Item No. 2.
| MEETING DATE: 01/17/2023 |
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| TO: | HONORABLE CHAIR AND DIRECTORS |
| FROM: | JIM SADRO, EXECUTIVE DIRECTOR By: Miranda Cole-Corona, Housing and Economic Dev Manager |
| SUBJECT: | APPROVE A RESOLUTION APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 22-23) FOR THE PERIOD OF JULY 1, 2023, THROUGH JUNE 30, 2024, PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(I) AND 34177(o), AND AUTHORIZE THE EXECUTIVE DIRECTOR TO SUBMIT ROPS 23-24 TO THE ORANGE COUNTYWIDE OVERSIGHT BOARD FOR APPROVAL
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RECOMMENDATION:
That the Successor Agency to the Redevelopment Agency of the City of La Habra:
A. Approve a resolution approving and adopting the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2023, through June 30, 2024, (ROPS 23-34) pursuant to Health and Safety Code Section 34177(I) and 34177(o); authorize the Executive Director to forward the approved ROPS 23-24 to the Orange Countywide Oversight Board for their review and approval with a copy to the California State Department of Finance, Orange County Auditor-Controller, and the County Administrative Office, and upon approval of ROPS 23-24 by the Orange Countywide Oversight Board, for submittal to the California State Department of Finance, California State Controller, Orange County Auditor-Controller and the Council Administrative Office for their approval; and,
B. APPROVE AND ADOPT RESOLUTION NO. ____ ENTITLED: A RESOLUTION OF THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LA HABRA, CALIFORNIA, APPROVING AND ADOPTING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JULY 1, 2023, THROUGH JUNE 30, 2024 (ROPS 23-24) PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(I) AND 34177 (o).
DISCUSSION:
AB X 26 (the "Dissolution Act") was enacted in June 2011 as part of the Fiscal Year 2011-2012 State budget package. Under the Dissolution Act, all redevelopment agencies in the State of California were dissolved as of February 1, 2012. The City of La Habra's City Council assumed the duties of unwinding the affairs of the La Habra Redevelopment Agency as the Successor Agency to the Redevelopment Agency of the City of La Habra by adopting Resolution No. 5508 on January 12, 2012. Also, pursuant to the Dissolution Act, local agency oversight boards dissolved on June 30, 2018, and a County oversight board was established July 1, 2019.
One of the responsibilities of the Successor Agency is to prepare a Recognized Obligation Payment Schedule (ROPS). The ROPS sets forth the nature, amount and source(s) of payment of all "enforceable" obligations of the Redevelopment Agency (as defined by law) to be paid by the Successor Agency after Redevelopment Agency's dissolution. The ROPS covers a time period between July and June of each year. The ROPS is separated into an "A Period" (July to December) and a "B Period" (January to June). In addition, pursuant to Health and Safety Code Section 34177 (m)(1)(A), the law provides that the Successor Agency shall complete the ROPS in the manner provided for by the Department of Finance (DOF). The DOF released the ROPS template on December 1, 2022. All Successor Agencies must submit their ROPS to the DOF by February 1, 2022.
The "enforceable obligations" listed in the ROPS may include: bonds, loans legally required to be repaid pursuant to a payment schedule with mandatory repayment terms, payments required by the federal government, preexisting obligations to the state or obligations imposed by state law, judgments, enforceable agreements or contracts; contracts or agreements necessary for the continued administration or operation of the Redevelopment Agency, including agreements to purchase or rent office space, equipment and supplies; and amounts borrowed from or payments owed to the Low and Moderate Income Housing Fund of the former Redevelopment Agency. The remaining obligations of the Redevelopment Agency are listed in ROPS 22-23 (see Attachment 2).
Upon approval by the Successor Agency, the ROPS will be submitted to the Orange Countywide Oversight Board for its review and approval, with a copy transmitted to the Orange County Administrative Office, the Orange County Auditor-Controller, and the DOF. The document is also posted on the Successor Agency's website. Staff intends to submit the ROPS to the Countywide Oversight Board at their regularly scheduled meeting on Tuesday, January 24, 2023.
One of the responsibilities of the Successor Agency is to prepare a Recognized Obligation Payment Schedule (ROPS). The ROPS sets forth the nature, amount and source(s) of payment of all "enforceable" obligations of the Redevelopment Agency (as defined by law) to be paid by the Successor Agency after Redevelopment Agency's dissolution. The ROPS covers a time period between July and June of each year. The ROPS is separated into an "A Period" (July to December) and a "B Period" (January to June). In addition, pursuant to Health and Safety Code Section 34177 (m)(1)(A), the law provides that the Successor Agency shall complete the ROPS in the manner provided for by the Department of Finance (DOF). The DOF released the ROPS template on December 1, 2022. All Successor Agencies must submit their ROPS to the DOF by February 1, 2022.
The "enforceable obligations" listed in the ROPS may include: bonds, loans legally required to be repaid pursuant to a payment schedule with mandatory repayment terms, payments required by the federal government, preexisting obligations to the state or obligations imposed by state law, judgments, enforceable agreements or contracts; contracts or agreements necessary for the continued administration or operation of the Redevelopment Agency, including agreements to purchase or rent office space, equipment and supplies; and amounts borrowed from or payments owed to the Low and Moderate Income Housing Fund of the former Redevelopment Agency. The remaining obligations of the Redevelopment Agency are listed in ROPS 22-23 (see Attachment 2).
Upon approval by the Successor Agency, the ROPS will be submitted to the Orange Countywide Oversight Board for its review and approval, with a copy transmitted to the Orange County Administrative Office, the Orange County Auditor-Controller, and the DOF. The document is also posted on the Successor Agency's website. Staff intends to submit the ROPS to the Countywide Oversight Board at their regularly scheduled meeting on Tuesday, January 24, 2023.
FISCAL IMPACT/SOURCE OF FUNDING:
Funding received from the ROPS payments is used to cover existing debt obligations of the former Redevelopment Agency as well as the cost of administering Successor Agency activities. The proposed ROPS 23-24 "enforceable obligations" is $835,111.
GENERAL PLAN RELEVANCE/CITY COUNCIL GOALS & OBJECTIVES:
The recommended action achieves the following element of the La Habra General Plan:
ED 9.1 - Balanced Fiscal Practices
The recommended action achieves the following element of the FY2022-23 City of La Habra Goals and Objectives:
Goal 2 - Objective A - Closely monitor revenues, expenditures, and fiscal trends to ensure the City's long-term fiscal stability.
ED 9.1 - Balanced Fiscal Practices
The recommended action achieves the following element of the FY2022-23 City of La Habra Goals and Objectives:
Goal 2 - Objective A - Closely monitor revenues, expenditures, and fiscal trends to ensure the City's long-term fiscal stability.