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Consider adopting a resolution approving the Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Vallejo Successor Agency for the period from July 1, 2020 through June 30, 2021
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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 Recognized Obligation Payment Schedule (ROPS) and Administrative Budget for the Vallejo Successor Agency for the period from July 1, 2020 through June 30, 2021.
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 20-21 which covers July 1, 2020 - June 30, 2021 (Attachment B) for the Vallejo Successor Agency. Total obligations are $1,580,913 of which $944,770 and $190,000 for administrative expenditures is being funded by the Redevelopment Property Tax Trust Fund (RPTTF). In addition, the Vallejo Successor Agency is applying bond proceeds and other funds (i.e. rent, loan repayments, etc.) in the amount of $446,143 to offset enforceable obligations. An administrative budget for FY2020-2021 (Attachment C) for the Vallejo Successor Agency is also submitted as part of this annual report for review and approval by the Board.
The ROPS 20-21 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 6/30/18.
• Page 4 - Notes are optional.
All items on this ROPS have been previously reviewed and approved by the Vallejo Successor Agency Board. There are no new items on this ROPS.
The Vallejo 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 ROPS.
FINANCIAL IMPACT:
Funding of the obligations listed in the ROPS 20-21 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.
ALTERNATIVES:
The Board could direct the Vallejo Successor Agency to amend or remove items on the ROPS 20-21. Also, the SCOB could choose not to adopt the resolution approving the ROPS 20-21 for the period from July 1, 2020 through June 30, 2021; however, this is not recommended because the Successor Agency may be charged $10,000 per day in civil fines.
OTHER AGENCY INVOLVEMENT:
None.