HomeMy WebLinkAboutG-2 Staff Report - SA Recognized Obligation Payment ScheduleSuccessor Agency Agenda Report
ROPS 16-17
January 19, 2016
Page 1
SUCCESSOR AGENCY ITEM
G-2
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE SUCCESSOR
AGENCY BOARD
FROM: KURT E. CHRISTIANSEN, ECONOMIC AND COMMUNITY
DEVELOPMENT DIRECTOR
VIA: TROY L. BUTZLAFF, ICMA-CM, CITY MANAGER
DATE: JANUARY 19, 2016
SUBJECT: RECOGNIZED OBLIGATION PAYMENT SCHEDULE – JULY 2016
THROUGH JUNE 2017 (ROPS 16-17)
SUMMARY:
California Health and Safety Code § 34169 requires the Successor Agency of the former
Redevelopment Agency of the City of Azusa (“Agency”) to prepare a “Recognized Obligation
Payment Schedule” (“ROPS”). Previously, each ROPS reflected a six-month interval of
obligations and includes the anticipated source of funding. Beginning with FY 2016-17, a new
ROPS is required to be approved and adopted for every subsequent twelve-month period. This
action requests the Successor Agency Board to adopt Resolution 2016-R3, approving and
adopting the “Recognized Obligation Payment Schedule” (ROPS 16-17) for the period of July 1,
2016 through June 30, 2017 pursuant to AB x1 26 as amended by AB 1484.
RECOMMENDATION:
Staff recommends that the Successor Agency Board approve the following:
1) Resolution 2016-R3, approving and adopting the “Recognized Obligation Payment
Schedule” (ROPS 16-17) for the period of July 1, 2016 through June 30, 2017
pursuant to AB x1 26 as amended by AB 1484.
DISCUSSION:
The Agency is required to adopt a ROPS setting forth the nature and amount of all existing
Agency recognized obligations (as defined in the law). Previously, each ROPS reflected a six-
month interval of obligations and included the anticipated source of funding. A new ROPS is now
required to be approved and adopted for every subsequent twelve-month period.
APPROVED
COUNCIL MEETING
1/19/2016
Successor Agency Agenda Report
ROPS 16-17
January 19, 2016
Page 2
The obligations of the Agency may include the following: 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, settlements or binding arbitration decisions that bind the agency; legally binding and
enforceable agreements or contracts; and contracts or agreements necessary for the continued
administration or operation of the agency, including agreements to purchase or rent office space,
equipment and supplies.
Health and Safety Code § 34177(m) requires the State Department of Finance (“DOF”) to provide
the successor agencies with the ROPS template and instructions for the period of July 1, 2016 to
June 30, 2017.
The following is a summary of the enforceable obligations listed in ROPS 16-17:
1. Bond Debt Service
• 2007 Series B Tax Allocation Bond
• 2014 Series A Subordinate Tax Allocation Refunding Bond
• 2015 Series A Subordinate Tax Allocation Refunding Bond
• 2015 Series A Subordinate Tax Allocation Refunding Bond
• 2003 Certificate of Participation Refunding Bond
2. Administrative Cost Allowance
These include costs for staff, audit services, maintenance of properties and legal
counsel that are required in the dissolution of the Agency to comply with AB x1 26 as
amended by AB1484. The amount of the annual administrative cost allowance is
capped at three percent of the total amount allocated to the Redevelopment Obligation
Retirement Fund or $250,000, whichever is greater.
3. Loan Repayment
The loan from the City to the Successor Agency for the former Enterprise site was
approved by the State Department of Finance as an enforceable obligation. The loan can
now be repaid provided there is a residual balance available from the Redevelopment
Property Tax Trust Fund revenues remitted to the Successor Agency.
Upon the approval of ROPS 16-17 by the Agency, it is presented to the Oversight Board of the
Agency for its approval. Then, ROPS 16-17 is to be submitted to the DOF, State Controller’s
Office and the County of Los Angeles Auditor-Controller by February 1, 2016. It will also be
posted on the City website.
The attached Agency Resolution adopts ROPS 16-17, setting forth the recognized obligations of
the Agency and the amount of payments to be made for each obligation from July 1, 2016 through
June 30, 2017. It also authorizes Staff to amend the ROPS in order to remove line items which
are subsequently disapproved by the Oversight Board and/or DOF.
Successor Agency Agenda Report
ROPS 16-17
January 19, 2016
Page 3
FISCAL IMPACT:
Approval of ROPS 16-17 will facilitate the ability of the Agency to continue payment of the
enforceable obligations of the former Redevelopment Agency for the next twelve-month period.
