 Total AdremistaWe Budget Feb-Jun 2012 369,622 Total Recognized Obligations(P.2*P.3) 7,434,716 Percentage of Total 4.97