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Home My WebLink AboutItem SA 03 - Recognized Obligation Payment Schedule Fiscal Year (FY) 2024-2025 Community Development Agency www.santa-ana.org/community-developement Item # 3 City of Santa Ana 20 Civic Center Plaza, Santa Ana, CA 92701 Staff Report January 16, 2024 TOPIC: Recognized Obligation Payment Schedule (ROPS) Fiscal Year (FY) 2024-2025 AGENDA TITLE Recognized Obligation Payment Schedule (ROPS) for the Period of July 1, 2024 Through June 30, 2025 RECOMMENDED ACTION Adopt a resolution approving the Recognized Obligation Payment Schedule for the period of July 1, 2024 through June 30, 2025 pursuant to Part 1.85 of Division 24 of the California Health & Safety Code. SUCCESSOR AGENCY RESOLUTION NO. 2024-XXX entitled A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE 24-25 FOR THE PERIOD OF JULY 1, 2024 TO JUNE 30, 2025 PURSUANT TO HEALTH AND SAFETY CODE SECTION 24177(o), AND PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE (“DISSOLUTION ACT”) GOVERNMENT CODE §84308 APPLIES: Yes DISCUSSION In 1973, the City of Santa Ana adopted an ordinance to create a Redevelopment Agency. Throughout the years, the Redevelopment Agency completed numerous projects to eliminate blight, spur economic growth, funded construction of affordable housing projects, and provided infrastructure and community facility improvements within the defined project areas. Pursuant to Part 1.85 of Division 24 of the California Health and Safety Code (“Dissolution Act”), the City Council on January 9, 2012, elected for the City to act as the “Successor Agency” to the dissolved Community Redevelopment Agency (“Agency”). On February 1, 2012, in accordance with the Dissolution Act and the California Supreme Court’s decision in California Redevelopment Association v. Matosantos, Case No. S194861, the Agency was dissolved and the City began to serve as the “Successor Agency.” The City Council serves as the governing body of the Successor Agency under the Dissolution Act as amended by AB 1484, AB 471, and SB Recognized Obligation Payment Schedule Fiscal Year (FY) 2024-2025 January 16, 2024 Page 2 3 9 4 6 107, to administer the enforceable obligations of the Agency and otherwise unwind the Agency’s affairs. 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 23, 2024 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, 2024 deadline. The ROPS will also posted 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 has been requesting 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 2024-2025 will be $116,260 based upon the expected actual cost of administering the Successor Agency. Funds will be budgeted for FY 2024-2025 in the Redevelopment Obligation Retirement Funds (account no. 67118021-various, 67018843-various) upon approval of the ROPS by the DOF. EXHIBIT(S) 1. Resolution A. Recognized Obligation Payment Schedule FY 2024-2025 Submitted By: Michael L. Garcia, Executive Director of Community Development Approved By: Tom Hatch, Interim City Manager SUCCESSOR AGENCY RESOLUTION NO. 2024- A RESOLUTION OF THE SUCCESSOR AGENCY TO THE FORMER COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF SANTA ANA APPROVING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE 24-25 FOR THE PERIOD OF JULY 1, 2024 TO JUNE 30, 2025 PURSUANT TO HEALTH AND SAFETY CODE SECTION 34177(o), AND PART 1.85 OF DIVISION 24 OF THE CALIFORNIA HEALTH AND SAFETY CODE (“DISSOLUTION ACT”) BE IT RESOLVED BY THE MEMBERS OF THE SUCCESSOR AGENCY OF THE CITY OF SANTA ANA, AS