Report to Successor Agency
Tuesday, January 08, 2019
Consent
SUBJECT:
Title
CONSIDER APPROVAL OF THE SUCCESOR AGENCY RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS 19-20) FOR THE PERIOD OF JULY 1, 2019 TO JUNE 30, 2020 (SUCCESSOR AGENCY)
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I. SUMMARY
Presented for the Carson Successor Agency Board approval is the proposed Recognized Obligation Payment Schedule (ROPS) for Fiscal Year 2019-20 as required by Health and Safety Code § 34180. If approved by the Successor Agency, the ROPS documents will be submitted to the Los Angeles County Second Supervisorial District Consolidated Oversight Board (“Second District Consolidated Oversight Board”) for approval. The Successor Agency is required to submit the Second District Oversight Board-approved ROPS to the State Department of Finance, County Auditor Controller and other required agencies in advance of the February 1, 2019 deadline.
II. RECOMMENDATION
Recommendation
APPROVE the ROPS FY 19-20 and DIRECT staff to submit the ROPS FY19-20 to the Second District Consolidated Oversight Board and required agencies for approval.
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III. ALTERNATIVES
TAKE another action the Successor Agency deems appropriate.
IV. BACKGROUND
With the dissolution of the Carson Redevelopment Agency, the Carson Successor Agency is required to prepare and submit the Oversight Board-approved ROPS and Administrative Budget to the State Department of Finance (DOF) and certain other agencies to receive funding for debt service, enforceable obligation payments, and administrative costs. The newly established County-wide Second District Consolidated Oversight Board will consider ROPS FY 19-20 on January 22, 2019. The deadline for submitting the Oversight Board-approved ROPS FY 19-20 to the Department of Finance (DOF), State Controller’s Office, and Los Angeles County Auditor-Controller is February 1, 2019. The Final FY 19-20 ROPS must also be posted on the City/Successor Agency’s website.
Redevelopment Agency Dissolution, Successor Agency and ROPS Process
On December 28, 2011, in California Redevelopment Agency v. Matosantos case, the California Supreme Court upheld AB1X26, which dissolved redevelopment agencies in California effective February 1, 2012. The successor agency is the entity charged with performance of the redevelopment agency’s “enforceable obligations” (generally speaking, the obligations of the redevelopment agency as of June 28, 2011, when AB 26 was signed by the Governor) and with winding down the redevelopment agency’s affairs (e.g., projects, properties, enforceable obligations, etc.). The Carson Successor Agency is the successor agency to the former Carson Redevelopment Agency.
Pursuant to AB 26, AB 1484, and SB 107, successor agencies are funded based on obligations that are specifically listed on the ROPS, which is required to be approved by the oversight board at a public meeting. Successor agencies must submit a copy of the ROPS to the County Auditor-Controller, the County Administrative Officer, and the State Department of Finance at the same time the successor agencies submit the ROPS to their oversight boards for approval. Furthermore, once a ROPS is approved by the oversight board, the approved ROPS is then submitted to the State Department of Finance, the County Auditor-Controller, and the State Controller’s Office and posted on the successor agency’s Internet website.
The Countywide Oversight Board formed on July 1, 2018 with five districts in Los Angeles County. The Carson Successor Agency is part of the Second District along with six other Successor Agencies. The LA County Commission Services, division of the Executive Office of the Board of Supervisors, provides ongoing administrative support for the Countywide Oversight Board.
V. FISCAL IMPACT
The ROPS is the Successor Agency budget for Fiscal Year 2019-20, and includes all debt obligations, administrative costs, and costs associated with the sale of Successor Agency owned parcels. The Successor Agency is requesting total funding of $39,007,202 of which $15,566,635 would be from Reserve Balance, $20,370,567 from the Redevelopment Property Tax Trust Fund (RPTTF), and $3,100,000 would be from all other sources.
VI. EXHIBITS
1. ROPS 19-20 (pgs. 3-7)
Prepared by: James Nguyen, Project Manager