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Home My WebLink AboutID# 16-039 ROPS July 1, 2016 Through June 30, 2017 OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE TO: CHAIRMAN KELLEY AND MEMBERS OF THE OVERSIGHT BOARD FROM: BARBARA LEIBOLD, SUCCESSOR AGENCY COUNSEL DATE: JANUARY 27, 2016 SUBJECT: Recognized Obligation Payment Schedule (ROPS 16-17) For July 1, 2016 Through June 30, 2017 Recommendation It is recommended that the Oversight Board approve and adopt: Resolution No. OB-2016-001 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 16-17) FOR JULY 1, 2016 THROUGH JUNE 30, 2017. Background As part of the dissolution of the former Redevelopment Agency, Health and Safety Code Section 34177 (added by AB 1X 26 and amended by AB 1484 and SB 107) requires the Successor Agency to adopt a Recognized Obligation Payment Schedule (ROPS) that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34171 for each six month period of each fiscal year. The Successor Agency has previously adopted ROPS for prior six-month periods. The previous ROPS have been approved by the Oversight Board to the Successor Agency of the Redevelopmen t Agency of the City of Lake Elsinore and the State Department of Finance (DOF). SB 107, enacted in September 2016, changed the format of the ROPS from a six month period to a fiscal year format. Discussion SB 107 requires that the ROPS for July 2016 through June 2017 be submitted to DOF and the State Controller’s office, after approval by the Oversight Board, no later than February 1, 2016. The DOF has five (5) days after submittal to request a review and forty-five (45) days to review the ROPS if it decides to do so. If the ROPS is not submitted by the deadline, the City is subject to a $10,000 fine for every day the ROPS is late and the administrative cost allowance for the Successor Agency is reduced by 25% after 10 days. Approval of ROPS 16-17 January 27, 2016 Page 2 The attached ROPS 16-17 for the period July 1, 2016 – June 30, 2017 follows the form prescribed by the DOF and incorporates all of the remaining obligations identified in the previous ROPS. Please note the following addition to the ROPS :  Housing Entity Administrative Cost Allowance (HEACA) (ROPS Detail Item 43) In February 2014, Governor Jerry Brown signed into law Assembly Bill 471, which made several changes to the redevelopment dissolution process, including the addition of a new “housing entity administrative cost allowance,” which is defined as an amount of up to 1 percent of the property tax, but not less than $150,000, allocated to the Redevelopment Agency Retirement Fund on behalf of the successor agency for each applicable fiscal year. AB 471 provided that if a local housing authority assumed the functions of a former Redevelopment Agency, then the Successor Agency to the former Redevelopment Agency should list the HEACA on the Successor Agency’s ROPS. While it is not clear that the City as Housing Successor qualifies for the HEACA, interpretation of the statute is being challenged and the Successor Agency desires to preserve its right to claim the HEACA in the event challenges to the statute are successful. The total amount of $450,000 included in Item 43 consists of three years of HEACA for fiscal years 2015, 2016 and 2017. This item was denied by the Department of Finance on the last ROPS.  