FOLLOWS: Section 1. The City Council of Santa Ana, acting as Successor Agency, conclusively finds, determines and declares as follows: A.On January 9, 2012, pursuant to section 34173 of the California Health & Safety Code, the City of Santa Ana (“City”) elected to serve as the Successor Agency for the dissolved Community Redevelopment Agency (“Agency”) of the City of Santa Ana and selected the Housing Authority of the City of Santa Ana to act as “Successor Housing Agency.” B.The City Council serves as the governing body of the Successor Agency under the Dissolution Act, as amended by AB 1484, AB 471, and SB 107, to administer the enforceable obligations of the Agency and otherwise unwind the Agency’s affairs. C.SB 107 revised the timeline for the preparation of the required Recognized Obligation Payment Schedule (“ROPS”) from each six-month period to a one-year period beginning July 1, 2016. D.The annual ROPS includes the administrative cost allowance as required under Health and Safety Code Section 34177 (j) through (k). E.The annual ROPS for the July 1, 2024 through June 30, 2025 period must be approved by the Countywide Oversight Board and submitted to the County Auditor- Controller, State Controller’s Office, and to the State Department of Finance (“DOF”) no later than February 1, 2024. Section 2. The Successor Agency approves the Recognized Obligation Payment Schedule 24-25, attached hereto as Exhibit A and incorporated herein by this reference, and authorizes the submission to the County of Orange and Countywide Oversight Board for review and approval. Section 3. Pursuant to the Dissolution Act, the Successor Agency further authorizes the transmittal of the ROPS 24-25, upon subsequent Countywide Oversight Board approval, to DOF Resolution No. 2024- Page 1 of 3 EXHIBIT 1 with copies to the County Administrative Officer, the County Auditor-Controller, and the State Controller’s Office. Section 4. The City Manager, or his/her designee (“City Manager”), is directed to post on the City’s website the ROPS 24-25 in the manner required by law. Section 5. The City Manager and/or the Executive Director of Community Development, or their respective designees, as delegated officials of the City acting as Successor Agency, are authorized to make or accept any augmentation, modification, additions, or revisions to the ROPS as may be necessary and appropriate in their reasonable discretion, based on review or communications from the Countywide Oversight Board, the State Department of Finance or County of Orange. Section 6. This Resolution shall take effect immediately upon its adoption by the Successor Agency, and the Clerk of the Council shall attest to and certify the vote adopting of this Resolution. ADOPTED this day of , 2024. Valerie Amezcua Mayor APPROVED AS TO FORM: Sonia R. Carvalho, City Attorney By: Andrea Garcia-Miller Assistant City Attorney AYES: Councilmembers: NOES: Councilmembers: ABSTAIN: Councilmembers: NOT PRESENT: Councilmembers: Resolution No. 2024- Page 2 of 3 EXHIBIT 1 CERTIFICATION OF ATTESTATION AND ORIGINALITY I, , Clerk of the Council do hereby attest to and certify the attached Resolution No. 2024-XX to be the original resolution adopted by the City Council acting as the Successor Agency to the former Community Redevelopment Agency on January , 2024. Date: City Clerk City of Santa Ana Resolution No. 2024- Page 3 of 3 EXHIBIT 1 Successor Agency:Santa Ana County:Orange 24-25A Total (July - December) 24-25B Total (January - June) ROPS 24-25 Total A 113,236$ 