Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JUNE 14, 2017
Subject
SUBJECT: LOCAL RETURN PROPOSITION A AND PROPOSITION C CAPITAL RESERVE
Action
ACTION: ESTABLISH NEW ACCOUNTS AND AMEND EXISTING CAPITAL RESERVE ACCOUNT FOR THE CITIES OF ARCADIA, BELL, DUARTE, SOUTH EL MONTE AND LYNWOOD
Heading
RECOMMENDATION
Title
AUTHORIZE 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 Accounts as approved; and:
A. ESTABLISH Proposition A and Proposition C Local Return funded Capital Reserve Account for the Cities of Bell, Duarte and South El Monte, as described in Attachment A; and
B. APPROVE three four-year extension of Proposition A and Proposition C Local Return Capital Reserve Account for the Cities of Arcadia and Lynwood, as described in Attachment A.
Issue
ISSUE
A local jurisdiction may need additional time to accumulate sufficient funding to implement a project or to avoid lapsing of fund. Board approval is required if there is a need to extend beyond the normal lapsing deadline for Local Return Funds. The local jurisdiction may request 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
Proposition A and Proposition C Local Return Guidelines require that Local Return funds be expended before a four-year lapsing deadline (the year of allocation plus three years). However, Capital Reserve Accounts are permitted under the Local Return Guidelines, with approval from the Board of Directors, the accounts may be established so that Los Angeles County local jurisdictions may extend the life of their Local Return revenue to accommodate longer term financial and planning commitments for specific capital projects.
Some of...
Click here for full text