Agenda

Back to Calendar Return

Agenda Item 31.

City Council Meeting

Meeting Date:	11/07/2017
FROM:	Bill Gallardo

Subject:

Budget Adjustments to the Successor Agency to the Brea Redevelopment Agency Operating Program Budget for Fiscal Year 2016-17

RECOMMENDATION

City Council, as Successor Agency: Adopt resolution to adjust the FY 2016-17 Successor Agency to the Brea Redevelopment Agency Operating Budget.

BACKGROUND/DISCUSSION

Budget adjustments are presented to the City Council periodically for review. These adjustments represent the appropriation of items previously approved by the City Council during the current fiscal year, or staff recommended budget adjustments for City Council consideration.

The recommended adjustments to the Successor Agency to Brea Redevelopment Agency Operating Budget are listed in Exhibit A. These adjustments are separated by funding source and the accounts are identified as either revenue or expenditure accounts.

Included in Exhibit A is the transfer of funding from the Community Redevelopment Property Trust Fund (519) for $190,804 to the Redevelopment Permanent Fund (511) due to the increase in rental income collected. This adjustment is to true-up the transfer to match the actual income received. Related to these increased rents is the adjustment to increase the transfer from the Redevelopment Permanent Fund (511) to the Permanent Debt Service Fund (731) of $116,868 to comply with the Recognized Obligation Payment Schedule (ROPS). The Dissolution Act requires agencies to use available resources (i.e. rental income) to pay contractual obligations before using property tax revenues.

Lastly, these budget adjustments record the sale of two properties (340 N. Orange Ave. - former Job Center and the corner lot at 112 N. Braken Ave.) as well as the pre-payment of the Gateway Center lease from the owners of Brea Gateway Center. Total proceeds from these transactions were $8,366,582. These proceeds were sent to the County of Orange and distributed to the various taxing agencies (the County, City of Brea, Public Education entities, etc.).

COMMISSION/COMMITTEE RECOMMENDATION

The attached FY 2016-17 budget adjustments were reviewed by the Finance Committee on October 31, 2017, and recommended for approval.

FISCAL IMPACT/SUMMARY

The fiscal impact of Exhibit A to the Successor Agency to the Brea Redevelopment Agency FY 2016-17 budget is a net increase in revenues and transfers-in of $190,804.

RESPECTFULLY SUBMITTED:

William Gallardo, City Manager
Prepared by: Lee Squire, Financial Services Manager
Concurrence: Cindy Russell, Administrative Services Director

Attachments
Resolution SA 2017-12
Exhibit A