Property Disposition Costs (ROPS Detail Item 43) Commencing January 1, 2016, the Successor Agency is required to commence disposition of its properties in accordance with applicable law. As a number of properties are expected to be sold or transferred in the period covered by ROPS 16-17, $75,000 has been added to the ROPS to cover appraisal, title insurance, escrow, closing and other costs of sale. Prepared By: Barbara Leibold, Successor Agency Counsel Attachments: Oversight Board Resolution No. OB-2016-___ Recognized Obligation Payment Schedule of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore for the period of July 1, 2016 through June 30, 2017 (ROPS 16-17) RESOLUTION NO. OB 2016-001 A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 16-17) FOR JULY 1, 2016 THROUGH JUNE 30, 2017 WHEREAS , the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore (“Oversight Board”) has been established to direct the Successor Agency to take certain actions to wind down the affairs of the former Redevelopment Agency of the City of Lake Elsinore in accordance with the California Health and Safety Code; and WHEREAS, Health and Safety Code Section 34177(o) requires the Successor Agency to prepare and adopt a “Recognized Obligation Payment Schedule” that lists all obligations of the former redevelopment agency that are enforceable within the meaning of subdivision (d) of Section 34171 for twelve month periods, beginning with the Recognized Obligation Payment Schedule for July 1, 2016 through June 30, 2016; and WHEREAS, Section 34177(o) also requires that the ROPS 16-17 for the period July 1, 2016 through June 30, 2017 must be submitted to the Department of Finance and the State Controller’s office, after approval by the Oversight Board, no later than February 1, 2016 or be subject to penalties; and WHEREAS, on January 26, 2016, the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore considered approval of the Recognized Obligation Payment Schedule 16-17 for the period of July 1, 2016 through June 30, 2017; and WHEREAS, all other legal prerequisites to the adoption of this Resolution have occurred. NOW, THEREFORE, THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE DOES HEREBY RESOLVE, DETERMINE AND ORDER AS FOLLOWS: SECTION 1. The Recitals set forth above are true and correct and incorporated herein by reference. SECTION 2. The Oversight Board hereby approves the Schedule submitted concurrently herewith as the Recognized Obligation Payment Schedu le 16-17 for the period of July 1, 2016 through June 30, 2017. Pursuant to Health & Safety Code Section 34173, the Successor Agency’s liability, including, but not limited to, its liability for the obligations on the attached schedule, is limited to the total sum of property tax revenues it receives pursuant to Part 1.85 of AB X1 26. SECTION 3. If any provision of this Resolution or the application thereof to any person or circumstance is held invalid, such invalidity shall not affect other provisions or OVERSIGHT BOARD RESOLUTION NO. OB 2016-001 Page 2 applications of this Resolution which can be given effect without the invalid provision or application, and to this end the provisions of this Resolution are severable. The Oversight Board hereby declares that it would have adopted this Resolution irrespective of the invalidity of any particular portion thereof. SECTION 4. This Resolution shall take effect from and after the date of its passage and adoption. PASSED, APPROVED AND ADOPTED at a regular meeting of the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore, held this 27th day of January, 2016. Genie Kelley, Chairperson Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore ATTEST: Susan M. Domen, MMC Oversight Board Secretary Successor Agency:Lake Elsinore County:Riverside Current Period Requested Funding for Enforceable Obligations (ROPS Detail) 16-17A Total 16-17B Total ROPS 16-17 Total A 353,649$ 1,696,108$ 2,049,757$ B - - - C 105,000 1,440,000 1,545,000 D 248,649 256,108 504,757 E 7,268,323$ 6,648,754$ 13,917,077$ F 7,056,624 6,455,101 13,511,725 G 211,699 193,653 405,352 H Current Period Enforceable Obligations (A+E):7,621,972$ 8,344,862$ 15,966,834$ Name Title /s/ Signature Date Administrative Costs Certification of Oversight Board Chairman: Pursuant