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HomeMy WebLinkAbout0006_1_OB Staff Report - Adoption of July 2018- June 2019 ROPS 18-19 012918Page 1 of 2 REPORT TO OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE To:Chairperson Kelley and Members of the Oversight Board From:Barbara Leibold, Successor Agency Counsel Date:January 29, 2018 Subject:Recognized Obligation Payment Schedule (ROPS 18–19) for July 1, 2018 through June 30, 2019 Recommendation Adopt A RESOLUTION OF THE OVERSIGHT BOARD TO THE SUCCESSOR AGENCY OF THE REDEVELOPMENT AGENCY OF THE CITY OF LAKE ELSINORE, CALIFORNIA APPROVING THE AMENDED RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 18-19) FOR JULY 1, 2018 THROUGH JUNE 30, 2019 Background As part of the dissolution of the former Redevelopment Agency, Health and Safety Code Section 34177 (added by AB 1X 26, as amended to date) 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 34167 for each twelve month period of each fiscal year. The Successor Agency has previously adopted ROPS for prior twelve month periods. The previous ROPS have been 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). Discussion Applicable law requires that the ROPS for July 2018 through June 2019 be submitted to DOF and the State Controller’s office, after approval by the Oversight Board, no later than February 1, 2018. 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. As the Successor Agency winds down the former Redevelopment Agency, the primary remaining enforceable obligations are the outstanding bonds, Stadium operation and maintenance, and the Summerly Disposition and Development Agreement. A new Line Item 35 has been added to reimburse the City for funding the Administrative Fund shortfall in RPTTF allocation to the Successor Agency from ROPS 17-18B. In addition, Line Items 46 and 47 have been added to the ROPS 18-19 in anticipation to the issuance later this year of Tax Allocation Bonds pursuant to the Summerly DDA and as approved by DOF. These items are presented on the ROPS in a manner consistent with previous ROPS. Approval of ROPS 18-19 Page 2 of 2 The attached ROPS 18-19 for the period July 1, 2018 – June 30, 2019 follows the form prescribed by the DOF and incorporates all of the remaining obligations identified in the previous ROPS. Prepared By:Barbara Leibold, Successor Agency Counsel Attachments: Oversight Board Resolution No. OB-2018-___ Recognized Obligation Payment Schedule of the Successor Agency of the Redevelopment Agency of the City of Lake Elsinore for the period of July 1, 2018 through June 30, 2019 (ROPS 18-19)