CC 2019-01-08_08g Successor Agency_Admin Budget and ROPS
MEMORANDUM
TO: BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE
DISSOLVED ARROYO GRANDE REDEVELOPMENT AGENCY
BY: NICOLE VALENTINE, INTERIM DIRECTOR OF ADMINISTRATIVE
SERVICES
SUBJECT: CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING
THE ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2019-20 AND
ADOPTION OF A RESOLUTION APPROVING THE RECOGNIZED
OBLIGATION PAYMENT SCHEDULE (“ROPS”) FOR FISCAL YEAR
2019-20
DATE: JANUARY 8, 2019
SUMMARY OF ACTION:
Adoption of the Resolutions will allow the Administrative Budget and Recognized
Obligation Payment Schedule (ROPS) for Fiscal Year 2019-20 to be forwarded to the
County Oversight Board for approval.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Approval of the Administrative Budget allows the Successor Agency to receive
reimbursement for its administrative costs in the amount of $30,000. The preparation and
submittal of ROPS 2019-2020 is for the purpose of allowing the Successor Agency to pay
its enforceable payment obligations for the period from July 1, 2019 through June 30,
2020.
RECOMMENDATION:
It is recommended that the Board of Directors of the Successor Agency to the Dissolved
Arroyo Grande Redevelopment Agency: 1) adopt a Resolution approving the
Administrative Budget for the period July 1, 2019 through June 30, 2020; and 2) adopt a
Resolution approving an Annual Recognized Obligation Payment Schedule (“ROPS”) for
the fiscal period from July 1, 2019 through June 30, 2020, pursuant to Health and Safety
Code Section 34177 and taking certain related actions.
BACKGROUND:
The Department of Finance requires that by February 1, 2019, Successor Agencies must
provide the Department of Finance with Recognized Obligation Payment Schedules
(“ROPS”) covering the period of July 1, 2019 through June 30, 2020. The ROPS must
first be approved by the County Oversight Board. The Department of Finance will then
have forty-five days to review the ROPS, and to object to any items that do not meet the
definition of an Enforceable Obligation.
Item 8.g. - Page 1
SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE REDEVELOPMENT
AGENCY
CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING THE ADMINISTRATIVE
BUDGET FOR THE FISCAL YEAR 2019-20 AND ADOPTION OF A RESOLUTION APPROVING
THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE FISCAL YEAR
2019-20
JANUARY 8, 2019
PAGE 2
Previously, the annual ROPS were reviewed and approved by Arroyo Grande’s Oversight
Board; however, pursuant to Health & Safety Code Section 34179(j), commencing July
1, 2018, all Oversight Boards in the County of San Luis Obispo have been replaced by
one Countywide Oversight Board managed by the County.
ANALYSIS OF ISSUES:
At this time, the Successor Agency is being asked to approve the Administrative Budget
for the period July 1, 2019 through June 30, 2020 and to approve the annual ROPS for
submittal to the County Oversight Board.
Below is an explanation of each of the debt items listed on the July 1, 2019 through June
30, 2020 ROPS:
1. 2018 Tax Allocation Bonds – The 2007 Bonds were refinanced in 2018 for a debt
service savings of $1,179,681 net of all costs of issuance. The 2018 Bonds in the
amount of $5,305,000 were issued to repay funds that had been borrowed from
internal funds for start-up costs for the Redevelopment Agency and to fund new
economic development and affordable housing projects. This is a 30-year debt and
the last payment is due on September 1, 2037.
2. Administrative Costs – Per ABX1 26, the Successor Agency is eligible to receive
an “administrative cost allowance” for reimbursement of the Successor Agency’s
administrative costs. The amount of $30,000 is the estimated amount needed for
the next fiscal year of reimbursable administrative costs. Staff has included the
Administrative budget for Oversight Board approval.
3. 2018 Tax Allocation Bond Fees – This is the fiscal agent fee of $2,000 per year
that is charged by Wells Fargo Bank.