Failure to approve and submit the ROPS 16-17 to the DOF by the February 1, 2016 deadline, as
required by AB1484, will result in penalties of $10,000 per day to the City.
Prepared by: Reviewed and Approved:
Susan Paragas Kurt Christiansen
Director of Finance Director of Economic and Community Development
Reviewed and Approved:
Troy L. Butzlaff, ICMA-CM
City Manager
Attachment:
1) Resolution 2016-R3 – Successor Agency of the former Redevelopment Agency of
the City of Azusa Adopting a Recognized Obligation Payment Schedule-July 1,
2016 to June 30, 2017 (ROPS 16-17) with Exhibit A
ATTACHMENT 1
RESOLUTION NO. 2016-R3
A RESOLUTION OF THE SUCCESSOR AGENCY OF
THE FORMER REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA APPROVING AND ADOPTING THE
RECOGNIZED OBLIGATION PAYMENT SCHEDULE
FOR THE PERIOD OF JULY 1, 2016 THROUGH JUNE
30, 2017 (ROPS 16-17)PURSUANT TO AB x1 26 AS
AMENDED BY AB 1484
WHEREAS, Health and Safety Code Section 34169(h), enacted by AB x1 26, requires
successor agencies to prepare a Recognized Obligation Payment Schedule (“ROPS”) every
twelve-month period.
WHEREAS, because the Successor Agency of the former Redevelopment Agency of
the City of Azusa (“Agency”) previously adopted a ROPS, Resolution No. 2015-R20, dated
September 21, 2015, is operative only through June 30, 2016, so that the Agency may continue
to meet the Agency’s recognized obligations, and
NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the Agency as
follows:
Section 1. The Recitals set forth above are true and correct and incorporated
herein by reference.
Section 2. The Agency staff is hereby authorized to administratively amend
the ROPS in order to remove line items which are subsequently
disapproved by the Oversight Board, the California State
Department of Finance (“DOF”) and the County of Los Angeles
Auditor-Controller and to format the ROPS to conform with DOF
requirements and to take all necessary and appropriate actions to
prepare and submit the ROPS, provided, however, that neither such
authorization nor such removal shall be deemed to be, nor are they
intended as, an acknowledgement of the validity of AB x1 26 and
AB 1484 or such action by the Oversight Board and/or the DOF.
The Agency reserves all rights of the Agency to challenge the
validity and/or application of any or all provisions of AB x1 26 and
AB 1484 in any administrative or judicial proceeding, without
prejudice to the Agency’s right to list any such removed item on
this or a future ROPS. The Agency reserves the right to pursue
any and all appeals and any available legal or equitable remedy
provided or available by law to obtain the correction of any
erroneous decision regarding the ROPS.
2
Section 3. The Agency staff is authorized to include on the ROPS any items
which were approved on ROPS I, ROPS II, ROPS III, ROPS 13-14A
and ROPS 13-14B, ROPS 14-15A, ROPS 14-15B, ROPS 15-16A,
and ROPS 15-16B but not fully expended.
Section 4. The Agency hereby approves and adopts ROPS 16-17, in
substantially the form attached to this Resolution as Exhibit A, so that
the Agency may continue to meet its recognized obligations, all as
required by Health and Safety Code section 34169, during the time
period from July 1, 2016 through June 30, 2017. The Agency
reserves the right to further amend the ROPS in the future in order to
provide an accurate schedule.
Section 5. The Agency Secretary shall certify to the adoption of this Resolution.
Section 6. This Resolution shall become effective upon its adoption.
PASSED AND ADOPTED at a regular meeting of the Successor Agency of the City of
Azusa on the 19th day of January, 2016 by the following vote:
AYES:
NAYS:
ABSENT:
ABSTAIN:
______________________________
Joseph Romero Rocha
Chairperson
ATTEST:
_______________________________
Jeffrey Lawrence Cornejo, Jr.
