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