title
CITY COUNCIL AGENDA ITEM: FOUR-FIFTHS VOTE REQUIREMENT - Approval of a Budget Amendment to Appropriate and Re-Allocate Pre-2011 Bond Proceeds Pursuant to the Master Agreements Between the City and the Successor Agency to the Culver City Redevelopment Agency.
body
Contact Person/Dept.: Jeff Muir/FIN
Phone Number: 310-253-5865
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: Yes [] No []
Commission Action Required: Yes [] No [X] Date:
Commission Name:
Public Notification: (E-Mail) Meetings and Agendas - City Council (07/08/15)
Department Approval: Jeff Muir (07/02/15)
______________________________________________________________________
RECOMMENDATION:
Staff recommends the City Council approve a budget amendment to appropriate and re-allocate pre-2011 bond proceeds pursuant to the Master Agreements between the City and the Successor Agency to the Culver City Redevelopment Agency (Successor Agency).
A budget amendment requires a 4/5ths vote.
BACKGROUND:
At the time the former Culver City Redevelopment Agency (Former CCRA) was dissolved in February 2012, there existed certain unexpended tax-exempt bond proceeds from bond issues prior to 2011. Under the provisions of the Dissolution Law, a successor agency is able to spend pre-2011 bond proceeds once it receives a Finding of Completion from the State Department of Finance (DOF). On December 5, 2013, the Successor Agency received a Finding of Completion from the DOF.
On June 23, 2014, the Successor Agency Board and City Council adopted respective resolutions approving a Master Agreement in order to allow the Successor Agency to transfer $2,772,076 in 1999 tax-exempt bond proceeds and $13,965,558 in 2002 tax-exempt bond proceeds to the City, so that the City might use the bond proceeds for the purposes identified and consistent with the applicable indebtedness obligation covenants and the requirements of California Redevelopment Law. On July 24, 2014, the Oversight Board of the Successor Agency to the Culver City Redevelopment Agency (Oversight Board) adopted a Resolution authorizing the Successor Agency to enter into the Master Agreement. On September 3, 2014, the DOF approved the action of the Oversight Board.
On April 13, 2015, the Successor Agency Board and City Council each adopted respective Resolutions approving a second Master Agreement in order to allow the Successor Agency to transfer $2,310,800 in 1993 tax-exempt bond proceeds to the City, so that the City might use the bond proceeds for the purposes identified and consistent with the applicable indebtedness obligation covenants and the requirements of California Redevelopment Law. On May 14, 2015, the Oversight Board adopted a Resolution authorizing the Successor Agency to enter into this Second Master Agreement. On June 26, 2015, the DOF approved the action of the Oversight Board.
DISCUSSION:
During the Fiscal Year 2014/2015 Mid-Year Budget Review, the City Council approved appropriation of $16,550,000 in 1999 and 2002 bond proceeds. The 1993 bond proceeds have not been appropriated as of yet. Due to further information about the anticipated costs of various projects now being available, including costs for increased public parking as part of the Town Plaza project, adjustments to some of the original project budgets are required. Additionally, the appropriation of the 1999 and 2002 bond proceeds must be adjusted between the two separate funds used to account for these monies. As a result, staff has brought this item to make the necessary new appropriations and re-allocations required to allow for the proper expenditure and tracking of these funds.
FISCAL ANALYSIS:
The following table (which appears on the next page) summarizes the new appropriations and re-allocations required at an account level:
The following table summarizes the revised total project budgets:
It should be noted that a new fund (Fund 484) will be created to account for the 1993 bond proceeds.
A Budget Amendment requires a 4/5ths vote.
ATTACHMENTS:
None
RECOMMENDED MOTION:
That the City Council:
Approve a budget amendment to appropriate and re-allocate pre-2011 bond proceeds consistent with the table included in this staff report.