Secretary
EXHIBIT A
RECOGNIZED OBLIGATION PAYMENT SCHEDULE 16-17
Successor Agency:AzusaCounty:Los AngelesCurrent Period Requested Funding for Enforceable Obligations (ROPS Detail) 16-17A Total 16-17B Total ROPS 16-17 Total A-$ -$ -$ B- - - C- - - D- - - E2,763,319$ 1,238,431$ 4,001,750$ F2,638,319 1,113,431 3,751,750 G125,000 125,000 250,000 H Current Period Enforceable Obligations (A+E):2,763,319$ 1,238,431$ 4,001,750$ Name Title/s/Signature DateRecognized Obligation Payment Schedule (ROPS 16-17) - SummaryFiled for the July 1, 2016 through June 30, 2017 PeriodEnforceable Obligations Funded with Non-Redevelopment Property Tax Trust Fund (RPTTF) Funding Sources (B+C+D):Non-Administrative Costs Enforceable Obligations Funded with RPTTF Funding (F+G):Bond Proceeds Funding Reserve Balance Funding Other Funding Administrative Costs Certification of Oversight Board Chairman:Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency.EXHIBIT A
AB C DE F G HIJKLMNOPQRSTUVW Bond Proceeds Reserve Balance Other Funds Non-Admin Admin Bond Proceeds Reserve Balance Other Funds Non-Admin Admin $ 51,451,121 $ 4,001,750 $ - $ - $ - $ 2,638,319 $ 125,000 $ 2,763,319 $ - $ - $ - $ 1,113,431 $ 125,000 $ 1,238,431 3 Tax Allocation BondsBonds Issued On or Before 2/17/2005 8/1/2034 Bond Holders 2005 merged T. A. Bonds Y $ - $ - $ -4 Light Fund Advance Third-Party Loans 4/1/1997 6/27/2033 Light and Water Advance/577-645 Foothill/Krems Site N 5 Light Fund Advance Third-Party Loans 4/21/1997 10/1/2033 Light and Water City Adv./Autodealership N 6 Water Fund Advance Third-Party Loans 11/7/2005 6/30/2025 Light and Water City Adv./619-621 N. Azusa (Talley Bldg) N 7 Reimb. Agreement Bonds Issued On or Before 12/31/1012/1/2003 8/1/2020 City of Azusa Reimb Agrmt/2003 Refunding COP's 2,020,000 N $ 355,968 318,234 $ 318,234 37,734 $ 37,734 8 Housing Bonds Bonds Issued On or Before 12/31/1011/25/2008 8/1/2038 Bond Holders 2008 Series B Housing T.A. Bonds Y $ - $ - $ - 9 Tax Allocation Bonds Bonds Issued On or Before 12/31/107/31/2007 8/1/2035 Bond Holders 2007 Series A Tax Allocation Bonds Y $ - $ - $ - 10 Tax Allocation Bonds Bonds Issued On or Before 12/31/107/31/2007 8/1/2036 Bond Holders 2007 Series B Tax Allocation Bonds 4,040,000 N $ 317,439 214,991 $ 214,991 102,448 $ 102,448 14 Bambino's FFE Business Incentive Agreements1/28/2009 1/28/2017 Bambino's Pizza Available Furniture Fixture & Equipment Loan balance 7,690 N $ - $ - $ -19 SERAF FY 2010-11 Loan City/County Loans On or Before 6/27/115/2/2011 6/30/2030 Light and Water FY 2010-11 SERAF Payment to State N 21 Harlan Lee Proj.(formerly Coastfed/Casden)Third-Party Loans 7/1/1991 6/30/2016 Light and Water Low-Mod Income Housing advance N 22 Administrative Allocation Admin Costs 7/1/2012 6/30/2017 City of Azusa Successor Agency Administrative Allocation 250,000 N $ 250,000 125,000 $ 125,000 125,000 $ 125,000 23 Payment Reservation Reserves 1/1/2014 9/30/2017 City of Azusa Reserve for July 2014 Bond Debt Service and expenses Y $ - $ - $ -24 City L&W Enterprise Loan Third-Party Loans 6/30/1989 6/30/2014 Light and Water 25 - Year Secured Note - Revolving N 25 City Loan/Debt Obligation (Bond) City/County Loans On or Before 6/27/117/1/1991 6/30/2039 City of Azusa 1990 APFA Bond City Lease Loan Drawdown N 26 City L&W Enterprise Loan Third-Party Loans 8/7/1989 6/30/2039 Light and Water Advance/Rehabilitation Improvements N 27 SERAF FY 2010-11 Loan City/County Loans On or Before 6/27/115/2/2011 6/30/2030 Light and Water FY 2010-11 SERAF Payment to State N 32 DDA (Azusa/Arrow Hwy) OPA/DDA/Construction 6/6/2011 6/30/2017 The Charvat Family LLC Public Improvement 200,000 N $ - $ - $ -34 Administrative Allocation Housing Entity Admin Cost 7/1/2014 