CC 2020-01-14_08e Adopt Resolution_ROPS and Successor Agency Admin BudgetMEMORANDUM
TO: BOARD OF DIRECTORS OF THE SUCCESSOR AGENCY TO THE
DISSOLVED ARROYO GRANDE REDEVELOPMENT AGENCY
BY: NICOLE VALENTINE, ACCOUNTING MANAGER
SUBJECT: CONSIDERATION OF ADOPTION OF A RESOLUTION APPROVING
THE ADMINISTRATIVE BUDGET FOR FISCAL YEAR 2020-21 AND
ADOPTION OF A RESOLUTION APPROVING THE RECOGNIZED
OBLIGATION PAYMENT SCHEDULE (“ROPS”) FOR FISCAL YEAR
2020-21
DATE: JANUARY 14, 2020
SUMMARY OF ACTION:
Adoption of the Resolutions will allow the Administrative Budget and Recognized
Obligation Payment Schedule (ROPS) for Fiscal Year 2020-21 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 2020-21 is for the purpose of allowing the Successor Agency to pay
its enforceable payment obligations for the period from July 1, 2020 through June 30,
2021.
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, 2020 through June 30, 2021; and 2) adopt a
Resolution approving an Annual Recognized Obligation Payment Schedule (“ROPS”) for
the fiscal period from July 1, 2020 through June 30, 2021, pursuant to Health and Safety
Code Section 34177 and taking certain related actions.
BACKGROUND:
The Department of Finance requires that by February 1, 2020, Successor Agencies must
provide the Department of Finance with Recognized Obligation Payment Schedules
(“ROPS”) covering the period of July 1, 2020 through June 30, 2021. 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.e. - 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 14, 2020
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, 2020 through June 30, 2021 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, 2020 through June
30, 2021 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, 2020 through June 30, 2021
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, 2020 through
June 30, 2021; or
3. Provide other direction to staff
Item 8.e. - 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 14, 2020
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.e. - Page 3
RESOLUTION NO. SA-2020-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 2020-21
WHEREAS, Health and Safety Code Section 34177 prescribes the duties of successor
agencies; and
WHEREAS, pursuant to Health and Safety Code Section 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, 2020 through June 30,
2021, has been presented to the Board of Directors of the Successor Agency for its
consideration at a regular meeting of the Successor Agency held on January 14, 2020.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Successor
Agency to the Dissolved Arroyo Grande Redevelopment Agency as follows:
1. The foregoing recitals are true, correct and incorporated herein and made a part
hereof.
2. The Administrative Budget for the period from July 1, 2020 through June 30, 2021,
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 14th day of January, 2020.
Item 8.e. - Page 4
RESOLUTION NO. SA-2020-XXX
PAGE 2
_________________________________
CAREN RAY RUSSOM, CHAIR
ATTEST:
_________________________________
KELLY WETMORE, SECRETARY
APPROVED AS TO FORM:
_________________________________
TIMOTHY J. CARMEL, GENERAL COUNSEL
Item 8.e. - Page 5
SUCCESSOR AGENCY to the DISSOLVED
ARROYO GRANDE REDEVELOPMENT AGENCY
ADMINISTRATIVE BUDGET
for the Period July 1, 2020 through June 30, 2021
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.e. - Page 6
RESOLUTION NO. SA-2020-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 2020-
21
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 the Oversight Board approved ROPS to
the Department of Finance and to the County Auditor-Controller no later than February
1st 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 foregoing recitals are true, correct and incorporated herein and made a part
hereof.
2. The Recognized Obligation Payment Schedule (“ROPS”) for the period July 1,
2020 through June 30, 2021, 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 the Oversight Board approved ROPS to the
Department of Finance and to the County Auditor-Controller no later than February
1, 2020.
5. Successor Agency staff is hereby authorized and directed to post a copy of the
Oversight Board-approved ROPS on the Successor Agency’s internet website.
6. Successor Agency staff is hereby authorized and directed to do any and all things
deemed necessary or advisable to effectuate implementation of 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 14th day of January 2020.
