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Home My Public Portal AboutA2003-02-04LPFA• This Agenda contains a brief genera! description of each item to be considered. Copies of the Staff reports.or other written documentation relating to each item of business referred to on the Agenda are on file in the Office of the City Clerk and are available for public inspection. A person who has a question concerning any of the agenda items may call the. City Manager at (310) 603- 0220, ext. 200. . Procedures for Addressing the Council IN ORDER TO EXPEDITE .CITY COUNCIL BUSINESS, WE ASK THAT ALL PERSONS 1NISHING TO ADDRESS THE ,COUNCIL FILL OUT A FORM PROVIDED AT THE DOOR., AND TO TURN IT IN TO THE CITY CLERK PRIOR TO THE START OF THE MEETING. FAILURE TO FLLL OUT SUCH A FORM W1LL PROHIBIT YOU FROM ADDRESSING THE COUNCIL IN THE ABSENCE OF THE UNANIMOUS .CONSENT OF THE COUNCIL.' ,, AGENDA ITEMS ON FILE FOR CONSIDERATION ~ . AT THE REGULAR MEETING OF __ ~d1 ~~~=~/ THE LYNWOOD PUBLIC FINANCE AUTHORITY TO BE HELD ON FEBRUARY 4, 2003 CITY OF LYNWOO~ 6:00 P.M. CITY CLERKS OFFICE COUNCIL CHAMBERS ~QiV ~ 11330 BULLIS ROAD, LYNWOOD, CA 90262 " ~ 2U~.j . ~~~ t~iL~~t ~~ FERNANDO PEDROZA ~ f~t~ 31415i6 PRESIDENT ~~~~-~~5~-.~,~ - +- '~ RAMON RODRIGUEZ LOUIS BYRD ~~~ VICE PRES (DENT ARTURO REYES MEMBER CHIEF ADMLNISTRATIVE OFFICER FAUSTIN GONZALES SECRETARY ANDREA L. HOOPER MEMBER PAUL H. RICHARDS, II MEMBER FINANCE DIRECTOR ALfRETTA EARNEST OPENING CEREMONIES ~1. CALL.TO ORDER 2. ROLL CALL OF MEMBERS TREASURER IRIS PYGATT Ramon Rodriguez Louis Byrd Arturo Reyes Paul H. Richards, II Fernando Pedroza 3. CERTLFICAI"LON OF AGENDA POSTING BY SECRETARY PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Only) PUBLIC ORAL COMMUIVICATtONS IF AN ITEM IS NOT ON THE AGENDA, THERE SHOULD BE NO SUBSTANTIAL DISGU'SSION OF THE ISSUE BY THE LYNINOOD PUBLIC FINANCE AUTHORITY, BUT IT IS ALL RIGHT FOR THE LYNWOOD PUBLIC FINANCE AUTHORITY MEMBERS TO REFER THE MATTER TO THE STAFF OR SCHEDULE SUBSTANTIVE bISCUSSION FOR A FUTURE MEETING. (.The Ralph M. Brown Act, Government Code Section 54950-54962, Part lll, Paragraph.5:) - • 4. MINUTES OF PREVIOUS MEETING . ~ Regular Meeting, January 7, 2003 5. TREASURER'S QUARTERLY INVESTMENT REPORT Comments: . The purpose of this item is to .have the Lynwood .Public Finance Authority review . the Treasurer's Quarterly Investment Report as required by recently enacted State Statues. Recommendation: The Gity Treasurer respectfully recommends that the 'Lynwood Public Finance Authority receive and file the attached quarterly Investment Report for the quarter ending December 31, 2002. " 6. UPDATE ON GOVERNOR'S PROPOSED BUDGET REDUCTIONS Comments: . . ~ Several reports were recently released by the nonpartisan Legislative Analyst's Office as well as Governor Davis, projecting the State of California's combined deficit in the current and next fiscal year anywhere between $21.5 and $34.5 million, which prompted the Governor to .propose budget reductions for the current year. Botfi -the Assembly and Senate Budget Committees have taken action to reject two ~of the major proposed. cuts in the current year affecting local governments including. the elimination of Vehicle License Fee backfill payments and the transfer of unencumbered Redevelopment Agency housing set-aside. funds. Recommendation.: Staff respectfully requests that the President & Members of the Lynwood Public Finance Authority receive and file this information. ` ADJOURNMENT THE NEXT REGULARLY SCHEDULED MEETING WILL BE HELD QN FEBRUARY 18, ". 2002 AT 6:00 P.M., IN THE COUNCIL CHAMBERS OF THE CITY HALL, 11330 BULLiS . ROAD, CITY OF LYNWOOD, CALIFORNIA: " " .. • . LYNWOOD PUBLIC FINANCE AUTHORITY REGULAR MEETING JANUARY 7, 2D03 - The Public Finance Authority of the City of Lynwood met in a Regular Meeting at 11330 Bullis Road on the above date at 6:42 p.m. ~ ~ ~ , President Pedroza presiding. Members Byrd, Reyes, Richards, Rodriguez, and Pedroza answered the joint roll call for all agencies. Also present were- Chief Administrative `Officer Gonzales, Interim City Attorney Montgomery, Secretary Hooper, and City Treasurer Pygatt Secretary Hooper announced that the agenda had been posted in accordance with the Brown