City of Culver City, California
Agenda Item Report
Meeting Date: 02/13/12 Item Number: JC-1
JOINT CITY COUNCIL AND CULVER CITY HOUSING AUTHORITY AGENDA ITEM:
FOUR-FIFTHS VOTE REQUIREMENT - Adoption of Budget Amendments Related to
the Transfer of Assets to the Housing Authority from the Community Improvement
Fund.
Contact Person/Dept.: Jeff Muir, CFO Phone Number: 310.253.5870
Fiscal Impact: Yes [X] No [] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [X] Attachments: []
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: Agendas and Meetings – City Council and Culver City Housing
Authority (02/09/12)
Department Approval:
Jeff Muir (02/06/12), Finance
Sol Blumenfeld, Community Development
City Attorney Approval:
Carol Schwab (by H. Baker) (02/09/12)
Chief Financial Officer Approval:
Jeff Muir (02/06/12)
City Manager Approval:
John M. Nachbar (02/09/12)
RECOMMENDATION:
Staff recommends the Housing Authority adopt proposed budget amendments for
Fiscal Year 2011/2012; and
Staff recommends the City Council adopt the proposed budget amendment for the
housing related Community Improvement Fund.
A City budget amendment requires a 4/5ths vote
BACKGROUND/DISCUSSION:
On January 9, 2012, the City Council adopted a resolution activating the Culver City
Housing Authority and approved a Cooperation Agreement between the City and
Housing Authority to provide staff services to the Housing Authority. The City
Council also approved a resolution designating the Housing Authority to receive the
transfer of all Housing assets, rights, powers, duties, obligations, liabilities and
functions previously performed by the Culver City Redevelopment Agency. The
Culver City Housing Authority adopted a resolution on January 9, 2012 accepting the
transfer of all Housing assets, rights, powers, duties, obligations, liabilities and
functions previously performed by the Culver City Redevelopment Agency.
On January 23, 2012, the Culver City Housing Authority adopted a budget of
$660,000 to pay for certain administrative costs for the period of February 1, 2012
through June 30, 2012, pursuant to the Cooperation Agreement with the City.
City of Culver City, California
Agenda Item Report
On January 30, 2012, the Culver City Redevelopment Agency and the City of Culver
City entered into two Cooperation Agreements for payment of costs associated with
certain capital improvement and affordable housing projects.
The budget adopted by the Housing Authority on January 23, 2012 only accounted
for staff costs through the end of the year. No appropriations were included for the
continuation of programs through the end of the fiscal year. The total proposed
appropriations for Fiscal Year 2011/2012, including the amount previously adopted
on January 23, 2012, equal $1,219,996. This amount represents the remaining
available budget in the former Redevelopment Agency Housing fund as of January
31, 2012. In order to match appropriations to available cash to pay those
appropriations, the Homeless Rental Assistance Program was eliminated and the
Neighborhood Preservation Program was reduced by $100,000. As a result of the
passing of AB 26, both of these programs were placed on hold and only applications
submitted prior to the Governor signing AB 26 were processed. Despite these
budget reductions, there are sufficient funds to meet current Housing Authority
obligations in those programs.
During the Fiscal Year 2012/2013 budget process, the Housing Authority will have
the opportunity to revisit each program’s budget based on the estimated funds that
are expected to be received by the Housing Authority during the next budget year.
As a matter of process, an additional budget amendment is needed to appropriate
the transfer of assets between the City’s housing related Community Improvement
Fund (Fund 482) and the Housing Authority (Fund 476).
Comments from the City Manager/Executive Director
While the proposed budget appropriates funds for staffing and certain housing
related programs for the remainder of Fiscal Year 2011/2012, the dissolution of the
Culver City Redevelopment Agency and the resulting loss of significant ongoing tax
increment financing for housing programs has necessitated a reassessment of
operations in the Housing Division of the City’s Community Development
Department.
As with other programs and services provided by the City with funding from the (now
dissolved) Culver City Redevelopment Agency, I am currently evaluating the housing
programs provided by the City and will make a recommendation to the City Council
in the near future (and prior to the conclusion of Fiscal Year 2011/2012). I expect
such recommendation will include reductions in the programs consistent with the
reduction in funding available to pursue such programs.
City of Culver City, California
Agenda Item Report
FISCAL ANALYSIS:
As of January 31, 2012, the assets of the housing related Community Improvement
Funds include approximately $1.2 million in cash and $8.5 million in land held for
resale and other loans receivable. Per City Council approval, these assets were
transferred to the Housing Authority as of February 1, 2012. The proposed budget
amendments will give the Housing Authority the budget authority to continue
operations through the end of the current fiscal year. The projected Housing
Authority revenue for Fiscal Year 2012/2013 is unknown at this time. There are
existing obligations from the prior Redevelopment Agency to repay certain amounts
to the Housing Authority from future property taxes. Staff expects to have more
information on how much revenue might be expected in Fiscal Year 2012/2013 in
the coming months.
ATTACHMENTS:
None.
MOTION:
That the Housing Authority:
Approve the following budget amendments appropriating funds for the remainder
of Fiscal Year 2011/2012:
Business
Unit Description Revenues/Assets Expenses/Liabilities
47697000 Housing Dept Staff
-
548,136
47697100 Admin Supplies & Services
-
197,144
47697200 Rental Assistance Program Payments
-
274,057
47697300 Mortgage Assistance Program
-
1,838
47697600 Neighborhood Preservation
-
56,646
47697800 Fair Housing
-
22,280
47698900 Home Security
-
30,800
47699100 Homeless Program
-
89,095
47699900 Transfer In-Other Financing Sources (482)
9,700,000
-
Total FY 2011-12 Budget 9,700,000 1,219,996 City of Culver City, California
Agenda Item Report
AND
That the City Council:
Approve a budget amendment appropriating a $9,700,000 transfer out from the
housing related Community Improvement Fund (48299900.953310) to the Culver
City Housing Authority.
A City budget amendment requires a 4/5ths vote