SA Item 3 - Resolution for the Recognized Obligation Payment Schedule (ROPS)

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Recognized Obligation Payment Schedule FY 2025-2026 January 21, 2025 Page 2 4 7 7 6 Effective July 1, 2018, the local Oversight Board to the Successor Agency was dissolved and the new Orange Countywide Oversight Board (OCOB) was established. The OCOB now has oversight with respect to the Dissolution process, including review and approval of the ROPS. The ROPS includes the administrative cost allowance as required under Health and Safety Code Section 34177 (j) through (k), and is presented in the format designed by the Department of Finance (DOF). Upon Successor Agency approval, the ROPS will be submitted to the Orange Countywide Oversight Board for approval at its January 28, 2025 meeting. Upon OCOB approval, the ROPS will be submitted to the DOF, County, and other appropriate entities as required by the Dissolution Act by the February 1, 2025 deadline. The ROPS will also post on the Successor Agency’s website. FISCAL IMPACT The Successor Agency is limited to making only payments listed on the approved ROPS for each annual period. Administrative expenses are capped at three percent (3%) of the actual property tax distributed for the ROPS in the preceding fiscal year or the minimum of $250,000 per year. However, the OCOB continues to request that successor agencies reduce and minimize the administrative allowance necessary to oversee the remaining obligations on the ROPS. Therefore, the Successor Agency estimates the administrative cost allowance for FY 2025-2026 will be $110,640. Funds will be budgeted for FY 2025-2026 in the Redevelopment Obligation Retirement Funds (account no. 67118021-various, 67018843-various) upon approval of the ROPS by DOF. EXHIBIT(S) 1. Resolution a. Recognized Obligation Payment Schedule FY 2025-2026 Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Alvaro Nuñez, City Manager