Act. ~~ - ~ ~ ~ PUBLIC ORAL COMMUNICATIONS (Regarding Agenda Items Oni~~) ' . NONE PUBLIC ORALS COMMUNICATIONS NONE Item #4: MINUTES OF PREVIOUS MEETING By general consent, it was moved by Member Reyes. seconded by Member Rodri~~uez and carried to approve the minutes. ~ y Regular Meeting. December 3,.2002 Item #5: STATE OF CALIFORNIA FISCAL UPDATE ~ . On December 18, 2002 Governor Davis announced faces a budget shortfall of $3=1.8 billion by June 2004. ~ This shortfall represents about ~13% of the current years ~~eneral fund budget.' ~ ` -This deficit is attributed to adecline in revenues,an increase iu mandated expenditures, . . doss of~anticipated Federal funds, and one-time solutions that «-ere used to close the current budget no longer being available. State law requires that the Governor submit his proposed bud~,et to the Le~_islature or before January 10. Based upon the latest projected deficit and the Governor's recently - recommended $10.2 billion. in reductions in the current years spending, this proposal will almost certainly propose a series of major reductions and revenue enhancements. By general consent, it ~~-as moved by MemberReves, seconded by Vice President Rodriguez and carried to receive and file this information. Member Richards requested that the Members consider discussion on a Subsequent Need Item, on both City and Agency finances, and discuss the issues of Housing and Redevelopment funds in Closed Session. It was mo~~ed by Member Byrd, seconded by Chairman Pedroza to add the Subsequent - Need Item. City Attorney Montgomery stated~that this could be discussed under pending Threatened Litigation or Involving Personnel Matters. Also suggested adding it as Item ~ i . #, 6 under L.P:F.A. Closed Session and discuss rit jointly with the rest of the Closed ~~ Session items. ~ -.~.o..., __ i -.- _ i . - ~ • ROLL CALL: AYES: MEMBERS BYRD, REYES, RICHARDS, RODRIGUEZ AND " PEDROZA NOES:. NONE ABSTAIN: NONE ABSENT: NONE CLOSED SESSION Interim City Attorney Montgomery stated, with respect to every item of business to be discussed in joint Closed Session Pursuant to Section ~49~6.9: Subsequent Need Item:- ' Item #6: ~ CLOSED SESSION ITEM ` ~ Threat to Housing and L'RA Funds , . It was moved- by Member Reyes, seconded by Vice President Rodriguez and .carried to recess to Closed Session at 9:20 p.m. Council reconvened at 10:28 p.m. Interim City Attorney Montgomery stated Council met on the aforementioned matters and stated on: Subsequent Need Item: Item #6: ~ CLOSED SESSION ITEM Threat to Housing and LRA Funds No Reportable Action ` ADJOURNMENT , Having no further discussion, it ~~~as moved by Member Reyes, seconded by .Member Richards.-.and carried to adjourn the meeting at 10:30 p.m., in Memory of Esteban Sanchez. :Fernando Pedroza, President Andrea L. Hooper, Secretary • DATE: February 4, 2003 : TO: THE HONORABLE PRESIDENT AND MEMBERS OF THE AUTHORITY ,~? FROM: Iris P att, Cit Treasurer ~ Y9 Y ~/1; SUBJECT: TREASURER'S QUARTERLY INVESTMENT REPORT PURPOSE: The purpose of this item is to have the Lynwood Public Finance Authority review the Treasurer's Quarterly Investment Report as required by recently enacted State Statues. BACKGROUND: In response to the crisis caused by the Orange County investment pool, -the State_ Legislature in 1995. enacted SB564 and SB866. These laws were enacted as . 'State Statutes to impose certain mandates regarding investment with public #un'ds. The statutes have imposed the following mandates: 1. Annual adoption of an investment .Policy that incorporates changes mandated by the State. 2. Quarterly Investment .Reports presented to the Legislative Body or Board Members. 3. Restriction on the use of certain investment instruments. The attached Treasurer`s Report have been prepared to provide the following. information: 1. Types of investments (including principal, market value rates, and maturity dates). 2. List of various bank accounts with banking institutions. 3. Statement informing each Agency (City, LRA, LPFA and LII) that is expected to have sufficient liquid funds to meet its pooled expenditure requirements for the next six (6) months. 