HomeMy WebLinkAboutD-1 - 17-18 ROPS and Admin Budget1
Oversight Board Staff Report
ROPS 16-17-July 1, 2016 to June 30, 2017
January 27, 2016
Page 1
OVERSIGHT BOARD SCHEDULED ITEM
D-1
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE OVERSIGHT
BOARD OF THE SUCCESSOR AGENCY TO THE FORMER
REDEVELOPEMENT AGENCY OF THE CITY OF AZUSA
FROM: KURT E. CHRISTIANSEN, ECONOMIC AND COMMUNITY
DEVELOPMENT DIRECTOR
DATE: FEBRUARY 8, 2017
SUBJECT: APPROVAL OF RECOGNIZED OBLIGATION PAYMENT SCHEDULE AND
ADMINISTRATIVE BUDGET FOR JULY 1, 2017 THROUGH JUNE 30, 2018
AND ADOPTION OF RESOLUTIONS
SUMMARY:
Pursuant to Health and Safety Code Section 34177, the Successor Agency of the former
Redevelopment Agency of the City of Azusa (“Agency”) is required to continue to make
payments due for enforceable obligations of the former Redevelopment Agency. The Agency is
to prepare a “Recognized Obligation Payment Schedule” (“ROPS”) for the period of July 1,
2017 through June 30, 2018 (“ROPS 17-18”) that identifies these obligations for the period. In
addition, the Agency is required to prepare a proposed administrative budget and submit to the
Oversight Board (“Board”) for approval. This action requests the approvals of Resolution 2017-
OB04, approving and adopting ROPS 17-18 and Resolution 2017-OB05, approving and
adopting the proposed administrative budget for the period of July 1, 2017 through June 30,
2018.
RECOMMENDATION:
1. Adopt the attached Resolution No. 2017-OB04, approving and adopting the
“Recognized Obligation Payment Schedule” for the period of July 1, 2017 through
June 30, 2018 (ROPS 17-18) pursuant to AB x1 26 as amended by AB 1484.
2. Adopt the attached Resolution No. 2017-OB05, approving and adopting the proposed
Administrative Budget for July 1, 2017 through June 30, 2018.
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). Each ROPS previously reflected a six-
month interval of obligations. However, the new procedure requires the Successor Agencies to
prepare a ROPS for a 12-month interval, for the full fiscal year.
APPROVED
2/8/2017
2
Oversight Board Staff Report
ROPS 17-18-July 1, 2017 to June 30, 2018
February 8, 2017
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.
The following is a summary of the enforceable obligations listed in ROPS 17-18:
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 17-18 by the Board, it is submitted to the DOF, State Controller’s
Office and the County of Los Angeles Auditor-Controller by February 1, 2017. It will also be
posted on the City website. The DOF must complete its review of ROPS 17-18 by April 15, 2017
and issue a Determination Letter. If the Agency disagrees with DOF’s determination, the
Agency can request a Meet and Confer session with DOF, within five days of receipt of the
letter, to allow for a two-way dialogue between the Agency and the DOF. At the conclusion of
the Meet and Confer meeting, the DOF will issue a final Determination Letter by May 15, 2017.
This is a statutory deadline as the tax increment must be distributed to the Agency by June 1,
2017 to fund the ROPS 17-18 obligations.
The attached resolution, 2017-OB04, approves and adopts ROPS 17-18, setting forth the
recognized obligations of the Agency and the amount of payments to be made for each
obligation from July 1, 2017 through June 30, 2018. It also authorizes staff to amend the ROPS
in order to remove line items which are subsequently disapproved by the Board and/or DOF.
Resolution 2017-OB05 approves and adopts the proposed administrative budget reflecting the
estimated costs to perform the administrative functions for the purpose of winding down the
former Redevelopment Agency’s affairs. The Successor Agency is entitled to receive a
maximum amount of $250,000 annually.
FISCAL IMPACT:
The resources to fund the obligations of ROPS 17-18 will come from the Redevelopment
Property Tax Trust Fund (“RPTTF”). Approval of ROPS 17-18 will facilitate the ability of the
Agency to continue payment of the enforceable obligations of the former Redevelopment
Agency for the next fiscal year. Failure to approve and submit the ROPS 17-18 to the DOF by
the February 1, 2017 deadline, as required by AB1484, will result in penalties of $10,000 per day
to the Successor Agency.
