HomeMy WebLinkAboutD-1 - ROPS and Admin Budget FY 16-17Oversight Board Staff Report
ROPS 16-17-July 1, 2016 to June 30, 2017
January 27, 2016
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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: JANUARY 27, 2016
SUBJECT: APPROVAL OF RECOGNIZED OBLIGATION PAYMENT SCHEDULE AND
ADMINISTRATIVE BUDGET FOR JULY 1, 2016 THROUGH JUNE 30, 2017
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,
2016 through June 30, 2017 (“ROPS 16-17”) 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 OB-1-
2016, approving and adopting ROPS 16-17 and Resolution OB-2-2016, approving and adopting
the proposed administrative budget for the period of July 1, 2016 through June 30, 2017.
RECOMMENDATION:
1. Adopt the attached Resolution No. OB-2-2016, 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.
2. Adopt the attached Resolution No. OB-3-2016, approving and adopting the proposed
Administrative Budget for July 1, 2016 through June 30, 2017.
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
01/27/2016
Oversight Board Staff Report
ROPS 16-17-July 1, 2016 to June 30, 2017
January 27, 2016
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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 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 Board, it is 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 DOF must complete its review of ROPS 16-17 by April 15, 2016
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, 2016.
This is a statutory deadline as the tax increment must be distributed to the Agency by June 1,
2016 to fund the ROPS 16-17 obligations.
The attached resolution, OB-2-2016, approves and 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 Board and/or DOF.
Oversight Board Staff Report
ROPS 16-17-July 1, 2016 to June 30, 2017
January 27, 2016
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Resolution OB-3-2016 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 16-17 will come from the Redevelopment
Property Tax Trust Fund (“RPTTF”). 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 fiscal year. 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 Successor Agency.
Prepared by: Reviewed and Approved by:
Susan Paragas Kurt Christiansen
Director of Finance Director of Economic and Community
Development
Attachments:
1) Resolution No. OB-2-2016– 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)
Exhibit A – ROPS 16-17, July 1, 2016 to June 30, 2017
2) Resolution No. OB-3-2016– Successor Agency of the former Redevelopment Agency of the City
of Azusa Adopting an Administrative Budget -July 1, 2016 to June 30, 2017
Exhibit B – Proposed Administrative Budget, July 1, 2016 to June 30, 2017
RESOLUTION NO. OB-2-2016
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,
2016 THROUGH JUNE 30, 2017 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-11-2015, dated September 24, 2015, is operative only through June 30, 2015, 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 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 34177, 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 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 27th day of January, 2016.
__________________________________
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. OB-2-2016 was duly adopted
by the Board Members of the Oversight Board of the City of Azusa at a regular meeting thereof
on the 27th day of January 2016, 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 16-17
July 1, 2016 through June 30, 2017
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$ NameTitle/s/SignatureDateRecognized 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 A1
