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REQUEST FOR SUCCESSOR AGENCY ACTION MEETING DATE: AUGUST 20, 2012 TITLE: AB 1484 TRUE UP PROCESS CITY MANAGER RECOMMENDED ACTION Receive and file. DISCUSSION CLERK OF THE COUNCIL USE ONLY: APPROVED ? As Recommended ? As Amended ? Implementing Resolution ? Other CONTINUED TO FILE NUMBER On August 2, 2012, the City of Santa Ana acting as Successor Agency responded to the Orange County Auditor-Controller's Office for a demand for payment in the amount of $1,160,097, and complied with such request, stating our disagreement with the calculation. The Department of Finance (DOF) considers the property tax increment revenues received by the former redevelopment agencies from July 2011 through January 2012 as part of the Redevelopment Property Tax Trust Fund (RPTTF) that can be distributed to various taxing entities. However, the RPTTF did not exist until February 1, 2012; the effective date of AB 1x 26. DOF's calculation does not factor in the possibility that former redevelopment agencies may have needed to utilize the tax increment revenues received during July 2011 through January 2012 to make enforceable obligation payments due during the same period. In addition, the Successor Agency is involved in pending litigation regarding various agreements included on the Recognized Obligation Payment Schedules (ROPS) that DOF has disallowed as enforceable obligations. The Successor Agency is still disputing DOF's decision, but has been unsuccessful in engaging DOF in further dialogue to remedy the problem. Therefore, the amounts approved by DOF on both the January to June 2012 and July to December 2012 ROPS are not reflective of the true obligation amounts for each respective period. If the correct ROPS amounts are used in the AB 1484 "True Up" process calculation, the County would have not needed to demand the return of any prior tax increment revenues from the Successor Agency. 2-1