Prepared by: Reviewed and Approved by:
Talika Johnson Kurt Christiansen
Director of Finance Director of Economic and Community
Development
Attachments:
1)Resolution No. 2017-OB04 – Successor Agency of the former Redevelopment Agency of the City
of Azusa Adopting a Recognized Obligation Payment Schedule-July 1, 2017 to June 30, 2018
(ROPS 17-18)
Exhibit A – ROPS 17-18, July 1, 2017 to June 30, 2018
2)Resolution No. 2014-OB05 – Successor Agency of the former Redevelopment Agency of the City
of Azusa Adopting an Administrative Budget -July 1, 2017 to June 30, 2018
Exhibit B – Proposed Administrative Budget, July 1, 2017 to June 30, 2018
Oversight Board Staff Report
ROPS 17-18-July 1, 2017 to June 30, 2018
February 8, 2017
Page 3
RESOLUTION NO. 2017-OB04
A RESOLUTION OF THE OVERSIGHT BOARD 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,
2017 THROUGH JUNE 30, 2018 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”) annually.
WHEREAS, because the Oversight Board of the Successor Agency of the former
Redevelopment Agency of the City of Azusa (“Board”) previously adopted a ROPS, Resolution
No. OB-2-2016, dated January 27, 2016, is operative only through June 30, 2017, so that the
Successor Agency of the former Redevelopment (“Agency”) may continue to meet the Agency’s
recognized obligations, and
NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the Oversight
Board 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 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 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.
Section 3. The Agency staff is authorized to include on the ROPS any items
which were approved on previous ROPS but not fully expended.
Section 4. The Board hereby approves and adopts ROPS 17-18, 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 34177, during the
time period from July 1, 2017 through June 30, 2018. The Agency
reserves the right to further amend the ROPS in the future in order
to provide an accurate schedule.
Section 5. The Board hereby directs that copies of this Resolution be submitted to
the California State Department of Finance, the California State
Controller’s Office and the Los Angeles County Auditor-Controller
and to be posted on the Agency’s website.
Section 6. Pursuant to Health and Safety Code Section 34179(h), all actions taken
by the Oversight Board, may be reviewed by the California Department
of Finance, and therefore, this Resolution shall not be effective for five
(5) business days, pending a request for review by the California
Department of Finance.
APPROVED AND ADOPTED THIS 8th day of February 2017.
Robert Gonzales, Chairperson
Oversight Board
Successor Agency to the Former Redevelopment Agency
of the City of Azusa
ATTEST:
Jeffrey Lawrence Cornejo, Jr., Secretary
Oversight Board
Successor Agency to the Former Redevelopment Agency
of the City of Azusa
I HEREBY CERTIFY that the foregoing Resolution No. 2017-OB04 was duly adopted
by the Board Members of the Oversight Board of the City of Azusa at a regular meeting thereof
on the 8th day of February 2017, by the following vote of Board Members:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Jeffrey Lawrence Cornejo, Jr., Secretary
Oversight Board
Successor Agency to the Former Redevelopment Agency
of the City of Azusa
EXHIBIT A
RECOGNIZED OBLIGATION PAYMENT SCHEDULE 17-18
July 1, 2017 through June 30, 2018
Successor Agency:Azusa
County:Los Angeles
Current Period Requested Funding for Enforceable Obligations (ROPS Detail)
17-18A Total
(July - December)
17-18B Total
(January - June) ROPS 17-18 Total
A -$ -$ -$
B - - -
C - - -
D - - -
E 3,480,098$ 1,448,652$ 4,928,750$
F 3,355,098 1,323,652 4,678,750
G 125,000 125,000 250,000
H Current Period Enforceable Obligations (A+E):3,480,098$ 1,448,652$ 4,928,750$
Name Title
/s/
Signature Date
Recognized Obligation Payment Schedule (ROPS 17-18) - Summary
Filed for the July 1, 2017 through June 30, 2018 Period
Enforceable Obligations Funded as Follows (B+C+D):
RPTTF
Redevelopment Property Tax Trust Fund (RPTTF) (F+G):
Bond Proceeds
Reserve Balance
Other Funds
Administrative RPTTF
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.
