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HomeMy WebLinkAbout2012-04-24 - AGENDA REPORTS - SCRDA SUCCESSOR AGENCY (2)Agenda Item: 16' CITY OF SANTA CLARITA AGENDA REPORT CONSENT CALENDAR City Manager Approval: Item to be presented by: Armine Chaparyan DATE: April 24, 2012 SUBJECT: SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF SANTA CLARITA AMEND AND ADOPT THE RECOGNIZED ENFORCEABLE OBLIGATION PAYMENT SCHEDULE AND ADOPT AN ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2012-13 DEPARTMENT: Community Development RECOMMENDED ACTION City Council, acting as Successor Agency for the Redevelopment Agency of the City of Santa Clarita, adopt an amended Recognized Obligation Payment schedule for the period of January 1 -June 30, 2012. 2. Adopt the Recognized Obligation Payment Schedule for the period of July 1 -December 31, 2012. 3. Adopt an administrative budget for Fiscal Year 2012-13 to cover the administrative costs associated with staffing the Oversight Board. BACKGROUND As part of the dissolution process for the Redevelopment Agency, the City, acting as Successor Agency for the Redevelopment Agency of the City of Santa Clarita (Successor Agency), must undertake a number of administrative actions on an ongoing basis. The actions presented below are required to be submitted to the Oversight Board for formal approval and provided to the State Department of Finance, -the State Controller's Office, and the County Auditor -Controller. Staff is working to schedule an Oversight Board meeting between April 25 - May 1, pending the appointment of the remainder of the Oversight Board members and the availability of a quorum. L in pri; 919 it,, i9i PI D�W- ED s Recognized Obligation Payment Schedule (ROPS) For each six-month period, the Successor Agency is required to adopt the Recognized Obligation Payment Schedule (ROPS). The ROPS serves as an invoice between the Successor Agency and Los Angeles County (County) and dictates how much former property tax increment will be released by the County to the Successor Agency. Only payments listed on the ROPS may be made by the Successor Agency. On February 28, 2012, the Successor Agency adopted the ROPS for the period of February 1 through June 30, 2012. Since then, the California Department of Finance issued guidance stating the first ROPS must also include payments to be made in the month of January 2012. An amended ROPS is attached to meet the new guidance. Additionally, it is necessary for the Successor Agency to adopt an ROPS covering the period of July 1 through December 31, 2012. Administrative Budget The Successor Agency is allowed an administrative allowance, subject to approval by the Oversight Board, in an amount not less than $250,000 for any fiscal year unless negotiated by the Successor Agency and Oversight Board. The Successor Agency is requesting $526,796 for its administrative budget for Fiscal Year 2012-13 to cover all costs to administer the distribution of the former Redevelopment Agency's assets and to fulfill all other obligations of the former Agency. Staff is aware the amount requested exceeds the statutory minimum. However, these are the actual costs that will be incurred to administer the Successor Agency during Fiscal Year 2012-13. By comparison, the Redevelopment Agency's budget of comparable line -items and charges for Fiscal Year 2011-12 totaled $557,091. The proposed administrative budget includes personnel charges, costs related to the preparation for and hosting of meetings for the Oversight Board (including office supplies, printing, and special supplies), contractual services, and overhead reimbursements to the General Fund (including appraisals, financial advisor, accounting, mail, and technology). A detailed breakdown of the administrative budget is attached. The funds for the proposed administrative budget will be appropriated during the City's annual budget process. If the full amount requested is not approved by the Oversight Board and the Department of Finance, this will be addressed during the City's annual budget process. ALTERNATIVE ACTIONS Other actions as determined by City Council. FISCAL IMPACT Funds to pay for the obligations listed on the ROPS between January 1 through June 30, 2012, are budgeted and available in the City's Redevelopment Obligation Retirement Fund (392). Funds are expected to be released by the County on June 1, 2012, and placed in the City's Redevelopment Obligation Retirement Fund (392) to cover the expenditures listed on the ROPS for the period of July 1 through December 31, 2012, and the proposed Fiscal Year 2012-13 administrative budget. ATTACHMENTS ROPS January 1 - June 30, 2012 ROPS July 1 - December 31, 2012 Fiscal Year 2012-13 Successor Agency Budget 3 on — Oai 1� n M m N N S t0 aD Ci r OJ o b S S l° O O N 8 s H m R N A e 9 0 T O T � n C N 6d C - NO t0 NO � N c1 O � a O N N n A eD N N Cl FL.M r r a a N 1V n 6 6 6 � 4 6 cD 6 6 1 mmm 11 11 ooD VV O� OOf IL N N J 7 D = c o e o 0 0 8. lo U, G N M ° N O O m N N m Z �LL W } N N V O a ro ; - F - m Q O 0 m Q Cm 2 o V m . ro > j v > > > > > > i > m > > > c i v > v > > > m u W m v E E E E E E E U E E E E E E E E E E v v v v z (LNF- F H W �g ° = F� rL- Q E o a E o 0 c o o m N d a t o v 3 E -- H o a- r E o m m t ro o i E`o aro E c� a' a¢ w o w` a in in g a E m _ a ¢ a` U E - - ro m c- m w ro Y > U U U m d o 3 Z 3 Z ro ro ro o o A o A � ° �' m y d A m d- n Z p N H z m m cU U U w U w U U U 2 m ii a U t/l a m U U N U oS mo E S a� g o g w a Z a a a d a o o a a a o - o 2 8 8$ '° ¢¢ a w ¢ ¢ U w ¢ o o ¢¢ a¢ m °' E z a a E E ¢¢ ¢° ¢° in d in d in 3 3 N - a o a? b 1- ro c c E o 'o : o o J J o '" o c 3 3 3 3 3 3 3 ro 'm z a` a` riN U U U U U ¢ . ¢ U U U U U z z z z z z z s s t=t=c7OWN on amm 7 (}\\ \ 19 It ƒ m (`6� 10 / LLI § ? / cn _ § w -- - - /k \\ \ � CL §� k \2 ° �Q §§ k)k \\\\\\\\\\ \� 0 = ) )) , t \ § ;¢ E ] )/ cc o - - ®;§»;;: - ƒ )!``ti \\\\\\\}\\ ) {, 3)fj!)£:37! \2 \� \\\\ \ k) \\ \\ \ ({ \§ )f o )/ $ \f= ) )o 15 ){§;§§§ j \)\\\\) Fiscal Year 2012-13 Successor Agency Budget 5001.001 Regular Employees $ 215,993 5011.001 Health & Welfare $ 26,838 5011.002 Life Insurance $ 454 5011.003 Long -Term Disability Insurance $ 1,382 5011.004 Medicare $ 3,835 5011.005 Worker's Compensation $ 4,507 5011.006 PERS $ 45,744 5011.007 Deferred Compensation $ 2,400 5011.010 Supplemental Health $ 1,908 5011.011 EAP $ 65 5101.003 Office Supplies $ 500 5101.004 Printing $ 500 5161.001 Contractual Services $ 35,000 5161.100 Legal Services $ 35,000 5111.001 Special Supplies $ 2,000 5511.100 Reimbursment to GF $ 150,670 Total Administrative Allowance $ 526,796 �i