4. Statement informing the Lynwood Public Finance .Authority. that the investment portfolio conforms with the adopted investment policy. RECOMiAENDATION: The City Treasurer respectfully recommends.. that the Lynwood Public Finance .Authority receive and file the attached quarterly Investment Report for the quarter .ending December 3~ , 2002: � � y N Z y v� r C7 ~ -~i O ~ '0 o C7 D, -~ O ~ ~ ~ ~ ~ ~ = ~ ~ o DD -~ ~~ < m n < ~ ., m a ~. m rn ~ ~ m ~ m m ' `° z n. ; z ~ vo ~ ~ ,~ ~ D Z tD ~ c~i~ ~ `. o ... < m m ~ ~~ n~ ~ Q ~ fD .-. ~ K mom . . o ~ ? 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I ~ W ~ o N o ~ ~''~ O O O _ O O ~ O O O O 0 ~ 0 0 0 O 0 O 0 0 0 0 0 0 N ~ N ~ ~ ~ ~ A ~ ~ O ~ r ~ ~ ~ ~ V O W W co t U .p ,~ ~ CIt N _ V ~ W ~ ~ j O C -i m . m n O c z N '~'1 t/~ c C7 ~ _ m r r? m v ~ D ~ ~ rn ~ Z ~ rn ~ ~ ~ - . < ~, ~ o ~ O c -~ O N ~ ° m z cn C r ~ C ~ rn ~ n ,m --i - ~ m ~ ~ m ~ v ~ ~ o v N ~ ~ o ~- m a ~ n: ~ n oo -v n < -~ ~ ~ ' ~ ~ s ' o ~ ~, ~ ~ -n o ~ m ~ ~ -n .. ` .. .. ~ <_ ~ ~ Q ~ ~ n n ~ ~ n. ~ O ~ cfl .I ~. ~ ~ ~ ~p tQ n ~ ~ < ~ ~ _ C/) o ~ ~ ~ ~ 3 ~ o ~ ~. m ~ ~ ~ , . ~ . t v .. ~ O ~ ~ ~ 1 ~ ~ : o ~ .. ~ o 0 o ° 0 0 o o ~ ~ ~ N ' N ~ ~ cn ~ 0 C m. rn n O C Z -i N C n m m r D rn < y a r ~ c ~ rn m ~ . MEMORANDUM DATE: TQ: FROM: BY: SUBJECT: PURPOSE: February 4, 2003 HONORABLE PRESIDENT AND MEMBERS OF THE LYNWOOD PUBLIC FINANCE AUTHORITY Faustin Gonzales, Chief Administrative Officer Autra C. Adams, Program Development Coordinator 'Update on Governor's Proposed Budget Reductions To .provide the President & Members of the Lynwood Public Finance Authority with an update relative to the Governor's proposed budget reductions. BACKGROUND: Since the November 2002 Statewide Election, several reports have been released by the nonpartisan Legislative Analyst's Office as well as Governor Davis projecting the State of California's combined deficit in the current and next fiscal year anywhere from $21.5 to.$34.5 million, based upon current spending levels without any revenue enhancements.. The Constitution of the State of California mandates that a balanced budget be adopted. As a result of the various projections, in December Governor Davis issued aMid-Year Spending Reduction Proposal for the Legislature's consideration that outlines $10.2 billion in reductions, of which $1.42 billion had a direct potential "hit" on cities. Subsequently, on January 10, 2003 Governor Davis released his proposed FY 03-04 .proposed budget that included additional reductions affecting cities that could be effective immediately. ANALYSIS: During the past two weeks various Assembly and Senate Committees, including budget and local government, have convened to consider the Governor's proposed reductions. The budget committees in both houses took action on two of the proposed reductions that are of utmost importance to local governments and the City of Lynwood: 1) Redevelopment Agencies -The Governor had proposed an immediate transfer of Low and Moderate Income Housing funds that were unencumbered on December 1, 2002, to the State Controller for deposit into the State's General Fund. The committees fully rejected this proposal. • 2) Vehicle License Fee (VLF) Backfill Payments -The Governorhad also proposed the elimination of VLF backfill payments to local governments effective. immediately which could have an impact on Lynwood's general fund of $1.3 million in the current fiscal year and close to $3 million in the upcoming fiscal year. The committees rejected the proposal for any action that would eliminate backfill payments in the current fiscal year. Decisions of the Legislature regarding the VLF backfill payments for next fiscal year will be heavily contingent upon the enactment of Assembly Speaker Wesson's legislation (ABX1 4) that will restore consumer payments of the VLF to the full rate of 2%. f Successful. lobbying efforts have ensued thus far to save cities from immediate significant cuts to local revenues; however, there will undoubtedly be some cuts to cities and redevelopment agencies in order for the State to meet its Constitutional mandate to balance its budget next fiscal year. RECOMMENDATION: Staff respectfully requests that the President & Members of the Lynwood P~ubl~~ic .Finance Authority receive and file this information. -'--~-----~ . 1 ~~ ~~ ~. ~~ ~.