A B C D E F G H I J
$ 53,307,303
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
12/31/10
12/1/2003 8/1/2020 City of Azusa Reimb Agrmt/2003 Refunding COP's MCBD & WE 1,745,000 N
10 Tax Allocation Bonds Bonds Issued On or Before
12/31/10
7/31/2007 8/1/2036 Bond Holders 2007 Series B Tax Allocation Bonds MCBD & WE 3,930,000 N
14 Bambino's FFE Business Incentive
Agreements
1/28/2009 1/28/2017 Bambino's Pizza Available Furniture Fixture &
Equipment Loan balance
MCBD & WE 7,690 N
19 SERAF FY 2010-11 Loan City/County Loans On or
Before 6/27/11
5/2/2011 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
MCBD & WE 250,000 N
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 6/27/11
7/1/1991 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 6/27/11
5/2/2011 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 MCBD & WE 200,000 N
34 Administrative Allocation Housing Entity Admin Cost 7/1/2014 6/30/2017 LA County Low-Mod Income Housing
Administrative Allocation
MCBD & WE 150,000 N
35 1989 Ranch Center Project Loan City/County Loans On or
Before 6/27/11
9/11/2014 6/30/2030 City of Azusa Public Improvement N
36 1990 Ranch Center/Central
Business District Loan
City/County Loans On or
Before 6/27/11
9/11/2014 6/30/2030 City of Azusa Public Improvement N
Azusa Recognized Obligation Payme
July 1, 2017 thr
(Report Amoun
Item #Payee Description/Project Scope Project Area
Total Outstanding
Debt or Obligation Retired Project Name/Debt Obligation Obligation Type
Contract/Agreement
Execution Date
Contract/Agreement
Termination Date
A B C D E F G H I J
Azusa Recognized Obligation Payme
July 1, 2017 thr
(Report Amoun
Item #Payee Description/Project Scope Project Area
Total Outstanding
Debt or Obligation Retired Project Name/Debt Obligation Obligation Type
Contract/Agreement
Execution Date
Contract/Agreement
Termination Date
37 1989 West End Project Loan City/County Loans On or
Before 6/27/11
9/11/2014 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
MCBD & WE 9,025,000 N
40 Tax Allocation Bonds Bonds Issued After 12/31/10 9/23/2015 8/1/2036 Bond Holders 2015A Subordinate Tax Allocation
Refunding Bonds
MCBD & WE 14,315,000 N
41 Tax Allocation Bonds Bonds Issued After 12/31/10 9/23/2015 8/1/2036 Bond Holders 2015B Subordinate Tax Allocation
Refunding Bonds
MCBD & WE 15,705,000 N
42 City Enterprise Loan City/County Loan (Prior
06/28/11), Cash exchange
6/25/2015 8/1/2036 City of Azusa Enterprise Loan MCBD & WE 3,499,613 N
43 Tax Allocation Bonds Bonds Issued On or Before
12/31/10
7/31/2007 8/1/2035 Bond Holders 2007 Series A Tax Allocation Bonds MCBD & WE 4,480,000 N
44 N
K L M N O P Q R S T U V W
Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF
$ 4,928,750 $ - $ - $ - $ 3,355,098 $ 125,000 $ 3,480,098 $ - $ - $ - $ 1,323,652 $ 125,000 $ 1,448,652
$ 354,590 322,734 $ 322,734 31,856 $ 31,856
$ 322,076 222,448 $ 222,448 99,628 $ 99,628
$ - $ - $ -
$ 250,000 125,000 $ 125,000 125,000 $ 125,000
$ - $ - $ -
$ 150,000 75,000 $ 75,000 75,000 $ 75,000
ent Schedule (ROPS 17-18) - ROPS Detail
rough June 30, 2018
nts in Whole Dollars)
17-18A (July - December)
17-18B
Total
Fund Sources Fund Sources
ROPS 17-18
Total
17-18B (January - June)
17-18A
Total
K L M N O P Q R S T U V W
Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF
ent Schedule (ROPS 17-18) - ROPS Detail
rough June 30, 2018
nts in Whole Dollars)
17-18A (July - December)
17-18B
Total
Fund Sources Fund Sources
ROPS 17-18
Total
17-18B (January - June)
17-18A
Total
$ 1,090,744 904,922 $ 904,922 185,822 $ 185,822
$ 504,212 252,106 $ 252,106 252,106 $ 252,106
$ 925,631 621,497 $ 621,497 304,134 $ 304,134
$ 549,101 274,550 $ 274,550 274,551 $ 274,551
$ 782,396 681,841 $ 681,841 100,555 $ 100,555
$ - $ - $ -
A B C D E F G H I
Other 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 15-16B Actuals (01/01/16 - 06/30/16)
1 Beginning Available Cash Balance (Actual 01/01/16)
332,501 - 411,949 - 166,398 420,683
2 Revenue/Income (Actual 06/30/16)
RPTTF amounts should tie to the ROPS 15-16B distribution from the
County Auditor-Controller during June 2016
236,837 609,316 2,593,287 - 5,231 3,843,267
3 Expenditures for ROPS 15-16B Enforceable Obligations (Actual
06/30/16)
244,254 609,314 - - 73,822 1,246,930
4 Retention of Available Cash Balance (Actual 06/30/16)
RPTTF amount retained should only include the amounts distributed as
reserve for future period(s)
325,084 2 3,005,236
5 ROPS 15-16B RPTTF Balances Remaining
No entry required
6 Ending Actual Available Cash Balance
C to G = (1 + 2 - 3 - 4), H = (1 + 2 - 3 - 4 - 5)
-$ -$ -$ -$ 97,807$ 3,017,020$
Azusa Recognized Obligation Payment Schedule (ROPS 17-18) - 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 Sources
Comments
Bond Proceeds Reserve Balance
Cash Balance Information by ROPS Period
Item #Notes/Comments
Azusa Recognized Obligation Payment Schedule (ROPS 17-18) - Notes July 1, 2017 through June 30, 2018
RESOLUTION NO. 2017-OB05
A RESOLUTION OF THE OVERSIGHT BOARD OF THE SUCCESSOR
AGENCY OF THE FORMER REDEVELOPMENT AGENCY OF THE
CITY OF AZUSA APPROVING AND ADOPTING THE
ADMINISTRATIVE BUDGET FOR THE PERIOD OF JULY 1, 2017
THROUGH JUNE 30, 2018 PURSUANT TO AB x1 26 AS AMENDED BY
AB 1484
WHEREAS, Health and Safety Code Section 34177(J), enacted by AB x1 26, requires a
successor agency to a former redevelopment agency to prepare administrative budgets to the
Oversight Board for approval.