Item 8.e. - Page 7
RESOLUTION NO. SA-2020-XXX
PAGE 2
_________________________________
CAREN RAY RUSSOM, CHAIR
ATTEST:
_________________________________
KELLY WETMORE, SECRETARY
APPROVED AS TO FORM:
_________________________________
TIMOTHY J. CARMEL, GENERAL COUNSEL
Item 8.e. - Page 8
Recognized Obligation Payment Schedule (ROPS 20-21) - Summary
Filed for the July 1, 2020 through June 30, 2021 Period
Successor Agency: Arroyo Grande
County: San Luis Obispo
Current Period Requested Funding for Enforceable
Obligations (ROPS Detail)
20-21A Total
(July -
December)
20-21B Total
(January -
June)
ROPS 20-21
Total
A Enforceable Obligations Funded as Follows (B+C+D) $ 97,500 $ - $ 97,500
B Bond Proceeds - - -
C Reserve Balance 97,500 - 97,500
D Other Funds - - -
E Redevelopment Property Tax Trust Fund (RPTTF) (F+G) $ 208,636 $ 210,104 $ 418,740
F RPTTF 193,636 195,104 388,740
G Administrative RPTTF 15,000 15,000 30,000
H Current Period Enforceable Obligations (A+E) $ 306,136 $ 210,104 $ 516,240
Certification of Oversight Board Chairman:
Name Title
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. /s/
Signature Date
Item 8.e. - Page 9
Arroyo Grande
Recognized Obligation Payment Schedule (ROPS 20-21) - ROPS Detail
July 1, 2020 through June 30, 2021
A B C F G H I J K L M O P Q R S U V W
Item
# Project Name Obligation
Type Payee Description Project
Area
Total
Outstanding
Obligation
Retired
ROPS
20-21
Total
ROPS 20-21A (Jul - Dec)
20-21A
Total
ROPS 20-21B (Jan - Jun)
20-21B
Total
Fund Sources Fund Sources
Bond
Proceeds
Reserve
Balance RPTTF Admin
RPTTF
Bond
Proceeds
Reserve
Balance RPTTF Admin
RPTTF
$7,546,158 $516,240 $- $97,500 $193,636 $15,000 $306,136 $- $- $195,104 $15,000 $210,104
8 Administrative
costs
Admin Costs Various (City of Arroyo Grande, Rutan
and Tucker, Moss, Levy & Hartzheim
CPA's, Carmel and Nacassha, etc..)
Legal, operating,
audit, insurance,
and staffing costs
1 540,000 N $30,000 - - - 15,000 $15,000 - - - 15,000 $15,000
11 2018 Tax
Allocation
Bonds
Refunding
Bonds Issued
After 6/27/12
Wells Fargo Bank Bonds issued to
refund the 2007
Bonds
6,870,158 N $384,240 - 97,500 193,636 - $291,136 - - 93,104 - $93,104
12 2018 Tax
Allocation
Bonds
Fees Wells Fargo Bank Annual Trustee
Fees
36,000 N $2,000 - - - - $- - - 2,000 - $2,000
13 2018 Tax
Allocation
Bonds
Reserves Wells Fargo Bank Reserve request to
satisfy Indenture
100,000 N $100,000 - - - - $- - - 100,000 - $100,000
Item 8.e. - Page 10
Arroyo Grande
Recognized Obligation Payment Schedule (ROPS 20-21) - Report of Cash Balances
July 1, 2017 through June 30, 2018
(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.
A B C D E F G H
ROPS 17-18 Cash Balances
(07/01/17 - 06/30/18)
Fund Sources Comments
Bond Proceeds 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 07/01/17)
RPTTF amount should exclude "A" period distribution
amount.
458,101 - C-1 was the debt service reserve fund held by
the 2007 Bonds Trustee bank
2 Revenue/Income (Actual 06/30/18)
RPTTF amount should tie to the ROPS 17-18 total
distribution from the County Auditor-Controller
764,041
3 Expenditures for ROPS 17-18 Enforceable Obligations
(Actual 06/30/18)
458,101 764,041 Old bond reserve fund was used as a deposit
to the 2007 Bonds Escrow Fund of 2018
Refunding Bonds
4 Retention of Available Cash Balance (Actual 06/30/18)
RPTTF amount retained should only include the amounts
distributed as reserve for future period(s)
5 ROPS 17-18 RPTTF Prior Period Adjustment
RPTTF amount should tie to the Agency's ROPS 17-18 PPA
form submitted to the CAC
No entry required
6 Ending Actual Available Cash Balance (06/30/18)
C to F = (1 + 2 - 3 - 4), G = (1 + 2 - 3 - 4 - 5)
$- $- $- $- $-
Item 8.e. - Page 11
Arroyo Grande
Recognized Obligation Payment Schedule (ROPS 20-21) - Notes
July 1, 2020 through June 30, 2021
Item # Notes/Comments
13
Reserve request for 1/2 of bond principal payment due 9/2/2021, pursuant to Section 5.01(h) of the
Trust Indenture for the 2018 Bonds.
Item 8.e. - Page 12