IA SR 20160802 F - IA Budget FY16-17IMPROVEMENT AUTHORITY MEETING DATE: 08/02/2016
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action regarding the Fiscal Year 2016-17 Improvement
Authority Budget.
RECOMMENDED IMPROVEMENT AUTHORITY ACTION:
(1) Adopt Resolution No. IA 2016-, A RESOLUTION OF THE RANCHO
PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY
ADOPTING THE OPERATING BUDGET FOR FISCAL YEAR 2016-2017.
FISCAL IMPACT: Proposed budget revenues of $4,500 and total expenditures of
$189,500, requiring a transfer in of $38,000 from the General Fund.
Amount Budgeted: See above
Additional Appropriation: N/A
Account Number(s): 285-3088-xxx-xx-xx (IA Portuguese Bend)
795-3089-xxx-xx-xx (IA Abalone Cove)
ORIGINATED BY: Allan Kaufman, Senior Administrative Analyst al„
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Doug Willmore, Chief Administrative Officer
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution No. IA 2016- (page A-1)
B. FY16-17 Improvement Authority Summary of Funds (page B-1)
BACKGROUND AND DISCUSSION:
The proposed Improvement Authority (IA) budget for FY16-17 was included in the City's
budget document presented to the City Council on June 21, 2016. The proposed IA
budget is segregated into two (2) legally -restricted funds, Abalone Cove and
Portuguese Bend, and provides funding to maintain landslide mitigation resources in
both geographic locations.
In FY16-17, expenditures are projected to exceed revenues by $185,000. To address
this negative variance, a General Fund transfer of $38,000 and use of spendable fund
balance will be required. At the end of FY15-16, spendable fund balance is estimated
to be $279,509 for Portuguese Bend and $34,006 for Abalone Cove, respectively. Since
interest earnings generated from available fund balance is the sole revenue source for
this budget, Staff anticipates maintenance costs will continue to outpace the projected
revenues needed to cover them in future years.
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Staff requests that the Commission approve the proposed budget of the Improvement
Authority for FY16-17 by adopting the attached resolution. If the Commission wishes to
make any changes to the proposed budget, they can be read into the record during the
public meeting.
ALTERNATIVES:
In addition to the Staff's recommendation, the following alternative actions are available
for the Improvement Authority Commission's consideration:
1. Adopt the proposed budget with any proposed changes read into the
record.
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RESOLUTION NO. IA 2016-
A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS
IMPROVEMENT AUTHORITY ADOPTING THE OPERATING BUDGET
FOR FISCAL YEAR 2016-2017
WHEREAS, the Commission of the Rancho Palos Verdes Joint Powers
Improvement Authority desires to adopt the following resolution adopting the operating
budget for FY16-17; and
WHEREAS, the Rancho Palos Verdes Joint Powers Improvement Authority
currently has an estimated $313,515 in available funds.
NOW, THEREFORE, BE IT RESOLVED, THAT THE COMMISSION OF THE
RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY DOES
HEREBY ADOPT THE FOLLOWING FY16-17 OPERATING AND CAPITAL BUDGET.
Section 1: The FY16-17 Revenue Budget (inclusive of transfers from the City's
General Fund) is hereby adopted, establishing the following revenue levels:
Interest Earnings - Portuguese Bend $ 1,100
Interest Earnings - Abalone Cove 3,400
Transfer In — Abalone Cove 38.000
TOTAL REVENUES
$ 42,500
Section 2: An operating budget for FY16-17 is hereby adopted as contained in the
Annual Budget of the Rancho Palos Verdes Joint Powers Improvement Authority attached
hereto and incorporated and referenced as part of this resolution. The following
expenditure levels are hereby established:
Maintenance - Portuguese Bend
Maintenance - Abalone Cove
$ 114,900
74.600
TOTAL OPERATING EXPENDITURES $ 189,500
Section 3: Upon adoption of said Budget, the Authority may revise and/or update
said Budget in part or in its entirety, depending on the Authority's fiscal resources,
circumstances, and needs.
Section 4: The Chief Administrative Officer of the Rancho Palos Verdes Joint
Powers Improvement Authority shall be responsible for administration and execution of
said Budget.
A-1
PASSED, APPROVED, and ADOPTED the 2nd day of August 2016.
AUTHORITY CHAIRPERSON
ATTEST:
AUTHORITY SECRETARY
State of California
County of Los Angeles
City of Rancho Palos Verdes
I, CARLA MORREALE, Authority Secretary of the Rancho Palos Verdes Joint Powers
Improvement Authority, hereby certify that the above Resolution No. IA 2016- was duly
and regularly passed and adopted by the said Joint Powers Improvement Authority at
regular meeting thereof held on August 2, 2016.
01203.0007/301841.1
AUTHORITY SECRETARY
Resolution No. IA 2015 -
Page 2 of 2
A-2
Fund
FY16-17 IMPROVEMENT AUTHORITY SUMMARY OF FUNDS
Estimated Estimated
Fund Balance Fund Balance
6/30/2016 Revenues Transfers In Expenditures Transfers Out 6/30/2017
IMPROV AUTH PORTUGUESE BEND
IMPROV AUTH ABALONE COVE
279,509
1,034,006
1,100
114,900 - 165,709
3,400 38,000 74,600 - 1,000,806
TOTALS 1,313,515 4,500 38,000 189,500 1,166,515