WHEREAS, the Successor Agency of the Former Redevelopment Agency of the City of
Azusa (“Agency”) has submitted to the Oversight Board of the Agency (“Board”) an annual
proposed administrative budget (“Budget”) that commences on July 1, 2017 through June 30,
2018. Attached hereto as Exhibit B, and
NOW, THEREFORE, BE IT RESOLVED, determined and ordered by the Oversight
Board as follows:
Section 1. The Recitals set forth above are true and correct and incorporated
herein by reference.
Section 2. The Board hereby approves the Budget, in substantially the form
attached to this Resolution as Exhibit B, so that the Agency may
continue to meet its recognized obligations, all as required by Health
and Safety Code section 34177, during the time period from July 1,
2017 through June 30, 2018. The Agency reserves the right to further
amend the Budget in the future in order to provide an accurate
schedule.
Section 3. The Agency staff is authorized and directed to enter into any
agreements and amendments to agreements necessary to memorialize
and implement the agreements and obligations in the Budget herein
approved by the Board.
Section 4. The Board hereby directs that copies of this Resolution be submitted to
the California State Department of Finance, the California State
Controller’s Office and the Los Angeles County Auditor-Controller
and to be posted on the Agency’s website.
Section 5. Pursuant to Health and Safety Code Section 34179(h), all actions taken
by the Board, may be reviewed by the California Department of
Finance, and therefore, this Resolution shall not be effective for five (5)
business days, pending a request for review by the California
Department of Finance.
APPROVED AND ADOPTED THIS 8th day of February, 2017.
Robert Gonzales, Chairperson
Oversight Board
Successor Agency to the Former Redevelopment Agency
of the City of Azusa
ATTEST:
Jeffrey Lawrence Cornejo, Jr., Secretary
Oversight Board
Successor Agency to the Former Redevelopment Agency
of the City of Azusa
I HEREBY CERTIFY that the foregoing Resolution No. 2017-OB05 was duly adopted
by the Board Members of the Oversight Board of the City of Azusa at a regular meeting thereof
on the 8th day of February 2017, by the following vote of Board Members:
AYES: BOARD MEMBERS:
NOES: BOARD MEMBERS:
ABSENT: BOARD MEMBERS:
Jeffrey Lawrence Cornejo, Jr., Secretary
Oversight Board
Successor Agency to the Former Redevelopment Agency
of the City of Azusa
EXHIBIT B
PROPOSED ADMINISTRATIVE BUDGET
July 1, 2017 through June 30, 2018
Administrative Allocation 250,000$
Administrative Costs
Vendor:Description Estimate
Best Best & Krieger Agency Legal Counsel $75,000
Arbitrage Compliance Specialists Arbitrage calculations 2,500
Urban Futures Continuing Disclosures 5,750
HdL Coren & cone Tax Increment Audit Services 7,000
Dukes Landscaping Weed abatement/treatment 5,500
Iron Mountain Storage 2,400
Lance Soll & Lunghard Audit Services 10,000
Verizon Communication Comm. Service-Reader Board 1,860
Azusa Light & Water Reader Board-Electrical 9,900
Wilmington Trust Trustee Admin Fees 7,000 $126,910
Personnel:
Position Estimate
City Manager $13,730
Econ & Comm director 101,789
Finance Director 20,119
Senior Accountant 54,993
Assist. City Clerk 10,244
A/P Specialist 2,591
Executive Asst 2,576
Payroll Specialist 2,452 208,493 335,403
Excess (Deficit) - Administrative Allocation (85,403)$
Successor Agency of the Former Redeveolpment Agency of the City of Azusa
PROPOSED ADMINISTRATIVE BUDGET
July 1, 2017 to June 30, 2018