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Home My WebLink About15 - CC-16 - Successor Agency Administrative Budget - 2/17/2015SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCYAGENDA REPORT MEETING DATE: February 17, 2015 ITEM NUMBER: CC -16 SUBJECT: SUCCESSOR AGENCY ADMINISTRATIVE BUDGET FOR SIX-MONTH FISCAL PERIOD OF JULY 1, 2015 TO DECEMBER 31, 2015 DATE: February 2, 2015 FROM: FINANCE DEPARTMENT PRESENTATION BY: COLLEEN O'DONOGHUE, CPA, ASSISTANT FINANCE DIRECTOR CONTACT: COLLEEN O'DONOGHUE, ASSISTANT FINANCE DIRECTOR (714) 754-5219 COLLEEN.ODONOGHUE(cDCOSTAMESACA.GOV RECOMMENDED ACTION Adopt Successor Agency Resolution No. 15-_ Approving the Successor Agency's Administrative Budget for the 15-16A Six -Month Fiscal Period of July 1, 2015 to December 31, 2015 Pursuant to Health and Safety Code Section 34177(j) of the Dissolution Law BACKGROUND AND DISCUSSION Parts 1.8 and 1.85 of the California Health and Safety Code, as modified by the Supreme Court's opinion in California Redevelopment Association, et al. v. Ana Matosantos, et al., Case No. S194861 and as amended by Assembly Bill 1484 and other subsequent legislation (together, "Dissolution Law"), in particular Section 341770), require the Successor Agency to the Costa Mesa Redevelopment Agency ("Successor Agency") to prepare a proposed "Administrative Budget" for the period concurrent with the six-month fiscal period of each Recognized Obligation Payment Schedule ("ROPS"). To date the Successor Agency previously prepared and approved and the Oversight Board approved Administrative Budgets through June 30, 2015. Pursuant to the Dissolution Law, each ROPS includes a line item for the Successor Agency's Administrative Budget for the applicable period and requires that for the 15-16A six-month fiscal period of July 1, 2015 to December 31, 2015 shall be approved by the Successor Agency and Oversight Board and submitted to the State Department of Finance ("DOF") as a part of ROPS 15-16A by March 1, 2015. Successor Agency staff has prepared and now submits to the Successor Agency for review and approval the proposed Administrative Budget for the period July 1, 2015 to December 31, 2015. (Attachment 1) Pursuant to Section 34177(j) an Administrative Budget is to include all of the following: (a) estimated amounts of the Successor Agency's administrative costs for the upcoming six-month fiscal period (here, July 1, 2015 to December 31, 2015); (b) the proposed sources of payment for the costs identified in (a); and (c) proposals for arrangements for administrative and operations services provided by the City to the Successor Agency. If approved, the Administrative Budget next will be submitted to the Oversight Board for review and approval. Under Section 34177(k), the Successor Agency would then provide to the County of Orange Auditor -Controller the administrative cost estimates from the approved Administrative Budget that are to be paid from property tax revenues deposited into the Redevelopment Property Tax Trust Fund ("RPTTF") for the 15-16A fiscal period. FISCAL AND LEGAL REVIEW The Finance Department staff has worked with the Successor Agency's special counsel Stradling Yocca Carlson & Rauth in preparation of this Administrative Budget pursuant to the Dissolution Law. CONCLUSION Staff recommends adoption of the attached resolution approving the Successor Agency's Administrative Budget for the 15-16A fiscal period of July 1, 2015 to December 31, 2015. Thomas R. Hatch Colleen O'Donoghue, CPA Chief Executive Officer Assistant Finance Director and Executive Director Attachments: 1. Administrative Budget for the 15-16A six-month fiscal period of July 1, 2015 to December 31, 2015 2. Successor Agency Resolution No. 15 -XX ATTACHMENT 1 Successor Agency Administrative Budget for the 15-16A Six -Month Fiscal Period of July 1, 2015 to December 31, 2015 (attached) SUCCESSOR AGENCY ADMINISTRATIVE BUDGET 07/0112015-1213112015 Personnel Expenditures Department Development Services CEO CEO Finance Finance Finance Finance Position Management Analyst (JR) $ City Clerk (BG) $ Deputy City Clerk (JM) $ Accounting Specialist II (RD) $ Budget Analyst $ Accounting Supervisor (CT) $ Asst Fin Director (CO) $ Annual Wages. Percent to Benefits, etc. * S.A. Admin 126,021.00 25% 185,517.00 25% 94,102.00 5% 97,972.00 5% 120,787.00 15% 150,025.00 20% 206,099.00 25% Total Personnel Expenditures Other Administrative Expenditures for period 07/01/15-12/31/2015 Total Other Expenditures $ 62,864.00 Estimated as of February 2015 Percent to S.A. Admin 100% 100% 100% 100% 100% /r:I,T,10Z.13P $ 31,505.25 $ Annual S.A. Department Activity $ Admin Costs Finance Accounting/Audit Services $ 7,500.00 Development Services Legal $ 50,000.00 Development Services Consulting $ 5,200.00 Admin Services Central Services $ 100.00 Admin Services Postage $ 64.00 Total Other Expenditures $ 62,864.00 Estimated as of February 2015 Percent to S.A. Admin 100% 100% 100% 100% 100% /r:I,T,10Z.13P $ 31,505.25 $ 46,379.25 $ 4,705.10 $ 4,898.60 $ 18,118.05 $ 30,005.00 $ 51,524.75 $ 187,136.00 6 Month Costs 07/01/15- 12/31/2015 $ 3,750.00 $ 25,000.00 $ 2,600.00 $ 50.00 $ 32.00 $ 31,432.00 Current Costs 07/01/15 - 12/31/2015 $ 15,752.63 $ 23,189.63 $ 2,352.55 $ 2,449.30 $ 9,059.03 $ 15,002.50 $ 25,762.38 $ 93,568.00 Total Admin Budget $ 125,000.00 ATTACHMENT 2 Successor Agency Resolution No. 15 -XX (attached) SUCCESSOR AGENCY RESOLUTION NO. 15 -XX A RESOLUTION OF THE SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY APPROVING THE SUCCESSOR AGENCY'S ADMINISTRATIVE BUDGET FOR THE 15-16A