TITLE
Recommendation to adopt resolution approving the decision of the City of Long Beach as the Successor Agency to the Redevelopment Agency of the City of Long Beach, to approve the draft Recognized Obligation Payment Schedule 13-14B, for the period of January 1, 2014 through June 30, 2014.
DISCUSSION
Section 34177(1)(2)(A) of the California Health and Safety Code, as adopted by AB1x 26 (the "Dissolution Act"), requires the Successor Agency to prepare a draft Recognized Obligation Payment Schedule forward looking to each six-month fiscal period. Each Recognized Obligation Payment Schedule must list dates, amounts and payment sources of the former Redevelopment Agency's enforceable obligations. The attached document represents the anticipated enforceable obligations for the period of January 1 through June 30, 2014 (Exhibit A).
Additionally, pursuant to provisions in Assembly Bill 1484 (AB 1484) as codified in Health and Safety Code 34169, the Recognized Obligation Payment Schedule also includes the following information for each enforceable obligation: (1) Contract/Agreement execution date, and (2) Contract/Agreement termination date. Although not required by Section 34169, the total outstanding debt or obligation of each obligation has also been included, per the recommendation of the Department of Finance. These entries assist in tracking the remaining obligation amounts through project completion.
Per Health and Safety Code Section 34186 (a), the difference between actual and estimated obligations from the Recognized Obligation Payment Schedule for the period of January 1 through June 30, 2013 must also be reported. The difference between Redevelopment Property Tax Trust Fund (RPTTF) actual payments made and estimated obligation amount will be used to adjust the RPTTF distribution on January 2,2014. This reconciliation is included as Pages 8 and 9 of Exhibit A.
Upon the Oversight Board's approval, the January 1 through June 30, 2014 Recognized Obligation Payment Schedule will be transmitted to the California Department of Finance for review and certification no later than October 1, 2013. Pursuant to AB 1484, the Recognized Obligation Payment Schedule must be transmitted no later than 90 days prior to the January 2,2014 property tax distribution date.
The California Department of Finance will forward the Recognized Obligation Payment Schedule to the los Angeles County Auditor-Controller upon its certification. On January 2, 2014, the County Auditor-Controller will distribute property tax revenue to the Successor Agency from the RPTTF for approved payments listed on the certified Recognized Obligation Payment Schedule. This distribution will be made from property taxes the County Auditor-Controller received from the former Long Beach Redevelopment Project Areas for the period of May 1 through December 31, 2013.
Additionally, pursuant to Section 341770) of the Dissolution Act, the Successor Agency is allowed an administrative allowance subject to Oversight Board approval. The allowance is capped at three percent of the property tax allotted to the Successor Agency for the period of January 1 through June 30, 2014. While the Administrative Budget is included in the Recognized Obligation Payment Schedule, it is also presented as a stand-alone document for the purposes of County Auditor-Controller certification (Exhibit B).
The administrative cost allowance includes items such as salaries, including citywide and departmental overhead costs for Successor Agency and other City staff carrying out the necessary actions to wind down the former Redevelopment Agency's affairs; preparation of the Recognized Obligation Payment Schedule and Administrative Budgets; and operational costs associated with these actions (Exhibit C).
This matter was approved by the Successor Agency to the Redevelopment Agency of the City of Long Beach on September 17, 2013.
SUGGESTED ACTION
Approve recommendation.
BODY
A RESOLUTION OF THE OVERSIGHT BOARD OF THE CITY OF LONG BEACH AS THE SUCCESSOR AGENCY TO THE REDEVELOPMENT AGENCY OF THE CITY OF LONG BEACH APPROVING THE DECISION OF THE SUCCESSOR AGENCY TO APPROVE THE DRAFT RECOGNIZED OBLIGATION PAYMENT SCHEDULE FOR THE PERIOD OF JANUARY 1, 2014 THROUGH JUNE 30, 2014
Respectfully Submitted,
APPROVED:
PATRICK H. WEST
CITY MANAGER