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HomeMy WebLinkAboutAGENDA REPORT 2015 0915 OB REG ITEM 09B OVERSIGHT BOARD TO SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY of OF THE CITY OF /5--A P5 MEETING ITEM 9.B. ACTION: attaisThataz . . 6,4 -.90/5-- 4.0 a a.or,dt d BY: tf �.— OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK AGENDA REPORT TO: Oversight Board to the Successor Agency -A- FROM: David C. Moe II, Economic Development and Housing Manager Li-J-1 DATE: September 9, 2015 (Meeting of 9/15/15) SUBJECT: Consider Resolution Approving Administrative Budget 15-16B BACKGROUND & DISCUSSION 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 2015-16) ("Administrative Budget 15-16B") to the Oversight Board. However, because the Successor 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 to the State Department of Finance, State Controller, and the County Auditor-Controller. 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. 19 Oversight Board to the Successor Agency September 15, 2015 Page 2 The Oversight Board must take action by resolution and must provide the State Department of Finance, by electronic means, written notice and information about their 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 Successor Agency receives the minimum $250,000 annually for operational expenses as 3% of the property tax allocation is less than $250,000. The Administrative Cost Allowance is subject to reduction if there are insufficient funds to pay the enforceable obligations as listed on the ROPS. All or a portion of the Administrative Cost Allowance amount will be reimbursed to the City pursuant to a Cooperative Agreement for Advance and Reimbursement of Administrative Overhead and Other Expenses, to be entered into by the Successor Agency and the City, after approval by the Oversight Board. RECOMMENDATION (ROLL CALL VOTE) Adopt Resolution No. OB-2015- , approving a proposed administrative budget for the six-month fiscal period from January 1, 2016 through June 30, 2016, and take certain other related actions. Attachment 1 Resolution No. OB-2015- Attachment 2 Administrative Budget 20 ATTACHMENT 1 RESOLUTION NO. OB-2015 - A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, FOR THE REGULAR MEETING OF SEPTEMBER 15, 2015, APPROVING THE ADMINISTRATIVE BUDGET FOR ROPS 15-16B WHEREAS, Section 34179 (e) of the Health and Safety Code requires all actions taken by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark be adopted by resolution; and WHEREAS, pursuant to Health and Safety Code Section 34177(j), the Successor Agency of the Redevelopment Agency of the City of Moorpark (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; and WHEREAS, at the regular meeting of September 15, 2015 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"). (Agenda Item 9.B.) NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE 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 of Agenda Item 9.B. 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. SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. 21 Oversight Board to the Successor Agency September 15, 2015 Page 2 PASSED AND ADOPTED this 15th day of September, 2015. Bruce Hamous, Chairperson ATTEST: Maureen Benson, City Clerk 22 81000-0172\1528279v1 doc 2 ATTACHMENT 2 SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK ADMINSTRATIVE BUDGET (January 1, 2016 through June 30, 2016) BUDGET ITEM AMOUNT DESCRIPTION Salaries and Benefits $ 97,000 Salaries and benefits Operations $ 28,000 Operations TOTAL: $125,000 23 ITEM 9.B. OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK AGENDA REPORT TO: Oversight Board to the Successor Agency FROM: David C. Moe II, Economic Development and Housing Manager DATE: September 9, 2015 (Meeting of 9115/15) SUBJECT: Consider Resolution Approving Administrative Budget 15-16B BACKGROUND & DISCUSSION 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 2015-16) ("Administrative Budget 15-16B") to the Oversight Board. However, because the Successor 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 to the State Department of Finance, State Controller, and the County Auditor-Controller. 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. Oversight Board to the Successor Agency September 15, 2015 Page 2 The Oversight Board must take action by resolution and must provide the State Department of Finance, by electronic means, written notice and information about their 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 Successor Agency receives the minimum $250,000 annually for operational expenses as 3% of the property tax allocation is less than $250,000. The Administrative Cost Allowance is subject to reduction if there are insufficient funds to pay the enforceable obligations as listed on the ROPS. AA--or---a---portion-of--the Adntn-is#aative-_cost Allowance-amount—will—be reimbursed .to-..thy City pursuant-to- a Cooperative-Agreement for--Advance and—Reimbursement of--Administrative-G ad and--Otherr xp -t be--entered into--by-t-he oessar-Agency -after approval--by-the-Oversight-Board: RECOMMENDATION (ROLL CALL VOTE) Adopt Resolution No. OB-2015- , approving a proposed administrative budget for the six-month fiscal period from January 1, 2016 through June 30, 2016, and take certain other related actions. Attachment 1 Resolution No. OB-2015- Attachment 2 Administrative Budget ATTACHMENT 1 RESOLUTION NO. OB-2015 - A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK, CALIFORNIA, FOR THE REGULAR MEETING OF SEPTEMBER 15, 2015, APPROVING THE ADMINISTRATIVE BUDGET FOR ROPS 15-16B WHEREAS, Section 34179 (e) of the Health and Safety Code requires all actions taken by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Moorpark be adopted by resolution; and WHEREAS, pursuant to Health and Safety Code Section 34177(j), the Successor Agency of the Redevelopment Agency of the City of Moorpark (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; and WHEREAS, at the regular meeting of September 15, 2015 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"). (Agenda Item 9.B.) NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK DOES HEREBY RESOLVE 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 of Agenda Item 9.B. 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 members 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. SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. Resolution No. OB-2015- Page 2 SECTION 5. The City Clerk shall certify to the adoption of this resolution and shall cause a certified resolution to be filed in the book of original resolutions. PASSED AND ADOPTED this 15th day of September, 2015. Bruce Hamous, Chairperson ATTEST: Maureen Benson, City Clerk ATTACHMENT 2 SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF MOORPARK ADMINSTRATIVE BUDGET (January 1, 2016 through June 30, 2016) BUDGET ITEM AMOUNT DESCRIPTION Salaries and Benefits $ 97,000 Salaries and benefits Operations $ 28,000 Operations TOTAL: $125,000 All items are expected to be paid out of the Successor Agency's Administrative Costs Allowance.