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HomeMy WebLinkAboutSuccessor Agency Agenda Item No. SA3~IT~' F ~ ""1 REPORT TO CITY COUNCIL AS SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE TO: HONORABLE MAYOR AND MEMBTRS OF THE CITY COUNCIL FROM: PAT KILROY INTERIM CITY MANAGER DATE: APRIL 10, 2012 SUBJECT: ADOPTION BY THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE OF AN ADMINISTRATIVE BUDGET THROUGH JUNE 30, 2012 PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(J~ Background On June 29, 2011, the State of California enacted Assembly Bill x1 26 and Assembly Bill x1 27, which eliminated redevelopment but also allowed agencies to remain in existence so long as certain voluntary payments were made to the State, However, on December 29, 2011, the California Supreme Court delivered its decision in the California Redevelopment Association v. Matosantos case, finding ABx1 26 largely constitutional and ABx127 unconstitutional. As a result, the Redevelopment Agency of the City of Lake Elsinore was dissolved efifective February 1, 2012. Discussion ~n January 10, 2012, pursuant to Resolution No. 2012-001, the City Council elected to become the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore upon the Agency's dissolution on February 1, 2012. AB x1 2G provides for an administrative allowance to allow a Successor Agency to wind down the former redevelopment agency and administer the Successor Agency and Oversight Board. Pursuant to Health & Safety Code Section 34177~j), the Successor Agency shall prepare an administrative budget and submit it to the Oversight Board for its approval. The proposed administrative budget includes estimated costs through June 30, 2012. AGENDA ITEM NO. SA3 Page 1 of 3 AD{~PTI{~N GF ADINISTRATII~E BUDGET April 10, 2012 Page 2 The Administrative Budget covers staff salaries, attorney and consultant costs, rent, supplies, audit fees, record-keeping costs, etc. The law allows the greater of $250,000 or 5% of the property tax revenues listed in the R(~PS far first year administrative costs, and then 3°/© of property tax revenues for the following fiscal years. Fiscal Impact Adoption of the Administrative Budget continues the process set forth in ABx1 25 to insure that the Successor Agency will be allocated adequate property tax revenues to make required debt service and other obligation payments in addition to recouping its administrative costs. As such, there is no financial impact on the City's general fund. Recommendation 1. Adopt the Administrative Budget dated April 10, 2012 and authorise the Interim City 11~anager, or his designee, to take all necessary actions with respect t~reto on behatf of the Successor Agency. Prepared by: James Ailey Director of Administrative Services Barbara ~.eibold City Attorney ~ Approved by: Pat Kilroy Interim City Manage Attachment: 1. Administrative Budget dated April 10, 2012 Page 2 of 3 a~~~+~~.7~ ~L7~L !!l~~ t r~~ ~ r r a AC3~fINiT`i►fil'E FE~R'~ TC JU#~ X12 ~E~P"T~C~~ J~~3~T i~r ~t~f~ u~xt ~t~st~ $ ~t~~,~5 O~era~ing Casks: ~rcfessiana Ciu~si~e Services 37,3Q Travel ~ ~etings ~,~t~ Training & E~ducati+~n 2,i~ ~u~alis ~,~t Pas#~ & freight 1,~t~D dank fees Other ~c Expenses Tali operating ~~sts 5?,IIt~ Twat J~~r~ini~~rive ~~e~ ~ rage 1 Page 3 of 3