ALTERNATIVES:
The following alternatives are provided for the Board’s consideration:
1. Proceed with the adoption of the Resolution approving the Administrative Budget and
the Resolution approving the ROPS for the period July 1, 2019 through June 30, 2020
for submittal to the County Oversight Board;
2. Do not proceed with the adoption of the Resolution approving the Administrative
Budget or the Resolution approving the ROPS for the period July 1, 2019 through
June 30, 2020; or
3. Provide other direction to staff
Item 8.g. - Page 2
SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE REDEVELOPMENT
AGENCY
CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING THE ADMINISTRATIVE
BUDGET FOR THE FISCAL YEAR 2019-20 AND ADOPTION OF A RESOLUTION APPROVING
THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE (ROPS) FOR THE FISCAL YEAR
2019-20
JANUARY 8, 2019
PAGE 3
ADVANTAGES:
Approving the Administrative Budget and the ROPS will allow the documents to be
forwarded to the County Oversight Board for approval.
DISADVANTAGES:
No disadvantages have been identified.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2.
Item 8.g. - Page 3
RESOLUTION NO. SA-2019-XXX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE
REDEVELOPMENT AGENCY APPROVING THE ADMINISTRATIVE
BUDGET FOR FISCAL YEAR 2019-20
WHEREAS, Health and Safety Code Section 34177 prescribes the duties of successor
agencies; and
WHEREAS, pursuant to Subsection 34177(j), the Successor Agency must prepare a
proposed Administrative Budget and submit it to the County Oversight Board for approval;
and
WHEREAS, the Administrative Budget for the period of July 1, 2019 through June 30,
2020, has been presented to the Successor Agency for its consideration at a regular
meeting of the Successor Agency held on January 8, 2019.
NOW, THEREFORE, BE IT RESOLVED that the Successor Agency to the Dissolved
Arroyo Grande Redevelopment Agency resolves as follows:
1. The forgoing recitals are incorporated herein and made a part hereof.
2. The Administrative Budget for the period July 1, 2019 through June 30, 2020, as
set forth in “Exhibit A” attached hereto and by this reference incorporated herein,
is hereby approved and adopted.
On motion of Board Member , seconded by Board Member , and
on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this day of 2019.
Item 8.g. - Page 4
RESOLUTION NO. SA-2019-XXX
PAGE 2
_________________________________
CAREN RAY RUSSOM, CHAIR
ATTEST:
_________________________________
KELLY WETMORE, SECRETARY
APPROVED AS TO FORM:
_________________________________
HEATHER WHITHAM, GENERAL COUNSEL
Item 8.g. - Page 5
SUCCESSOR AGENCY to the DISSOLVED
ARROYO GRANDE REDEVELOPMENT AGENCY
ADMINISTRATIVE BUDGET
for the Period July 1, 2019 through June 30, 2020
Salaries and Benefits 15,000$
City Manager, Finance personnel, City Clerk
Professional Services
Audit, Legal, Financial 10,000$
Overhead Costs
Successor Agency Board, Other 5,000$
Total Administrative Allocation 30,000$
EXHIBIT A
Item 8.g. - Page 6
RESOLUTION NO. SA-2019-XXX
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE
SUCCESSOR AGENCY TO THE DISSOLVED ARROYO GRANDE
REDEVELOPMENT AGENCY APPROVING THE RECOGNIZED
OBLIGATION PAYMENT SCHEDULE (ROPS) FOR FISCAL YEAR
2019-20
WHEREAS, pursuant to Health and Safety Code Section 34177(o), the Successor
Agency to the Dissolved Arroyo Grande Redevelopment Agency (the “Successor
Agency”) must prepare a proposed Recognized Obligation Payment Schedule (“ROPS”)
before each annual fiscal period (commencing July 1) and submit each proposed ROPS
to the Oversight Board for the Successor Agency for approval; and
WHEREAS, the Successor Agency shall submit Oversight Board- approved ROPS to the
Department of Finance and the to the County Auditor-Controller no later than February
first of each year.
NOW, THEREFORE, BE IT RESOLVED that the Board of Directors of the Successor
Agency to the Dissolved Arroyo Grande Redevelopment Agency hereby finds, determines
and orders as follows:
1. The forgoing recitals are incorporated herein and made a part hereof.
2. The Recognized Obligation Payment Schedule (“ROPS”) for the period July 1,
2019 through June 30, 2020, as set forth in “Exhibit A” attached hereto and by this
reference incorporated herein, is hereby approved and adopted.
3. The Board has authorized and directs Successor Agency staff to submit a copy of
the ROPS to the County Oversight Board for approval.
4. Successor Agency staff shall submit Oversight Board approved ROPS to the
Department of Finance and to the County Auditor-Controller no later than February
1, 2019.
5. Staff is hereby authorized and directed to post a copy of the Oversight Board-
approved ROPS on the Successor Agency’s internet website.
