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Record D-4537 · staff_report

Fiscal Year 2013-2015 Special Budget Meeting

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Informational ReportFiled under council matter 12-0351 introduced 2013-03-07
Subject: Fiscal Year 2013-2015 Special Budget Meeting From: City Administrator's Office Recommendation: Receive A Presentation And Hold Discussion On The Mayor's Proposed Budget For Fiscal Year 2013-2015

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OrnCE OF THE CITY CLtRK OAKLAND 13 JUN PM Z' 15 DISTRIBUTION DATE: 6/24/13_ MEMORANDUM CITY OF OAKLAND TO: HONORABLE MAYOR & FROM: Fred Blackwell CITY COUNCIL SUBJECT: Update on Funding for DATE: June 24, 2013 Housing Project Staff Costs City Administrator Date Approval /s/ Deanna J. Santana 6/24/13 ' INFORMATION SUMMARY On Friday, June 21, 2013 staff received good news from the State Department of Finance ("DOF"). After months of continued discussions and documentation provided to DOF in order to justify the Low.and Moderate Income Housing Project staff costs as an allowable cost on the Recognized Obligation Payment Schedule ("ROPS") - the June 21^* letter provides approval for these costs going back to January 1, 2013 through December 31, 2013. This is an estimated total expenditure of $1.7 million over the 12 month period that will cover the cost of 9.75 FTEs that directly support affordable housing projects, which will be fianded through Redevelopment Property Tax Trust Fund ("RPTTF") dollars (former tax increment) rather than the General Purpose Fund or other sources. BACKGROUND The dissolution of redevelopment agencies throughout the state became effective February 1, 2012. Staff has continued to work with the Oakland Oversight Board and the DOF on a number of issues and mandates resulting from the passage of the ABX 26, the dissolution statute, as well as the passage of AB 1484 in June 2012, which amended the dissolution statute. The DOF reviews the City's ROPS (spending plan for enforceable obligations) every six months. The ROPS in, which covers the period January 1, 2013, through June 30, 2013, was presented to the ORSA board in July 2012, approved by the Oakland Oversight Board in August 2012, and submitted to the'DOF prior to the September 1,2012 deadline. Several line items from the ROPS III were objected to by the DOF. As allowed for in AB 1484, City staff participated in a meet and confer session in early November 2012 with DOF staff to challenge most of the DOF objections. As of December 2012, the DOF continued to deny the housing project staff costs