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Agenda Item 22.

City Council Meeting

Meeting Date:	11/06/2018
FROM:	Bill Gallardo

Subject:

Budget Adjustments to the Successor Agency to the Brea Redevelopment Agency Operating and Capital Improvement Program Budget for Fiscal Year 2018-19

RECOMMENDATION

City Council, as Successor Agency: Adopt resolution to adjust the FY 2018-19 Successor Agency to the Brea Redevelopment Agency Operating and Capital Improvement Program 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 the 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.

In May 2018, the California Department of Finance (DOF) approved the Successor Agency’s Last and Final Recognized Obligation Payment Schedule (LFROPS). As part of this approval process, the DOF also approved the 2011 A Bonds Proceeds Funding Agreement that provided for the reimbursement to the City of Brea for costs incurred toward the Downtown Parking Structure. The total reimbursement by the Successor Agency during Fiscal Year 2017-18 was $5,273,000; however, bond proceeds of $5,237,000 were budgeted in Fiscal Year 2018-19. The Fiscal Year 2017-18 Budget was adjusted on October 2, 2018 to reflect the receipt of these proceeds. Thus, the de-obligation of this budget is needed for FY 2018-19.

Also, as a condition of obtaining the DOF approved LFROPS, the Successor Agency is required to pay annually to the County of Orange any excess cash that is not pledged toward the future repayment of enforceable obligations. All enforceable obligations are pledged with property tax revenue. In August 2018, there was a payment from the Brea-Olinda Unified School District toward the Agency Loan triggering excess cash to be paid to the County of Orange in the amount of approximately $207,600.

COMMISSION/COMMITTEE RECOMMENDATION

The attached FY 2018-19 budget adjustments were reviewed by the Finance Committee on October 30, 2018, and recommended for City Council approval.

FISCAL IMPACT/SUMMARY

The fiscal impact of Exhibit A to the Successor Agency to the Brea Redevelopment Agency FY 2018-19 budget is a decrease in revenues of $5,237,000 and an increase in expenditures of $207,600.

RESPECTFULLY SUBMITTED:

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

Attachments
Resolution