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Consider adopting a resolution approving a Change in Funding Source on the Recognized Obligation Payment Schedule (ROPS) for the Dixon Successor Agency for the period from July 1, 2019 through June 30, 2020
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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 adopt the resolution approving the Change in Funding Source on the Recognized Obligation Payment Schedule (ROPS) for the Dixon Successor Agency for the period from July 1, 2019 through June 30, 2020.
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.
The Dixon Successor Agency seeks authorization to change the funding source for a portion of the payment authority on Recognized Obligations Payment Schedule (ROPS) 19-20 (Attachment B) line item numbers 14, 15 & 16 from Reserve Balance to Other Funds. All items on ROPS 19-20 have been previously approved by the Dixon Successor Agency and Board on January 10, 2019. The ROPS 19-20 as currently approved designates three (3) obligations (line #14, 15 &16) totaling $11,370 be paid from the Reserve Balance. The Reserve Balance is currently $0 and therefore does not have funding to support these payments. In addition, a note held by the Successor Agency was recently paid in full which increases the availability of Other Funds to pay debt obligations. The change in funding source would move $11,370 in obligation payments from Reserve Balance to Other Funds balance (Attachment B). This request does not involve any increase in the overall spending authority approved by the Oversight Board and Department of Finance on ROPS 19-20. Authorization for the Oversight Board to change the funding source is provided by Health and Safety Code Section 34177(a)(4).
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 in change in funding source.
FINANCIAL IMPACT:
A change in funding source of $11,370 will allow the Dixon Successor Agency to meet their debt obligations during the ROPS 19-20 period.
ALTERNATIVES:
The Board SCOB could choose not to adopt the resolution approving Change in Funding Source on the ROPS 19-20 for the period 2019-2020; however, this is would result in the Successor Agency being unable to pay all debt obligations for the fiscal year.
OTHER AGENCY INVOLVEMENT:
None.