Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JUNE 15, 2016
Subject/Action
SUBJECT: MEASURE R LOCAL RETURN CAPITAL RESERVE, AND PROPOSITION A AND PROPOSITION C CAPITAL RESERVE
ACTION: ESTABLISH NEW ACCOUNTS AND AMEND EXISTING CAPITAL RESERVE ACCOUNTS FOR CITIES
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 Measure R Local Return funded Capital Reserve Account for the City of Beverly Hills, as described in Attachment A;
B. ESTABLISH Proposition A and Proposition C Local Return funded Capital Reserve Account for the City of Burbank, as described in Attachment A;
C. APPROVE three year extension of Proposition C Local Return Capital Reserve Account for the Cities of Beverly Hills, El Monte, Lynwood and Manhattan Beach, 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 funds. 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
Measure R Local Return Guidelines require that Local Return funds be expended before a five-year lapsing deadline. 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 both Local Return Guidelines, with approval from the Board of Directors, the accounts may be establi...
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