HomeMy WebLinkAboutSuccessor Agency - Establish an Administrative Budget for FYCouncil/Agency Meeting Held:
Deferred/Continued to:
/ pproved ❑ Conditionally Approved ❑ Denied City lerk ignatr
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Council Meeting Date: April 2, 2012 1 Department ID Number:
CITY OF HUNTINGTON BEACH
REQUEST FOR SUCCESSOR AGENCY ACTION
SUBMITTED TO: Honorable Successor Agency Members
SUBMITTED BY: Fred A. Wilson, City Manager
PREPARED BY: Lori Ann Farrell, Director of Finance
FN 12-005
SUBJECT: Establish an Administrative Budget for the Successor Agency for
Fiscal Year 2011/12
Statement of Issue: On December 29, 2011, the California State Supreme Court
announced its ruling upholding AB1X 26 dissolving redevelopment agencies statewide.
Based upon the Court's ruling, the Huntington Beach Redevelopment Agency has been
dissolved as of February 1, 2012, consistent with the Court's decision. Successor Agency
authorization is requested to establish an administrative budget for the Successor Agency to
ensure there is sufficient funding to support the administrative costs associated with the
proper winding down of the former redevelopment agency's projects and activities.
Financial Impact: These actions will increase budget appropriations in the following Funds:
Redevelopment Obligation Retirement Fund, Merged - Capital Projects (350) - $418,000
Redevelopment Obligation Retirement Fund, Southeast — Capital Projects (351) - $7,000
AB1X 26 allows Successor Agencies to allocate up to five percent of property tax revenue
received by the Successor Agency to pay for administrative costs. It is anticipated the
Successor Agency will receive approximately $17.0 million in property tax revenue. A five
percent allocation for the period of January 1, 2012 through June 30, 2012, or six months
equals $425,000.
Successor Agency Recommended Action: Motion to:
Authorize the City Manager to establish a Successor Agency Administrative Budget for Fiscal
Year 2011/12 totaling $425,000.
Alternative Action(s):
Do not authorize the City Manager to establish a Successor Agency Administrative Budget
for Fiscal Year 2011/12 and provide alternative direction.
Item 6. - I HB -68-
REQUEST FOR SUCCESSOR AGENCY ACTION
MEETING DATE: 4/2/2012 DEPARTMENT ID NUMBER: FN 12 - 005
Analysis:
As part of the California State Supreme Court's ruling upholding AB1X 26, an Enforceable
Obligation Payment Schedule (EOPS) was approved in January 2012 and subsequently
amended on April 2, 2012. The EOPS is a listing of all legally binding and enforceable
agreements or contracts of the former Redevelopment Agency, including those necessary for
the continued administration and operation of the Successor Agency.
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)
This $418,000 budget appropriation includes operating costs which are necessary for
managing the winding down of redevelopment projects in the Merged Project Area. This
appropriation 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, Operating expenses.
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 Project Area.
Environmental Status: N/A
Strategic Plan Goal: Improve the City's long term fiscal sustainability
Attachment(s): None
xB -69- Item 6. - 2