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.
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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.
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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.
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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)
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Reference:
Resolution No. 22
(SA)
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Resolution No. 23
(SA)