6/30/2017 LA County Low-Mod Income Housing Administrative Allocation Y 35 1989 Ranch Center Project Loan City/County Loans On or Before 6/27/119/11/2014 6/30/2030 City of Azusa Public Improvement N 36 1990 Ranch Center/Central Business District LoanCity/County Loans On or Before 6/27/119/11/2014 6/30/2030 City of Azusa Public Improvement N 37 1989 West End Project Loan City/County Loans On or Before 6/27/119/11/2014 6/30/2030 City of Azusa Public Improvement related to Price Club Project N 39 Tax Allocation Bonds Bonds Issued After 12/31/10 10/14/2014 8/1/2034 Bond Holders 2014 Subordinate Tax Allocation Refunding Bonds 9,715,000 N $ 1,100,194 900,272 $ 900,272 199,922 $ 199,922 40 Tax Allocation Bonds Bonds Issued After 12/31/10 9/23/2015 8/1/2036 Bond Holders 2015A Subordinate Tax Allocation Refunding Bonds 14,315,000 N $ 467,797 215,691 $ 215,691 252,106 $ 252,106 41 Tax Allocation Bonds Bonds Issued After 12/31/10 9/23/2015 8/1/2036 Bond Holders 2015B Subordinate Tax Allocation Refunding Bonds 16,215,000 N $ 1,080,904 774,407 $ 774,407 306,497 $ 306,497 42 City Enterprise Loan City/County Loans After 6/27/116/25/2015 8/1/2036 City of Azusa Enterprise Loan 4,688,431 N $ 429,448 214,724 $ 214,724 214,724 $ 214,724 43 N $ - $ - $ - RPTTF Non-Redevelopment Property Tax Trust Fund (Non-RPTTF) Contract/Agreement Termination Date ROPS 16-17 Total 16-17B Non-Redevelopment Property Tax Trust Fund (Non-RPTTF) RPTTF 16-17ATotal Azusa Recognized Obligation Payment Schedule (ROPS 16-17) - ROPS DetailJuly 1, 2016 through June 30, 2017(Report Amounts in Whole Dollars)Item #Payee Description/Project Scope Project Area Total Outstanding Debt or Obligation Retired 16-17A 16-17BTotal Project Name/Debt Obligation Obligation TypeContract/Agreement Execution Date
AB CDEFGHIOther RPTTF Bonds issued on or before 12/31/10 Bonds issued on or after 01/01/11 Prior ROPS period balances and DDR RPTTF balances retained Prior ROPS RPTTF distributed as reserve for future period(s) Rent,grants,interest, etc. Non-Admin and Admin ROPS 15-16A Actuals (07/01/15 - 12/31/15)1 Beginning Available Cash Balance (Actual 07/01/15)2,315,109 - 411,949 116,424 160,112 2 Revenue/Income (Actual 12/31/15) RPTTF amounts should tie to the ROPS 15-16A distribution from the County Auditor-Controller during June 201585 - 2,959,905 6,287 3 Expenditures for ROPS 15-16A Enforceable Obligations (Actual 12/31/15)1,990,139 - 2,655,646 - 4 Retention of Available Cash Balance (Actual 12/31/15) RPTTF amount retained should only include the amounts distributed as reserve for future period(s)325,055 - 411,949 420,683 166,399 5 ROPS 15-16A RPTTF Balances RemainingNo entry required6 Ending Actual Available Cash Balance C to G = (1 + 2 - 3 - 4), H = (1 + 2 - 3 - 4 - 5) -$ -$ -$ -$ -$ -$ ROPS 15-16B Estimate (01/01/16 - 06/30/16)7 Beginning Available Cash Balance (Actual 01/01/16) (C, D, E, G = 4 + 6, F = H4 + F4 + F6, and H = 5 + 6)325,055$ -$ 411,949$ 420,683$ 166,399$ -$ 8 Revenue/Income (Estimate 06/30/16)RPTTF amounts should tie to the ROPS 15-16B distribution from the County Auditor-Controller during January 20169 Expenditures for ROPS 15-16B Enforceable Obligations (Estimate 06/30/16)10 Retention of Available Cash Balance (Estimate 06/30/16) RPTTF amount retained should only include the amounts distributed as reserve for future period(s)11 Ending Estimated Available Cash Balance (7 + 8 - 9 -10)325,055$ -$ 411,949$ 420,683$ 166,399$ -$ Azusa Recognized Obligation Payment Schedule (ROPS 16-17) - Report of Cash Balances(Report Amounts in Whole Dollars)Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see CASH BALANCE TIPS SHEET Fund SourcesComments Bond Proceeds Reserve Balance Cash Balance Information by ROPS Period