to Section 34177 (o) of the Health and Safety code, I hereby certify that the above is a true and accurate Recognized Obligation Payment Schedule for the above named successor agency. Recognized Obligation Payment Schedule (ROPS 16-17) - Summary Filed for the July 1, 2016 through June 30, 2017 Period Enforceable Obligations Funded with Non-Redevelopment Property Tax Trust Fund (RPTTF) Funding Sources (B+C+D): Non-Administrative Costs Enforceable Obligations Funded with RPTTF Funding (F+G): Bond Proceeds Funding Reserve Balance Funding Other Funding A B C D E F G H I J K L M N O P Q R S T U V W Bond Proceeds Reserve Balance Other Funds Non-Admin Admin Bond Proceeds Reserve Balance Other Funds Non-Admin Admin $ 194,630,289 $ 15,966,834 $ - $ 105,000 $ 248,649 $ 7,056,624 $ 211,699 $ 7,621,972 $ - $ 1,440,000 $ 256,108 $ 6,455,101 $ 193,653 $ 8,344,862 1 Tax Allocation Revenue Bonds, 2010 Bonds Issued On or Before 2/1/2010 9/1/2033 Wilmington Trust Bond issue to fund housing & non-All 21,722,613 N $ 989,307 495,991 $ 495,991 493,316 $ 493,316 2 Tax Allocation Revenue Bonds, 2010 Series B Bonds Issued On or Before 12/31/10 5/1/2010 9/1/2025 Wilmington Trust Bond issue to fund housing projects Housing 9,376,213 N $ 937,450 469,700 $ 469,700 467,750 $ 467,750 3 Tax Allocation Revenue Bonds, 2010 Series C Bonds Issued On or Before 12/31/10 11/1/2010 9/1/2030 Wilmington Trust Bond issue to fund non-housing projects Project I and II 33,298,244 N $ 2,220,996 1,110,748 $ 1,110,748 1,110,248 $ 1,110,248 6 Fiscal Agent Fees Fees 2/1/2010 9/1/2038 Union Bank, N.A.Annual fiscal agent fees for bonds issues All N $ - $ - $ - 10 Oakgroves DDA OPA/DDA/Construction 3/12/1993 1/30/2016 Oak Grove Equities Property tax revenue reimbursement Project II 5,000 N $ 5,000 5,000 $ 5,000 $ - 12 Summerly DDA OPA/DDA/Construction 3/11/2011 9/8/2038 McMillin Summerly LLC and Civic Partners-Elsinore LLC DDA pledges a portion of property tax revenues through 2038. Total outstanding debt or obligation is estimated based on projections of tax revenue growth at 2% per annum. If property values and corresponding revenues grow at a higher or lower rate than 2% per annum, the total obligation will similarly increase or decreased. DDA pledges a portion of tax increment for so long as the Agency receives tax increment Project II and III 21,049,976 N $ 2,148,264 65,000 350,159 $ 415,159 1,300,000 433,105 $ 1,733,105 13 Summerly DDA Extraordinary Infrastructure Fund OPA/DDA/Construction 3/11/2011 9/8/2038 Mc Millin Summerly LLC DDA pledges a portion of property tax revenues through 2038. Total outstanding debt or obligation is estimated based on projections of tax revenue growth at 2% per annum. If property values and corresponding revenues grow at a higher or lower rate than 2% per annum, the total obligation will similarly increase or decreased. DDA pledges a portion of tax increment for so long as the Agency receives tax increment Project II and III 5,554,964 N $ 328,083 40,000 70,810 $ 110,810 140,000 77,273 $ 217,273 18 City Reimbursement LERA Bonds Issued After 12/31/10 7/1/2000 2/1/2032 City of Lake Elsinore City Reimbursement LERA - Debt Service All 18,066,700 N $ 1,129,700 564,850 $ 564,850 564,850 $ 564,850 19 Housing Fund Loan SERAF/ERAF 5/1/2010 9/8/2038 Housing Fund Repayment of SERAF All 2,941,619 N 545,873 545,873 545,873 20 Housing Fund Loan Third-Party Loans 12/1/1995 9/8/2038 Housing Fund Payments on principal and interest on loan of bond proceeds from the housing fund. Payments made in any given fiscal year are calculated and disbursed based on available property tax revenue funds after deductions for payment of all other debts and obligations of the Agency. All 26,194,304 N 2,334,000 375,000 375,000 1,959,000 1,959,000 22 Legal Services Fees 9/27/2005 6/30/2015 Leibold McClendon & Mann