For City Council Meeting and the City of Rialto, Acting as the Successor to the Redevelopment Agency Meeting [January 8, 2019]
TO: Honorable Mayor/Chair and City Council/Governing Board
APPROVAL: Ahmad R. Ansari, Interim City Administrator
Sean Grayson, Interim City Administrator
FROM: Robb R. Steel, Assistant CA/Development Services Director
Title
Request City Council, Acting as Successor Agency to the Redevelopment Agency for the City of Rialto, to Adopt Resolution No. 7441 Approving the Last and Final Recognized Obligation Payment Schedule, Recognized Obligation Payment Scheduled for Fiscal Year 2019-20, and the Administrative Budget for Fiscal Year 2019-20.
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BACKGROUND:
Pursuant to Section 34177 of the California Health and Safety Code (HSC), successor agencies must submit a Recognized Obligation Payment Schedule (ROPS) to make payments for enforceable obligations and receive administrative funds for each fiscal year. Since 2012, each fiscal year the Successor Agency to the Redevelopment Agency of the City of Rialto (Rialto Successor Agency) prepared and submitted the ROPS to the Rialto Oversight Board and the California Department of Finance for approval.
The Last and Final ROPS allows an agency to make scheduled enforceable obligation payments without submitting an annual ROPS. The Last and Final ROPS must be submitted to the Department of Finance (DOF) and the County Auditor-Controller for approval.
Pursuant to HSC Section 34191.6, beginning January 1, 2016, agencies that have received a Finding of Completion have the option to submit a Last and Final ROPS if the agency satisfies all of the following conditions:
• The remaining debt is limited to administrative costs and payments pursuant to enforceable obligations with defined payment schedules including, but not limited to, debt service, loan agreements, and contracts.
• All remaining obligations have been previously listed on the Recognized Obligation Payment Schedule (ROPS) and approved for payment by the California Department of Finance (DOF) pursuant to HSC section 34177 (m) or (o).
• The agency is not a party to outstanding/unresolved litigation, except as specified in HSC Section 34191.6 (a) (3).
The Rialto Successor Agency Last and Final ROPS request complies with the above requirements, as follows:
1. On May 9, 2013, the DOF approved Rialto Successor Agency’s Finding of Completion.
2. The listed enforceable obligations in the Last and Final ROPS are limited to administrative costs and payments with defined payment schedules.
3. The listed enforceable obligations in the Last and Final ROPS were previously listed on the 2018-19 ROPS and as approved by the DOF.
4. The Rialto Successor Agency is not a party to any litigation.
The RSA may submit the Last and Final ROPS to the DOF at any time, the DOF then has 100 days from the date of submission to issue a determination letter, and the DOF must approve the Last and Final ROPS at least 15 days prior to the tax distribution date to be eligible for that ROPS period. A successor agency may submit maximum of two requests to the DOF to amend the approved Last and Final ROPS.
Upon approval by the DOF, the Last and Final ROPS establishes the maximum amount of Redevelopment Property Tax Trust Funds (RPTTF) for distribution to a successor agency for each remaining fiscal year until all obligations are repaid.
ANALYSIS/DISCUSSION:
Staff prepared the Rialto Successor Agency’s Last and Final ROPS attached hereto as Exhibit A. The Last and Final ROPS lists seven (7) bond debt payment schedules (Series 2008B, Series 2008C, Series 2014A, Series 2015A, Series 2015B, Series 2015C, and Series 2018A), one reimbursement agreement (2007 Certificate of Participation), and administrative services as on-going payments from the RPTTF.
Under the Last and Final ROPS, the Rialto Successor Agency will make the last enforceable obligation payment in the second half of 2037 (ROPS 37-38A). The total amount expended during the Last and Final ROPS periods is $198,748,091 as follows:
As required by the DOF, the Rialto Successor Agency is required to submit the annual Recognized Obligation Payment Schedule (ROPS 19-20) in case the DOF rejects the Last and Final ROPS (see Exhibit B).
The Rialto Successor Agency is eligible to expend $11,319,176 reflected in the Last and Final ROPS and ROPS 19-20 for Fiscal Year 2019-20 as follows:
HSC Section 34177(j) requires that successor agencies prepare an administrative budget and submit it to an oversight board for consideration and approval. Staff prepared the Administrative Budget (see Exhibit C) from July 1, 2019 to June 30, 2020 for a budget amount of $328,898.
Staff will submit the Last and Final ROPS, ROPS 19-20, and the Administrative Budget to the San Bernardino Countywide Oversight Board and to the DOF for consideration.
ENVIRONMENTAL IMPACT:
This action is not a Project as defined in the California Environmental Quality Act (CEQA), pursuant to Section 15378(b)(4) of the CEQA Guidelines because the transfer of funds is a governmental funding mechanism that does not involve any commitment to a specific project, which may result in a potentially significant environmental impact.
GENERAL PLAN CONSISTENCY:
The ROPS is consistent with Goal 3-3 of the Rialto General Plan.
Goal 3-3 is to attract, expand, and retain commercial and industrial businesses to reduce blighted conditions and encourage job growth. The action will allow the Successor Agency to complete enforceable obligated projects of the former Redevelopment Agency.
LEGAL REVIEW:
The City Attorney reviewed and approved the staff report and resolutions.
FINANCIAL IMPACT:
Staff recommends approval of the Last and Final ROPS and ROPS 19-20 to ensure that the Successor Agency will receive sufficient property tax revenue from the RPTTF and other fund sources for deposit into the Redevelopment Obligation Retirement Fund to pay all enforceable obligations. The Rialto Successor Agency will receive RPTTF funds from the County Auditor-Controller in January and June of each year.
For Fiscal Year 2019-20, staff will budget the ROPS obligations totaling $11,319,176 in the appropriate Rialto Successor Agency Fund (Fund 343) as specified in Exhibit D.
RECOMMENDATION:
Staff recommends that the City Council, acting as the Governing Board of the Successor Agency to the Redevelopment Agency of the City of Rialto Adopt a Resolution (Exhibit E) approving the Last and Final Recognized Obligation Payment Schedule, Recognized Obligation Payment Schedule for Fiscal Year 2019-20, and the Successor Agency’s Administrative Budget for Fiscal Year 2019-20.