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HomeMy WebLinkAbout0008_1_SA Staff Report - Adoption of Amended ROPS 16-17BPage 1 of 2 REPORT TO SUCCESSOR AGENCY To:Honorable Chair and Members of the Agency From:Grant Yates, Executive Director Prepared By: Barbara Leibold, Successor Agency Counsel Date:September 27, 2016 Subject:Amended Recognized Obligation Payment Schedule (ROPS 16–17B) for the January 1, 2017 through June 30, 2017 Period Recommendation Adopt A RESOLUTION OF THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA, APPROVING THE AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 16-17B) FOR THE JANUARY 1, 2017 THROUGH JUNE 30, 2017 PERIOD 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) 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 fiscal year. The Successor Agency has previously adopted ROPS 16-17 for the current fiscal year. ROPS 16-17 was approved by the Oversight Board to the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore and the State Department of Finance (DOF). SB 107, enacted in September 2016, provides for a one-time amendment to ROPS 16-17 for the January through June 30, 2017 period. Discussion SB 107 requires that the amendment to the ROPS for January 2017 through June 2017 be submitted to DOF and the State Controller’s office, after approval by the Oversight Board, no later than October 1, 2016 (October 3 in 2016 since October 1 is a Saturday). 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. The attached Amended ROPS 16-17B for the period January 1, 2017 – June 30, 2017 follows the form prescribed by the DOF and incorporates all of the remaining obligations identified in the previous ROPS. Approval of Amended ROPS 16-17B Page 2 of 2 Fiscal Impact Adoption of the Amended ROPS 16-17B for the period January 1, 2017 – June 30, 2017 continues the process set forth in ABx1 26 to insure that the Successor Agency will be allocated adequate property tax revenues to make required debt service and other enforceable obligation payments in addition to recouping its administrative costs. As such, there is no financial impact on the City’s general fund. Prepared By:Barbara Leibold, Successor Agency Counsel Approved By:Grant Yates, Executive Director Attachments: Successor Agency Resolution No. SA-2016-___ Amended Recognized Obligation Payment Schedule of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore for the period of January 1, 2017 through June 30, 2017 (ROPS 16-17B)