HomeMy WebLinkAboutItem 11a - Recognized Obligation Payment Schedule (ROPS)
DATE: December 15, 2020
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, Senior Management Analyst
SUBJECT: SUCCESSOR AGENCY RESOLUTION NO. SA-19 APPROVING AND
ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE
(“ROPS”) FOR THE PERIOD OF JULY 1, 2021, THROUGH JUNE 30,
2022, 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 fiscal year. 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 to the Arcadia
Redevelopment Agency, adopt Resolution No. SA-19 (Attachment No. 1) approving and
adopting the Recognized Obligation Payment Schedule (“ROPS”) for the period of July
1, 2021, through June 30, 2022.
BACKGROUND
Following the dissolution of Redevelopment in 2012, the City of Arcadia chose to become
the Successor Agency to the Arcadia Redevelopment Agency. Each year, the City must
prepare a ROPS. 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 of the Successor Agency. The
Successor Agency has previously approved ROPS documents that have covered
February 1, 2012, through June 30, 2021. All previous ROPS documents were approved
by the local Oversight Board, and, with slight modifications, by the State Department of
Successor Agency Resolution No. SA-19
Recognized Obligation Payment Schedule (“ROPS”)
December 15, 2020
Page 2 of 3
Finance (“DOF”). Funds received have successfully paid all obligations of the Successor
Agency to date.
Effective July 1, 2018, all local oversight boards in LA County were dissolved and
consolidated into five district oversight boards. The Arcadia Successor Agency is
assigned to the Fifth District Consolidated Oversight Board. Following approval by the
Arcadia Successor Agency, the ROPS is scheduled to be presented to the Fifth District
Consolidated Oversight Board in January 2021.
DISCUSSION
This ROPS covers the period of July 1, 2021, through June 30, 2022, reflecting the 2021-
22 Fiscal Year. It includes the enforceable obligations of the former Redevelopment
Agency bonds, payments for bond trustee services and financial analysis, annual financial
auditing, legal costs, and costs for Successor Agency staffing and administrative
functions. The bond obligations for this ROPS have been updated to reflect the refunding
of two Agency bonds and issuance of the Arcadia Redevelopment Agency Tax Allocation
Refunding Bond Series 2020A in September of 2020. Additionally, several expenses
related to the maintenance and sale of the Agency-owned property at 35 W. Huntington
Drive (Arcadia Self-Storage) have been removed from this ROPS following the sale of
this property in May 2020. The ROPS payment schedule included as Exhibit “A” to
Resolution No. SA-19 indicates these previously approved line items as now retired.
It is anticipated that the Agency may be eligible in the coming Fiscal Year to approve a
Last and Final ROPS now that the sale of the final Agency-owned property has closed,
and the refunding of Agency bonds is complete. Therefore, this ROPS includes an
updated line item amount and description for Agency legal costs to include the
preparation and approval of a Last and Final ROPS. A Last and Final ROPS is permitted
to be approved when the only remaining Agency expenditures are administrative costs
and debt service payments, and all expenditures have been included on prior approved
ROPS. Approval of a Last and Final ROPS would set the Agency’s six-month payment
schedules through the 2026-27 Fiscal Year when the final debt service payment is
scheduled to be made. By approving a Last and Final ROPS, the Agency would no longer
have to prepare and submit a ROPS on an annual basis.
Following Successor Agency approval, the ROPS 21-22 will be presented to the Fifth
District Consolidated Oversight Board at their January 14, 2021, meeting. Once approved
by the Oversight Board, the ROPS will be forwarded to the Department of Finance, the
State Controller, and the LA County Auditor-Controller, and posted on the City’s website,
prior to the February 1, 2021, deadline.
Successor Agency Resolution No. SA-19
Recognized Obligation Payment Schedule (“ROPS”)
December 15, 2020
Page 3 of 3
ENVIRONMENTAL ANALYSIS
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 $232,002 in funding for the period of July 1, 2021, through
June 30, 2022. This amount is substantially less than previous ROPS due to payment
schedule of the newly issued Arcadia Redevelopment Agency Tax Allocation Refunding
Bond Series 2020A, which does not include any principal payments during the 2021-22
Fiscal Year. A copy of this payment schedule is included as Attachment No. 2 to this
report. The Los Angeles County Auditor-Controller will 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.
RECOMMENDATION
It is recommended that the City Council, as the Successor Agency to the Arcadia
Redevelopment Agency, determine that this action does not constitute a project and is
therefore, exempt under, the California Environmental Quality Act (“CEQA”); and adopt
Successor Agency Resolution No. SA-19 approving and adopting the Recognized
Obligation Payment Schedule for the period of July 1, 2021, through June 30, 2022,
pursuant to Health and Safety Code Section 34177(m).
