TITLE
Recommendation to approve the draft Recognized Obligation Payment Schedule 21-22, for the period of July 1, 2021 through June 30, 2022. (Citywide)
DISCUSSION
Section 34177(o)(1) of the California Health and Safety Code, as adopted by AB1x 26 (the “Dissolution Act”) and amended by Senate Bill (SB) 107, requires the Successor Agency to the Redevelopment Agency of the City of Long Beach (Successor Agency) to prepare a draft Recognized Obligation Payment Schedule (ROPS) covering the period from July 1, 2021 to June 30, 2022, and for each period from July 1 to June 30 thereafter. Each ROPS must list dates, amounts, and payment sources of the former Redevelopment Agency of the City of Long Beach’s (Agency) enforceable obligations. The attached draft ROPS represents the anticipated enforceable obligations for the period of July 1, 2021 through June 30, 2022 (Attachment A).
The ROPS is based on the Enforceable Obligation Payment Schedule, a list of the total outstanding debts and obligations of the Agency, which was certified by the California Department of Finance (DOF) on March 30, 2012.
The ROPS must identify the source of payment for each obligation from among the following:
• The Redevelopment Property Tax Trust Fund - RPTTF (maintained by the County);
• Bond Proceeds;
• Reserve Balances;
• Administrative Cost Allowance; and,
• Other revenue sources including rents and interest earnings.
This ROPS also requires approval by the Oversight Board to the Successor Agency and will be agendized for its review on January 26, 2021. In accordance with SB 107, each annual ROPS must be submitted to the DOF for review and certification no later than February 1, 2021, and each February 1 thereafter.
Upon certification, the DOF will transmit a copy of the ROPS to the Los Angeles County
Auditor-Controller (Auditor-Controller). Prior to July 1, 2021, the Auditor-Controller will
distribute property tax revenue to the Successor Agency from the RPTTF for approved
payments listed on the ROPS. This distribution will be from property taxes the Auditor- Controller received from former Long Beach redevelopment project areas from January 1, 2021 through April 30, 2021. Another distribution is anticipated on January 1, 2022, from property taxes collected from May 1, 2021 through December 31, 2021.
The ROPS includes the current debt service amount due for the Series 2010 Bonds (2010 bonds). Staff anticipate that the 2010 bonds will be refunded prior to DOF approval of the 2021-2022 ROPS by April 1, 2021. Staff will work closely with the DOF to ensure that the 2021-2022 ROPS is updated to reflect the debt service payments due on the refunding bonds, in lieu of the debt services on the Series 2010 Bonds, during the 2021-2022 ROPS period.
Additionally, pursuant to Section 34171(b)(3) of the Dissolution Act, the Successor Agency is allowed an administrative allowance, subject to Oversight Board approval. The allowance is capped at 3 percent of the actual property tax allocated to the Successor Agency during the prior ROPS period, less that period’s administrative allowance. The administrative allowance includes items such as salaries, citywide and departmental overhead for Successor Agency and other City staff carrying out the actions necessary to wind down the Successor Agency’s affairs and associated operational costs. The proposed Administrative Budget for the Successor Agency for the period of July 1, 2021 through June 30, 2022 (Attachment B).
This matter was reviewed by Deputy City Attorney Richard F. Anthony and Budget Analysis Officer Julissa José-Murray on December 18, 2020.
TIMING CONSIDERATIONS
Successor Agency action is requested on January 19, 2021, to allow for the transmittal of the ROPS to the Oversight Board for approval on January 26, 2021, and to the DOF prior to the February 1, 2021 deadline for submission.
FISCAL IMPACT
The Proposed Administrative Budget from July 1, 2021 through June 30, 2022 is approximately $627,135, or 3 percent of $20,904,512, which represents RPTTF funds remitted for the prior ROPS period less the administrative allowance and City loan repayments made during that same period. The final loan repayment was made during the ROPS 2019-2020 period.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
OSCAR W. ORCI
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
THOMAS B. MODICA
CITY MANAGER