IA SR 20200707 F - Improvement Authority Budget FY2020-21
IMPROVEMENT AUTHORITY MEETING DATE: 07/07/2020
AGENDA REPORT AGENDA HEADING: Regular Business
AGENDA TITLE:
Consideration and possible action regarding the FY 2020-21 Improvement Authority
Budget.
RECOMMENDED IMPROVEMENT AUTHORITY ACTION:
(1) Adopt Resolution No. IA 2020-__, A RESOLUTION OF THE RANCHO PALOS
VERDES JOINT POWERS IMPROVEMENT AUTHORITY ADOPTING THE
OPERATING BUDGET FOR FISCAL YEAR 2020-2021.
FISCAL IMPACT: See table below.
Revenues $22,600
Transfers In 20,000
Spendable Fund
Balance needed 103,400
Subtotal 146,000
Expenditures (146,000)
Balance $0
Amount Budgeted: FY 2020-21 Budget Revenues $22,600 and
Budget Expenditures $146,000, net of transfers
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: Trang Nguyen, Director of Finance
APPROVED BY: Ara Mihranian, Chief Administrative Officer
ATTACHED SUPPORTING DOCUMENTS:
A. Resolution No. IA 2020-__ (page A-1)
B. FY 2020-21 Improvement Authority Summary of Funds (page B-1)
1
BACKGROUND AND DISCUSSION:
The Improvement Authority (IA) only meets once per month; therefore, it has been past
practice to present the IA budget annually to the City Council as a separate item .
The proposed IA budget is segregated into two 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 2019-20, the spendable fund balance estimates to be $75,200 for the
Portuguese Bend IA Fund and $93,100 for the Abalone Cove IA Fund, respectively. The
Abalone Cove IA Fund is expected to have an estimated spendable fund balance of
$93,100 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 2020-21, total expenditures are projected to be
$146,000 and total revenues including transfers to be $42,600 for both funds. To
address the deficit in the IA funds, a General Fund transfer of $20,000 and the use of
spendable fund balance of $103,400 will be required. Based on FY 2020-21 budgeted
revenues and expenditures, Staff estimates that at the end of FY 2020-21, the
Portuguese Bend IA Fund will have a remaining fund balance of $7,781 and the
Abalone Cove IA Fund will have a remaining fund balance of $1,057,121 (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 the Improvement Authority Commission approve the proposed budget of
the Improvement Authority for FY 2020-21 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 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.
2. Take other action, as deemed appropriate.
2
RESOLUTION NO. IA 2020-__
A RESOLUTION OF THE RANCHO PALOS VERDES JOINT POWERS
IMPROVEMENT AUTHORITY ADOPTING THE OPERATING BUDGET
FOR FISCAL YEAR 2020-2021
WHEREAS, the Commission of the Rancho Palos Verdes Joint Powers
Improvement Authority desires to adopt the following resolution adopting the operating
budget for FY 2020-21; and
WHEREAS, the Rancho Palos Verdes Joint Powers Improvement Authority
currently has an estimated $1,164,902 in available funds as of June 30, 2021.
NOW, THEREFORE, BE IT RESOLVED, THAT THE COMMISSION OF THE
RANCHO PALOS VERDES JOINT POWERS IMPROVEMENT AUTHORITY DOES
HEREBY ADOPT THE FOLLOWING FY 2020-21 OPERATING AND CAPITAL BUDGET.
Section 1: The FY 2020-21 Revenue Budget (inclusive of transfers from the City's
General Fund) is hereby adopted, establishing the following revenue levels:
Interest Earnings - Portuguese Bend $ 2,600
Interest Earnings - Abalone Cove 20,000
Transfer In – Portuguese Bend 20,000
Transfer In – Abalone Cove 0
TOTAL REVENUES $ 42,600
Section 2: An operating budget for FY 2020-21 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 $ 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 responsible for administration and execution of
said Budget.
A-1
01203.0007/301841.1 Resolution No. IA 2020-__
Page 2 of 2
PASSED, APPROVED, and ADOPTED the 7th day of July 2020.
__________________________
_
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 2020-__ was duly
and regularly passed and adopted by the said Joint Powers Improvement Authority at
regular meeting thereof held on July 7, 2020.
__________________________
_
AUTHORITY SECRETARY
A-2
Estimated Estimated
Fund Balance Fund Balance
Fund 6/30/2020 Revenues Transfers In Expenditures Transfers Out 6/30/2021
IMPROV AUTH PORTUGUESE BEND 75,181 2,600 20,000 90,000 - 7,781
IMPROV AUTH ABALONE COVE 1,093,121 20,000 - 56,000 - 1,057,121
TOTALS 1,168,302 22,600 20,000 146,000 - 1,064,902
FY 2020-21 IMPROVEMENT AUTHORITY
SUMMARY OF FUNDS
B-1