113,236$ 226,472$ B - - - C - - - D 113,236 113,236 226,472 E 11,176,422$ 814,014$ 11,990,436$ F 11,118,292 755,884 11,874,176 G 58,130 58,130 116,260 H Current Period Enforceable Obligations (A+E):11,289,658$ 927,250$ 12,216,908$ Name Title /s/ Signature Date Redevelopment Property Tax Trust Fund (RPTTF) (F+G): Recognized Obligation Payment Schedule (ROPS 24-25) - Summary Filed for the July 1, 2024 through June 30, 2025 Period Enforceable Obligations Funded as Follows (B+C+D): Bond Proceeds Reserve Balance Other Funds Current Period Requested Funding for Enforceable Obligations (ROPS Detail) RPTTF Administrative RPTTF 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. Exhibit A EXHIBIT 1 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 RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF $ 60,860,039 $ 12,216,908 $ 0 $ 0 $ 113,236 $ 11,118,292 $ 58,130 $ 11,289,658 $ 0 $ 0 $ 113,236 $ 755,884 $ 58,130 $ 927,250 28 DDA - Sycamore Parking Concepts OPA/DDA/Const ruction 12/16/2002 6/30/2029 Sycamore Parking Concepts Development of Sycamore Garage (Pkg Structure) Merged Y $ - $ - $ - 30 Erickson Lease Agreement - Honda Business Incentive Agreements 1/19/2006 6/30/2032 Erickson Prop. Corp. Leasehold Rights on AutoMall Property Merged 792,648 N $ 226,472 113,236 $ 113,236 113,236 $ 113,236 33 Off Site Improvemen ts (Nexus) Improvement/Infr astructure 4/4/2005 6/30/2032 Various Construction of Publicly Owned Improvements - Nexus Merged 5,000,000 N $ - $ - $ - 34 Project Costs for Item #33 Project Management Costs 4/4/2005 6/30/2032 Successor Agency / Various Project Management / Services Merged 123,250 N $ - $ - $ - 35 SA Venture Partnership & Other MainPlace Agreements OPA/DDA/Const ruction 5/15/1984 6/30/2032 Various Permit Fee Obligation for Improvements Merged 1,600,000 N $ - $ - $ - 36 Project Costs for Item #35 Project Management Costs 5/15/1984 6/30/2032 Successor Agency / Various Project Management / Services Merged 100,000 N $ - $ - $ - 37 DDA - Discovery Science Center OPA/DDA/Const ruction 4/21/1997 6/30/2032 City of Santa Ana Permit Fee Obligation for Expansion Merged 199,000 N $ - $ - $ - 62 Audited Financial Statements / Due Diligence Reviews Professional Services 5/14/2003 6/30/2032 MGO / City of Santa Ana / Various Required Per Bond Documents / AB 1484 Merged 40,000 N $ 5,000 5,000 $ 5,000 $ - 63 Employee Pension Liability Unfunded Liabilities 2/1/2012 6/30/2032 CalPERS / Successor Agency Public Employee Defined Benefit Pension Plan Merged 118,729 N $ - $ - $ - 64 Other Postemploy ment Benefits (OPEB) Unfunded Liabilities 2/1/2012 6/30/2032 Successor Agency / Various OPEB Liability for Successor Agency Staff Merged 182,872 N $ - $ - $ - 66 Successor Agency Admin. Admin Costs 2/1/2012 6/30/2032 Successor Agency / Various Operating costs Merged 760,000 N $ 116,260 58,130 $ 58,130 58,130 $ 58,130 160 2018 Tax Allocation Bonds Series A Bonds Issued After 12/31/10 11/8/2018 9/1/2031 Bank of New York Mellon Debt service on bonds to refund 2003 Bonds and 2011 Bonds Merged 10,146,375 N $ 1,271,375 1,084,125 $ 1,084,125 187,250 $ 187,250 161 2018 Tax Allocation Bonds Series A- Indenture of Trust Fees 11/8/2018 6/30/2032 Keyser Marston Associates / Urban Futures Continuing disclosure Merged 13,950 N $ 1,550 $ - 1,550 $ 1,550 162 2018 Tax Allocation Bonds Series A- Indenture of Trust Fees 11/8/2018 6/30/2032 BLX Arbitrage rebate analysis Merged 13,500 N $ 1,500 1,500 $ 1,500 $ - 24-25B (January - June) 24-25B Total Fund Sources Fund Sources Santa Ana Recognized Obligation