IA SR 20180807 F - IA Budget FY18-19IMPROVEMENT AUTHORITY MEETING DATE: 08/07/2018
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action regarding the FY18-19 Improvement Authority
Budget.
RECOMMENDED IMPROVEMENT AUTHORITY ACTION:
(1) Adopt Resolution No. IA 2018-__, A RESOLUTION OF THE RANCHO PALOS
VERDES JOINT POWERS IMPROVEMENT AUTHORITY ADOPTING THE
OPERATING BUDGET FOR FISCAL YEAR 2018-2019.
FISCAL IMPACT: See table below.
Revenues $4,500
Transfers In 45,000
Spendable Fund
Balance needed 148,200
Subtotal 197,700
Expenditures (197,700)
Balance $0
Amount Budgeted: FY18-19 Budget Revenues $4,500, excluding
transfers in
FY18-19 Budget Expenditures $197,700
Additional Appropriation: N/A
Account Number(s): 285-xxx-xxxx-xxxx (IA Portuguese Bend)
795-xxx-xxxx-xxxx (IA Abalone Cove)
ORIGINATED BY: Christopher Browning, Senior Administrative Analyst
REVIEWED BY: Deborah Cullen, Director of Finance
APPROVED BY: Doug Willmore, Chief Administrative Officer
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution No. IA 2018-__ (page A-1)
B. FY18-19 Improvement Authority Summary of Funds (page B-1)
BACKGROUND AND DISCUSSION:
1
The proposed Improvement Authority (IA) budget for FY18-19 was included in the City’s
budget document presented to the City Council on June 19, 2018. It has been past
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 FY17-18, the spendable fund balance is estimated to be $105,412 for
Portuguese Bend and $51,709 for Abalone Cove, respectively. The Abalone Cove Fund
is expected to have an estimated spendable fund balance of only $51,709 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 FY18-19, expenditures are projected to be $197,700 and revenues are
estimated to be $4,500. To address this negative variance, a General Fund transfer of
$45,000 and use of spendable fund balance of $148,200 will be required. Based on
FY18-19 budgeted revenues and expenditures, Staff is estimating that, at the end of
FY18-19, Portuguese Bend will have a spendable fund balance of $4,512 and Abalone
Cove a spendable fund balance of $4,409 (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 FY18-19 by adopting the attached resolution (Attachment A). 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 Staff’s recommendation, the following alternative action is available for the
Improvement Authority Commission’s consideration:
1. Adopt the proposed budget with any proposed changes read into the
record.
2
RESOLUTION NO. IA 2018-__
A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS
IMPROVEMENT AUTHORITY ADOPTING THE OPERATING BUDGET
FOR FISCAL YEAR 2018-2019
WHEREAS, the Commission of the Rancho Palos Verdes Joint Powers
Improvement Authority desires to adopt the following resolution adopting the operating
budget for FY 18-19; and
WHEREAS, the Rancho Palos Verdes Joint Powers Improvement Authority
currently has an estimated $1,157,121 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 FY18-19 OPERATING AND CAPITAL BUDGET.
Section 1: The FY 18-19 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 – Portuguese Bend 20,000
Transfer In – Abalone Cove 25,000
TOTAL REVENUES $ 49,500
Section 2: An operating budget for FY18-19 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 $ 122,000
Maintenance - Abalone Cove 75,700
TOTAL OPERATING EXPENDITURES $ 197,700
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
01203.0007/301841.1 Resolution No. IA 2018-__
Page 2 of 2
PASSED, APPROVED, and ADOPTED the 7th day of August 2018.
___________________________
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 2018-__ was duly
and regularly passed and adopted by the said Joint Powers Improvement Authority at
regular meeting thereof held on August 7, 2018.
___________________________
AUTHORITY SECRETARY
A-2
Estimated Estimated
Fund Balance Fund Balance
Fund 6/30/2018 Revenues Transfers In Expenditures Transfers Out 6/30/2019
IMPROV AUTH PORTUGUESE BEND 105,412 1,100 20,000 122,000 - 4,512
IMPROV AUTH ABALONE COVE 1,051,709 3,400 25,000 75,700 - 1,004,409
TOTALS 1,157,121 4,500 45,000 197,700 - 1,008,921
FY 18-19 IMPROVEMENT AUTHORITY
SUMMARY OF FUNDS
B-1