IA SR 20190806 E - IA Budget 19-20IMPROVEMENT AUTHORITY MEETING DATE: 08/06/2019
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA DESCRIPTION:
Consideration and possible action regarding the Fiscal Year 2019-20 Improvement
Authority Budget
RECOMMENDED IMPROVEMENT AUTHORITY ACTION:
(1) Adopt Resolution No. IA 2019-__, A RESOLUTION OF THE RANCHO PALOS
VERDES JOINT POWERS IMPROVEMENT AUTHORITY ADOPTING THE
OPERATING BUDGET FOR FISCAL YEAR 2019-2020
FISCAL IMPACT: See table below:
FY 2019-20 Improvement Authority Annual Budget
Revenues $4,500
Transfers In 105,000
Spendable Fund
Balance needed 36,500
Revenues 146,000
Expenditures (146,000)
Amount Budgeted: FY 2019-20 Budget Revenues $4,500,
excluding transfers in
FY 2019-20 Budget Expenditures $146,000
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 2019-__ (page A-1)
B. FY 2019-20 Improvement Authority Summary of Funds (page B-1)
BACKGROUND AND DISCUSSION:
1
The proposed Improvement Authority (IA) budget for FY 2019-20 was included in the
City’s budget document presented to the City Council on June 18, 2019. 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 FY 2018-19, spendable fund balance is estimated to be $36,500 for
Portuguese Bend and $10,800 for Abalone Cove, respectively. The Abalone Cove Fund
is expected to have an estimated spendable fund balance of $10,800 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 FY 2019-20, expenditures are projected to be $146,000 and revenues are
estimated to be $4,500. To address this negative variance, a General Fund transfer of
$105,000 will be required and the use of $36,500 from the spendable fund balance.
Based on FY 2019-20 budgeted revenues and expenditures, Staff is estimating that at
the end of FY 2019-20, Portuguese Bend will have a spendable fund balance of $2,657
and Abalone Cove a spendable fund balance of $8,242 (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 th e Improvement
Authority for FY19-20 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:
1. Adopt the proposed budget with any proposed changes read into the
record
2
RESOLUTION NO. IA 2019-__
A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS
IMPROVEMENT AUTHORITY ADOPTING THE OPERATING BUDGET
FOR FISCAL YEAR 2019-2020
WHEREAS, the Commission of the Rancho Palos Verdes Joint Powers
Improvement Authority desires to adopt the following resolution adopting the operating
budget for FY 2019-20; and
WHEREAS, the Rancho Palos Verdes Joint Powers Improvement Authority
currently has an estimated $1,047,399 in available funds.
NOW, THEREFORE, BE IT RESOLVED, THAT THE COMMI SSION OF THE
RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY DOES
HEREBY ADOPT THE FOLLOWING FY 2019-20 OPERATING AND CAPITAL BUDGET.
Section 1: The FY 2019-20 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 55,000
Transfer In – Abalone Cove 50,000
TOTAL REVENUES $ 109,500
Section 2: An operating budget for FY 2019-20 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 fol lowing
expenditure levels are hereby established:
Maintenance - Portuguese Bend $ 90,000
Maintenance - Abalone Cove 56,000
TOTAL OPERATING EXPENDITURES $ 146,000
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 responsib le for administration and execution of
said Budget.
A-1
01203.0007/301841.1 Resolution No. IA 2019-__
Page 2 of 2
PASSED, APPROVED, and ADOPTED the 6th day of August 2019.
___________________________
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 2019-__ was duly
and regularly passed and adopted by the said Joint Powers Improvement Authority at
regular meeting thereof held on August 6, 2019.
___________________________
AUTHORITY SECRETARY
A-2
Estimated Estimated
Fund Balance Fund Balance
Fund 6/30/2019 Revenues Transfers In Expenditures Transfers Out 6/30/2020
IMPROV AUTH PORTUGUESE BEND 36,557 1,100 55,000 90,000 - 2,657
IMPROV AUTH ABALONE COVE 1,010,842 3,400 50,000 56,000 - 1,008,242
TOTALS 1,047,399 4,500 105,000 146,000 - 1,010,899
FY 2019-20 IMPROVEMENT AUTHORITY
SUMMARY OF FUNDS
B-1