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Home My WebLink AboutFY 2011-2012 Successor Agency Budget Established - OversightAGENDA REPORT Oversight Board of the Successor Agency to the Redevelopment Agency MEETING DATE: April 5, 2012 SUBJECT/ACTION: ESTABLISH AN ADMINISTRATIVE BUDGET FOR THE SUCCESSOR AGENCY FOR FISCAL YEAR 2011112 RECOMMENDED ACTION Approve and establish a Successor Agency Administrative Budget for Fiscal Year 2011/12 totaling $425,000 for the Merged Project Area and $7,000 for the Southeast Coastal Project Area, for a combined total of $432,000. BACKGROUND AND DISCUSSION AB 1 X 26 allows a Successor Agency to allocate up to five percent of property tax funding remitted to the Agency for the administrative expenses associated with winding down the activities of the former Redevelopment Agency. The five percent allocation for the Successor Agency of Huntington Beach is currently estimated at $432,000. This amount represents 50 percent, or six months worth, of the five percent allocation allowed for the period of January 1, 2012 through June 30, 2012, based on a conservative property tax estimate of $17,280,000 for the entire year. The five percent allocation for administrative costs is included in the Enforceable Obligations Payment Schedule (EOPS) and Recognized Obligations Payment Schedule (ROPS) of the Successor Agency under the category entitled "Enforcement of Successor Agency Monitoring and Compliance per AB1X 26." In order for the Successor Agency to operate, budget appropriations must be approved in the following distinct funds, as required by AB 1X 26: Redevelopment Obligation Retirement Fund (RORF) Merged —Capital Projects (350) The Successor Agency's Administrative Budget includes the staffing and operating costs which are necessary for managing the winding down of redevelopment projects in the Merged Project Area. The appropriation of $425,000 will support personnel costs (salaries and benefits) totaling $330,000, for a portion of the Deputy Director of Economic Development, two Economic Development Project Managers, and an Administrative Secretary. The remaining $95,000 will support Operating expenses for general office supplies, contractual services, and other non -personnel costs. Redevelopment Obligation Retirement Fund (RORF) Southeast — Capital Projects (351) This $7,000 budget appropriation includes operating costs which are necessary for managing the winding down of redevelopment projects in the Southeast Coastal Project Area.