SIX-MONTH FISCAL PERIOD OF JULY 1, 2015 TO DECEMBER 31, 2015 PURSUANT TO HEALTH AND SAFETY CODE SECTION 341770) WHEREAS, the former Costa Mesa Redevelopment Agency ("former Agency") was established as a redevelopment agency that was previously organized and existing under the California Community Redevelopment Law, Health and Safety Code Section 33000, et seq., and previously authorized to transact business and exercise powers of a redevelopment agency pursuant to action of the City Council of the City of Costa Mesa ("City"); and WHEREAS, Assembly Bill x1 26 added Parts 1.8 and 1.85 to Division 24 of the California Health & Safety Code, which caused the dissolution of all redevelopment agencies and winding down of the affairs of former agencies, including as such laws were amended by Assembly Bill 1484 and other subsequent legislation (together, the "Dissolution Law"); and WHEREAS, as of February 1, 2012 the former Agency was dissolved pursuant to the Dissolution Law, and as a separate public entity, corporate and politic the Successor Agency to the Costa Mesa Redevelopment Agency ("Successor Agency") administers the enforceable obligations of the former Agency and otherwise unwinds the former Agency's affairs, all subject to the review and approval by a seven -member oversight board ("Oversight Board"); and WHEREAS, pursuant to Section 34179 the Successor Agency's Oversight Board has been formed and its initial meeting occurred on April 19, 2012; and WHEREAS, Section 34179 provides that the Oversight Board has fiduciary responsibilities to holders of enforceable obligations and the taxing entities that benefit from distributions of property tax and other revenues pursuant to Section 34188 of Part 1.85 of the Dissolution Law; and WHEREAS, Section 341770) requires the Successor Agency to prepare a proposed administrative budget covering the 15-16A fiscal period from July 1, 2015 to December 31, 2015 and submit it to the Oversight Board for approval; and WHEREAS, pursuant to Section 341770), the Successor Agency's "Administrative Budget" is to include all of the following: (a) estimated amounts of the Successor Agency's administrative costs for the up -coming six-month fiscal period; (b) the proposed sources of payment for the costs identified in (a); and (c) proposals for arrangements for administrative and operations services provided by the city serving as Successor Agency; and WHEREAS, the Successor Agency's proposed Administrative Budget for the 15-16A six-month fiscal period of July 1, 2015 to December 31, 2015 has been reviewed and by this Resolution the Successor Agency desires to approve such Administrative Budget and authorize submittal thereof to the Oversight Board for its review and approval; and WHEREAS, the Administrative Budget, when and as approved by the Oversight Board, will be provided to the County of Orange Auditor -Controller pursuant to Section 34177(k) so that the Successor Agency's estimated administrative costs in the approved Administrative Budget will be paid from property tax revenues deposited into the Redevelopment Property Tax Trust Fund for the applicable six-month fiscal period; and WHEREAS, once the Oversight Board has reviewed and approved the Successor Agency's Administrative Budget for the 15-16A six-month fiscal period of July 1, 2015 to December 31, 2015, then the Successor Agency staff will cause to be posted this Resolution, including the Administrative Budget, on the Successor Agency website, and will transmit such to the County Auditor -Controller, the State Controller's Office and Department of Finance ("DOF") NOW, THEREFORE, BE IT RESOLVED BY THE SUCCESSOR AGENCY TO THE COSTA MESA REDEVELOPMENT AGENCY: The foregoing recitals are incorporated into this Resolution by this reference, and constitute a material part of this Resolution. Pursuant to the Dissolution Law, the Successor Agency approves the Administrative Budget for the 15-16A six-month fiscal period of July 1, 2015 to December 31, 2015 submitted herewith as Attachment 1 and incorporated by this reference. The Successor Agency authorizes transmittal of the Administrative Budget for the 15-16A six- month fiscal period of July 1, 2015 to December 31, 2015 to the Oversight Board for its review and approval and also directs staff to send the Administrative Budget to the County Auditor -Controller and DOF once reviewed and approved by the Oversight Board. The Assistant Finance Director of the Successor Agency or her authorized designee is directed to post this Resolution on the Successor Agency website pursuant to the Dissolution Law. The Secretary shall certify to the adoption of this Resolution. APPROVED AND ADOPTED this 17th day of February 2015. Stephen M. Mensinger, Chair Successor Agency to the Costa Mesa Redevelopment Agency ATTEST: Brenda Green, Secretary Successor Agency to the Costa Mesa Redevelopment Agency (SEAL) STATE OF CALIFORNIA ) COUNTY OF ORANGE ) ss. CITY OF COSTA MESA ) I, Brenda Green, Secretary of the Successor Agency to the Costa Mesa Redevelopment Agency, hereby certify that the foregoing resolution was duly adopted by the Successor Agency at a regular meeting held on the 17th day of February 2015, and that it was so adopted by the following vote: AYES: COUNCIL MEMBERS: None NOES: COUNCIL MEMBERS: None ABSENT: COUNCIL MEMBERS: None ABSTAIN: COUNCIL MEMBERS: None IN WITNESS WHEREOF, I have hereby set my hand and affixed the seal of the City of Costa Mesa this 17th day of February, 2015. Brenda Green, Secretary Successor Agency to the Costa Mesa Redevelopment Agency (SEAL)