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Consider adopting a resolution approving the Last and Final Recognized Obligation Payment Schedule (ROPS) for the Dixon Successor Agency for the period from July 1, 2021 through June 30, 2025
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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 (SCOB) adopt a resolution approving the Last and Final Recognized Obligation Payment Schedule (ROPS) for the Dixon Successor Agency for the period from July 1, 2021 through June 30, 2025.
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.
Pursuant to HSC Section 34191.6(a), Successor Agencies that have received a Finding of Completion may file a Last and Final ROPS when the following conditions are met: (1) the remaining debt is limited to administrative costs and payments pursuant to enforceable obligations with defined payment schedules; (2) all remaining obligations have been previously listed on the ROPS; and (3) the Successor Agency is not party to outstanding or unresolved litigation. The Dixon Successor Agency received a Finding of Completion April 26, 2013 (Attachment A). The Dixon Successor Agency has met the three conditions in order to file a Last and Final ROPS. The Last and Final ROPS will streamline the process for the Dixon Successor Agency as they will not have to come before the SCOB annually to have the ROPS approved.
The SCOB is being asked to approve the Last and Final ROPS which covers the four-year period from July 1, 2021 to June 30, 2025 (Attachment B) for the Dixon Successor Agency. Total obligations are $1,036,548 of which $500 for administrative expenditures is being funded by the Redevelopment Property Tax Trust Fund (RPTTF). In addition, the Dixon Successor Agency is applying other funds (i.e. rent, loan repayments, etc.) in the amount of $11,632 to offset administrative costs.
The Last and Final ROPS includes the following forms provided by the DOF:
• Page 1 - Last and Final ROPS - Summary (funding and outstanding obligation)
• Page 2 - Last and Final ROPS - Summary by ROPS Period
• Page 3 - Last and Final ROPS - ROPS Detail. Includes anticipated expenditures for bond payments, administrative costs and expenditures for contracts, leases and agreements.
The following additional information is provided by the Successor Agency to support the Last and Final ROPS:
• Page 4 - Dixon Successor Agency - Administrative Budget
• Page 5 - 2015 Tax Allocation Refunding Bond Payment Schedule
All items on this ROPS have been previously reviewed and approved by the Dixon Successor Agency and SCOB. There are no new items on this Last and Final ROPS.
Per state law, the Last and Final ROPS must be approved by the Oversight Board and then submitted to the State Department of Finance (DOF) for its review before any distribution of funds by the County Auditor-Controller.
The DOF will have 100 days from the date received to approve or deny the successor agency's request. The DOF may make any amendments or changes to the Last and Final ROPS, provided the amendments or changes are agreed to by the Successor Agency in writing. If the Successor Agency and the DOF cannot come to an agreement on the proposed amendments or changes to the Last and Final ROPS, the DOF is required to issue a letter denying the Last and Final ROPS.
If approved by the DOF, the Last and Final ROPS shall become effective on the first day of the subsequent Redevelopment Property Tax Trust Fund distribution period. If the Last and Final ROPS is approved less than 15 days before the date of the property tax distribution dates of January 2 and July 1, the Last and Final ROPS shall not be effective until the subsequent Redevelopment Property Tax Trust Fund distribution period.
Only two (2) amendments are allowed to the Last and Final ROPS after the DOF approval pursuant to HSC Section 34191.6(c)(2). Such amendments must first be submitted to the Oversight Board for approval before submitting them to the DOF. The DOF will have 100 days from the date of receipt to approve or deny the amendments to the DOF-approved Last and Final ROPS.
The Dixon Successor Agency 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 Last and Final ROPS.
FINANCIAL IMPACT:
Funding of the obligations listed in the Last and Final ROPS will be subject to approval by the DOF and dependent upon the availability of sufficient redevelopment property tax revenues, as determined by the County Auditor-Controller.
ALTERNATIVES:
The SCOB could choose not to adopt the resolution approving the Last and Final ROPS although this is not recommended because the Dixon Successor Agency has only 4 years of obligations remaining and has met the criteria for filing a Last and Final ROPS.
OTHER AGENCY INVOLVEMENT:
None.