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HomeMy WebLinkAboutItem 4a - ROPS 2015-16B DATE: September 15, 2015 TO: Honorable Mayor and City Council, as the Successor Agency to the Arcadia Redevelopment Agency FROM: Jason Kruckeberg, Assistant City Manager/Development Services Director By: Tim Schwehr, Economic Development Analyst SUBJECT: SUCCESSOR AGENCY RESOLUTION NO. SA-11 APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE PERIOD OF JANUARY 1, 2016, THROUGH JUNE 30, 2016, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(m) Recommendation: Adopt SUMMARY As the Successor Agency to the Arcadia Redevelopment Agency, the City must prepare a Recognized Obligation Payment Schedule (“ROPS”) for each six month period. The ROPS sets forth the debts and payment obligations of the former Arcadia Redevelopment Agency for the specified period. Each ROPS is subject to the approval of the Successor Agency and the Oversight Board before any of the listed obligations can be paid. It is recommended that the City Council, serving as the Successor Agency, adopt ROPS 2015-16 B, for the period of January 1, 2016, through June 30, 2016. BACKGROUND Following the dissolution of Redevelopment in 2012, the City of Arcadia chose to become the Successor Agency to the Arcadia Redevelopment Agency. The Successor Agency is complying with two bills that impact the Redevelopment unwinding process, including the timing of the ROPS. The two bills are AB 1X 26 and AB 1484, which were signed into law in June 2011 and June 2012, respectively. The ROPS is used by the Department of Finance and the Los Angeles County Auditor-Controller to determine how much will be dispersed from the tax increment trust fund to pay the enforceable obligations. The Successor Agency has previously approved ROPS documents that have covered 2012 through the 2015 calendar year, in six month increments. All previous ROPS documents were approved by the Oversight Board, and, with slight Resolution SA-11 adopting the ROPS September 15, 2015 Page 2 of 3 modifications, by the State Department of Finance (“DOF”). Funds received have successfully paid all obligations of the Successor Agency to date. DISCUSSION This ROPS (ROPS 15-16B), covers the period of January 1 – June 30, 2016, reflecting the last six months of Fiscal Year 2015-16. The ROPS includes the enforceable obligations that are part of two outstanding redevelopment bond issues, including principal and interest payments, maintenance costs for Successor Agency properties, legal costs, and payments for bond trustee services. All of these payments would be required if the Redevelopment Agency was still in existence. The ROPS also includes reference to the payment to LA County Housing Authority for assuming the former Redevelopment Agency’s housing assets (authorized under AB 471). This payment was requested in the first six months of this Fiscal Year. It is anticipated that the County will officially take over the assets prior to December 31, 2015, so there is no subsequent request for this funding. Finally, the ROPS includes costs for Successor Agency staffing and administrative costs. All of the above-mentioned obligations are standard items that have been included on all previous ROPS documents. If approved, the ROPS will be presented to the Oversight Board at its September meeting, and forwarded to the Department of Finance, the State Controller, and the LA County Auditor-Controller, before the October 5, 2015, deadline. It will also be posted on the City’s website. CALIFORNIA ENVIRONMENTAL QUALITY ACT (CEQA) The ROPS is exempt from the California Environmental Quality Act under Section 15061(b)(3) because it is considered to be “not a project”. FISCAL IMPACT The proposed ROPS calls for $1,223,564 in funding for the period of January 1 – June 30, 2016. The Los Angeles County Auditor-Controller would forward funds based on this ROPS to pay the Successor Agency’s continuing obligations. If the ROPS is not approved, the General Fund may be the source to pay for staff costs that are included in the ROPS. Resolution SA-11 adopting the ROPS September 15, 2015 Page 3 of 3 RECOMMENDATION It is recommended that the City Council, as the Successor Agency to the Arcadia Redevelopment Agency adopt Successor Agency Resolution No. SA – 11 approving and adopting the Recognized Obligation Payment Schedule (“ROPS”) for the period of January 1, 2016 through June 30, 2016, pursuant to Health and Safety Code Section 34177(m). Attachments: Successor Resolution No. SA-11 Exhibit “A” - Recognized Obligation Payment Schedule 2015-16B