Meeting_Body
FINANCE, BUDGET AND AUDIT COMMITTEE
JUNE 20, 2018
Subject
SUBJECT: PROPOSITION A AND PROPOSITION C LOCAL
RETURN CAPITAL RESERVES
Action
ACTION: APPROVE RECOMMENDATIONS
Heading
RECOMMENDATION
Title
CONSIDER:
A. ESTABLISHING Proposition A and Proposition C Local Return funded Capital Reserve Account(s) for the Cities of Covina, Hidden Hills, La Mirada, Lawndale, San Dimas, Santa Monica, and Signal Hill, as described in Attachment A;
B. APPROVING four year extension of Proposition A and Proposition C Local Return Capital Reserve Account(s) for the Cities of El Monte, Lomita, and Redondo Beach, as described in Attachment A;
C. AUTHORIZING the Chief Executive Officer to negotiate and execute all necessary agreements between the Los Angeles County Metropolitan Transportation Authority (LACMTA) and the Cities in Attachment A for their Capital Reserve Accounts as approved.
Issue
ISSUE
A local jurisdiction that needs additional time to accumulate sufficient funding to implement a project may be at risk of lapsing of funds. To avoid lapsing, a local jurisdiction may request that funding be dedicated in a Capital Reserve Account. Upon Board approval, as required for Local Return Funds, a local jurisdiction may be allowed additional years to accumulate and expend its Local Return funds from the date that the funds are originally made available.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. Capital Reserve 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 the Proposition A and Propositi...
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