SR-09-10-2013-3KCity unci) and Successor
City of rt
Santa Monica Agency
City Council and Successor Agency Meeting: September 10, 2013
Agenda Item: 34�
To: Mayor and City Council
Chairperson and Successor Agency
From: Andy Agle, Director of Housing and Economic Development
Gigi Decavalles-Hughes, Director of Finance
Subject: Recognized Obligation Payment Schedule: January 2014 through
June 2014 and Administrative Budgets
Recommended Actions
Staff recommends that the City Council adopt the attached resolution approving the
housing administrative budget for the period of January 2014 through June 2014.
Additionally, staff recommends that the Council, serving as the Santa Monica
Redevelopment Successor Agency (Agency), adopt the attached resolutions approving
the Agency's Draft Recognized Obligation Payment Schedule and administrative budget
for January 2014 through June 2014.
Executive Summary
This report summarizes the obligations of the Agency under AB x1 26 (AB 26) and
AB 1484 to prepare Recognized Obligation Payment Schedules (ROPS) and
corresponding administrative budgets to be implemented in six-month periods.
This report recommends that the Council adopt the attached resolution approving the
affordable housing administrative budget and that the Agency adopt the attached
resolutions approving the draft ROPS and the Agency's administrative budget for
January 2014 through June 2014.
Background
Under AB 1484, the Agency is to prepare a ROPS, which identifies the former
Redevelopment Agency's enforceable obligations and sources of payment of those
obligations every six months. On February 12, 2013, the City Council adopted the
housing administrative budget covering the first six-month period of FY 2013-2014 (July
1 -December 31, 2013) and the Successor Agency adopted the Agency's administrative
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budget and ROPS 13-14A for the first six-month period of FY 2013-2014 (July 1 -
December 31, 2013).
Discussion
Staff has prepared the ROPS 13-14B and corresponding administrative budgets for the
period covering January 1, 2014 to June 30, 2014. Staff recommends that the Council
and Agency adopt the attached resolutions.
Under AB 26, the Agency may receive an administrative cost allowance of up to three
percent of the property tax allocated to the Agency each fiscal year, based upon an
approved administrative budget which justifies the allocation of the administrative cost
allowance. The amounts of property taxes that are allocated to the Agency are based
on an approved ROPS during each six-month period. The administrative cost
allowance is included as an enforceable obligation on the ROPS 13-14B (see
Attachment A, Line Item 30).
The administrative budgets have been prepared so that the administrative cost
allowance and other administrative payments authorized under ROPS 13-14B will
reimburse the Agency for expenses associated with implementing the Agency's duties
under AB 26 and AB 1484.
Under AB 1484, the Agency is required to submit an Oversight Board -approved ROPS
to the Department of Finance (DOF) and Los Angeles County Auditor -Controller (CAC)
for the period ending June 30, 2014 (ROPS 13-14B) by no fewer than 90 days before
the date of the property tax distribution, scheduled for January 2, 2014. In accordance
with AB 1484, the CAC has the opportunity to review each ROPS and object to the
inclusion of items and the proposed funding sources. The CAC review may take place
either prior to submission to the Oversight Board or after subsequent Oversight Board
action.
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Next Steps
In accordance with AB 1484, staff will forward the Agency -approved ROPS 13-14B to
the CAC for review concurrently with the submission to the Oversight Board for
consideration. The Oversight Board has the discretion to approve or deny any portion of
ROPS 13-14B. Copies of ROPS 13-14B, as approved by the Oversight Board, will be
sent to the State Controller's Office and the Department of Finance by no later than
October 1, 2013 and posted on the Agency's website.
Along with the Agency -approved ROPS 13-14B, staff will also submit to the CAC and
the Oversight Board for approval a reconciliation statement that compares approved
funding for items listed on ROPS III (covering payments authorized during January 1 -
June 30, 2013) against actual payments made during the ROPS III period. If actual
costs were less than authorized costs, the CAC will deduct the difference from the
allocations requested by the Successor Agency during the ROPS 13-14B period. In the
event that actual costs were more than projected costs during the ROPS III period, the
CAC will not compensate the Successor Agency or the City for any overpayments
because the Department of Finance has instructed the CAC to deny any
reimbursements for payments made above prior authorized amounts.
On January 2, 2014, the CAC will transfer property taxes into the Agency's
Redevelopment Obligation Retirement Fund (RORF) from which the Agency will pay
enforceable obligations listed on the approved ROPS 13-14B.
Financial Impacts & Budget Actions
There are no budgetary impacts associated with the adoption of the resolutions
approving the draft ROPS 13-14B and administrative budgets, except to the extent that,
should the Prior Period Adjustments Form covering the ROPS III period January 1 -
June 30, 2013 identify unallocated and available prior -period RPTTF funds, the
available balance will offset the total amount of RORF requested by the Successor
Agency during the ROPS 13-14B period. The ROPS 13-14B simply sets forth the
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Agency's existing financial obligations and administrative costs for the period
January 1, 2014 to June 30, 2014.
Prepared by: Tina Rodriguez, Successor Agency Administrator
Approved:
Andy Agle, Director L/
Housing and Economic Development
Director of Finance
Attachments:
Forwarded to Council and
Successor Agency:
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Rod Gould
City Manager
Attachment A: Resolution - ROPS 13-14B (January 2014 — June 2014)
Attachment B: Resolution - Successor Agency Admin Budget (January 2014 —
June 2014)
Attachment C: Resolution - Housing Successor Agency Admin Budget
(January 2014 — June 2014)
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Reference:
Resolution Nos. 10767
(CCS), 15 (SA) & 16 (SA)