Legal services for projects, bonds & DDA/Stadium Agreement compliance. All 120,000 N $ 120,000 60,000 $ 60,000 60,000 $ 60,000 23 Consultant Fees Fees 10/23/2007 9/8/2038 HdL Coren & Cone Tax Projections for bond & DDA compliance All 16,280 N $ 16,280 8140 $ 8,140 8,140 $ 8,140 28 Estimated Admin Cost Admin Costs 2/1/2012 9/8/2038 City of Lake Elsinore City Staff Support/other admin reimbursement All 5,717,933 N $ 405,352 211,699 $ 211,699 193,653 $ 193,653 29 Stadium License Agreement Miscellaneous 3/15/2001 12/31/2026 Lake Elsinore Storm, LP License to use stadium for baseball games Project III 1,487,378 N $ - $ - $ - 30 Stadium Maintenance Agreement Property Maintenance 3/15/2001 12/31/2026 Lake Elsinore Storm, LP Agreement to maintain baseball field and facilities Project III 695,032 N $ - $ - $ - 31 Stadium Concession Agreement Miscellaneous 1/30/2002 12/31/2026 Golden State Concessions and Catering Provision of concessions for baseball games Project III 102,000 N $ - $ - $ - 32 Stadium Operation and Maintenance Property Maintenance 1/1/2013 9/8/2038 Various Operation and maintenance of the baseball stadium Project III 30,421,862 N $ 906,180 $ - 256,108 650,072 $ 906,180 33 Interim Stadium Management Agmt.Miscellaneous 1/1/2013 12/31/2016 Lake Elsinore Storm, LP Stadium Maintenance and Management Project III 3,022,034 N $ 2,294,525 248,649 2,045,876 $ 2,294,525 $ - 34 Riverside County Flood Control District Improvement/Infrastructure 12/26/1989 7/18/2034 None None Project I and II 3,625,457 N $ - $ - $ - 35 Administrative Reimbursement RPTTF Shortfall 2/1/2012 9/8/2038 City of Lake Elsinore Repayment for City Staff Support/other All - N $ - $ - $ - 38 Contract for Auditing Services Fees 6/25/2013 6/25/2018 TRS Bond disclosure compliance All - N $ - $ - $ - 39 Bond Disclosure Services Fees 1/28/2015 2/15/2038 Urban Futures Bond disclosure compliance All 108,100 N $ 6,650 $ - 6,650 $ 6,650 40 Property Maintenance Property Maintenance 9/13/2009 6/30/2014 Various Maintenance cost on Agency property Project III 60,000 N $ 60,000 30,000 $ 30,000 30,000 $ 30,000 41 Subordinated Tax Allocation Refunding Bonds, Series 2015 Bonds Issued After 12/31/10 8/25/2015 9/1/2038 Wilmington Trust Bond issue to refund Tax Allocation Revenue Bonds, 2011 Series A and Local Agency Revenue Bonds, 2011 Series A All 10,232,300 N $ 971,694 489,497 $ 489,497 482,197 $ 482,197 42 Fiscal Agent Fees Fees 8/1/2015 9/1/2038 Wilmington Trust Annual fiscal agent fees for bonds issues All 133,600 N $ 18,800 18,800 $ 18,800 $ - 43 Housing Authority Admin. Cost Admin Costs 2/18/2014 12/31/2018 Lake Elsinore Housing Successor Administrative Cost All 600,000 N 450,000 375,000 375,000 75,000 75,000 44 Reconveyance Cost Property Dispositions 5/1/2015 6/30/2017 Various Appraisals, Title Insurance, Escrow and Closing Cost All 78,680 N $ 78,680 41,180 $ 41,180 37,500 $ 37,500 RPTTF Non-Redevelopment Property Tax Trust Fund (Non-RPTTF) Contract/Agreement Termination Date ROPS 16-17 Total 16-17B Non-Redevelopment Property Tax Trust Fund (Non-RPTTF) RPTTF 16-17A Total Lake Elsinore Recognized Obligation Payment Schedule (ROPS 16-17) - ROPS Detail July 1, 2016 through June 30, 2017 (Report Amounts in Whole Dollars) Item #Payee Description/Project Scope Project Area Total Outstanding Debt or Obligation Retired 16-17A 16-17B Total Project Name/Debt Obligation Obligation Type Contract/Agreement Execution Date A B C D E F G H I Other RPTTF Bonds issued on or before 12/31/10 Bonds issued on or after 01/01/11 Prior ROPS period balances and DDR RPTTF balances retained Prior ROPS RPTTF distributed as reserve for future period(s) Rent, grants, interest, etc. Non-Admin and Admin ROPS 15-16A Actuals (07/01/15 - 12/31/15) 1 Beginning Available Cash Balance (Actual 07/01/15) - - 3,909,587 2,620,533 76,762 321,479 2 