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 2/17/20058/1/2034Bond Holders2005 merged T. A. Bonds Y $ - $ - $ -4 Light Fund AdvanceThird-Party Loans4/1/19976/27/2033Light and WaterAdvance/577-645 Foothill/Krems Site N 5 Light Fund AdvanceThird-Party Loans4/21/199710/1/2033Light and WaterCity Adv./Autodealership N 6 Water Fund AdvanceThird-Party Loans11/7/20056/30/2025Light and WaterCity Adv./619-621 N. Azusa (Talley Bldg) N 7 Reimb. AgreementBonds Issued On or Before 12/31/1012/1/20038/1/2020City of AzusaReimb Agrmt/2003 Refunding COP's 2,020,000 N $ 355,968 318,234 $ 318,234 37,734 $ 37,734 8 Housing BondsBonds 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 BondsBonds Issued On or Before 12/31/107/31/20078/1/2035Bond Holders2007 Series A Tax Allocation Bonds Y $ - $ - $ - 10 Tax Allocation BondsBonds Issued On or Before 12/31/107/31/20078/1/2036Bond Holders2007 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 AllocationAdmin Costs7/1/20126/30/2017City of AzusaSuccessor Agency Administrative Allocation 250,000 N $ 250,000 125,000 $ 125,000 125,000 $ 125,000 23 Payment ReservationReserves1/1/20149/30/2017City of AzusaReserve for July 2014 Bond Debt Service and expenses Y $ - $ - $ -24 City L&W Enterprise Loan Third-Party Loans6/30/19896/30/2014Light and Water25 - 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 Loans8/7/19896/30/2039Light and WaterAdvance/Rehabilitation Improvements N 27 SERAF FY 2010-11 Loan City/County Loans On or Before 6/27/115/2/20116/30/2030Light and WaterFY 2010-11 SERAF Payment to State N 32 DDA (Azusa/Arrow Hwy)OPA/DDA/Construction 6/6/20116/30/2017The Charvat Family LLC Public Improvement 200,000 N $ - $ - $ -34 Administrative AllocationHousing Entity Admin Cost 7/1/20146/30/2017LA CountyLow-Mod Income Housing Administrative Allocation Y 35 1989 Ranch Center Project Loan City/County Loans On or Before 6/27/119/11/20146/30/2030City of AzusaPublic Improvement N 36 1990 Ranch Center/Central Business District LoanCity/County Loans On or Before 6/27/119/11/20146/30/2030City of AzusaPublic Improvement N 37 1989 West End Project Loan City/County Loans On or Before 6/27/119/11/20146/30/2030City of AzusaPublic Improvement related to Price Club Project N 39 Tax Allocation BondsBonds Issued After 12/31/10 10/14/20148/1/2034Bond Holders2014 Subordinate Tax Allocation Refunding Bonds 9,715,000 N $ 1,100,194 900,272 $ 900,272 199,922 $ 199,922 40 Tax Allocation BondsBonds Issued After 12/31/10 9/23/20158/1/2036Bond Holders2015A Subordinate Tax Allocation Refunding Bonds 14,315,000 N $ 467,797 215,691 $ 215,691 252,106 $ 252,106 41 Tax Allocation BondsBonds Issued After 12/31/10 9/23/20158/1/2036Bond Holders2015B Subordinate Tax Allocation Refunding Bonds 16,215,000 N $ 1,080,904 774,407 $ 774,407 306,497 $ 306,497 42 City Enterprise LoanCity/County Loans After 6/27/116/25/20158/1/2036City of AzusaEnterprise 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 #PayeeDescription/Project Scope Project Area Total Outstanding Debt or Obligation Retired 16-17A 16-17BTotal Project Name/Debt Obligation Obligation TypeContract/Agreement Execution DateEXHIBIT A2
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 PeriodEXHIBIT A3
RESOLUTION NO. OB-3-2016
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, 2016
THROUGH JUNE 30, 2017 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, 2016 through June 30,
2017. 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, 2016 through June 30, 2017. 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 27th day of January, 2016.
__________________________________
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. OB-3-2016 was duly adopted
by the Board Members of the Oversight Board of the City of Azusa at a regular meeting thereof
on the 27th day of January 2016, 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, 2016 through June 30, 2017
Administrative Allocation 250,000$
Administrative Costs 311,515$
Payee Description Estimate
Best Best & Krieger Agency Legal Counsel $40,000
Arbitrage Compliance specialists Arbitrage calculations 3,500
Urban Futures Continuing Disclosures 9,250
HdL Coren & cone Tax Increment Audit Services 6,831
Dukes Landscaping Weed abatement/treatment 4,400
Iron Mountain Storage 2,208
Lance Soll & Lunghard Audit Services 20,000
Verizon Communication Comm. Service-Reader Board 1,848
Azusa Light & Water Reader Board-Electrical 10,500
Wilmington Trust Trustee Admin Fees 7,000
Personnel:205,978
Position Estimate
City Manager $13,396
Econ & Comm director 101,575
Finance Director 19,412
Senior Accountant 55,431
Assist. City Clerk 8,974
A/P Specialist 2,436
Executive Asst 2,390
Payroll Specialist 2,363
Excess (Deficit) - Administrative Allocation (61,515)$
Successor Agency of the Former Redeveolpment Agency of the City of Azusa
PROPOSED ADMINISTRATIVE BUDGET
July 1, 2016 to June 30, 2017
EXHIBIT B