HomeMy WebLinkAboutIncrease Budget Appropriations for FY 2011-2012 Huntington B (6)Council/Agency Meeting Held: o�
Deferred/Continued to: l
' LAp rov onditio all Approv d ❑ Denied sty 41ersSigrre-
'ad
Council Meeting Date: June 4, 2012 Department ID Number: FN 12-011
CITY OF HUNTINGTON BEACH
REQUEST FOR SUCCESSOR AGENCY ACTION
SUBMITTED TO: Honorable Successor Agency Members
SUBMITTED BY: Fred A. Wilson, Executive Director
PREPARED BY: Lori Ann Farrell, Director of Finance
SUBJECT: Increase budget appropriations for the Huntington Beach Successor
Agency for Fiscal Year 2011/12 to reflect the dissolution of the
Huntington Beach Redevelopment Agency
Statement of Issue: Authorization is requested to increase appropriations in the Successor
Agency budget in the current fiscal year to ensure that there is sufficient funding to support
both administrative and other enforceable obligation expenses associated with the proper
winding down of the former Redevelopment Agency's projects and activities. On April 2,
2012, the Successor Agency approved an administrative budget for the Successor Agency
which was subsequently approved by the Oversight Board on April 5, 2012. Authorization is
now being requested to increase the Successor Agency's budget for all other enforceable
obligations that need to be paid, including debt service, property tax sharing and other
enforceable obligations, for the period of February 1, 2012 through September 30, 2012.
Financial Impact: These actions will increase budget appropriations in the Successor
Agency's Redevelopment Obligation Retirement Fund (RORF) (350) by $6,444,500.
Successor Agency Recommended Action: Motion to:
A) Authorize the Executive Director to increase the Successor Agency Budget for Fiscal
Year 2011/12 based on the approved Recognized Obligation Payment Schedule for Fund
350; and,
B) Authorize the Executive Director to transfer balance sheet items from the following funds,
as needed, to the new RORF Fund (350): (305) RDA Capital Project Area Fund, (221)
Cooperation Agreement Repayment, (315) Southeast Coastal Project Area Fund, (407) RDA
HB Debt Service Project Area Fund; and (409) Debt Service Southeast Coastal Fund.
Alternative Action(s): Do not authorize the Executive Director to establish the Successor
Agency Budget for Fiscal Year 2011/12 and provide alternative direction.
HB -245- Item 14. - I
REQUEST FOR COUNCIL ACTION
MEETING DATE: 5/21/2012 DEPARTMENT ID NUMBER: FN 12-011
Analysis: As part of the California State Supreme Court's ruling upholding ABx1 26, an
Enforceable Obligation Payment Schedule (EOPS) was approved in January 2012 and
subsequently amended on April 5, 2012, along with the initial Recognized Obligation
Payment Schedule (ROPS) by the Oversight Board of the Successor Agency. The ROPS is
a listing of all legally binding and enforceable agreements or contracts of the former
Redevelopment Agency, including those necessary for continued administration and
operation which are payable within the subsequent six months.
In order for the Successor Agency to fully operate, budget appropriations must be approved
in the following fund:
Redevelopment Obligation Retirement Fund (RORF) (350)
The recommended $6.4 million budget appropriation includes the $250,000 allowed for
administrative costs for personnel and other costs which are necessary for managing the
winding down of redevelopment projects throughout the City. The administrative costs
approved in the ROPS will partially support the personnel costs of the Deputy Director of
Economic Development, two Economic Development Project Managers, and an
Administrative Secretary, as well as, some operating expenses. The remaining funds of
$6.1 million are dedicated to debt service payments and other enforceable obligations of the
former Redevelopment Agency as itemized on the ROPS.
Environmental Status: N/A
Strategic Plan Goal: Improve long-term financial sustainability
Attachments: None
Item 14. - 2 HB -246-