Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JUNE 19, 2019
Subject
SUBJECT: LOCAL RETURN PROPOSITION C AND MEASURE R CAPITAL RESERVE
Action
ACTION: APPROVE RECOMMENDATIONS
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 Account as approved; and:
A. ESTABLISH Proposition C Local Return funded Capital Reserve Account for the Cities of Bell, El Monte, and South Gate; and
B. ESTABLISH Measure R Local Return funded Capital Reserve Account for the Cities of El Monte and Glendale.
Issue
ISSUE
Local Jurisdictions may need additional time to accumulate sufficient funding to implement a project or to avoid lapsing of funds.
Background
BACKGROUND
According to the Local Return Guidelines, 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
Findings
Staff has calculated on a First-In-First-Out (FIFO) calculation that some cities may be in jeopardy of losing their Local Return Funds. Proposition C has a "three year plus current year" date for a total of four years for the timely use of funds. Measure R requires a timeline of five years for expenditure of Local Return funds.
Considerations
Local Return Guidelines has a timely-use-of funds requirement with a lapsing deadline. However, Capital Reserve Accounts are permitted with approval from the Board of Directors, the accounts may be established so that Los Angeles County local jurisdiction may extend the life of their Local Return revenue to accommodate longer term financia...
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