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RPVCCA_IA_SR_2014_03_04_04_FY13-14_IA_Midyear_Financial_ReportCITY OF RANCHO PALOS VERDES MEMORANDUM TO: FROM: DATE: SUBJECT: REVIEWED: HONORABLE CHAIR & COMMISSION MEMBE~ DENNIS McLEAN, DIRECTOR OF FINANCE & Y!J) INFORMATION TECHNOLOGY MARCH 4, 2014 FY13-14 IMPROVEMENT AUTHORITY MIDYEAR FINANCIAL REPORT @) CAROLYNN PETRU, ACTING CHIEF ADMINISTRATIVE OFFICER Project Manager: Kathryn Downs, Deputy Director of Finance & Information Technology (/)fj RECOMMENDATION Receive and file the attached midyear financial report. BACKGROUND On September 4, 1990, the City Council approved a Joint Powers Agreement between the City and Redevelopment Agency (the Agency). The Agreement requires separate accounting of repair and maintenance activities of the improvements constructed (i.e. de- watering wells) within the Abalone Cove and Portuguese Bend landslide project areas. While the improvements were under construction, repair and maintenance expenditures were budgeted and accounted for by both the Agency and the City. Beginning in FY97-98 accounting for the activities of the Authority was separated from the City and Agency. Since that time an operating budget has been adopted annually by the Improvement Authority Commission. The Improvement Authority is separated into two funds -the Abalone Cove Maintenance Fund and the Portuguese Bend Maintenance Fund. In accordance with the Reimbursement and Settlement Agreement (Horan Agreement), the repair and maintenance costs associated with the Abalone Cove landslide improvements are IA 4-1 FY13-14 Improvement Authority Midyear Financial Report March 4, 2014 Page 2 of 2 recorded in the Abalone Cove Maintenance Fund and are paid from the accumulated interest earned on $1,000,000 of County bond proceeds received in 1991. Annual transfers from the City's General fund are required to finance the repair and maintenance expenditures for Portuguese Bend landslide abatement improvements accounted for in the Portuguese Bend Maintenance Fund. DISCUSSION Fund Summary Portuguese Bend 273,422 820 70,000 119,100 225,142 Abalone Cow 1,098,813 3,300 20,000 53,300 1,068,813 Portuguese Bend Fund At this time, revenue, expenditures and operating transfers are not expected to materially deviate from the budgeted amounts for FY13-14. The remaining fund balance will be used to finance repair and maintenance activities in future periods. The only funding source for this maintenance fund is an annual General Fund subsidy. Abalone Cove Fund The Abalone Cove Fund FY12-13 budget included an appropriation for GPS monitoring in the amount of $18,635. That appropriation was not spent, and was not carried forward to FY13-14. Staff recommends re-budgeting the appropriation in FY13-14. Doing so will not impact the estimated fund balance at June 30, 2014, as the calculation already including an assumption that the FY12-13 GPS appropriation would be spent. Otherwise, revenue, expenditures and operating transfers are not expected to materially deviate from the budgeted amounts for FY13-14. The remaining fund balance will be used to finance repair and maintenance activities in future periods. As the interest revenue earned on the non-spendable $1,000,000 of County bond proceeds noted above is insufficient to provide for maintenance, the primary funding source is an annual General Fund subsidy. IA 4-2 RESOLUTION NO. IA 2014- A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY AMENDING THE OPERATING BUDGET FOR FISCAL YEAR 2013-2014 WHEREAS, on August 6, 2013, the Commission of the Rancho Palos Verdes Joint Powers Improvement Authority adopted Resolution No. IA 2013-09, adopting the operating budget for FY13-14; WHEREAS, the Commission of the Rancho Palos Verdes Joint Powers Improvement Authority desires to provide for FY12-13 GPS monitoring that was appropriated, but not continued to FY13-14; NOW, THEREFORE, BE IT RESOLVED, THAT THE COMMISSION OF THE RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY DOES HEREBY ADOPT THE FOLLOWING AMENDMENT TO THE FY13-14 OPERATING AND CAPITAL BUDGET. Improvement Authority Abalone Cove 795-3089-431-32-00 Pro Services $18,635 PASSED, APPROVED, and ADOPTED the 4th day of March 2014. 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 2014-was duly and regularly passed and adopted by the said Joint Powers Improvement Authority at regular meeting thereof held on March 4, 2014. AUTHORITY SECRETARY IA 4-3