Attachment No. 1: Successor Agency Resolution No. SA-19
Attachment No. 2: Refunding Bond Series 2020A Payment Schedule
7*(+0(
",*4.30?,+ )10.(9043 (>2,39#*/,+:1," # " #,9(01
:1>
9/74:./:3,
! " # $ % & '
>08
$<:50.>",80#-742,>4:9
'C;0
2<00809>
B0.?>4:9
,>0
2<00809>
'0<849,>4:9
,>0
$,C00 0=.<4;>4:9
$<:50.>
<0,
':>,7
#?>=>,9/492
#-742,>4:9
%0>4<0/
" #
$49(1
" # :1,*
$49(1
" # (3:3
$49(1
:3+#4:7*,8 :3+#4:7*,8
:9/
$<:.00/=
%0=0<@0
,7,9.0
#>30<
?9/=%$''/849
%$''
:9/
$<:.00/=
%0=0<@0
,7,9.0
#>30<
?9/=%$''/849
%$''
',B
77:.,>4:9
:9/=
:9/=
==?0/#9:<
01:<0
,96:1"0A
*:<6
:9/=4==?0/
>:1?9/9:9
3:?=492
;<:50.>=
09><,7 *
',B
77:.,>4:9
:9/=
:9/=
==?0/#9:<
01:<0
,96:1"0A
*:<6
:9/=4==?0/
>:1?9/9:9
3:?=492
;<:50.>=
09><,7 *
&?..0==:<
209.C
8;7:C00=
/849:=>=
4>C
8;7:C00=
$,C<:771:<
&?..0==:<
209.C
08;7:C00=
09><,7
"
02,7:=>= 02,7
>>:<90C 02,7:=>= 09><,7 "
/8494=><,>4@0
#@0<30,/
/849:=>=
4>C:1
<.,/4,
/8494=><,>4@0
&?;;:<>
=0<@4.0=
09><,7 "
:9/'<?=>00
&0<@4.0=
$<:10==4:9,7
&0<@4.0=
,96:1"0A
*:<6
'<?=>00
:9/
4=.7:=?<0
&0<@4.0=
09><,7 "
!,49>09,9.0
1:<&?..0==:<
209.C
$<:;0<>40=
$<:;0<>C
!,49>09,9.0
&
!,49>09,9.0
:9><,.>:<=
&071&>:<,20
?47/492
09><,7 *
49,9.4,7
?/4>492
$<:10==4:9,7
&0<@4.0=
!#&& (*
%'+ !
$
?/4>209.C
:9/=
209.C
49,9.4,7
?/4>
09><,7 "
:9><,.>1:<
:9=?7>492
&0<@4.0=
$<:10==4:9,7
&0<@4.0=
49/0<74>0<
/0 7,8,=
==:.4,>0=
/
49,9.4,7
9,7C=4=1:<
:9>49?492
4=.7:=?<0
%-:9/=
09><,7
"
=.<:A '4>70
&0<@4.0=
$<:;0<>C
4=;:=4>4:9=
=.<:A,9/
'4>70
=.<:A'4>70
,9/<07,>0/
09><,7 *
! " # $ % & '
>08
$<:50.>",80#-742,>4:9
'C;0
2<00809>
B0.?>4:9
,>0
2<00809>
'0<849,>4:9
,>0
$,C00 0=.<4;>4:9
$<:50.>
<0,
':>,7
#?>=>,9/492
#-742,>4:9
%0>4<0/
" #
$49(1
" # :1,*
$49(1
" # (3:3
$49(1
:3+#4:7*,8 :3+#4:7*,8
:9/
$<:.00/=
%0=0<@0
,7,9.0
#>30<
?9/=%$''/849
%$''
:9/
$<:.00/=
%0=0<@0
,7,9.0
#>30<
?9/=%$''/849
%$''
:8;,940= =0<@4.0=1:<
,9/&,70
'<,9=10<:<
4==:7?>4:9:1
>30&071
&>:<,20
?47/492
;<:;0<>C,>
)
?9>492>:9
<
<.,/4,
%0/0@07:;809>
209.C',B
77:.,>4:9
%01?9/492
:9/=&0<40=
%01?9/492
:9/=
==?0/1>0<
$!:<2,9 %01?9/492
:9/&0<40=
?=0/>:<0>4<0
209.C=
,9/
',B
77:.,>4:9
:9/=
09><,7
"
Aug 28, 2020 2:00 pm Prepared by DBC Finance (Finance 8.500 Arcadia RDA:TABPP-REFJP,REFJP) Page 10
DETAILED BOND DEBT SERVICE
Arcadia Successor Agency
2020 Taxable Private Placement Refunding TABs
Bond Component (BOND)
Period Annual
Ending Principal Coupon Interest Debt Service Debt Service
03/01/2021 1,045,000 1.833% 94,120.99 1,139,120.99
09/01/2021 85,601.10 85,601.10 1,224,722.09
03/01/2022 85,601.10 85,601.10
09/01/2022 85,601.10 85,601.10 171,202.20
03/01/2023 85,601.10 85,601.10
09/01/2023 1,580,000 1.833% 85,601.10 1,665,601.10 1,751,202.20
03/01/2024 71,120.40 71,120.40
09/01/2024 2,540,000 1.833% 71,120.40 2,611,120.40 2,682,240.80
03/01/2025 47,841.30 47,841.30
09/01/2025 2,585,000 1.833% 47,841.30 2,632,841.30 2,680,682.60
03/01/2026 24,149.78 24,149.78
09/01/2026 2,635,000 1.833% 24,149.78 2,659,149.78 2,683,299.56
10,385,000 808,349.45 11,193,349.45 11,193,349.45