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Consider adopting a resolution approving the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Successor Agency to the Former Redevelopment Agency of the City of Vallejo for the period from July 1, 2026 through June 30, 2027
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Published Notice Required? Yes ___ No _X _
Public Hearing Required? Yes ___ No _X _
RECOMMENDATION:
It is recommended that the Solano Consolidated Oversight Board (Board) adopt the resolution approving the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Successor Agency to the Former Redevelopment Agency of the City of Vallejo (SA) for the period from July 1, 2026 through June 30, 2027.
DISCUSSION:
In 2011, the Governor signed into law AB1X 26 (the "Dissolution Act") which immediately suspended most activities of Redevelopment Agencies prior to their elimination effective October 1, 2011. All agencies were subsequently dissolved as of February 1, 2012, and a Successor Agency was designated to complete the work of the Agency and satisfy the outstanding financial obligations. Assembly Bill 1484 ("AB 1484") was signed by the Governor in 2012, adding significant new or modified actions and deadlines. The Dissolution Act was further amended by SB 107 on September 22, 2015.
Pursuant to HSC Section 34177(l), successor agencies must submit their annual Recognized Obligation Payment Schedules (ROPS), and HSC 34177(j) requires the successor agencies to prepare an administrative budget and submit both to the Board for review and approval. The ROPS must be approved by the State Department of Finance (DOF) before any distribution of funds by the County Auditor-Controller.
The Board is being asked to approve the ROPS 26-27 which covers July 1, 2026 - June 30, 2027 (Attachment B) for the SA. The total amount to be funded by the Redevelopment Property Tax Trust Fund (RPTTF) is $1,093,737 of which $1,047,737 is for enforceable obligations and $46,000 is for administrative expenditures. In addition, the SA is applying other funds (i.e. rent, loan repayments, etc.) in the amount of $17,780 and bond proceeds in the amount of $22,000 to offset enforceable obligations.
Pursuant to Health and Safety Code section 34171(b)(4), administrative costs are limited to the greater of $250,000 or 3% of the property tax distributed to the Successor Agency to pay for enforceable obligations in the preceding fiscal year, as reduced by the administrative cost allowance (ACA) and loan repayments to the sponsoring entity. Furthermore, administrative costs are not to exceed 50% of property taxes distributed for enforceable obligations in the preceding fiscal year, as reduced by the ACA and any loan repayments made to the sponsoring entity. Also submitted as part of this annual report for review and approval by the Board is the proposed administrative budget totaling $46,000 for FY2026-2027 (Attachment C) which is within the limits prescribed under Health and Safety Code section 34171(b)(4).
The ROPS 26-27 includes the following forms provided by the DOF:
• Page 1 - A summary of the obligations to be paid.
• Page 2 - Anticipated expenditures: bond payments and expenditures for contracts, leases and agreements.
• Page 3 - Report of cash balances: reports revenues received with actual and anticipated expenditures and reserves through 6/30/24.
• Page 4 - Notes are optional.
All items on this ROPS have been previously reviewed and approved by the SA and Board. There are new items on this ROPS.
The SA will file, post, mail or otherwise deliver via electronic mail, internet posting, and/or hardcopy, all notices and transmittals necessary or convenient in connection with the approval of the ROPS.
FINANCIAL IMPACT:
Funding of the obligations listed in the ROPS 26-27 will be subject to approval by the DOF and dependent upon the availability of sufficient redevelopment property tax revenues, as determined by the County’s Auditor-Controller.
OTHER AGENCY INVOLVEMENT:
The Solano County Auditor-Controller’s office has reviewed this information.