TITLE
Recommendation to approve the draft Amended Recognized Obligation Payment Schedule 19-20B, for the period of January 1, 2020 through June 30, 2020. (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 an annual Recognized Obligation Payment Schedule (ROPS) covering the period from July 1, 2019 to June 30, 2020. A successor agency may request an amendment to the annual ROPS once during that year as long as the amended ROPS is submitted to the California Department of Finance (DOF) prior to October 1 and the Oversight Board makes a finding that a revision is necessary for the payment of approved enforceable obligations. The attached draft Amended ROPS 19-20B represents the anticipated additional funding (“Requested Adjustments”) needed to meet the enforceable obligations for the period of January 1, 2020 through June 30, 2020 (Attachment A). Two adjustments are being requested: (1) reinstate the enforceable obligation for Shoreline Gateway Phase 2; and, (2) increase the funding requested for environmental remediation at 5301 Long Beach Boulevard. The Shoreline Gateway Phase 2 Amended and Restated Owner Participation Agreement obligation was mistakenly defunded. The funding request for 5301 Long Beach Boulevard is due to additional work anticipated as a result of the Regional Water Quality Board’s actions.
The Amended ROPS is based on the Enforceable Obligation Payment Schedule, a list of the total outstanding debts and obligations of the Successor Agency, which was certified by the DOF on March 30, 2012.
The Amended ROPS must identify the source of payment for each obligation from among the following:
• The Redevelopment Property Tax Trust Fund (former tax increment, which is also referred to as RPTTF and is maintained by the County)
• Bond Proceeds
• Reserve Balances
• Administrative Cost Allowance
• Other revenue sources including rents, interest earnings, land sale proceeds, and loan repayments
This Amended ROPS also requires approval by the 4th District Consolidated Oversight Board of the City of Long Beach as the Successor Agency to the Redevelopment Agency of the City of Long Beach (Board). It has been scheduled for the Board’s review on September 17, 2019.
This matter was reviewed by Deputy City Attorney Richard F. Anthony on July 29, 2019 and by Budget Analysis Officer Julissa José-Murray on August 6, 2019.
TIMING CONSIDERATIONS
Successor Agency action is requested on August 20, 2019, to allow for the transmittal of the Amended ROPS to the Board for approval on September 17, 2019, and to the DOF prior to their submission deadline of October 1, 2019.
FISCAL IMPACT
The total amount requested for funding is $1,773,643. The amended ROPS requests $33,355 of other revenues and $1,740,288 of RPTTF to fund these obligations. If the full amount of the requested RPTTF is expended, it would decrease the City’s residual revenues by approximately $365,460 over the period the obligation is paid. The obligation is incurred on a reimbursement basis and may not reach the full amount of the obligation. Residual revenues are reflected as part of property tax revenue in the General Fund to support citywide operations. By law, funding ROPS obligations takes precedence over the funding of citywide operations. As the ROPS are paid off, the City’s share of residual revenue is freed up for General Fund purposes. This recommendation has no staffing impact beyond the normal budgeted scope of duties and is consistent with existing City Council priorities. Approval of this recommendation will provide continued support to the local economy.
SUGGESTED ACTION
Approve recommendation.
Respectfully Submitted,
LINDA F. TATUM, FAICP
DIRECTOR OF DEVELOPMENT SERVICES
APPROVED:
PATRICK H. WEST
CITY MANAGER