IA SR 20170801 D - Improvement Authority Budget FY17-18 (2)IMPROVEMENT AUTHORITY
MEETING DATE: 08/01/2017
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action regarding the FY17-18 Improvement Authority
Budget.
RECOMMENDED IMPROVEMENT AUTHORITY ACTION:
(1) Adopt Resolution No. IA 2017-_, A RESOLUTION OF THE RANCHO PALOS
VERDES JOINT POWERS IMPROVEMENT AUTHORITY ADOPTING THE
OPERATING BUDGET FOR FISCAL YEAR 2017-2018.
FISCAL IMPACT: See table below.
Revenues
$4,500
Transfers In
38,000
Spendable Fund
Balance needed
147,000
Subtotal
189,500
Expenditures
(189,500)
Balance
$0
Amount Budgeted: FY17-18 Budget Revenues $4,500
FY17-18 Budget Expenditures $189,500
Additional Appropriation: N/A
Account Number(s): 285-xxx-xxxx-xxxx (IA Portuguese Bend) l;`l
795-xxx-xxxx-xxxx (IA Abalone Cove)
ORIGINATED BY: Allan Kaufman, Senior Administrative Analyst;
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Doug Willmore, Chief Administrative Officer
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution No. IA 2017- (page A-1)
B. FY17-18 Improvement Authority Summary of Funds (page B-1)
BACKGROUND AND DISCUSSION:
The proposed Improvement Authority (IA) budget for FY17-18 was included in the City's
budget document presented to the City Council on June 20, 2017. It has been past
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practice to present the IA budget annually to the City Council as a separate item for
informational purposes only.
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.
At the end of FY16-17, spendable fund balance is estimated to be $162,900 for
Portuguese Bend and $35,433 for Abalone Cove, respectively. The Abalone Cove Fund
is expected to have an estimated spendable fund balance of only $35,433 as the Horan
agreement legally requires the City to set aside $1 million of the fund balance to
maintain landslide abatement improvements constructed by the former Redevelopment
Agency. In FY17-18, expenditures are projected to be $189,500 and revenues are
estimated to be $4,500. To address this negative variance, a General Fund transfer of
$38,000 and use of spendable fund balance of $147,000 will be required. Based on
FY17-18 budgeted revenues and expenditures, Staff is estimating that at the end of
FY17-18, Portuguese Bend will have a spendable fund balance of $49,100 and Abalone
Cove a spendable fund balance of $2,233 (Attachment B.).
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.
Staff requests that the Commission approve the proposed budget of the Improvement
Authority for FY17-18 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 action is available for
the Improvement Authority Commission's consideration:
Adopt the proposed budget with any proposed changes read into the
record.
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RESOLUTION NO. IA 2017-
A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS
IMPROVEMENT AUTHORITY ADOPTING THE OPERATING BUDGET
FOR FISCAL YEAR 2017-2018
WHEREAS, the Commission of the Rancho Palos Verdes Joint Powers
Improvement Authority desires to adopt the following resolution adopting the operating
budget for FY17-18; and
WHEREAS, the Rancho Palos Verdes Joint Powers Improvement Authority
currently has an estimated $198,333 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 FY17-18 OPERATING AND CAPITAL BUDGET.
Section 1: The FY17-18 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 FY17-18 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 $ 114,900
Maintenance - Abalone Cove 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.
PASSED, APPROVED, and ADOPTED the 1 st day of August 2017.
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AUTHORITY CHAIRPERSON
ATTEST:
AUTHORITY SECRETARY
State of California
County of Los Angeles
City of Rancho Palos Verdes
I, EMILY COLBORN, Authority Secretary of the Rancho Palos Verdes Joint Powers
Improvement Authority, hereby certify that the above Resolution No. IA 2017- was duly
and regularly passed and adopted by the said Joint Powers Improvement Authority at
regular meeting thereof held on August 1, 2017.
01203.0007/301841.1
AUTHORITY SECRETARY
Resolution No. IA 2017 -
Page 2 of 2
A-2
FY17-18 IMPROVEMENT AUTHORITY SUMMARY OF FUNDS
Estimated
Fund Balance
Fund 6/30/2017 Revenues Transfers In Expenditures Transfers Out
IMPROV AUTH PORTUGUESE BEND 162,900 1,100 - 114,900 -
IMPROV AUTH ABALONE COVE 1,035,433 3,400 38,000 74,600 -
TOTALS 1,198,333 4,500 38,000 189,500 -
Estimated
Fund Balance
6/30/2018
49,100
1,002,233
1,051,333
95