SR-02-11-2014-3ICity of Successor Agency Report
Santa Monica*
Successor Agency Meeting: February 11, 2014
Agenda Item: 3_
To: Chairperson and Successor Agency
From: Andy Agle, Director of Housing and Economic Development
Gigi Decavalles- Hughes, Director of Finance
Subject: Recognized Obligation Payment Schedule: July 2014 through
December 2014 and Administrative Budgets
Recommended Actions
Staff recommends that the Santa Monica Redevelopment Successor Agency (Agency),
adopt the attached resolutions approving the Agency's Draft Recognized Obligation
Payment Schedule and administrative budget for July 2014 through December 2014.
Executive Summary
This report summarizes the obligations of the Agency under AB x1 26 (AB 26) and
AB 1484 to prepare Recognized Obligation Payment Schedules (ROPS) and
corresponding administrative budgets to be implemented in six -month periods.
This report recommends that the Agency adopt the attached resolutions approving the
draft ROPS and the Agency's administrative budget for July 2014 through December
2014.
Background
Under AB 1484, the Agency is to prepare a BOPS, which identifies the former
Redevelopment Agency's enforceable obligations and sources of payment of those
obligations every six months. The Agency is required to submit an Oversight Board -
approved ROPS to the Department of Finance (DOF) and Los Angeles County
Auditor - Controller (CAC) for the period ending December 31, 2014 (ROPS 14 -15A) by
no fewer than 90 days before the date of the property tax distribution, scheduled for
June 2, 2014. In accordance with AB 1484, the CAC has the opportunity to review each
ROPS and object to the inclusion of items and the proposed funding sources.
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Discussion
Staff has prepared the ROPS 14 -15A and corresponding administrative budget for the
period covering July 1, 2014 to December 31, 2014. Staff recommends that the Agency
adopt the attached resolutions.
The ROPS 14 -15A includes Successor Agency legally binding and enforceable
obligations covering the following categories: 1) bond payments and bond reserves; 2)
indebtedness obligations (including loans, promissory notes, housing agreements and
similar obligations); 3) contracts or agreements necessary for continued administration
or operation of Agency and 4) Agency administrative cost allowance. Under AB 26, the
Agency may receive an administrative cost allowance of up to three percent of the
property tax allocated to the Agency each fiscal year, based upon an approved
administrative budget which justifies the allocation of the administrative cost allowance.
The amounts of property taxes that are allocated to the Agency are based on an
approved ROPS during each six -month period. The administrative cost allowance is
included as an enforceable obligation on the ROPS 14 -15A (see Attachment A, Exhibit
1 Line Item 30).
The administrative budget has been prepared so that the administrative cost allowance
authorized under BOPS 14 -15A will reimburse the Agency for expenses associated with
implementing the Agency's duties under AB 26 and AB 1484.
Next Steps
In accordance with AB 1484, staff will forward the Agency- approved ROPS 14 -15A to
the CAC for review concurrently with the submission to the Oversight Board for
consideration. The CAC review may take place either prior to submission to the
Oversight Board or after subsequent Oversight Board action. The Oversight Board has
the discretion to approve or deny any portion of ROPS 14 -15A. Copies of
ROPS 14 -15A, as approved by the Oversight Board, will be sent to the State
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Controller's Office and the Department of Finance by no later than March 3, 2014 and
posted on the Agency's website. DOF is required to make its determination of the
enforceable obligations on the ROPS no later than forty -five days after the Agency's
submittal of ROPS 14 -15A.
Along with the Agency- approved ROPS 14 -15A, staff will also submit to the CAC and
the Oversight Board for approval a reconciliation statement that compares approved
funding for items listed on ROPS 13 -14A (covering payments authorized during
July 1- December 31, 2013) against actual payments made during the ROPS 13 -14A
period. If actual costs were less than authorized costs, the CAC will deduct the
difference from the allocations requested by the Successor Agency during the ROPS
14 -15A period. In the event that actual costs were more than projected costs during the
ROPS 13 -14A period, the CAC will not compensate the Successor Agency or the City
for any overpayments because the Department of Finance has instructed the CAC to
deny any reimbursements for payments made above prior authorized amounts.
On June 2, 2014, the CAC will transfer property taxes into the Agency's Redevelopment
Obligation Retirement Fund (RORF) from which the Agency will pay enforceable
obligations listed on the approved ROPS 14 -15A.
Financial Impacts & Budget Actions
There are no budgetary impacts associated with the adoption of the resolutions
approving the draft ROPS 14 -15A and administrative budget, except to the extent that,
should the Prior Period Adjustments Form covering the ROPS 13 -14A period
July 1- December 31, 2013 identify unallocated and available prior - period
Redevelopment Property Tax Trust Fund ( RPTTF) funds, the available balance will
offset the total amount of RPTTF requested by the Successor Agency during the ROPS
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14 -15A period. The ROPS 14 -15A simply sets forth the Agency's existing financial
obligations and administrative costs for the period July 1, 2014 to December 31, 2014.
Prepared by: Tina Rodriguez, Successor Agency Administrator
Approved:
Andy Agle, Director _,/
Housing and Economic Development
Director of Finance
Attachments:
Forwarded to
Successor Agency:
Rod Gould
City Manager /Chief Administrative Officer
Attachment A: Resolution - ROPS 14 -15A (July 2014 — December 2014)
Attachment B: Resolution - Successor Agency Admin Budget
(July 2014 - December 2014)
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Reference:
Resolution No. 17 (SA) &
Resolution No. 18. (SA)