6. The staff of the Successor Agency is hereby authorized and directed to do any and
all things that they may deem necessary or advisable to effectuate this Resolution,
including requesting additional review by the Department of Finance and an
opportunity to meet and confer on any disputed items.
On motion of Board Member , seconded by Board Member , and
on the following roll call vote, to wit:
AYES:
NOES:
ABSENT:
The foregoing Resolution was passed and adopted this day of 2019.
Item 8.g. - Page 7
RESOLUTION NO. SA-2019-XXX
PAGE 2
_________________________________
CAREN RAY RUSSOM, CHAIR
ATTEST:
_________________________________
KELLY WETMORE, SECRETARY
APPROVED AS TO FORM:
_________________________________
HEATHER WHITHAM, GENERAL COUNSEL
Item 8.g. - Page 8
Successor Agency:Arroyo Grande
County:San Luis Obispo
Current Period Requested Funding for Enforceable Obligations (ROPS Detail)
19-20A Total
(July - December)
19-20B Total
(January - June) ROPS 19-20 Total
A -$ -$ -$
B - - -
C - - -
D - - -
E 303,875$ 210,636$ 514,511$
F 288,875 195,636 484,511
G 15,000 15,000 30,000
H Current Period Enforceable Obligations (A+E):303,875$ 210,636$ 514,511$
Name Title
/s/
Signature Date
Recognized Obligation Payment Schedule (ROPS 19-20) - Summary
Filed for the July 1, 2019 through June 30, 2020 Period
Enforceable Obligations Funded as Follows (B+C+D):
RPTTF
Redevelopment Property Tax Trust Fund (RPTTF) (F+G):
Bond Proceeds
Reserve Balance
Other Funds
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
Item 8.g. - Page 9
A B C D E F G H I J K L M N O P Q
Bond
Proceeds
Reserve
Balance Other Funds RPTTF
Admin
RPTTF
$ 7,960,669 $ 514,511 $ 0 $ 0 $ 0 $ 288,875 $ 15,000 $ 303,875
1 2007 Tax Allocation
Bonds
Bonds Issued On or
Before 12/31/10
5/8/2007 9/1/2037 Wells Fargo Bank Repay existing debt and fund
new development
1 0 Y $ - $ -
3 2007 Tax Allocation
Bond fees
Fees 5/8/2007 9/1/2037 Wells Fargo Bank Fiscal Agent fees for 2007
Tax Allocation bonds
1 0 Y $ - $ -
8 Administrative costs Admin Costs 2/1/2012 9/1/2037 Various (City of Arroyo
Grande, Rutan and
Tucker, Moss, Levy &
Hartzheim CPA's, Carmel
and Nacassha, etc..)
Legal, operating, audit,
insurance, and staffing costs
1 570,000 N $ 30,000 15,000 $ 15,000
9 City In-Lieu Affordable
Housing Loan
City/County Loan (Prior
06/28/11), Cash
exchange
7/25/2006 7/25/2106 City of Arroyo Grande Repayment of loan 1 0 N $ - $ -
10 Funding Agreement w
HASLO
OPA/DDA/Construction 2/11/2014 2/11/2069 Housing Authority of the
City of San Luis Obispo
Transitional/Low-Income
Housing at 224 S Halcyon Rd
1 0 N $ - $ -
11 2018 Tax Allocation
Bonds
Refunding Bonds
Issued After 6/27/12
6/27/2018 9/1/2037 Wells Fargo Bank Bonds issued to refund the
2007 Bonds
1 7,255,169 N $ 385,011 288,875 $ 288,875
12 2018 Tax Allocation
Bonds
Fees 6/27/2018 9/1/2037 Wells Fargo Bank Annual Trustee Fees 1 38,000 N $ 2,000 $ -
13 2018 Tax Allocation
Bonds
Reserves 6/27/2018 9/1/2037 Wells Fargo Bank Reserve request to satisfy
Indenture
97,500 N $ 97,500 $ -
Contract/Agreement
Termination Date
ROPS 19-20
Total
19-20A
Total
Arroyo Grande Recognized Obligation Payment Schedule (ROPS 19-20) - ROPS Detail
July 1, 2019 through June 30, 2020
(Report Amounts in Whole Dollars)
Item
#Payee Description/Project Scope
Project
Area
Total
Outstanding
Debt or
Obligation Retired
19-20A (July - December)
Project Name/Debt
Obligation Obligation Type
Contract/Agreement
Execution Date
Fund Sources
Item 8.g. - Page 10
A B C D E F G H I J K
$ 7,960,669 $ 514,511
1 2007 Tax Allocation
Bonds
Bonds Issued On or
Before 12/31/10
5/8/2007 9/1/2037 Wells Fargo Bank Repay existing debt and fund
new development
1 0 Y $ -
3 2007 Tax Allocation
Bond fees
Fees 5/8/2007 9/1/2037 Wells Fargo Bank Fiscal Agent fees for 2007
Tax Allocation bonds
1 0 Y $ -
8 Administrative costs Admin Costs 2/1/2012 9/1/2037 Various (City of Arroyo
Grande, Rutan and
Tucker, Moss, Levy &
Hartzheim CPA's, Carmel
and Nacassha, etc..)