Payment Schedule (ROPS 24-25) - ROPS Detail July 1, 2024 through June 30, 2025 (Report Amounts in Whole Dollars) Item # Project Name/Debt Obligation Obligation Type Contract/ Agreement Execution Date Contract/ Agreement Termination Date Payee Description/Project Scope Project Area Total Outstanding Debt or Obligation Retired ROPS 24-25 Total 24-25A (July - December) 24-25A Total EXHIBIT 1 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 RPTTF Admin RPTTF Bond Proceeds Reserve Balance Other Funds RPTTF Admin RPTTF 24-25B (January - June) 24-25B Total Fund Sources Fund Sources Item # Project Name/Debt Obligation Obligation Type Contract/ Agreement Execution Date Contract/ Agreement Termination Date Payee Description/Project Scope Project Area Total Outstanding Debt or Obligation Retired ROPS 24-25 Total 24-25A (July - December) 24-25A Total 163 2018 Tax Allocation Bonds Series A- Indenture of Trust Fees 11/8/2018 6/30/2032 Bank of NY Mellon Trustee fees Merged 14,400 N $ 1,800 1,800 $ 1,800 $ - 164 2018 Tax Allocation Bonds Series B Bonds Issued After 12/31/10 11/8/2018 9/1/2028 Bank of New York Mellon Debt service on bonds to refund 2003 Bonds and 2011 Bonds Merged 41,728,815 N $ 10,589,151 10,022,567 $ 10,022,567 566,584 $ 566,584 165 2018 Tax Allocation Bonds Series B- Indenture of Trust Fees 11/8/2018 6/30/2029 Keyser Marston Associates / Urban Futures Continuing disclosure Merged 4,000 N $ 500 $ - 500 $ 500 166 2018 Tax Allocation Bonds Series B- Indenture of Trust Fees 11/8/2018 6/30/2029 BLX Arbitrage rebate analysis Merged 13,500 N $ 1,500 1,500 $ 1,500 $ - 167 2018 Tax Allocation Bonds Series B- Indenture of Trust Fees 11/8/2018 6/30/2029 Bank of NY Mellon Trustee fees Merged 9,000 N $ 1,800 1,800 $ 1,800 $ - EXHIBIT 1 Item #Notes/Comments 28 Item has been completed. 30 33 34 35 36 37 62 63 64 66 119 129 160 161 162 163 164 165 166 167 Santa Ana Recognized Obligation Payment Schedule (ROPS 24-25) - Notes July 1, 2024 through June 30, 2025 EXHIBIT 1 A B C D E F G H Reserve Balance Other Funds RPTTF Bonds issued on or before 12/31/10 Bonds issued on or after 01/01/11 Prior ROPS RPTTF and Reserve Balances retained for future period(s) Rent, Grants, Interest, etc. Non-Admin and Admin 1 Beginning Available Cash Balance (Actual 07/01/21) RPTTF amount should exclude "A" period distribution amount 1,404 0 44,884 1,394,978 The prior report did not include an adjustment for Other Funds. The beginning balance was adjusted to reconcile to the cash balance as of June 30, 2021. 2 Revenue/Income (Actual 06/30/22) RPTTF amount should tie to the ROPS 21-22 total distribution from the County Auditor-Controller - 250,826 5,224,307 3 Expenditures for ROPS 21-22 Enforceable Obligations (Actual 06/30/22) 226,471 6,743,444 4 Retention of Available Cash Balance (Actual 06/30/22) RPTTF amount retained should only include the amounts distributed as reserve for future period(s) 1,404 5 ROPS 21-22 RPTTF Prior Period Adjustment RPTTF amount should tie to the Agency's ROPS 21-22 PPA form submitted to the CAC 85,472 6 Ending Actual Available Cash Balance (06/30/22) C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5) 0$ 0$ 0$ 69,239$ (209,631)$ Notified DOF of negative balance and will analyze balance. No entry required Santa Ana Recognized Obligation Payment Schedule (ROPS 24-25) - Report of Cash Balances July 1, 2021 through June 30, 2022 (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. ROPS 21-22 Cash Balances (07/01/21 - 06/30/22) Fund Sources Comments Bond Proceeds EXHIBIT 1