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SR-02-10-2015-3HCity of Successor Agency Report Santa Monica' Successor Agency Meeting: February 10, 2015 Agenda Item: 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 through December 2015 Recommended Actions Staff recommends that the Redevelopment Successor Agency, adopt the attached resolutions approving the Agency's Draft Recognized Obligation Payment Schedule and administrative budget for July 2015 through December 2015. Executive Summary The Redevelopment Successor Agency is required to prepare recognized obligation payment schedules and corresponding administrative budgets to be implemented in six -month periods. The ROPS 15 -16A includes Successor Agency enforceable obligations of $26,364,801 and an administrative budget of $507,763 covering July 1, 2015 to December 31, 2015. Background Under AB 1484, the Agency is required to prepare a Recognized Obligation Payment Schedule (ROPS) every six months, which identifies the former Redevelopment Agency's enforceable obligations and sources of payment for those obligations. The Agency is required to submit an approved ROPS to the Department of Finance (DOF) and Los Angeles County Auditor - Controller (CAC) for the period ending December 31, 2015 (ROPS 15 -16A) by no fewer than 90 days before the date of the property tax distribution, scheduled on June 2, 2015. In accordance with AB 1484, the CAC has the opportunity to review ROPS and object to the inclusion of items and the proposed funding sources. 1 Discussion Staff has prepared the ROPS 15 -16A and corresponding administrative budget for the period covering July 1, 2015, to December 31, 2015. The ROPS 15 -16A covering July 1, 2015, to December 31, 2015 includes Successor Agency legally binding and enforceable obligations covering the following categories: 1) bond payments 2) indebtedness obligations (including loans, housing agreements, and similar obligations); 3) contracts or agreements necessary for continued administration or operation of Agency and 4) Agency administrative cost allowance. The Agency has made its final payment in the amount of $28.39 million to the Los Angeles County Auditor- Controller per the terms of the Stipulated Judgment on Case No. 34- 2013 - 80001382. As a result, DOF has issued a Finding of Completion and the Agency may now seek repayments of loans made by the City to the former redevelopment agency prior to the effective date of the State dissolution laws. 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 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 15 -16A (see Attachment A, Exhibit 1 Line Item 30). The $507,763 administrative budget has been prepared so that the administrative cost allowance authorized under ROPS 15 -16A will reimburse the Agency for expenses associated with implementing the Agency's duties under AB 26 and AB 1484. 2 Next Steps In accordance with AB 1484, staff will forward the Agency- approved ROPS 15 -16A 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. Copies of ROPS 15 -16A, as approved by the Oversight Board, will be sent to the State Controller's Office and the Department of Finance by no later than March 3, 2015 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. Along with the Agency- approved ROPS 15 -16A, 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 14 -15A (covering payments authorized during July 1 through December 31, 2014) against actual payments made during the ROPS 14 -15A 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 15 -16A period. In the event that actual costs were more than projected costs during the ROPS 14 -15A 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 previously authorized amounts. On June 2, 2015, 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 15 -16A. 3 Financial Impacts & Budget Actions There are no budgetary impacts associated with the adoption of the resolutions approving the draft ROPS 15 -16A and administrative budget, except to the extent that, should the Prior Period Adjustments Form covering the ROPS 14 -15A period July 1 through December 31, 2014, 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 15 -16A period. The ROPS 15 -16A simply sets forth the Agency's existing financial obligations and administrative costs for the period July 1, 2015 to December 31, 2015. Prepared by: Tina Rodriguez, Successor Agency Administrator Approved: Andy Agle, Director' Housing and Economic Development Approved: Gigi Decavalles- Hughes Director of Finance Attachments: Forwarded to Successor Agency: Elaine M. Polachek Interim City Manager /Interim Chief Administrative Officer Attachment A: Resolution - ROPS 15 -16A (July — December 2015) Attachment B: Resolution - Successor Agency Admin Budget (July 2015 — December 2015) 0 Reference: Resolution No. 22 (SA) 0 Resolution No. 23 (SA)