Revenue/Income (Actual 12/31/15) RPTTF amounts should tie to the ROPS 15-16A distribution from the County Auditor-Controller during June 2015 9,321,389 244,747 5,387,810 3 Expenditures for ROPS 15-16A Enforceable Obligations (Actual 12/31/15) 9,321,389 41,661 1,380,000 244,747 4,753,943 4 Retention of Available Cash Balance (Actual 12/31/15) RPTTF amount retained should only include the amounts distributed as reserve for future period(s)796,852 5 ROPS 15-16A RPTTF Balances Remaining No entry required 6 Ending Actual Available Cash Balance C to G = (1 + 2 - 3 - 4), H = (1 + 2 - 3 - 4 - 5) -$ -$ 3,867,926$ 1,240,533$ 76,762$ 158,494$ ROPS 15-16B Estimate (01/01/16 - 06/30/16) 7 Beginning Available Cash Balance (Actual 01/01/16) (C, D, E, G = 4 + 6, F = H4 + F4 + F6, and H = 5 + 6)-$ -$ 3,867,926$ 2,037,385$ 76,762$ 158,494$ 8 Revenue/Income (Estimate 06/30/16) RPTTF amounts should tie to the ROPS 15-16B distribution from the County Auditor-Controller during January 2016 248,649 5,726,998 9 Expenditures for ROPS 15-16B Enforceable Obligations (Estimate 06/30/16)3,625,457 348,675 248,649 3,928,734 10 Retention of Available Cash Balance (Estimate 06/30/16) RPTTF amount retained should only include the amounts distributed as reserve for future period(s)1,798,264 11 Ending Estimated Available Cash Balance (7 + 8 - 9 -10)-$ -$ 242,469$ 1,688,710$ 76,762$ 158,494$ Lake Elsinore Recognized Obligation Payment Schedule (ROPS 16-17) - Report of Cash Balances (Report Amounts in Whole Dollars) Pursuant to Health and Safety Code section 34177 (l), Redevelopment Property Tax Trust Fund (RPTTF) may be listed as a source of payment on the ROPS, but only to the extent no other funding source is available or when payment from property tax revenues is required by an enforceable obligation. For tips on how to complete the Report of Cash Balances Form, see CASH BALANCE TIPS SHEET Fund Sources Comments Bond Proceeds Reserve Balance Cash Balance Information by ROPS Period Item #Notes/Comments 1 Amount shown in Column U includes $175,000 reserved for debt service due during the ROPS 17-18A Period 2 Amount shown in Column U includes $322,500 reserved for debt service due during the ROPS 17-18A Period 3 Amount shown in Column U includes $635,000 reserved for debt service due during the ROPS 17-18A Period 6 7 8 10 11 12 13 14 15 18 Amount shown in Column O includes $300,000 reserved for debt service due during the ROPS 16-17B Period 19 20 The Lake Elsinore Sucessor Agency disagrees with the Department of Finance's denial. The Successor Agency will continue to list this obligation as enforceable, in anticipation of a court judgment or reversal of policy by the Department sustaining the Successor Agency's position. 22 23 28 29-32 The obligations for line items 29 -32 for the twelve month period covered by ROPS 16-17 are incorporated into line 33 in accordance with the terms of the Interim Stadium Management Agreement and projected for the six month period covered by ROPS 16-17B 33 This line items references the Interim Stadium Management Agreement for Stadium management, operations and maintenance, as amended, for the calendar year 2016 (January 1, 2016 - December 31, 2016) and incorporates the increases in costs and capital expenditures required to be made by the agreement for the six month period covered by ROPS 16-17A. 34 35 38 In accordance to DOF this obligation is included within the Administriative Allowance, 39 40 41 Amount shown in Column U includes $365,000 reserved for debt service due during the ROPS 17-18A Period 42 Amt. in excess of ROPS 15-16A Authorized Amt. $11,200 was added to ROPS 16-17A 43 44 Amt. in excess of ROPS 15-16A Authorized Amt. $3,680 was added to ROPS 16-17A Lake Elsinore Recognized Obligation Payment Schedule (ROPS 16-17) - Notes July 1, 2016 through June 30, 2017