Legal, operating, audit,
insurance, and staffing costs
1 570,000 N $ 30,000
9 City In-Lieu Affordable
Housing Loan
City/County Loan (Prior
06/28/11), Cash
exchange
7/25/2006 7/25/2106 City of Arroyo Grande Repayment of loan 1 0 N $ -
10 Funding Agreement w
HASLO
OPA/DDA/Construction 2/11/2014 2/11/2069 Housing Authority of the
City of San Luis Obispo
Transitional/Low-Income
Housing at 224 S Halcyon Rd
1 0 N $ -
11 2018 Tax Allocation
Bonds
Refunding Bonds
Issued After 6/27/12
6/27/2018 9/1/2037 Wells Fargo Bank Bonds issued to refund the
2007 Bonds
1 7,255,169 N $ 385,011
12 2018 Tax Allocation
Bonds
Fees 6/27/2018 9/1/2037 Wells Fargo Bank Annual Trustee Fees 1 38,000 N $ 2,000
13 2018 Tax Allocation
Bonds
Reserves 6/27/2018 9/1/2037 Wells Fargo Bank Reserve request to satisfy
Indenture
97,500 N $ 97,500
Contract/Agreement
Termination Date
ROPS 19-20
Total
Arroyo Grande Recognized Obligation Payment Schedule (ROPS 19
July 1, 2019 through June 30, 2020
(Report Amounts in Whole Dollars)
Item
#Payee Description/Project Scope
Project
Area
Total
Outstanding
Debt or
Obligation Retired
Project Name/Debt
Obligation Obligation Type
Contract/Agreement
Execution Date
R S T U V W
Bond
Proceeds
Reserve
Balance
Other
Funds RPTTF
Admin
RPTTF
$ 0 $ 0 $ 0 $ 195,636 $ 15,000 $ 210,636
$ -
$ -
15,000 $ 15,000
$ -
$ -
96,136 $ 96,136
2,000 $ 2,000
97,500 $ 97,500
19-20B (January - June)
19-20B
Total
Fund Sources
Item 8.g. - Page 11
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 07/01/16)
RPTTF amount should exclude "A" period distribution amount
458,101 0 C-1 is Reserve Fund held by Bond Trustee bank
2 Revenue/Income (Actual 06/30/17)
RPTTF amount should tie to the ROPS 16-17 total distribution from the
County Auditor-Controller
658,294
3 Expenditures for ROPS 16-17 Enforceable Obligations
(Actual 06/30/17)
658,294
4 Retention of Available Cash Balance (Actual 06/30/17)
RPTTF amount retained should only include the amounts distributed as
reserve for future period(s)
5 ROPS 16-17 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 16-17 PPA form
submitted to the CAC
6 Ending Actual Available Cash Balance (06/30/17)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
458,101$ 0$ 0$ 0$ 0$ C-6 is Reserve Fund held by Bond Trustee bank
No entry required
Arroyo Grande Recognized Obligation Payment Schedule (ROPS 19-20) - Report of Cash Balances
July 1, 2016 through June 30, 2017
(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.
Fund Sources
Comments
Bond Proceeds
ROPS 16-17 Cash Balances
(07/01/16 - 06/30/17)
Item 8.g. - Page 12
Item #Notes/Comments
13 Reserve request for 1/2 of bond principal payment due 9/1/2020, pursuant to Section 5.01(h) of the Trust Indenture for the 2018 Bonds.
Arroyo Grande Recognized Obligation Payment Schedule (ROPS 19-20) - Notes July 1, 2019 through June 30, 2020
Item 8.g. - Page 13
THIS PAGE INTENTIONALLY LEFT BLANK
Item 8.g. - Page 14