Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
JUNE 20, 2024
Subject
SUBJECT: LOCAL RETURN PROPOSITION A AND MEASURE R CAPITAL RESERVE - PALMDALE AND SOUTH PASADENA
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
CONSIDER:
A. AUTHORIZING the Chief Executive Officer to negotiate and execute all necessary agreements between Los Angeles County Metropolitan Transportation Authority (LACMTA) and the Cities for their Capital Reserve Account as approved; and
B. ESTABLISHING new Local Return funded Capital Reserve Accounts for the Cities of Palmdale (Proposition A), and South Pasadena (Measure R) (Attachment A).
Issue
ISSUE
A local jurisdiction may need additional time to accumulate sufficient funding to implement a project, or to avoid lapsing of funds. Similar to previous years, many cities require a lapsing extension due to the limited spending caused by project delays that occurred during the pandemic.
Background
BACKGROUND
According to the Local Return Guidelines, Board approval is required to extend the deadline for lapsing Local Return funds. Typically, the local jurisdiction requests that funding be dedicated in a Capital Reserve Account. Once approved, a local jurisdiction may be allowed additional years to accumulate and expend its Local Return funds from the date that the funds are made available.
Discussion
DISCUSSION
Staff uses a First-In-First-Out (FIFO) calculation to determine if a city may be in jeopardy of losing their Local Return funds. Proposition A and Proposition C utilize a "three year plus current year" period for a total of four years for the timely use of funds requirement. Measure R and Measure M utilize a five-year period for the timely use of funds requirement.
Considerations
Capital Reserve Accounts are permitted with approval from the Board of Directors. These accounts may be established so that Los Angeles County local jurisdictions may extend the life of their Local Return revenue t...
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